Canada first: USA trade panel unexpectedly rejects Boeing trade complaint

Canada first: USA trade panel unexpectedly rejects Boeing trade complaint

Boeing is a major source of lobbying funds in the nation's capital and a major beneficiary of government subsidies. It had therefore proposed a near 300% tariff be imposed on all CSeries aircraft being sold to United States clientele.

Remarkably, the unanimous vote showed that despite Bombardier's reluctance to answer questions to the Department of Commerce, Boeing was unable to provide evidence that the CS100 was, in fact, damaging the weak sales of the Boeing 737-700.

Bombardier Inc. can start shipping C Series jets to Delta Air Lines Inc. as scheduled after a surprise ruling by a USA trade tribunal that said the proposed imports won't hurt American industry.

The independent, bipartisan trade organization voted unanimously against duties imposed by the U.S. Commerce Department in October.

Friday's outcome is a stunning reversal. "The plane's going to be assembled in Alabama for the US market, therefore it's creating American jobs", he said. Its wings are built in Belfast, Northern Ireland.

Some of Delta's US peers could be tempted to take a look at the C Series now that the prospect of duties no longer exists.

Boeing later revealed in December that it is pursuing a joint venture with Brazilian aerospace firm Embraer, a close competitor with Bombardier in the market for smaller commercial jets.

NAFTA's Chapter 19 dispute resolution mechanism means Canada can get a panel made up of American and Canadian trade experts to decide if the duties follow US trade law, rather than going through the USA court system.

"The ITC has done a thorough and good job of recognizing the interconnected nature of aerospace manufacturing today", she wrote.

He told the commission that "Boeing simply was not in the mix".

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But, in a surprise ruling, the ITC rejected a complaint brought by Boeing, voting 4-0 in favour of Bombardier.

The four current commissioners were appointed by presidents Barack Obama and George W. Bush.

"The decision by the International Trade Commission confirms what the United Kingdom and Canadian Governments working hand in hand has [sic] maintained from the outset, that this case is unjustified", said U.K. Business Secretary Greg Clark in a statement.

The Trump administration has threatened to impose duties of 292%.

Prior to the Commerce Department's decision in the fall, Delta had planned to begin taking CS 100 deliveries in April.

"The fact is that when you produce an aircraft in the USA, it's not subject to any US import tariff rules", Bombardier President Alain Bellemare said in an October news conference.

Boeing executives said they challenged Bombardier in an effort to maintain a level playing field in the global jetliner industry, which has been beset for years by allegations of unfair government subsidies. "In the end, fair and open competition prevails".

Standing on that principle now looks costly.

The agency made its decision a day after the Montreal-based company argued that a published report of the plane's range being 2,900 nautical miles (5,370 kilometres) qualifies it to be considered as a competitor in the 100- to 150-seat segment of the market.

Before the decision, Bombardier said it plans to go through with a partnership with Airbus to build CSeries at an assembly line in Mobile, Alabama, regardless of the commission decision.

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