U.S. escalates trade dispute with United Kingdom and Canada over Bombardier


Bombardier is now facing a proposed 300% duty on its exports of planes to the US.

"These anti-dumping duties on Bombardier's CSeries aircraft unfairly target Canada's highly innovative aerospace sector and its more than 200,000 workers - and put at risk the nearly 23,000 U.S.jobs that depend on Bombardier and its suppliers", Freeland also said.

The spiralling cost, which could more than triple the price of the jets sold in the USA could also threaten the order for over 75 aircraft from Delta Airlines.

Bombardier said it was "confident that the investments and contribution programs mentioned in Brazil's petition are in full compliance with all WTO and global trade rules". The chair of the International Trade Committee this week wrote to the secretary of state for greater clarity on the Bombardier situation, asking whether the decision suggests the USA "is taking a more protectionist stance to international trade".

The hit is on top of an earlier tariff of almost 220 per cent, relating to subsidies Bombardier received from Canada and the UK.

Delta, which reports earnings next week, has said it is confident the proposed tariffs will be rejected because no USA companies produce aircraft the same size as the Bombardier jet.

Bombardier asserts that Boeing has not suffered any prejudice because it has no aircraft to offer in the range of 100 to 150 seats occupied by the CSeries.

UK Trade Secretary Liam Fox and Irish Foreign Minister Simon Coveney have discussed the matter with US Commerce Secretary Wilbur Ross this week. "We will continue to verify the accuracy of this decision, while doing everything in our power to stand up for American companies and their workers".

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A Bombardier union said it wasn't surprised by the new duty given the 48 per cent increase in the number of dumping allegations since the Trump administration took office.

He said workers will fight even harder to get the duty reversed.

The United States department of commerce has again ruled in favour of US-based airline manufacturer Boeing in a dispute with rival Bombardier.

Earlier this week, the International Trade Commission bolstered that policy by finding US washing machine makers have been harmed by rising imports from South Korea.

The penalties were imposed after officials decided Bombardier got illegal help from the United Kingdom and Canadian governments. The program is expected to generate more than US$30 billion in business over its life and support more than 22,700 American jobs in 19 states.

Canada has threatened to cancel the planned purchase of 18 Super Hornets to temporarily augment Canada's aging fleet of CF-18s.

Prime Minister Theresa May has lobbied President Donald Trump over the row, with Defence Secretary Sir Michael Fallon warning Boeing its actions could jeopardise future UK Government contracts.