New Threat To 4000 Bombardier Jobs
- Author: Ryan Wade Oct 08, 2017,
Oct 08, 2017, 0:45
The US Commerce Department has added to Canadian plane maker Bombardier's problems with the announcement of a further import duty on its CSeries aircraft.
It's the second round of import duties in as many weeks for Bombardier.
Boeing applauded the decision in a statement, calling Bombardier's CSeries pricing "an illegal effort to grab market share in the US single-aisle airplane market".
"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", he added.
Bombardier Inc's aerospace business spent $2.4 billion in the United States previous year, tapping more than 800 suppliers in all but three USA states, according to a confidential Bombardier report seen by Reuters on Thursday.
Responding to a complaint from Boeing, the Commerce department found that Bombardier's prices on the CSeries in a sale to Delta Air Lines amounted to dumping or selling goods below cost.
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It comes after a second preliminary levy of 80% has been loaded on the sales of the aircraft manufacturer by the United States government.
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 US government's preliminary decision affects imports of 100-150 aircraft from Canada. If accepted, the duties would then have to be confirmed by the US International Trade Commission and, if not upheld, the cash deposits to that date collected would be reimbursed.
As for the preliminary decision, published last week, Friday, is a response to the complaint filed by Boeing in the month of April on the sale of CSeries aircraft to Delta previous year.
The move follows last week's move to impose almost 220 per cent preliminary countervailing tariffs on Bombardier.
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Unions have warned that the move could put jobs in jeopardy.
Last month, the US government approved the sale of 18 Boeing Super Hornet jets to the Canadian military, at a cost of 6.4 billion Canadian dollars (about 5.1 billion USA dollars), to replace Canada's aging fleet of CF-18 Hornets from McDonnell Douglas, which merged with Boeing in 1997.
The combined 300% duty would effectively keep the plane out of the market.
A final ruling in the case is due until early next year.
Bombardier called the decision "an egregious overreach and misapplication of the USA trade law".
The C-Series operation's immediate future was thought to have been secured after Bombardier signed a $5.6bn deal in 2016 to provide the aircraft.
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The firm also took umbrage with Bombardier receiving $1bn (£765m) from the Canadian provincial government in Quebec in 2015, when its fortunes appeared to be flagging.