US rules against Bombardier

US rules against Bombardier

The US Department of Commerce has ruled against Bombardier for selling C Series Jets to US operators below standard sale value.

This ruling stems from an antidumping and countervailing duty investigation into Bombardier that was launched in May. The commerce department opened the investigation following the sale of 75 C-Series jets to Delta Air Lines for approximately $20 million, far below the list price of $33 million. It said the price was 79.82 percent less than fair value.

“This decision is based on a full and unbiased review of the facts in an open and transparent process.” said US secretary of commerce Wilbur Ross. “The United States is committed to a free, fair, and reciprocal trade and will always stand up for American workers and companies being harmed by unfair imports.”

The ruling will likely see an almost 300% tariff on aircraft made by the Canadian manufacturer. The US International Trade Commission is expected to make a final decision on implementation of the tariffs on 1 February 2018 – if it rules in favour of Boeing, the tariff will be enforced.

Bombardier’s Mike Nadolski, vice president communications and public affairs, said the ruling was “divorced from reality and ignores long-standing business practices in the aerospace industry”.

“Job Crushing” tariffs

UK and Ireland’s biggest workers’ union, Unite, has responded to the ruling, asking the US International Trade Commission to drop the “job crushing” tariffs.

According to the union, the tariffs could threaten job at Bombardier’s Northern Ireland factory – approximately a quarter of the C Series workforce are based in Northern Ireland. The tariffs could also threaten as many as 22,000 jobs in the US, the union claims.

“We would urge the US International Trade Commission to do the right thing for fair trade and jobs by finding against Boeing and setting aside the commerce department’s determination when it makes its final decision in the New Year,” a Unite spokesperson said.

Alex Baldwin
By Alex Baldwin January 2, 2018 14:07