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Commerce sets final duties on Bombardier totaling nearly 300 percent

Commerce sets final duties on Bombardier totaling nearly 300 percent

If the ITC sides with Boeing, as it has so far, it could effectively keep US airlines from using Bombardier's CSeries jet by imposing duties of almost 300 percent, one of the largest ever imposed for a market-based economy, Boeing said.

United States secretary of commerce Wilbur Ross has found in favour of United States-based manufacturer Boeing in a dispute over aircraft sales. "The C Series would not even exist at this point but for those subsidies", Boeing said in a statement emailed during Bombardier's panel remarks.

In October, shortly after the preliminary tariffs were announced, Boeing archrival Airbus took a majority stake in the C-Series program, announcing that the planes would be built at the Airbus plant in Mobile, Alabama.

Boeing called for action from USA authorities saying the C-Series competes with its small 737 jet, a point refuted by Bombardier. Bombardier and Boeing argued their cases Monday before the ITC, an independent, quasi-judicial USA agency.

Boeing stated the decision validated its complaints about Bombardier's aircraft pricing in the United States, "pricing that has harmed our workforce and USA industry".

The US government chose to affix high anti-subsidy tariffs on the Bombardier's CSeries jets, after Boeing Co complained that the Canadian company had received unfair subsidy from their government which, it argued, allowed Bombardier to sell their new aeroplane below cost. Speaking after the verdict, Bombardier said, "Unfortunately, the Commerce Department decision is divorced from...reality and ignored long-standing business practices in the aerospace industry, including launch pricing and the financing of multibillion dollar aircraft programs". The trade dispute stems from a complaint by USA aerospace giant Boeing against its Canadian rival that found a receptive ear in President Donald Trump, whose "America First" agenda has included taking a tough line in matters of worldwide commerce.

There is more information on the USA department of commerce decision here.

The partnership with Airbus means there is "no chance Boeing will be harmed by imports", said Mike Nadolski, vice president of public affairs at Bombardier.

"A single large order, like Bombardier's sale to Delta, takes years of demand out of the market".

The U.S. planemaker said Bombardier failed to cooperate in a U.S. investigation providing pricing information to the United States.

Bombardier was able to underprice the jets due to $3 billion in unfair government subsidies, Boeing says.

Bombardier says more than half of the value of CSeries content comes from the United States, including engines by Pratt & Whitney.

Bombardier also argues that Boeing and Airbus do not compete with the CSeries because their planes are larger and have more range.

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