US Imposes 220 Pct Duty on Bombardier Aircraft

US Imposes 220 Pct Duty on Bombardier Aircraft

US Imposes 220 Pct Duty on Bombardier Aircraft

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Aerospace firm Bombardier has described the US Department of Commerce's preliminary ruling against it in its row with Boeing as "absurd".

"We will always defend Canadian companies and Canadian workers against unfair and costly protectionism".

Boeing has accused Bombardier of selling its biggest jet in the U.S.at less than fair value, while benefiting from unfair government subsidies in Canada.

Both Downing Street and several trade unions feared that the decision could lead to the cessation of Bombardier's Northern Ireland operations, where it employs 4,100 people across four locations.

The department has proposed a huge 220% tariff on the imported sale of Bombardier's new C-Series jets into the United States - an aircraft whose wings are made in Belfast.

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Bombardier, based in Montreal, said it strongly disagreed with the trade ruling in favor of Boeing, based in Chicago. U.K. Prime Minister Theresa May said she was "bitterly disappointed" with the duties, which threaten jobs at a Bombardier plant in Northern Ireland.

"This is not the behaviour we expect of Boeing and could indeed jeopardise our future relationship with Boeing", he said. Boeing wants, and we want, a long-term partnership, but that has to be two-way.

The US International Trade Commission will consider the case ahead of a final ruling in February. "The UK government must now work with the Canadian and U.S. governments to take all appropriate steps in the coming weeks and months to find an amicable resolution to this dispute, which is not in the interests of the global aerospace sector".

The Democratic Unionist Party (DUP), which the Tories rely on to swing key Commons votes for the Government, has repeatedly pressed the Prime Minister over the issue.

"With jobs and future prosperity in the region being put at risk by decisions made far away from Belfast, we need a devolved government that can speak up for and champion the needs of the local workers and businesses most affected".

Couillard disagreed, saying the US$1 billion invested by the province in the CSeries program was not a subsidy and that no other investment in Bombardier was now planned.

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"Boeing stand to gain a lot of British defense spending". May also criticized the Boeing case, arguing that it would cost jobs in Northern Ireland, where the wings for Bombardier's CSeries jet are built.

Bombardier and Northern Ireland's largest labor union Unite expressed their disappointment over the decision.

Northern Irish Democratic Unionist Party (DUP) leader Arlene Foster, on whom May relies for her parliamentary majority in Westminster, also said that the USA move to impose steep tariffs was "very disappointing".

Bombardier said in a statement that the ruling against it was "divorced from the reality about the financing of multibillion dollar aircraft programmes".

"This result underscores what we have been saying for months: the United States trade laws were never meant to be used in this manner, and Boeing is seeking to use a skewed process to stifle competition", it added.

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An global trade dispute with major implications for jobs in Northern Ireland is unjustified and unwarranted, the British Government said.

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