Canada first: U.S. trade panel unexpectedly rejects Boeing trade complaint

Canada first: U.S. trade panel unexpectedly rejects Boeing trade complaint

Canada first: U.S. trade panel unexpectedly rejects Boeing trade complaint

But on Friday, four commissioners of the U.S. International Trade Commission unanimously voted that Boeing had not been harmed.

The decision by the U.S. International Trade Commission to overturn duties of almost 300 per cent on imports of Bombardier C Series planes was greeted with surprise and joy in Montreal.

The vote effectively shelves two tariffs, totaling almost 300%, that the U.S. Commerce Department wanted to impose on Bombardier.

Bombardier issued a statement calling the decision "a victory for innovation, competition, and the rule of law".

Boeing says those funds allowed Bombardier to sell its new C Series airliner to Delta Air Lines at "absurdly low prices" in violation of USA trade rules.

The USITC is expected to decide Friday afternoon if Boeing suffered harm from the C Series and whether import duties totalling 292.21 per cent sanctioned by the Department of Commerce will be applied.

This week's tariffs on solar panels and washing machines also had immediate economic and diplomatic implications, with at least one importer promising to raise prices and the South Korean government filing a complaint at the World Trade Organization.

Despite this, the overwhelming expectation was for a pro-Boeing decision by the USITC, which has very rarely voted against USA industry, according to Goldman.

"Nothing is sweeter than a surprise, a surprise victory", Airbus Chief Executive Tom Enders said, promising to push ahead "full throttle" with the Alabama plans.


The government filing also said it would be inappropriate for the commission to make any decision about parts imported from Canada because the Department of Commerce, which controls the scope of the investigation, didn't reach a conclusion on parts.

The US International Trade Commission voted 4-0 that there was no injury to US manufacturers, which effectively forces President Donald Trump's Commerce Department to reverse course on the retaliatory countermeasures created to protect Boeing.

Canada's largest union responded to the ruling by calling on Bombardier to abandon its plans to build a second assembly line in the southern United States. Bombardier has countered that Boeing benefits from its own subsidies in the US, which include federal contracts and tax breaks from state governments.

Boeing said the 737 Max 7, which is now the company's smallest passenger jet, is roughly comparable starting with 138 seats.

Bombardier shares spiked 19 per cent on the news to $3.67.

Bombardier spokesman Mike Nadolski said Tuesday that Boeing has been disingenuous by demanding the USA government ignore Embraer's role in the market while trying to buy the Brazilian aerospace manufacturer.

The dispute took a twist in mid-October when Bombardier agreed to sell the C Series plane to Airbus, a deep-pocketed European aerospace giant that is Boeing's closest competitor. Its development and production represent thousands of jobs in the United States, Canada, and the United Kingdom.... What's not certain is whether this is good news, or bad news, for the Port City.

Sinn Fein's northern leader Michelle O'Neill said she hoped the decision meant that the matter was now closed.

"This is not the behavior we expect from Boeing and it could indeed jeopardize our future relationship with them", British Defense Secretary Michael Fallon said past year.

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