Relief for 1000 workers in Belfast as U.S. jet tariff overturned

Dianna Christensen
January 28, 2018

A surprise ruling by America's top worldwide trade arbiter in a dispute over Bombardier jets potentially has saved thousands of jobs in Northern Ireland.

Airbus took a majority stake in Bombardier's C-series passenger jet programme in October a year ago, which was hoped would help the jet programme overcome the tariff ruling.

Boeing had claimed Bombardier was able to sell the aircraft at "absurdly low prices" in the USA after receiving $3 billion in government subsidies.

This article is being republished as part of our daily reproduction of articles that also appeared in the US print edition of The Wall Street Journal (January 27, 2018). Chairman Rhonda Schmidtlein, David Johanson, Irving Williamson and Meredith Broadbent each voted against Boeing.

The court added that in light of its ruling, "no antidumping or countervailing duty orders will be issued".

The company called the ruling "a victory for innovation, competition, and the rule of law". The C Series is a world beating aircraft made by world class workers. With this matter behind us, we are moving full speed ahead with finalising our partnership with Airbus.

Boeing vowed to continue to document the damage from "illegal subsidies and dumped pricing".

The U.S. International Trade Commission (ITC) rejected American planemaker Boeing's (NYSE:BA) request to impose heavy tariffs against Canadian rival Bombardier over claims the latter was dumping jets into the U.S. market. "Those violations have harmed the USA aerospace industry, and we are feeling the effects of those unfair business practices in the market every day", Boeing added.

At the time of its order Delta CEO Ed Bastian noted: "These new aircraft are a solid investment, allowing us to take advantage of superior operating economics, network flexibility and best-in-class fuel performance".

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The carrier said it was looking forward to adding the plane to its fleet.

It alone is responsible for the design, manufacture and assembly of the advanced composite wings for every CSeries aircraft.

"But we must not be complacent - the Trump administration has shown it wants to shut down Britain's ability to support good jobs in strategic industries".

Delta announced plans past year to buy 75 of the planes with 109 seats each. But the new, larger aircraft can seat 110-130, nudging into the narrow-body jet market that includes Boeing's smaller 737s.

Canadian and United Kingdom officials also warned Boeing that it could lose defense contracts in the countries over the complaint.

The CSeries is an all-new, small single-aisle jet family with a five-abreast passenger cabin that's offered in two models: the CS100, seating 100 to 135 passengers, and the larger CS300, seating up to 160 passengers.

And the severe pressure on Bombardier helped seal its decision to sell a majority stake in the CSeries to Boeing's archrival, Airbus. It is also a victory for U.S. airlines and the United States traveling public.

Unite had led a campaign against the proposed trade tariffs, and he said the union's members and shop stewards would be delighted with the result. While Marcil said he didn't know whether that swayed the USITC, as the final decision has not yet been released, he said the Airbus deal was still the right thing to do.

"There is no returning to the status quo ante". However, it noted that Boeing went to great lengths to have Embraer SA's E190-E2 jets excluded from consideration in the petition while keeping its negotiations to acquire the Brazilian manufacturer secret.

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