Canada: Bombardier-Boeing aerospace war heats up
The premier of Quebec province urged Canada on Wednesday to take a tough stance against Boeing after the U.S. slapped a 219 percent tariff on airplanes sold to Delta Air Lines by Montreal-based Bombardier, APA reports quoting Anadolu Agency.
“Not a bolt, not a part, not a plane from Boeing [should enter] Canada until this conflict is resolved in a satisfactory way,” Philippe Couillard said at a news conference.
The U.S. Commerce Department levy can be appealed but it represents a major victory for the American aerospace manufacturer that complained Quebec had unfairly subsidized production of Bombardier’s CSeries jets. As much as 125 are to be sold to Delta for US$6 billion.
The decision can be appealed to the U.S. international trade court or under the dispute mechanism allowed in the North American Free Trade Agreement (NAFTA) that is currently under renegotiation by the signatories – Canada, the United States and Mexico.
Some observers fear the aerospace trade war could interfere with the NAFTA talks.
“This is very disappointing for Canada,” Perrin Beatty, president and CEO of the Canadian Chamber of Commerce, told Canadian media. “Inevitably, any of these side issues runs the risk of contaminating the negotiations. That’s not good.”
Boeing argued Bombardier was subsidized by a US$1 billion investment in Bombardier’s CSeries jet manufacturing. Couillard countered it was an investment, not a subsidy, and added that Boeing has benefited from decades of U.S. government assistance.
As well, Boeing did not have any suitable jets with which to bid at the time the Delta deal was awarded to Bombardier in 2016.
More rulings on Boeing’s subsidy charges against Bombardier in other deals are expected next week and in the spring.
If the CSeries deal is dead, it could hurt the U.S. economy as well as Bombardier – more than half of the jet proponents are made by U.S.-based companies and the manufacturing of the parts supports 22,000 jobs in 17 states.
Couillard vowed to fight the ruling until a decision is reached in Canada’s favor.
Related news releases
- 20.03.2018Bolivia takes Chile to world court over maritime access
- 20.03.2018Trump sends Nowruz greetings and attacks Iranian government
- 20.03.2018Trump still wants summit of Gulf states
- 20.03.2018Russia blocks U.N. Security Council meeting on human rights in Syria
- 20.03.2018Uber halts self-driving cars after pedestrian fatality
- 19.03.2018U.S. blocks use of Venezuela's digital currency - White House
- 19.03.2018Engine failure forces Ivanka, Jared's helicopter to return to airport
- 18.03.20181 person dead in shooting at Southern California mall, authorities say
- 18.03.2018Florida officials knew about bridge crack
- 17.03.2018Trump, South Korea's Moon discuss engagement with North
- 16.03.2018US: At least 6 dead in Florida bridge collapse
- 16.03.2018At least four dead in pedestrian bridge collapse at university in Miami - UPDATED
- 16.03.2018Nike brand president resigns; company probes workplace complaints
- 16.03.2018Colombia resumes peace talks with ELN rebels
- 16.03.2018Facebook Lite to launch in developed countries, including US
- 16.03.2018Broadcom tops revenue, profit on demand from smartphone makers
- 16.03.2018Several reported dead after pedestrian bridge collapses in Miami
- 15.03.2018Mueller subpoenas Trump organization, demands Russia-related docs
- 15.03.2018Explosion hits chemical plant in Texas, building ablaze - UPDATED
- 15.03.2018Former Trump campaign manager Manafort files to dismiss charges
- 15.03.2018U.S. Ambassador Haley tells U.N. Russia responsible for chemical attack
- 15.03.2018Trump taps commentator Kudlow for top economic adviser
- 15.03.2018US students rally nationwide against gun violence
- 15.03.2018Russian UN Envoy: 'Unacceptable' for UK to accuse Moscow of nerve agent attack
- 15.03.2018At least six die in Bolivia prison uprising
- 14.03.2018Three arrested, charged in US mosque bombing
- 13.03.2018White House fires top Tillerson aide after comments on Boss' firing
- 13.03.2018US defense secretary backs Afghan overtures to Taliban
- 13.03.2018Trump: Tillerson and I "disagreed on things" like the Iran deal
- 13.03.2018Trump sacks Rex Tillerson as state secretary
- 13.03.2018White House expects North Korea summit to happen despite Pyongyang's silence
- 13.03.2018US: House Republicans find no Trump-Russia collusion
- 13.03.2018U.S. may lift travel ban on 'important partner' Chad, Tillerson says
- 13.03.2018U.N. blames Honduras security forces for killing electoral protesters
- 12.03.2018U.S. warns if Security Council doesn't act on Syria, it will
- 12.03.2018Tillerson says several steps needed for U.S. talks with North Korea
- 11.03.2018Trump says North Korea talks could fail or bring 'greatest deal'
- 10.03.2018US Secretary of State Tillerson Ill, Cancels Africa Tour Events
- 10.03.2018Trump to rally for endangered Republican in Pennsylvania
- 10.03.20183 hostages and gunman dead at California veterans' home
- 28.09.2017U.S. student held in North Korea died of oxygen starved brain: Ohio coroner
- 28.09.2017Trump says foreign country planning to build five U.S. auto industry factories
- 28.09.2017US to send more nuke-capable submarines, bombers to Korean peninsula
- 27.09.2017UNHCR alarmed at violence against Rohingyas in Sri Lanka
- 27.09.201714 people shot dead at Mexican drug rehab center
- 27.09.2017US-Mexico border wall prototype construction starts