'This hypocrisy is appalling' Bombardier slammed with additional 80% duty

Trudeau Trump Washington

Trudeau Trump Washington

The announcement follows a preliminary determination in a separate countervailing duty investigation into Bombardier aircraft, in which the Department of Commerce concluded that exporters had received countervailable subsidies of 219.63 percent. "Boeing's complaint and the Commerce Department's response constitute an abuse of process that will penalize not only Bombardier but also American workers and travellers and the American airline companies that will be forced to accept higher prices or inferior products".

The duties are expected to heighten trade tensions between the United States, Canada and Britain, where CSeries wings are made.

U.S. Commerce Secretary Wilbur Ross said the decision affirmed Trump's "America First" policy.

With the fourth round of talks on revising the North American Free Trade Agreement (NAFTA) set to begin next week in the United States, a cross-border dispute between American aerospace giant Boeing and its Canadian rival Bombardier further intensified.

Canada and Britain threatened to avoid buying Boeing military equipment in retaliation, saying the duties on the CSeries would reduce USA sales and put thousands of Bombardier jobs in their countries at risk.

Freeland argued that Boeing is "manipulating the U.S. trade remedy system to prevent Bombardier's new aircraft, the C Series, from entering the USA market, despite Boeing's admission that it does not compete with the C Series".

Canadian Foreign Affairs Minister Chrystia Freeland said she was "extremely disappointed" in the latest U.S. decision, vowing to defend the country's aerospace industry against "irresponsible and protectionist trade measures" that also hurt some USA workers.

Reacting to the latest US Department of Commerce proposal, Bombardier said in a statement: "We strongly disagree with the Commerce Department's preliminary decision".

Boeing, the world's largest plane maker, hailed the decision and hinted at an alternative for Bombardier.

Canadian Foreign Affairs Minister Chrystia Freeland was also sharp in her criticism of the new duty against Montreal-based Bombardier. To achieve that, Boeing will have to prove to ITC it was harmed by Bombardier's sales. But Delta has said Boeing did not even make the 100-seat jets it needed.

But the industry is not so simple.

Image: A Bombardier C-Series aircraft. The plane supports an estimated 22,700 jobs and Bombardier's aerospace division spent $2.14 billion in the United States past year, according to the company and documents seen by Reuters.

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