Bombardier over Boeing at ITC
Airbus and Bombardier partner
Boeing and Embraer dance
The International Trade Commissioners decided 4-0 against the Boeing Company in its Anti-dumping and Countervailing Complaint against Bombardier Inc. The hearing before the Commission was attended by
Ambassador from Canada
Ambassador from the United Kingdom,
the Minister Counselor and Head of Trade Section of the EU
a delegation from Delta Air Lines, Inc.
This was not your ordinary trade commission case!!!
The Canadian Prime Minister threatened Boeing with refusal of buying its jets Boeing F/A-18 Super Hornets. There were quotes insinuating that the Commerce Department and the ITC were “Homers” likely to find for the US private company and against the Canadian Company. Boeing asserted and Commerce found that the price of the CS 100 and CS 300 was lowered by major subsidies from its country. Prime Minister May called President Trump asking him to reverse this 300% Tariff.
The ITC decision avoided the subsidy issue by finding that the U.S. industry is not materially injured or threatened with material injury by reason of imports of 100- to 150-seat large civil aircraft from Canada. The reason was that the U.S. plane maker’s smallest aircraft – the 737 MAX 7 – does not compete against the Canadian 100 – to 150 seat C Series. “The higher standard seating capacity of the 737-700 and 737 MAX 7 limits competition between those models and the CS100 for some purchasers,” is noted in the ruling
The ITC’s reliance on the aircrafts’ different capacity avoided its finding that the Canadian government in the project constituted an illegal subsidy.
The CNBC headline is correct in that Delta will be able to but its order of the Bombardier aircraft at the lower price. Further, the threat of the Boeing action precipitated Airbus’ taking a majority stake in Bombardier’s controversial C-Series jet program.
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