US slaps more duties on Bombardier

One of Northern Ireland's largest employers is facing a proposed 300% duty on its exports of planes to the U.S. amid an global trade dispute, the USA government said last night.

The US will begin collecting preliminary duties to offset the difference between the sales price and fair value, the Commerce Department said in its latest decision.

Bombardier called Washington's latest decision "an egregious overreach and misapplication" of US trade laws to prevent its C Series aircraft from entering the USA market, and accused Boeing of also selling planes below production cost "for years".

The new duty follows a preliminary finding that Bombardier sold 75 CSeries jets below cost to Delta Air Lines Inc (DAL.N) in 2016.

The report said more than half of the materials Bombardier buys for the new CSeries plane come from USA suppliers, with the most spending in California, Connecticut, Illinois, Iowa and Kansas, the report said.

The US trade commission is due to rule on the Department of Commerce's 220% tax proposal next year, but ISME said the European Union should not wait for the final decision.

It added: "The antidumping duty law provides U.S. businesses and workers with a transparent, quasi-judicial, and internationally accepted mechanism to seek relief from the market-distorting effects caused by injurious dumping of imports into the United States". The duty comes on top of a 219.63 percent duty announced last week for "countervailable subsidies" in financing the CSeries aircraft.

Bombardier has a large aerospace plant in Northern Ireland.

The US Department of Commerce has again ruled against aerospace firm Bombardier in its dispute with rival Boeing.

Bombardier can appeal the decision to a U.S. court or to a dispute-resolution panel created under the North American Free Trade Agreement (NAFTA).

The U.S. government sided with Boeing.

Delta, which reports earnings next week, has said it is confident the proposed tariffs will be rejected because no US companies produce aircraft the same size as the Bombardier jet.

In retaliation, Canada and Britain threatened to avoid buying Boeing military equipment , saying the duties on the C Series would reduce United States sales.

He added: "Ministers have a duty to defend jobs and future manufacturing in Northern Ireland and the rest of the United Kingdom by demanding Boeing attends an urgent summit involving Prime Minister Theresa May and the Canadian prime minister Justin Trudeau alongside the unions representing our workforce and withdraws its unwarranted claims".

"We will continue to verify the accuracy of this decision, all the while doing our best to defend the american companies and their workers", said Mr. Ross in a press release.

In a separate case, the World Trade Organization last week approved Brazil's request to investigate Canada's alleged use of more than $3 billion in government subsidies to produce Bombardier aircraft.

Bombardier shares were last down 0.5 per cent to $2.18.

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