Economy

Boeing, Bombardier dispute could hit United Kingdom jobs

Boeing, Bombardier dispute could hit United Kingdom jobs”

The Commerce Department slapped duties of almost 220 percent on Canada's Bombardier C Series aircraft Tuesday in a victory for Boeing that is likely to raise tensions between the United States and its allies Canada and Britain. But that dispute is playing out in the World Trade Organization, where the process leading to tariffs is far more circuitous.

Boeing's behaviour in a U.S. trade dispute with Bombardier, which threatens thousands of jobs in Belfast, could jeopardise its trading relationship with the government, Defence Secretary Sir Michael Fallon has warned.

"Boeing wants and we want a long-term partnership but that has to be two-way".

The Canadian company has called the ruling "absurd" and promised to fight it. Boeing has said it only wants "a level playing field" in the US market for single-aisle planes.

"If they're looking for a trade war, we ought not to continue to back down", he said.

Prime Minister May also expressed concerns saying she was "bitterly disappointed" with the development, adding the United Kingdom would work with Bombardier to protect "vital" jobs.

"Boeing's petition is threatening these U.S.jobs", Freeland said.

But unions accused the prime minister of failing to protect workers.

Bombardier Inc.is expected to double down on its efforts to snag a CSeries order from China after the USA announced hefty duties that threaten to shut it out of the large American market. "It's high time she woke up".

"It's very, very optimistic, it's very hard but there are reasons to do it", he said.

"What we could be witnessing is the fundamental difference between being a fully-fledged member of an internal market and a junior partner in a free trade agreement", it said.

At the Bombardier plant in Belfast, workers were nervous about what impact the dispute could have on their livelihoods.

The simple truth, it added, was that Bombardier had created a superior aircraft that is more efficient, more comfortable, and quieter. "I am concerned. I was shocked at the size of the tariff". It asked the Commerce Department and U.S. International Trade Commission to investigate. A final decision is expected early in 2018.

The Commerce Department has announced that it is hitting Canadian aircraft-maker Bombardier with a hefty 220 percent tariff for its top-end passenger planes.

The UK government has warned its relationship with U.S. rival Boeing "could be jeopardised", after the firm's complaint against Bombardier resulted in a massive 220pc tariff on its Belfast-made C Series planes being sold to the US.

The first Bombardier jets are due to be delivered to Delta next spring.

Arlene Foster, leader of the DUP, the Northern Irish party that is propping up May's minority government, signaled she would put pressure on May to act. Bombardier is based in Montreal, but its wings are built in Northern Ireland.

However, London's options in fighting Bombardier's corner may be limited because of the importance of Boeing to its defense industry.

Britain's armed forces have deployed Chinook helicopters, the C-17 transport plane and the E-3 Sentry airborne early warning and command post.

So the USA imposition of a 220 per cent countervailing duty on a major Canadian manufacturer, following an investigation into state subsidies sparked by a Boeing complaint, drew strong criticism. He told reporters: "I'm not saying it doesn't have an effect on relationships - it does - but not on this negotiation".

Boeing's complaint against Bombardier drew a backlash even before Tuesday's decision.



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