Economy

A timeline of the commercial dispute between Boeing and Bombardier

Just over a week after the U.S. Commerce Department imposed punishing tariffs on Bombardier because its CSeries aircraft received government subsidies, in a separate ruling announced Friday it piled on some more tariffs.

The decision underscored the defensive trade policy of U.S. President Donald Trump, and could effectively halt sales of Bombardier's innovative new plane to U.S. airlines by quadrupling the cost of the jets imported to the United States.

Bombardier will likely learn today about anti-dumping duties over its CSeries commercial jet. This departure from past precedent and disregard of well-known industry practices is an apparent attempt to deprive USA airlines from enjoying the benefits of the C Series, even though Boeing abandoned the segment of the market served by the C Series more than a decade ago.

The shares plunged last week the day after Commerce slapped preliminary duties on the jets, with the agency having concluded that Bombardier received unfair subsidies from the Canadian and Quebec governments.

We remain confident that, at the end of the processes, the U.S. International Trade Commission will reach the right conclusion, which is that the C Series benefits the U.S. aerospace industry and Boeing suffered no injury.

It claimed its rival was selling the C-Series jets below cost price after taking state subsidies from the Canadian and British governments.

- September 5: British Prime Minister Theresa May, in a telephone conversation with U.S. President Donald Trump, pleads in favour of the Quebec manufacturer, which has more than 4,000 employees in Belfast, Northern Ireland.

ITC gives the go-ahead for Washington to continue its investigation into CSeries sales south of the border.

- September 20: Bombardier workers in Toronto walk off the job to attend a rally to support company's battle against Boeing.

One of those competitions, Boeing won. Ottawa replies by questioning a military order from Boeing for new Super Hornet jet fighters.

Dumping means the export of a product at a lower price.

Delta was seeking a smaller airplane in the 100- to 110-seat category, a size of jet that Boeing no longer makes.

Yet even with no contender of its own in this lost sales race, Boeing nevertheless complained of the outcome.

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

It noted that Delta has an option in its contract to convert some of that order to the larger CS300 model, which if it were to happen would represent a lost sale for Boeing.

US aerospace experts outside Boeing have argued that a trade challenge like this in a unilateral USA court is a strategic mistake that will one day rebound on Boeing if other countries such as China, Russia or Brazil decide they can do the same.

Boeing has said the dispute was about "maintaining a level playing field" and was not an attack on Canada or Britain.



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