Theresa May threatens USA with trade war over Bombardier row

Theresa May threatens USA with trade war over Bombardier row

The Commerce Department's penalty against Bombardier will only take effect if the U.S. International Trade Commission (ITC) rules in Boeing's favor in a final decision expected in 2018.

The U.S. Commerce Department on Tuesday slapped preliminary anti-subsidy duties on Bombardier's CSeries jets after Boeing accused Canada of unfairly subsidizing the aircraft. As Laura Frykberg reports, the move is likely to strain trade relations between the neighbours and cause problems in Britain where Bombardier's Northern Ireland factory employs thousands.

Boeing, meanwhile, said it felt it's action was necessary to highlight the unfair advantage Bombardier had.

Canada is in the midst of negotiations to buy 18 Boeing-made F/A-18 Super Hornet fighter jets for an estimated $5.15 billion.

The ruling followed claims from Boeing about unfair subsidies paid to the Canadian aircraft-maker by the United Kingdom and Canada.

FILE- In this February 17, 2016, file photo, a Bombardier CSeries jet sits in a Montreal hanger.

Meanwhile, UK Secretary of Defense, Sir Michael Fallon, was reported by the BBC to have said that "Boeing stands to gain from British defense spending" however "this kind of behavior could jeopardize our future relationship" with the company. "The subsidization of goods by foreign governments is something that the Trump Administration takes very seriously, and we will continue to evaluate and verify the accuracy of this preliminary determination".

Senior UK politicians including the Prime Minister and her closest ally in Northern Ireland are involved in a diplomatic row with the United States over a new tariff that has thrown thousands of British jobs into doubt. And there's little doubt that Boeing was encouraged by Trump's aggressive language to seek the most punitive measures possible against Bombardier. Bombardier's subsidies, by contrast, come in the form of the government effectively partnering with the company in funding the early stages of product development.

Boeing said it understood the Government's concerns but claimed Bombardier was not playing by accepted worldwide trading rules.

"Boeing may have won a battle but let me tell you, the war is far from over and that we shall win", he said in Quebec City.

Boeing claims Bombardier's new C Series aircraft have an unfair advantage over its own similar aircraft in the U.S. market due to the nature of subsidies the company receives from the Canadian and British governments.

"Here's hoping the ITC does its job well and puts this frivolous dispute to bed before Bombardier delivers its first C Series plane to Delta in the spring". Hours before the Commerce Department's announcement, Siemens and France's Alstom SA agreed to join their rail businesses in a deal that gives rise to a European transportation giant better able to counter competition from China.



Related Posts

Tiger Woods admits he may not play again competitively
We know how to help each other out, pick people up and also pull them back if they're getting too excited. It was fun to celebrate his PGA Championship win with him and Rickie, and we had a blast.

GOP was lying about health care all along
Her state's officials released a report Friday citing "unique challenges" and deep cuts the measure would impose on the state. For Cassidy-Graham, however, the CBO said it would not have time to complete its normal projections .

Trump's Tax Plan Blueprint, Explained
The number of personal tax brackets would be reduced from seven to three - with rates of 12 percent, 25 percent, and 35 percent. Existing tax benefits for college and retirement savings, such as 401 (k) contribution plans, would be retained.

Amazon Echo Spot could be the company's coolest AI gadget yet
While the new Echo comes in a number of new finishes, the Echo Plus comes in just three colour options: Black, Silver and White. On the hardware side, Amazon introduced a new small, round Echo Spot with a circular screen for displaying digital content.

The President Pushes For Tax Overhaul
Two different tax rates will be applied: one for cash and cash equivalents, and another, lower rate for illiquid assets. So a married couple up to $24,000 can spend their money on their family, on their children, what they have to do.

Winners and losers from Packers' overtime win over Bengals
Rodgers has the most gifted arm in the National Football League when factoring in both arm strength and accuracy. We've definitely seen that story before, and we've seen it the last couple of years with increasing frequency.

Big 12 games start this weekend
P Zach Sinor is averaging 39 yards per punt, and the Cowboys are averaging 21 yards per kick return with five different returners. Cal has non-conference wins at North Carolina and home for Ole Miss with a less than impressive win over Weber State in between.

Thomas Wins FEDEX Championship
Five players, including Thomas, controlled their own playoff destiny if they could capture the Tour Championship this week. However, it would be hard to argue against Thomas capping a career year with those rewards.

Senior Saudi clerics support decision to end driving ban
Responses on a global level and among Saudi women have been overwhelmingly positive, at least on western social media channels. The news was met with celebration from Saudi women and supporters, some of whom have been protesting the ban since 1990.

WWE RAW Preview (9/25/2017): The Down & Dirty On Tonight's Show
At the TLC Pay-Per-View ( Raw's next event, taking place on October 22), Asuka will make her long-awaited main roster debut. All three were among the night's biggest winners , and now, the attention returns to their seemingly inevitable reunion.

© 2015 Stocks News Daily. All Rights reserved.