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11 October 2017, 12:03 | Darnell Patrick
U.S. delays announcing second round of punishing duties on Bombardier CSeries
The US Department of Commerce handed down another 80% tariff on Bombardier's C-series jets in response to the competition complaint from Boeing, even though the US firm does not supply similar aircraft.
That said, Boeing employs over 18,000 people in Britain and are building a new factory in England.
"I have made clear my bitter disappointment at comments from US Commerce Secretary Wilbur Ross, not least because the impact on Bombardier is not limited to Canada and Northern Ireland".
The Business Secretary said he "strongly and robustly" rejected the allegation that £130 million of investment funding from the UK Government to Bombardier breached trade rules.
Interestingly, the petition for the Commerce antidumping duty investigation was a preemptive move by Boeing Corp. against Canadian aircraft manufacturer Bombardier.
Bombardier called Washington's latest decision "an egregious overreach and misapplication" of USA trade laws to prevent its C Series aircraft from entering the US market, and accused Boeing of also selling planes below production cost "for years". Institutions such as the International Trade Commission and Department of Commerce which project themselves as guardians of the free market are now proactively closing the United States markets by raising protectionist barriers to new and superior market entrants.
"We will continue to verify the accuracy of this decision, while (doing) everything in our power to stand up for American companies and their workers".
While we remain confident that this ruling will be overturned, if not in February when this preliminary ruling is reviewed, then by the World Trade Organisation in coming years, tariffs on this scale are created to maximise the financial pressure on Bombardier in the meantime by effectively closing the United States market to its flagship C-Series programme.
Under global rules, unfair subsidies from governments can take the form of grants, loans, equity injections, tax breaks and production contributions, if they give a company or an industry an unfair competitive advantage over foreign rivals.
But whether or not Bombardier's jets will face import duties of 300 percent, Boeing may have lost a major sale in Canada.
Boeing petitioned the government in April after its smaller rival secured a deal for up to 125 of its CS100s with Delta in 2016.
Bombardier is the largest manufacturing employer in Northern Ireland, and the decision to impose duties on the planes has put 4,200 jobs at risk.
Speaking today in the House of Commons, Clark said the government will continue in its efforts to pressure the USA to drop punitive sanctions against Bombardier.
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