tiptrot.com July 17, 2018

Bombardier ruling a "hammer blow" for workers in the North

28 September 2017, 12:11 | Mandy Simon

Bombardier ruling a "hammer blow" for workers in the North

Canada blasts Boeing warns US jobs at stake in Bombardier trade row

Delta, which will use the jet on short and medium range flights around the USA, cautioned that the ITC's decision was preliminary.

The US Commerce Department on Tuesday said it would impose anti-dumping duties of 220 percent on Bombardier's CSeries jets, following an investigation into state subsidies sparked by a Boeing complaint.

United Kingdom government representatives insist they will work to defend jobs in Bombardier's Northern Ireland facility following the adverse U.S. ruling over the Canadian airframer's CSeries jet.

Boeing has argued that the military sale to the Canadian government and its petition against Bombardier are not linked.

Speaking before the ruling, Prime Minister Justin Trudeau promised to continue to stand with Bombardier and Canada's aerospace industry.

The Northern Ireland powersharing Executive and UK Government pledged to invest nearly £135 million in the establishment of the C-Series manufacturing site in Belfast.

The future of the C Series jets appeared secure after Bombardier signed a 5.6 billion USA dollar (£4.16 billion) deal in 2016 to provide the aircraft.

She said: "The Department of Commerce ruling is a blow to the many families and workers who face a very uncertain future and hard times ahead".

"If the C-Series is ground to a halt, potentially you have up to 800 jobs there plus you have the supply chains in the wider community as well, so it is a very worrying time".

Shares in Alstom surged about 5% in early trading while Siemens shares added 2%.

Bombardier's aerospace division employs 28,500 worldwide, including 4,000 in Northern Ireland where the jet's wings are manufactured.

Announcing the USA government's initial finding, the country's secretary of commerce Wilbur Ross said the subsidisation of goods by foreign governments was something the Trump administration "takes very seriously".

'We will continue to work closely with the Canadian government to encourage all parties to reach a credible resolution as quickly as possible'.

Ms Freeland said the U.S. tariffs were "clearly aimed at eliminating Bombardier's C Series aircraft from the United States market".

Boeing has argued that duties should be imposed on Bombardier aircraft because the Montreal-based company received government subsidies that give it an illicit toehold in the worldwide market. That decision is expected to be made next year.

"Theresa May has been asleep at the wheel when she could and should have been fighting to protect these workers", Murdoch said.

"U.S. trade laws were never meant to be used in this manner, and Boeing is seeking to use a skewed process to stifle competition".

There are not that many Commerce countervailing orders that are this high, but it is lower than the 256 percent final duties slapped on Chinese cold-rolled steel a year ago.

"The magnitude of the proposed duty is absurd and divorced from the reality about the financing of a multibillion-dollar aircraft program", Bombardier said.

The Commerce Department announcement, which centered on Boeing's claim that the Canadian jet maker had received unfair government subsidies for its products, was the first in a series of rulings on the duties that are to be charged to Bombardier's products, rulings that could be reversed in months to come.

"The UK government must now intervene to secure orders from British carriers for Bombardier aircraft - they should also immediately review all contracts with Boeing", said Jimmy Kelly of Unite.

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