Statement on Commerce Department countervailing duties preliminary decision
“We strongly disagree with the Commerce Department’s preliminary decision. The magnitude of the proposed duty is absurd and divorced from the reality about the financing of multibillion-dollar aircraft programs. This result underscores what we have been saying for months: the U.S. trade laws were never intended to be used in this manner, and Boeing is seeking to use a skewed process to stifle competition and prevent U.S. airlines and their passengers from benefiting from the C Series.
The simple truth is that Bombardier created a superior aircraft that is more efficient, more comfortable, and quieter. The C Series serves a market segment not supported by any U.S. manufacturer. Delta wants to bring this remarkable new aircraft to the U.S. flying public. Boeing wants to prevent U.S. passengers from realizing these benefits, irrespective of the harm that it would cause to the U.S. aerospace industry and the cost to airlines and consumers.
Looking beyond today’s and next month’s preliminary decisions, the International Trade Commission will determine next year whether Boeing suffered any injury from the C Series. Because Boeing did not compete at Delta and because Boeing years ago abandoned the market the C Series serves, there is no harm.
There is wide consensus within the industry on this point, as well as a growing chorus of voices, including airlines, consumer groups, trade experts, and many others who have come forward to express grave concerns with Boeing’s attempt to force U.S. airlines to buy less efficient planes with configurations they do not want and economics that do not deliver value.
The U.S. government should reject Boeing’s attempt to unfairly tilt the playing field in its favour and to impose an indirect tax on the flying public through unjustified import tariffs.”
September 26, 2017 Montréal Commercial Aircraft, Press Release
Background: The U.S. Commerce Department imposed duties of no less than 220% on imports of C Series aircraft after Boeing Co. complained that the Canadian company received unfair government help. Delta Air Lines agreed to buy at least 75 of the CS100 planes last year.
Prime Minister Justin Trudeau has said the Canadian government won’t buy Boeing military jets unless the company drops its case against Bombardier.
