The US International Trade Commission (USITC) has overturned a ruling that Bombardier sold its C Series below cost price, buoyed by unfair state aid from Canadian and UK Governments.
The four USITC commissioners unanimously dismissed a complaint from Boeing that subsidised sales of CS100s to Delta Air Lines in 2016 had harmed its ability to compete. The decision prevents proposed US Department of Commerce leveraging tariffs of 292% on imports of the Canadian manufacturer’s C Series family into the US.
A Bombardier statement, responding to the USITC decision on January 26, said: “Today’s decision is a victory for innovation, competition and the rule of law. It is also a victory for US airlines and the US travelling public. The C Series is the most innovative and efficient new aircraft in a generation. Its development and production represents thousands of jobs in the US, Canada and the UK. With this matter behind us, we are moving full speed ahead with finalising our partnership with Airbus.”
Boeing maintained the commission verdict failed to recognise the business harm it suffered from billions of dollars in government subsidies to Bombardier, which it claimed were used to “dump aircraft” in the US small single-aisle aeroplane market. This had led the US Department of Commerce to issue the tariff ruling last December.
In its statement, Boeing reacted: “While we disagree with USITC’s conclusion, we will review the commission’s more detailed opinions in full as they are released in the coming days. Boeing remains confident in the facts and will continue to document any harm to the company, and its extensive supply chain that result from illegal subsidies and price dumping. We will not stand by as Bombardier’s illegal business practices continue to harm American workers and the aerospace industry they support. Global trade only works if everybody adheres to the rules we have all agreed to. That’s a belief we will continue to defend.”