Trade Cases

Commerce Provokes Canada With Bombardier Decision
Written by Sandy Williams
December 21, 2017
The U.S. Department of Commerce announced on Wednesday antidumping and countervailing duties of almost 300 percent on Canadian Bombardier C Series planes that are shipped to the U.S, setting up potential retaliation by Canada.
In its final determination, Commerce set an antidumping duty rate of 79.82 percent and a CVD rate of 212.39 percent. Boeing claims that the Bombardier planes are sold at unfairly low prices in the U.S. due to subsidization by the Canadian government, resulting in injury to Boeing.
“Today, the U.S. Department of Commerce reaffirmed the magnitude to which Bombardier has been subsidized by government funds and the extent to which it dumped C Series aircraft in the United States, selling those aircraft at prices millions below production cost in an illegal effort to grab market share in the U.S. single-aisle airplane market,” Boeing said in a statement.
Canada has already canceled the purchase of 18 Boeing F18 Super Hornet fighter jets in protest. Bombardier says Boeing does not make a plane that competes in the same category as the C Series plane. Bombardier was scheduled to fulfill an order from Delta for 75 of the C Series planes. Bombardier says Boeing has not been able to fill Delta’s orders for years due to backlogs.
Airbus plans to add an assembly line in Mobile, Ala., and teamed up with Bombardier to gain a majority control of the C Series. The jets would be produced in Alabama using parts imported from Canada. Boeing insists the AD/CVD duties cover any parts from Canada that are imported into Alabama for assembly at the Airbus facility.
“This was a politicized trade complaint designed to appeal to the protectionist wing of the Republican Party,” said Richard Aboulafia, an aviation industry analyst with the Teal Group consultancy in Fairfax, Va., in a recent Washington Post article.
Ways around the duties include selling the planes to Delta’s foreign partners who could then lease them to Delta or making sure planes made at the Alabama facility have enough U.S. parts to avoid tariffs.
Scott Miller of the Center for Strategic and International Studies told the Post that it may be doubtful any airplane gets a duty applied to it. “These things have wings and jet engines. They can fly around. You can take delivery in a lot of different ways,” he said.

Sandy Williams
Read more from Sandy WilliamsLatest in Trade Cases

SMU Survey: Less support seen for Trump tariff policies
Meanwhile, an increasing number think it's too early to say whether the penalties are going to bring more manufacturing to the US.

CRU: USW seeks exclusion for Canada from Trump’s tariffs
The union is also urging stronger enforcement against countries such as China which break trade rules, and a coordinated Canada-US strategy to protect union jobs across the North America

Price on trade: A lot happened last week – and it wasn’t all about tariffs
Should foreign investment be allowed to reshape the American steel Industry? Not to be lost in the recent on-again-off-again tariff frenzy, Nippon Steel’s proposed takeover of U.S. Steel has also found itself in President Trump’s crosshairs when it comes to trade and industrial policy. Nippon Steel initially announced its nearly $15-billion bid for U.S. Steel […]

Trump signs executive order aimed at making US shipbuilding ‘great again’
President Trump on Wednesday signed an executive order meant to breathe new life into American shipbuilding and curb Chinese dominance in the sector.

Trump still against selling USS to Japanese firm: Report
Despite ordering a new review of Nippon Steel’s bid for U.S. Steel, President Trump said he is still against selling USS to a Japanese company, according to media reports.