Bombardier Wins U.S. Trade Dispute With Boeing

The U.S. International Trade Commission ruled unanimously in favour of Bombardier.

Bombardier has won their trade dispute with Boeing, meaning the U.S. Commerce Department will be unable to impose tariffs of over 292% on the CSeries Jet.

As noted by BNN, “Boeing (BA.N 0.03%) filed a trade complaint against Bombardier in April, arguing the plane was subsidized by the Canadian government, allowing Bombardier to sell its aircraft at an unfair discount. Bombardier’s shares surged 15.31 per cent on Friday, closing the trading day up 47 cents at $3.54.”

All members of the U.S. International Trade Commission voted in favour of Bombardier.

Delta Airlines was also pleased by the ruling, viewing Boeing’s complaint as an anti-competitive measure.

Interestingly, the move may help strengthen the argument that Chapter 19 of NAFTA (AKA the dispute resolution mechanism), is not necessary:

Canada has been adamant that Chapter 19 – one of the key dispute resolution mechanisms in the current agreement- be preserved in any future version of the trade pact.

‘”The Americans, I think, are going to be able to say: ‘Look, Canada, you keep saying you don’t trust our domestic processes. Look. They worked! [For] Bombardier, they worked. The ITC – an independent body – reviewed your case and ruled against one of our biggest companies. So, you are totally out in left field when you say that you have to have Chapter 19,'” Mark Warner, Principal at MAAW Law told BNN shortly after the decision was announced.”

Overall, the decision is good news for Canada, as it will mean increased production in our country. Of course, it’s unlikely to stop Bombardier from coming back to the taxpayers for another bailout a few years down the road. Also, the CSeries is now majority owned by Airbus, so it’s not longer a Canadian plane.

So, even this bit of good news serves as a painful reminder that Canada is losing more and more of our national economic independence to foreign powers.

Spencer Fernando

Photo – YouTube