USA slaps new 80pc duty on Bombardier

Royal Australian Air Force FA-18 Hornets fly over Melbourne in 2002. Public Services and Procurement Canada quietly posted notice on its website over the holiday weekend that it has sent a formal letter expressing interest in surplus Australian warplanes

MONTREAL-Bombardier Inc. accused the Trump administration of overreach by siding with Boeing in its bid to shut the CSeries commercial jet from the world's largest airline market by effectively quadrupling the price of any of the planes sold in the United States. On Sept. 26, Commerce also announced preliminary countervailing duties to be imposed on these same Canadian aircraft, as part of the Boeing petition.

The Commerce Department proposed a 79.82 percent antidumping duty after a preliminary finding that the jets were sold below cost to Delta Air Lines in 2016.

Mr Clark said that the Government "strongly and robustly refute this allegation", adding: "We can demonstrate any aid that has been given.is consistent with the type of assistance Boeing has had over time".

The punitive tariffs will now have to be approved by the US International Trade Commission (ITC) early next year.

Bombardier can appeal any sanctions to a US court or to a dispute-resolution panel created under the North American Free Trade Agreement.

Canada and Britain threatened to avoid buying Boeing military equipment in retaliation, saying the duties on the CSeries would reduce US sales and put thousands of Bombardier jobs in their countries at risk.

Speaking today in the House of Commons, Clark said the government will continue in its efforts to pressure the USA to drop punitive sanctions against Bombardier. Some analysts said the muted response reflected a view that the penalties might not actually be applied.

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Montreal-based Bombardier called Commerce's preliminary antidumping duty decision "an egregious overreach and misapplication of the US trade laws in an apparent attempt to block the C Series aircraft from entering the USA market".

Boeing's trade case against Bombardier over the CSeries has been categorically rejected as having no merit by the United Kingdom government, which has urged the U.S. airframer to withdraw the complaint immediately.

Opposition Labour party member Clive Betts, representing Sheffield, said an "all-out war" with Boeing needed to be avoided and stressed that, while defending Bombardier was "crucial", nothing should be done that would compromise the possibility of further Boeing investment in Sheffield.

The U.S. Commerce Department will release its final decision on the anti-dumping duty in December.

Ms Long-Bailey also took aim at Defence Secretary Sir Michael Fallon, and his failure to use defence contracts as leverage with Boeing.

"We will continue to verify the accuracy of this decision, while (doing) everything in our power to stand up for American companies and their workers".

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