Boeing-Bombardier trade dispute comes into spotlight

Company - Mohit Shah - Dec 19,2017

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boeing bombardier trade dispute comes into spotlight

On Monday, U.S. planemaker Boeing claimed that Bombardier Inc. has profited billions of dollars through illegal government subsidies.

Both the parties appeared before the U.S. International Trade Commission (ITC) in the fresh round of this bitter trade dispute. The U.S. planemaker Boeing actively accused Bombardier of hampering sales of its 737 aircraft and requested the commission to support tariffs focused at its Canadian rival.

Defending its case, Bombardier contended that Boeing’s huge 737 order book shows there hasn’t been any negative impact due to its CSeries jet. Moreover, they have also claimed, the U.S. planemaker isn’t manufacturing any jet which competes with their new model.

According to Bombardier representative Peter Lichtenbaum, “Boeing is making money hand over fist. And with a backlog of 737 orders years into the future, there are no signs of difficulty on the horizon”.

Earlier in October, Boeing won the first round of this dispute when the U.S. Commerce Department issued an order that tariffs ranging about 300% should be enforced on the C-Series. Now, the ITC has the power to decide whether the tariffs have to be fixed permanent; if this happens, you can call it a shutdown for the C-Series in the U.S. market.

As per Boeing, it has already been stressed that Bombardier has acquired billions of dollars through illegal government subsidies to emerge with its C-Series programme. The U.S. planemaker said, the C-Series wouldn’t have existed if those subsidies weren’t in the scenario.

This tussle dates back to 2016 with the trading deal of 75 C-Series jets to Delta Air Lines. According to Boeing, Delta offered $20m per plane, which is well below the projected cost of $33m and what Bombardier actually charges in its native region.