Bit of a surprise

America’s International Trade Commission (ITC) overturned a decision to impose 292pc trade tariffs on the C-Series jets, which are being sold to US airline Delta.

The levies would have massively ramped up the cost of the 75 aircraft and likely caused Delta to cancel the contract.

But, in a surprise ruling, the ITC rejected a complaint brought by Boeing, voting 4-0 in favour of Bombardier.

The court rejected Boeing’s claims that it suffered injury in the case.

That ITC is less politically directed than I had thought.

8 comments on “Bit of a surprise

  1. Didn’t Bombardier fire sale themselves to Airbus to make in US factories to get round this? Does this undo that deal?

  2. That ITC is less politically directed than I had thought

    For all his arm-twisting and chaddish braggadocio, Trump and his regime is actually Lawful Good.

    Contrast with the Scandal-Free™ administration he replaced, which issued blatantly unconstitutional executive orders, sold guns to Mexican drug cartels, pressurised Supreme Court judges to bend the law, directed the IRS to persecute political enemies, got the Department of Justice to spy on critical journalists, etc.

    Boeing claimed that Bombardier – which is based in Canada – received illegal state subsidies from Quebec and the UK. It was only because of these that Bombardier was able to sell the C-Series jets at $19.6m each to Delta, hugely below their $80m list price.

    That’s a helluva discount.

    Canadian Prime Minister Justin Trudeau had taken a much harder line, saying his country would not do business “with a company that is trying to sue us, eliminate tens of thousands of jobs and put our companies out of business”. He also cancelled a multi-billion order for F-18 fighters from Boeing and warned the company off another bigger contract for combat jets.

    So they’re refusing to buy F-18’s or any other jets from Boeing, which means Lockheed Martin’s negotiating position in flogging them F-35’s (which the Canadians, like ourselves, can’t really afford) is considerably strengthened.

    Unless Canadia is gonna buy a Eurocanard to replace its F-18 fleet, and they won’t, this seems like fleetingly good political optics at the literal expense of the taxpayer. But democracy means you get what you deserve, good and hard.

  3. USD80m down to USD20m? It does seem to me that Boeing has a point. That is fresh evidence to support my contention that we can have a free market within a nation, but a global, or trans-national, free market cannot properly exist.

  4. A lot of us Canadians were hoping the ITC would rule against Bombardier to stop the never ending hemorrhage of taxpayer blood-money to the vampire Bombardier.

  5. Boeing claimed that Bombardier – which is based in Canada – received illegal state subsidies from Quebec and the UK. It was only because of these that Bombardier was able to sell the C-Series jets at $19.6m each to Delta, hugely below their $80m list price.

    As ITC didn’t believe it; what did Boeing use as evidence for this $60m discount?

  6. I was listening to the complaints about state subsidies, and was wondering how state-provided universal education, unemployment protection, healthcare and pension provision counts as “unfair state subsidies”.

Leave a Reply

Name and email are required. Your email address will not be published.