Boeing and Bombardier have embarked on a legal battle before the International Trade commission with Boeing insisting that Bombardier has received a huge number of unethical trade subsidies.
The issue began when Boeing accused Bombardier of taking steps which would negatively affect the sale of its 737 aircraft. Bombardier immediately retaliated and the verbal battle has now snowballed into a legal issue concerning the ITC.
Boeing went so far as to urge the ITC to support tariffs against its Canadian rival. However, Bombardier, not to be outdone, informed the ITC that Boeing “makes money hand over fist” from its 737. As such, the “harm” that Boeing is accusing Bombardier of is merely fictional.
Boeing, not to be outdone, immediately latched on to the claim that Bombardier’s new C-Series aircraft has received numerous subsidies from its parent country, Canada allowing it sell its planes below cost in the United States. As such, Bombardier’s aircrafts were seeing greater sales than Boeing’s competing models.
Boeing won the first round of the conflicts when a decision made by the U.S. Commerce Department in October demanded that tariffs of up to 300% be imposed on Bombardier’s C-Series.
Canada has come out in support of Bombardier with Canada’s ambassador to the U.S. David MacNaughton stating that a ruling in Boeing’s favor will not be the end of the dispute.
MacNaughton added that the ITC would be violating rules set down by the World Trade Center if it continued interfering with Bombardier’s sales.
However, despite the strong front put up by Canada, the ITC does not seem to be backing down.
An upcoming meeting of the ITC will decide if the tariffs imposed on Bombardier will be made permanent.
If approved, the move will mean the end of the C-Series on the U.S. market.