In an unfortunate move for Canadian aircraft maker Bombardier, the U.S. Department of Commerce announced its decision to finalize the 300% import duty levied on its aircrafts.
The legal battle began after U.S. aircraft maker, Boeing registered a complaint against Bombardier, claiming that the company was selling its goods at a far lower price in the United Sates.
This in turn resulted in major loses for Boeing which is Bombardier’s biggest rival. Boeing further stated that Bombardier received a number of exemptions from the Canadian government and had made unfair use of the same.
In response to the complaints, the U.S. Department of Commerce levied duties of close to 300% on Bombardier’s aircrafts. However, the decision had been temporary while the U.S. decided how to best proceed in the matter.
With the new judgement passed on Wednesday, the U.S. decided to find in favor of Boeing. The U.S. decision means that the relations between the country and its neighbor, Canada are likely to be terribly strained.
Bombardier has already expressed its displeasure with the decision. Speaking after the verdict, Bombardier said, “Unfortunately, the Commerce Department decision is divorced from…reality and ignored long-standing business practices in the aerospace industry, including launch pricing and the financing of multibillion dollar aircraft programs”.
The company’s statement is an echo of one made by Canada’s ambassador to the United States, David MacNaughton. MacNaughton had earlier stated that the U.S. was playing in dangerous waters by interfering with the international sanctions which govern the sale of aircrafts.
Bombardier for its part expressed its disappointment that the U.S. Commerce Department did not take the opportunity to “rectify its past errors”. The verdict is certain to cause major problems for U.S-Canadian ties.
The Canadian government has already backed out of a deal to buy 18 Super Hornet fighter jets from Boeing and bigger boycotts are likely to follow.