Top US trade agency dismisses Bombardier duties

US trade body final ruling due in Bombardier dispute

Boeing has said its business was damaged because Bombardier received illegal government subsidies, dumping the C Series in the U.S. through the cut-price 2016 Delta sale of 75 jets.

Thousands of workers will be "breathing a huge sigh of relief" after Canadian aircraft manufacturer Bombardier Inc won a major trade dispute with the U.S., unions have said. Last year, the number of anti-dumping and countervailing duty investigations launched by the Commerce Department rose more than 60 percent.

Bombardier immediately praised the ruling as a "victory for innovation, competition, and the rule of law".

And the firm reiterated its commitment to open up a US assembly line in Alabama to build C Series planes in partnership with Boeing's archrival Airbus ( EADSY ).

Chicago-based Boeing first brought the case to the Commerce Department previous year, arguing Canadian and British governments were illegally subsidizing the C-Series's costs.

Earlier this week, the Trump administration approved tariffs on behalf of Whirlpool (NYSE:WHR) against washing machine rivals, including Samsung and LG, and on behalf of US solar panel companies against imported cells.

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Delta argued that it wasn't interested in Boeing's smallest jet, the 737 Max 7, and the US plane maker had offered it used Brazilian regional jets.

Turner said: "Bombardier workers in Northern Ireland and throughout the supply chain in the United Kingdom will be breathing a huge sigh of relief that the International Trade Commission has seen though Boeing's baseless complaint".

The government filing also said it would be inappropriate for the commission to make any decision about parts imported from Canada because the Department of Commerce, which controls the scope of the investigation, didn't reach a conclusion on parts.

The commission voted 4-0 in favor of Bombardier.

"Boeing's allegations made against Bombardier were unfounded", Canada's Industry Minister, Navdeep Bains, said in a Twitter message.

The Canadian-made aircraft "do not injure US industry", the USITC said in a brief statement released after the vote. And it is planning to build the C-Series jets in a new plant in Alabama, creating hundreds of jobs.

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"But we must not be complacent - the Trump administration has shown it wants to shut down Britain's ability to support good jobs in strategic industries". "The parties have not broken ground on anything in Mobile related to the joint venture, let alone a full C Series production facility".

Sinn Fein's northern leader Michelle O'Neill said she hoped the decision meant that the matter was now closed.

"We are disappointed because we felt this was important information for the investigation", said Bombardier spokesman Simon Letendre. It is also a victory for United States airlines and the USA travelling public.

Another facet of the dispute is that Boeing's European rival Airbus acquired a majority stake in the C Series program.

But others, like Bloomberg News, speculate that if Bombardier is not facing stiff duties to sell its Canadian-made planes in the U.S., then it has less of a reason to partner with Airbus to make the jets in Mobile.

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