Canada's move as U.S. confirms hefty Bombardier trade duties

US confirms 300% duties on disputed Bombardier jets, a win for Boeing

US Department of Commerce upholds 300% tariff on Bombardier C-Series imports

Stephen Kelly, chief executive of Manufacturing NI, said while the result "was not unexpected given where we are in this dispute process, it appears the Commerce Department has gone a degree further by moving tariffs onto not only fully- but partially-assembled C Series aircraft".

Boeing called for action from U.S. authorities saying the C-Series competes with its small 737 jet, a point refuted by Bombardier.

The duties are meant to account for subsidies from the British, Canadian and Quebec governments that, the Department of Commerce claims, allowed Bombardier to sell C Series planes in the unfairly low prices.

"The United States is committed to a free, fair, and reciprocal trade and will always stand up for American workers and companies being harmed by unfair imports", he said in a news release.

Commerce ruled that the planes - none of which have been imported into the country yet - should be subject to duties totaling 292.21 percent.

But the Commerce Department's statement on Wednesday said that Bombardier, petitioners and the government of Canada agreed that that proposed agreement "does not impact these investigations".

Foreign Affairs Minister Chrystia Freeland said Ottawa is determined to defend Canadian companies and workers against protectionism.

Labelling Boeing's complaint "meritless" and a "cover to close the US market", Mr Turner called on the US International Trade Commission (ITC) to set aside the Commerce Department's decision when it hears the next stage of the complaint in February.

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"We will review today's final determinations to consider next steps and our options for appeal", she said in a statement.

The dispute has contributed to escalating trade tensions between the U.S. and Canada.

"Today's decision validates Boeing's complaints regarding Bombardier's pricing in the United States, pricing that has harmed our workforce and US industry", Boeing said in a statement.

Boeing, she said, is seeking to "advance its market dominance by excluding Bombardier's C Series aircraft from the USA market".

But Bombardier argues that Boeing isn't threatened by the sales of the C Series because it doesn't sell an 100-seat airplane to suit the needs of airlines like Delta, which ordered 75 planes in April 2016 to update its fleet.

Boeing argues that Bombardier signed a deal to sell its new single-aisle CS 100 planes with a price tag of just $19.6 million each, far below the $33.2 million construction cost, and a pittance compared with the list price of $79.5 million - though that amount is nearly never paid.

Bombardier has yet to ship any of the planes to the United States.

Delta is expected to wait for that new plant to open before taking delivery of their order.

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