Canada’s Bombardier Hit with 220% Tariff – IOTW Report

Canada’s Bombardier Hit with 220% Tariff

Responding to a complaint filed by Boeing, the U.S. Department of Commerce has placed a 219.63% counter-veiling tariff on Canadian manufacture Bombardier’s C series aircraft. The complaint charged that Bombardier was selling its aircraft below market rates thanks to the government subsidies showered on the firm.

The company had secured a 75 plane deal with Delta Airlines, Inc. this summer for its new design.
According to Bloomberg they only had one other order for its C series, from Air Tanzania.

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12 Comments on Canada’s Bombardier Hit with 220% Tariff

  1. Actually, Boeing went this way because they were afraid of another AirBus firm starting up and biting into their market. Boeing complains about government subsidies but keeps quiet about Boeing’s weapons groups that provides research and money to the civilian group.

    A number of years back the US Lumber industry filed a compalint against Canadian softwood lumber exports to the US. They said that the Candian government unfairly subsidized the canadians through artificially low stumppage fees. The Canadians won appeal after appeal after appeal even when Americans outnumbered Canadians on the appeal panels. Remember, this was under the Canada-US Trade Agreement. Once the dispute mechanisms in the treaty were exhausted the Americans went to the WTO (I think it was them) where they finally won. Not because the Canadians were sussidizing the lumber but because they made a small mistake in the duty calculation. By this time there was $5 Billion in extra duty being held in trust. The Americans threatened to just keep going from dispute panel and back again unless the Canadians settled. Well, they did. The Canadians got $4.5 billion back, the American lumbers cutters (who raised the complaint)got $200 million and the rest went to pay all the legal expenseson the US side (I think that’s where it went, hell it might have gone to Clinton). There was also a deal not to bring this up again for ten or so years. A few years later the chief negotiator for the Americans in this brouhaha was interviewed on a financial show and said that the problem wasnt’ the calculation or some government subsidy on stumppage fees, the real problem was that Canada has too many trees.

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