The U.S. International Trade Commission on Friday foiled Boeing's attempts to get trade relief against Canadian aircraft manufacturer Bombardier. Boeing won a preliminary victory, when regulators proposed a tariff of almost 300 percent on any of the jets imported into the U.S.
Boeing says those funds allowed Bombardier to sell its new C Series airliner to Delta Air Lines at "absurdly low prices" in violation of US trade rules.
Boeing said its business would suffer because of the C Series planes even though the ones designated for USA clients would come from a new line to be built in Mobile, Alabama.
The Canadian government has filed requests for panel reviews under NAFTA to appeal USA decisions to impose duties on imports of the C Series and softwood lumber from Canada.
The dispute began in April previous year after Boeing complained about a Delta Air Lines order for 75 CSeries jets.
Those fees could only have been implemented if the trade panel concluded Boeing faced serious harm from the Bombardier imports - a claim the panel rejected Friday.
"I'm genuinely surprised that Bombardier won", he said.
The 4-0 choice is open annihilation for Boeing, which had contended that Bombardier's exchange hones were unlawful and unsafe to its business. Executives say they are concerned about Boeing's competitive position as Airbus expands its offering of planes through the planned tie with Bombardier.
The International Trade Commission pushed back its decision to Friday from Thursday due to the government shutdown over the weekend. "Period. And there may never be one", Boeing's lawyers argued in the company's most recent official filing with the commission.
The company added: "The C-Series is the most innovative and efficient new aircraft in a generation".
Boeing's assertion that it suffered harm from the Bombardier sale to Delta of 75 CSeries jets drew skepticism from some trade lawyers, and protests from both the buyer and seller. Last year, with the plane's access to the USA market in doubt, Bombardier agreed to hand control of the program to Airbus SE in exchange for the European planemaker's marketing muscle and manufacturing expertise.
"It is also a victory for USA airlines and the US traveling public", Bombardier's statement added. In its statement, Bombardier underlined that the aircraft's construction "development and production represent thousands of jobs in the United States, Canada, and the United Kingdom".
He said details about the Embraer aircraft, which came after the factual record closed at the USITC, "eviscerates the premise of Boeing's case". In its deposition during the ITC proceedings, Delta simply said that Boeing did not offer anything that was considered viable by the company. Bombardier says that will create more than 2,000 permanent U.S.jobs. "With this matter behind us, we are moving full speed ahead with finalizing our partnership with Airbus", which partnered with Bombardier to help manufacture the planes in Alabama.