Boeing vs. Bombardier: a new trade dispute has broken out
American jet-maker Boeing has accused Bombardier of ājet-dumpingā in the U.S. the same way the Trump administration did when it accused the big Canadian lumber companies of dumping lumber in the U.S. earlier this week.
Boeing says in its ITC (International Trade Commission) complaint, āPropelled by massive, supply-creating and illegal government subsidies, Bombardier Inc. has embarked on an aggressive campaign to dump its C-Series aircraft in the United States.ā
Boeing claims Bombardier sold the jets to Delta Airlines for $19.6-million each. Bombardier's spokesman fired back that the claim is absurd. The C-Series 100-seater is listed for $79.5-million, and the 150-seater model for $89.5-million.
Boeing is asking the Commerce department to impose tariffs on Bombardier, in order to level the playing field.
Boeing has been in a long-standing feud against Airbus SE over accusations of the same kind of unfair pricing practice.
In both instances, Boeing's argument is that it can't compete on price with either Bombardier or Airbus SE, because they are both getting substantial government subsidies.
Why does this matter?:
Boeing's attack seems inspired by this weekās move by the Commerce Department to impose U.S. tariffs on Canadian lumber, and we may be looking at a trailer for an all-out widening trade war which may target other Canadian exporters that benefit from government subsidies, and continued pressure for an overhaul of NAFTA.
There's increasing political support for these protectionist trade moves because they donāt cost U.S. taxpayers anything, and policymakers look as though they are protecting U.S. jobs.
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