Boeing has filed a legal petition in the United States accusing Bombardier of dumping Cseries aircraft, alleging that the Canadian firm has sold the jet at major loss to build market share.
The petition was filed with the U.S. Department of Commerce and the U.S. International Trade Commission, says Boeing in a statement.
“Bombardier has embarked on an aggressive campaign to sell CSeries aircraft into the U.S. market at absurdly low prices – less than $20 million for airplanes that cost $33 million to produce, based on publicly available information," says Boeing.
"Notably, it is selling the aircraft into the United States at prices that are millions lower than those charged in Canada – the very definition of dumping."
It maintains that this represents a threat to Boeing and its supply chain, especially as the Canadian firm boosts production.
“Substantial government subsidies have enabled Bombardier’s predatory pricing of the CSeries, which competes directly with American-made 737-700 and 737 MAX 7 airplanes," says Boeing.
"The CSeries has received extensive government support totaling more than $3 billion so far. Bombardier launched the program in 2005 with hundreds of millions of dollars from the Canadian, Quebec and UK governments, and it has received additional government support every step of the way, including $2.5 billion in 2015 from the Government of Quebec."
Bombardier was quick to issue a statement defending itself, and highlighting its credentials in the U.S. economy.
"Bombardier structures its commercial dealings to ensure compliance with the laws and regulations of the jurisdictions in which we operate, including those issues raised by Boeing," says the Canadian company.
"Bombardier is deeply invested in the U.S. economy, with about 7,000 employees in dozens of facilities in both rail and aerospace across 17 states. Bombardier spends about $3 billion annually with U.S. suppliers across 48 states, generating U.S. jobs."
Boeing's petition follows Brazil's move in late 2016 to open a World Trade Organisation case against Canada over claims of improper financial assistance to Bombardier.
Brazil’s appeal to the WTO came 20 years after Canada launched a trade war with Brazil over subsidies to Embraer. Brazil counter-sued over subsidies by Canada to Bombardier and the case dragged on for five years. Ultimately, the WTO found that both companies had received improper subsidies.
Source: Cirium Dashboard