Advertising

Boeing will not appeal US trade panel's Bombardier tariff vote

Boeing confirms it will not appeal a decision by the US International Trade Commission (ITC) that nullified steep tariffs on the importation into the USA of Bombardier CS100s.

"We did not appeal the ITC's decision in the Bombardier case," says Boeing, adding that the appeal deadline was 22 March.

Though Boeing declines to comment about the reasons behind its decision, its failure to appeal closes a highly-contentious trade dispute and signals Boeing has stepped aside as Bombardier prepares to deliver CS100s to Delta Air Lines.

Bombardier has said it will begin delivering the Delta aircraft this year.

Boeing set the dispute in motion by filing a petition with the US Department of Commerce in April 2017.

Boeing argued in that document that Bombardier violated US trade law by receiving government subsidies on the order of $4.5 billion, and then "dumping" CS100s in the USA at below-cost prices with a 75-aircraft sale to Delta Air Lines in 2016.

The US manufacturing giant claimed that sale harmed sales of the smallest versions of its 737 line, the 737-700 and 737 Max 7.

The Commerce Department ultimately sided with Boeing, slapping CS100 imports with 292% import tariffs in 2017. Bombardier had not yet imported any aircraft, but the steep tariff threatened the Delta sale and smothered the company's prospects of closing CSeries sales with other US airlines.

Bombardier responded with plans to partner with Airbus and open a CSeries assembly site in the USA – thereby avoiding the tariffs.

But another US agency – the ITC – held the last word.

ITC board members nullified the tariffs in January when they concluded Bombardier's Delta sale did not harm Boeing or any US industry.

The ITC's final report said Boeing suffered no harm because it sells no aircraft that competes with the CS100.

Advertising
Related Content
Advertising