Industry USITC blocks tariffs on Bombardier CSeries

The case was brought by Boeing, which accused Canadian aircraft manufacturer Bombardier of subsidizing its CSeries product with unfairly low prices to US airlines. Boeing filed a petition for dumping after Bombardier sold 75 CSeries plus 50 options to Delta Air Lines in April 2016. The prices for each aircraft should have been lower than the production costs.

The USITC stated in a press release: “The United States International Trade Commission (USITC) today determined that a U.S. industry is not materially injured or threatened with material injury by reason of imports of 100- to 150-seat large civil aircraft from Canada that the U.S. Department of Commerce (Commerce) has determined are subsidized and sold at less than fair value. (…) As a result of the USITC’s negative determinations, no antidumping or countervailing duty orders will be issued.”

“Today’s decision is a victory for innovation, competition, and the rule of law. It is also a victory for U.S. airlines and the U.S. traveling public. (…) With this matter behind us, we are moving full speed ahead with finalizing our partnership with Airbus. Integration planning is going well and we look forward to delivering the C Series to the U.S. market so that U.S. airlines and the U.S. flying public can enjoy the many benefits of this remarkable aircraft,” said Bombardier in an official statement published on its website.

Airbus has announced a partnership with Bombardier on the CSeries program in October 2017. Airbus will acquire a 50,01% stake in the aircraft. As part of this partnership an additional assembly line to the existing in Quebec should be opened in Mobile, Alabama.

US aircraft manufacturer Boeing stated: “We are disappointed that the International Trade Commission did not recognize the harm that Boeing has suffered from the billions of dollars in illegal government subsidies that the Department of Commerce found Bombardier received and used to dump aircraft in the U.S. small single-aisle airplane market. Those violations have harmed the U.S. aerospace industry, and we are feeling the effects of those unfair business practices in the market every day.”

USIT’s decision could increase the market position of the CSeries in the US. Several US carriers plan to renew their short- and medium-haul fleet and the Cseries could become an attractive alternative to Embraer’s E190 and Boeing’s B737.

Boeing and Embraer confirmed talks about a cooperation in December. This new cooperation could bring Boeing in a similar position as Airbus with its stake in Bombardier’s CSeries.