Canada warns it may cancel US jet buy over Bombardier probe

Bombardier CSeries

Bombardier CSeries

Canada "strongly disagrees" with the U.S. Commerce Department decision to investigate Boeing's claims that Bombardier sold planes below cost in the United States and benefited unfairly from Canadian government subsidies, the statement added.

"The U.S. market is the most open in the world, but we must take action if our rules are being broken", said Commerce Secretary Wilbur Ross.

(TSX:BBD.B) of unfairly subsidizing the production of its CSeries planes, effectively nullifying Boeing's ability to enter this market, and allegedly costing the American airplane manufacturer approximately $330 million per year in annual revenue. A preliminary determination on the petition is expected by June 12. Boeing wants the tribunal to recommend the Commerce Department impose duties on Bombardier. If the trade body allows the probe to continue, the Commerce Department would then need to determine any preliminary anti-subsidy duties by around July 22, with a deadline for preliminary anti-dumping duties around October 3. As of now Delta remains the only US airline to order the airplane.

Bombardier has stated it will vigorously defend itself against these allegations.

In its complaint against Bombardier, Boeing argued that the CSeries program would not exist without hundreds of millions of dollars in launch aid from the governments of Canada, Quebec and Britain, or a $2.5 billion equity infusion from Quebec and its largest pension fund in 2015. "We are confident that the government investments and our commercial activities comply with the laws and regulations in the jurisdictions where we do business".

NBA Draft Combine starts off without the stars
John's coach who specializes in the NBA Draft, projected Mika to be taken in the second round earlier this week. It's not the way it is for these kids". "One of my friends, Bobby Portis, he's a real good player", Rabb said.

Freeland's comments came as the next potential Canada-U.S. trade dispute unfolded Thursday with the aerospace giants clashing at a Washington hearing. Bombardier said its planes never competed with Boeing in the sale to Delta. "In fact, Boeing executives have specifically and publicly acknowledged that the company does not make a plane of the size that Delta sought".

The contract with Delta includes options for an additional 50 aircraft, and the airline can convert a portion of its commitment to orders for the larger CS300. Delta expects to start taking deliveries next spring.

Bombardier lawyer Peter Lichtenbaum said the plaintiff is a global powerhouse that hasn't lost any sales as a result of Bombardier, has an enviable order backlog and doesn't even compete with Bombardier in the sales campaigns it has complained about because the CSeries is smaller than Boeing's 737-800 and Max 8 planes. The U.S. company estimates that the C Series has received government support totaling more than $3 billion.

Lawyers for the USA aerospace giant argued Thursday that Bombardier's own words prove it was rescued financially by multibillion-dollar assistance from the Quebec government, which past year invested US$1 billion in exchange for a 49.5 per cent stake in the CSeries.

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