U.S. Trade Body Votes To Continue C Series Dumping Probe

 - June 9, 2017, 2:17 PM

The U.S. International Trade Commission on Friday voted to affirm a “reasonable indication” existed that imports from Canada’s Bombardier threaten material injury to U.S. industry, thereby clearing the U.S. Department of Commerce to continue its anti-dumping and countervailing duty investigations on imports from Canada.

The case involves the sale to Delta Air Lines of 75 C Series jets, delivery of which Bombardier expects to start next spring. In an April 27 complaint to the ITC, Boeing charged that Bombardier sold each airplane for some $13.8 million less than they cost to manufacture.

Bombardier has disputed the figures cited by Boeing, calling the allegations “absurd.”

Boeing’s number is materially wrong; it is off by millions,” said Bombardier in a written statement. “We are confident that the government investments and our commercial activities comply with the laws and regulations in the jurisdictions where we do business.”

The Canadian airframer argues that the C Series does not compete directly with the Boeing 737 Max 7, the narrowbody airplane that the U.S. manufacturer claims has suffered material harm from Bombardier’s sale of its product for well below cost and illegal subsidies from the government of Canada. It also notes that Boeing executives have acknowledged it does not make an airplane that Delta Air Lines sought, and that it instead attempted to sell used Embraer 190s it carried in its inventory from trade-ins.

Meanwhile, the case has created a rift between the governments of Canada and the U.S., prompting Canadian officials to reconsider their procurement plans involving 18 Boeing F/A-18 Super Hornets.

Boeing’s petition is clearly aimed at blocking Bombardier’s new aircraft, the C Series, from entering the U.S. market,” said Canadian minister of foreign affairs Chrystia Freeland in a statement. “Boeing admits it does not compete with exports of the CS100 aircraft, so it is all the more difficult to see these allegations as legitimate, particularly with the dominance of the Boeing 737 family in the U.S. market. Furthermore, many of the C Series suppliers are based in the United States…the C Series [is] directly supporting high-paying jobs in many U.S. states.”