Finds Dumping And Subsidization Of Imports Of 100- To 150-Seat Large Civil Aircraft Bombardier
U.S. Secretary of Commerce Wilbur Ross has announced the affirmative final determinations in the antidumping duty (AD) and countervailing duty (CVD) investigations of 100- to 150-seat large civil aircraft from Canada.
“This decision is based on a full and unbiased review of the facts in an open and transparent process.” said Secretary Ross. “The United States is committed to a free, fair, and reciprocal trade and will always stand up for American workers and companies being harmed by unfair imports.”
Commerce determined that exporters from Canada sold 100- to 150-seat large civil aircraft in the United States at 79.82 percent less than fair value. Commerce also determined that Canada is providing unfair subsidies to its producers of 100- to 150-seat large civil aircraft at a rate of 212.39 percent.
As a result of today’s decisions, Commerce will instruct U.S. Customs and Border Protection to collect cash deposits from importers of 100- to 150-seat large civil aircraft based on the final rates. Although Canadian civil aircraft subject to these investigations have not yet been imported into the United States, an April 2016 press release announcing the sale of Canadian civil aircraft to a U.S. airline valued the order to be in excess of $5 billion.
Bombardier, the Government of Canada, and Petitioners agreed that the proposed transaction between Bombardier and Airbus does not impact these investigations. The proposed transaction has yet to be finalized. The petitioner is The Boeing Company (IL).
The AD and CVD laws provide U.S. businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of dumping unfairly priced and unfairly subsidized imports into the United States. Enforcement of U.S. trade law is a prime focus of the Trump administration. From January 20, 2017, through December 18, 2017, Commerce initiated 79 antidumping and countervailing duty investigations – a 52 percent increase from 52 initiations in the previous year. Commerce currently maintains 412 AD and CVD orders which provide relief to American companies and industries impacted by unfair trade.
If the U.S. International Trade Commission (ITC) makes affirmative final injury determinations, Commerce will issue AD and CVD orders. If the ITC makes negative final determinations of injury, the investigations will be terminated and no orders will be issued.
Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade laws and does so through an impartial, transparent process that abides by international law and is based solely on factual evidence.
Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to AD duties. Foreign companies that receive financial assistance from foreign governments that benefits the production of goods from foreign companies and is limited to specific enterprises or industries, or is contingent either upon export performance or upon the use of domestic goods over imported goods, are subject to CVD duties.
In a statement, Bombardier Vice President Communications and Public Affairs Mike Nadolski said the evidence presented Monday at the U.S. International Trade Commission demonstrated that Boeing’s petition is an unfounded assault on airlines, the flying public, and the U.S. aerospace industry.
"That has been true since the start of the investigation, and recent developments make it even clearer, particularly the Bombardier and Airbus partnership, which will include the construction of a new U.S. manufacturing facility in Alabama. This facility will provide U.S. airlines with a U.S.-built plane thereby eliminating any possibility of harm due to imports," the statement said.
"Unfortunately, the Commerce Department decision is divorced from this reality and ignores long-standing business practices in the aerospace industry, including launch pricing and the financing of multibillion dollar aircraft programs. Moreover, we are deeply disappointed that the Commerce Department did not take this opportunity to rectify its past errors.
"We remain confident that at the end of the process, the United States International Trade Commission will reach the right conclusion, which is that the C Series benefits the U.S. aerospace industry, U.S. airlines, and the U.S. flying public.
"The fact is that the C Series simply does not threaten Boeing. Boeing did not compete in the Delta campaign. It has not made a plane sized to Delta’s needs for many years, since it stopped producing the 717 and 737-600. Moreover, Boeing has acknowledged that it has oversold its 737 production capabilities and has a backlog of more than 4,300 aircraft orders that stretches years into the future.
"Bombardier’s innovative spirit led us to create the C Series, which is more comfortable, reliable, fuel efficient, and environmentally friendly than anything else in the market. The U.S. flying public and U.S. airlines should not be precluded from enjoying these benefits, especially given the tremendous positive impact the C Series brings to the U.S. aerospace industry.
"Bombardier estimates that the new Alabama assembly line will add 400 to 500 direct jobs in the United States, along with thousands more indirect and induced U.S. jobs. It will also bring approximately $300 million in new foreign direct investment to the United States. These new U.S. jobs and investment are in addition to the 22,700 jobs already supported by Bombardier’s C Series through its U.S. supply base."
(Source: U.S. Commerce Department and Bombardier news releases. Image from file)
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