Yahoo Finance Canada takes aim at Boeing over Bombardier tariff row
Canada’s government has launched a fresh attack in the row over the US imposing import tariffs on airliners built by Bombardier, a move which threatened UK jobs.
Launching a tender to buy 88 new fighters, the Canadian government referenced tension with the US after Boeing-led a campaign for trade levies on imports of Bombardier’s C-Series airliners.
In a statement, the Canadian government said when bids for the fighters are assessed, “any bidder that is responsible for harm to Canada’s economic interests will be at a distinct disadvantage".
This is a clear reference to Boeing, who build the F-18 fighter which is the mainstay of Canada’s airforce, and who had been hoping to land a follow-on sale before the row blew up.
A sale of C-Series jets to American carrier Delta looked in doubt after the US imposed 300pc levies on the jets. US courts said they were planning to introduce the tariffs because the airliners had received state subsidies, allowing them to be “dumped” at unrealistic prices.
C-Series is assembled in Canada but large parts of it are built in Belfast, where Bombardier is the largest employer, and cancelling the order could have threatened hundreds of jobs there.
Prime Minister Theresa May intervened, asking Donald Trump to reconsider, while Canadian Prime Minister went further, saying “we won’t do business with a company that is trying to sue us, eliminate tens of thousands of jobs and put our companies out of business”.
In a statement, Boeing said it "respects the Canadian government's decision" to drop plans to buy its 18 fighter jets.
"Although we will not have the opportunity to grow our supply base, industrial partnerships and jobs in Canada the way we would if Canada purchase
Boeing's UK executives are due before the Northern Ireland Affairs tomorrow morning to give evidence about the Bombardier row.
