Jet giants’ trade war is ‘far from over’

The trade dispute between Boeing and Bombardier is not over, according to an expert, despite a ruling denying Boeing’s request for a 292% tariff on Bombardier’s new line of C-Series jets.

Boeing had argued that its rival received unfair subsidies from the British and Canadian governments, but a decision to impose tariffs made by the US Commerce Department in December has now been overruled by the International Trade Commission (ITC).

In a statement, Bombardier said the decision was “a victory for innovation, competition and the rule of law”. The ruling was welcomed in the UK, as more than 1,000 jobs at Bombardier’s factory in Belfast were potentially at risk. Trade union Unite said workers in Northern Ireland would be “breathing a huge sigh of relief”.

However, the long-running saga may be far from over. In a statement, Boeing said it disagreed with the ITC’s conclusion. “Boeing remains confident in the facts of our case and will continue to document any harm to Boeing and our extensive US supply chain that results from illegal subsidies and dumped pricing. We will not stand by as Bombardier’s illegal business practices continue to harm American workers and the aerospace industry they support,” it said.

At the time of writing, it is unclear whether Boeing will appeal against the decision, but, according to aerospace writer and consultant Keith Hayward, it will continue to scrutinise any deal involving Bombardier or Airbus, which took a majority stake in the C-Series last October.

“Boeing’s obsession with curbing what they call unfair government subsidies has a long history, and it’s likely to have a long future,” said Hayward, a fellow of the Royal Aeronautical Society. “I think on this particular issue it’s probably not dead but it’s on life support.”

Hayward said that the importance of the ITC decision could not be underestimated, as any Boeing appeal on this case could take years, by which time the climate of US protectionism instigated by President Donald Trump’s ‘America First’ stance could have changed.

Even if the ITC decision is reversed on appeal, it buys time for the C-Series to become established in the world market. “It’s a good aircraft,” said Hayward. “It’s the first that’s been designed specifically with low-cost carriers in mind.”