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27/01/2018

Trump Tariff Against Aircraft Imports Revoked By U.S. Commission In Favor Of Bombardier




Trump Tariff Against Aircraft Imports Revoked By U.S. Commission In Favor Of Bombardier
Airplane maker Bombardier winning a legal battle in the U.S. has had a significant impact in far way in Northern Ireland where apparently thousand of jobs have been saved. The law suit that the plane maker won was related to the repealing of import tariffs for the C-series planes of the company.
 
The Trump administration had proposed to impose a tariff of 292 per cent but the proposal was overturned by the US International Trade Commission (ITC) which unanimously voted against Boeing and in favour the Canadian rival Bombardier.
 
Trump’s proposal was against the expectations of the U.K. government as well as those of the trade unions in Northern Ireland. The role and importance of Bombardier for the economy of Northern Ireland was stressed by British prime minister Theresa May to U.S. president Donald Trump at their meeting at the World Economic Forum in Davos.
 
There were allegations against Bombardier by Boeing to the U.S. authorities that the Canadian company was selling its C-series jets well below its production costs to Delta and that it was also receiving subsidies from the UK and Canadian government that were deemed to be illegal. But the commission voted against Boeing with a 4-0 vote against the appeal. 
 
Bombardier was imposed the tariff after a ruling was won by Boeing in the US. A number of U.S. airlines buys planes from the Canadian company.
 
“Today’s decision is a victory for innovation, competition and the rule of law. It is also a victory for US airlines and the US travelling public,” Bombardier said. “The C-series is the most innovative and efficient new aircraft in a generation. Its development and production represent thousands of jobs in the United States, Canada and the United Kingdom.
 
“We are extremely proud of our employees, investors and suppliers, who have worked together to bring this remarkable aircraft to the market. With this matter behind us, we are moving full speed ahead with finalising our partnership with Airbus.
 
“Integration planning is going well and we look forward to delivering the C-series to the US market so that US airlines and the US flying public can enjoy the many benefits of this remarkable aircraft.”
 
After the ITC’s decision May said: “I welcome this decision, which is good news for British industry.”
 
Business secretary Greg Clark added: “The decision by the International Trade Commission confirms what the UK and Canadian governments working hand in hand has maintained from the outset, that this case is unjustified.”
 
Workers were “jubilant” over the ruling, said the Unite union in Northern Ireland.
 
“Bombardier workers in Northern Ireland and throughout the supply chain in the UK will be breathing a huge sigh of relief that the International Trade Commission has seen though Boeing’s baseless complaint. When the going got tough, Unite did not thrown in the towel. Our members and shop stewards redoubled their efforts in bringing pressure to bear on politicians in Washington, Westminster, Brussels and Northern Ireland,” said Steve Turner, a Unite assistant general secretary, Steve Turner, a Unite assistant general secretary.
 
(Source:www.theguardian.com)

Christopher J. Mitchell

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