Canada Warns It May Cancel F-18E Buy Over Bombardier Probe

Statement by Minister of Foreign Affairs on the U.S. Department of Commerce Initiation of Investigations Into Large Civil Aircraft from Canada

(Source: Global Affairs Canada; issued May 18, 2017)

OTTAWA, Ontario --- The Honourable Chrystia Freeland, Minister of Foreign Affairs, today issued the following statement:

“The aerospace industries of Canada and the United States are highly integrated and support good, middle class jobs on both sides of the border.

“We strongly disagree with the U.S. Department of Commerce’s decision to initiate anti-dumping and countervailing duty investigations into imports of Canadian large civil aircraft.

“Boeing’s petition is clearly aimed at blocking Bombardier’s new aircraft, the CSeries, from entering the U.S. market. 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 CSeries suppliers are based in the United States. Components for the CSeries are supplied by American companies, directly supporting high-paying jobs in many U.S. states, including Connecticut, Florida, New Jersey, Washington, New York, Ohio, Iowa, Kansas, Pennsylvania and Colorado.

“Canada is reviewing current military procurement that relates to Boeing.

“Our government will defend the interests of Bombardier, the Canadian aerospace industry, and our aerospace workers.”

(ends)

U.S. Department of Commerce Initiates Investigation of Imports of Civil Aircraft from Canada

(Source: US Department of Commerce; issued May18, 2017)

Today, U.S. Department of Commerce Secretary Wilbur Ross announced the initiation of new antidumping (AD) and countervailing duty (CVD) investigations to determine whether imports of 100- to 150-seat civil aircraft (civil aircraft) from Canada are being unfairly dumped in the United States, and whether Canadian producers are receiving alleged unfair subsidies.

The investigations were initiated following a petition filed by The Boeing Company on April 27 seeking relief of planned imports of Canadian civil aircraft.

“The U.S. market is the most open in the world, but we must take action if our rules are being broken” said Secretary Ross. “While assuring the case is decided strictly on a full and fair assessment of the facts, we will do everything in our power to stand up for American companies and their workers.”

If the Commerce Department determines that Canadian civil aircraft are being dumped into the U.S. market, and/or receiving unfair government subsidies -- and the U.S. International Trade Commission determines that dumped and/or unfairly subsidized Canadian imports of civil aircraft into the United States are causing harm to the U.S. industry -- then the Commerce Department will impose duties on those imports in the amount of the dumping and/or unfair subsidization found to exist.

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.

The estimated dumping margin alleged by the petitioner is 79.82 percent and the unfair subsidies are estimated to be 79.41. Commerce has initiated an investigation into 14 alleged subsidy programs.

Click HERE for a fact sheet on this trade case.

Next Steps:

During the Commerce Department investigations into whether Canadian civil aircraft are being dumped and subsidized, the U.S. International Trade Commission will conduct its own investigations into whether the U.S. industry and its workforce are being harmed by such imports. The ITC will make its preliminary determinations on or before June 12. If the ITC preliminarily determines that there is threat of injury then the Commerce Department investigations will continue, with a preliminary countervailing duty determination in July 2017, followed by a preliminary antidumping determination in October 2017, unless these deadlines are extended.

If the Commerce Department preliminarily determines that dumping or subsidization is occurring, then it will instruct U.S. Customs and Border Protection to start collecting cash deposits from all U.S. companies importing the subject civil aircraft from Canada.

Final determinations by the Commerce Department in these cases are scheduled for October 2017 for the countervailing duty investigation, and December 2017 for the antidumping duty investigation, but those dates may be extended. If either the Commerce Department does not find that products are being dumped or unfairly subsidized, or the U.S. International Trade Commission does not find in its final determination there is harm to the U.S. industry, then the investigations will be terminated and no duties will be applied.

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Canada Warns It May Cancel US Jet Buy Over Bombardier Probe (excerpt)

(Source: Associated Press; posted May 18, 2017)

By Rob Gillies

TORONTO --- Canada's government warned Thursday it could cancel a planned US$2 billion purchase of 18 Super Hornet fighter jets from Boeing Co. because of U.S. Department of Commerce anti-dumping investigations against Canadian plane maker Bombardier.

Foreign Minister Chrystia Freeland issued the threat in a statement about Boeing's complaint against Bombardier.

"Canada is reviewing current military procurement that relates to Boeing," Freeland said.

Boeing argued at a hearing in Washington on Thursday that duties should be imposed on Bombardier's new larger CSeries passenger aircraft, insisting it receives Canadian government subsidies that give it an advantage internationally.

Freeland said Boeing's petition is "clearly aimed at blocking Bombardier's new aircraft, the CSeries aircraft, from entering the U.S. market." She said the government strongly disagrees with the Commerce Department's decision to initiate anti-dumping and countervailing duty investigations. (end of excerpt)

Click here for the full story, on the US News & World Report website.

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