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US slaps 220 percent duty on Canada's Bombardier jets
Associated Press ^ | Sep 26, 2017 10:05 PM EDT | Paul Wiseman and Rob Gillies

Posted on 09/27/2017 6:56:42 AM PDT by Olog-hai

The Commerce Department slapped duties of nearly 220 percent on Canada’s Bombardier C Series aircraft Tuesday in a victory for Boeing that is likely to raise tensions between the United States and its allies Canada and Britain.

Commerce ruled that Montreal-based Bombardier used unfair government subsidies to sell jets at artificially low prices in the U.S.

“The U.S. values its relationships with Canada, but even our closest allies must play by the rules,” Commerce Secretary Wilbur Ross said.

Canada responded by saying it “strongly disagrees” with the U.S. move. “This is clearly aimed at eliminating Bombardier’s C Series aircraft from the U.S. market,” said Chrystia Freeland, Canada’s minister of foreign affairs.

Bombardier, meanwhile, called the decision “absurd .… U.S. trade laws were never intended to be used in this manner, and Boeing is seeking to use a skewed process to stifle competition.” …

(Excerpt) Read more at hosted.ap.org ...


TOPICS: Business/Economy; Canada; Foreign Affairs; News/Current Events
KEYWORDS: bombardier; commercedepartment; nafta; subsidies; tariffs; winning
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To: Soul of the South

ping


21 posted on 09/27/2017 7:30:06 AM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: Olog-hai

Wow. 220% Don’t know what it will be, but Canada will strike back with additional tariffs of its own or actions against Boeing jets flying into Canada. This could be the beginning of a trade war.


22 posted on 09/27/2017 7:30:14 AM PDT by Truth29
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To: captain_dave

Not really. Canada provides direct subsidies to Bombardier, and that means Bombardier is not working with its own capital.

Boeing, on the other hand, does invest its own bucks for everything, from R&D to manufacturing, marketing and sales, to after sales support. . . Boeing has to bid with that cost lug riding on their books.

EDS tried to say that the US subsidizes Boeing because Boeing gets lots of US Government sales, but it is the commercial side that makes the big sales and carries the company, though the military side makes sporadic huge sales. . .and sometimes Boeing is funded for select R&D programs, meaning the government has a mission and needs a product, so they work with Boeing (and other major defense companies) to investigate the technology.

Bottom line; Boeing has to bid on all programs and do not receive subsidies from the government. In Canada, the Canadian government does subsidize not-so-much for R&D, but to reduce the cost lug of developing a product.


23 posted on 09/27/2017 7:31:17 AM PDT by Hulka
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To: Truth29
Wow. 220% Don’t know what it will be, but Canada will strike back with additional tariffs of its own or actions against Boeing jets flying into Canada. This could be the beginning of a trade war.

Not possible because of NAFTA. Besides WE ARE IN TRADE WAR NOW.

24 posted on 09/27/2017 7:31:39 AM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: null and void
Pretty close if info at this link is accurate.

Bombardier and Canada's corporate welfare trap

25 posted on 09/27/2017 7:34:16 AM PDT by mewzilla (Was Obama surveilling John Roberts? Might explain a lot.)
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To: Pearls Before Swine

See my link at reply #25 for info on the subsidy angle.


26 posted on 09/27/2017 7:35:59 AM PDT by mewzilla (Was Obama surveilling John Roberts? Might explain a lot.)
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To: captain_dave
I guess you've never heard of the Boeing 737?

Which is still in production....

27 posted on 09/27/2017 7:36:29 AM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: Olog-hai

It’s about time these and other foreign aircraft had a duty slapped on them. There is no such thing as free trade.


28 posted on 09/27/2017 7:37:30 AM PDT by backwoods-engineer (Trump won; we got Gorsuch and a bit of the MAGA agenda. But now the Swamp is back in control.)
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To: Pearls Before Swine; null and void
From February....

Federal government to give $372.5M in loans to Bombardier Montreal-based company has been requesting $1B in federal funding since 2015

29 posted on 09/27/2017 7:38:51 AM PDT by mewzilla (Was Obama surveilling John Roberts? Might explain a lot.)
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To: boycott

NB: Boeing does not have a comparable aircraft.


30 posted on 09/27/2017 7:39:45 AM PDT by jiggyboy (Ten percent of poll respondents are either lying or insane)
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To: mewzilla

I read the link. It mentions millions in Canadian government support, which justifies a tariff. But 220% is such a huge tariff, and the link you provided doesn’t give enough information on the size of the subsidies relative to Bombardier’s business, or at least its small jet business, to understand the size of an appropriate tariff.


31 posted on 09/27/2017 7:40:56 AM PDT by Pearls Before Swine
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To: boycott

Next up: Airbus.


32 posted on 09/27/2017 7:42:09 AM PDT by ex91B10
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To: ex91B10

Next up: Airbus.

If it’s not fair trade, I am all for it.

And I’ll admit that I am far from a Boeing fan. I believe they’re corrupt too.


33 posted on 09/27/2017 7:44:13 AM PDT by boycott
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To: mewzilla

Thanks!


34 posted on 09/27/2017 7:45:18 AM PDT by null and void (Because it's a firearms related word, I'm triggered by "trigger"...)
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To: Olog-hai

We need tariffs across the board for all products and all countries.

Use the tariff proceeds to cut taxes.


35 posted on 09/27/2017 7:48:02 AM PDT by DannyTN
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To: Truth29

We’ve had a trade war going on for many years. Finally We’re fighting back.


36 posted on 09/27/2017 7:54:14 AM PDT by crusher2013
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To: central_va

The C Series is focused on 100-145 seats. A review of the active fleet shows that the 100-130 seat segment has gone from 28% in 2000 of the market to 15% in 2016.

Next let’s look at the Boeing 737 fleet. The smallest model is the 737-700 which is to be replaced by the MAX7. The -700 seats 143 in the Southwest Airlines (NYSE: LUV) configuration. Southwest is the world’s largest -700 operator. Boeing is discussing plans with airlines to offer the MAX7 with 150 seats.

Delta pointed out in its reaction Boeing’s filing that they wanted a 100 seat aircraft. Boeing no longer makes such an aircraft

https://seekingalpha.com/article/4078416-boeing-vs-bombardier

Crony capitalism. They’re big on the Ex-Im bank too.


37 posted on 09/27/2017 7:55:11 AM PDT by jiggyboy (Ten percent of poll respondents are either lying or insane)
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To: Olog-hai

Get ready for much higher lumber prices and house prices now.


38 posted on 09/27/2017 8:38:26 AM PDT by ProtectOurFreedom
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To: ProtectOurFreedom
Get ready for much higher lumber prices and house prices now.

Hollow Free Traitor™ propaganda scare tactics.

39 posted on 09/27/2017 8:41:24 AM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: captain_dave
Bombardier makes small capacity planes and doesn’t directly compete with Boeing.

The new C class, which is what the tariff is about, is larger. 110 - 130 passengers. That competes directly with smaller Boeing 737s.

40 posted on 09/27/2017 8:46:49 AM PDT by jimtorr
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