Conflict between the USA and Canada could cost 4,200 British jobs

BombardierBombardier's CS100 assembly line is seen at the company's plant in Mirabel, Quebec, Canada.(Ryan Remiorz/The Canadian Press via AP) (Ryan Remiorz/The Canadian Press via AP)

The USA may end up in a trade war with both Canada and the UK after imposing a 220% duty on Canadian Bombardier aircraft.

 

The US Department of Commerce believes the Canadian aircraft manufacturer receives unfair subsidies, and they thus sell their aircraft at artificially low prices in the United States. The decision is preliminary, and a final decision is expected in December.

Workplaces in Canada and the United Kingdom could be affected by the decision. The wings of the planes are made in Northern Ireland, where 4,200 workers in Belfast are at risk of losing their jobs. Several thousand are also employed in the chain of
subcontractors.

‘It’s extremely disappointing’, said British Prime Minister, Theresa May, on her official Twitter account. Canadian authorities said that they strongly disagree with the decision.

in April, the American competitor, Boeing, brought the case to the ministry. The company claimed that Bombardier have received a $3 billion in subsidies in the United Kingdom, Canada and Quebec province. Boeing believes their competitors last year sold 75 CS100 aircraft to Delta Air Lines for less than it cost to build the aircraft.

Delta pointed out that Boeing doesn’t even make 100-seater aircraft of the type the airline needs.

‘Boeing has no US-built product to offer since the company stopped production of its only aircraft of this size, the 717, more than ten years ago’, said the airline.

In early September, Canada’s Prime Minister, Justin Trudeau, threatened to stop a purchase of 18 F-18 fighter aircraft from Boeing.

 

© NTB Scanpix / Norway Today

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