Boeing Files Petition With Commerce Dept. Over Bombardier -- Update
April 27 2017 - 6:28PM
Dow Jones News
By Doug Cameron
Boeing Co. on Thursday called on U.S. trade officials to launch
a probe into the sales practices of Bombardier Inc. for its new
CSeries jet, which the U.S. aerospace giant said was being sold for
less than it cost to manufacture.
The move comes amid heightened trade tensions between the U.S.
and Canada, centered on the lumber and dairy industries, though its
unrelated to these issues, according to people familiar with the
timing.
Boeing filed a petition with the U.S. Commerce Department and
the International Trade Commission alleging Canadian state
subsidies created an unfair competitive threat to its own 737
passenger jets.
Brazil has also lodged a complaint with the World Trade
Organization over Canada's support for Bombardier, which competes
with plane maker Embraer SA.
Boeing wants the U.S. to impose antidumping duties on imports of
Canadian passenger jets. The International Trade Commission offers
a potentially quicker route than through the World Trade
Organization. The U.S. and the European Union have been embroiled
for years in disputes related to subsidies provided to Boeing and
Airbus SE.
"Boeing is asking the Department of Commerce and the ITC to take
action to end Bombardier's illegal and unfair business practices
before it is too late to prevent significant harm to America's
aerospace industry and thousands of good-paying aerospace jobs,"
said the U.S. company in a statement.
Boeing's move comes ahead of the delivery of CSeries jets to
Delta Air Lines Inc., the first U.S. customer. Delta last year
placed an order for 75 CSeries jets, providing the program with a
marque customer after years of sluggish sales. Delta didn't
immediately respond to a request for comment.
Boeing also said in its petition that Bombardier continues to
try to sell the jet to United Continental Holdings Co. even after
losing out to Boeing for a big order placed last year.
Bombardier said they are aware of the case and are currently
reviewing the filing, said company spokesman Simon Letendre.
"Bombardier structures its commercial dealings to ensure
compliance with the laws and regulations of the jurisdictions in
which we operate, including those issues raised by Boeing," Mr.
Letendre said.
David George-Cosh contributed to this article.
Write to Doug Cameron at doug.cameron@wsj.com
(END) Dow Jones Newswires
April 27, 2017 18:13 ET (22:13 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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