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Canada Disagrees With US Bombardier Anti-Dumping Duties

by Mike Godfrey, Tax-News.com, Washington

27 September 2017


Canada's Foreign Affairs Minister has said that the US Government's anti-dumping and countervailing duty investigations into imports of Canadian large civil aircraft are "clearly aimed at eliminating Bombardier's C Series aircraft from the US market."

Chrystia Freeland said that Canada "strongly disagrees" with the investigations, and stressed that the Government "will always defend Canadian companies and Canadian workers against unfair and costly protectionism."

On 26 September, the US Secretary of Commerce, Wilbur Ross, announced the preliminary determination in a countervailing duty investigation into 100- to 150-seat large civil aircraft from Canada. The US Government believes that exporters received countervailable subsidies of 219.63 percent.

The investigation was initiated following a complaint from Boeing. The Bombardier aircraft subject to the investigation have not yet been imported into the US. If and when Bombardier exports the planes from Canada to the US, US Customs and Border Protection will be required to collect cash deposits from importers of the aircraft, based on the preliminary subsidy rates.

The Department is scheduled to announce its final determination in this investigation on December 12. If it makes an affirmative determination on subsidization, and the US International Trade Commission does likewise, the Department will issue a countervailing duty order.

Ross commented: "The US values its relationships with Canada, but even our closest allies must play by the rules. The subsidization of goods by foreign governments is something that the Trump Administration takes very seriously, and we will continue to evaluate and verify the accuracy of this preliminary determination."

According to Freeland, "Components of the Bombardier C Series are supplied by American companies, directly supporting almost 23,000 well-paying jobs in many US states." She added that Boeing's petition is "threatening these US jobs."

Freeland said that the Canadian Government has "repeatedly raised this issue with key members of the US administration, with American elected officials, and with Boeing," and will continue to raise it at the highest levels.

Commenting on the Bombardier tax ruling, the Chief Executive of Northern Ireland Chamber of Commerce and Industry (NI Chamber), Ann McGregor said: "Northern Ireland Chamber of Commerce and Industry is bitterly disappointed that the US Department of Commerce has proposed a 220 percent import tariff on Bombardier. The Canadian aerospace company is a major contributor to the Northern Ireland economy and is the largest manufacturing employer in the region with a workforce of 4,100. A total of 1,000 work on the manufacture of the wings for the new CSeries aircraft and the company also employs many more in the supply chain. It is imperative that the British Government works to protect these vital jobs – the imposition of the tariffs could make Bombardier question remaining in Northern Ireland where it has operations in four locations."

TAGS: tax | anti-dumping | manufacturing | trade disputes | tax rates | Canada | United States | import duty | trade

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