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U.S. Trade Agency Backs Boeing Against Bombardier

U.S. Trade Agency Backs Boeing Against Bombardier

09/27/2017

 By Doug Cameron 

U.S. officials ruled Tuesday that Bombardier Inc. illegally underpriced a big sale of commercial jetliners in a move that adds to a simmering trade spat with Canada.

Boeing Co. lodged an official complaint in April alleging Bombardier used predatory pricing to sell its new CSeries jets to Delta Air Lines Inc. last year, and said the program benefited from unfair state subsidies.

The International Trade Commission ruled in favor of Boeing's claims on the jet pricing despite vehement denials from Bombardier and Canadian officials.

The commission hasn't determined final remedies after the verdict, which is subject to appeal. These are likely to include a tariff on the price agreed between Bombardier and Delta.

"The Commerce Department will instruct U.S. Customs and Border Protection to collect cash deposits from importers of 100- to 150-seat large civil aircraft based on these preliminary rates," the department said in a statement.

Canada has already frozen talks on a potential multibillion deal to buy Boeing-made combat jets because of the Bombardier issue, and the trade ruling comes as talks continue between the U.S., Canada and Mexico over the future of the North American Free Trade Agreement.

The U.K. government had called on Boeing and the U.S. to drop the action, fearing it could affect jobs at a Bombardier facility in Northern Ireland.

Write to Doug Cameron at doug.cameron@wsj.com

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