U.K.'s May warns Boeing that Bombardier dispute 'undermines' 80-year old partnership
By Sara Sjolin, MarketWatch
Dispute could jeopardize U.S.-U.K. trade deal
The row between the U.K. and Boeing Co. escalated on Thursday, with British Prime Minister Theresa May threatening to stop ordering planes from the U.S. aerospace giant.
Speaking at the Bank of England's 20-year anniversary event, the U.K. leader expressed disappointment over the dispute that has been going on since Boeing (BA) complained that Canada's Bombardier Inc. (BBD.A.T) has received illegal state aid to keep prices low. The row has put more than 4,000 Bombardier jobs in Northern Ireland at risk.
The U.S. International Trade Commission on Tuesday ruled that it would slap a 220% tariff (http://www.marketwatch.com/story/us-to-impose-220-tariff-on-new-jets-from-canadas-bombardier-2017-09-26) on the cost of Bombardier CSeries jets sold to the U.S. The decision came after Boeing last year complained to the authorities that Bombardier received unfair subsidies from the Canadian government when it sold 125 planes to Delta Air Lines Inc. (DAL) at a big discount.
Read:Delta Air CEO tells CNBC the new tariff plan on Bombardier jets is 'absurd' (http://www.marketwatch.com/story/delta-air-ceo-tells-cnbc-the-new-tariff-plan-on-bombardier-jets-is-absurd-2017-09-27)
Wings for the CSeries jets are made in Northern Ireland, where Bombardier is the largest manufacturing employer. May has asked U.S. President Donald Trump to intervene in the dispute, and the tariff decision is now seen as denting hopes of a post-Brexit free trade deal between the U.K. and U.S.
Allie Renison, head of EU and trade policy for the Institute of Directors, told the Telegraph newspaper (http://www.telegraph.co.uk/news/2017/09/27/theresa-may-threatens-us-withtrade-war-bombardier-row/) that it's "unhelpful news at the moment given the U.S. is meant to be our first port of call for trade."