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Published: Mon, May 01, 2017
Economy | By Melissa Porter

Boeing seeks United States anti-dumping probe against CSeries jet

Boeing seeks United States anti-dumping probe against CSeries jet

Boeing Co. accused Bombardier Inc. of selling C Series passenger jets in the U.S.at "absurdly low" prices, adding a new salvo to an increasingly tense trade relationship between the USA and Canada.

It issued a statement saying that it complies with the laws that Boeing cites and points out that any action against it would hurt its USA supplier base.

"Bombardier has embarked on an aggressive campaign to sell CSeries aircraft into the US market at absurdly low prices - less than $20 million for airplanes that cost $33 million to produce, based on publicly available information", Boeing said in an emailed statement.

"Bombardier has a long history of relying on government subsidies to compete in the marketplace, but the subsidies for its C Series program dwarf all those Bombardier has received previously", said Boeing. "We can't disclose the actual price because it's confidential, but it's not $19.6 million". Canada has vowed to fight any trade actions by the United States.

According to Boeing, Bombardier "has embarked on an aggressive campaign to sell C Series aircraft into the U.S. market at absurdly low prices - less than $20 million for airplanes that cost $33 million to produce, based on publicly available information".

The request by Boeing comes in the same week that the Trump administration imposed duties on Canadian lumber, charging that those companies also receive unfair government subsidies.

"Evidently taking a page out of the Airbus strategy book, Bombardier has blatantly and intentionally demonstrated its goal of muscling its way into the USA aviation market by offering its heavily subsidized planes at cut-rate pricing", the US company said. A 100-seater lists for $79.5 million while a 150-seat variant goes for $89.5 million.

The government said Bombardier works with more than 2,000 suppliers headquartered in states across the USA, generating thousands of well-paid, high-tech American jobs. Discounts from catalog prices are customary in the industry.

Boeing said Bombardier was able to offer the rock-bottom pricing because of government assistance. Less than a year later the Canadian federal government agreed to grant Bombardier C$372.5 million in interest-free loans for both the C Series and the Global 7000 business jet.

Quebec Economy Minister Dominique Anglade said in a statement that her government would defend "the commercial partnership concluded with Bombardier" for a $1 billion injection in the CSeries.

A Commerce Department spokesman said the petition would be given "a thorough review" and further comment was premature.

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