Government declares truce after Boeing says will not appeal trade ruling

pulse

March 23, 2018 6:36 PM

The government of Canada on Friday declared an end to its feud with Boeing after the US aircraft maker dropped its trade complaint against Canadian aerospace manufacturer Bombardier.

Foreign Minister Chrystia Freeland said in a statement the Boeing decision "represents a positive development in the long-standing relationship between Canada and Boeing."

Boeing said earlier that it would not appeal the US International Trade Commission's ruling in January rejecting Boeing's claim that rival Bombardier was dumping its new CSeries jetliners in the United States.

The accusation had resulted in tariffs of 300 percent being imposed on US imports of the aircraft, but the ITC decision that Boeing was not harmed by the sale of the 100- to 150-seat passenger aircraft to Delta Air Lines at a loss, effectively quashed the anti-dumping duties.

"The government of Canada is pleased that Boeing has decided not to appeal the unanimous ruling by the ITC," Freeland commented.

"This is good news for Canada's innovative aerospace industry and the thousands of people who depend on well-paying aerospace jobs on both sides of the border."

Also, Freeland added, "this ends litigation on the issue."

Ottawa had responded in December to the trade complaint against its top aerospace firm by scrapping a deal to buy 18 Boeing Super Hornets worth more than $5 billion, and barring it from bidding on a contract to replace Canada's entire fighter jet fleet.

Following the ITC decision, Ottawa softened its position and said it would allow Boeing to submit a bid.

Boeing would be one of five manufacturers (along with Dassault, Airbus, Saab and Lockheed Martin) invited to submit proposals in spring 2019 for an order of 88 advanced fighter jets, which are to be delivered starting in 2025.

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