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Bombardier dispute puts Boeing's defence contracts at risk, says United Kingdom defence sec

Bombardier dispute puts Boeing's defence contracts at risk, says United Kingdom defence sec

Aiming to impose a 219.63% anti-subsidy duty on the Bombardier jets, the US Department of Commerce ruling was passed following a complaint lodged by Boeing accusing Bombardier of receiving undue state subsidies from the United Kingdom and Canada.

The decision is a victory for Chicago-based aviation giant Boeing, which said Bombardier used the subsidies to sell its C Series jets at artificially low prices.

Trudeau's remarks also highlighted an ongoing trade irritant between Canada and the United States.

On Wednesday, Freeland said she would call US Commerce Secretary Wilbur Ross to protest the tariff, and discuss Canada's next move with her British counterpart.

The Montreal-based aerospace company said Thursday it is prepared for an "absurd" anti-dumping duty after the Department of Commerce announced a almost 220 per cent countervailing duty. Because Boeing did not compete at Delta and because Boeing years ago abandoned the market the C-Series serves, there is no harm.

The U.S. Department of Commerce has proposed a 219 per cent duty on Bombardier's CSeries jets following a complaint filed by Boeing.

The UK government retaliated with a warning that future Boeing defence contracts with the UK were at risk over its stance in the Bombardier dispute.

The Prime Minister has echoed comments made by defence secretary Michael Fallon over the Bombardier tariff row with Boeing, saying today that the American firm was undermining its relationship with Britain.

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"We have had a long-term partnership with Boeing, worked with Boeing over the years, and I think this is no way to operate in terms of such a long-term partnership".

Bombardier has repeatedly rejected Boeing's claims, accusing its rival of pure hypocrisy after it alleged anti-competition practices in the sale of aircraft. "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". "C Series sales campaigns have likely stalled in the USA until a final ruling is made".

Speaking at a Bank of England event in London, May said she was disappointed at Boeing's behavior and is reported to have called her USA counterpart to discuss the matter.

She said later that evening: 'I will be doing everything I can - as the government has been - working with Arlene Foster and Michelle O'Neill, to ensure that we can try to make sure the future of Bombardier is protected'.

Bombardier Inc. spokesman Simon Letendre said Wednesday there would be no immediate effect from the ruling on Bombardier or its operations, including its 1,600-employee site in Wichita.

British and Canadian leaders have said the dispute would damage Boeing's chances to win defense contracts with their respective governments.

Canadian Prime Minister Justin Trudeau threatened to cancel a purchase of 18 Super Hornet jet fighters from Boeing in retaliation, and Philippe Couillard, premier of Quebec, where Bombardier is headquartered, said that his state had been "attacked" before going on to say, "Boeing may have won the battle but the war is far from over".