United Kingdom government 'bitterly disappointed' by CSeries ruling

United Kingdom government 'bitterly disappointed' by CSeries ruling

The case has major implications for Bombardier as it could not only endanger its deal with Delta, but also hinder future sales in the US and hurt those aerospace companies that work with it.

But this would significantly depress the net amount Bombardier receives and could be seen as legitimizing Boeing's complaint on prices, which Bombardier has rejected.

Hours before the decision, Bombardier was left out in the cold when Germany's Siemens spurned it as a partner for a major rail merger in favor of France's Alstom. May has a key alliance with Northern Ireland's Democratic Unionist Party to support her minority government in Parliament.

The Department of Commerce says it will "instruct" United States customs authorities to collect cash deposits from importers of aircraft in this range based on the subsidy rate calculated - effectively trebling the price of the CSeries to USA customers.

"There are further steps that will follow", she said in a statement.

It's not yet clear what effect a ruling Tuesday evening will have on Bombardier, its C Series passenger jet program or the Canadian company's Wichita operations.

Bombardier's widely traded B shares dropped 10 percent to C$2.04 at 10:02 Toronto after sliding as much as 16 percent for the biggest intraday decline since October 2015.

THERESA May is "bitterly disappointed" after the U.S. slapped a tariff of almost 220 per cent on a new passenger jet manufactured in Northern Ireland.

The CBI in Northern Ireland has called for the restoration of the Northern Ireland government in order to protect those jobs under threat by the Bombardier ruling in the US.

US secretary of commerce Wilbur Ross said on Wednesday: "The US values its relationships with Canada, but even our closest allies must play by the rules. We will continue to work closely with the Canadian government to encourage all parties to reach a credible resolution as quickly as possible".

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Bombardier employs around 5,000 people at a plant in East Belfast and signed a 5.6 billion USA dollar deal previous year to provide up to 125 of its new C-Series aircraft to Atlanta-based Delta Airlines.

U.K. Defense Secretary Michael Fallon fired back on Wednesday by warning that the decision, which May had lobbied Trump on, could "jeopardize" future agreements with Boeing, Bombardier's USA -based rival. That decision is expected to be made next year.

But Ross Murdoch, of the GMB union, accused her of being "asleep at the wheel when she could and should have been fighting to protect these workers".

The grounds for Boeing's complaint focused on a £135 million investment by Northern Ireland's powersharing administration and the UK Government to establish the C-Series manufacturing site in Belfast. The aircraft entered commercial service past year in Europe.

A spokeswoman for Bombardier said: The magnitude of the proposed duty is absurd and divorced from the reality about the financing of multibillion-dollar aircraft programmes.

The latter had complained that the former had received unfair state subsidies from both the United Kingdom and Canada, helping it secure a major order.

Highlighting the upcoming role of USITC in determining whether Boeing suffered any harm from the C Series project, Bombardier claimed that Boeing had not even competed with it on the Delta Air Lines contract.

Bombardier called the ruling "absurd", saying that Boeing was attempting to use USA trade laws as part of an effort to "stifle competition", because it had made a "superior aircraft" that was more efficient and comfortable than its own offerings.

The Commerce Department is expected to decide by October 4 whether to also impose anti-dumping duties on the C Series.

However, for now all eyes will be on the US International Trade Commission (USITC), which will make its own decision on the matter in early 2018. "I'm having a hard time figuring out how Boeing was harmed by this".