Trump and Trudeau discuss Bombardier-Boeing trade row

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12 Oct, 2017

Trump and Trudeau discuss Bombardier-Boeing trade row

Canadian Prime Minister Justin Trudeau has come to the defence of Bombardier after he told President Donald Trump that he vehemently disagrees with a US decision to impose hefty tariffs on Canada’s aerospace giant.

Earlier this year, the much larger US aerospace company Boeing accused Bombardier of receiving unfair subsidies from Canada and the UK. They also accused Bombardier of using those subsidies to fund the production of its C-series jets and selling them into the US market at as much lower cost.
Bombardier disputes the claim and denies any wrongdoing, stating that the subsidies received were perfectly legal.

However, despite this, a subsequent investigation saw the US Department of Commerce impose a 300% tax on Bombardier’s C-series commercial aircraft.

As well as threatening jobs in Canada, the tariff hike is also causing grave concern for around 4,000 employees at Bombardier’s plant in Belfast. Parts of Bombardier’s C-series (such as the wings) are made in Northern Ireland.

On Wednesday, Prime Minister Trudeau jumped to the defence of Bombardier when he met with President Trump at the White House. After their meeting, Trudeau said that he told Trump that the decision by US authorities to impose a 300% import tax was "not something that is warranted and something we look very negatively upon".

He also said that the decision was a block to Canada making any military purchases from Boeing in the future until such an issue has been resolved.

"I highlighted to the president how we disagreed, vehemently, with Commerce's decision to bring in countervailing and anti-dumping duties against Bombardier," Trudeau told reporters outside the White House.

It remains to be seen on whether or not Trudeau’s meeting with Trump will have any impact on the final decision, which is expected to take place early next year.

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