If the ITC sides with Boeing, as it has so far, it could effectively keep US airlines from using Bombardier's CSeries jet by imposing duties of almost 300 percent, one of the largest ever imposed for a market-based economy, Boeing said.
"As a result of its exhaustive investigation, the Commerce Department has calculated a final duty determination of 79.82% to be imposed on each Bombardier C Series aircraft and partially-assembled aircraft imported into the United States as a result of dumping, and an additional 212.39% duty due to evidence of foreign government subsidization".
United States secretary of commerce Wilbur Ross has found in favour of United States-based manufacturer Boeing in a dispute over aircraft sales.
Airbus, Boeing's European rival, reached a deal with Bombardier in October to purchase a 50.01 per cent stake in the C Series commercial jet and plans to build an assembly line in Alabama for American customers while maintaining the primary line in Mirabel, Que.
Bombardier argued Boeing's large 737 order book shows there has been no adverse impact from its CSeries jet and that the US planemaker does not manufacture a jet that competes with the new model. Boeing, Bombardier and Delta presented arguments to the ITC this week. Boeing alleged that Bombardier sold the planes below cost and received unfair subsidies from Canada's government.
Delta CEO Ed Bastian told Business Insider in a recent interview that the C Series plane is already made with at least 50 percent US parts and moving its assembly to Alabama would boost that percentage up to about 60 percent.
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"Unfortunately, the decision of the Department of Commerce is divorced from this reality and ignores commercial practices of the aeroespacial industry, including the launching price and the financing of multimillion airplane programmes", Bombardier said in a statement.
There is more information on the U.S. department of commerce decision here.
Delta is expected to wait for that new plant to open before taking delivery of their order.
Boeing says the CSeries benefited from hundreds of millions of dollars in launch aid from the governments of Canada and Britain and a $1 billion equity infusion from the province of Quebec.
US and Mexican trade officials will meet next month in Canada to continue NAFTA talks. Boeing suffered another setback last week when Delta announced it was ordering 100 Airbus planes to renew its narrow-body fleet in a move that analysts viewed as a snub of Boeing over the case.