Just as the UK did earlier, Canada is now also launching threats at the US for its legal decision to heighten the price of Bombardier jets with 300% when imported in the US.
Allow us to recap. Delta airlines ordered 75 passenger jets from Bombardier, which Boeing said were offered far under market price and heavily subsidized by the Canadian government. Boeing launched a complaint at the US commerce department which agreed, and they slapped a 300% import duty on those airplanes. The UK (which has a Bombardier factory in Northern Ireland) and Canada (Bombardier maker) are not too happy.
Of course allow us just to find it a bit weird that the UK and Canadian government feel that they have to intervene in a legal decision by the US with regards to one company (Bombardier) by threatening to scrap another company’s (Boeing) defense contracts.
Canadian Prime Minister Justin Trudeau said: “I highlighted to the president how we disagree vehemently with commerce’s decision to bring in countervailing and anti-dumping duties against Bombardier, that we feel this is not something that is warranted and quite frankly something that we look very negatively upon. The attempt by Boeing to put tens of thousands of aerospace workers out of work across Canada is not something we look on positively and I certainly mentioned that this was a block to us purchasing, making any military procurements from Boeing.”
In other words, Canada claims that Boeing’s complaint to the US commerce department will result in them “blocking” the Canadian Armed Forces from purchasing Boeing fighter jets.
Meanwhile in the UK, the government spokesman said: “As the prime minister said last week, we will continue to strongly defend UK interests in support of Bombardier at the very highest level because an adverse outcome risks jobs and livelihoods among the 4,200 skilled workers in Belfast. Boeing’s position in this case is unjustified and frankly not what we would expect of a long-term partner to the UK – as well as damaging the wider global aerospace industry.”
One has to look at the wider discussions here. Canada needs the US for its Nafta deal, so any threats it can make at this point are a plus for future trade negotiations, whereas the UK needs the US to grant it a trade deal after it steps out of the EU following Brexit.
President Trump is looking on and saying nothing at this point. The experienced businessman that he is, we are quite sure he will pick his moment wisely.