U.S. to Continue Probe Into Canadian Jet Sales
June 09 2017 - 12:36PM
Dow Jones News
By Doug Cameron
U.S. trade officials said Friday that they would continue a
probe into alleged unfair price discounting of passenger jets by
Bombardier Inc., fueling a dispute that has riled the Canadian
government and threatens a big defense sale by Boeing Co.
The U.S. International Trade Commission voted to continue the
investigation triggered by Boeing's complaint that Bombardier had
engaged in predatory pricing in a sale of CSeries jets to Delta Air
Lines Inc., a charge the company denies.
The Commerce Department has previously said it could introduce
tariffs as soon as this year on the Bombardier CS100 jets if it
finds trade rules were broken.
Canada last week broke off talks with Boeing about the potential
purchase of 18 combat jets.
The Boeing charge has been widely criticized by many aviation
analysts as plane makers routinely sell initial aircraft at
below-cost prices to win market traction, while Bombardier is
offering a jet with little or no overlap to the U.S. company's own
products.
Bombardier has called for the case to be dismissed and said its
planes don't compete directly with the Boeing aircraft. Canada has
denied it provided Bombardier with illegal subsidies.
Write to Doug Cameron at doug.cameron@wsj.com
(END) Dow Jones Newswires
June 09, 2017 12:21 ET (16:21 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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