DOC Determines Canada Sold Large Civil Aircraft at Less than Fair Value

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Imports, Public Policy

The U.S. Department of Commerce. qingwa/Adobe Stock

The U.S. Department of Commerce ruled Wednesday, Dec. 20, that Quebec-based Bombardier sold 100- to -150-seat large civil aircraft at less than fair value in the U.S., and also benefited from unfair government subsidies.

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“This decision is based on a full and unbiased review of the facts in an open and transparent process.” Commerce Secretary Wilbur Ross said in a prepared statement. “The United States is committed to a free, fair, and reciprocal trade and will always stand up for American workers and companies being harmed by unfair imports.”

The Department of Commerce determined that exporters from Canada sold the aircraft at 79.82% less than fair value and that Canada is providing unfair subsidies to producers of the aircraft at a rate of 212.39%.

The ruling makes for a big win for Boeing, the petitioner in the case.

It has been a busy year for the Department of Commerce. In its releases announcing trade cases throughout 2017, the department has touted the significant uptick in anti-dumping or countervailing duty cases taken up compared with last year.

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From Jan. 20 until Dec. 18, the department launched 79 anti-dumping and countervailing duty investigations. That total amounts to a 52% increase from last year’s total during the same time period, the department release announcing the Bombardier ruling stated.

The United States International Trade Commission (ITC) is scheduled to make its final determinations on or about Feb. 1, 2018.

If the ITC makes affirmative final determinations that the imports of aircraft from Canada “materially injure, or threaten material injury to, the domestic industry,” the Department of Commerce will issue anti-dumping and countervailing duty orders. If the ITC makes negative determinations of injury, however, the investigations will be terminated.

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