In addition to the countervailing duties of 212,39%, the Commerce department has set anti-dumping duties of 79,82%, for a total of 292,21%.

Between the complaint of Boeing in April 2017 and the final decision of the u.s. department of Commerce, the height of penalties against Bombardier has changed, but also their composition. Result : Thursday’s announcement reminds us that the share allocated to the financial injection from Investissement Québec (IQ) in the CSeries program occupies much more space than at the beginning.

The documents released on Thursday by the u.s. government, which suggests a countervailing duty of 212,39 %, contain a breakdown of the complete liability that the Commerce department assigns them to various programs and levels of government.

In the complaint, Boeing eight months ago, where the Seattle-based company requested countervailing duties of 79.4 %, the capital injection of IQ in the CSeries program accounted for 19.9 per cent. In the papers of Thursday, that figure is 127,22 %.

“As in our preliminary determination [in September], we continue to believe that the CSeries program did not justify an investment in 2009, 2010 and 2012, as well as in 2015-2016 when the investment in capital IQ has been made,” said the Commerce department in its final decision.

In other words, the department of Commerce has estimated that a private investor would not have taken the same action that IQ in the circumstances of 2015, a year during which Bombardier has come close to bankruptcy. Investissement Québec has injected US $1 billion to take a 49.5 per cent of the CSeries program. This amount was paid in two tranches during the year 2016.

Ventilation

The” launch aid ” from the federal government worth it 28,99 % compared to 9,16 % for the québec government, and 28,36 % for those in the Uk, said the department. The tax credits from Quebec for the CSeries represent 9,68 %.

The department of Commerce has reminded that the investment made by the Caisse de dépôt et placement du Québec in the division of the rolling stock is not covered, because this injection is consistent with what a private investor would have been able to do in the ordinary course of business. The Fund has paid $ 1.5 billion for a stake of 30% in this division.

In the complaint filed by Boeing in April 2017, the company believed that the $ 1.5 billion from the pension Fund could justify countervailing duties of 29,84 %.

In addition to the countervailing duties of 212,39 %, the Commerce department has set anti-dumping duties of 79,82 %, for a total of 292,21 %. The folder is now in the hands of the international Commission of the United States trade, which will issue its final decision on 1 February.

After the decision Thursday, the government Couillard has indicated that it will make common front with Ottawa to bring the issue before the instances of the NAFTA and the world trade Organization (WTO). “Over the decades, we have built a business relationship which is profitable between Québec and the United States, and we intend to continue in this direction “, stated the minister of Economy, Dominique Anglade.

From the very beginning of the conflict between Boeing and Bombardier, Quebec city, Ottawa and the montreal company say that the money paid to Bombardier and the various programs are consistent with the rules of the WTO.

In a letter that Canada and the United Kingdom have sent to Boeing Monday, the two countries will remind the company of their desire to resolve this conflict as quickly as possible. “The position of Boeing is not the one we might expect from a long-term partner and trusted “, wrote the minister asked by chrystia Freeland and the british secretary for Trade, and Greg Clark.

Source: The Granby Times