US International Trade Commission (ITC) ruling
The report welcomes the International Trade Commission’s
decision that ruled out high tariffs on Bombardier aircraft
and urges the Government to take steps to prevent a repeat
situation for UK businesses.
Boeing's complaint
In the ruling, published in January, the US International
Trade Commission (ITC) stated that imports of Bombardier
C-Series jets did not harm, or threaten to harm, the US
domestic industry. Boeing had alleged that the aircraft was
given an uncompetitive marketplace advantage due to subsidies
from the UK and Canadian Governments. An earlier judgement in
the case from the US Department of Commerce threatened to
impose tariffs of 292%.
Government must continue to protect Bombardier’s
Northern Ireland operations
The Government must maintain pressure on Boeing, who are yet
to indicate if they will appeal the ITC decision. The
Government must be proactive and continue to protect
Bombardier’s Northern Ireland operations from punitive
action. Existing Government contracts with Boeing should be
reviewed and past behaviour taken into account when bidding
takes place for future contracts.
Call for the Government to conduct audit
Detailed commentary on the ITC’s decision has not yet been
made public. It is unclear whether the ITC considered UK and
Canadian government support of Bombardier to be in
contravention of WTO rules, and may have only ruled that
Boeing did not suffer direct harm. In light of this, the
Committee has called on the Government to conduct an audit of
all Repayable Investment Loans it has made to UK companies
and risk assessments made, particularly where companies have
business in the US market.
The Committee praised the work done by so many to make the
case for Bombardier, and support its staff, including the UK
government, politicians throughout Northern Ireland and trade
unions. These interventions were all the more important given
the absence of the Executive. It is vital the UK Government
continues to work with Bombardier, and partners including
Invest NI and the Department for the Economy, to create the
optimum conditions for the Airbus venture, and protect high
skilled jobs in Northern Ireland.
Chair's comment
Committee Chair MP commented:
"Thankfully the right decision has been made on punitive
tariffs. It’s such a relief for workers and the
Northern Ireland economy but we are left wondering about
the needless damage Boeing’s flimsy claims might have
caused.
The Government must ensure that UK based businesses are
watertight against such speculative action in the
future, UK workers cannot become collateral in
disputes between multi-nationals.
When spurious complaints like Boeing’s can mean months of
uncertainty for UK workers, the Government must be robust.
If companies are willing to take action that directly harms
the UK economy and, potentially, security they should
expect a frosty reception when tendering for contracts.
Finally, a big well done to those who fought tirelessly to
protect vital jobs in Northern Ireland."
