"...the real risk of injury in this case is (...) future innovation" - Boeing is abusing trade laws to harm its competition - Bombardier
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by Darryl Jenkins | Jul 30, 2017, 12:01 AM
Far from being damaged by alleged dumping, Boeing is misusing legal trade remedies to damage Bombardier's ability to serve the smaller passenger craft market. That may be a good strategy to protect Boeing's bottom line, but consumers are the big losers.
For years the Canadian company Bombardier has endeavored to design and build a state-of-the art, single-aisle passenger aircraft. With its C Series, it looks as though it has succeeded, which is good news for the flying public and airlines. Boeing, however, is not happy.
After Delta Airlines placed an order for 75 of Bombardier's new C Series, Boeing charged Bombardier with unloading the planes in the U.S. at below-cost prices. In fact, it has now asked the U.S. International Trade Commission to lay anti-dumping and countervailing duties against the C Series.
To prevail, Boeing must show it has been injured by unfair trade practices. But the real risk of injury in this case is not to Boeing, which earned record profits per share in the second quarter and has increased its yearly earnings forecast, but to consumers and to future innovation.
Bombardier's new C Series represents a real step-change for passengers...