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Bombardier and Boeing urged to find settlement in trade dispute | |
(about 3 hours later) | |
Two rival aerospace firms have been urged by the government to negotiate a deal in a trade dispute that threatens manufacturing jobs in Belfast. | |
Canadian firm Bombardier is to find out if it will suffer financial penalties over a trade dispute with Boeing. | |
Boeing alleges Bombardier got unfair state subsidies from the UK and Canada. | Boeing alleges Bombardier got unfair state subsidies from the UK and Canada. |
Northern Ireland Secretary James Brokenshire said the government's support of Bombardier did not constitute unfair support. | |
He was speaking after meeting members of the trade union, Unite, in Belfast ahead of a decision on the complaint from the US Commerce Department. | |
The American firm's complaint, lodged in April, claimed Bombardier was selling its C-Series jet below cost in the United States. | |
Financial penalties could be imposed, which would deal a blow to Bombardier. | Financial penalties could be imposed, which would deal a blow to Bombardier. |
They could potentially jeopardise a major order made last year from US airline Delta - a $5.6bn (£4.15bn) deal for up to 125 of the jets. | They could potentially jeopardise a major order made last year from US airline Delta - a $5.6bn (£4.15bn) deal for up to 125 of the jets. |
About 1,000 jobs at the company's Belfast operation are linked to the C-Series. | About 1,000 jobs at the company's Belfast operation are linked to the C-Series. |
The company - which bought Short Brothers in 1989 - is one of Northern Ireland's most important employers. | The company - which bought Short Brothers in 1989 - is one of Northern Ireland's most important employers. |
The US trade investigation to which Bombardier is being subjected is a complex, multi-stage process. | The US trade investigation to which Bombardier is being subjected is a complex, multi-stage process. |
It involves the interplay of two government agencies, the Department of Commerce and the US International Trade Commission (USITC). | It involves the interplay of two government agencies, the Department of Commerce and the US International Trade Commission (USITC). |
The USITC effectively ruled there was an arguable case against Bombardier, moving the complaint to the next stage. | The USITC effectively ruled there was an arguable case against Bombardier, moving the complaint to the next stage. |
Now, it is up to the Department of Commerce to make a preliminary finding on whether Bombardier has in fact received subsides, or is selling below cost. | Now, it is up to the Department of Commerce to make a preliminary finding on whether Bombardier has in fact received subsides, or is selling below cost. |
Read more: Bombardier-Boeing dispute explained | Read more: Bombardier-Boeing dispute explained |
Prime Minister Theresa May raised concerns about the possible implications of the ruling in a telephone call with President Donald Trump earlier this month. | Prime Minister Theresa May raised concerns about the possible implications of the ruling in a telephone call with President Donald Trump earlier this month. |
The government and trade unions fear it might even make Bombardier question remaining in Northern Ireland, where it employs 4,100 people in four locations. | The government and trade unions fear it might even make Bombardier question remaining in Northern Ireland, where it employs 4,100 people in four locations. |
The wings of the C-Series are made at a purpose-built £520m factory at Queen's Island. | The wings of the C-Series are made at a purpose-built £520m factory at Queen's Island. |
The programme is not just important to Bombardier jobs in Belfast, but also 15 smaller aerospace firms in NI - and dozens more across the UK - which make components for the wings. | The programme is not just important to Bombardier jobs in Belfast, but also 15 smaller aerospace firms in NI - and dozens more across the UK - which make components for the wings. |
The Northern Ireland Executive and UK Government pledged to invest almost £135 million in the establishment of the C-Series manufacturing site. | The Northern Ireland Executive and UK Government pledged to invest almost £135 million in the establishment of the C-Series manufacturing site. |
The programme received £750m from Quebec's provincial government in 2015 when its fortunes appeared to be ailing. | The programme received £750m from Quebec's provincial government in 2015 when its fortunes appeared to be ailing. |
Delays and cost over-runs in bringing the passenger plane to market almost bankrupted Bombardier, which has had to axe jobs worldwide as part of a survival plan. | Delays and cost over-runs in bringing the passenger plane to market almost bankrupted Bombardier, which has had to axe jobs worldwide as part of a survival plan. |
The Department of Commerce could announce a preliminary tariff on the C-Series, raising the cost of importing the plane to the United States. | The Department of Commerce could announce a preliminary tariff on the C-Series, raising the cost of importing the plane to the United States. |
That should not have a huge immediate practical impact as it will be the spring of 2018 before Bombardier delivers any C-Series to Delta, its US customer. | That should not have a huge immediate practical impact as it will be the spring of 2018 before Bombardier delivers any C-Series to Delta, its US customer. |
If the finding does go against Bombardier, the investigation moves to the next stage, with attention switching back to the USITC for its final ruling. | If the finding does go against Bombardier, the investigation moves to the next stage, with attention switching back to the USITC for its final ruling. |
The role of the USITC at this stage is to assess if damage has been caused to a US company, in this case Boeing, as a result of the subsides or below cost selling. | The role of the USITC at this stage is to assess if damage has been caused to a US company, in this case Boeing, as a result of the subsides or below cost selling. |
This verdict, due to be delivered in February 2018, will be the key one. | This verdict, due to be delivered in February 2018, will be the key one. |
But even that may not be the end of the process. | But even that may not be the end of the process. |
USITC determinations can be appealed to the US Court of International Trade or, as this is a case involving Canada, to a disputes panel of the North American Free Trade Agreement (Nafta). | USITC determinations can be appealed to the US Court of International Trade or, as this is a case involving Canada, to a disputes panel of the North American Free Trade Agreement (Nafta). |
Ultimately the government of Canada could pursue a case against the US at the World Trade Organisation. | Ultimately the government of Canada could pursue a case against the US at the World Trade Organisation. |