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US authorities to deliver verdict on Bombardier-Boeing trade dispute Belfast workers 'holding their breath' for verdict in Bombardier trade dispute
(35 minutes later)
US authorities are due to deliver their verdict on a trade dispute between rival plane makers Bombardier and Boeing, the repercussions of which could put at risk about 4,000 jobs in Northern Ireland. Unions said Bombardier’s workers in Belfast were “holding their breath” as they await the verdict of US authorities on a trade dispute between the Canadian firm and its rival plane maker Boeing, the repercussions of which could put at risk about 4,000 jobs in Northern Ireland.
American firm Boeing alleged in April that Canada’s Bombardier received unfair state subsidies from Canada and the UK, allowing it to sell its C-Series passenger jets to US airline Delta at below cost. The US Commerce Department is expected to announce its decision on Tuesday, after American firm Boeing alleged in April that Bombardier received unfair state subsidies from Canada and the UK, allowing it to sell its C-series passenger jets at below cost in the US.
Bombardier has rejected the allegations.Bombardier has rejected the allegations.
Should Boeing win, Montreal-based Bombardier faces a potentially large fine which could put at risk the Delta order and the C-series programme. Should Boeing win, Montreal-based Bombardier faces a potentially large fine which could put at risk a major order from US airline Delta and the wider C-series programme. Last year Delta made a $5.6bn (£4.2bn) order for up to 125 of the jets.
The wings for the C-series aircraft are made at Bombardier’s plant in east Belfast, and the UK government and trade unions are fearful that defeat for company could put in doubt the future of its Northern Ireland operation. The wings for the C-series aircraft are made at Bombardier’s plant in east Belfast, and the UK government and unions are fearful that defeat for the company could put in doubt the future of its Northern Ireland operation.
Bombardier employs about 1,000 people in Belfast linked to the C-series, and about 4,000 people in total in Northern Ireland. The programme is also crucial to 15 smaller aerospace firms in Northern Ireland, which make components for the wings. Bombardier employs about 1,000 people in Belfast linked to the C-series, and about 4,000 people in total in Northern Ireland. The programme is also crucial to 15 smaller aerospace firms in the region which make components for the wings.
Last year Delta made a $5.6bn (£4.2bn) order for up to 125 of the jets. This month it emerged that Theresa May had raised concerns about the potential implications for UK jobs of a Boeing victory during a telephone conversation with the US president, Donald Trump.
Earlier this month it emerged Theresa May had raised concerns about the potential implications for UK jobs of a Boeing victory during a telephone conversation with the US president, Donald Trump. Unite, the UK’s largest union, accused Boeing of “corporate bullying”.
Boeing lodged the complaint in April and it is being considered by two US government agencies, the Department of Commerce and the US International Trade Commission (USITC). “Workers in Belfast are holding their breath,” said Tony Burke, Unite’s assistant general secretary, speaking at the Labour party conference in Brighton.
The Department of Commerce is expected to rule on Tuesday whether Bombardier received unfair subsidies or is selling planes at below cost. If it rules against Bombardier, it will be up to USITC to decide whether it has resulted in damage to Boeing’s business. “The prime minister and the government need to make it clear to Trump they will not stand back and watch our members’ jobs and our communities threatened like this. Mrs May needs to stand up for our members in the aerospace industry and for decent jobs and for manufacturing in the UK.”
Boeing’s allegations are being considered by two US government agencies, the Department of Commerce and the US International Trade Commission (USITC).