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US Bombardier ruling: Theresa May 'bitterly disappointed' at Trump administration tariff decision | US Bombardier ruling: Theresa May 'bitterly disappointed' at Trump administration tariff decision |
(35 minutes later) | |
Prime Minister Theresa May is "bitterly disappointed'' by a US Department of Commerce decision to impose a tariff of nearly 220 per cent on a new model of passenger jet manufactured by Bombardier, one of Northern Ireland's biggest employers, Downing Street said. | Prime Minister Theresa May is "bitterly disappointed'' by a US Department of Commerce decision to impose a tariff of nearly 220 per cent on a new model of passenger jet manufactured by Bombardier, one of Northern Ireland's biggest employers, Downing Street said. |
The comment came after Ms May was accused of being "asleep at the wheel" as unions warned that thousands of jobs could be put at risk by the US move. | The comment came after Ms May was accused of being "asleep at the wheel" as unions warned that thousands of jobs could be put at risk by the US move. |
Canadian multinational Bombardier employs around 4,200 people in Belfast and thousands more jobs in Northern Ireland are supported through the manufacturer's supply chain, according to trade unionists. | Canadian multinational Bombardier employs around 4,200 people in Belfast and thousands more jobs in Northern Ireland are supported through the manufacturer's supply chain, according to trade unionists. |
Ms May had lobbied US President Donald Trump over the dispute, which was sparked by complaints from rival Boeing that Bombardier received unfair state subsidies from the UK and Canada, allowing the sale of airliners at below cost price in America. | Ms May had lobbied US President Donald Trump over the dispute, which was sparked by complaints from rival Boeing that Bombardier received unfair state subsidies from the UK and Canada, allowing the sale of airliners at below cost price in America. |
Bombardier vowed to fight the ruling which it described as "absurd". The company is due to start delivery of up to 125 new jets to Delta Airlines next year as part of a $5.6bn (£4.2bn) deal signed in 2016. | |
Union leaders slammed the prime minister for failing to do more to lobby for British workers. | Union leaders slammed the prime minister for failing to do more to lobby for British workers. |
GMB national officer, Ross Murdoch described the decision as a "hammer blow to Belfast" and accused Ms May of being "asleep at the wheel when she could and should have been fighting to protect these workers". | GMB national officer, Ross Murdoch described the decision as a "hammer blow to Belfast" and accused Ms May of being "asleep at the wheel when she could and should have been fighting to protect these workers". |
Jimmy Kelly, Unite regional secretary, said: “The decision taken by the US department of commerce was not unexpected - unfortunately it is unlikely to be overturned by president Trump whose protectionist tendencies are well-known. | Jimmy Kelly, Unite regional secretary, said: “The decision taken by the US department of commerce was not unexpected - unfortunately it is unlikely to be overturned by president Trump whose protectionist tendencies are well-known. |
“The threat of punitive tariffs on the C-Series will cast a shadow over Bombardier's future unless the company can source alternative and substantial sales outside the US market.” | “The threat of punitive tariffs on the C-Series will cast a shadow over Bombardier's future unless the company can source alternative and substantial sales outside the US market.” |
It is understood the Prime Minister raised the issue in a telephone call with US President Donald Trump earlier this month following presure from Democratic Unionist Party leader Arlene Foster, whose 10 MPs are propping up Ms May's minority government. | |
Mrs Foster said: “This is a very disappointing determination, but it is not the end of the process and there are further steps that will follow. | Mrs Foster said: “This is a very disappointing determination, but it is not the end of the process and there are further steps that will follow. |
“The C-Series is a hugely innovative aircraft that is vital to Bombardier's operations in Belfast. It is this innovation that sets the C-Series apart and it is not in direct competition with Boeing.” | “The C-Series is a hugely innovative aircraft that is vital to Bombardier's operations in Belfast. It is this innovation that sets the C-Series apart and it is not in direct competition with Boeing.” |
Bombardier's deal to supply billions of pounds worth of jets is in jeopardy after the US Commerce Department ruled that Bombardier received an unfair subsidy in the form of £135m investment pledge by the UK Government and Northern Ireland's power sharing administration. The firm also received $1bn from the Quebec government in 2015. | |
US authorities say this allowed Bombardier to supply aircraft at in implausibly low price of around £19m, making it impossible for Boeing to compete. Those aircraft will now cost around £61m once the interim tariff is applied. | |
US secretary of commerce Wilbur Ross said on Wednesday: “The US values its relationships with Canada, but even our closest allies must play by the rules. | |
“The subsidisation of goods by foreign governments is something that the Trump Administration takes very seriously, and we will continue to evaluate and verify the accuracy of this preliminary determination.” |