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Yesterday, the U.S. Department of Commerce made final determinations in the antidumping duty (AD) and countervailing duty (CVD) investigations of 100- to 150-seat large civil aircraft from Canada. According to the department, exporters from Canada sold 100- to 150-seat large civil aircraft in the United States at 79.82 percent less than fair value. Commerce also determined that Canada is providing unfair subsidies to its producers of 100- to 150-seat large civil aircraft at a rate of 212.39 percent. The AD and CVD laws provide U.S. businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of dumping unfairly priced and unfairly subsidized imports into the United States.
Based on the decision, the Commerce Department has instructed U.S. customs and border protection agency (CBPA) to collect cash deposits from importers based on the final rates. The determination was came based on an investigation filed on a petition from Boeing. The investigation was triggered by a dispute between American Boeing and Canadian Bombardier. The United States has not imported any Canadian civilian aircrafts but the determination is likely to affect a $5 billion deal concluded back in 2016.
The statement from the department, quoted Commerce Secretary Wilbur Ross saying, “This decision is based on a full and unbiased review of the facts in an open and transparent process….The United States is committed to a free, fair, and reciprocal trade and will always stand up for American workers and companies being harmed by unfair imports.”
The United States under the Trump administration continues to take a tough stance on malpractices in trade. From January 20, 2017, through December 18, 2017, Commerce initiated 79 antidumping and countervailing duty investigations, a 52 percent increase from the previous year.
