US Trade Commission Rejects Boeing Claim Against Canadian Plane Maker Bombardier

Bombardier ruling due Friday amid spate of US protectionism

Boeing also alleges that Bombardier is propped up by unfair government subsidies that allow it to undercut foreign competitors. The 100-seat CS100 is smaller than Boeing's smallest 737.

Boeing said in a statement that it was "disappointed" by the decision and "will review the Commission's more detailed opinions in full as they are released in the coming days". Its shares recovered after a small dip to close at $343.22. President Trump pulled out of the Trans-Pacific Partnership of 12 nations and threatened to withdraw from the North American Free Trade Agreement. The case raised hackles in the U.K.as well, with the government anxious about the potential fallout for a Bombardier factory in Northern Ireland. She tweeted Friday that the decision was "good news for British industry".

Boeing issued a harshly worded statement that suggested it could appeal the decision or launch a new petition.

An independent commission on Friday rejected proposed tariffs on imported Canadian aircraft, a reminder of the limits on President Trump's authority to reshape USA trading relationships with the world.

A bipartisantrade panel on Friday blocked the U.S. government's decision past year to impose almost 300 percent punitive tariffs on airplanes manufactured by Canada's Bombardier in a dispute that has inflamed relations with Ottawa.

The Canadian government told the commission that it can't side with Boeing's "unprecedented" argument because there is no evidence that any C Series planes will be imported into the United States because the planes destined for USA customers will be assembled in Alabama.

Analysts said Boeing's bid for help ultimatelyfell short because the company overreached, asserting an unsupported injury claim. Members of the trade panel didn't explain their votes but will do so in a report to be made public by March 2.

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"This is not the behavior we expect from Boeing and it could indeed jeopardize our future relationship with them", British Defense Secretary Michael Fallon said previous year.

"Today's decision is a victory for innovation, competition and the rule of law", Bombardier said in a statement.

Airbus took a majority stake in Bombardier's C-series passenger jet programme in October past year, which was hoped would help the jet programme overcome the tariff ruling. But Boeing challenged the sale aggressively, arguing that Canada, its province of Quebec, and the United Kingdom subsidized Bombardier with a combined $3 billion to sell planes at less than the cost to produce them. Boeing's counteroffer included used Embraer E190s and used Boeing 717s.

Boeing, the American aerospace giant, claims Canada's Bombardier unfairly benefited from government bailout subsidies.

The decision Friday is a significant blow to Chicago-based Boeing and gives an unexpected boost to Airbus, Boeing's rival in the commercial airline market.

The ITC is an independent commission, appointed by the government and evenly split between Democrats and Republicans, that is charged with investigating the effects on USA industry of dumped and subsidized imports.

"Whether you're sympathetic to Boeing or not, you have to admire the process", he said.

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