U.S. Panel Says Bombardier Jet Sales Didn't Harm Boeing

In a setback for Boeing Co., a U.S trade panel Friday rejected the aerospace giant's complaint that it was harmed by subsidies provided to Bombardier Inc., effectively blocking a Trump administration proposal for steep tariffs against the Canadian jet maker.

The U.S. International Trade Commission, an independent body, rejected Boeing's claim that Montreal-based Bombardier had unfairly won the first U.S. sale of its new line of jets, to Delta Air Lines Inc., with illegal support from the Canadian government.

The 4-0 decision against Boeing is the latest twist in a long-running dispute between the U.S. and Canada involving the jetliner market and may help ease tensions between the two. The countries have been embroiled in cross-border trade spats over everything from lumber and dairy sales to the future of the quarter-century-old North American Free Trade agreement they share with Mexico.

Friday's decision means that the Commerce Department can no longer go forward with its proposal late last year to impose unusually steep duties of up to 300% on imports to the U.S. of the new CSeries jets made by Bombardier. Those fees could only be implemented if the trade panel concluded that Boeing faced serious harm from the Bombardier imports.

The trade panel members do not provide an immediate explanation for their votes. But the decision suggests the independent bipartisan commission could emerge as a check on the Trump administration as it seeks to use trade enforcement in an attempt to shield U.S. producers from foreign competition.

(END) Dow Jones Newswires

January 26, 2018 14:59 ET (19:59 GMT)