Boeing has succeeded in adding another 79.82% duties on C-Series aircraft from Bombardier claiming they’re being dumped into the United States and subsidised by Canada and Quebec. Boeing does not have a product that competes with the Bombardier C-Series, but has convinced US regulators that a much smaller Canadian company is going to destroy the US giant.
Boeing has claimed they’re preventing another Airbus rising up to destroy what was once a monopoly, and is now a duopoly. Maybe it was wrong for Canada to help Bombardier, maybe it was wrong for countless Canadian governments to allow our other aerospace companies to be destroyed. This is the Avro Arrow situation all over again, we cave in to Boeing’s pressure we become little more than a colony. We become the lesser partner in the Mercantile system, giving away resources and a nice captive market for inefficient industry.
Canada should cancel all contracts currently held by Boeing, ban all US manufacturers from bidding on the CF-188 Hornet replacement, and make the US put all its subsidies on the table in NAFTA talks. Boeing should be afraid of Bombardier, the Chinese, and the others coming for market share. Because Boeing is likely uncompetitive without the direct and indirect subsidies it receives in the United States. Add to the subsidies that Boeing is the second largest contractor to the US government, mainly because they’ve destroyed the competition.
Many of Boeing’s contracts don’t pass the smell test, as a search at the Project on Government Oversight finds. One example is in 2016 Boeing paid $18 million to settle claims it overcharged the US government. My search found ten pages of Boeing overcharging, receiving questionable contracts, and being paid for research the US government conducted. Boeing isn’t upset about subsidies to Bombardier, its upset they didn’t get any too.
The World Trade Organisation has ruled that some of Boeing’s subsidies are illegal. Maybe Canada should join those challenging America to play by the rules it helped create. There another ten pages of search results on the WTO site mentioning the Boeing Airbus dispute, both companies receive tax dollars so why shouldn’t Bombardier? The European Union arguments make Canadians look like amateurs when it comes to corporate welfare.
Boeing has a history of consuming competitors, the tariffs could be part of a strategy to buy Bombardier cheap. Boeing doesn’t have any products in that market, buy Bombardier and all that Canadian subsidised research is Boeings to exploit. Maybe if we provide tax rebates, grants, guaranteed purchases, interest free loans, and government employees to help with sales, Canada could keep one of the parts plants.