Today, U.S. Secretary of Commerce Wilbur Ross announced the affirmative final determinations in the antidumping duty (AD) and countervailing duty (CVD) investigations of 100- to 150-seat large civil aircraft from Canada.
“This decision is based on a full and unbiased review of the facts in an open and transparent process.” said Secretary Ross. “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.”
Commerce determined that 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.
As a result of today’s decisions, Commerce will instruct U.S. Customs and Border Protection to collect cash deposits from importers of 100- to 150-seat large civil aircraft based on the final rates.
Although Canadian civil aircraft subject to these investigations have not yet been imported into the United States, an April 2016 press release announcing the sale of Canadian civil aircraft to a U.S. airline valued the order to be in excess of $5 billion.
Bombardier, the Government of Canada, and Petitioners agreed that the proposed transaction between Bombardier and Airbus does not impact these investigations. The proposed transaction has yet to be finalized.
The petitioner is The Boeing Company (IL).
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.
Enforcement of U.S. trade law is a prime focus of the Trump administration. From January 20, 2017, through December 18, 2017, Commerce initiated 79 antidumping and countervailing duty investigations – a 52 percent increase from 52 initiations in the previous year. Commerce currently maintains 412 AD and CVD orders which provide relief to American companies and industries impacted by unfair trade.
If the U.S. International Trade Commission (ITC) makes affirmative final injury determinations, Commerce will issue AD and CVD orders. If the ITC makes negative final determinations of injury, the investigations will be terminated and no orders will be issued.
Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade laws and does so through an impartial, transparent process that abides by international law and is based solely on factual evidence.
Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to AD duties. Foreign companies that receive financial assistance from foreign governments that benefits the production of goods from foreign companies and is limited to specific enterprises or industries, or is contingent either upon export performance or upon the use of domestic goods over imported goods, are subject to CVD duties.