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September 26, 2017
U.S. imposes preliminary countervailing duty on Canadian planes
The United States' Department of Commerce announced on September 26 its affirmative preliminary determination in the countervailing duty investigation of imports of 100- to 150-seat large civil aircraft from Canada.
The Department calculated a preliminary subsidy rate of 219.63 percent. If and when the subject planes are exported to the United States, U.S. customs will require cash deposits in amounts equal to the preliminary subsidy rate.
After this preliminary stage, the investigation will continue and, should the Commerce Department make an affirmative final determination, and the U.S. International Trade Commission make an affirmative final that imports of aircraft from Canada threaten material injury to the domestic industry, the countervailing duties could become final.
The U.S. Government is also conducting an anti-dumping duty investigation, claiming that the same aircraft are sold in the U.S. below the "normal" price.
In a statement issued after the U.S. decision was announced, Canada's Minister of Foreign Affairs, Chrystia Freeland, said: "Canada strongly disagrees with the anti-dumping and countervailing duty investigations into imports of Canadian large civil aircraft."
"Our government has repeatedly raised this issue with key members of the U.S. administration, with American elected officials and with Boeing. We will continue to raise this at the highest levels."
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