{"id":45150,"date":"2017-09-28T07:26:34","date_gmt":"2017-09-28T07:26:34","guid":{"rendered":"https:\/\/www.biphoo.com\/bipnews\/?p=45150"},"modified":"2017-09-28T07:26:34","modified_gmt":"2017-09-28T07:26:34","slug":"britain-warns-boeing-might-miss-business-bombardier-row","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/business\/britain-warns-boeing-might-miss-business-bombardier-row.html","title":{"rendered":"Britain warns Boeing it might miss out on business over Bombardier row"},"content":{"rendered":"

Britain warns Boeing it might miss out on business over Bombardier row<\/span><\/strong><\/span><\/h2>\n

Britain warns Boeing it might miss out on business over Bombardier row: Britain told U.S. planemaker Boeing on Wednesday that it could lose out on future British defense contracts because of its dispute with Canadian rival Bombardier which has put 4,200 jobs at risk in Northern Ireland.<\/span><\/p>\n

The U.S. Department of Commerce on Tuesday imposed a 220-percent duty on Bombardier\u2019s (BBDb.TO) CSeries jets, whose wings are made at a plant in Belfast, following a complaint by Boeing (BA.N) which accuses Canada of unfairly subsidizing Bombardier.<\/span><\/p>\n

The ruling is a political headache for Britain\u2019s minority Conservative government, which relies on support from a Northern Irish party to stay in power.<\/span><\/p>\n

It also undermines the government\u2019s assurances to Britons that free trade and London\u2019s close ties with Washington will be pillars of Britain\u2019s prosperity and global influence after it leaves the European Union in 2019.<\/span><\/p>\n

\u201cThis is not the behavior we expect from Boeing and it could indeed jeopardize our future relationship with them,\u201d British Defence Secretary Michael Fallon told reporters in Belfast.<\/span><\/p>\n

\u201cBoeing wants and we want a long-term partnership but that has to be two-way.\u201d<\/span><\/p>\n

Fallon later ruled out cancelling existing orders with Boeing for nine P-8 spy planes and 50 Apache helicopters, but added the U.S. firm was seeking other UK contracts.<\/span><\/p>\n

\u201cWe know they will be back at the door,\u201d he told Reuters.<\/span><\/p>\n

Bombardier is the largest manufacturing employer in Northern Ireland, which is the poorest of the United Kingdom\u2019s four parts and is mired in political difficulties after emerging from decades of armed sectarian conflict.<\/span><\/p>\n

\u201cBitterly disappointed by initial Bombardier ruling,\u201d said British Prime Minister Theresa May, who had personally asked U.S. President Donald Trump to help resolve the dispute.<\/span><\/p>\n

\u201cThe government will continue to work with the company to protect vital jobs for Northern Ireland,\u201d she said on Twitter.<\/span><\/p>\n

Boeing said in a statement it was committed to the UK, but gave no indication that it might change tack in the dispute.<\/span><\/p>\n

\u201cWe have heard and understand the concerns from the Prime Minister and the Government about Bombardier workers in Northern Ireland,\u201d the statement said.<\/span><\/p>\n

Boeing said that since 2011 it had tripled its spending in the United Kingdom to 2.1 billion pounds ($2.8 billion) in 2016, while the firm and its suppliers accounted for more than 18,700 UK jobs.<\/span><\/p>\n

\u201cDOES NOT BODE WELL\u201d FOR BREXIT<\/span><\/strong><\/span><\/p>\n

The row has come at a bad time for May, who was severely weakened by her party\u2019s poor showing in an election in June and who has been struggling to contain infighting within her top team over Brexit.<\/span><\/p>\n

Manufacturing Northern Ireland, an industry group, said the row was an ominous sign of the difficulties Britain could face after leaving the EU.<\/span><\/p>\n

\u201cWhat we could be witnessing is the fundamental difference between being a fully-fledged member of an internal market and a junior partner in a free trade agreement,\u201d it said.<\/span><\/p>\n

\u201cThis does not bode well for the UK\u2019s plan to be a leader in global free trade nor indeed ambitions of a free trade agreement with the EU which cannot match the benefit we currently enjoy as part of the EU\u2019s Single Market.\u201d<\/span><\/p>\n

At the Bombardier plant in Belfast, workers were nervous about what impact the dispute could have on their livelihoods.<\/span><\/p>\n

\u201cNobody knows how it will end up,\u201d said aircraft fitter George Burnside, 56, who has worked for Bombardier for 27 years. \u201cI am concerned. I was shocked at the size of the tariff.\u201d<\/span><\/p>\n

The U.S. penalty will only take effect if the U.S. International Trade Commission (ITC) rules in Boeing\u2019s favor. A final decision is expected early in 2018.<\/span><\/p>\n

British Business Secretary Greg Clark said he was confident the initial Department of Commerce ruling would be overturned.<\/span><\/p>\n

But Boeing conceded no ground, accusing Bombardier of illegally dumping its products in the U.S. single-aisle airplane market out of desperation.<\/span><\/p>\n

\u201cAny claimed economic threat to Bombardier is due to the weakness of its product in the marketplace,\u201d said Boeing.<\/span><\/p>\n

\u201cSABRE-RATTLING\u201d<\/span><\/strong><\/span><\/p>\n

Arlene Foster, leader of the DUP, the Northern Irish party that is propping up May\u2019s minority government, signaled she would put pressure on May to act.<\/span><\/p>\n

\u201cEveryone realizes how important Bombardier is to Northern Ireland and we will use our influence with our government to make sure that continues,\u201d she told Sky News.<\/span><\/p>\n

However, London\u2019s options in fighting Bombardier\u2019s corner may be limited because of the importance of Boeing to its defense industry.<\/span><\/p>\n

Boeing says the United Kingdom is its third largest supply base after the United States and Japan. It has recently begun constructing its first European parts manufacturing site in Sheffield, northern England.<\/span><\/p>\n

Britain\u2019s armed forces have deployed Chinook helicopters, the C-17 transport plane and the E-3 Sentry airborne early warning and command post.<\/span><\/p>\n

A UK defense official told Reuters one of the potential future contracts Boeing would be bidding for was a relatively small data services deal.<\/span><\/p>\n

British defense analyst Howard Wheeldon said it was unlikely that Britain would pursue any reprisals against Boeing.<\/span><\/p>\n

\u201cI think there is a lot of saber-rattling, but in practical terms it is not on,\u201d he said when asked whether Britain could cancel or reduce Boeing defense orders.<\/span><\/p>\n

\u201cThey can play politics, but can\u2019t actually walk away from what they need and have committed to buying from Boeing.\u201d<\/span><\/p>\n

Source:http:\/\/www.reuters.com\/article\/us-boeing-bombardier-britain\/britain-warns-boeing-it-might-miss-out-on-business-over-bombardier-row-idUSKCN1C20HH<\/span><\/p>\n

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