{"id":45263,"date":"2017-09-29T09:47:37","date_gmt":"2017-09-29T09:47:37","guid":{"rendered":"https:\/\/www.biphoo.com\/bipnews\/?p=45263"},"modified":"2017-09-29T09:47:37","modified_gmt":"2017-09-29T09:47:37","slug":"britain-may-fires-warning-to-boeing-over-bombardier-trade-dispute","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/business\/britain-may-fires-warning-to-boeing-over-bombardier-trade-dispute.html","title":{"rendered":"Britain May fires warning to Boeing over Bombardier trade dispute"},"content":{"rendered":"

Britain May fires warning to Boeing over Bombardier trade dispute<\/span><\/strong><\/span><\/h2>\n

Britain May fires warning to Boeing over Bombardier trade dispute: Prime Minister Theresa May told U.S. planemaker Boeing (BA.N) on Thursday that its behaviour in a trade dispute with Canada\u2019s Bombardier (BBDb.TO) was undermining its commercial relationship with Britain.<\/span><\/p>\n

May intervened in the trade row between Canada and the United States after a complaint by Boeing led to the U.S. Department of Commerce imposing a preliminary 220-percent duty on Bombardier\u2019s CSeries jets.<\/span><\/p>\n

The U.S. ruling puts as many as 4,200 jobs at risk at a plant in the British province of Northern Ireland, where the jets\u2019 carbon wings are made.<\/span><\/p>\n

\u201cWe have a long-term partnership with Boeing in various aspects of government and this is not the sort of behaviour we expect from a long-term partner and it undermines that partnership,\u201d May said in response to a question at a Bank of England event.<\/span><\/p>\n

Boeing, the world\u2019s biggest plane maker, has said it is committed to the United Kingdom.<\/span><\/p>\n

May\u2019s criticism of Boeing indicates the importance of the plant to the small Northern Irish political party on which her government has relied since she lost her parliamentary majority in June following a botched election campaign.<\/span><\/p>\n

Britain would nevertheless find it difficult to unpick its relationship with one of its most important defence equipment suppliers.<\/span><\/p>\n

May also needs U.S. President Donald Trump\u2019s support as Britain prepares to sever ties with the European Union. She has pitched a new trade deal with the United States to cushion the impact of leaving the EU\u2019s tariff-free single market.<\/span><\/p>\n

But May could find it difficult to convince Trump, who has made \u201cAmerica First\u201d a theme of his administration, to get a titan of U.S. industry to back off from defending what it views as its trade rights.<\/span><\/p>\n

May, who had raised the issue with Trump, said she would try to work with Canada to stress the importance of Bombardier to Northern Ireland.<\/span><\/p>\n

CONTRACTS<\/span><\/p>\n

Canada\u2019s Liberal government is refusing to go ahead with a planned purchase of 18 Boeing Super Hornet fighter jets until the U.S. company drops its challenge.<\/span><\/p>\n

\u201cWe can\u2019t do business with companies that treat us in this manner … we are actively looking at other options,\u201d Canadian Defence Minister Harjit Sajjan told reporters on Thursday.<\/span><\/p>\n

On Wednesday, Boeing said it had listened to Britain\u2019s concerns but gave no indication that it might change tack.<\/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

British defence minister Michael Fallon has also criticised Boeing. He 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

Boeing has risen since 2000 from a relatively minor defence supplier to become one of Britain\u2019s top five following the purchase of C-17 transporters and Apache attack helicopters, according to defence analyst Francis Tusa.<\/span><\/p>\n

Possibilities for reprisals are relatively limited in the short term but further ahead, potentially valuable requirements include the replacement of the Boeing-built Chinook helicopter.<\/span><\/p>\n

Britain could also consider moving lucrative maintenance and support work for the C-17 transport plane from the United States to Britain, he added.<\/span><\/p>\n

\u201cWhat is going to be fascinating is that the Bombardier case will open the eyes of senior service chiefs to the fact that Britain is less important to the United States,\u201d Tusa said.<\/span><\/p>\n

May\u2019s comments came in a question and answer session after she had delivered a robust defence of capitalism and free markets in a speech designed to halt the rising popularity of a more radical interventionist economic model espoused by her political opponents, the Labour Party.<\/span><\/p>\n

Labour said the trade dispute should be referred to the World Trade Organization, and criticised May for \u201cthreatening to victimise Boeing.\u201d<\/span><\/p>\n

Source:http:\/\/www.reuters.com\/article\/us-boeing-bombardier-may\/britains-may-fires-warning-to-boeing-over-bombardier-trade-dispute-idUSKCN1C313X<\/span><\/p>\n

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