The Canadian government is currently holding a tender, for fighter jets, worth between C$15 billion and $C19 billion.
As per a statement made by a Boeing’s spokesman, the airplane maker will not go on appeal against the U.S. trade commission’s ruling which allows Canada’s Bombardier Inc to sell its newest jets to U.S. airlines without heavy duties.
This decision puts Bombardier’s trade challenge to Boeing to rest.
According to an official from the Canadian government, who spoke on the condition of anonymity, Boeing’s decision was “good news”.
In January, the U.S. International Trade Commission (ITC) had unanimously ruled in favor of Bombardier while rejecting Boeing’s complaint and scrapped a decision by the Commerce Department to slap a near 300% duty on sales of the 110-to-130-seat Bombardier CSeries jets for five years.
The ITC stated, it rejected the U.S. Commerce Department’s arguments to slap close to 300% duty on Bombardier CSeries jets since Boeing had not lost any sales or revenues following the placement of orders of CSeries jets by Delta Air Lines Inc in 2016.
According to the ITC’s ruling, Bombardier’s 110-seater CSeries jets ordered by Delta Airlines do not compete with Boeing’s smallest 737 MAX 7 airplanes.
Boeing’s spokesman declined to elaborate on the decision not to appeal.
It is to be seen how Boeing’s decision will impact its trade relationship with the Canadian government, which is holding a tender for fighter jets worth between C$15 billion and $C19 billion.
Bombardier’s spokesman was not immediately available to comment.