28 January, 2018
Canada's main stock index rose on Friday, led by shares in Bombardier Inc (BBDb.TO), which closed up more than 15 per cent after it won an unexpected trade victory against USA planemaker Boeing Co (BA.N).
That means the nearly 300 percent crippling duty imposed by the U.S. Department of Commerce will not be applied.
The ITC had widely been expected to side with Chicago-based Boeing, the world's largest maker of jet airliners, which accused Bombardier of dumping the planes, or selling them below cost, in the USA market.
Karl Moore, a business professor at McGill University said he thinks the plan to build C Series planes in the USA probably did play a role.
Bombardier insisted that Boeing faces no "threat of material injury" from C Series imports.
"We are frustrated that the International Trade Commission did not perceive the mischief that Boeing has experienced the billions of dollars in unlawful government appropriations that the Department of Commerce discovered Bombardier got and used to dump airplane in the USA little single-passageway plane market", Boeing said in an announcement.
The Chicago-based aviation giant also said it disagreed with the ruling and would continue to document cases of harm to its business by what it said was illegal subsidies and dumping behavior.
Theresa May pic in Davos on January 25 tweeted'I welcome this decision which is good news for British industry
Planemaker Bombardier Inc (BBDb.TO) is expected to lose a hotly contested US trade dispute this week, a Canadian government source told Reuters on Thursday, likely inflaming tensions between the two countries as they try to bridge differences in talks to modernize NAFTA.
"We always believed that the C Series, in order to reach its full potential, would need a very strategic partner and we do have a strategic partner in Airbus", he said.
"The ruling confirms the right of the Canadian and Quebec governments to engage in industrial policy to safeguard jobs and support high tech innovation", said Renaud Gagné, Unifor Quebec Director. Delta (DAL), which is the only USA airline to purchase the C series, also praised the decision. Its class B shares ended up more than 15% at C$3.34. While it's tempting to speculate on the reason or reasons for the ITC's decision, we'll have to wait another couple of hours to get the details.
The case came mostly in response to steep tariffs the Trump administration has levied on Canada's softwood lumber industry, which is vital to USA home building.
Typically, domestic industries seeking relief under these statutes (the U.S. Antidumping and Countervailing Duty laws) are successful because the evidentiary thresholds are so low. The Canadian company had argued that Boeing did not have a comparable plane to offer Delta. "The plane's going to be assembled in Alabama for the USA market, therefore it's creating American jobs", he said.
"The airline looks forward to introducing the innovative CS100 to its fleet for the benefit of Delta's employees, customers and shareowners", Delta said in a statement Friday.
"This was always a stretch in terms of Boeing's claims", said Alden.
Shares of leading state-run banks fall after recapitalisation plan
Bank will now have to be more careful about consortium borrower and all loans above Rs 250 crore will need special monitoring. Recapitalisation of banks under the PCA framework will allow them to reduce the NPAs as well as improve capital ratios.