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	Comments on: Aerospace conflict raises issues on competition and trade	</title>
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	<lastBuildDate>Wed, 11 Oct 2017 20:15:00 +0000</lastBuildDate>
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		By: beeville		</title>
		<link>https://tradeready.ca/2017/topics/import-export-trade-management/aerospace-conflict-raises-issues-competition-trade/#comment-293</link>

		<dc:creator><![CDATA[beeville]]></dc:creator>
		<pubDate>Wed, 11 Oct 2017 20:15:00 +0000</pubDate>
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					<description><![CDATA[So, let me get this straight...Boeing isn&#039;t worried about the CS100, but *is* worried about the CS300, which could easily bite into its B737MAX sales.   Boeing is also claiming harm from a contract upon which they did not bid; and Boeing is claiming unfair &#039;subsidization&#039; from the British and Canadian governments, despite the ENORMOUS tax break given to them by the State of Washington, which dwarfed the overall investments of the British and Canadian (Quebec) governments.

And, Boeing is claiming &#039;dumping&#039; of the &#039;first off the line&#039; Bombardier planes, after taking a predatory pricing stab at Bombardier with the dumping of 737-700s to United (allegedly discounting the purchase by 78% to incent United to cancel its C100 order). 

The aerospace industry has long had &#039;creative&#039; pricing and financing deals, given the capital expenditures required.  And, the aerospace industry worldwide has been the beneficiary of direct and indirect subsidies from governments; especially in the cross-subsidization of military projects.

The Canadian aerospace industry has been under attack by Boeing for over 60 years; and Americans must come to realize that the potential damage to US manufacturers of aircraft components (read Bombardier aircraft), is not insignificant; let alone to Bombardier operations in the US (+/- 7,000 employees; almost a quarter of its workforce.)

Make no mistake - the Boeing trade dispute has little to do with &#039;dumping and subsidies&#039;.  It has everything to do with protecting the viability of its 737 fleet, at whatever cost and by whatever means.

The threat to Bombardier is real - and, forgive me for saying, no Bombardier would mean Boeing would then have to deal with a much fiercer competitor, the Brazilian Government and its &#039;golden shares&#039; in Embraer.

It certainly won&#039;t turn against its Russian partner, the Sukhoi Superjet 100, which, to-date, has become the poster child for the heavily subsidized  PJSC United Aircraft Corporation (and designed to compete with Embraer and Bombardier regional jets).

Boeing, the company that has, in militaristic style, crushed its US competitors, only to acquire their remains, is now a multi-billion, vertically-integrated, monopolistic global behemoth.  And it obviously has it sight set on a higher concentration of market share, by the elimination of competition.  And it will use every trade agreement tool within its reach to do so.
Beware of the military-civilian-industrial complex....]]></description>
			<content:encoded><![CDATA[<p>So, let me get this straight&#8230;Boeing isn&#8217;t worried about the CS100, but *is* worried about the CS300, which could easily bite into its B737MAX sales.   Boeing is also claiming harm from a contract upon which they did not bid; and Boeing is claiming unfair &#8216;subsidization&#8217; from the British and Canadian governments, despite the ENORMOUS tax break given to them by the State of Washington, which dwarfed the overall investments of the British and Canadian (Quebec) governments.</p>
<p>And, Boeing is claiming &#8216;dumping&#8217; of the &#8216;first off the line&#8217; Bombardier planes, after taking a predatory pricing stab at Bombardier with the dumping of 737-700s to United (allegedly discounting the purchase by 78% to incent United to cancel its C100 order). </p>
<p>The aerospace industry has long had &#8216;creative&#8217; pricing and financing deals, given the capital expenditures required.  And, the aerospace industry worldwide has been the beneficiary of direct and indirect subsidies from governments; especially in the cross-subsidization of military projects.</p>
<p>The Canadian aerospace industry has been under attack by Boeing for over 60 years; and Americans must come to realize that the potential damage to US manufacturers of aircraft components (read Bombardier aircraft), is not insignificant; let alone to Bombardier operations in the US (+/- 7,000 employees; almost a quarter of its workforce.)</p>
<p>Make no mistake &#8211; the Boeing trade dispute has little to do with &#8216;dumping and subsidies&#8217;.  It has everything to do with protecting the viability of its 737 fleet, at whatever cost and by whatever means.</p>
<p>The threat to Bombardier is real &#8211; and, forgive me for saying, no Bombardier would mean Boeing would then have to deal with a much fiercer competitor, the Brazilian Government and its &#8216;golden shares&#8217; in Embraer.</p>
<p>It certainly won&#8217;t turn against its Russian partner, the Sukhoi Superjet 100, which, to-date, has become the poster child for the heavily subsidized  PJSC United Aircraft Corporation (and designed to compete with Embraer and Bombardier regional jets).</p>
<p>Boeing, the company that has, in militaristic style, crushed its US competitors, only to acquire their remains, is now a multi-billion, vertically-integrated, monopolistic global behemoth.  And it obviously has it sight set on a higher concentration of market share, by the elimination of competition.  And it will use every trade agreement tool within its reach to do so.<br />
Beware of the military-civilian-industrial complex&#8230;.</p>
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