Bombardier VP slams Boeing after 'absurd' U.S. ruling
It was a big blow for Bombardier — and a big win for Boeing.
The two aerospace companies are locked in a bitter trade dispute. And on Tuesday, the U.S. Department of Commerce sided with Boeing — and imposed high tariffs against its Canadian competitor.
Olivier Marcil is the Vice-President of External Affairs at Bombardier. He spoke to As It Happens host Carol Off about the proposed tariff and why he thinks Boeing's allegations are hypocritical.
Mr. Marcil, how would you characterize this decision on the part of the U.S. government concerning Bombardier's CSeries planes?
It's an absurd decision. When you look at the proposed duty that has been suggested, it's completely divorced from the reality about multi-billion dollar aircraft programs. It's a very complex product. You cannot evaluate their lifespan the same as you do for any other product that the department has looked at over the last couple of years.
This is the 219 per cent tariff that they are going to put on the planes. Boeing had asked for a 79 per cent tariff applied to the CSeries. Would you have accepted any level of tariff given the charges against Bombardier?
So what do you think Boeing is attempting to do? What do you think the game is?
I think they made it very, very clear. They don't want to have another competitor on their turf. They are literally using the process to stifle the competition in their favour and prevent U.S. airlines to benefit from the CSeries.
Boeing says you are able to sell these planes at a discount to Delta because of government subsidies that you get. The federal government has given your company a $372.5 million interest-free loan. The Quebec government has invested a billion dollars in [CSeries]. So, is that not a subsidy?
But we heard from the Premier of Quebec, Philippe Couillard, in a press conference today. He said, "had there not been that investment from Quebec, we would not be here today, because there would not be a CSeries and probably there would not be a Bombardier aeronautics." So, doesn't that say, "bail out?"
First of all, it's clear that two years ago we were in a difficult situation. It's not a secret. But the question is not about if Quebec was right or wrong to intervene. The question is, "Does Canada have a right to support public policy and strategic industry? Yes or No?" It's a question that's been asked all around the world in every country and we're confident that at the end of the day, when we go through all this process, with the recourse we have, we're going to win this fight.
The federal government is threatening to cut off the purchase of Super Hornet planes that we would make, a multi-billion sale from Boeing, if they pursue this gambit. Do you think that's a good thing?
Well, what Boeing is doing is an attack on the Canadian economy. You know, at the end of the day, what it shows is that this fight is not good for anybody. [With] CSeries, half of the components are American. We're talking about 22,000 jobs in the U.S. that are attached to the CSeries if you go across the supply chain. So, we all have an interest to find an exit to this fight.
This interview has been edited for length and clarity. For more on this story, listen to our full interview with Olivier Marcil and our follow-up interview with Conversative Member of Parliament, Maxime Bernier, which you can find below.
After our interview with Olivier Marcil, Carol spoke to Maxime Bernier. The Conservative Member of Parliament explained why he is putting the blame squarely on the Canadian government.