Boeing war vs Bombardier innovation
Back from the brink of bankruptcy, Canadian aircraft manufacturer Bombardier has produced a fuel-efficient, comfort-enhancing aircraft that Delta wants to buy. This is Bombardier’s first entry into the mainstream air travel industry, presently dominated by U.S. monopoly producer Boeing.
Boeing does not produce a competitor to the 106-seat Bombardier CS-100 that Delta wishes to purchase for its secondary routes. Despite this, Boeing has petitioned the U.S. Department of Commerce (DOC) and the U.S. International Trade Commission to block the Delta purchase by means of anti-dumping duties and tariffs.
If successful, the Boeing petition would destroy Bombardier.
Cato trade analyst Daniel Ikenson powerfully criticizes Boeing’s petition. He outlines the damage that the Boeing war vs Bombardier innovation would cause to the U.S. airline industry and air travelers.
In a follow-up article, Ikenson reacts with astonishment to the DOC’s preliminary finding several days ago that a 300% tax should be imposed on Bombardier. His reaction appears under the headline “With Back-to-Back Bombshells, Trade Terrorism Hits the Global Aircraft Industry.”
Bombardier has factories in Canada, Northern Ireland, and the U.S. Theresa May, the U.K. prime minister, mindful that 4,000 jobs in Northern Ireland are at stake, along with political support from Northern Irleand’s Democratic Unionist Party (DUP), immediately threatened trade retaliation against Boeing and the U.S.
Canada’s reaction was also immediate and will be playing out further in NAFTA negotiations underway.
The Trump administration is also angling to impose a 35-50% U.S.-content requirement on NAFTA auto manufacturers. Representatives of the auto industry in all three NAFTA countries are strongly opposed.
U.S. farmers also fear that the Trump administration’s protectionist plans will damage not only their exports to NAFTA but worldwide.
Meanwhile Democrats are seeking to “outdo Trump on trade.”
President Trump has again put off his campaign promise to move the U.S. embassy from Tel Aviv to Jerusalem — to “give peace between the Palestinians and Israel” a chance. Trump’s announcement will likely have the opposite effect by giving new encouragement to Palestinian intransigence.
Turkey’s president Erdogan is holding a dozen U.S. citizens as hostages in an attempt to force the U.S. to return Fethullah Gulen to Turkey. But isn’t holding Americans as hostages what President Carter so foolishly suffered in Khomeini’s Iran?
Naomi Schaefer Riley has written a powerful book on Native American poverty– the worst in the U.S. — and how it has been shamefully abetted by U.S. government agencies and tribal leaders.
“ISIS Fighters, Having Pledged to Fight or Die, Surrender en Masse,” the New York Times reports. That the ISIS soldiers are surrendering to the Kurds rather than Shiite militias reproduces a similar phenomenon at the close of World War II, when German soldiers sought to surrender to their U.S. counterparts rather than the Russians.
Pinch yourself but it’s true: Ireland has just issued a commemorative stamp honoring Che Guevara.