Britain's May warns Boeing of Bombardier trade dispute

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Europe

UK Prime Minister Theresa May told US plane maker Boeing on Thursday that its behavior in a trade dispute with Canada’s Bombardier was undermining its commercial relationship with the UK.

May intervened in the trade row between Canada and the US after a complaint by Boeing led to the US Department of Commerce imposing a preliminary 220-percent duty on Bombardier’s C Series jets.

The US ruling puts as many as 4,200 jobs at risk at a plant in the British province of Northern Ireland, where the jets’ carbon wings are made.

"We have a long-term partnership with Boeing in various aspects of government and this is not the sort of behavior we expect from a long-term partner and it undermines that partnership," May said in response to a question at a Bank of England event.

A combination photo of a Boeing 737 MAX and Bombardier's CS300 aircraft. /VCG Photo

Boeing, the world’s biggest plane maker, has said it is committed to the UK.

May’s criticism of Boeing indicates the importance of the plant to the small Northern Irish political party on which her government has relied since she lost her parliamentary majority in June following a botched election campaign.

The UK would nevertheless find it difficult to unpick its relationship with one of its most important defense equipment suppliers.

May also needs US President Donald Trump’s support as the UK prepares to sever ties with the EU. She has pitched a new trade deal with the US to cushion the impact of leaving the EU’s tariff-free single market.

But May could find it difficult to convince Trump, who has made "America First" a theme of his administration, to get a titan of US industry to back off from defending what it views as its trade rights.

May, who had raised the issue with Trump, said she would try to work with Canada to stress the importance of Bombardier to Northern Ireland.

Source(s): Reuters