U.S. launches trade probe into large civil aircraft from Canada

The U.S. Commerce Department on Thursday launched anti-dumping duty (AD) and countervailing duty (CVD) investigations against imports of large civil aircrafts from Canada.

The investigations were initiated following a petition filed by the Boeing Company seeking relief of planned imports of Canadian civil aircraft, the Commerce Department said in a statement.

The estimated dumping margin alleged by the petitioner for Canadian civil aircraft is 79.82 percent and the unfair subsidies are estimated to be 79.41 percent, according to the Commerce Department.

The U.S. International Trade Commission (ITC), another U.S. trade authority, is scheduled to make its preliminary inquiry determinations around June 12.

The probe will continue if the ITC determines that there is a threat of injury to the U.S. industries and its workforce by such imports.

While Canadian civil aircrafts subject to these investigations have not yet been imported into the U.S., a press release in April last year valued the order by a U.S. airline to be over 5 billion U.S. dollars, the Commerce Department said.

The probe comes after the Commerce Department decided last month to levy a 20 percent tariff on imports of Canadian softwood lumber. It is expected to escalate trade tensions between the United States and Canada, as they prepare for the renegotiation of the North American Free Trade Agreement (NAFTA) in the next few months.

The Trump administration on Thursday formally notified U.S. Congress of its intent to renegotiate the NAFTA, triggering a 90-day consultation period before the renegotiation can start. Endit