U.K. Prime Minister Theresa May finds herself at a crossroads. On the one hand, the conflict between Boeing and Bombardier constitutes a commercial matter and she has little control over it. On the other hand, a solution to this problem will bring her more political influence. As a result, May turned to the President of the United States to settle this issue once and for all.
Boeing Opened a Commercial Matter with Bombardier over Unfair Commercial Prices
Boeing Co. and Canada-based Bombardier Inc are currently involved in a lawsuit as conflicting sides. The former wants the U.S. International Trade Commission to add more taxes for its main industry rival. The pretext is that Bombardier affords to offer brand new C series Jets at an extremely low price judging from what the market has to offer at this point.
The Canadian company can afford such competitive strategies thanks to a government support that stretches over $149 million. The financial aid has the form of a loan received from the British government. As a result, the court commission sided with Boeing in July.
However, the ruling wasn’t clear enough on the indemnification Bombardier has to settle. A further eventual report is scheduled for September 25. The document will probably contain sanctions against the Canadian company.
Theresa May Intends to Persuade the Two Companies to Avoid the Services of the Court and Negotiate the Case by Themselves
Nonetheless, Theresa May seeks a different solution to this issue. The British political leader intends to protect jobs at Bombardier plant in Belfast, Northern Ireland. This way, she is going to ensure votes from the Democratic Unionist Party in Northern Ireland to pass her legislations through the House of Commands.
“Our priority is to encourage Boeing to drop its case and seek a negotiated settlement with Bombardier.”
Therefore, she had a phone call with Donald Trump on September 5 regarding this commercial matter. The U.K. Department for Business claimed that the British government looks to dissuade Boeing from following up with its case. If charges are dropped, May would instead persuade Bombardier to request a negotiated settlement and skip the punitive court decisions.
Image source: 1