Bombardier turns to Europe in turbulent US trade row
By Robin Levinson-King
BBC News, Toronto
18 October 2017 From the section US & Canada
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Parts for Bombardier's C-Series planes are made in Belfast
Canadian company Bombardier has been a thorn in the side of UK Prime Minister Theresa May since the company became embroiled in a vicious US trade dispute. Could selling to Europe solve everyone's problems?
The last thing Mrs May needed on her plate was a trade dispute between two foreign governments causing an economic problem at home.
But that is almost exactly what happened.
In early October, a trade dispute between US airplane manufacturer Boeing and its rival, the Canadian company Bombardier, came to a head when the US Department of Commerce imposed a 300% tariff on Bombardier's flagship product, the CSeries jet.
Boeing complained that government subsidies had enabled its competitor to sell the CSeries jet for less than the cost to make it, giving the company an unfair competitive advantage.
The dispute was unsurprisingly big news in Canada, where local governments have sunk hundreds of millions of dollars into the success of the CSeries and the company's future.
But it also elicited a strong reaction in Northern Ireland, where the company builds the wings for the CSeries.
"It is a massive part of Northern Ireland's economy, it can not really be understated," says Andrew Webb, an economic analyst in Belfast for Webb Advisory.
The company currently employs about 4,100 people in Northern Ireland, and generates about £200m (C$329m; $264m) annually in earned income. About a quarter of Bombardier employees are working on the CSeries.
"The future of the CSeries will have a significant bearing on the future of Bombardier in Belfast," Mr Webb says.
The threats to the CSeries elicited cries of outrage from both leaders of DUP and Sinn Fein as well as the foreign affairs minister for the Republic of Ireland, who warned Washington the stiff duties could risk peace in Northern Ireland.
But a strong response also came from Mrs May herself, who phoned Donald Trump to discuss the issue.
Her defence secretary, Michael Fallon, has also warned Boeing its behaviour "could jeopardise" future defence contracts.
Bombardier on Monday night announced a deal with another rival, the European company Airbus.
Airbus will get a 50.01% stake in the CSeries, and in exchange, it will help get the plane to markets around the world.
The wings will still be made in Northern Ireland, but planes bound for US markets will be assembled at Airbus' US plant in Alabama, which could help the companies avoid US duties.
The deal has been heralded as a win-win for both the company and Belfast..
But in the long term, jobs in Northern Ireland may still be at risk if Britain cannot negotiate a trade deal before it leaves the EU, Mr McGuire says.
The deal between Bombardier and Airbus means that the future of one of the most important aerospace companies in the UK is now largely in the hands of a European company.
Airbus has factories all over Europe - including Wales - and if a trade deal with the EU cannot be reached, it could lead to questions as to whether it will continue production in the UK.
"Airbus' official line is it wants as frictionless trade as possible,"