Boeing and Bombardier appeared in a hearing before the United States International Trade Commission as part of their ongoing trade dispute over C Series on December 18, 2017.

Boeing is currently locked in a legal battle against its Canadian rival Bombardier. The US plane maker launched its dispute earlier in 2017, alleging that the Canadian government is illegally subsidizing Bombardier’s C Series commercial airliner program and that the planes are being sold in the US at “absurdly low” prices, referring to Delta Airlines (DAL) and Bombardier deal for C Series planes.

Boeing has already convinced the government to impose a 300% trade duties on C Series planes in the United States. Bombardier denies the allegations and awaits the decision by the US ITC on whether the tax obligation will come into force.

In relation to the ITC hearing, Boeing released a statement claiming that “Bombardier’s illegal business practices with its C Series aircraft […] have harmed US domestic industry”. The company states that it brought the case in order to seek enforcement of the US trade law, which “mirrors the widely-accepted rules of international trade adopted by most WTO member nations, including Canada”.

Boeing also claims that it is “established beyond question” that Bombardier’s C Series program was “illegally” subsidized by the Canadian government with “billions of dollars”. “The C Series would not even exist at this point but for those subsidies”, the US company states.

It also adds that “Bombardier used these government funds to dump aircraft into the US market at absurdly low prices, millions below their cost of production and millions below the price of the same aircraft in Canada. Bombardier’s conduct is flatly inconsistent with US trade law, and it has caused severe harm to Boeing, its employees, and its suppliers”.

Boeing asserts that is welcomes competition and sees no problem with Bombardier selling the aircraft “anywhere in the world”, but demands compliance with trade rules and law.

Bombardier denies harming Boeing business as “Boeing has acknowledged that it has oversold its 737 production capabilities and has a backlog of more than 4,300 aircraft orders,” the company notes in an official press release. It highlights the manner in which Bombardier benefits US market, including the planned manufacturing facility construction in Alabama, 400-500 additional jobs to the current 22 700, and, ultimately, providing “the US airlines with a US-built plane”.

The Canadian plane maker also refers to Delta’s order of C Series and notes that its US rival “did not compete in the Delta campaign. It has not made a plane sized to Delta’s needs for many years, since it stopped producing the 717 and 737-600”.

“We are very pleased with the evidence presented today by Bombardier, Delta, and others demonstrating that Boeing’s petition is an unfounded assault on airlines, the flying public, and the U.S. aerospace industry,” Mike Nadolski, Vice President Communications and Public Affairs is quoted in the Bombardier’s statement. “That has been true since the start of the investigation, and recent developments make it even clearer”.