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What do you make of this?

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tosca1

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Last night, they'd announced that Bombardier is going to partner with Airbus. Today, we found out the following:

Trudeau called Trump to inform him about this deal.

The deal wasn't official yet (as of that time). I don't know if it is by now.

--------------------

So, if the deal wasn't officially approved by the government yet, why did Trudeau call Trump about it?
 
tosca1 said:
Last night, they'd announced that Bombardier is going to partner with Airbus. Today, we found out the following:

Trudeau called Trump to inform him about this deal.

The deal wasn't official yet (as of that time). I don't know if it is by now.

--------------------

So, if the deal wasn't officially approved by the government yet, why did Trudeau call Trump about it?
Click to expand...

There are three issues here, 1) the tariff we put on this new plane from Canada 2) Bombardier is out of money, they JUST barely had enough to get this plane in production 3) I have heard that it is a pretty OK plane and that there is a chance it could sell.

Trudeau calling was the right thing to do, one gentleman calling another trying to make sure that everything is understood and that no problems are created unnecessarily.
 
Step one - Change the name. Bombardier? Really? Really.
 
KevinKohler said:
Step one - Change the name. Bombardier? Really? Really.
Click to expand...

Bombardier is a very respected company that doesn't just make planes, they make snowmobiles and other equipment.
 
longview said:
I suspect the call to Trump was to make sure Airbus can screw us the way Honda and Toyota do.
https://www.theguardian.com/business/2017/oct/17/bombardier-airbus-deal-jobs-belfast-boeing-c-series
The two companies hope to circumvent the 300% import tariff by assembling the
C-Series passenger jets destined for US customers at Airbus’s factory in Alabama.
Click to expand...

Paying American employees and American companies to build planes destined for American use is better than a tariff by far.
 
PirateMk1 said:
Paying American employees and American companies to build planes destined for American use is better than a tariff by far.
Click to expand...
Fair enough, but not as good as have both manufacturing and assembling done here.
 
tosca1 said:
Last night, they'd announced that Bombardier is going to partner with Airbus. Today, we found out the following:

Trudeau called Trump to inform him about this deal.

The deal wasn't official yet (as of that time). I don't know if it is by now.

--------------------

So, if the deal wasn't officially approved by the government yet, why did Trudeau call Trump about it?
Click to expand...

Airbus is in the midst of a continuing massive bribery scandal in which they won deals against Boeing by bribing decision makers. I think this deal should be blocked till this has been clear up, fines have been paid, the board has faced court and Boeing has been compensated. This is one of the many methods germany uses to gain non tariff trade advantages illegally.
 
It's kinda what good trade partners do, especially when companies from their countries are in a big brawl.

Or, just Canadian politeness, could be that too...sorry... ;)
 
PirateMk1 said:
Bombardier is a very respected company that doesn't just make planes, they make snowmobiles and other equipment.
Click to expand...

I believe they sold the snowmobile business.
 
If it isn't even official yet (and you call Trump about it).....it's almost like Trudeau was "running things by" Trump to see what he thinks about it......
 
Lord Tammerlain said:
About 50% of the parts for that plane were made in the US
Click to expand...
Thats better than nothing.
From what I have heard companies like Toyota and Honda, paid almost no corporate income tax in the US,
because the cost of the imported parts, plus the cost of assembly equaled the sales price of the car.
The profit was all made in Japan on the cost of the parts, which had much lower import duties that assembled vehicles.
 
longview said:
Thats better than nothing.
From what I have heard companies like Toyota and Honda, paid almost no corporate income tax in the US,
because the cost of the imported parts, plus the cost of assembly equaled the sales price of the car.
The profit was all made in Japan on the cost of the parts, which had much lower import duties that assembled vehicles.
Click to expand...
Apple is even better at not paying US income taxes
 
Lord Tammerlain said:
Apple is even better at not paying US income taxes
Click to expand...
The point is that we have many companies who have figured out loopholes in our corporate tax code.
I think Trump is trying to close some of those loopholes, and create an environment where the loopholes are not necessary.
Lowering the corporate tax rate means that companies will no longer have to contort themselves to avoid the 35% tax rate.
 
longview said:
The point is that we have many companies who have figured out loopholes in our corporate tax code.
I think Trump is trying to close some of those loopholes, and create an environment where the loopholes are not necessary.
Lowering the corporate tax rate means that companies will no longer have to contort themselves to avoid the 35% tax rate.
Click to expand...

They didn't figure out loopholes they had them created.
 
tosca1 said:
If it isn't even official yet (and you call Trump about it).....it's almost like Trudeau was "running things by" Trump to see what he thinks about it......
Click to expand...

I imagine it was meant more as a **** you.
 
longview said:
I suspect the call to Trump was to make sure Airbus can screw us the way Honda and Toyota do.
https://www.theguardian.com/business/2017/oct/17/bombardier-airbus-deal-jobs-belfast-boeing-c-series
The two companies hope to circumvent the 300% import tariff by assembling the
C-Series passenger jets destined for US customers at Airbus’s factory in Alabama.
Click to expand...

Alabama is getting manufacturing jobs by way of subsides from Quebec and Canada, don't look a gift horse in the mouth.

I hope at least some of the manufacturing is done in Quebec and some is done in Alabama, which would somewhat fair in this situation.

https://www.canadianmanufacturing.c...mixed-feelings-bombardier-airbus-deal-203111/

Because otherwise Canadian tax dollars went to create jobs solely in Alabama, that's a kick in the teeth to Canadian tax payers and workers.
 
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Carjosse said:
Welcome to the world of global competition.
Click to expand...

The competition is fine, but our our own rules do not need to burden the US companies greater than
those from elsewhere.
 
longview said:
The competition is fine, but our our own rules do not need to burden the US companies greater than
those from elsewhere.
Click to expand...

What rules are you talking about? Boeing says its unfair that Bombardier gets subsidies from Canada and the UK, but how many subsidies does Boeing get from the US? No body follows the rules.

Man, just be happy that Quebec tax dollars created some jobs in Alabama, that is a gift at this point.
 
Looks like the long arm of WTO might also snag Airbus!
Bombardier might still be facing the same trouble! :mrgreen:


The WTO Decision against European Subsidies

In June of 2010 the WTO ruled in favor of the United States on 80% of the total alleged subsidy amounts, and in May of 2011 a WTO appellate panel upheld all of the key findings of the earlier panel.

The WTO ruled that Airbus had received $18 billion of illegal subsidies, including $15 billion of launch aid.

Once the appellate process concludes later this year, the USG expects to be in a position to initiate the WTO process for imposing tariffs on European exports to the United States to mitigate these violations.
Click to expand...
Boeing: Facts About Subsidies to Airbus


The USG appealed the ruling and on Sept. 4, 2017, it was reversed.

The Appellate Body declared that Washington state tax incentives for aerospace investments are not a prohibited subsidy as the EU claimed. In so doing it brought an end to that case.

No further appeal of the decision is available to the EU.
Click to expand...
Boeing: Facts About Subsidies to Airbus


Taxpayers won't see any dime from that sibsidy! We've been had (again)!
 
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What makes a subsidy illegal?

Great.
Now Bombardier is in partnership with Airbus - a company that's found to have had illegal subsidies.
Well....
 
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