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Boeing warned Bombardier dispute 'could jeopardise' future UK contracts

The Defence Secretary delivers a stark message to the US firm, the Government's strongest intervention in the Bombardier row yet.

Boeing is worth five times as much as Ford and General Motors put together.
Image: Boeing is worth five times as much as Ford and General Motors put together.
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Boeing's behaviour over a long-running trade dispute "could jeopardise" its chances of receiving future contracts, the UK Government has warned.

In the strongest diplomatic comments from a minister yet, Defence Secretary Sir Michael Fallon said the aircraft manufacturer's status as a "long-term partner" was now at risk.

Boeing had complained rival firm Bombardier was receiving unfair state subsidies, leading the US to on the sale of new C-Series jets - whose wings are made in Belfast.

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People work on a C Series aeroplane wing in the Bombardier factory in Belfast, Northern Ireland September 26, 2017
Image: Bombardier staff work on a C-Series wing

The ruling could threaten thousands of jobs in Northern Ireland if it is upheld, with a final verdict expected in February.

Speaking on a visit to Belfast, Sir Michael warned: "Boeing is a major defence partner and one of the big winners of the latest defence review so this is not the kind of behaviour we expect from a long-term partner.

"This is not the behaviour we expect of Boeing and could indeed jeopardise our future relationship with Boeing."

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He added: "Boeing stand to gain a lot of British defence spending.

Flags fly above the Bombardier Aerospace plant in Belfast
Image: A final ruling on the import tariffs is expected in February

"We have contracts in place with Boeing for new maritime patrol aircraft and for Apache attack helicopters and they will also be bidding for other defence work and this kind of behaviour clearly could jeopardise our future relationship with Boeing."

Theresa May is walking a diplomatic tight-rope over the issue.

She tweeted this morning: "Bitterly disappointed by initial Bombardier ruling. The Government will continue to work with the company to protect vital jobs for Northern Ireland."

Donald Trump and Theresa May
Image: Theresa May has pressed Donald Trump repeatedly on the issue

The Prime Minister pressed US President Donald Trump on the issue in a phone call earlier this month.

And she discussed the threat to jobs with Canadian leader Justin Trudeau last week, whose country Bombardier operates out of.

The Democratic Unionist Party (DUP), which the Tories rely on to swing key votes in Parliament for the Government, is also keeping the pressure up.

Theresa May comments on US tariffs on Bombardier
Image: May said Boeing was 'undermining' its partnership with the UK

Mrs May called the DUP and Sinn Fein leaders on Wednesday to discuss concerns about the ruling and stress ministers "across government" were working on a solution.

She said later that evening: "I will be doing everything I can - as the government has been - working with Arlene Foster and Michelle O'Neill, to ensure that we can try to make sure the future of Bombardier is protected."

When pressed on Sir Michael's warning, the Prime Minister said: "We have had a long-term partnership with Boeing. I think this is no way to operate in such a long-term partnership. I'd say that the long-term partnership is being undermined by this behaviour by Boeing."