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Bombardier factory workers caught in web

By Conal Urquhart | China Daily Europe | Updated: 2017-10-06 09:19
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Their plight in Northern Ireland highlights the dangers of protectionism and the global reach of trade disputes

The Bombardier factory in the heart of east Belfast is not far from the docks where the steamship Titanic was built beginning in 1909, and even closer to the reclaimed Titanic Quarter of the city, where the television series Game of Thrones is produced.

It is an area that is no stranger to conflict, but this month it was the subject of a skirmish that could herald years of trade wars inspired by the "America First" vision of US President Donald Trump.

While Trump has threatened trade wars with China and others, his first target is Bombardier, which makes components for C-series passenger jets for its parent company in Canada. Bombardier sold 75 jets to Delta Air Lines, which Boeing objected to even though the company did not compete for the contract. Boeing argued that Bombardier received illegal state subsidies. US Trade Secretary Wilbur Ross agreed and imposed a 219 percent tariff on the aircraft, jeopardizing the deal and jobs in Canada and Northern Ireland.

The Bombardier enterprise, although now Canadian-owned, is an important part of the manufacturing past and present of Northern Ireland. It employs more than 4,000 people and is the largest private employer in the province. It was originally a joint enterprise between Short Brothers, pioneers of aircraft manufacturing in the UK, and shipbuilders Harland and Wolff, builders of the Titanic.

Bombardier now employs 3,500 more people than Harland and Wolff, which assembles wind turbines and refits ships. Bombardier has continued the Short tradition of providing high-skill apprenticeships, and it uses 800 suppliers in the UK and Ireland.

The last thing Northern Ireland needs is for its aviation industry to go the way of its shipbuilding, but Bombardier workers find themselves at the mercy of disparate political forces.

British Prime Minister Theresa May raised the issue with Trump but to no avail. The White House website bemoans the loss of US jobs to foreign companies not playing by the rules, adding that the president intends to do something about it.

The Bombardier workers have also been left stranded by their representatives, the Democratic Unionist Party, the largest Northern Ireland political party. It is opposed to the European Union, which means it will not petition the EU for help.

The workers could have another advocate in Leo Varadkar, the Irish prime minister.

Although his mandate does not include Northern Ireland, Varadkar could make the case to the EU that these jobs are vital to the peace and stability of Ireland.

The DUP is unlikely to petition the Irish prime minister, since it is ideologically opposed to the involvement of the government of Ireland in the affairs of the north. The DUP is stuck with May, whom the party supports in government, but May cannot seek the help of the EU because she is also ideologically opposed to its involvement in the affairs of the UK.

In the middle of this web are the people of Northern Ireland and its weak economy, of which one in every three worker is employed by the state. They are being buffeted by Trump and Brexit and further skewered by Northern Ireland's sectarian politics.

Some hope emerged from China, where Bombardier is negotiating with three airlines on the sale of the C-series jets. The company hopes that new contracts will be announced later this year. Another major deal is expected with AirBaltic.

The US may yet reconsider its tariffs, but the situation highlights the dangers of protectionism, how isolationism can make a country more vulnerable and how disputes can reverberate around the world.

The author is a senior editor at China Daily UK. Contact the writer at conal@mail.chinadailyuk.com.

(China Daily European Weekly 10/06/2017 page11)

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