MONTREAL/NEW YORK: The US Commerce Department on Tuesday slapped preliminary anti-subsidy duties on Bombardier’s CSeries jets after rival Boeing accused Canada of unfairly subsidizing the aircraft, a move likely to strain trade relations between the neighbors.
The department said it imposed a steep 219.63 percent countervailing duty on Bombardier’s new commercial jets after it made a preliminary finding of subsidization. Boeing has complained the 110-to-130 seat aircraft were dumped below cost in the US market last year while benefiting from unfair subsidies.
An April 2016 order for 75 CSeries jets from Delta Air Lines stemmed from the same harmful sales practices European rival Airbus employed to win business in the 1990s, according to Boeing.
The Commerce Department’s penalty against Bombardier will only take effect if the US International Trade Commission (ITC) rules in Boeing’s favor in a final decision expected in 2018.
“We strongly disagree with the Commerce Department’s preliminary decision,” Bombardier said in a statement, calling the magnitude of the proposed US duty “absurd.”
Commerce’s announcement and accompanying fact sheet on the preliminary duty order did not provide any rationale or methodology for how it calculated the 220 percent duty.
The CSeries starts at $79.5 million, according to list prices, but carriers usually receive discounts of about 50 percent.
If imposed, the duties would more than triple the cost of a CSeries aircraft sold in the US to about $61 million per plane, based on Boeing’s assertion that Delta received the planes for $19 million each. Bombardier has disputed the $19 million sales figure.
There are not that many Commerce countervailing orders that are this high, but it is lower than the 256 percent final duties slapped on Chinese cold-rolled steel last year.
The timing is awkward because Canada and the US are in a three-way negotiation involving Mexico to modernize the North American Free Trade Agreement.
A source familiar with the Canadian government’s thinking said the Boeing trade dispute was “separate” from the NAFTA talks.
“This in no way is part of our conversation,” the source said. “People should not read too much into this piece today.”
The spat between Boeing and Bombardier has snowballed into a bigger fight this month when British Prime Minister Theresa May asked President Donald Trump to intervene in the dispute to help protect jobs in Northern Ireland, where Bombardier is the largest manufacturing employer.
The US has also faced opposition from a handful of American carriers and elected officials over potential US job losses.
Canada’s foreign affairs minister Chrystia Freeland said Bombardier CSeries components are supplied by American companies that support almost 23,000 jobs in US states, including Connecticut, Florida and New Jersey.
“This is clearly aimed at eliminating Bombardier’s C Series aircraft from the US market,” Freeland said. She added that Canada strongly disagrees with the anti-dumping and countervailing duty investigations.
Boeing said in a statement that the dispute “has everything to do with maintaining a level playing field and ensuring that aerospace companies abide by trade agreements.”
Bombardier’s was unwilling to swallow the extra cost for airlines if the US slaps duties on its CSeries jet, Reuters reported on Tuesday, citing people familiar with the matter.
“We are confident … no US manufacturer is at risk because neither Boeing nor any other US manufacturer makes any 100-110 seat aircraft that competes with the CS100,” Delta said in a statement.
Duties could chill US sales of the fuel-efficient CSeries, raising concerns over future orders and jobs in Canada and the United Kingdom.
Canadian Prime Minister Justin Trudeau had put his government’s planned purchase of Boeing Super Hornet fighter jets on hold because of the trade dispute, saying it could not “do business with a company that’s busy trying to sue us and put our aerospace workers out of business.”
Boeing has argued that the military sale to the Canadian government and its petition against Bombardier are not linked. But the US jetmaker has said the CSeries would not exist without hundreds of millions of dollars in launch aid from the governments of Canada and Britain, or a $2.5 billion equity infusion from the province of Quebec and its largest pension fund in 2015.
To win its case before the ITC, Boeing must prove it was harmed by Bombardier’s sales practices, despite not using one of its own jets to compete for the Delta order, Dan Pearson, a senior fellow at the libertarian Cato Institute think tank in Washington, said before Tuesday’s announcement.
“This (ITC case) cannot be a slam dunk,” said Pearson, a former ITC chairman. “I’m having a hard time figuring out how Boeing was harmed by this.”
Canada has pushed to settle the dispute. But one industry source said Boeing, which could gain some leverage with the Commerce Department’s initial decision in its favor, sees the possible CSeries dumping as a long-term threat to its civilian airliner business.
US slaps steep duties on Bombardier jets after Boeing complaint
US slaps steep duties on Bombardier jets after Boeing complaint
OPEC forecasts 2026 oil demand growth of 1.43m barrels a day
LONDON: OPEC on Wednesday predicted that global oil demand in 2026 will increase at a rate similar to this year’s growth.
However, the organization lowered its 2024 demand projection for the sixth time, citing ongoing economic weakness in China, the world’s largest oil importer.
The 2026 forecast aligns with OPEC’s long-term view that global oil consumption will continue to rise over the next two decades. This contrasts with the International Energy Agency, which expects oil demand to peak within this decade as the world transitions to cleaner energy sources.
In its latest monthly report, OPEC projected that oil demand will increase by 1.43 million barrels per day in 2026, a growth rate nearly identical to the 1.45 million bpd expected for this year. The 2026 forecast marks the first time OPEC has provided a projection for that year in its monthly update.
OPEC noted that transportation fuels will be the primary driver of oil demand growth in 2026, with air travel expected to continue expanding. Both international and domestic flights are expected to see steady increases, according to the report.
The report also revised its 2024 demand growth forecast down to 1.5 million bpd, compared to the 1.61 million bpd forecast in the previous month. This marks the sixth consecutive reduction for 2024, following an initial forecast of 2.25 million bpd in July 2024.
OPEC’s demand outlook remains at the higher end of industry expectations.
Earlier on Wednesday, the IEA forecasted a slower pace of global oil demand growth in 2025, predicting an increase of 1.05 million bpd.
Hexagon invests in future mining talent through partnership with King Saud University
RIYADH: Industrial technology company Hexagon has made a significant investment in King Saud University to help train the next generation of mining talent in the Middle East, according to a top official.
Speaking to Arab News on the second day of the Future Minerals Forum, which is being held in Riyadh from Jan. 14 to 16, Dave Goddard, executive vice president of mining at Hexagon, explained that the training would utilize advanced digital tools and software.
The agreement, finalized during the forum, builds on Hexagon’s ongoing collaboration with mining ventures in the region. This follows a landmark deal in 2024 with Saudi Arabian Mining Co. to launch the region’s first-of-its-kind digital mine.
The initiative also aligns with the Kingdom’s broader efforts to position mining as the third pillar of its industrial economy.
“One of the things that’s important for us is to give back to the mining community and ensure the long-term viability of the mining industry,” Goddard said. “And the only way that happens is people retire every year, and college students come into the environment as well.”
He continued: “So, what we’ve done is we’ve made a partnership with the universities in order to provide them some digital tools that the mining companies use, so that when they graduate, and they go into industry, they are already digital natives. They already have the skills and attributes necessary to enter into the digital mining realm. And so that’s what we’re really doing: investing in the future of mining by investing in the future leaders of mining.”
Goddard also elaborated on the firm’s partnership with Ma’aden.
“We have a partnership agreement with Ma’aden, our primary customer here in Saudi Arabia. And we have a partnership with them to build a digital mine, where we’re providing the tools, materials, and software to digitalize their mining operations in order for them to be an optimal miner and a world-class miner, which they currently are,” he said.
Regarding the mining process, Goddard described it as breaking down large rocks into smaller pieces to extract valuable minerals or compounds.
“You have a mine plan that has a digital representation of what that ore looks like inside the ground, and then you have a digital representation of the truck that is carrying that mineral around, and you have a digital representation of the drill that is drilling through the material,” Goddard explained.
“When you take that software and those digitalization parameters, what you’re really doing is reflecting the real world in a digital model and allowing yourself to model an optimal process to extract that real-world material in a digital manner,” he added.
He also mentioned the company’s drill assist product, which helps equipment drill 30 percent faster than a human.
“In terms of a fleet management system, we can provide the same material flow rate using 20% fewer trucks if you use our fleet management system. So, if you think about it, there’s not only the cost savings, but there’s also an energy savings because you’re using less material,” Goddard said.
“And that energy savings correlates to less impact on the environment, a lower carbon emission, and a smaller carbon footprint. So, we help our mining customers address not only their operational challenges but also their sustainability challenges as well,” he added.
Goddard further highlighted how mining influences global wealth and standards of living.
“Knowing that the world around us would not exist without mining and the natural materials that mining provides, as the wealth of the world grows and people enjoy richer lifestyles, demand for mineral resources will increase. And we want to be in the middle of that, providing the tools necessary to optimize the extraction of those resources,” he said.
He also discussed Hexagon's approach to providing digital solutions for mining operations.
“What we have are two different portfolios,” Goddard explained. “One is a planning portfolio that allows mining companies to optimize the extraction sequence in order to maximize the material that comes out of the mine. The second portfolio is our operations portfolio, which helps them optimize equipment and material movement during the actual mining operations and extraction activities.”
Saudi Arabia, Australia set to enhance mining ties, says business council head
- Bilateral trade between Saudi Arabia and Australia has grown significantly, reaching $4 billion
- Business council is actively working to further increase this figure
RIYADH: Saudi Arabia and Australia are poised to enhance cooperation in the mining sector with the launch of an inaugural bilateral forum this year, a senior official has announced.
Speaking on the sidelines of the Future Minerals Forum in Riyadh, Sam Jamsheedi, the president of the Australian Saudi Business Council and Forum, highlighted the event’s potential to boost bilateral exploration and investment opportunities in the mining industry.
He said that the inaugural Australia-Saudi Mining Forum would take place this year, marking a significant step in enhancing cooperation between the two countries.
“One of the main pillars of Saudi Vision 2030 is mining and resources. And one of Australia’s biggest industries is mining. This forum is dedicated solely to mining opportunities for both sides, which is also supported by both governments as well. I believe this forum would kind of ignite another cycle of boom in both nations’ productivity,” Jamsheedi said.
Jamsheedi pointed to Australia’s strong presence at the FMF, with over 300 Australian participants attending and the country hosting its first pavilion at the event.
He added that events like FMF are crucial to elevate and strengthen the bilateral relationship between Australia and the Kingdom.
Jamsheedi also elaborated on the Australian Saudi Business Council and Forum’s efforts over the past two years to facilitate trade and investment between the two nations.
“It is the official business council for both sides. Our mandate is to represent Saudi Arabian opportunities in Australia and also be the voice for Australians who come to Saudi Arabia,” he said.
Jamsheedi added that bilateral trade between Saudi Arabia and Australia has grown significantly, reaching $4 billion, with a $600 million boost in the past year due to the council’s support.
The business council is actively working to further increase this figure, focusing on key sectors such as mining, agriculture, food and beverages, infrastructure, technology, and services.
As Saudi Arabia aims to attract $100 billion in foreign direct investments by 2030, Jamsheedi emphasized the importance of hosting more events like FMF and raising awareness among Australian investors about the opportunities in the Kingdom.
Partnership with Saudi Arabia will address global critical mineral challenges, says UK minister
RIYADH: Saudi Arabia and the UK are deepening mining ties as the British government seeks to secure critical minerals for industries such as artificial intelligence and emerging technologies.
On Jan. 14, the two nations signed an agreement to collaborate on mineral resource development, emphasizing sustainable practices, technology transfer, and economic growth.
In an interview with Arab News on the sidelines of the ongoing Future Minerals Forum, the UK Minister for Industry, Sarah Jones, highlighted the growing collaboration between the two Kingdoms.
She emphasized the importance of partnerships in the critical minerals sector, which are vital for advancements in AI, green energy transitions, and emerging technologies.
“The quantity of critical minerals we’re going to need in the future is significantly bigger than we have today, and I think Saudi Arabia has taken quite a leadership role with the Future Minerals Forum, convening so many countries to come together and talk about this,” Jones said.
The minister outlined the challenges and opportunities as both countries work to address the surging global demand for essential minerals. She expressed confidence in the potential of the UK-Saudi partnership to tackle these challenges effectively.
The UK’s expertise in mining finance, as well as it universities — renowned for research and technical knowledge — position it as a valuable partner for Saudi Arabia in mining and exploration.
Jones emphasized that Britain’s focus on mining finance, combined with its global academic reputation, strengthens the collaboration.
“We wanted to have a relationship where we work together on some of these challenges, and I think this is the start of what will be a strengthening relationship going forward,” she said.
The minister expressed excitement about future collaborations, including sustainable mining practices, innovative financing structures, and technological advancements to meet the growing demand for critical minerals.
The UK government, under Prime Minister Keir Starmer, is taking a proactive approach to shaping its industrial future, especially in sectors integral to the global green transition and technological progress.
“We’re looking at things slightly differently,” said Jones. “We’re trying to be more proactive in devising what are the industries of the future that we need in the UK. Where do we get our supply chains from? How do we make sure we’re secure?”
As part of its new industrial strategy, Britain is prioritizing critical minerals, recognizing their essential role in advanced manufacturing, green energy, and AI.
Jones highlighted the government’s determination to position the UK as a key player in the global minerals market and equip domestic industries for future demands.
“We’re setting the directions of all of our companies and our businesses know the sectors that we want to grow and the direction that we want to go in,” she said.
To support this strategy, the British government has established funding mechanisms like the National Wealth Fund and UK Export Finance to mitigate risks associated with critical minerals mining, technology development, and sustainable practices.
In addition to the UK-Saudi partnership, Jones discussed opportunities for joint investment in mining projects in third countries.
She proposed collaboration on initiatives in Africa, where both nations have significant interests and could combine resources to meet growing mineral demands.
“Can the UK and Saudi Arabia have a project in an African country? We have several kinds of ideas, thoughts that we could do together,” she said.
Jones also highlighted the rising interest in mining within the UK, citing developments such as lithium and tin mining in Cornwall, which could support both the UK’s industrial needs and the global green transition.
The conversation touched on the ethical and environmental challenges associated with mining. Jones acknowledged the industry’s troubled history, including issues of worker mistreatment, environmental damage, and resource mismanagement.
As demand for minerals grows, she stressed the need for mining practices to evolve, becoming more sustainable and equitable.
“Historically, mining has been difficult in terms of the way that countries and people have been treated,” Jones said. “We’ve got to make sure where mining is sustainable and helping the countries that are supporting those mines, we have to make sure we’re creating wealth there and these things are hard, and that’s why countries need to work together.”
She concluded by emphasizing the importance of global cooperation in addressing critical mineral challenges.
“I think we can talk to each other between Saudi Arabia and ourselves about how some of these funding mechanisms work, how we support each other’s companies, and how we develop and help other countries to, to develop what they need as well. But it’s a huge challenge and that’s why we’re here,” Jones said.
Closing Bell: Saudi main index closes in green at 12,212
RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Wednesday, gaining 39.49 points, or 0.32 percent, to close at 12,212.24.
The total trading turnover of the benchmark index was SR7.17 billion ($1.91 billion), as 116 of the listed stocks advanced, while 114 retreated.
The MSCI Tadawul Index increased by 9.44 points, or 0.62 percent, to close at 1,526.65.
The Kingdom’s parallel market Nomu dipped, losing 17.28 points, or 0.06 percent, to close at 31,299.81.
This comes as 47 of the listed stocks advanced, while 34 retreated.
The best-performing stock was Nice One Beauty Digital Marketing Co., with its share price surging by 9.94 percent to SR59.70.
Other top performers included the Power and Water Utility Co. for Jubail and Yanbu, which saw its share price rise by 5.77 percent to SR55, and United International Transportation Co., which saw a 4.86 percent increase to SR84.10.
The worst performer of the day was Astra Industrial Group, whose share price fell by 5.46 percent to SR190.60.
Saudi Reinsurance Co. and Riyadh Cables Group Co. also saw declines, with their shares dropping by 3.53 percent and 3.05 percent to SR57.40 and SR146, respectively.
On the announcements front, Al Rajhi Bank has successfully completed its offer of US dollar-denominated additional Tier 1 capital sustainable sukuk, raising $1.5 billion.
The issuance, with a par value of $200,000 per sukuk and totaling 7,500 sukuk units, will be settled on Jan. 21, according to a Tadawul statement.
Offering an annual return of 6.25 percent, the perpetual sukuk includes a callable feature after five years. It will be listed on the London Stock Exchange’s International Securities Market, adhering to Regulation S under the US Securities Act of 1933.
The sukuk is aimed at eligible investors within Saudi Arabia and internationally, contributing to the bank’s sustainable financing initiatives.
Al Rajhi ended today’s trading session surging by 0.21 percent to SR96.20.
