The Commerce investigation was announced as USITC staff heard arguments on Thursday from representatives for Boeing, Bombardier and Delta Air Lines Inc, which has sided with Bombardier against Boeing.
Bombardier has reportedly held talks with the Commercial Aircraft Corporation of China Ltd. (Comac) about a potential investment in the Montreal-based company's commercial aerospace division.
If the Commerce Department determines that Boeing's so-called dumping charges carry merit and the ITC determines that dumped and/or unfairly subsidized Canadian imports of civil aircraft into the United States harm US industry, the Commerce Department can impose duties on the imports equal to the dollar value of the improper actions.
"Canada is reviewing current military procurement that relates to Boeing", Canadian Foreign Minister Chrystia Freeland said in a statement released late on Thursday.
Bombardier has made it clear that its true goal is to grab half the worldwide market share for 100-to-150-seat aircraft, according to Boeing, which argues its rival has received an unfair head start from Canadian taxpayers.
"The U.S. market is the most open in the world, but we must take action if our rules are being broken", U.S. Commerce Secretary Wilbur Ross said in a statement after the hearing began.
"Boeing consistently places substantial amounts of commercial and defense work in Canada and has a supply chain across all regions", Scott Day said by email Thursday evening, noting "our partnership dates back to 1919".
The DoC says if the investigations determine that CSeries planes were dumped in the US market or were unfairly subsidized, it would collect duties equal to the value of the benefits. "If you don't fix it now, it will be too late to do anything about it later".
The investigation results from a legal petition filed by Boeing on 27 April, in which the USA company alleged Bombardier sold CS100s at a major loss to Delta Air Lines as part of a strategy to build market share.
The preliminary ruling on the 100-150-seat planes is due by June 12.
In that case, the Commerce Department expects it would make a preliminary determination about alleged subsidies as soon as July, and a preliminary determination about dumping by October. -Canadian trade relationship, along with disputes over Canadian softwood lumber and USA milk protein products.
Boeing had offered Delta the 737 Max 7, a re-engined derivate of the 737-700 that competes directly with the C Series. "If this is a case of David vs. Goliath, Boeing has cast itself in the wrong role". "We will refute them while offering our full co-operation to USA agencies to bring this matter to a quick and satisfactory resolution".
In the latest of a number of recent NAFTA-related events between Canadian and US companies, Boeing Co.
As a result, Bombardier has been forced to accept roughly $3 billion in public bailouts over the past two years.