MONTREAL, Jan 25 (Reuters) - Planemaker Bombardier Inc is expected to lose a hotly contested U.S. trade dispute this week, a Canadian government source told Reuters on Thursday, likely inflaming tensions between the two countries as they try to bridge differences in talks to modernize NAFTA.
Trade lawyers and industry experts largely expect the International Trade Commission (ITC) to back the U.S. Commerce Department's recommendation to slap Bombardier's CSeries with a near 300-percent duty on sales to American carriers in its decision scheduled for Friday. This is the first time a Canadian official has acknowledged that is the most likely outcome.
Boeing Co, the world's largest maker of jetliners, accuses the Canadian firm of dumping planes on the U.S. market.
An ITC spokeswoman was not immediately available for comment. The source declined to be identified due to the sensitivity of the matter. (Reporting by David Ljunggren and Allison Lampert; Editing by Denny Thomas and Bill Rigby)