Canada warns it may cancel United States jet buy over Bombardier probe

She says the government is “reviewing current military procurement that relates to Boeing“.

The threat against Boeing only complicates a Canadian military procurement system which many analysts say is broken.

Canada unveiled plans to buy the Super Hornets last November as a stop-gap measure while it prepared an open five-year competition to replace its aging fleet of 77 Boeing CF-18 fighter jets.

Boeing can expect to make at least $2 billion from the 18 Super Hornets, based on rough estimates, plus whatever else it receives in future sales of fighter jets and other aircraft.

The Liberals linked the trade dispute and fighter jet purchase Thursday after USA officials in Washington held a hearing into dumping allegations that Boeing brought against Bombardier.

Boeing is asking the International Trade Commission to find that it has suffered injury to its business at the hands of Bombardier, claiming the Canadian company’s C Series aircraft is being sold at unfairly low prices.

This picture taken on March 14, 2017 shows a two-seater F/A-18F Super Hornet landing on the deck of the Nimitz-class aircraft carrier USS Carl Vinson during a South Korea-US joint military exercise in seas east of the Korean Peninsula.

“It is untenable for us to continue competing with government subsidized competitors” Boeing Vice Chairman Raymond L. Conner said.

A Boeing spokesman called Canada a valued customer. “There just isn’t much competition between Bombardier’s CSeries and Boeing’s products”.

In an emailed statement Boeing also pointed out that it places substantial amounts of commercial and defence work in Canada and has a supply chain that “leverages the breadth and depth of the Canadian aerospace industry”. -Canadian trade relationship, along with disputes over Canadian softwood lumber and US milk protein products.

Justin Trudeau came out swinging at the US government Friday over its investigation into a trade dispute between USA aerospace giant Boeing and Canadian rival Bombardier.

“If this is a case of David vs. Goliath, Boeing has cast itself in the wrong role”.

Canada suggested on Thursday it could ditch its plans to buy the jets if the United States backed Boeing’s claims that Canadian plane maker Bombardier Inc dumped jetliners in the US market. A preliminary determination on the petition is expected by June 12. Final determinations are scheduled for October and December.

According to The Canadian Press, Boeing is calling for countervailing duties of 79.41 per cent and anti-dumping charges of 79.82 per cent if authorities uphold its complaint.

Bombardier said last month it worked to ensure compliance with the laws of countries where it operates and spent about US$3 billion annually with American suppliers.

The Quebec government invested $1 billion in exchange for a 49.5 percent stake in the C Series a year ago. The aerospace giant has also taken the Caisse to task over a credit facility for Bombardier in 2009, as well as the pension fund’s acquisition of a 30 per cent stake in the company’s rail division. Bombardier has rejected the allegations and the two sides clashed at an ITC hearing on Thursday on whether the companies’ competing plane models are even comparable.

He said Boeing could lose $10 billion to $20 billion in military sales to Canada, encompassing order for jets, helicopters and maritime surveillance planes.

Boeing’s annual sales were US$94.6 billion a year ago.

Boeing’s petition in this case is unprecedented in its overreach, ” he said.