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Canada cancels Boeing fighter jet order amid trade spat
07 December 2017, 06:35 | Cesar Cruz
The Boeing Company logo is projected on a wall at the"What's ? conference in Chicago Illinois U.S
Global News, however, noted that statisticians with both the USA and Canadian governments agree that the us enjoys a $12-billion trade surplus with Canada, when the value of services - as opposed to goods - is factored in.
Canada is scrapping a plan to buy 18 Boeing Co Super Hornet fighter jets amid a deepening dispute with the USA aerospace company, three sources familiar with the matter said on Tuesday.
National Defence had already planned to spend up to $500 million to keep its 76 CF-18s flying to 2025, but previous estimates have said extending past that date would be very expensive. RCAF now operates an ageing fleet of CF-18 fighters, which is due for replacement sometime in the next decade.
In addition, industry sources said it remains an open question whether Ottawa will be saving money by buying second-hand Australian jets that are almost as old as Canada's CF-18s. Last year, we lost approximately $71 billion in trade deficit; we have a trade deficit with Mexico of $71 billion.
"Even today, it could be started".
The offices of Public Works Minister Carla Qualtrough and Defence Minister Harjit Sajjan, who share responsibility for military procurement in Canada, both declined to comment.
In the meantime, government and industry sources say the Liberals have settled on buying Australia's used jets from Australia.
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Canada is likely to ditch its deal with Boeing in favor of purchasing planes from Australia following Boeing's accusations of unfair trade practices by their rival Canadian company, Bombardier.
The Australian plan does have its advantages.
Sources said that in order to offer the same capabilities as 18 new Boeing Super Hornets, which were the federal government's first choice, the RCAF will need at least 10 additional second-hand fighter jets.
Canada was expected to buy 18 new Super Hornets from Boeing, but sources told Reuters Tuesday that Ottawa will announce plans to buy used Australian F/A-18s next week instead, as the older planes are the same model that Canada now has in its fleet.
The government has also been forced to sink billions into the vessels to address a multitude of technical problems over the years, which has kept them docked more often than they have been at sea.
During question period Wednesday, Conservative MP Tony Clement called on the Liberals to abandon the "rusted out" Australian "bucket of bolts" and hold an immediate competition to replace the CF-18s.
Speaking to The Globe and Mail in September, Boeing International president Marc Allen said the federal government should not forget that Boeing does $4-billion a year of business in Canada, with 560 suppliers and an overall impact of 17,000 jobs.
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