Boeing dispute derails sale of Super Hornet fighters to Canada

Report: Canada canceling purchase of new Boeing fighter jets

Canada to buy surplus Australian F-18s, says report

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.

The Liberals said last year that they planned to start receiving new fighters in about five years, or around 2021, at which point the 30-year-old CF-18s would start being phased out.

Word of the likely delay comes with the government moving ahead with the purchase of used fighter jets from Australia as a temporary stopgap alongside its existing CF-18s, rather than the original plan of buying brand new Super Hornets from USA aerospace giant Boeing Co.

Canada was looking to buy the Boeing aircraft as a placeholder for its fleet until a competition in 2019 to replace its ageing CF-18 jets.

Boeing complained to the USA government that Bombardier was receiving subsidies, which in turn allowed it to sell its C-Series civilian passenger aircraft at below-market prices. Boeing alleged that Bombardier was selling the planes at "absurdly low" prices, and the Department of Commerce imposed a preliminary 300 percent import duty on Bombardier's CS 100 planes.

A formation of U.S. Navy F-18E Super Hornets flies over northern Iraq, Sept. 23, 2014. The original plan to buy 18 Super Hornets, at an estimated cost of $6 billion, was scuttled after Boeing triggered a bitter trade dispute with Montreal-based rival Bombardier earlier this year.

The final ruling in the case is expected next year, but the relationship between Boeing and Canada has nosedived since.

Canada began discussions in late August with the Australian government to assess the potential purchase of used F/A-18 fighter aircraft from that country.

Instead, the Liberal government will announce next week it intends to buy a used fleet of older Australia F-18 jets, the same kind of plane Canada now operates, said the sources, who asked not to be identified because of the sensitivity of the situation. An official announcement is expected in the coming days.

"If Canada kicks Boeing out, I think that will be deeply unfortunate for us both". It would be a deeply unfortunate outcome.

But the company's thinly-veiled threat may be futile, especially in a larger political climate where Canada and Mexico are frustrated by Trump's attempts to renegotiate long-standing trade deals. It's not just the company but countries. "Unfortunately, I think they're taking advantage of a [political] context that's favourable to them".

Paul Scholes questions Luke Shaw lifestyle