Canada scraps buying 18 Boeing fighter jets amid trade dispute

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The Super Hornets were supposed to help tide Canada over as it holds a competition for fighters to replace 77 veteran CF-18s.

"If Canada kicks Boeing out, I think that will be deeply unfortunate for us both. With Canada, it was about $17 billion", the president said Tuesday in a meeting with Senate Republicans, according to Canadian news site Global News. "It has to be a two-way street, there has to be this mutually beneficial relationship for it to be one that grows, one that both sides are happy and excited about".

Ottawa says Bombardier is the latest victim of Donald Trump administration's trade policies, seeking to impose stiffer import penalties on a number of Canadian industries that Washington accuses of receiving government subsidies.

Canada's decision to cancel the Super Hornet purchase, which is reported by several sources citing information from the Liberal Party in Ottawa, also heightens manufacturers' concerns about the ongoing review of NAFTA.

It has been in service since 1983 with the U.S. Navy and U.S. Marine Corps, and by the defense forces of many allied nations. In August 2017, Canadian officials travelled to Australia to inspect the F/A-18 aircraft the country is planning to buy instead.

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In response, the Commerce Department in September imposed a almost 220-percent preliminary tariff on the C-series, but a final decision is not until 2018. That legal process continues with final rulings expected by the U.S. International Trade Commission early next year.

The Canadian government announced in 2016 it would purchase 18 planes from Boeing.

At a conference in Boston in November, Bombardier CEO Alain Bellemare said: "Boeing is underestimating what they are tackling. Unfortunately, I think they're taking advantage of a [political] context that's favorable to them".

Boeing's future military sales in Canada are in question after the USA defense firm launched a trade challenge against Canadian planemaker Bombardier Inc. It has been the standard line in Ottawa for months that Boeing, having failed to act as a trusted or valued partner, has effectively been shut out of any new federal contracts.