The growing trade feud between the US and Canada escalated overnight when Ottawa announced it was scrapping a plan to buy 18 F-18 Boeing Super Hornet fighter jets amid a deepening dispute with the U. S. aerospace company, Reuters reported. In a snub to the US, Canada’s Liberal government will instead announce that intends to acquire a used fleet of older Australia F-18 jets, the same kind of plane Canada currently operates.
The unexpected decision demonstrates Ottawa’s anger at a recent decision by Boeing to launch a trade challenge against Canadian planemaker Bombardier which Beoing accuses of dumping airliners on the American market. It also puts into question the future of Boeing’s military sales in Canada, which however is a two-edged sword: Boeing says its commercial and defense operations in Canada support more than 17,000 Canadian jobs.
The trade spat comes as Canada and Mexico are locked into increasingly acrimonious negotiations with the United States over the NAFTA trade pact.
This post was published at Zero Hedge on Dec 6, 2017.