Canada makes not bad on threat to drop Boeing fighter deal

5 stunning stats about Boeing

Canada wasn’t bluffing.

The country has ditched plans to buy 18 completely new F/A-18 Super Hornet fighter jets via Boeing amid a trade dispute with the U.S.

Instead, Canada will buy used, older type F/A-18s via Australia, Canadian officials announced Tuesday. The loss of the $5.23 billion deal is actually a major blow to Boeing.

“We received a formal offer via the government of Australia along with we intend to pursue in which,” Canadian Defense Minister Harjit Sajjan said at a news conference.

The move makes not bad on threats by Prime Minister Justin Trudeau to stop doing business with Boeing (BA) if the U.S. aerospace giant continues to pursue a trade complaint against Canadian rival Bombardier.

Boeing has accused Bombardier of selling its completely new C Series airliner to Delta Air Lines (DAL) at “absurdly low prices.” The U.S. Commerce Department in October levied preliminary tariffs on the import of the C Series totaling 300%. Bombardier has denied in which has engaged in unfair trade practices. A final determination on the tariffs is actually expected in February.

In a statement, Boeing said in which “respects the Canadian government’s decision” to drop plans to buy its 18 fighter jets.

“Although we will not hold the opportunity to grow our supply base, industrial partnerships along with jobs in Canada the way we would likely if Canada purchased completely new Super Hornets, we will continue to look to find productive ways to work together inside future,” in which said.

Canada’s purchase of the Australian jets is actually largely considered a stopgap for the country, which wants to replace its entire fleet of aging fighter jets.

Officials on Tuesday also announced Canada intends to buy 88 completely new fighter jets, along with is actually taking bids via aerospace companies worldwide. The competition will be open to Boeing, though officials indicated in which the trade complaint would likely need to be dropped.

“The evaluation of bids will also include an assessment of bidders impact on Canada’s economic interest,” Procurement Minister Carla Qualtrough said on Tuesday. “When bids are assessed, This particular will mean in which bidders responsible for harming Canada’s economic interest will be at a distinct disadvantage compared to bidders who aren’t engaged in detrimental behavior.”

sy88pgw (Seattle) First published December 12, 2017: 3:49 PM ET

Canada makes not bad on threat to drop Boeing fighter deal

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