Amid trade dispute, Canada gets set to cancel Boeing fighter jet deal

As relations between the two sides deteriorated, Ottawa slammed Boeing for not acting as a trusted partner and began looking at the Australian jets.

Prompted by Boeing Co.'s complaint, Commerce in late September declared that a 2016 sale of 75 Bombardier C-Series jets to Delta violated fair-market pricing standards, and should incur a 219% trade duty on future sales of the aircraft.

News Brief: Reuters reports that Canadian officials have chose to cancel an order of 18 Boeing F/A-18 Super Hornet jets, marking an escalation in the trade battle involving Canadian jet maker Bombardier's sales to USA markets.

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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.

The Trudeau government is said to be wrestling with how best to sell Canadians on the idea of buying used fighter jets from Australia after the disaster that followed Canada's purchase of second-hand British submarines in the 1990s.

Instead, the Liberal government will announce next week it intends to acquire 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. But the used jets are 30 years old - the same vintage as the CF-18s - and will need significant upgrades to continue flying into the next decade, which is when the entire fleet is expected to be replaced.

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