Boeing not option for next fighter jets, Sajjan suggests
‘We work with trusted partners,’ minister says
Defence Minister Harjit Sajjan suggested Thursday Canada would not consider a Boeing product for any future fighter jet and the door on the company’s involvement in other Canadian military procurements is close to being shut.
The move comes after the U.S. government hit Bombardier with duties of almost 220 per cent on its CSeries passenger jets. That penalty came as a result of Boeing’s complaint that Bombardier was selling the CSeries in the U.S. at a lower cost because it received subsidies from the Canadian government. Bombardier is selling the planes to Delta Air Lines.
But the move is being seen in the Canadian government as an attempt by Boeing and the Trump administration to undercut Canada’s aerospace industry. Boeing receives significant subsidies in the U.S. In addition, Boeing does not make aircraft similar to those Bombardier sold Delta.
Canada has put on hold its planned purchase from Boeing of 18 Super Hornet jets to be used as an interim fighter for the RCAF.
Sajjan on Thursday suggested Boeing will not be considered for other Canadian defence procurements.
“Rest assured, we cannot do future business with a company that is threatening us,” he told reporters. “We have a lot to invest with our procurements. We work with trusted partners.”
Sajjan has said Boeing is not a trusted partner.
Will Boeing be banned from the competition for a full fleet of 88 fighter jets?
“Our government is not going to allow our aerospace sector to be attacked in this manner,” Sajjan responded. “We can’t do business with a company that treats us in this way.”
It would be legally difficult for Canada to freeze out Boeing from competing on the fighter jet replacement. But requirements for a fleet could be written in a way that could prevent the Boeing Super Hornet from being selected.
The British government has also warned Boeing may face some difficulties on defence contracts in the United Kingdom.
“Boeing is a major partner of the defence and one of the big winners of our last review of defence contracts, so this is not the attitude we expect from a long-term partner,” the U.K.’s defence secretary, Sir Michael Fallon, warned.
He noted it has won large contracts from the British government for new aircraft. Those include Apache helicopters and maritime reconnaissance aircraft.
“They are going to apply for other defence contracts, and this type of attitude could clearly endanger our relationship,” Fallon said.
Boeing officials say defence procurement should not be linked to other commercial activities.
Marc Allen, Boeing’s president of international business, said the company took its action to ensure a level playing field in the aerospace industry. He said Boeing believes global trade works only if everyone plays by the same rules. That wasn’t the case for Bombardier, he said.
Canadian government officials privately say a duty of almost 220 per cent on Canadian aircraft is not a level playing field but protectionism by the Trump administration.