Skip to main content

Boeing’s Clash With Ottawa Threatens US-Canada Defense Relationship

The trade dispute between the Canadian government and American defense contractor Boeing has placed the lucrative defense relationship in jeopardy, as Canadian authorities seek foreign defense contractors to fill the gap and European firms begin to close in.

It all started when the US Department of Commerce began investigating a Boeing complaint that Ottawa has allowed Quebec-based aerospace contractor Bombardier Aerospace to sell their C-series commercial aircraft at below-market prices. 

Boeing claims that Bombardier has received $3 billion in Canadian government subsidies that give it unfair advantages on the international marketplace.

The details of the disagreement between Boeing and Bombardier has primarily taken place behind closed doors. 

Brazil, home to aerospace contractor and Bombardier rival Embraer, has filed a complaint with the World Trade Organization over alleged Canadian subsidies.

In 2016, the Quebecois government invested $1 billion into Bombardier in exchange for a 49.5 percent stake in the C Series. 

Bombardier then won a contract to build 75 C-series planes for US-based Delta Airlines. 

They deny that Boeing competed with them for that contract.

In response to the Boeing complaint, Canada broke off discussions with Boeing to hash out a purchase of 18 Super Hornet fighter jets. 

"We have suspended discussions with Boeing and that is what we have decided," said Steve MacKinnon, a spokesman for Canada's Ministry of Public Works, to reporters on Thursday.

Canada is expected to release a new defense policy June 7, including their planned purchases of equipment from foreign contractors. 

Boeing had been sniffing around many of these lucrative contracts for equipment such as tactical helicopters and UAVs, but their trade complaint may have jeopardized that.

"We call on all of our industry partners to speak with one voice about the interconnectedness of the defense industry supply chain between Canada and the United States," Canadian Defense Minister Harjit Sajjan said to industry officials at the May 31 CANSEC defense trade show.

Sajjan added that defense firms should help the Canadian government make "the clear case of ensuring goods continue to flow freely across our two countries," he added. 

"We need your voices to articulate the consequences should our borders be closed."

Boeing's complaint and the US response have hurt their relationships with Canada, said Sajjan, who called on Boeing to withdraw their complaint against Bombardier. 

"It is not the behavior of a trusted partner," he said.

Boeing has not backed down. On June 1 they cancelled a planned announcement to name the members of the team that would contribute to the Super Hornet program. 

"Due to the current climate, today is not the most opportune time to share this good news story," they wrote in a statement.

If Boeing is not a "trusted partner," that opens the door for other contractors to fill the niche opened in Canadian defense – including European defense firms. 

Italian contractor Leonardo SpA was present at CANSEC and has announced that they will cooperate with Canadian firms to modernize the Royal Canadian Air Force's search-and-rescue aircraft.

"The trade dispute with the Americans has potential to open up new opportunities," said an anonymous European industry source to Defense News. 

"We are keen to see how this plays out in the coming months."

Boeing operations account for 14 percent of Canada's aerospace industry.


Popular posts from this blog

Iran Killing Command: The use of firearms in dealing with protesters

The document you see on the image is the order of the commander of the Tehran repressive force to all the units based in the city.

Based on this agenda, the mercenaries of the corrupt government Islamic Republic of Iran have been allowed to use firearms in the event of any protest movement against people by the regime.
This is a murder command.
The repressive force of the law, known to the world's famous police and guardians, should protect the lives of its citizens, by freeing their mercenaries, they allow them to murder Iranians who are protesting the corruption in the government and you have the important message that if you come to the streets in protest of corruption and torture and massacre, we will kill you.
Because, according to criminal Khomeini, maintenance of the system is obligatory.
A corrupt government that is so hideous that spend billions of dollars from the national treasury and popular capitalto the suppression of its people and the countries of the region, must be ov…

Armenian protesters block traffic, railways & airport as protest leader loses PM bid

Anti-government protesters disrupted traffic in Armenia’s capital, blocking railways and roads leading to Yerevan International Airport, after the parliament voted against opposition leader Nikol Pashinyan’s bid for interim PM.
Protesters managed to block streets connecting downtown Yerevan to residential districts, disrupting transportation in Armenia’s capital, footage from the scene shows. 
Yerevan’s metro system has also been paralyzed as demonstrators sit on the tracks, preventing trains from passing.
Meanwhile, protesters disrupted traffic on a road leading to Yerevan’s Zvartnots International Airport, located just 12km from the center of the city. 
Consequently, some passengers had to go the rest of the way on foot in order to catch their flights, according to Sputnik news agency.
Railway services have also been disrupted all across the country amid the demonstrations, a spokesman for South Caucasus Railways confirmed to Interfax. 
Some other highways, including the one connecting th…

ایران فرمان قتل : دستور استفاده از سلاح گرم در برخورد با معترضان

سندی که در تصویر میبینید دستور فرمانده نیروی سرکوبگر انتظامی تهران به همه یگانهای مستقر در این شهر است.
بر اساس این دستور کار ، مزدوران حکومت فاسد نظام جمهوری اسلامی اجازه یافته اند که درصورت بروز هرگونه جنبش اعتراضی از سوی مردم علیه رژیم ، از سلاح گرم استفاده کنند.
این دستور یک فرمان قتل است.
نیروی سرکوبگر انتظامی که به ظاهر و تعریف شناخته شده پلیس در سراسر جهان ، میبایست حافظ جان شهروندان باشد ، با آزاد گذاشتن دست مزدوران چکمه پوش خود انها را مجاز به قتل ایرانیان معترض به فسادهای موجود درلایه های حکومت میکنند و این پیام مهم را در خود دارد که اگر در اعتراض به  فساد و شکنجه و کشتار به خیابانها بریزید شما را خواهیم کشت.
چرا که به گفته خمینی دجال، حفظ نظام از اوجب واجبات است.
حکومت فاسدی که انقدر وقیح هست که میلیاردها دلار از خزانه ملی و سرمایه مردمی را صرف سرکوب مردم خود و کشورهای منطقه میکند باید سرنگون کرد.
اکنون چهل سال است که کشور ما به اشغال این ملایان جنایکتارخونخوار و اسلام تحمیلی در آمده است .
هنوز باورش برای برخی سخت است که درک کنند کشور ما به معنای واقعی کلمه از سوی بنیادگرایان الله…