An F/A-18F Super Hornet assigned to the
Bounty Hunters of Strike Fighter Squadron (VFA) 2 prepares to land on the
flight deck of the Nimitz-class aircraft carrier USS Abraham Lincoln (CVN 72).
(U.S. Navy photo by Mass Communication Specialist Seaman Joshua E. Walters)
By: David Pugliese
VICTORIA, British Columbia – The Canadian and British
governments are combining forces against Boeing in a trade dispute that
threatens the purchase of fighter jets as well as aerospace jobs in both
countries.
In April, Boeing asked the U.S. Commerce Department to
investigate Bombardier, claiming that Canadian government subsidies for that
Quebec-based firm allow it to sell its C-Series passenger aircraft in the U.S.
at cut-rate prices.
A decision on Boeing’s complaint, which could see
punitive tariffs applied to Bombardier planes, is expected Sept. 25.
In retaliation for Boeing’s actions, Canada put on hold
its purchase of 18 Super Hornet fighter jets. That $5.23 billion acquisition,
which is seen as a stopgap until a future fleet of fighter jets can be bought,
was approved by the State Department on Sept. 12 but there are now doubts among
Canadian government officials whether it will ever proceed.
The British government, worried Boeing’s actions will
result in job losses at the Bombardier plant in Northern Ireland, has also
entered the fray.
Prime Minister Theresa May phoned U.S. President Donald
Trump on Sept. 5 to raise the Boeing issue.
May and Canadian Prime Minister Justin Trudeau will also
meet Sept. 18 to discuss how to move on the Boeing complaint.
“We have indeed been working closely with our British
allies on this issue,” Canadian Global Affairs Minister Chrystia Freeland told
reporters. “They have a strong interest in Bombardier and I think it absolutely
makes sense for us to work in close partnership, and that’s exactly what we’ve
been doing.”
Canada’s ambassador to Washington, David MacNaughton,
said it was the UK that approached Canada to volunteer its help. “I think the
biggest help is making Boeing realize that being unreasonable and arbitrary
about this is not in their best interests,” he told journalists. “The U.K. is a
big buyer of Boeing aircraft and if I were Boeing, I’d be paying attention to
it.”
British officials have told the Trump administration that
Boeing’s actions could also end up harming the U.S. aerospace industry since
more than 50 per cent of the Bombardier C-Series passenger jets are made of
U.S. parts.
Other political pressure has also been applied. Trudeau
on Sept. 5 phoned Eric Greitens, the governor of Missouri, to reiterate his
disappointment with Boeing and point out the number of jobs in St. Louis that
depend on the manufacturing of Super Hornets that Canada could purchase in the
future.
Canadian defense officials have privately warned that
Boeing’s actions could harm its future attempts to sell Canada refueling
aircraft and additional fighter jets.
Boeing, however, says it has no intention in backing
down. Company representatives argue that the Bombardier issue should not be
linked to a fighter jet purchase or any other defense acquisitions.
Marc Allen, Boeing’s president of international business,
said the firm believes that a level playing field is necessary in the global
aerospace market. “We faced a tough decision as a company,” he acknowledged.
“(But) we recognized we just couldn’t stand by. It’s very important to us that
the industry as a whole get to a place where there are clear rules that
everyone plays by.”
He said Bombardier is not following those rules because
of the subsidies it receives from Canada.
Canada is now examining whether to buy used F-18s from
Australia.
Meanwhile, Lockheed Martin says it can fill the fighter
jet order with F-35s. Jack Crisler, vice president of F-35 business
development, said the offer of the F-35 has been made to the Canadian
government.
Crisler said the delivery of those aircraft would match
the proposed delivery timetable the Canadian government had planned for the
Super Hornets.
Original post: defensenews.com
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