IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 28 Sep 2017 | Removal date: open ended
Still in force

Public procurement, nes

On September 18, 2017 Prime Minister Justin Trudeau threatened to use government procurement practices as means of retaliation against the Boeing Company in a pair of trade-remedy disputes. At issue is the petition that Boeing had filed on April 27, 2017 in the United States, requesting that antidumping and countervailing duties be imposed on 100- to 150-seat large civil aircraft imported from Canada. Boeing accused Bombardier of selling its C-Series passenger jets to a U.S. airline at dumped and subsidized prices.

Boeing is the manufacturer of the FA-18 Super Hornet, an advanced fighter jet. Ever since Boeing filed the AD/CVD petitions, Canadian officials had hinted at using the purchase of these jets as leverage against the U.S. company. That threat was not made explicit until the prime minister held a press conference with his British counterpart.

“We have obviously been looking at the Super Hornet aircraft from Boeing as a potential significant procurement of our new fighter jets,” he said during a news conference. “But we won’t do business with a company that’s busy trying to sue us and trying to put our aerospace workers out of business.” British Prime Minister Theresa May added that Canada and the United Kingdom. would work together to defend Bombardier, which has a factory in Northern Ireland.

Canadian Defence Minister Harjit Sajjan appeared to make good on the threat on September 28, 2017 when he was quoted in press accounts declaring that Canada would not consider a Boeing product for any future fighter jet. “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.” His statement came after a preliminary subsidy determination by the U.S. government of nearly 220% on Bombardier’s C-Series passenger jets. The press accounts reiterated that Canada has put on hold its planned purchase from Boeing of 18 Super Hornet jets to be used as an interim fighter.

On December 12, 2017 the government of Canada announced that it will buy used, older model F/A-18s from Australia."We received a formal offer from the government of Australia and we intend to pursue it," Canadian Defense Minister Harjit Sajjan said at a news conference, and that same day the ministry posted a Suppliers List Invitation (W847A-180210/A) for its Future Fighter Capability Project.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

496 Aircraft & spacecraft; parts
8802 Other aircraft (for example, helicopters, aeroplanes); spacecraft (including satellites) and suborbital and spacecraft launch vehicles.
880211 Of an unladen weight not exceeding 2,000 kg
880212 Of an unladen weight exceeding 2,000 kg
880220 Aeroplanes and other aircraft, of an unladen weight not exceeding 2,000 kg
880230 Aeroplanes and other aircraft, of an unladen weight exceeding 2,000 kg but not exceeding 15,000 kg
880240 Aeroplanes and other aircraft, of an unladen weight exceeding 15,000 kg

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