Canada is scrapping a plan to buy 18 St. Louis-made Super Hornet fighters amid a deepening dispute with Boeing Co., three sources familiar with the matter said on Tuesday.
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 currently operates, said the sources, who asked not to be identified because of the sensitivity of the situation.
The move underlines Ottawa’s anger at a decision by Boeing to launch a trade challenge against Canadian planemaker Bombardier Inc., which the U.S. giant accuses of dumping airliners on the domestic American market.
It also casts into question the future of Boeing’s military sales in Canada. Boeing says its commercial and defense operations in Canada support more than 17,000 Canadian jobs.
Canada and Mexico are currently locked into increasingly acrimonious negotiations with the United States over the NAFTA trade pact, which President Donald Trump says has not done enough to protect U.S. jobs.
Read more: St. Louis Post-Dispatch