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Sajjan blasts Boeing over Bombardier trade spat

Defence Minister Harjit Sajjan is calling on Boeing to halt its trade complaint against Bombardier, while further sharpening the Liberal government's threat to cancel the planned sole-source purchase of 18 Super Hornet fighter jets.


June 1, 2017
By CBC News

His comments at CANSEC in Ottawa on Wednesday are the most direct warning he has delivered since the trade dispute with the giant U.S. aircraft maker erupted earlier this month.

Boeing wants trade regulators in Washington to investigate subsidies for Bombardier’s C Series aircraft, claiming they allow the Canadian company to export planes at well below cost.

The request to the U.S Commerce Department prompted Foreign Affairs Minister Chrystia Freeland to order a review of the planned Super Hornet deal, saying “there will be consequences” for Boeing.

But Sajjan went a step further Wednesday in a speech before an annual defence industry trade show in Ottawa, underlining for hundreds of military contractors how “strongly the government disagrees” and saying he is “extremely disappointed” with the action.

He suggested Canada has other ways of dealing with its shortfall in fighter jets than simply making an interim purchase of Boeing’s Super Hornets.

“The interim fleet procurement requires a trusted industry partner,” Sajjan said. “Our government is of the view their action against Bombardier is unfounded. It is not the behaviour we expect of a trusted partner and we call on Boeing to withdraw it.”

Last fall, Sajjan announced the government would pursue a contract to buy 18 Super Hornets as a stopgap measure until the entire existing fleet of CF-18s was replaced through an open competition, which he estimated would take up to five years.

The Liberals insisted the upgrade is an urgent matter because the air force is unable to meet all of its NORAD and NATO commitments. The interim purchase could cost anywhere between $5 and $7 billion, according to internal Defence Department figures shared with CBC News last fall.

Critics argue the government is wasting money on the Super Hornets and should instead go directly to the open competition to deliver a permanent replacement.

In his speech Wednesday, Sajjan reminded the audience that was still an option. But he hedged those comments when asked after the speech what he would do if the program is cancelled.

“I don’t want to jump to that conclusion just yet,” Sajjan said. “This is about working things through.”

He said he was looking forward to Freeland coming up with a resolution.

But at least one Boeing official didn’t seemed phased by the warning.

“We heard what Minister Sajjan had to say today,” said Scott Day, a senior vice-president who was attending the trade show. “With regard to withdrawing the petition, we’re following a normal course of business for the U.S. government, and we’ll see where it takes us.”

Canada’s Super Hornet purchase is being made directly through the U.S. government.

The company is still working with the U.S. navy and the Pentagon on the details of the proposal for Canada, Day said, and it will continue on schedule.

Boeing had hoped to finalize the contract with the Canadian government by early 2018.

The Liberal government has signalled to the company that it would like to see the first aircraft arrive in 2019, which would coincide with the next federal election.

Day said the company is still examining how production of Canada’s jets can be slotted alongside existing orders from the U.S. navy and Kuwait