Canada will suspend a planned purchase of 18 Boeing Super Hornet fighters after a month-long dispute with the US defense contractor, Reuters reported on Tuesday.
Three sources familiar with the matter told the press that Canada, on the other hand, announces next week that they will buy a used fleet of Australian F-18 aircraft, which Canada already operates.
Australian military officers had been in the Canadian capital of Ottawa in late November for talks, two of the sources said.  Canada was in the midst of negotiations to buy the Boeing F / A-18s for an estimated $ 5.15 billion, but the country suspended talks after the defense contractor filed a complaint with the Department of Transportation in April. US Trade UU Bombardier.
Boeing argued that Bombardier, which sold its new commercial C-series aircraft to the US company Delta Air Lines, received a competitive advantage over other companies when it received the Canadian government. ent grants The funds allowed Bombardier to significantly reduce the cost per aircraft, Boeing argued.
No US company manufactures a rival of the C series.
In response, the Department of Commerce in September imposed almost 220- percent of preliminary tariffs on the C series, but the decision The final is not until 2018.
Canadian and British officials, in turn, warned Boeing that he could lose defense contracts in countries over the complaint.
Prime Minister of Canada Justin Trudeau has said that the country "will not do business with a company that is busy trying to sue us and stopping our aerospace workers."
And British Prime Minister Theresa May even pressed President Trump Ask Boeing to withdraw the complaint, brought about by the Bombardier plant in East Belfast, Northern Ireland, which employs about 4,000 people.
When buying older Australian Super Hornets, Canada would buy a cheaper plane, it is not necessary to retrain its pilots, nor spend money on a new supply chain, a source said.
Boeing declined to comment with Reuters.
Canada was looking to buy the Boeing aircraft as a placeholder for its fleet until a competition in 2019 to replace its aging CF-18 jets.