Title : Could A U.S. - Canada Arms Deal Spark A Trade War?
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Could A U.S. - Canada Arms Deal Spark A Trade War?
Capt. Matthew Kutryk, Royal Canadian Air Force pilot, flies a specially painted CF-18 Hornet commemorating Canada’s 150th Anniversary of Confederation during the Wings Over Wayne Air Show, May 21, 2017, at Seymour Johnson Air Force Base, North Carolina. (Airman 1st Class Christopher Maldonado/U.S. Air Force)
Defense News: Canadian-US Super Hornet dispute could spark trade war
WASHINGTON — Last week’s determination by the U.S. Commerce Department to impose prohibitive tariffs on aircraft from Canadian aerospace firm Bombardier could be the spark that ignites a long and bloodthirsty trade war involving the United States, Canada and United Kingdom.
And although the Boeing-Bombardier dispute revolves around commercial planes, the impact on the U.S. defense industry has the potential to be huge, analysts tell Defense News.
Tensions remain high between the United States and Canada after the U.S. Commerce Department proposed a 219 percent tariff on Bombardier’s C series aircraft on Sept. 26. And a separate, additional tariff of about 80 percent, announced Oct. 6, is sure to ratchet up the disagreement even more.
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WNU Editor: President Trump and Prime Minister Trudeau are to meet on October 11, and the call in Canada is to be tough to the President .... Trudeau’s Washington mission: Don’t play cute with Trump (Lawrence Martin, Globe and Mail). My expectation is that I do not think this is going to go down well. Aside from the ideological differences, there are fundamental differences between the two countries on what a future trade arrangement should look like. Another problem is that Canada needs fighter jets to replace the fleet that it already has. The F-35 has been ruled out (at least for now), and with the F-18 purchase put on hold (if not cancelled) .... the alternatives on what Canada can procure are very limited. In my opinion having defense planning and purchases tied in with trade issues is not good policy .... but that is what we have in Canada.
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