World Bulletin / News Desk
Canada will purchase used fighter jets from Australia, the government said Tuesday.
The announcement shoots down a deal Canada had considered to buy 18 new Super Hornets from Boeing, but killed the idea because the American aerospace giant filed a challenge to Canadian aircraft manufacturer Bombardier.
The challenge was backed by the U.S. government when it slapped a 300 percent duty on any Bombardier-made passenger jets sold in the American market.
That situation caused the Canadian government to say Boeing was “no longer a trusted partner” – the canceled deal was worth about CAN$19 billion.
There was no price tag announced for the Australian deal which will see the used jets begin arriving in 2019 as a stop-gap measure until Canada launches a competition to replace its fleet of aging jets with 88 new aircraft.
That new purchase will be worth between CAN$20 billion and $26 billion and a contract is expected to be awarded in 2022.
But the government also announced a new wrinkle in the contract -- a clause that says any companies that bid will now be assessed on their economic effect on Canada.
“Applications will be rigorously assessed on cost, technical requirements and economic benefit,” Procurement Minister Carla Qualtrough said at a news conference Tuesday. “Our government feels it is important to maximize economic impacts; as such, the evaluation of bids will also include an assessment of bidders on Canada’s economic interests.
“Bidders responsible for harming Canada’s economic interests will be at a distinct disadvantage compared to bidders who aren’t engaged in detrimental behavior,” she added.
It was clearly a warning based on the trade dispute with Boeing.
The company argued Bombardier was guilty of dumping passenger aircraft on the American market at low prices thanks to subsidies from the Quebec government.
Canadian officials were livid over the Boeing challenge, but the Chicago-based company refused to drop its objections.
The American government, however, must still approve the Australian jet sale to Canada, because although the CF-18s are nearly three decades old, they are still considered advanced warplanes that were manufactured in the U.S.A.
Defense secretary remarks come after a meeting with Crown Prince of Saudi Arabia at Pentagon
The latest crisis laying siege to the leading online social network has raised the specter that he has lost control of his creation and been naive about the unintended consequences of people sharing so much about themselves.
Lawmakers stared down a self-imposed deadline of midnight Friday, when federal funding was set to expire, and passed the mammoth package by a vote of 65-32, with hours to spare.
Allowing Peshmerga to vote twice in upcoming polls would violate Iraq’s national charter, Turkmen politician asserts
Case against Turkish President’s seven bodyguards over brawl in Washington was dismissed, says lawyer
Antonio Guterres says one in four people will live countries where lack of fresh water will be chronic or recurrent by 2050
Energy secretary says US should get ahead before Russia or China builds civil nuclear capability in the Kingdom
Negative impact on Chinese gowth would be greater if US expands tariffs and protectionist measures, rating agency warns
'We look forward to continuing our conversations' with Turkey, Heather Nauert says
Trump took to Twitter to announce the latest in a cascade of staff changes, one which calls the future of a landmark deal to curb Iran's nuclear program into serious doubt.
Humanitarian Relief Foundation has provided water to over 3M people across 36 countries
Before his removal by the Malta Financial Services Authority (MFSA) on Wednesday evening Iranian Ali Sadr Hashemi Nejad was the head of Pilatus, the bank at the heart of a corruption scandal exposed by murdered Daphne Caruana Galizia.
Gunfight erupts between Hamas security forces and suspected perpetrators of Jan. 13 attempt on PM’s life
Foreign Ministry urges Iraqi officials to take necessary measures to eliminate security threats against Iraqi Turkmen
Terrorists plotting attack on Turkish military bases have been hit
Pedro Pablo Kuczynski tenders his resignation a day before congress was due to start impeachment proceedings