Trudeau blasts ‘billions’ in U.S. aid to Boeing as trade dispute simmers – Politics

Prime Minister Justin Trudeau waded into the dispute with Boeing on Tuesday, reminding the governor of the U.S. state where the aircraft giant is headquartered about the importance of the trading relationship with Canada. 

It’s the latest escalation in the war of words that threatens the Liberal government’s plan to buy 18 Super Hornet fighter jets as a stopgap measure for the Royal Canadian Air Force.

Trudeau spoke with Eric Greitens, the governor of Missouri, and underlined “the shared importance of the aerospace industry to both economies,” according to a statement released by the Prime Minister’s Office.

“This included a discussion on Canada’s possible purchase of Boeing’s Super Hornet fighter jets and the number of Missouri jobs that depend on the manufacturing of that aircraft.”

The high-level political move came just hours after Boeing, which has its corporate headquarters and fighter manufacturing plant in St. Louis, did a round of media interviews saying it will not back away from a trade complaint filed with the U.S. Commerce Department.

Boeing’s commercial division has been engaged in a public battle with Bombardier.

The U.S. aircraft maker accuses the Montreal aerospace company of being subsidized by the Canadian government, which allows it to sell its CSeries aircraft at well below cost. Trade regulators in Washington are expected to announce at the end of September whether to impose tariffs on Bombardier.

Boeing fires its shot

In response, the Liberal government said last spring it was reviewing its planned sole-source fighter procurement with Boeing’s military division.

A senior executive with the company said Tuesday that there was wider principle at stake, one that speaks to the future of the global aerospace industry.

“In Canada, we face a situation with a competitor, an emerging competitor, that has, yes, long received government support — but that just went beyond the pale in 2016,” Marc Allen, the president of Boeing international division, said in an interview with The Canadian Press.

“That aggressive move had to be addressed if we really believe in establishing a global architecture that will create the greatest prosperity for our industry and for us as a company in the long term.”

Trudeau responds

Trudeau was blunt in his response, saying that, “Boeing is pursuing unfair and aggressive trade action against the Canadian aerospace sector.”

The statement went on to essentially accuse the U.S. defence…

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