Trudeau Threatens to Halt Boeing F-18 Deal on Bombardier Dispute

Article: Trudeau Threatens to Halt Boeing F-18 Deal on Bombardier Dispute by Josh Wingrove, Robert Hutton, and Frederic Temesco

The article “Truedeau Threatens to Halt Boeing F-18 Deal on Bombardier Dispute” written by Josh Wingrove, Robert Hutton, and Frederic Tomesco discusses how the Canadian government is standing ground and threatens to halt the fighter airplane purchase from Boeing as a result of current disputes with the Canadian grown company, Bombardier. The article further mentions that the deal for the purchase of 18 F-18 Hornet Fighter Jets would cost the Canadian government $5.23 billion which would further aid in the expansion of the current Canadian military forces fleet. However, because Boeing is alleging that the Canadian government is “illegally subsidizing Bombardier’s C Series commercial airliner program”, the Canadian government is halting the purchase of the fighter jets as a means of retaliation to protect Canada’s aerospace program.  Boeing claims that the alleged illegal subsidizing of Bombardier’s C Series program is causing prices in of the planes to be sold at dramatically low prices. Further, the article mentions that the threat to halt the purchase will continue until Boeing “drops its challenge of the C Series program.”

 As the a means of supporting and keeping the aerospace industry in Canada alive, I believe the investment to Bombardier is beneficial to the Canadian economy as a whole.  The government investment into Bombardier boosts injection into the circular flow, which leads to increased income on the national level.

References

Wingrove, M., Hutton, M. and Tomesco, M. (2017). Trudeau Threatens to Halt Boeing F-18 Deal on Bombardier Dispute. [online] Bloomberg.com. Available at: https://www.bloomberg.com/news/articles/2017-09-18/trudeau-says-canada-won-t-buy-boeing-jets-amid-bombardier-fight [Accessed 21 Sep. 2017].