Ottawa delivers aerospace threat ahead of NAFTA talks – Stockhouse

The federal government has hinted that Boeing (NYSE: BA, Forum) should not take future military contracts with Canada for granted. According to a report by The Canadian Press, the threat coincides with a spat between the aerospace giant and rival Bombardier Inc. (TSX: T.BBD.A, Forum).

Foreign Affairs Minister Chrystia Freeland’s comment that Ottawa is “reviewing current military procurement that relates to Boeing” appears to be a hint that the government would revisit its purchase of Super Hornets.

Freeland’s comments came as the next potential Canada-U.S. trade dispute unfolded Thursday with the aerospace giants clashing at a Washington hearing, The Canadian Press said.

“The U.S. market is the most open in the world, but we must take action if our rules are being broken,’’ U.S. Commerce Secretary Wilbur Ross said in a statement after the hearing began into Boeing’s claim that Bombardier received subsidies allowing it to sell its CSeries planes at below-market prices.

Boeing has petitioned the U.S. Commerce Department and the U.S. International Trade Commission to investigate subsidies of Bombardier’s CSeries aircraft that it says have allowed the company to export planes at below cost.

A preliminary determination on the petition is expected by June 12.

The dispute has emerged after Washington said it wants to give a the North American Free Trade Agreement a massive overhaul in talks that will begin this summer.

U.S. Trade Representative Robert Lighthizer sent Congress the White House’s formal notice on Thursday morning to begin negotiations with Canada and Mexico for a new trade deal.

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