The United States will sell Canada $5.2 billion worth of Super Hornet jet fighters and their associated equipment, the State Department says.
The department authorized the sale on Tuesday after the Canadian government placed the order a year ago to be able to replace its aging fleet of F-18S.
"This proposed sale will contribute to the foreign policy and national security objectives of the United States by helping to improve the security of a NATO ally which has been, and continues to be, a key democratic partner," the State Department said in a statement
As part of the deal, Canada will buy ten F/A-18E Super Hornet aircraft with F414-GE-400 engines, and eight F/A-18F Super Hornet aircraft with F414-GE-400 engines.
In addition, the country will purchase various weapons systems, spare parts, flight gear, and material support.
“The acquisition of the F/A-18E/F Super Hornet aircraft, associated weapons and capability will allow for greater interoperability with U.S. forces, providing benefits for training and possible future coalition operations in support of shared regional security objectives,” the statement added.
The deal, however, might depend on the resolution of a separate trade dispute as the aircraft's manufacturer Boeing had previously filed a lawsuit against Canadian aerospace firm Bombardier
Canadian Prime Minister Justin Trudeau warned he could cancel the deal if Boeing does not drop its Washington-backed anti-dumping suit filed in spring.
Boeing lodged the suit claiming that it sold its CS100 aircraft below its manufacturing costs after receiving over $3 billion in public subsidies.
Bombardier sold American Delta Airlines 75 CS100 aircraft for $19.6 million, despite manufacturing costs of $33.2 million, Boeing alleged.
The federal government no longer talks directly to Boeing about the Super Hornet acquisition over the dispute, but, under the process known as a "foreign military sale," the Canadian government is officially a client of the US government in this ongoing acquisition.
"We understand the formal Congressional notification process has started. At this time we must defer to the US government on any official details, but we are encouraged by the U.S. government's support for this important capability in the defense of North America," Boeing said in a statement on Tuesday.
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