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Report: Canada will abandon plans to purchase Boeing fighters

Canada is shelving plans to procure 18 Super Hornet jets from Boeing Co. as its dispute with the U.S.-based aerospace company deepens, Reuters reported, citing three sources familiar with the matter.

Relations between Ottawa and Boeing deteriorated when the latter launched a trade challenge against Canadian plane maker Bombardier Inc., which was slapped with a punitive duty by the U.S. government as a result of the complaint. CBC news reported in September that the deal would have been worth about $6.3 billion.

The Canadian government, which previously saw a deal for the Boeing jets as a stopgap measure as it considers ways to replace its fleet, halted talks with the U.S. company and is now pursuing an older fleet of Australian F-18 jets, similar to ones it is currently using, the publication noted. Australian military officials held talks on the matter in Ottawa in the later part of November, the sources added.

The offices of Public Works Minister Carla Qualtrough and Defense Minister Harjit Sajjan declined to comment on the matter. Boeing was not immediately available to comment on the development.