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Canada seeks to resolve Gulfstream dispute after Trump threat

Mathieu Dion & Brian Platt / Bloomberg
Mathieu Dion & Brian Platt / Bloomberg • 2 min read
Canada seeks to resolve Gulfstream dispute after Trump threat
The Canadian government says it is working to address certification issues for some of Gulfstream jets after President Donald Trump threatened to slap a 50% tariff on aircraft from Canada sold in the US.
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(Feb 4): The Canadian government says it is working with the US Federal Aviation Administration (FAA), General Dynamics Corp and Bombardier Inc to address certification issues for some of Gulfstream’s private jet models after a complaint made by President Donald Trump.

The Transport Department said in an emailed statement that it seeks “to resolve outstanding certification matters in a way that protects safety and regulatory integrity, while maintaining market access on both sides of the border”.

Transport Minister Steven MacKinnon told reporters in Ottawa on Tuesday that he does not interfere in aircraft certification, but he has communicated with the manufacturers in this case.

“To the extent that any ambiguities or misunderstandings may have existed, I think they’ve been dissipated,” he said.

Trump threatened last week to impose a 50% tariff on aircraft from Canada sold in the US and decertify all new Canadian-made planes until Ottawa agreed to approve certain jets made by Gulfstream, a unit of General Dynamics. Canada had “wrongfully, illegally, and steadfastly refused to certify the Gulfstream 500, 600, 700, and 800 Jets,” he said in a social media post on Thursday.

Transport Canada has declined to comment on the certification status of these models, despite multiple requests.

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FAA administrator Bryan Bedford said on Monday that “our concern is whether or not sufficient resources are being applied to US products equal to the resources that we’re applying to certify foreign products..

Trump’s threat has cast significant uncertainty over Quebec private-jet maker Bombardier, which sells most of its aircraft in the US. The firm’s shares have been recovering since a drop on Friday, and were up 2.67% at 11.12am Toronto time on Tuesday.

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