MONTREAL, March 17 (Reuters) - Bombardier CEO Eric
Martel said on Monday he was concerned Washington could target
the company's U.S. contracts if Canada cancels a C$19-billion
contract for 88 Lockheed Martin F-35 fighter jets.
Canada, locked in a trade war with the United States, is
reviewing the contract for the jets.
"Effectively, we could be targeted, this is my concern,"
Martel told reporters in Montreal after a speech.
Last October, Bombardier's defense arm announced the
delivery of an eighth jet to the United States Air Force as part
of a deal with a potential value of $465 million. The aircraft
carry specialized communications platforms.
Martel said if the U.S. did impose tariffs that affect the
company's deliveries, one option for Bombardier would be to
focus on deliveries first to non-U.S. clients, given it has a
long order backlog.
He said he does not see U.S. tariffs on planes as likely or
lasting a long time if applied.
Canada's Defense Ministry, acting on a request from new
Prime Minister Mark Carney, said it has made a legal commitment
of funds for the first 16 F-35 aircraft but cited "the changing
environment" as the reason for the review.
"I am there to defend Bombardier, but I understand why the
new prime minister is asking these questions," Martel said.