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U.S. trade envoy says Bombardier dispute with Canada does impact relations

OTTAWA, Sept 27 (Reuters) - Canada raised its unhappiness over a U.S. decision to impose preliminary subsidies on Bombardier Inc's CSeries jets during NAFTA talks on Wednesday, U.S. Trade Representative Robert Lighthizer said, a day after the U.S. accused Canada of unfairly subsidizing the aircraft.

Asked whether the Bombardier dispute could affect talks on modernizing NAFTA, Lighthizer told reporters: "I'm not saying it doesn't have an effect on relationships, it does, but not on this negotiation."

The U.S. slapped preliminary anti-subsidy duties on Bombardier's CSeries jets after rival Boeing Co accused Canada of unfairly subsidizing the aircraft, a move likely to strain trade relations between the neighbors.

(Reporting by Lesley Wroughton; Editing by Nick Zieminski)