Tehran reached an agreement on January 16 with the French Airbus Group SE to buy 114 planes for its Iran Air national carrier company.
"If Airbus is able to do it, why can't Bombardier be able to do it? How does it help Canada, or the Iranian people, or Israel, or anyone, if Canada is hurting its own industry?" Stéphane Dion told reporters in the House of Commons.
Dion confirmed Canada's intention to allow Bombardier to do "legitimate business" with Iran when economic barriers are lifted.
The Conservative Party in Canada was the main opponent of lifting current sanctions against Iran that prevent Bombardier from participating in deals with the country, according to Dion.
Despite encouraging moves of economic cooperation, Prime Minister Trudeau stressed that Canada is still "suspicious" of Iran, cautiously allowing that Canada is not yet an ally of Iran.
"Canada will lift its sanctions but what Canada will maintain is our suspicion of a regime… that must not return to (trying to obtain) nuclear weapons," Dion told the House of Commons, just before speaking to journalists.
The Canadian cabinet considers that sanctions could be lifted in the next two months, Trudeau said last week.