With Embraer’s support, Brazil formally requested consultations with the Canadian Government at the World Trade Organization (WTO) today, in Geneva, regarding subsidies benefiting Bombardier’s C-Series aircraft program.
Brazil’s request for consultations highlights the wide range and massive scale of subsidies provided to Bombardier, amounting to over USD 4 billion in support, from the Canadian national, provincial, and local governments. In 2016 alone, over USD 2.5 billion was provided to the Canadian aircraft manufacturer.
“The subsidies that the Canadian company has already obtained and continues receiving from the Canadian government have not only been fundamental in the development and survival of the C-Series program, but have also allowed Bombardier to offer its aircraft at artificially low prices,” said Paulo Cesar Silva, Embraer’s CEO. “It is essential to restore a level playing field to the commercial aircraft market and ensure that competition is between companies, not governments.”
In December 2016, the Council of Ministers of the Brazilian Foreign Trade Chamber (CAMEX) had authorized the opening of dispute settlement proceedings against Canada. The request for consultations is the first stage of this proceeding and will allow access to additional information regarding the support given to Bombardier. The Brazilian Government’s understanding, shared by Embraer, is that the Canadian Government’s subsidies to Bombardier violate Canada’s WTO obligations.
São Paulo, Brazil, February 8, 2017