Brazil and Embraer open dispute settlement proceedings against Canada and Bombardier

The Brazilian government has had shared concerns with Embraer that the Canadian government’s subsidies to Bombardier violate Canada’s World Trade Orgainization (WTO) obligations. In December 2016, the Council of Ministers of the Brazilian Foreign Trade Chamber (CAMEX) authorized the opening of dispute settlement proceedings against Canada.
At the WTO in Geneva (Wednesday, Febr. 9), Brazil formally requested consultations with the Canadian government concerning the subsidies which have directly benefitted Bombardier’s C-Series program. The request for consultations is the first stage of the dispute settlement and will allow access to additional information regarding the support given to Bombardier.
Concerns are specifically focused on subsidies provided to Bombardier by the Canadian national, provincial and local governments, which extend to in excess of US$4 billion, with over US$2.5 billion provided to the Canadian plane manufacturer in 2016 alone.
According to Paulo Cesar Silva, Embraer’s CEO: “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. It is essential to restore a level playing field to the commercial aircraft market and ensure that competition is between companies, not governments.”