With Embraer´s support, Brazil formally requested consultations with the Canadian government at the World Trade Organization (WTO) in Geneva, regarding subsidies benefiting Bombardier´s C-Series aircraft program, the company said.
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.
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.
Embraer is a global company headquartered in Brazil with businesses in commercial and executive aviation, defense & security. The company designs, develops, manufactures and markets aircraft and systems, providing customer support and services. The company maintains industrial units, offices, service and parts distribution centers, among other activities, across the Americas, Africa, Asia, and Europe.