Economy

Brazil submits petition to WTO on Canada subsidies for Bombardier

Brazil claims losses to national industry were substantial

Agência Brasil

Published on 14/12/2018 - 16:13

Brasília

The Brazilian government will submit to the created by the Dispute Settlement Body of the World Trade Organization (WTO) this Friday (Dec. 14) the first written petition in the case about Canadian subsidies for Bombardier, according to Brazil’s Foreign Ministry.

The ministry reported that Bombardier and C-Series suppliers received subsidies equivalent to an estimated $4 billion. The bulky subsidies granted by Canada to Bombardier brought substantial losses to Brazilian aircraft industry.

Canada is now expected to respond to the petition by March 6, 2019. The first hearing between the parties is slated to be held on May 15 and 16, 2019.

The case was initiated in 2007 and scrutinizes the subsidies granted by the Canadian government to the aircraft sector, particularly the C-Series program of company Bombardier, at federal, province, and local levels.

The Brazilian government expects the motion to restore the balance in the sector’s international competitiveness, the ministry said.