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The Brazilian government will request that the World Trade Organization's (WTO) Dispute Settlement Body to set up a panel to discuss the case against Canada related to subsidies given by the North American country to the aviation sector, benefiting Bombardier's C-Series program, which competes with Brazil's Embraer.
The WTO will be requested to examine more than 20 programs of subsidies granted by Canada to the aviation sector of the country directly or indirectly related to the development of the new Bombardier family of aircraft in the context of the C-Series program. The Brazilian government questions if the subsidies are compatible with WTO rules.
According to the Brazilian Foreign Ministry, technical studies prepared by Brazil estimate that in the last decade Bombardier and C-Series suppliers received subsidies equivalent to more than US$ 3 billion, which resulted in serious damage to the Brazilian aviation industry and programs involving subsidies prohibited by WTO rules.
Under the WTO rules, the Canadian government may object to this first request. In that case, the establishment of the panel will occur automatically at the next meeting of the international organism, on September 29.
"The Brazilian government hopes that the litigation will allow the rebalancing, as soon as possible, of the conditions of international competitiveness in the aviation sector, artificially affected by the Canadian subsidies," said Brazil's Foreign Ministry.
