Embraer Supports Brazil’s WTO Challenge To Canada

Embraer has expressed support for Brazil to initiate dispute settlement proceedings against Canada at the World Trade Organization for subsidies to Bombardier.

Embraer said the decision to take the case to the WTO was of “strategic importance”.

“The dispute settlement proceedings involve subsidies of over USD$4 billion provided by Canada to Bombardier,” Embraer said in a statement. “In 2016 alone, USD$2.5 billion have been provided to the Canadian manufacturer.”

Brazil believes that Canadian subsidies to Bombardier enabled the company to survive and allowed it to sell aircraft at “artificially low prices.” The process distorts the commercial aircraft market and violates Canada’s WTO obligations, the Embraer release states.

After diplomatic attempts to resolve the issue, Embraer said that “the formal dispute settlement process at the WTO is the only means to ensure a level playing field in the market.”

“Canadian subsidies have caused significant market distortions and are not in compliance with international trade rules,” Embraer’s chief executive Paulo Cesar Silva said.