São Paulo, Brazil, September 29, 2017 – Embraer supports the establishment of the panel at the World Trade Organization (WTO) in Geneva to examine more than US$ 3 billion in subsidies Bombardier received from the Governments of Canada and Quebec. With today’s approval of the request made by the Brazilian government, a WTO panel will investigate more than 25 programs that benefited the company.
The establishment of the WTO panel comes in the same week that the United States Department of Commerce (DoC) issued a preliminary determination condemning Canadian government subsidies to Bombardier. On September 26, the DoC found such subsidies to justify the imposition of a 219% duty on imports of C-Series aircraft into the United States.
“We believe that the decision of the Commerce Department reinforces the Brazilian Government's claim in the panel opened today at the WTO,” said Paulo Cesar Silva, Embraer's CEO. “The Canadian company has received subsidies from local governments that have allowed Bombardier to sell its aircraft at artificially low prices. These subsidies, which have been fundamental to the development and survival of the C-Series program, are an unsustainable practice that distorts the entire global market, harming competitors at the expense of Canadian taxpayers. In order to ensure that competition in the commercial aviation market continues to be between companies, and not governments, it is essential to restore a level playing field, respecting fair trade conditions.”
The Brazilian Government’s understanding, shared by Embraer, is that the subsidies provided by the Canadian government are inconsistent with Canada’s WTO obligations.