Embraer Welcomes Brazil's Decision to Withdraw WTO Dispute with Canada

Embraer has welcomed the Brazilian Government’s decision to withdraw its ongoing World Trade Organization (WTO) dispute with Canada regarding aeronautical subsidies and to launch negotiations on more effective disciplines to regulate government support in the commercial aviation segment.

At the WTO, Brazil challenged more than USD 3 billion in subsidies that the Governments of Canada and Quebec provided to Bombardier for the launch, development and production of the C-Series program.

Those subsidies, Brazil argued, distort the conditions of competition in the global market for commercial aircraft, causing serious prejudice to Embraer, in clear violation of WTO rules.

Bombardier has since transferred the C-Series program (now called A220) to Airbus, which has a second assembly line in the United States.

Embraer says it supports Brazil’s initiative to launch negotiations for more effective disciplines on government support in the commercial aviation segment as previously seen with the successful experience of the OECD’s Aircraft Sector Understanding (ASU), signed in 2007 to regulate export credits.

In a statement issued on Thursday, Embraer said that commercial aircraft manufacturers "should compete against each other based on the merits of their product, not on the amount of funding they receive from their governments".

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