Reuters - Video

Edition: US | UK | IN | CN | JP

video Finance Videos

Brazil challenges Canada at WTO over Bombardier loans

Wednesday, February 08, 2017 - 01:21

Brazil opened a formal complaint against Canada at the World Trade Organization on Wednesday, accusing the country of distorting the global aerospace industry with subsidies for planemaker Bombardier. Fred Katayama reports.

▲ Hide Transcript

View Transcript

Brazil officially complained to the World Trade Organization, contending Canada is distorting the global aerospace industry by subsidizing Bombardier and undercutting the market for commercial jets made by Brazilian rival Embraer. Embraer said the subsidies allow Bombardier to artificially lower prices. Just the day before, the Canadian government gave Bombardier $283 million in repayable, interest-free loans for its two C Series jet programs. That's in addition to the $1 billion Bombardier got earlier from the Canadian province of Quebec. Canada promised to defend its move against any trade challenge by Brazil. Monica de Bolle of Peterson Institute for International Economics: (SOUNDBITE) MONICA DE BOLLE, SENIOR FELLOW, THE PETERSON INSTITUTE FOR INTERNATIONAL ECONOMICS, (ENGLISH) SAYING: "It's not surprising that Brazil would make such a move. Over the years, Bombardier and Embraer have been, you know, lock-headed with each other over these issues becasue Bombardier does receive a lot of subsidies from the Canadian government, but so does Embraer from the Brazilian government." Bombardier did not immediately respond to a request for comment. Brazil and Canada now have up to sixty days to try to settle the dispute. If they don't, the WTO will rule in the case.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Brazil challenges Canada at WTO over Bombardier loans

Wednesday, February 08, 2017 - 01:21