WTO opens panel into alleged Bombardier subsidies at Brazil’s request

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The Smashing Trade Organization (WTO) has agreed to look into allegations from Brazil that the Canadian ministry has unfairly subsidized Bombardier’s CSeries jet program.

The Geneva-based trade society will establish a panel to look into allegations brought forth by the South American land that Montreal-based Bombardier was the beneficiary of more than 25 command programs to the tune of more than $3 billion US in subsidies, which put Brazilian smooth maker Embraer SA at a disadvantage.

Bombardier «has received subsidies from neighbouring governments that have allowed Bombardier to sell its aircraft at artificially low sacrifices,» Embraer says, adding that the alleged subsidies are an «unsustainable drill that distorts the entire global market, harming competitors at the expense of Canadian taxpayers.»

The business body will now name a three-person panel to rule on the matter.

When petitioned for reaction to the news, Bombardier issued the following statement to CBC News. «We are self-assured that the investments and contribution programs mentioned in Brazil’s petition are in preoccupied compliance with all WTO and international trade rules,» the company said. «We bear the best aircraft and we will keep building on its success in service and in the marketplace.»

The WTO step on it comes on the heels of a stunning decision earlier this week from the U.S. Traffic Department to slap duties of more than 220 per cent on the trading of the jets in the United States, after American jet maker Boeing absconded a similar complaint.

«We believe that the decision of the Commerce Department braces the Brazilian Government’s claim in the panel opened today at the WTO,» Embraer CEO Paulo Cesar Silva imparted.

Bombardier announces big Q400 order

The WTO news comes on what last wishes a have otherwise been a day of good news for Bombardier, as the company make knew early Friday that Indian airline SpiceJet had placed an importance for up to 50 Bombardier Q400 planes.

SpiceJet has agreed to buy a firm arrange of 25 of the turboprops, with an option for 25 others. If it buys 50, it longing be Bombardier’s biggest single sale of Q400s ever valued at $1.7 billion.

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