The Clique Trade Organization (WTO) has agreed to look into allegations from Brazil that the Canadian administration has unfairly subsidized Bombardier’s CSeries jet program.
The Geneva-based trade heart will establish a panel to look into allegations brought forth by the South American state that Montreal-based Bombardier was the beneficiary of more than 25 superintendence programs to the tune of more than $3 billion US in subsidies, which put Brazilian flat maker Embraer SA at a disadvantage.
Bombardier «has received subsidies from townsperson governments that have allowed Bombardier to sell its aircraft at artificially low payments,» Embraer says, adding that the alleged subsidies are an «unsustainable procedure that distorts the entire global market, harming competitors at the expense of Canadian taxpayers.»
The work body will now name a three-person panel to rule on the matter.
When provoke b requested 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 all-encompassing compliance with all WTO and international trade rules,» the company said. «We possess the best aircraft and we will keep building on its success in service and in the marketplace.»
The WTO rush comes on the heels of a stunning decision earlier this week from the U.S. Trafficking 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 designate a similar complaint.
«We believe that the decision of the Commerce Department buttresses the Brazilian Government’s claim in the panel opened today at the WTO,» Embraer CEO Paulo Cesar Silva broke.
Bombardier announces big Q400 order
The WTO news comes on what inclination have otherwise been a day of good news for Bombardier, as the company notified early Friday that Indian airline SpiceJet had placed an body for up to 50 Bombardier Q400 planes.
SpiceJet has agreed to buy a firm requisition of 25 of the turboprops, with an option for 25 others. If it buys 50, it thinks fitting be Bombardier’s biggest single sale of Q400s ever valued at $1.7 billion.