Canada gives $372.5m to Bombardier, Brazil takes it to WTO
It provides over 211,000 quality jobs for Canadians and $28 billion annually in GDP to Canada’s economy.
That is why the Government of Canada announced that it will provide $372.5 million in repayable contributions to Bombardier.
This funding will be provided over four years and will support thousands of good middle-class jobs, strengthen the long-term competitiveness of Bombardier and help to build the aircraft of the future.
Through its collaboration with Bombardier, the Government of Canada is investing in thousands of Canadians and hundreds of suppliers across the country.
As the nation’s largest aerospace company, Bombardier supports thousands of jobs in design, engineering and manufacturing through its nation-wide supply chain of companies.
This initiative by the Government of Canada will fund research and development for the new Global 7000 business jet and ongoing activities related to the development of the company’s C Series aircraft.
Brazil opened a formal complaint against Canada at the World Trade Organization (WTO) on Wednesday, accusing the country of distorting the global aerospace industry with subsidies for planemaker Bombardier Inc .
Brazil has threatened for months to open the WTO process, arguing that support for Bombardier's new CSeries was undercutting the market for commercial jets made by Brazilian rival Embraer SA.
Brazil's Foreign Ministry cited news of additional subsidies for Bombardier in a statement on Wednesday, criticizing "at least $2.5 billion in government support" for the Canadian planemaker.
"It is the understanding of Brazil that these Canadian subsidies artificially affect international competitiveness," the Brazilian ministry said in a statement. "New support that has been announced could further deepen the distortions in the aeronautical sector in detriment to Brazilian interests."
The province of Quebec, where Bombardier is based, injected $1 billion into the company's CSeries program. The province's largest pension fund invested $1.5 billion in the company's rail unit last year. ■