Brazil request the World Trade Organization to set up a dispute settlement panel to rule on its complaint that Canada has hurt Brazil’s commercial jet industry by subsidizing CSeries planes made by Bombardier, the foreign ministry said.
Brazil estimates the CSeries aircraft has received an estimated $3 billion in federal, provincial and local subsidies, the ministry said in a statement on Thursday.
The Bombardier jets compete with the E195 aircraft made by Brazil’s Embraer SA.
“In the Brazilian government’s opinion, the high subsidies granted by Canada to Bombardier resulted in serious damage to Brazil’s airplane industry and several of the programs involve subsidies banned by WTO rules,” the statement said.
Brazil said consultations with Canada had not led to a solution to the dispute, and it expects its request for a WTO panel to be taken up at a meeting of the organization’s dispute settlement body on Sept. 29.