The World Trade Organisation (WTO) is poised to rule that rival regional aircraft manufacturers Bombardier of Canada and Embraer of Brazil both benefited from illegal subsidy payments, according to Canadian newspaper reports.
If the ruling is confirmed, it could ultimately benefit Bombardier, since it received smaller subsidies and would therefore be less affected by any repayment stipulation or a moratorium on further funding.
The WTO is due to deliver its verdict on complaints from the Canadian and Brazilian governments this month, while an interim document has already been sent to Ottawa and Brasilia from the organisation's base in Geneva, Switzerland. Montreal newspaper reports say it reveals that both actions will be upheld.
Bombardier received about C$125 million ($83 million) in repayable government loans from the Technology Partnerships Canada programme. Embraer was granted C$4.5 billion in ProEx export rebates and incentives, according to Bombardier figures, which Embraer has not disputed.
Source: Flight International
