Rival manufacturers Bombardier and Embraer will complete their presentation of written submissions by 15 December to the World Trade Organisation (WTO) over a long-running wrangle involving the alleged use of subsidies to sell regional aircraft.
The manufacturers have made a formal submission and rebuttal to the two WTO dispute settlement panels tasked with resolving the claim and counter claims by Brazil and Canada. The panels have each since asked Bombardier and Embraer to submit follow-up clarifications.
Bombardier alleges that PROEX export financing from the Brazilian Government is subsidising the price of Embraer RJ-145 regional jets by up to $2.5 million per aircraft. Embraer counters that Canadian state and provincial government aid to Bombardier of between $2.6 and $3.2 million per aircraft for its competing CRJ contravenes Article 3 of the WTO's "agreement on subsidies and countervailing measures".
The panels, established in late October, will complete their report on March 5, with findings and conclusions binding on both manufacturers. The outcome could affect the price of all un-delivered ERJ-145 and CRJ aircraft, including those already ordered.
The WTO will issue the two sides with a confidential "descriptive" portion in mid-January, followed by an interim report on 10 February for comment.
Source: Flight International
