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Brazil ends dispute with Canada over subsidy for executive jets

Brazil announced the decision to end a dispute with Canada involving subsidies for the aeronautical constructor Bombardier and which would cause significant losses for Embraer. The Brazilian delegation submitted to the World Trade Organization (WTO) the request to close the litigation initiated in 2017, claiming that the situation in the regional jet market has changed a lot since then. In a note, the Foreign Ministry explained that Brazil was questioning in the WTO “the massive subsidies” granted by the governments of Canada and Québec to the launch, development, and production of C-Series aircraft by Bombardier, considering that the more than USD 3 MM transferred the company distorted the competitive conditions in the commercial aviation market and caused serious losses to Embraer. “Brazil remains convinced of the solidity of the arguments presented in the case”, says the note from the Itamaraty. “However, WTO litigation has proved ineffective to remedy the effects of granting subsidies on such a large scale to the commercial aviation sector. Today, this sector is fundamentally different from the one that existed when the litigation was started”. –