Brazil has secured backing from the World Trade Organization (WTO) to press its claims against Canada in a dispute over what it says are unfair subsidies for Bombardier Inc.'s CSeries aircraft, according to a preliminary WTO ruling released Tuesday (17.4.2018).
Brazil filed the complaint with the WTO last year, alleging that the CSeries received $3.000 billion in federal, provincial and local subsidies.
Canada later objected, saying that Brazil had expanded its complaint to include four claims that went beyond its original complaint.
Brazil said it learned of the four initiatives only later, when the United States was investigating possible Canadian subsidies, and said their inclusion does not change the essence of the dispute.
The United States imposed heavy tariffs on CSeries aircraft last year in a damaging trade dispute with Boeing, leading to a sale of 50,01% of the CSeries to Airbus, Europe's largest aerospace group.
In its preliminary ruling on the case, the three-person WTO dispute panel rejected Canada's argument.
"The panel agrees with Brazil that the four measures at issue are consistent with the magnitude and essence of the dispute as described by Brazil, such that the scope of the dispute is not expanded by Brazil's panel request.", says the rpreliminary solution.
Canada also argued that Brazil did not identify specific payments from the Aerospace Technology Centre (CTA), the National Research Council (NRC) or the Natural Sciences and Engineering Research Council of Canada (NSERC).
But the WTO panel also rejected that argument.
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