Air Transport World

Fight continues between Embraer and Bombardier.(Brief Article)

Brazil and Canada are continuing their squabble over aircraft subsidies given to their respective regional jet manufacturers, Embraer and Bombardier, despite revisions to support programs both sides claim to have made. Each country has requested that the World Trade Organization set up a new panel to determine whether its trade support programs now comply with WTO rules. Predictably, each claims that it is in compliance and the other is not.

One thing to note: Bombardier's hardball tactic of enlisting the aid of US Congressmen who represent states and districts in which the Canadian manufacturer does business doesn't appear to be working, at least not yet. In similar letters sent to the Departments of Treasury, Commerce, Transportation and the Office of the US Trade Representative, the five US Representatives in effect urged the Clinton Administration to link IMF funding for Brazil to compliance with the WTO rulings concerning Brazil's ProEx export subsidy program for Embraer regional aircraft. …

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