Brazil aerospace firm admits to subsidies

Article Abstract:

Embraer, an aircraft manufacturer based in Brazil, has admitted that it has continued to be a recipient of the Proex, a government subsidy program that gives Embraer low financing rates, despite its suspension in a deal in Canada. Proex is the subject of contention between Brazil and Canada relating to Bombardier Inc.'s antitrust complaint against Embraer. Embraer CEO and president Mauricio Botelho, however, debates that the Proex rates are justified and legitimate considering the high commercial rates in Brazil due to its political risk and that the rates should be considered as an equalization rate that offsets the market situations overseas and not as a subsidy per se.

Comment:

Admits its continued receipt of Proex, a govt subsidy program that gives firm low financing rates, despite suspension of program

Receipt of funds, Article, Embraer

---

Aerospace subsidies illegal: WTO

Article Abstract:

The World Trade Organization (WTO) has ruled that both Canada and Brazil are using illegal subsidies to finance their respective aerospace industries. The WTO report stated that Canada's C$300-million-a-year Technology Partnership Program and the C$3-billion Canada Account for export financing are prohibited for the aerospace industry. The report also cited Brazil's Proex export financing programs as illegal. Both countries have complained before the WTO that the other has unfairly subsidized regional aircraft, built by Bombardier Inc. in Canada and by Embraer S.A. in Brazil.

Canada, International economic relations

---

Similar abstracts:

• Abstracts: Carrier seeks to avoid layoffs. Loonie slides close to its all-time low. Universal benefits hurt neediest, parents say
• Abstracts: Brazil gets final order to eliminate jet subsidy. WTO ruling may favour Brazil
• Abstracts: Megawheelss loss more than doubles. NetZero invades Canada with free Net access. Gearunlimited slashes staff

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.