Brazil Drops Aero Spat with Canada, Seeks Global Subsidy Pact

Brazil on Thursday ditched a trade complaint against Canada over aircraft subsidies and called for wider negotiations between all aircraft producing nations to halt a slide toward aircraft trade wars, sidestepping the World Trade Organization, Reuters reported. The abrupt move by Brazil, home to the world’s third largest planemaker Embraer, comes as larger rivals Airbus and Boeing remain locked in a 16-year-old fight at the WTO that led to tit-for-tat transatlantic tariffs. While the two giants dominate the market for large passenger jets, Brazil has for years fought its own battles over the regional jet market against Canada’s Bombardier. Their rivalry spawned its own series of mutual trade complaints. In 2017, Brazil complained to the WTO about Canadian support for the Bombardier CSeries jet, which it claimed had received $3 billion in unfair subsidies. But the dispute never progressed beyond procedural wrangling and in 2018 the loss-making CSeries was sold to Europe’s Airbus and renamed A220. Canada denies giving unfair support. <a href=”https://www.reuters.com/article/us-brazil-trade-aircraft/brazil-drops-aero-spat-with-canada-seeks-global-subsidy-pact-idUSKBN2AI1XN”>Read more.</a>