For several years now, a dispute over subsidies has been raging between Boeing and Airbus via the World Trade Organization. Bombardier and Embraer were also quarreling, but the Brazilian government has now decided to withdraw the complaint against Canada.
Embraer stated in an initial reaction that the decision is welcomed and that more effective ways are seen. The aircraft manufacturer accused Bombardier that the Canadian government and the Quebec region had made illegal subsidies for the CSeries program. This has meanwhile been sold to Airbus and, with the exception of a few business jet programs, Bombardier withdrew completely from aircraft construction.
Embraer believes that government subsidies distort competition. In the Bombardier case, however, the framework conditions have changed, because the CSeries is now owned by Airbus and is known under the brand name A220. A plant was also set up in the United States. The Brazilian competitor, whose cooperation with Boeing ended last year, now considers the WTO complaint against Canada to be no longer effective and therefore welcomes the government's decision. Now you want to negotiate bilaterally. The goal is to create globally uniform competitive conditions.