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===Government subsidy controversies=== ==== Embraer ==== {{main|Bombardier Aerospace and Embraer S.A. government subsidy controversy}} Brazil and Canada engaged in an international, adjudicated trade dispute over government subsidies to domestic aircraft manufacturers in the late 1990s and early 2000s. The [[World Trade Organization]] decided that Brazil ran an illegal subsidy program, Proex, benefiting Brazilian manufacturer [[Embraer]] from at least 1999β2000; and that Canada illegally subsidized its indigenous regional airliner industry.{{cn|date=February 2025}} In late September 2017, the World Trade Organization announced that it would consider Brazil's complaint filed in February, including allegations that the Canadian government unfairly subsidized the CSeries.<ref>{{cite web |url=http://business.financialpost.com/transportation/bombardiers-bad-week-continues-with-wto-set-to-investigate-brazils-complaint-over-subsidies |title=Bombardier's bad week continues with WTO set to investigate Brazil's complaint over subsidies |work=Financial Post |date=29 September 2017 |access-date=12 February 2018 |archive-date=6 February 2018 |archive-url=https://web.archive.org/web/20180206084939/http://business.financialpost.com/transportation/bombardiers-bad-week-continues-with-wto-set-to-investigate-brazils-complaint-over-subsidies |url-status=live }}</ref> Embraer claimed that the subsidies are an "unsustainable practice that distorts the entire global market, harming competitors at the expense of Canadian taxpayers."<ref>{{cite web |url=http://www.cbc.ca/news/business/bombardier-wto-embraer-subsidies-1.4313202 |title=WTO to also probe alleged Bombardier subsidies into CSeries jets |access-date=12 February 2018 |archive-date=14 January 2018 |archive-url=https://web.archive.org/web/20180114173426/http://www.cbc.ca/news/business/bombardier-wto-embraer-subsidies-1.4313202 |url-status=live }}</ref> ==== Boeing ==== {{Main|Cseries dumping petition by Boeing}} {{trim|{{#section-h:Cseries dumping petition by Boeing}}}} ====2015β2017 government assistance==== On 29 October 2015, the [[Quebec]] government announced that it would invest [[United States dollar|US]]$1 billion (roughly [[Canadian dollar|CAD]]$1.3 billion) to protect jobs and the CSeries,<ref name="business.financialpost.com"/><ref>{{cite web|url=https://www.reuters.com/article/bombardier-results/update-1-bombardier-posts-quarterly-loss-outlines-quebec-investment-in-cseries-idUSL3N12T3Z520151029|title=UPDATE 6-Bombardier gets Quebec investment but weak results hurt share|date=29 October 2015|publisher=Reuters|access-date=12 February 2018|archive-date=20 October 2017|archive-url=https://web.archive.org/web/20171020190911/https://www.reuters.com/article/bombardier-results/update-1-bombardier-posts-quarterly-loss-outlines-quebec-investment-in-cseries-idUSL3N12T3Z520151029|url-status=live}}</ref> the province buying a 49.5% interest in the limited partnership controlling the CSeries program.<ref>{{cite web|url=http://www.intelligent-aerospace.com/articles/2015/11/bombardier-bailout-quebec-invest-1-billion-in-c-series-aircraft-program.html|title=Bombardier bailout: Quebec invests $1 billion in C Series aircraft program|website=intelligent-aerospace.com|access-date=12 February 2018}}</ref> Bombardier had reportedly asked Ottawa for a repayable loan of $350 million,<ref name="theglobeandmail.com"/> while the province expected the federal government to match its $1 billion loan in return for a near 50 percent stake in the CSeries program.<ref name="bnn.ca">{{cite web|url=http://www.bnn.ca/News/2015/11/10/Trudeau-says-Bombardier-aid-needs-strong-business-case.aspx|title=Trudeau says Bombardier aid needs strong business case|website=BNN Bloomberg|date=10 November 2015}}{{dead link|date=April 2022|fix-attempted=y}}</ref><ref>{{cite web|url=https://www.thestar.com/news/canada/2015/11/03/bombardiers-cseries-jam-a-dramatic-early-test-for-trudeau.html|title=Bombardier's CSeries jam a dramatic early test for Trudeau|first=Andy|last=Blatchford|date=3 November 2015|newspaper=Toronto Star|access-date=24 August 2017|archive-date=13 February 2018|archive-url=https://web.archive.org/web/20180213022024/https://www.thestar.com/news/canada/2015/11/03/bombardiers-cseries-jam-a-dramatic-early-test-for-trudeau.html|url-status=live}}</ref> Debts from the project had forced Bombardier to raise cash and seek aid in order to stay afloat.<ref>{{cite web|url=http://www.macleans.ca/news/canada/trudeau-bombardier-must-make-a-business-case-if-it-wants-federal-aid/|title=Trudeau: Bombardier must make a business case if it wants aid - Macleans.ca|date=10 November 2015}}</ref> Both provincial and federal contributions came via repayable loans; independent economist Mark Milke claimed it is questionable whether they would be repaid,<ref>{{cite web|url=https://www.thestar.com/opinion/commentary/2015/11/04/bombardier-exemplifies-the-pitfalls-of-corporate-welfare-goar.html|title=Bombardier exemplifies the pitfalls of corporate welfare: Goar|first=Carol|last=Goar|date=4 November 2015|newspaper=Toronto Star|access-date=24 August 2017|archive-date=13 February 2018|archive-url=https://web.archive.org/web/20180213022235/https://www.thestar.com/opinion/commentary/2015/11/04/bombardier-exemplifies-the-pitfalls-of-corporate-welfare-goar.html|url-status=live}}</ref> calling the bailout loans "corporate welfare" in ''[[The Globe and Mail]]''.<ref>{{cite news|url=https://www.theglobeandmail.com/report-on-business/rob-commentary/quebecs-bombardier-bailout-is-not-an-investment-its-corporate-welfare/article27081111/|title=Quebec's Bombardier bailout is not an investment; it's corporate welfare|access-date=12 February 2018|newspaper=The Globe and Mail|date=4 November 2015|archive-date=15 December 2018|archive-url=https://web.archive.org/web/20181215021854/https://www.theglobeandmail.com/report-on-business/rob-commentary/quebecs-bombardier-bailout-is-not-an-investment-its-corporate-welfare/article27081111/|url-status=live}}</ref> Days after his swearing-in, on 10 November 2015, Prime Minister [[Justin Trudeau]] stated Bombardier must make a "strong business case" for federal aid,<ref>{{cite web|url=http://www.cbc.ca/news/politics/bombardier-trudeau-labour-congress-1.3312410|title=Bombardier decision not based on 'emotion or politics or symbols,' Trudeau says|access-date=12 February 2018|archive-date=21 January 2017|archive-url=https://web.archive.org/web/20170121090643/http://www.cbc.ca/news/politics/bombardier-trudeau-labour-congress-1.3312410|url-status=live}}</ref> agreeing that the firm exemplified important high-value manufacturing,<ref>{{cite web|url=http://www.yorkregion.com/news-story/6109755-bombardier-must-justify-help-trudeau/|title=Bombardier must justify help: Trudeau|date=11 November 2015|access-date=11 November 2015|archive-date=13 February 2018|archive-url=https://web.archive.org/web/20180213135213/https://www.yorkregion.com/news-story/6109755-bombardier-must-justify-help-trudeau/|url-status=live}}</ref> but stated that such aid would be shaped by Canadians' best interests, not on "emotion, politics or symbols".<ref name="bnn.ca"/> In April 2016, the federal government offered an aid package to Bombardier without disclosing the amount or conditions imposed; it reportedly rejected the offer.<ref>{{cite web |url=http://washpost.bloomberg.com/Story?docId=1376-O5OFN5SYF01V01-5BLJ02CJS13P885U0APD1JSTKL |title=Bombardier Said to Reject Aid Proposal From Canadian Government |last1=Wingrove |first1=Josh |last2=Deveau |first2=Scott |date=15 April 2016 |newspaper=The Washington Post |quote=A spokesman for Innovation Minister Navdeep Bains, who is leading the review of Bombardier's request, declined to comment on the government offer |archive-url=https://web.archive.org/web/20160423121644/http://washpost.bloomberg.com/Story?docId=1376-O5OFN5SYF01V01-5BLJ02CJS13P885U0APD1JSTKL |archive-date=23 April 2016 |url-status=dead}}</ref> An unnamed source advised Reuters that negotiations were still underway. On 14 April 2016, Bombardier shares were at a six-month high over rumors that Delta had ordered CSeries jets.<ref>{{cite web |url=http://ca.reuters.com/article/businessNews/idCAKCN0XC1NK?pageNumber=2&virtualBrandChannel=0&sp=true |archive-url=https://web.archive.org/web/20160425025418/http://ca.reuters.com/article/businessNews/idCAKCN0XC1NK?pageNumber=2&virtualBrandChannel=0&sp=true |url-status=dead |archive-date=25 April 2016 |title=Canada gov't in 'constructive' talks on Bombardier aid: minister |last1=Lampert |first1=Allison |last2=Ljunggren |first2=David |date=15 April 2015 |website=Reuters Canada |publisher=Thomson Reuters |quote=Federal government officials have said they do not want to imitate the structure of a separate 2015 deal the province of Quebec struck to support the CSeries, which some felt did not impose enough conditions on the company.}}</ref> The firm continued to request a $1 billion aid package from the federal government.<ref name=PleaseCanIHaveSomeMore>{{cite news |last=Lu |first=Vanessa |date=28 April 2016 |title=Despite Delta's order, Bombardier wants Ottawa's help |url=https://www.thestar.com/business/2016/04/28/delta-places-56b-order-for-bombardier-cseries-passenger-jets.html |newspaper=The Star |location=Toronto, Ontario, Canada |archive-date=29 April 2016 |access-date=24 August 2017 |archive-url=https://web.archive.org/web/20160429034842/http://www.thestar.com/business/2016/04/28/delta-places-56b-order-for-bombardier-cseries-passenger-jets.html |url-status=live }}</ref> In May 2016, the federal government reportedly offered a $1 billion aid package (in addition to the $1 billion subsidy offered by the Government of Quebec) with the condition of Bombardier ending its dual-class share structure which enables the Bombardier and Beaudoin families to control it despite a minority ownership. According to Bloomberg, the talks reached a standstill over this condition.<ref>{{cite web |url=https://www.bloomberg.com/news/articles/2016-05-13/bombardier-aid-talks-said-to-stall-on-trudeau-s-3-billion-pitch |title=Bombardier Aid Talks Stall on Trudeau's $3 Billion Pitch |last=Wingrove |first=Josh |date=13 May 2016 |website=Bloomberg News |quote="It's not our intention to change anything in this regard," Bombardier Executive Chairman Pierre Beaudoin said on 29 April, referring to the dual-class share structure. |access-date=5 March 2017 |archive-date=10 March 2017 |archive-url=https://web.archive.org/web/20170310050809/https://www.bloomberg.com/news/articles/2016-05-13/bombardier-aid-talks-said-to-stall-on-trudeau-s-3-billion-pitch |url-status=live }}</ref> The federal plan also recommended that the firm issue new shares to gain $1 billion in additional funding. The ''[[Toronto Star]]'' predicted that the government would bailout the firm as bankruptcy would lead to the loss of some 70,000 jobs as well as significant exports, which had totaled $34.2 billion in the previous five years.<ref>{{cite news |last=Olive |first=David |date=9 July 2016 |title=Why Ottawa will spend $1B to prop up Bombardier: Olive |url=https://www.thestar.com/business/2016/07/09/why-ottawa-will-spend-1b-to-prop-up-bombardier-olive.html |newspaper=Toronto Star |location=Toronto, Ontario, Canada |archive-date=9 July 2016 |access-date=9 July 2016 |archive-url=https://web.archive.org/web/20160709161942/https://www.thestar.com/business/2016/07/09/why-ottawa-will-spend-1b-to-prop-up-bombardier-olive.html |url-status=live }}</ref> In May 2016, Federal Finance Minister Bill Morneau said the aerospace sector is "critically important".<ref>{{cite web |url=https://www.bloomberg.com/news/articles/2016-05-20/bombardier-aerospace-hit-canada-s-bulls-eye-morneau-says |title=Bombardier, Aerospace Hit Canada's 'Bulls-Eye', Morneau Says |last=Wingrove |first=Josh |date=20 May 2016 |website=Bloomberg |quote=It's a highly innovative Canadian sector. It's got the potential to be a growing and important part of our economy. We're looking at how we can enhance Canada's capability to be innovative β and focusing on a place where you've already got world-leading companies and world-leading technologies makes absolute sense. |access-date=5 March 2017 |archive-date=6 August 2016 |archive-url=https://web.archive.org/web/20160806195341/http://www.bloomberg.com/news/articles/2016-05-20/bombardier-aerospace-hit-canada-s-bulls-eye-morneau-says |url-status=live }}</ref> In February 2017, the federal government agreed to provide $372.5 million in interest-free repayable loans, to be issued in instalments over the following four years; one third was intended for the CSeries while the rest went to the Global 7000 business jet.<ref>{{cite news|title=Federal government to give $372.5M in loans to Bombardier|url=http://www.cbc.ca/news/canada/montreal/bombardier-announcement-feds-1.3971263|agency=CBC News|publisher=The Canadian Press|date=7 February 2017|archive-date=27 July 2017|access-date=28 July 2017|archive-url=https://web.archive.org/web/20170727200144/http://www.cbc.ca/news/canada/montreal/bombardier-announcement-feds-1.3971263|url-status=live}}</ref>
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