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Gold/Mining/Energy : Bombardier, maker of planes and trains and other things

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To: Gilbert Drapeau who wrote (598)	8/2/1999 11:10:00 AM
From: Gilbert Drapeau	Read Replies (1) of 1177

Bombardier Welcomes WTO Final Decision on ProEx Subsidy AUGUST 2, 1999 MONTREAL, QUEBEC--Bombardier welcomes the decision of the Appellate Body of the World Trade Organization which confirmed the earlier ruling of a WTO Panel requesting Brazil to "withdraw without delay" its ProEx subsidy program in support of Embraer aircraft sales. The decision states clearly that Brazil has to stop paying subsidies on all undelivered Embraer aircraft within a 90-day time frame and as a consequence, no subsidies are to be paid on almost all of the existing backlog of firm orders as well on all options for regional aircraft of any type included in contracts signed between Embraer and regional airlines. Since 1996, Brazil has committed to pay some US $4.5 billion in subsidies to the buyers of Embraer aircraft. It is estimated that approximately US $3.7 billion of these subsidies pertaining to undelivered aircraft are now in jeopardy and cannot be paid if Brazil is to comply with the WTO ruling. The Government of Canada deserves congratulations for having successfully challenged before the WTO a subsidy program which has hurt sales of Canadian regional jets and turboprop aircraft in worldwide markets. These lost sales translated into a lower level of activity for Bombardier at its Canadair and de Havilland facilities in Montreal and Toronto as well as at those of its many suppliers across Canada. This final decision of the Appellate Body of the WTO is a critical step but it is only the first one in ensuring there is a level playing field for the Canadian Aerospace industry in the regional aircraft market. Full implementation by Brazil of the WTO decision will be as important. Bombardier acknowledges the decision of the Appellate Body confirming a Panel ruling that Technology Partnership Canada program, as applied to the regional aircraft industry, is inconsistent with WTO rules. Bombardier is confident that the Government of Canada will adjust its program of support to R&D in order to comply with WTO rules. Bombardier Inc. is a Canadian corporation active in the fields of aerospace, rail transportation equipment, recreational products, financial services and services related to its products and core businesses. It operates plants in 12 countries in North America, Europe and Asia, and more than 90 percent of its revenues are generated outside Canada. Bombardier's revenues for its fiscal year ended January 31, 1999 totalled $11.5 billion.

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