Possible Trade Challenge from Brazil Against Canada

According to Reuters, Brazil is mulling over a possible World Trade Organization challenge against Canada for state funding of its airplane manufacturer, Bombardier. Brazil, which is suffering from a devastating economic crisis, is looking to protect the overseas competiveness of its airplane manufacturer, Embraer.

Canada is funding the airplane maker, which has been struggling.

The announcement of the possible challenge came from Foreign Minister, Jose Serra, of Brazil's interim presidency. Current Brazilian president, Dilma Rousseff, is suspended and awaiting her impeachment trial.

More specifically, Serra, a presidential candidate in 2002, said that a $1 billion investment in the struggling airplane manufacturer by the province of Quebec was a "subsidy" and was unfairly advantageous over Embraer.

Bombardier and Embraer are among the world's largest airplane manufacturers. Both are fighting for market share as the industry struggles with slow growth.

Read more at Business Standard Brazil Considers WTO Challenge