WT/DS522/1  
G/SCM/D114/1  
G/L/1176  
 
15 February 2017  
(17-0902) Page: 1/12 
  Original: English  
 
 CANADA – MEASURES CONCERNING TRADE IN COMMERCIAL AIRCRAFT  
REQUEST FOR CONSULTA TIONS BY BRAZIL  
The following communication, dated  8 February 2017 , from the delegation of Brazil  to the 
delegation of Canada  and to the Chairperson of the Dispute Settlement Bod y, is circulated in 
accordance with Article  4.4 of the DSU.  
 
_______________  
 
 
My authorities have instructed me to request consultations with the Government of Canada 
pursuant to Articles 1 and 4 of the Understanding on Rules and Procedures Governing the 
Settlement of Disputes ( "DSU"); Articles 4, 7, and 30 of the Agreement on Subsidies and 
Countervailing Measures ( "SCM Agreement "); and Article XXII of the General Agreement on Tariffs 
and Trade 1994 ( "GATT 1994 ") (to the extent incorporated by Article 30 o f the SCM Agreement) in 
relation to measures affecting trade in commercial aircraft.  
Bombardier, Inc. ( "Bombardier ")1 has received considerable financial support from Canada 's 
federal, provincial, and local governments. In 2005, Bombardier initially launch ed its C -Series 
aircraft program and re -launched the program in 2008.  Since the launch of the C -Series program, 
Bombardier has sold over 300 aircraft to customers in Canada, the United States, Australia, 
Europe, Asia, and the Middle East.  The first deliv eries of C -Series aircraft to customers occurred in 
2016.  
Canada 's federal, provincial, and local governments have provided substantial subsidies to 
Bombardier to develop, launch, and preserve its C -Series aircraft program.  Canada 's support to 
Bombardier for the C -Series program includes loans, grants, equity infusions, tax credits, and 
other financial contributions.  
The measures that are the subject of this request are prohibited and actionable subsidies to 
Bombardier and its suppliers, as well as legisl ation, regulations, other instruments, and 
amendments thereto providing such subsidies to these recipients.  Such measures include the 
following:  
 Canada 's provision (through Industry Canada ( "IC"), a former Canadian government 
agency now called Innovation,  Science and Econom ic Development Canada) of 
C$350  million of financing to Bombardier for commercial aircraft design and 
development (hereinafter "launch aid "). Canada and Bombardier initially agreed on 
the launch aid in May 2005, and Canada reconfirmed it s offer on July 2008. The 
Terms and Conditions were signed in 2008, and the contribution agreements were 
signed in March 2009. The C$350  million in funding was disbursed to Bombardier as 
of the end of December 2013.2 
                                                
1 "Bombardier, " as referenced in this request,  includes Bombardier, Inc.; Bombardier Aerospace; 
Bombardier Transportation (Investment) UK Ltd; the C Series Aircraft Limited Partnership; and all other 
subsidiaries and affiliates of Bombardier, Inc.  
2 See, e.g.,  Industry Canada Press Release, "Governmen t Of Canada Commits Its Support For Proposed 
CSeries Commercial Aircraft Program " (13 May 2005); Agreement Between Industry Canada And Bombardier 
(12 May 2005); Bombardier Press Release, "Bombardier Launches CSeries Aircraft Program " (13 July 2008); 
Indust ry Canada Press Release, "Government Of Canada Reconfirms Investment In Bombardier’s CSeries " WT/DS522/1 • G/SCM/D114/1 • G/L/1176  
 
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   Quebec 's provision (through Investissem ent Québec ( "IQ"), Quebec 's economic 
development corporation) of C$118 million of launch aid to Bombardier. The launch 
aid was announced in May 2005. Quebec again offered laun ch aid in July 2008, and 
C$117  million was disbursed in 2009.3 
 Quebec 's provision  of support for Bombardier to construct a new C -Series production 
facility at Mirabel, Quebec. Quebec offered to "assume responsibility for the new 
Bombardier aircraft assembly plant " in January 2005 and announced an "agreement " 
on the selection of a site in Mirabel, Quebec in May 2005.  Bombardier again selected 
Mirabel, Quebec as the C -Series final assembly site in July 2008.4 
 The municipality of Mirabel 's (Quebec) tax incentives, exemptions, and other support, 
including exemption of property taxes for Bo mbardier 's C-Series production facility 
during its first ten years of operations. In November 2008, Mirabel approved a ten -
year tax credit for companies in the aircraft manufacturing industry that are 
established at the airport.5 
 Canada 's provision of repa yable or non -repayable financing to Bombardier and its 
suppliers under the Technology Partnerships Canada program to support technological 
development in the aerospace sector. Canada launched the Technology Partnerships 
Canada program in March 1996. Author ity to conclude new projects expired in 
December 2006, but all existing contracted projects continue and are managed 
through the Industrial Technologies Office. As of November 2016, Canada disbursed 
at least C$1.6  billion to Bombardier and its suppliers.6 
 Canada 's provision of C$20 million to Bombardier by Innovation, Science and 
Economic Development Canada for aerospace research and development.7 
 Quebec 's provision of over C$700 million in support under Quebec 's Aerospace 
Strategy 2006 -2016.  Quebec announ ced the Aerospace Strategy 2006 -2016 in July 
2006, and it stated in May 2016 that its contributions under the Aerospace Strategy 
2006-2016 amounted to more than C$700 million.8 
 The Strategic Aerospace and Defence Initiative, under which Canada is providing  over 
C$1 billion in funding to the aerospace industry, including Bombardier 's C-Series 
suppliers. Canada launched this initiative in April 2007.  During 2008 -2014, Canada 
agreed to contributions totaling at least C$1.28 billion for Bombardier 's C-Series 
                                                                                                                                                  
(13 July 2008); Audit and Evaluation Branch, "Final Audit Report: Audit of the Bombardier CSeries Contribution 
Agreements " (May 2014); Industry Canada, "Bombardie r:  Current Position and New Request " (8 June 2015).  
3 See, e.g.,  Ministry of Economic Development, Innovation and Exports Press Release, "Quebec Has 
Won" (13 May 2005); "Everyone aboard for CSeries project, " Montreal Gazette  (14 July 2008); Investissement  
Québec, "Successful Takeoff for the CSeries " (20 September 2013); Government of Quebec Press Release, 
"Québec réagit à l’annonce de Bombardier Aéronautique " (22 February 2008 ); Government of Quebec, 
Décret  666-2009 (10 June 2009).  
4 See, e.g.,  "Quebec off ers to build plant in partnership with the private sector, " La Presse  (28 January 
2005); Ministry of Economic Development, Innovation and Exports Press Release, "Quebec Has Won " 
(13 May 2005); Bombardier Press Release, "Bombardier Launches CSeries Aircraft  Program " (13 July 2008); 
"No Place Like Home, " Site Selection  (September 2008).  
5 See, e.g.,  Responses of the City of Mirabel to the Aide -Memoire from the Government of Brazil 
(December 2008); "No Place Like Home, " Site Selection  (September 2008); Ville d e Mirabel, "Réglem ent 
No. 1387" (22 November 2004); Ville de Mirabel, "Réglement No. 1915 " (28 November 2012); Ville de Mirabel, 
"Annexe 2 – Fonds de soutien au développement sectoriel (FSDS) " (February 2016).  
6 See, e.g.,  Government of Canada, "Technology  Partnerships Canada Annual Report 1999 – 2000" 
(2000); Government of Canada, "Technology Partnerships Canada Program, " https://ito.ic.gc.ca/eic/site/ito -
oti.nsf/eng/h_00154.html (accessed 28 January 2017); Government of Canada, "Technology Partnerships 
Canada (TPC) Repayment Status Report, " https://ito.ic.gc.ca/eic/site/ito -oti.nsf/eng/00943.html 
(1 November  2016).  
7 See, e.g.,  Alex Thompson, Advice to the Minister of Innovation, Science and Economic Development, 
(CCM 282118) (4 December 2015).  
8 See, e.g. , Government of Quebec Press Release, "Le ministre Raymond Bachand dévoile la stratégie 
de développement de l’industrie aéronautique Québécoise " (16 July 2006); Government of Quebec Press 
Release, "510 millions de dollars pour l’industrie de l’aérospatiale " (30 May 2016).  WT/DS522/1 • G/SCM/D114/1 • G/L/1176  
 
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  suppliers.  As of fiscal year 2015, Canada has disbursed over C$788 million to these 
suppliers.9 
 Quebec 's provision (through state -owned and controlled Caisse de Dépôt et Placement 
du Québec ( "CDPQ ")) of a line of credit for US$195 million (as part of a rev olving 
credit facility in which other institutions participated). CDPQ 's US$195 million line of 
credit was announced in September 2009. Bombardier has extended the maturity 
date of the credit facility multiple times, most recently to June 2019.10 
 Quebec 's provision (through IQ) of US$1 billion to Bombardier for cash flow purposes 
of the C -Series program in exchange for a 49.5 percent share in a newly -created 
entity to which Bombardier will transfer the assets, liabilities, and obligations of its C -
Series pro gram. In October 2015, IQ and Bombardier entered into a memorandum of 
understanding for the US$1 billion equity infusion. In June 2016, Bombardier closed 
the investment with IQ and transferred the C -Series assets to a new entity.  IQ paid 
the first install ment of US$500 million to Bombardier in June 2016 and the second 
installment of US$500 million to Bombardier in September 2016.11 
 Quebec 's provision (through CDPQ) of US$1.5 billion for general corporate purposes of 
Bombardier in exchange for a convertible share investment in Bombardier 
Transportation 's newly -created holding company, Bombardier Transportation 
(Investment) UK Ltd.  The agreement between CDPQ and Bombardier was announced 
in November 2015.  In February 2016, the sale was closed, and Bombardier received 
gross proceeds of US$1.5 billion from CDPQ.12 
 Other federal, provincial, and local subsidy programs benefiting Bombardier and the 
C-Series aircraft program, including (but not limited to):  
o Canada 's provision (through the Natural Sciences and Engine ering Research 
Council of Canada ( "NSERC ")) of financial support to the Green Aviation Research 
& Development Network ( "GARDN ") (of which Bombardier is a member) to 
increase the competitiveness of Canada 's aerospace industry and reduce the 
environmental fo otprint of Canadian aircraft, engines, and avionics systems. In 
January 2009, the Government of Canada established GARDN as a Business -Led 
Network of Centres of Excellence, GARDN is receiving C$25 million for 2009 -2018, 
and nearly C$18 million has been dis bursed as of fiscal year 2015.13 
o Quebec 's provision of C$4 million to Bombardier – including C$2 million for the 
C-Series program – through Emploi -Québec. The support was announced in 
                                                
9 See, e.g.,  Government of Canada, "The Strategic Aerospace and Defence Initiative (SADI), " 
https://www.ic.gc.ca/eic/site/ito -oti.nsf/eng/h_00093.html (accessed 28 January 2017);  Industry Canada 
Press Release, "Canada’s New Government Anno unces New Strategic Aerospace and Defence Initiative " 
(2 April 2007); Government of Canada, "Project Portfolio, " https://www.ic.gc.ca/eic/site/ito -
oti.nsf/eng/h_00025.html (accessed 28 January 2017); Government of Canada, "Public accounts of Canada, " 
http://epe.lac -bac.gc.ca/100/201/301/public_accounts_can/pdf/index.html (accessed 28 January 2017).  
10 See, e.g.,  CDPQ Press Release, "The Caisse de Dépôt et Placement du Québec Grants US$195 Million 
in Financing to Bombardier " (2 September 2009); Bombardier Sec ond Quarterly Report ending June 30, 2016 
(5 August 2016).  
11 See, e.g.,  Bombardier Press Release, "Bombardier Announces Financial Results for the Third Quarter 
Ended September 30, 2015, Government of Québec Partners with Bombardier for $1 billion in C Seri es as 
Certification Nears, Bombardier Inc. " (29 October 2015); Bombardier Third Quarterly Report ending September 
30, 2016 (10 November 2016); Bombardier Material Change Report, Form 51 -102F3, (2 November 2015); 
Investissement Québec and Bombardier, Conven tion de Souscription (22 June 2016).  
12 See, e.g.,  Bombardier Press Release, "Bombardier and CDPQ enter into definitive agreement: CDPQ 
to acquire 30% of newly -created BT Holdco for $1.5 billion " (19 November 2015); Bombardier Material Change 
Report, Form 5 1-102F3 (25 November 2015); Bombardier Third Quarterly Report ending September 30, 2016 
(10 November 2016); Subscription Agreement between Caisse de Dépôt et Placement du Québec and 
Bombardier (18 November 2015).  
13 See, e.g.,  Government of Canada Press Rel ease, "Government of Canada Stimulates World -Class 
R&D" (7 January 2009); Networks of Centres of Excellence of Canada, "Greening Canada’s aircraft to compete 
globally, " http://www.nce -rce.gc.ca/NetworksCentres -CentresReseaux/BLNCE -RCEE/GARDN_eng.asp#about 
(accessed 28 January 2017); Government of Canada, "Public accounts of Canada, " http://epe.lac -
bac.gc.ca/100/201/301/public_accounts_can/pdf/index.html (accessed 28 January 2017).  WT/DS522/1 • G/SCM/D114/1 • G/L/1176  
 
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  November 2013, although the plan for the C -Series program actually began in fall 
2012.14 
o Aéroports de Montréal 's provision of support to Bombardier and C -Series 
suppliers for selecting Mirabel for the site of Bombardier 's C-Series final assembly 
plant and suppliers ' component plants and other support for aerospace 
companies.15   
o Canada 's provision of investment tax credits for research and development 
through the Scientific Research and Experimental Development Tax Incentive.16 
o Canada 's and Quebec 's provision of funding to the Consortium for Research and 
Innovation in Aerospace in Québec  ("CRIAQ ") (of which Bombardier is a member) 
to finance aerospace research projects.  Since CRIAQ was established in 2002, it 
has funded numerous aerospace research projects.17 
o Canada 's and Quebec 's provision of funding to the Consortium for Aerospace  
Research and Innovation in Canada ( "CARIC ") (of which Bombardier is a member) 
to launch research and development projects and provide other support to 
Canada 's aerospace industry. In August 2014, CARIC and IC signed an agreement 
for C$30 million in fundin g over five years.  CARIC, Canada, and Quebec have 
funded millions of Canadian dollars in research projects involving Bombardier and 
other aerospace companies.18 
o Canada 's, Quebec 's, and Communauté métropolitaine de Montréal 's provision of 
funding to Aéro Mo ntréal (of which Bombardier is a member) to provide assistance 
to Quebec 's aerospace industry, and Quebec 's provision of C$70 million to the 
aerospace industry for Phase 1 of SA2GE ( "Systèmes aéronautiques d 'avant -garde 
pour l 'environnement "), in which Aér o Montréal participated. Since Aéro 
Montréal 's creation in 2006, it has received and used funding from government 
sources for its aerospace initiatives.19 
o Canada 's provision of financial assistance to aerospace projects through the 
Canada Economic Developme nt for Quebec Regions ( "CEDQ ") (including its 
Quebec Economic Development Program). From 2005 (when CEDQ was created) 
to the present, it has provided tens of millions of Canadian dollars in contributions 
                                                
14 See, e.g.,  "Formation de la main -d’œuvre:  Québec octroie 4 M$ à Bombardier  Aéronautique, " 
Nordinfo (26 November 2013).  
15 See, e.g.,  Aéroports de Montréal Press Release, "Mirabel destined to becomes Canada’s aircraft 
production capital " (13 June 2005); Aéroports de Montréal Press Release, "Montreal -Mirabel Airport 
Development Ong oing; Site of Former Terminal Continues to Attract Interest " (11 July 2016); Aéroports de 
Montréal, "The economic and tax impacts of the activities at Montréal -Mirabel airport " (September 2014).  
16 See, e.g.,  Canada Revenue Agency, "Overview of the Scientif ic Research and Experimental 
Development (SR&ED) Tax Incentive Program, " http://www.hmtrevenuegroup.com/docs/CRA 
_Overview_SRED.pdf (accessed 28 January 2017); Fassi Kafyeke, Director Strategic Technology, Bombardier 
Aerospace, "Review of Federal Support t o Research and Development Expert Panel Consultation questions:  An 
Aerospace Industry Perspective, " http://rd -review.ca/eic/site/033 .nsf/vwapj/sub023.pdf/$file/sub023.pdf 
(accessed 28 January 2017).  
17 See, e.g.,  CRIAQ, "Our Partners, " http://www.criaq.ae ro/Pages/Detail/6219850280 
/11281102632/our_partners.html (accessed 28 January 2017); CRIAQ, "About CRIAQ, " 
http://www.criaq.aero/Pages/Detail/5975934504/10579844776/about_criaq.html (ac cessed 28 January 2017); 
CRIAQ, " International Collaboration, " http:// www.criaq.aero/Projets_B/ListeProjets 
/13079981480/projects_list.html (accessed 28 January 2017); CRIAQ, "CRIAQ Classic, " 
http://www.criaq.aero/Projets_A/ListeProjets/12927534120/projects_list.html (accessed 28 January 2017).  
18 See, e.g.,  CARIC, "Mission, vision & values, " http://caric.aero/about -us/mission -vision -values/ 
(accessed 28 January 2017); CARIC, "2015-2016 Annual Report " (29 September 2016); CARIC Press Release, 
"CARIC Welcomes the Federal Government’s Support to Aerospace R&D " (8 August 2014).  
19 See, e.g.,  Aéro Montréal, "Innovation, " https://www.aeromontreal.ca/aero -innovation.html (accessed 
28 January 2017); Aéro Montréal, "Partners, " https://www.aeromontrea l.ca/partners.html (accessed 
28 January 2017); Aéro Montréal Press Release, "Aéro Montré al Receives $2 Million to Pursue MACH Initiative 
Projects and Launch a 5th Cohort " (12 December 2016); Government of Canada Press Release, "Aero Montreal 
Receives $1,584,150 in Funding from Government of Canada " (5 May 2014); Government of Canada Press 
Release, "Aéro Montréal Receives $731,250 in Funding from the Government of Canada " (21 March 2011); 
CRIAQ, "Progress Report " (31 August 2010).  WT/DS522/1 • G/SCM/D114/1 • G/L/1176  
 
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  to aerospace companies, including more than C$11 mil lion for 16 entities 
announced in June 2015 and C$4.98 million fo r 11 entities announced in 
July 2016.20 
 Other federal, provincial, and local subsidy programs potentially benefiting the C -
Series program, Bombardier, and the Canadian aerospace industry, incl uding (but not 
limited to):  
o Quebec 's provision of loan guarantees, financial assistance, and other support 
through the Strategic Support for Investment Program (PASI) (also known as 
ESSOR).21 
o Canada 's provision of an Accelerated Capital Cost Allowance to su pport 
investment in machinery and equipment.  The Government of Canada created this 
measure in 2007, and it was scheduled to expire at the end of 2015. It was 
extended to include eligible assets acquired after 2015 and before 2026.22 
o Quebec 's provision of s upport through refundable tax credits for pre -competitive 
research.23 
 Other measures by Canada and Quebec to support the sa les of C -Series aircraft to 
Air Canada.24  
 Any other existing or future measures or amendments or revisions to the measures 
identified above that involve a financial contribution by Canadian federal, provincial, 
or local government entities or by any entities controlled by such Canadian 
government entities that benefit Bombardier or the C -Series program, including but 
not limited to the f ollowing measures announced by Canada and Quebec:  
o C$372.5 million in repayable contributions to Bombardier.  On 7 February 2017, 
Canada announced that these contributions will be provided in installments over 
four years "to support the development of the G lobal 7000 business aircraft 
through the Strategic Aerospace and Defence Initiative (SADI) and the C Series, 
under existing contribution programs. "25  
                                                
20 See, e.g.,  CEDQ Press Release, "The Government of Canada is providing financial assistance to 11 
aerospace sector  projects " (12 July 2016); An Act to establish the Economic Development Agency of Canada 
for the Regions of Quebec, S.C. 2005, c. 26 (23 June 2005); CEDQ Press Release, "Major aerospace 
announcement by the Government of Canada in the wings of the Internati onal Paris Air Show " (17 June 2015); 
CEDQ, "Disclosure of grant and contribution awards, " http://dec -ced.gc.ca/eng/disclosure/grant -contribution -
awards/quarters.html (accessed 28 January 2017).  
21 See, e.g.,  Government of Canada, "Strategic Support for Inve stment Program (PASI), " 
https://www.ic.gc.ca/eic/site/054.nsf/eng/00167.html (accessed 28 January 2017); Investissement Québec, 
"ESSOR, " http://www.investquebec.com/quebec/en/financial -products/all -our-solutions/essor.html (accessed 
28 January 2017); Inves tissement Québec, "Customized Financial Products, " 
http://www.investquebec.com/international/en/industries/aerospace/customized -financial -products.html 
(accessed 28 January 2017).  
22 See, e.g.,  Government of Canada, "Budget 2015:  Chapter 3.1 - Supporting t he Manufacturing Sector 
and Investing in Advanced Research " (21 April 2015); Canada Revenue Agency, "T2 Corporation – Income Tax 
Guide – Chapter 3:  Page 3 of the T2 return, " http://www.cra -arc.gc.ca/E/pub/tg/t4012/t4012 -05-e.html 
(accessed 28 January 2017 ). 
23 See, e.g.,  Rufin Baghana and Pierre Mohnen, "Effectiveness of R&D Tax Incentives in Small and Large 
Enterprises in Québec " (28 December 2008); Finances Québec, "2008-2009 Budget:  Additional Information on 
the Budgetary Measures " (13 March 2008).  
24 See, e.g.,  "Erin O’Toole on Air Canada Public Participation Act, " In the House of Commons 
(1 June 2016); "Air Canada Inc threatens to walk away from Bombardier Inc CSeries deal if legislation over 
maintenance isn’t  passed, " Financial Post  (22 June 2016); "Quebec getting heat for dropping lawsuit against 
Air Canada in SSeries deal, " CityNews  (18 February 2016).  
25 Innovation, Science and Economic Development Canada, "Backgrounder: Bombardier 
Contribution, "http://news.gc.ca/web/article -en.do?mthd=index&crtr.page =1&nid=1186209 (7 February 2017);  
Bombardier Press Release, "Government of Canada and Bombardier Announce Significant Investment to 
Strengthen Leadership in Aerospace " (7 February 2017).  WT/DS522/1 • G/SCM/D114/1 • G/L/1176  
 
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  o US$1 billion in financial assistance to Bombardier.  On 11 October 2016, 
Canada 's Minister of Innovation, Science and Economic Development stated that 
support for Bombardier is "not a matter of if but how we want to make the 
investment. "26 
o At least C$510 million in government contributions, including grants, loans, and 
financing, announced in May 2016 under Que bec's Aerospace Strategy 2016 -
2026.  This support includes C$40 million for Phase 2 of SA2GE.  In October 2016, 
Quebec selected five projects for Phase 2 of SA2GE, including a proposal from 
Bombardier.27 
o Up to C$54 million announced in October 2016 to suppo rt Bombardier and its 
suppliers under the Technology Demonstration Program.  Canada launched the 
Technology Demonstration Program in September 2013.28 
Brazil considers that the measures are inconsistent with Canada 's obligations, inter alia , under the 
following provisions:  
1. Articles 3.1(a) and 3.2 of the SCM Agreement;  
2. Articles 3.1(b) and 3.2 of the SCM Agreement; and  
3. Articles 5(c), 6.3(a), 6.3(b), 6.3(c), 6.4, and 6.5 of the SCM Agreement.   
Brazil considers that the measures that are the subject of this re quest are financial contributions 
(e.g., grants, loans, equity infusions, and tax credits) by a government or public body that confer 
a benefit to Bombardier within the meaning of Article 1.1(a) and (b) of the SCM Agreement.  Brazil 
also considers that the se subsidies are specific to Bombardier or the aerospace industry within the 
meaning of Article 2 of the SCM Agreement.  
In Brazil 's view, the Canadian federal and provincial launch aid subsidies and other subsidy 
programs appear to be contingent, in law or  in fact, whether solely or as one of several other 
conditions, upon export performance in violation of Articles 3.1(a)  and 3.2 of the SCM Agreement. 
Other measures appear, in law or in fact, to condition the subsidies, whether solely or as one of 
several other conditions, upon the use of domestic over imported  goods in violation of 
Articles  3.1(b) and 3.2 of the SCM Agreement.  
The use of the above -referenced measures causes adverse effects to the interests of Brazil in the 
form of serious prejudice or thre at of serious prejudice:  
 The effect of the subsidies is to displace or impede or threaten to displace or impede 
the imports of a like product of Brazil into Canada in violation of Articles 5(c), 6.3(a), 
and 6.4 of the SCM Agreement.  
 The effect of the subsi dies is to displace or impede or threaten to displace or impede 
the exports of a like product of Brazil to the United States, the European Union, and 
other third country markets in violation of Articles 5(c), 6.3(b), and 6.4 of the SCM 
Agreement.  
                                                
26 See, e.g.,  "Navdeep Bains:  Liberals Ready To Invest In Bombardie r, With Conditions, " Canadian 
Press  (11 October 2016); "Trudeau Plans Aerospace Support After Bombardier Request, " Bloomberg  
(15 December 2016); Industry Canada, Advice to the Minister of Innovation, Science and Economic 
Development, Bombardier Request (4 December 2015).  
27 See, e.g.,  Government of Quebec Press Release, "Québec prépare l’avion de demain " 
(14 October  2015); Government of Quebec Press Release, "80 millions de dollars pour développer les 
technologies liées à l’avion de demain " (6 October 2016);  Government of Quebec Press Release, "510 millions 
de dollars pour l’industrie de l’aérospatiale " (30 May 2016); Government of Quebec, "Quebec’s Aerospace 
Strategy " (2016); Aéro Montréal, "Launch of the 2nd Phase of the SA2GE Project for the Development of  
Greener Aircraft " (6 October 2016).  
28 See, e.g.,  Government of Canada Press Release, "Government of Canada invests up to $54 million in 
next-generation aircraft technologies " (11 October 2016); Government of Canada Press Release, "Harper 
Government Launch es Key Aerospace and Defence Program " (4 September 2013); Industry Canada, 
"Technology Demonstration Program (TDP) — Program Guide " (2016).  WT/DS522/1 • G/SCM/D114/1 • G/L/1176  
 
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   The effec t of the subsidies is significant lost sales or threat of lost sales to the 
subsidized product in the United States, the European Union, and other markets in 
violation of Articles 5(c) and 6.3(c) of the SCM Agreement.  
 The effect of the subsidies is signifi cant price suppression or price depression or threat 
of significant price suppression or price depression in the United States, the European 
Union, and other markets in violation of Articles 5(c) and 6.3(c) of the SCM 
Agreement.  
 The effect of the subsidies  is significant price undercutting or threat of significant price 
undercutting by the subsidized product in the United States, the European Union, and 
other markets in violation of Articles 5(c), 6.3(c), and 6.5 of the SCM Agreement.  
Brazil also is concern ed that the measures have caused and continue to cause nullification or 
impairment of benefits accruing directly or indirectly to Brazil under the GATT 1994 within the 
meaning of Article XXIII:1.  
In the Annex to this request for consultations, and in accor dance with Articles 4.2 and 7.2 of the 
SCM Agreement, Brazil provides a list of available evidence of the existence and nature of the 
subsidies in question and the serious prejudice to Brazil 's interests.  
Brazil reserves the right to raise additional claim s and measures and address additional legal and 
factual issues under other provisions of the covered agreements during the course of the 
consultations.  
My authorities look forward to receiving in due course the reply of Canada to the present request 
and to  consider with Canada a mutually convenient date and venue to hold consultations.  
_______________  WT/DS522/1 • G/SCM/D114/1 • G/L/1176  
 
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  ANNEX  
Statement of Availa ble Evidence in Accordance with  
Articles 4.2 and 7.2 of the SCM Agreement  
 Brazil 's request for consultations dated 8 February 2017 identifies the subsidy measures that 
are part of this request for consultations. The evidence set out below is evidence presently 
available to Brazil regarding the existence and nature of those subsidy measures and the serious 
prejudice caused by them to t he interests of Brazil. Brazil reserves the right to supplement or alter 
this list in the future, as appropriate.  
 
 The evidence presently available to Brazil includes the following:  
 
Industry Canada  Press Release, "Government Of Canada Commits Its Support  For Proposed 
CSeries Commercial Aircraft Program " (13 May 2005)  
Bombardier Press Release, "Bombardier Launches CSeries Aircraft Program " (13 July 2008)  
Industry Canada Press Release, "Government Of Canada Reconfirms Investment In Bombardier 's 
CSeries " (13 July 2008)  
Audit and Evaluation Branch of Industry Canada, "Final Audit Report:  Audit of the Bombardier 
CSeries Contribution Agreements " (May 2014)  
Agreement Between Industry Canada And Bombardier (12 May 2005)  
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