(Adds details on WTO, dateline previous OTTAWA)
By Allison Lampert
MONTREAL Feb 7 The Canadian government will
announce an aid package for Bombardier Inc later on
Tuesday, although a source familiar with the matter said the
amount would be far less than the plane-maker had requested.
The assistance from the government could trigger a new trade
dispute with Brazil, which said late last year it would start
proceedings against Canada at the World Trade Organization over
what it calls unfair support.
Bombardier and Brazil's Embraer SA have battled
for decades over the regional jet market.
The source said Canadian Innovation Minister Navdeep Bains
would announce that Ottawa was giving the firm C$372 million
($282.27 million) in repayable loans.
French-language public broadcaster Radio-Canada said just
one-third of the amount would go to Bombardier's new C-Series
passenger jet, with the rest going to the Global 7000 business
In late 2015, Bombardier asked the federal government to
inject $1 billion into the C-Series. Negotiations dragged on for
more than a year as Cabinet ministers outlined concessions they
wanted the firm to make, such as changing its dual-class
Government officials declined to comment when asked about
the report. Bombardier is now in a better position financially
than when it initially asked Ottawa to match $1 billion in aid
from the province of Quebec, where Bombardier is headquartered.
The CSeries jetliner program competes with some airliners
made by Embraer, as well as the smallest products of plane
giants Boeing Co and Airbus Group SE.
Reimbursable loans are a key pillar of the world's largest
trade dispute, involving mutual transatlantic claims of unfair
support for aircraft makers Airbus and Boeing.
Canada's trade minister said last month he had told Brazil
he was open to resolving a feud over funding for Bombardier
without turning to the World Trade Organization.
($1 = 1.3179 Canadian dollars)
(Additional reporting by Leah Schnurr and David Ljunggren in
Ottawa; Editing by Dan Grebler and Peter Cooney)