;MONTREAL---Bombardier welcomes the ruling of the World Trade Organization (WTO) panel that Brazil's ProEx subsidy program is illegal and must be withdrawn without delay. ;This decision is good news for the whole Canadian aerospace industry as a large number of industrial firms across Canada are involved as suppliers for the Canadair Regional Jet (CRJ) and the Dash 8(r) Q series of turboprop aircraft. Some 10,000 Canadians are directly employed by Bombardier Aerospace and its suppliers in these programs. ;Since the acquisition of Canadair in 1986 and of de Havilland in 1992, Bombardier has made investments of more than CDN$5 billion in the development of new aircraft in Canada and as a result, has achieved a leadership position in the regional aircraft market worldwide. Since 1996, Embraer challenged this leadership position and gained a very large market share in the 50-seat regional jet market through the use of an illegal subsidy reducing the price paid for the Brazilian aircraft by as much as 15 to 20 percent. Brazil has committed up to US$3 billion in support of Embraer aircraft sales through the ProEx program. ;Bombardier is also very pleased that the most blatant allegations by Brazil in its submission to the WTO were rejected by the panel. Brazil alleged that the value of Canada's support for regional aircraft ranged from CDN$2.7 billion to $3.6 billion. The panel rejected all these claims but for repayable R&D investments of CDN$141 million for two 70-seater aircraft still in development. ;Specifically for the 50-seat Canadair Regional Jet, Brazil had alleged that Bombardier received subsidies ranging from CDN$3.7 million to $4.6 million per aircraft. The WTO rejected all claims pertaining to the 50-seat CRJ and concluded that the aircraft had not received one cent of illegal subsidies. ;Almost three years after Embraer has won its first orders for its regional jet, thanks to the challenge of this subsidy program before the WTO by the Canadian Government, Bombardier and the Canadian aerospace industry are able again to compete successfully and on a level playing field with Embraer. ;The Canadian Government has to be congratulated for having put so much effort in order to resolve this issue, first through two years of discussions and negotiations with Brazil which failed to produce an agreement despite a special envoys report which Bombardier accepted, and finally by using the WTO process to bring an end to the illegal ProEx subsidies. ;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 11 countries in North America and Europe and more than 88 percent of its revenues are generated outside Canada. Bombardier's revenues for its fiscal year ended January 31, 1998 totalled $8.5 billion.
