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Quebec sees no trade dispute risk around Bombardier investment

Published 2015-11-02, 01:28 p/m
© Reuters.  Quebec sees no trade dispute risk around Bombardier investment
EMBR3
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BBDb
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By Euan Rocha
TORONTO, Nov 2 (Reuters) - Quebec is sure that its $1
billion lifeline for Bombardier Inc BBDb.TO will not result in
any trade disputes triggered by concerns from the train and
plane maker's rivals, the Canadian province's finance minister
said on Monday.
"We have structured this as a separate company and a limited
partnership between the government and Bombardier," said Quebec
Finance Minister Carlos Leitão, speaking to media on the
sidelines of the P3 2015 investment conference in Toronto.
"This is well within permitted standards because it is not a
subsidy," Leitão said. "It is an equity participation."
Last week, the Quebec government outlined plans to invest $1
billion in Bombardier's CSeries jets in return for a nearly 50
percent stake in the struggling project.
Some fear that Quebec's support may raise an outcry from
Brazil's Embraer EMBR3.SA , which has lodged complaints in the
past about government backing for rival Bombardier and the
CSeries.

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