Clement concerned by Embraer complaint

Industry Minister Tony Clement expressed concern over a report that a Brazilian aerospace giant plans to challenge grants to Bombardier and he promised to retaliate against any such effort. 

If the report is true, Clement said, the federal government will respond.  "Obviously we take these situations very seriously," he told a news conference Wednesday.

"We believe we are in complete compliance with international rules and treaties and certainly if they do launch something we will respond."

Embraer SA, a Bombardier rival, has reportedly complained to the European Union about British aid to Bombardier for the development of its CSeries.

The Brazilian newspaper Valor Economico reported this week that Embraer complained to the EU's competition bureau and is considering asking its Court of Justice to force a cancellation of the aid.

Bombardier's competitor contends that the assistance — for construction of Bombardier's new 100- to 149-seat commercial planes — is illegal.

A Bombardier spokesman for Europe, Alec McRitchie, says the help from Britain respects the rules.

In 2005, Britain promised a $268-million loan for the CSeries — a sum later lowered to $202 million after Bombardier dropped plans to build part of the planes in Belfast, Northern Ireland.

Those parts will be built in Montreal, where Clement was holding a news conference announcing aid for the aerospace industry.

He said Canadian help for the CSeries respects all international rules.

The federal government has also promised a loan of up to $350 million for Bombardier's CSeries, while Quebec has promised $117 million.

When asked how, specifically, Ottawa could retaliate, Clement replied: "Hard to be specific right now until we understand exactly what their complaint is."