Embraer and Bombardier are airplane manufacturers involved in a trade dispute regarding government subsidies. Each company has accused the other of receiving illegal subsidies and has sought trade sanctions from the WTO. However, Brazil and Canada have been hesitant to apply punitive tariffs awarded to them because they are negotiating an agreement, and both companies have amended their subsidies in the growing market for regional flights.
Embraer and Bombardier are airplane manufacturers involved in a trade dispute regarding government subsidies. Each company has accused the other of receiving illegal subsidies and has sought trade sanctions from the WTO. However, Brazil and Canada have been hesitant to apply punitive tariffs awarded to them because they are negotiating an agreement, and both companies have amended their subsidies in the growing market for regional flights.
Embraer and Bombardier are airplane manufacturers involved in a trade dispute regarding government subsidies. Each company has accused the other of receiving illegal subsidies and has sought trade sanctions from the WTO. However, Brazil and Canada have been hesitant to apply punitive tariffs awarded to them because they are negotiating an agreement, and both companies have amended their subsidies in the growing market for regional flights.
1.-How do factor conditions differ for Embraer and Bombardier?
The factor conditions differ for Embraer and Bombardier in the sense that Brazil has much higher demand for Embraer and a much lower demand for Bombardier. 2.-How does the dispute reflect the difficulties in drafting the FTAA? Their airplane dispute highlights the difficulties facing countries from the developed north and south. 3.-Why are government involved in this trade dispute? Because direct subsidies by government to domestic firms are illegal at the WTO, each company has attempted to obtain WTO approval on trade sanctions against its competitor. 4.-Why are Canada and Brazil hesitant to apply the punitive tariffs they were awarded? Because Brazil and Canada are seeking to negotiate an agreement. Both have amended their subsidies. In a growing market with increased regional flights, aging planes and expected growth in developing countries.