Quebec sees no trade dispute risk around Bombardier investment

Mon Nov 2, 2015 1:28pm EST
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By Euan Rocha

TORONTO Nov 2 (Reuters) - Quebec is sure that its $1 billion lifeline for Bombardier Inc 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, which has lodged complaints in the past about government backing for rival Bombardier and the CSeries. (Reporting by Euan Rocha; Editing by Jeffrey Hodgson and Lisa Von Ahn)