12/19/2016 01:29 EST | Updated 12/19/2016 01:31 EST

Brazil To Challenge Canada Over Bombardier Subsidies

Brazil says Canadian taxpayer help for Bombardier is incompatible with global trade rules.

RIO DE JANEIRO — Brazil says it will challenge Canada at the World Trade Organization for allegedly channelling unfair subsidies to the aerospace and transportation company Bombardier.

Brazil's Foreign Ministry issued a statement on Monday saying the support for Bombardier is incompatible with WTO rules and affects its Brazilian competitor Embraer.

A Brazilian flag waving in Sao Paulo, Brazil. (Photo: Filipe Frazao via Getty Images)

The South American country complains about a $2.5 billion investment made this year by the province of Quebec to help the Montreal-based company.

Brazil also says Canada's federal government plans another investment in Bombardier to artificially reduce prices of its new CSeries airplanes.

In July, Canada's government said it was following trade rules in the case.

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