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Taxation

Viewpoint – Avoiding the Aeronautics Subsidy Race Canada Is Sure to Lose

While all countries subsidize their aircraft industries at different levels, the Canadian sector has been making headlines recently. The massive help Bombardier has received sets a precedent, which other countries could exploit to justify heavily assisting their aerospace industries too, potentially creating a beggar-thy-neighbour dynamic. The scenario of a subsidy race in the aerospace industries of all countries is now a real possibility, unless there is a credible signal that such government intervention will be limited in the future.

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