Pratt & Whitney Canada is to receive C$145 million ($100 million) in funding from Ottawa's Technology Partnerships Canada (TPC) programme - and that may lead to a clash between the engine manufacturer and the World Trade Organisation (WTO).

The WTO ruled in March that TPC support for regional aircraft development constituted an illegal export subsidy. Canada argues that the WTO verdict applies strictly to the regional jet market and is not relevant to the new funding.

The grant will be mainly to support development of the PW308 turbofan for business jets.

Source: Flight International