NEWS RELEASES
CANADA TO APPEAL WTO RULING ON TECHNOLOGY PARTNERSHIPS CANADA
April 26, 1999 (2:50 p.m. EDT) No. 92
CANADA TO APPEAL WTO RULING
ON TECHNOLOGY PARTNERSHIPS CANADA
Canada will appeal a World Trade Organization (WTO) report that found that Technology Partnerships Canada
(TPC) support for regional aircraft is a prohibited export subsidy, International Trade Minister Sergio Marchi and
Industry Minister John Manley announced today.
"We believe the panel report contains serious errors in its interpretation of WTO rules concerning subsidies,"
said Minister Marchi. "Canada intends to contest these errors before the WTO appellate body."
"The panel's interpretation of a prohibited export subsidy discriminates against export-oriented industries," said
Minister Manley. "This is inconsistent with the intent and the negotiating history of the WTO agreement, and is
harmful to Canada as well as other WTO members that have small open economies dependent on trade."
The government will not appeal a second WTO decision concerning Canada Account lending for regional
aircraft.
"There is no need to appeal the ruling on Canada Account lending for regional aircraft. This ruling can be fully
implemented without significant effect on Canadian exporters," said Minister Marchi.
On March 12, 1999, the WTO ruled in Canada's favour on 8 of 10 grounds and declared that PROEX, a
Brazilian export program, was a prohibited subsidy that must be withdrawn without delay.
The WTO appellate body will make a decision on Canada's appeal by early August.
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For further information, media representatives may contact:
Leslie Swartman
Office of the Minister for International Trade
(613) 992-7332
Jennifer Sloan
Office of the Minister of Industry
(613) 995-9001
Media Relations Office
Department of Foreign Affairs and International Trade
(613) 995-1874
This document is also available on the Department of Foreign Affairs and International Trade's Internet site:
http://www.dfait-maeci.gc.ca
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