NEWS RELEASES
WTO GRANTS CANADA RECORD AWARD OVER BRAZILIAN AIRCRAFT SUBSIDY
August 28, 2000 (2:00 p.m. EDT) No. 209
WTO GRANTS CANADA RECORD AWARD OVER BRAZILIAN AIRCRAFT SUBSIDY
International Trade Minister Pierre Pettigrew and Industry Minister John Manley today welcomed the largest
ever retaliation award in World Trade Organization (WTO) history, confirming that Brazil's illegal Proex aircraft
subsidy program has done significant damage to the Canadian aircraft industry.
The WTO arbitration panel ruled that Canada can apply $344 million per year in countermeasures against
Brazil. The panel also ruled in Canada's favour on all legal issues and dismissed challenges raised by Brazil in
opposing Canada's proposed amount of retaliation.
"This fifth consecutive ruling against Brazil shows the strength of Canada's case, and that the WTO agrees with
Canada that the Proex subsidy should be withdrawn as soon as possible," said Mr. Pettigrew. "Canada will
protect its WTO rights in the event of Brazilian non-compliance."
Four previous WTO panels have ruled that Brazil's Proex export subsidy for regional aircraft violates that
country's WTO obligations and must be withdrawn.
"Canada believes that competition in the regional aircraft sector should take place on a level playing field and
on the basis of the strengths of the companies and products involved," said Mr Manley. "Resolving this dispute
will promote increased trade between Canada and Brazil, to the benefit of both countries."
Should Canada now decide to impose the countermeasures, it is required to return to the Dispute Settlement
Body of the WTO to make a formal request for the authority to do so.
Canadian and Brazilian negotiators are scheduled to meet for the fourth time in Sao Paulo this week.
"Canada's priority remains reaching a mutually satisfactory negotiated resolution with Brazil on this issue," said
Minister Pettigrew.
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For more information on the Canada-Brazil Aircraft Subsidy Trade Dispute, please consult http://www.dfait-maeci.gc.ca/tna-nac/dispute-e.asp#Aircraft
For further information, media representatives may contact:
Sylvie Bussières
Office of the Minister for International Trade
(613) 992-7332
Media Relations Office
Department of Foreign Affairs and International Trade
(613) 995-1874
Jennifer Sloan
Office of the Minister of Industry
(613) 995-9001
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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