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Dispute Settlement

WTO Panel Cases to Which Canada is a Party

Canada/Brazil WTO Regional Aircraft Dispute

Recent Developments

WTO Issues Report in Aircraft Dispute
News Release - December 23, 2002

History of the Case

Overview

• WTO Issues Report in Aircraft Dispute
  News Release - December 23, 2002
• Canada Will Not Appeal WTO Report in Aircraft Dispute
  News Release & Backgrounder - February 19, 2002
• WTO Issues Final Report in Aircraft dispute
  News Release & Backgrounder - January 28, 2002
• Canada Wins Fifth WTO Ruling in Aircraft Dispute
  News Release and Backgrounder - July 26, 2001
• Canada Reacts to Brazil's Illegal Trade Practices
  News Release and Backgrounder on Canada's Aerospace Industry - July 9, 2001
• Brazil blocks Canada's Request for a WTO Ruling on Brazilian Aircraft Subsidy
  News Release - February 1, 2001
• WTO Grants Canada Right to Impose Sanctions Against Brazil Over Aircraft Subsidy Dispute
  News Release - December 12, 2000
• WTO Grants Canada Record Award Over Brazilian Aircraft Subsidy
  News Release - August 28, 2000
• WTO Appellate Body Confirms Canadian View that Brazilian Aircraft Subsidy is Illegal
  News Release - July 21, 2000
• Canada Welcomes Brazil's Offer to Negotiate Compliance with WTO Ruling on PROEX
  Discussions are expected to take place within the next 10 days
  News Release - May 12, 2000
• WTO Confirms Brazilian Trade Subsidy is Still Illegal
  News Release including a Backgrounder on the Dispute and Canadian Retaliatory Options - May 9, 2000
• Canada Takes Steps to Pursue Brazilian Compliance with WTO Ruling on Regional Aircraft
  News Release - November 23, 1999
• Canada Announces Measures to comply with WTO Ruling on Regional Aircraft Subsidies
  News Release and Backgrounder - November 18, 1999
• WTO Confirms Canada's Win on Brazilian Aircraft Subsidies
  News Release - August 2, 1999
• Canada to Appeal WTO Ruling on Technology Partnerships Canada
  News Release - April 26, 1999
• Canada Wins WTO Panel with Brazil
  News Release - March 12, 1999
• Canada to Ask for WTO Panel on Brazilian Export Program
  News Release - July 10, 1998

Panel Proceedings

• A Summary of Canada's Submission in the Case Against the Brazilian PROEX Programme
  

• A Summary of Canada's Submission in Defense of Canadian Programmes

Panel Conclusions and Recommendations

• On Canadian Programmes
  

• PROEX Programme

Appeal Proceedings

• A Summary of Canada's Appellant Submission regarding the Panel findings on the Technology Partnerships Canada (TPC) Programme

• A Summary of Canada's Appellant Submission regarding the Panel findings on PROEX

Appelate Body Reports

• Appelate Body Findings and Conclusions on Canadian Programmes
• Appelate Body Findings and Conclusions on PROEX Programme
  

Dispute Settlement Body (DSB) - Meeting in Special Session on August 20, 1999 Canadian Statements to the DSB on:

• Brazil - Export Financing Programme for Aircraft: Report of the Appellate Body

• Canada - Measures Affecting the Export of civilian Aircraft: Report of the Appellate Body

Article 21.5 - Compliance Panels
Update on the Canada/Brazil Regional Aircraft Dispute, including:

• Link to the WTO Panel Reports - May 9, 2000
  Canada - Brazil (Part I - Part II) (.pdf format)
• Issue & Background
• Timetables for Panels
• Summary of Canada's DSU Article 21.5 Submission in the Case Against Brazilian Compliance
• Summary of Canada's DSU Article 21.5 Submission in Defense of Canadian Measure
• New Canada Account Policy Guideline under the Export Development Act

Article 21.5 - Appeals and Arbitration on Quantum of Retaliation
On May 22, 2000 Canada requested authority to retaliate against Brazil from the DSB. Brazil contested the Canadian level of retaliation and has requested arbitration. Brazil also filed notices of appeal against the recent rulings on PROEX and TPC. Canadian and Brazilian negotiators met in New York on May 23 and again in Geneva on June 22 and 23, 2000 to discuss possible ways to resolve the dispute. . Hearings on Brazil's appeals of the rulings on PROEX and TPC were heard on June 19 and 21. The arbitration panel examining Canada's retaliatory quantum heard oral arguments on July 14, 2000.

• Public Consultations on Retaliation
  The public consultation period has ended after an unprecedented 16 months. The WTO is currently examining this issue and no decision regarding retaliation has yet been made.

• Link to the WTO Arbitrator's report on Canada's level of retaliation against Brazil - 28 August 2000 (.pdf format)

• Link to the WTO Appellate body Reports - July 21, 2000

  • Recourse by Canada (.pdf format)

  • Recourse by Brazil (.pdf format)

• Statement by Canada to the WTO Dispute Settlement Body - May 22, 2000

• Time Lines for the Article 21.5 Appeals and Arbitration on Canada's Quantum of Retaliation

Article 21.5 on PROEX III - Second Recourse by Canada

• A Summary of Canada's Submission in the Case Against the Brazilian PROEX III Programme - April 10, 2001
• Second Panel Report on Brazil's Compliance
  Part 1, Part II, Part III, Part IV
• Final Report (pdf format)
  Part I (101 pages, 309 KB)
  Part II (195 pages, 553 KB)
  Part III (166 pages, 442 KB)
  Part IV (23 pages, 85 KB)
• Decision by the Arbitrator - February 17, 2003
  (PDF, 42 pages, 132 KB)

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