WTO rules against Canada in aircraft dispute

An arbitration panel of the World Trade Organization (WTO) has ruled in favour of Brazil in its dispute with Canada over the financing of aircraft. The panel ruled that Brazil can impose countermeasures worth $385 million against Canada, down considerably from the $5.2 billion that Brazil was originally seeking. The two countries have been battling for more than six years over subsidies to their respective commercial aircraft industries, with Brazil challenging previously the use of Technology Partnerships Canada assistance, resulting in changes to that program. The most recent dispute involves the use of Canadian government loan assistance to assist aircraft sales by Bombardier. In 2000, Canada won a settlement against Brazil for its use of subsidies for its Embraer aircraft, authorizing up to $2.1 billion in countermeasures. The latest arbitration settlement marks the end to all current and outstanding disputes….