Brazil withdraws dispute complaint against Canadian aircraft measures

Brazil on Friday formally notified the World Trade Organization that it was withdrawing its commercial aircraft trade dispute complaint against Canada, the WTO said in a statement.

Brazil also requested that the WTO panel reviewing its complaint indefinitely suspend its work. 

The notification, circulated to WTO members on Friday, is attached.

The measures in question concerned:

  • The Quebec Aeronautical Industry Development Strategy;
  • “Launch aid” and related financing for Bombardier, Inc.;
  • Other research and development subsidies
  • Equity infusions, including Quebec’s provision of US$1 billion to Bombardier for cash flow purposes of the C-Series program;
  • Provincial and local subsidies relating to Bombardier’s C-Series production facilities;
  • Other Quebec provincial subsidies.

Brazil secured the establishment of a panel to rule on its complaint on 29 September 2017.  At the request of Brazil, the panel suspended its work on 25 November 2019 until 15 April 2020. Subsequently, on 9 April 2020 Brazil requested that the panel continue to suspend its work until 4 November 20202, and on 29 October 2020 Brazil requested that the panel continue to suspend its work until 23 November 20203. The panel resumed its work on 23 November 2020.

Brazil said it maintains the view that theCanadian  measures challenged are inconsistent with WTO subsidy rules.

Under WTO rules, the authority of the panel automatically lapses if the panel’s work is suspended for more than 12 months.

Further background on the dispute is available here.

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