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Brazil files WTO complaint against Canada over alleged aircraft subsidies

February 9, 2017

Brazil notified the World Trade Organization (WTO) Secretariat on Wednesday that it had requested WTO dispute consultations with Canada regarding alleged subsidies provided to a Canadian aircraft manufacturer.

Brazil charges that the manufacturer received the equivalent of US$2.5 billion in government support in 2016.

The request for consultations formally initiates a dispute in the WTO. Consultations give the parties an opportunity to discuss the matter and to find a satisfactory solution without proceeding further with litigation.

After 60 days, if the Brazil and Canada are not able to reach a mutually agreed solution through consultations, Brazil may request that the WTO establish a dispute settlement panel to examine the matter.

Canada and Brazil have a long-running dispute over government subsidies to their respective aircraft manufacturing industries, and both sides have filed complaints against the other.

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