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.