WTO Again Faults Canada, Brazil on Subsidies

The World Trade Organization reported that panels had found that Brazil and Canada had failed to cut subsidies to aircraft producers to bring them in line with the body’s rules. The twin rulings, partly leaked in the two countries in the last few days, marked the latest stage in a long-running dispute focused on government aid to Canada’s Bombardier Inc. and Brazil’s Embraer. Brazilian officials have already said they will appeal the finding, which said changes made by Brazil to its ProEx subsidy program after an earlier WTO ruling did not bring it into line with the trade body’s agreements on subsidies. Canadian officials had earlier declined to comment on the latest finding, which was sent by the WTO to Ottawa earlier this month, on subsidies to Bombardier. The report, issued on the WTO Web site, found that Canada had implemented an earlier panel recommendation but said Canada had failed to implement another part of that recommendation, to halt its Canada Account support to the industry within the same time frame. The dispute, which has been rumbling on for more than three years, reflects competition on the regional jet market between Bombardier and Embraer, the world’s third- and fourth-largest aircraft manufacturers.