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April 20, 2018
WTO panel says Brazil's complaint against Canadian aircraft can proceed
Brazil initiated a complaint at the World Trade Organization (WTO) last year regarding alleged subsidies provided by the Canadian Government to a Canadian aircraft manufacturer.
In October 2017, in a bid to end proceedings at the Panel appointed by the WTO, Canada requested a preliminary ruling on certain aspects of Brazil's complaint.
Canada claimed that Brazil's request for the establishment of a panel failed to meet the requirements of the Understanding on Rules and Procedures Governing the Settlement of Disputes, and that certain measures in that request fall outside the Panel's terms of reference.
In its preliminary ruling issued on April 9, the panel found Brazil's complaint to be in compliance with WTO rules. The panel will now proceed to hear arguments from both Brazil and Canada over the alleged subsidies.
Canada and Brazil have a long-running dispute over government subsidies to their respective aircraft manufacturing industries, and both sides have filed WTO complaints against the other.
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