Decisions of the Appellate Body of the World Trade Organization

Canada-Measures Affecting the Export of Civilian Aircraft

2. Facts

This dispute involved several Canadian measures that Brazil alleged were export subsidies prohibited by the SCM Agreement. First was financing and loan guarantees provided by the Canadian Export Development Corporation ("EDC"). Second was support provided to the civil aircraft industry by the Canada Account. Third was support provided by Technology Partnerships Canada ("TPC"). Fourth was the sale by Ontario Aerospace Corporation of a 49 per cent interest in a civil aircraft manufacturer to another civil aircraft manufacturer, allegedly on better than commercial terms. The panel found that the TPC and Canada Account measures constituted prohibited export subsidies, and rejected Brazil's complaints as to the other claims. The Appellate Body upheld these findings.

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