WORLD TRADE WT/DS46/4
4October 1996
ORGANIZATION(96-4039)
Original: English
BRAZIL -EXPORT FINANCING PROGRAMME FOR AIRCRAFT
Request fortheEstablishment ofaPanel byCanada
Thefollowing communication, dated 3October 1996, fromthePermanent Mission ofCanada
totheChairman oftheDispute Settlement Body, iscirculated attherequest ofthatdelegation.
_______________
On18June1996, theGovernment ofCanada requested consultations withtheGovernment
ofBrazilconcerningcertainexportsubsidiesgrantedunderitsProgramadeFinanciamentoàsExportações
("PROEX") toforeign purchasers ofBrazil 'sEmbraer aircraft. Inaccordance withArticle 4ofthe
Understanding onRules andProcedures Governing theSettlement ofDisputes ("DSU"), thatrequest
wasnotifiedtotheDisputeSettlementBody("DSB")andtheCommitteeonSubsidiesandCountervailing
Measures. Therequest wascirculated toMembers oftheWorld Trade Organization on21June1996
(WT/DS46/1).
TheBrazilianmeasuresinquestionincludeBrazilianLaw8.187establishingPROEX,Resolution
2.224/95 oftheCentral BankofBrazil, Order No.15/96 andRegulation 368/95 oftheBrazilian Ministry
ofStateforIndustry, Trade andTourism. These measures provide forthepayment ofexport subsidies
through aninterest rate"equalization" programme. TheGovernment ofCanada requested the
consultationstoaddressitsconcernsthattheseexportsubsidieswereinconsistentwithBrazil'sobligations
under theAgreement onSubsidies andCountervailing Measures (the"SCM Agreement").
Canada andBrazil heldtheconsultations inGeneva on22July1996 and25July1996 with
aviewtoreaching asatisfactory resolution ofthematter. Unfortunately, theconsultations failed to
settlethedispute. There arenoindictions tosuggest thatfurther consultations arelikely tobeproductive.
Pursuant toArticles 4and30oftheSCM Agreement, Canada requests thataPanel be
immediately established atthemeeting oftheDSBscheduled for16October 1996.
Canada further requests thatthePanel consider andfindthattheInterest RateEqualization
component ofPROEX isinconsistent withArticle 3oftheSCM Agreement.
IfthePanelfindsthattheInterestRateEqualizationSystemcomponentofPROEXisinconsistent
withArticle 3oftheAgreement onSubsidies andCountervailing Measures, Canada alsorequests that
thePanel recommend thattheInterest RateEqualization System component ofPROEX, andallpayments
scheduledundertheInterestRateEqualizationSystemcomponentofPROEX,beterminatedimmediately
pursuant toArticle 4oftheAgreement onSubsidies andCountervailing Measures.
Canada requests thatthePanel beimmediately established inaccordance withtheaccelerated
procedure setoutinArticle 4oftheSCM Agreement withthestandard terms ofreference setoutin
Article 7oftheDSU. Canada further requests thatthisrequest fortheestablishment ofaPanel be
inscribed ontheagenda ofthemeeting oftheDSBscheduled for16October 1996.