./.WORLD TRADE
ORGANIZATIONWT/DS46/17
22 May 2000
(00-2100)
Original:  English
BRAZIL – EXPORT FINANCING PROGRAMME FOR AIRCRAFT
Recourse by Canada to Article 21.5 of the DSU
Notification of an Appeal by Brazil under paragraph 8 of
Article 4 of the Agreement on Subsidies and Countervailing Measures
and paragraph 4 of Article 16 of the Understanding on Rules
and Procedures Governing the Settlement of Disputes
The following notification, dated 22 May 2000, sent by Brazil to the Dispute Settlement
Body (DSB), is circulated to Members.  This noti fication also constitutes the Notice of Appeal, filed
on the same day with the Appellate Body, pursuant to the Working Procedures for Appellate Review .
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The Government of Brazil hereby notifies the Appellate Body and the Dispute Settlement
Body of its decision to appeal certain issues of law and legal interpretations developed by the Panel inits Report on  Brazil – Export Financing Programme for Aircraft – Recourse by Canada to
Article 21.5 of the DSU , as well as certain legal findings and conclusions of the Panel.
Brazil gives this notice pursuant to Article 4.8 of the Agreement on Subsidies and
Countervailing Measures , Article 16.4 of the  Understanding on Rules and Procedures Governing the
Settlement of Disputes , and Rules XX and XXI(1) of the  Working Procedures for Appellate Review .
Brazil asks that the Appellate Body reverse the following legal findings and conclusions of
the Panel, and the legal interpretations that support these findings and conclusions:
1. That Brazil's continued issuance of PROEX support, pursuant to letters of commitment issued
prior to 18 November 1999, is inconsistent with the requirements of Article 3.2 of theAgreement on Subsidies and Countervailing Measures  ("SCM Agreement ").
2. That the first paragraph of Item (k) of Annex I to the  SCM Agreement  cannot be used to
establish that PROEX interest equalization payments for aircraft are permitted.
3. That payments under PROEX are not "payments" within the meaning of the first paragraph of
Item (k) of Annex I to the  SCM Agreement .
4. That PROEX payments are used to secure a material advantage in the field of export credit
terms within the meaning of the first para graph of item (k) of Annex I to the  SCM
Agreement .
5. That Brazil's measures to comply with the recommendations and rulings of the Dispute
Settlement Body do not exist or are not consistent with the  SCM Agreement , and that Brazil
has failed to implement the DSB's 20 August 1999 recommendation.WT/DS46/17
Page 2
To the extent required by any of these requested reversals, Brazil also asks that the Appellate
Body complete the Panel's analysis, as appropriate.
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