WORLD TRADE
ORGANIZATIONWT/DS46/25
1 December 2000
(00-5197)
Original:  English
BRAZIL – EXPORT FINANCING PROGRAMME FOR AIRCRAFT
Recourse by Canada to Article 22.7 of the DSU
and Article 4.10 of the SCM Agreement
The following communication, dated 30 November 2000, from the Permanent Mission of
Canada to the Chairman of the Dispute Settlement Body, is being circulated pursuant to Article 22.7
of the DSU and Article 4.10 of the SCM Agreement.
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Canada requests that the following item be placed on the agenda of the Dispute Settlement
Body (DSB) meeting to be held on 12 December 2000:
Brazil – Export Financing Programme for Aircraft:  Recourse by Canada to
Article 22.7 of the Understanding on Rules and Procedures Governing the Settlement
of Disputes (DSU) and Article 4.10 of the Agreement on Subsidies and
Countervailing Measures (the SCM Agreement)
On 22 May 2000, Canada requested authorization from the DSB to take appropriate
countermeasures against Brazil pursuant to Article 4.10 of the SCM Agreement and Article 22.2 ofthe DSU.  Brazil objected to Canada's proposed level of suspension and the matter was referred to
arbitration pursuant to Article 22.6 of the DSU.
In their award of 28 August 2000 (WT/DS46/ARB), the Arbitrators decided that:  "the
suspension by Canada of the application to Brazil of tariff concessions or other obligations underGATT 1994, the Agreement on Textiles and Clothing and the Agreement on Import Licensing
Procedures covering trade in a maximum amount  of C$344.2 million per year would constitute
appropriate countermeasures within the meaning of Article 4.10 of the SCM Agreement".
At the meeting of the DSB on 12 December 2000, Canada intends to request, pursuant to
Article 22.7 of the DSU and Article 4.10 of the SCM Agreement, authorization from the DSB to
suspend the application to Brazil of tariff concessions or other obligations under GATT 1994, the
Agreement on Textiles and Clothing and the Ag reement on Import Licensing Procedures covering
trade in a maximum amount of C$344.2 million per year.
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