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Dispute Settlement Body 19 February 2002

DSB adopts report on aircraft case

At its meeting on 19 February, the Dispute Settlement Body adopted the panel report on “Canada — export credits and loan guarantees for regional aircraft”, a complaint by Brazil.

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This summary has been prepared by the WTO Secretariat’s Information and Media Relations Division to help public understanding about developments in WTO disputes. It is not a legal interpretation of the issues, and it is not intended as a complete account of the issues. These can be found in the reports themselves and in the minutes of the Dispute Settlement Body’s meetings.

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Implementation of the recommendations of the DSB

Case DS 176: United States — Section 211 Omnibus Appropriations Act of 1998

The United States said it intended to comply and would require for that purpose a reasonable period of time. The European Communities said that the US should comply as soon as possible. They added that they were willing to discuss with the US the period of time.


Adoption of report

Case DS 222: Canada — Export credits and loan guarantees for regional aircraft

The DSB adopted the panel report. Brazil said that it acknowledged with satisfaction that Canada had been found to provide prohibited export subsidies to support the export of aircraft. Brazil added that it was an important step in restoring the level playing field in the aircraft sector. Finally, Brazil said it hoped that bilateral efforts in the search of a mutually satisfactory solution would be successful.

Canada said that despite its reservations about certain aspects of the panel's report, it believed that it was preferable to seek a solution through negotiation rather than through continued WTO litigation. Canada added that on 8 February 2002 senior Canadian and Brazilian negotiators met and that they had agreed to resume negotiations in April.

The EC and the US expressed concern about the panel's conclusions on the relationship between the WTO's Subsidies Agreement and the OECD arrangement on export credits.

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New chairman

The DSB elected by acclamation Ambassador Pérez del Castillo of Uruguay as its new chairman.

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Next meeting

The next regular meeting of the DSB will take place on 8 March 2002.


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