Air Transport World

WTO reaffirms earlier decision against Canada, Brazil.(World Trade Organization case regarding aircraft sales subsidies)(Brief Article)

The Appellate Body of the World Trade Organization upheld an earlier WTO decision that Canada and Brazil were subsidizing certain sales of regional aircraft illegally. The AB ruled that both countries must stop paying subsidies to Bombardier and Embraer on all undelivered aircraft within 90 days, a decision that most likely will impact the price of the manufacturers' respective aircraft.

Despite the implications, both manufacturers acted as if their support programs were not in danger, in part because of some ambiguous language in the AB report-language that sent the lawyers and spin doctors of both sides into high gear claiming the programs could survive with some modification. …

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