Canada - Export Credits and Loan Guarantees for Regional Aircraft

On 22 January 2001, Brazil requested consultations with Canada concerning subsidies which are allegedly being granted to Canada’s regional aircraft industry. Brazil’s claims are as follows: Export credits, within the meaning of Item (k) of Annex I to the SCM Agreement, are being provided to Canada’s regional aircraft industry by the Export Development Corporation (EDC) and the Canada Account. Loan guarantees, within the meaning of Item (j) of Annex I to the SCM Agreement, are being provided by EDC, Industry Canada, and the Province of Quebec, to support exports of Canada’s regional aircraft industry. Brazil takes the view that all of the above-mentioned measures are subsidies, within the meaning of Article 1 of the SCM Agreement, since they are financial contributions that confer a benefit. According to Brazil, they are also contingent, in law or in fact, upon export, and constitute, therefore, a violation of Article 3 of the SCM Agreement.