Canada - Measures Affecting the Export of Civilian Aircraft (WT/DS70) Report of the Panel

Summary

INTRODUCTION

On 10 March 1997, Brazil requested consultations with the Government of Canada pursuant to Article 4 of the Agreement on Subsidies and Countervailing Measures (“SCM Agreement”) regarding certain alleged subsidies granted by the Government of Canada or its provinces that support the export of civilian aircraft from Canada.

Brazil and Canada held consultations on 30 April 1997, but failed to reach a mutually satisfactory solution.

On 10 July 1998, pursuant to Article 4.4 of the SCM Agreement and Article 6 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (“DSU”), Brazil requested the immediate establishment of a panel with standard terms of reference.

At its meeting on 23 July 1998, the DSB established a panel pursuant to the request by Brazil (WT/DS70/2).

At that DSB meeting, parties agreed that the Panel should have standard terms of reference. The terms of reference of the Panel are the following:

“To examine, in the light of the relevant provisions of the covered agreements cited by Brazil in document WT/DS70/2, the matter referred to the DSB by Brazil in that document and to make such findings as will assist the DSB in making the recommendations or in giving the rulings provided for in those agreements”.

On 16 October 1998, Brazil requested the Director-General to determine the composition of the Panel, pursuant to paragraph 7 of Article 8 of the DSU. This paragraph provides:

“If there is no agreement on the panelists within 20 days after the date of the establishment of a panel, at the request of either party, the Director-General, in consultation with the Chairman of the DSB and the Chairman of the relevant Council or Committee, shall determine the composition of the panel by appointing the panellists whom the Director-General considers most appropriate in accordance with any relevant special or additional rules or procedures of the covered agreement or covered agreements which are at issue in the dispute, after consulting with the parties to the dispute. The Chairman of the DSB shall inform the Members of the composition of the panel thus formed no later than 10 days after the date the Chairman receives such a request.”