Canada – Export Credits and Loan Guarantees for Regional Aircraft (WT/DS222): Report of the Panel

Summary

INTRODUCTION

Complaint of Brazil

On 22 January 2001, Brazil requested consultations with Canada pursuant to Article XXIII:1 of the General Agreement on Tariffs and Trade 1994 (“GATT 1994”), Article 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (“DSU”), and Article 4 of the Agreement on Subsidies and Countervailing Measures (“SCM Agreement”) regarding certain alleged subsidies granted by the Government of Canada and the Province of Québec that support the export of regional aircraft from Canada.

Brazil and Canada held consultations on 21 February 2001, but failed to reach a mutually satisfactory solution.

On 1 March 2001, Brazil requested the establishment of a panel pursuant to Article XXIII of the GATT 1994, Article 6 of the DSU, and Article 4.4 of the SCM Agreement.

Establishment and Composition of the Panel

The Dispute Settlement Body (“DSB”) established a panel on 12 March 2001, with standard terms of reference. The terms of reference of the Panel are:

To examine, in the light of the relevant provisions of the covered agreements cited by Brazil in document WT/DS222/2, 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 7 May 2001, 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 Di-rector-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 panelists 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.