OTTAWA, Feb 8 (Reuters) - Canada's negotiations with Brazil over their simmering regional aircraft subsidy dispute on Friday did not reach a breakthrough but did establish what they expect from the talks, a Canadian spokesman said. The two sides met in New York to work on their fierce differences over Brazil's subsidies to Embraer SA (EMBR3) and Canada's subsidies to its Bombardier Inc. (BBDb). The two companies are fierce competitors in the small jet market. Sebastien Theberge, spokesman for Canadian International Trade Minister Pierre Pettigrew, said the two sides agreed to meet again, possibly in early April. The Canadian position is that both sides would be better off if all aircraft subsidies were eliminated, and Pettigrew told CBC television that the Brazilians appeared now to recognize that the subsidy costs were prohibitive. "I am very encouraged that the foreign affairs minister, Celso Lafer, acknowledges that the resources it costs them to support their aircraft exports are so huge that they might be of better use helping other industrial sectors export," Pettigrew said. One factor which will influence the outcome of the talks is whether Canada decides to appeal a Jan. 28 decision by the World Trade Organization that it broke international trade rules by offering a C$1.7 billion ($1.1 billion) low-interest loan to help Bombardier sell 75 aircraft to Air Wisconsin. Canada said it offered that loan simply to bring Brazil to its senses by matching Brazil's concessionary terms. ©2001 Reuters Limited.