=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SF Gate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2002/02/19/f= inancial1311EST0117.DTL ---------------------------------------------------------------------- Tuesday, February 19, 2002 (AP) Canada will not appeal WTO ruling on aircraft subsidies (02-19) 10:11 PST GENEVA (AP) -- Canada on Tuesday decided against appealing a World Trade Organization ruling that loans it provided to a jetmaker were illegal, saying it preferred to negotiate a settlement of its long-running dispute with Brazil on the issue. "This does not imply that Canada agrees with all of the ... findings," said Canadian Ambassador Sergio Marchi. But, he added, "we believe it is preferable now to seek a solution through negotiation rather than through continued WTO litigation." Canada claims that its cut-rate loans to finance sales by Quebec's regional jetmaker Bombardier Inc. were to match Brazilian aid to its own jet manufacturer, Embraer SA. A WTO investigation panel ruled last month that the Canadian government support that helped Bombardier clinch three recent contracts with U.S. and Spanish airlines worth about $4 billion had violated trade rules. It urged Ottawa to "withdraw the subsidies ... without delay." Both Bombardier and Embraer make business jets and regional aircraft. Ov= er the past decade, Embraer has come from nowhere to challenge the Canadian manufacturer for third place in the world aviation manufacturers' rankings behind Boeing Co. and Airbus Industrie SA. During the five-year dispute, the WTO has at various times ruled against the subsidy programs of both countries and last year the case almost erupted in an all-out trade war. After hearing that Canada would not appeal, the WTO's Dispute Settlement Body adopted the report. Under WTO procedures, Canada must now tell the organization how it plans to implement the ruling. "We sincerely hope that Canada will reconsider its actions," said Brazilian Ambassador Luis Felipe de Seixas Correa. "Brazil also hopes that the bilateral efforts in the search for a mutual= ly satisfactory solution are successful and that Embraer and Bombardier will be allowed to compete on an equal footing." Marchi said the two countries had agreed to resume negotiations in April. =20 ---------------------------------------------------------------------- Copyright 2002 AP