Brazil delays retaliation for Canada jet subsidy

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GENEVA, June 3 (Reuters) - Brazil postponed plans to retaliate against
Canadian aircraft subsidies on Monday to allow more time for talks to end a
six-year dispute.

Brazil had been planning to ask the World Trade Organisation (WTO) on Monday
for permission to block up to $3.36 billion of Canadian exports to the South
American country. But both sides agreed to defer the issue until June 24.

"Both said they wanted more time," said one trade official after a meeting
of the WTO's Disputes Settlement Body.

The trade watchdog ruled in February that Canada had broken WTO subsidy
rules by giving subsidies to three airlines to purchase aircraft made by
Bombardier Inc (BBDb), rival of Brazil's jet maker Embraer (EMBR4)(ERJ).

Brazil said last month Ottawa had failed to comply with the ruling.


©2002 Reuters Limited.

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