The report of the Panel on Canada – Measures Affecting the Export of Civilian Aircraft is being circulated to all Members, pursuant to the DSU. The report is being circulated as an unrestricted document from 14 April 1999 pursuant to the Procedures for the Circulation and Derestriction of WTO Documents (WT/L/160/Rev.1). Members are reminded that in accordance with the DSU only parties to the dispute may appeal a panel report. An appeal shall be limited to issues of law covered in the Panel report and legal interpretations developed by the Panel. There shall be no ex parte communications with the panel or Appellate Body concerning matters under consideration by the Panel or Appellate Body.
II. Introduction 1
III. Factual Aspects 2
IV. Findings and Recommendations requested by the parties 2
V. REQUESTS FOR PRELIMINARY RULINGS 4
A. CANADA’S REQUEST REGARDING THE PANEL’S JURISDICTION 4
B. request of canada for preliminary finding on jurisdiction: The SCM Agreement does not apply to contributions and transactions that took place before the entry into force of the WTO Agreement 19
C. BRAZIL’S REQUEST REGARDING ADDITIONAL FACT FINDING 20
D. CANADA’S REQUEST FOR A DEADLINE FOR THE SUBMISSION OF NEW EVIDENCE 27
E. BRAZIL’S REQUEST REGARDING DEADLINE FOR SUBMISSION OF NEW EVIDENCE 28
F. Arguments concerning the submission of evidence in response to panel questions posed in connection with the second meeting 31
G. PROCEDURES FOR PROTECTION OF BUSINESS CONFIDENTIAL INFORMATION 33
VI. ARGUMENTS OF THE PARTIES REGARDING LEGAL issues concerning SCM ARTICLES 1 AND 3 39
A. GENERAL 39
B. “SUBSIDY” PER SCM ARTICLE 1 44
C. “CONTINGENT, IN LAW OR IN FACT, … ON EXPORT PERFORMANCE” 48
VII. Arguments of parties regarding Canadian measures alleged by Brazil to be prohibited export subsidies in the sense of SCM Articles 1 and 3 62
A. Export Development Corporation (“EDC”) 62
B. Technology Partnerships Canada (“TPC”) and Predecessor Defence Industry Productivity Programme (“DIPP”) 97
C. Sale by Ontario of ownership share in de Havilland 116
D. Canada-Québec Subsidiary Agreement on Industrial Development 122
E. Société de Dévéloppement Industriel du Québec (“SDI”) 127
F. Arguments regarding the finan report submitted by brazil 130
G. arguments regarding the clark report 134
VIII. Arguments of Third Parties 140
A. european communities 140
B. submission of the united states 144
IX. interim review 149
X. FINDINGS 151
A. INTRODUCTION 151
B. PRELIMINARY ISSUES 152
C. DEFINITION OF "SUBSIDY" WITHIN THE MEANING OF ARTICLE 1 OF THE SCM AGREEMENT 171
D. EXPORT DEVELOPMENT CORPORATION 175
E. CANADA ACCOUNT 190
F. SALE TO BOMBARDIER BY THE ONTARIO AEROSPACE CORPORATION OF A 49 PERCENT INTEREST IN DE HAVILLAND INC. 195
G. BENEFITS PROVIDED UNDER THE CANADA-QUEBEC SUBSIDIARY AGREEMENTS ON INDUSTRIAL DEVELOPMENT 199
H. SOCIETE DE DEVELOPPEMENT INDUSTRIEL DU QUEBEC 203
I. TECHNOLOGY PARTNERSHIPS CANADA AND DIPP 206
XI. CONCLUSIONS AND RECOMMENDATION 224
I. BASIC PRINCIPLE 226
II. DEFINITIONS 226
III. SCOPE 228
IV. OBLIGATION ON PARTIES 228
V. SUBMISSION BY A PARTY 228
VI. STORAGE 229
VII. OBLIGATION NOT TO DISCLOSE 229
VIII. DISCLOSURE 230
IX. DISCLOSURE AT A PANEL MEETING 230
XI. TAPES AND TRANSCRIPTS 230
XII. RETURN AND DESTRUCTION 230