WTO to Canada: withdraw illegal subsidy

 - October 2, 2007, 11:31 AM

The World Trade Organization ruled that $1.13 billion in low-interest loans issued through Canada’s Export Development Corp. to support the sale of 51 Canadair Regional Jets to Appleton, Wis.-based Air Wisconsin constitutes an illegal government subsidy. An interim WTO report, issued last month in response to a formal protest by the government of Brazil, calls for the withdrawal of the loans. The Canadian industry minister’s insistence that Canada will fulfill its contractual obligations to Air Wisconsin drew a sharp rebuke from Embraer CEO Mauricio Botelho, who said “It is very concerning to see a high-ranking Canadian official, considering this defeat, challenging international law by announcing the continuation of these illegal subsidies.”