CANADA – MEASURES CONCERNING TRADE IN COMMERCIAL AIRCRAFT COMMUNICATION FROM BRAZIL
Document: COMMUNICATION FROM
Date: 30 October 2017
Document codes: WT/DS522/8
Complainant: Brazil
Respondent: Canada
Third parties: China, EU, Japan, Russia, Singapore, U.S.
Dispute stage: Mutually Agreed Solution
Agreements cited: Art. 3.1(a), 3.2, 3.1(b), 5(c), 6.3(a), 6.3(b), 6.3(c), 6.4, 6.5  Subsidies and Countervailing Measures (SCM)

CANADA – MEASURES CONCERNING TRADE IN COMMERCIAL AIRCRAFT
COMMUNICATION FROM BRAZIL
The following communication, dated 25 October 2017, from the delegation of Brazil to the Annex V
Facilitator and to the Chairperson of the Dispute Settlement Body, is circulated at the request of
that delegation.

Brazil makes reference to Canada 's preliminary ruling request to the yet -to-be-composed panel in
the dispute Canada – Measures Concerning Trade in Commercial Aircraft (DS522) and the letter
sent to you requesting that the Annex V procedures be suspended until a decision on Canada 's
request is made by the Panel.
Brazil disagrees with the proposed suspension of the Annex V procedures. Canada 's procedural
tactics seem intended to delay and disr upt the collection of information solely in Canada 's control
and undermine Brazil's rights under the SCM Agreement and the DSU. Moreover, the acceptance
of Canada 's request would effectively nullify the Annex V process and the timetable expressly
provided under the SCM Agreement, because any responding Member could then simply raise any
DSU Article 6.2 objection and derail the Annex V procedures, to the detriment of the complaining
Member. The suspension of the procedures would render the dispute settleme nt process much
less effective, hinder the timely development of information, and endanger the well -functioning of
the dispute settlement and the Annex V processes.
Brazil understands that the Annex V procedures run independently from the panel proceedings and
are under the authority of the Facilitator alone, whose sole purpose, according to the text of
Annex V, is to "ensure the timely development of the information necessary to facilitate
expeditious subsequent multilateral review of the dispute."
This situation has happened before in the Korea – Measures Affecting Trade in Commercial Vessels
(DS273) dispute. Korea, the responding Member in that dispute, filed a preliminary ruling request
with regard to the panel 's terms of reference under Article 6.2 of the DSU and sent a letter to the
facilitator asking for the suspension of the Annex V procedures until a decision had been reached
on its preliminary claims. The facilitator correctly refused, reaffirming that his mandate was to
"ensure the timely develo pment of the information necessary to facilitate expeditious subsequent
multilateral review of the dispute ", as provided under paragraph 4 of Annex V. In that dispute,
Korea also asked the panel for the procedures to be suspended. The panel also correctl y refused,
understanding that it did not have authority to intervene in the procedure, which is "under the
control of the Facilitator".1
The Annex V procedures in the European Communities and Certain Member States – Measures
Affecting Trade in Large Civil Aircraft (DS316) also followed their due course despite requests for
preliminary rulings from the responding Member.
In light of these precedents and of the text and objectives of Annex V, Brazil requests that you
continue the Annex V procedures and sugge sts that the appropriate next step is to proceed with

establishing the working procedures and timetable for the Annex V procedures. Brazil is ready to
submit its questions to Canada and other third -country Members as soon as you finalize the
working procedures and timetable.
After the Panel is composed, Brazil will respond in detail to Canada 's request for a preliminary
ruling before the Panel.