WTO rules against Brazilian jet subsidies

The World Trade Organization has upheld a ruling against Brazil in an aircraft trade dispute with Canada.

The WTO says Brazil's subsidy program supporting Embraer, the world's fourth largest civil aircraft maker, violates international trade regulations.

Last August, the WTO's dispute settlement body ordered the South American country to withdraw export subsidies for regional aircraft within 90 days.

The trade organization confirmed Friday that Brazil's ProEx subsidy program must be withdrawn on all Embraer aircraft delivered after Nov. 18, 1999.

Canada says the program undercuts Bombardier, the world's third largest civil airplane maker.

The ruling should allow Ottawa to impose trade sanctions on Brazil, although both countries have said they are willing to hold more talks on the issue.

On a more positive note for Embraer, it joined the listings on the New York Stock Exchange Friday. The company will trade its American Depositary shares under the ticker symbol ERJ.