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The aerospace industry in general has a history of being subsidized by their home governments, be it Airbus or Boeing for large jets and Bombardier and Embraer for regional jets. The US-EU dispute over the subsidies given to Airbus and Boeing is a similar case in that it involved the aerospace industry, however, they came to an agreement that was WTO compliant and at the same time allowed for a certain amount of subsidies. Canada and Brazil, on the other hand, are in the middle of a trade war, with Canada having recently banned the importing of Brazilian beef on the ostensible grounds of preventing mad-cow disease.

The Brazil-Canada dispute has its genesis in a new segment of the civilian aircraft market – regional jets flying routes less than 1,000 km in an average travel time of an hour. Regional jets are relatively new and have been driving the smaller propeller-driven aircraft out. This is largely due to two reasons: As airlines expanded using the hub and spoke system, they......

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Approximate Word Count: 1235
Approximate Pages: 5 (250 words per double-spaced page)

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