[7] Embraer SA claimed that the subsidies are an "unsustainable practice that distorts the entire global market, harming competitors at the expense of Canadian taxpayers.
A 1999 WTO ruling[11] named a Brazilian scheme paying banks providing loans to Embraer clients, the Proex program, an illegal subsidy.
"[11] A 2000 WTO ruling[13] requested the Brazilian government eliminate the Proex (Programa de Financiamento às Exportações) program, as it was, in fact, an illegal subsidy.
[14] The ruling stated, "...we conclude that Brazil has failed to implement the ...1999 recommendation that it withdraw the export subsidies for regional aircraft under PROEX within 90 days.
"[16] A WTO panel also ruled that Canada illegally subsidized its indigenous regional airliner industry, comprising Bombardier Aerospace.