BRASILIA, May 22 (Reuters) - Brazil said on Monday it would still hold bilateral trade talks with Canada this week despite Ottawa's request to impose sanctions worth up to $3.3 billion over disputed Brazilian civilian aircraft subsidies.
Brazil's Foreign Ministry said chief trade negotiator Alfredo Graca Lima would fly to New York to meet with Canadian officials Tuesday in a bid to defuse the trade dispute, possibly the worst-ever between the two nations.
"Alfredo Graca Lima will be there. I still do not know who from Canada will attend," a ministry spokesman said.
The announcement comes the same day as Canada asked the World Trade Organisation to allow it to impose sanctions worth 700 million Canadian dollars ($468 million) a year for seven years over Brazilian subsidies to jet maker Embraer.
Rival Canadian aircraft maker Bombardier Inc. argues the subsidies have cost it $7.5 billion in lost sales. Bombardier and Embraer are the world's third and fourth largest civilian aircraft makers, respectively.
Meanwhile, Brazil on Monday tried to strip Canada's authority to impose sanctions by appealing the WTO ruling which found subsidies to Embraer had violated free trade rules.
The move has effectively delayed any decision by the WTO over Canada's authority to impose sanctions for up to three months while judges review Brazil's request for an appeal.:
