Brazil has welcomed a World Trade Organization ruling that Canada broke global trade rules by offering low-interest loans to Canadian jet maker Bombardier.

The ruling on Monday was the first WTO defeat for Ottawa in a six-year-old trade battle between Canada and Brazil over subsidies to their major aircraft makers.

Canada says its subsidies were in response to preferential-rate loans Brazil made to its aircraft manufacturer, Embraer.

Both Bombardier and Embraer make business jets and regional aircraft.

Canadian and Brazilian officials are to meet early next month in New York for another round of negotiations on their dispute.

Some information for this report provided by AP and AFP.

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