Brazil joins OECD agreement on aircraft finance

(OECD, Paris, 30 July 2007) Major civil aircraft exporting countries, including OECD countries and Brazil, have signed an agreement limiting government support for export deals in an effort to end trade disputes and to encourage manufacturers and airlines to focus on price and quality rather than on financial packages of government support. The agreement, covers all types of civil aircraft, from jumbo jets to small planes and helicopters, and concerns the interest rates, loan guarantees and other conditions applied to export credits for aircraft sales. Brazil, which is not an OECD member, has subscribed only to this new civil aircraft Annex, and not to the broader OECD facilitated Arrangement, which is also cited as a safe haven for export subsidies under the WTO Agreement on Subsidies , an arrangement that has been challenged by Brazil.