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Brazil to sign agreement to exempt planes and parts

The decision was confirmed by the Foreign Trade Secretary of the Ministry of Economy, Lucas Ferraz, who is in Geneva in meetings with partner countries. Brazil will adhere to the Agreement on Trade in Civil Aircraft at the World Trade Organization (WTO). With this, it will no longer be the last relevant producer of aircraft in the world outside of this understanding that eliminates import tariffs in the segment. Now, the mandate for negotiation needs to be approved by the Trade Strategy Council at an inter-ministerial meeting headed by President Jair Bolsonaro. The Civil Aircraft Trade Agreement entered into force in 1980, and has 33 signatory countries. Most WTO agreements are multilateral, which means all 164 member countries participate. This understanding is a part of the plurilateral agreements, signed by a restricted number of countries that decided to open it up. It provides for the elimination of import tariffs levied on all civil aircraft and all products in the sector such as aircraft engines, their parts, components, flight simulators, etc. Embraer has always wanted Brazil to participate in this agreement, says the secretary. In the aeronautical sector, there is a strong insertion of global chains, with 90% of the value of an airplane being imported content, in general. In Brazil, according to Ferraz, the movement in this sector represents around USD 40 MM in imports and exports. The import rates involved are practically zero in Mercosur. “It is important for Brazil to participate because, in addition to having access to other markets with zero tariffs on exports, it provides legal security for opening up its market”, said the secretary. – https://valor.globo.com/empresas/noticia/2022/03/25/brasil-vai-aderir-a-acordo-para-desonerar-avioes-e-pecas.ghtml