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Brazil to negotiate entry into the WTO agreement on trade in civil aircraft

Brazil will negotiate its accession to the Agreement on Trade in Civil Aircraft of the World Trade Organization (WTO), informed the Ministry of Economy on 04/13. With this, it intends to facilitate the access of Brazilian products to a global market estimated at USD 3 trillion. The mandate to negotiate was approved by the Commercial Strategy Council (CEC, in Portuguese) of the Foreign Trade Chamber (Camex, also in Portuguese). The CEC defines the main lines of Brazilian trade policy. “Brazil is the only relevant producer of aircraft and a founding partner of the WTO still outside the agreement, which came into force in 1980 and brings together 33 members of the organization”, the Ministry of Economy said in a statement. “Furthermore, [accession to the agreement] has the potential to reduce the negative impact of the Covid-19 pandemic on the aviation sector, exacerbated by the war in Ukraine.” The WTO agreement on aircraft trade will facilitate the entry of products in the markets of countries that signed the agreement and access to tariff-free goods in the segment’s production chains, the ministry said. It also establishes commitments to promote a free market environment in the sector, curbing non-tariff measures that limit trade, such as quantitative restrictions and the requirement for licenses and certifications that restrict trade and that contravene the General Agreement on Tariffs and Trade (GATT). “In addition to the benefits related to predictability and legal certainty, membership will allow the national airline industry to have access privileged space for discussions and debates on best regulatory practices in the sector”, commented in a note the Secretary of Foreign Trade of the Ministry of Economy, Lucas Ferraz. According to the ministry, Brazil has already informed the other members of Mercosur about its intention to start the accession process. In addition, he asked if there is interest in accompanying the country, a possibility that is still being evaluated by the partners. This new negotiation front reinforces the multilateral trade liberalization agenda, and reinforces the portfolio. The government has already granted a negotiating mandate for Brazil to adhere to the WTO’s public procurement agreement, reinforces the Ministry of Economy. – https://valor.globo.com/brasil/noticia/2022/04/13/brasil-vai-negociar-ingresso-no-acordo-da-omc-sobre-comercio-de-aeronaves-civis.ghtml