Major aircraft exporting countries have signed a pact that limits government financing support on aircraft sales, says the Organisation for Economic Cooperation and Development (OECD).
The agreement, announced on 30 July, updates a 21-year-old pact and marks the first time non-OECD member Brazil has agreed to come under its provisions. Other signatories are Australia, Canada, the European Union, Japan, New Zealand, South Korea, Switzerland and the USA.
"We are particularly pleased to see Brazil joining other leading world producers and exporters of civil aircraft in making this agreement possible," says OECD secretary-general Angel Gurria.
The OECD says the agreement will increase transparency in civil aircraft export financing by setting maximum repayment periods, as well as minima for risk premium rates and interest rates.
The agreement is intended to "end acrimonious trade disputes" in the civil aircraft sector, says the OECD. "These negotiations succeeded because the main governments involved in export financing in the aircraft sector were willing to reach compromises to deter future trade distortions," says Nicole Bollen, a senior Dutch finance ministry official, who chaired the discussions.
It was not immediately clear if the agreement would affect the ongoing trade dispute between Airbus and Boeing at the World Trade Organisation, where both sides have filed cases claiming unfair government support for new aircraft development.
The OECD agreement is drafted to allow future aircraft exporters, such as Russia and China, to join after a waiting period of at least two years.
The agreement covers all types of civil aircraft, ranging from helicopters to business jets to small and large airliners.
Source: Flight International