A new interim ruling by the World Trade Organisation (WTO) says Brazil's revised Proex export finance programme does not contravene international trade rules, but adds it is possible for Brazil to abuse the Proex programme so as to subsidise the sale of Embraer jets. The WTO has attached conditions for each loan: financing must be at market rates plus a premium for risk; loans must be for no longer than 10 years; and Proex loans must cover no more than 85% of the purchase price. In the latest stage in the long-running dispute between Canada and Brazil, Canadian manufacturer Bombardier says the WTO's decision does not change the current position. Bombardier adds that it will continue to seek Canadian Government financing to match Brazilian financing.
Source: Flight International
