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Sky-High Opportunities: Washington State's Aerospace Sector and Brazil's New Trade Horizons

The skies are broadening for Brazil's aerospace sector with its landmark accession to the World Trade Organization's (WTO) Agreement on Trade in Civil Aircraft (TCA). On November 17, 2023, Brazil formalized its membership to the TCA at a ceremony in Geneva, marking a pivotal step in Brazil's integration into the global aviation market.


This move comes after a significant preparatory period; Brazil had submitted its application to join the TCA in June 2022, along with its proposed tariff commitments, signaling its readiness to comply with the agreement's liberalization goals. The country's aerospace flagship, Embraer, has welcomed this development, emphasizing the positive implications for Brazil's international trade and its aerospace industry.

Being the third-largest commercial aircraft manufacturer, Embraer's enthusiasm is well-placed as this accession opens up new vistas for trade and cooperation. Brazil will now join the discussions on the trade rules for civil aircraft among the major countries in the sector, standing shoulder to shoulder with heavyweights like the United States, the European Union, and Canada.


The TCA aims to eliminate import tariffs on all civil aircraft, a move that, while already in practice to a large extent by Brazil, brings additional benefits like enhanced legal security and predictability for the aviation sector. Such predictability is crucial for attracting investments and reducing costs for airlines and service providers. The agreement also tackles non-tariff barriers, ensuring a smoother international trade flow for Brazilian aerospace products.


Brazil's engagement in the TCA is not just about market access; it's about active participation in shaping the rules that govern the $3.73 trillion global trade in aerospace products. With the TCA covering a substantial part of Brazil's annual trade balance of USD 41.4 billion, the strategic move signifies Brazil's broader ambitions to play a more influential role in the global economy.


The accession process was thorough, involving in-depth technical analysis and consultations with Brazilian private sector stakeholders. Next, the accession instrument will be presented to Brazil's National Congress for evaluation, the final step towards Brazil's full commitment to the TCA's objectives.


Brazil's entry into the TCA is more than a mere formalization; it's a statement of intent, a leap forward in its journey to becoming an aviation powerhouse on the global stage.


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