Friday saw Brazil ratify the World Trade Organization‘s agreement on trade in civil aircraft. Embraer (EMBR3.SA), a manufacturer of aircraft, welcomed the move, as it guaranteed tariff-free imports of parts from member nations.
The Brazilian government announced at a meeting in Geneva that the 33 member nations had accepted its application to join the civil aircraft pact in 2022.
Based in Brazil, Embraer is a global leader in aviation segments like executive and regional aviation and the third-largest planemaker in the world, behind Boeing (BA.N) and Airbus (AIR.PA).
“Until now Brazil was the only significant aircraft producer and original WTO member not taking part in the agreement, whereas the primary rivals of Brazilian aircraft were represented,” according to a statement issued by the Brazilian government.
The European Union, Canada, China, Japan, Norway, Switzerland, the United Kingdom, and the United States are among the parties to the agreement, which went into effect in 1980.
According to Brazil’s government, the country’s entry into the agreement would improve input price predictability and serve as a signal to draw in foreign investment.
Francisco Gomes Neto, the CEO of Embraer, stated in a separate statement that “Brazil’s accession to the agreement is very encouraging and a relevant achievement to its international trade.”
The action, according to the company, would “prevent any tariff barriers from being placed between the signatory countries” by combining import taxes on aircraft and aircraft parts at zero.