SAO PAULO (Reuters) - Brazil joined the World Trade Organization's agreement on trade in civil aircraft on Friday, a move that was celebrated by planemaker Embraer as the pact would ensure tariff-free imports of components from member states.
The Brazilian government, which had applied to join the civil aircraft pact in 2022, said its entry had been approved by the 33 member countries at a meeting in Geneva.
Brazil-based Embraer is the world's third-largest planemaker, behind Boeing (NYSE:BA) and Airbus, and a global leader in segments such as regional and executive aviation.
"Until now Brazil was the only relevant aircraft producer and original WTO member not to participate in the agreement, while the main competitors of Brazilian aircraft were represented," the Brazilian government said in a statement.
Signatories of the deal, which came into force in 1980, include the European Union, China, Canada, Japan, Switzerland, Norway, the United Kingdom and the United States.
Brazil's government noted that the country's accession to the deal would bring positive impacts in terms of predictability of input prices and send a positive signal for attracting investments.
"Brazil's accession to the agreement is very positive and a relevant milestone to its international trade," Embraer Chief Executive Francisco Gomes Neto said in a separate statement.
The company said the move would consolidate import taxes on aircraft and aircraft parts at zero, "preventing any tariff barriers from being imposed between the signatory countries".