. /.WORLD TRADE
ORGANIZATIONWT/DS46/12
24 November 1999
(99-5101)
Original:  English
BRAZIL – EXPORT FINANCING PROGRAMME FOR AIRCRAFT
Status Report by Brazil
The following communication, dated 19 November 1999, from the Permanent Mission of
Brazil to the Dispute Settlement Body, is circulated pursuant to Article 21.6 of the DSU.
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Status Report on the Implementation of the Recommendations and Rulings in the
Dispute Regarding Brazil – Export Financing Programme for Aircraft
At the DSB meeting of 20 August 1999, the Panel and Appellate Body reports regarding the
case "Brazil – Export Financing Programme for Aircraft" were adopted (WT/DS46/R and
WT/DS46/AB/R).  Brazil was thereb y required to bring the measures found to be inconsistent with its
obligations under the Agreement on Subsidies and Coun tervailing Measures into conformity with that
Agreement within 90 days.
On 13 September, pursuant to Article 4.9 of the SCM Agreement and Article 21.3 of the
DSU, Brazil informed the Dispute Settlement Body, in writing (WT/DS46/11), of its intention to
comply with he recommendations contained in the reports cited above.
My authorities have now instructed me to info rm you that Brazil has effectively implemented
the DSB recommendations within the 90 day period established by the Panel and upheld by the
Appellate Body.
Equalisation payments under PROEX will be grante d only to the extent that the net interest
rate applicable to a transaction under that Programme is brought down to the appropriate international
market "benchmark".
All implementing legislation is fully compatible with Provisory Measure 1892-32, dated
22 October 1999, which establishes in Article 1:
"In financing operations linked to exports of national goods or services and
employing resources from the Special Progamme for Official Credit Operations, the
National Treasury may contract, within the framework of "PROEX – Programa de
Financiamento às Exportações", financial obligations compatible with thosenegotiated in the international market."
1
                                                     
1 Unofficial translation.  Text in Portuguese reads as follows: "Nas operações de
financiamento com recursos da programação Es pecial das Operações Oficiais de Crédito,
vinculadas à exportação de bens ou serviços Nacionais, o Tesouro N acional poderá pactuarWT/DS46/12
Page 2
The implementing regulation includes:
(i) a Resolution by the National Monetary Council altering its own Resolution
2576, dated 17 December 1998, which establishes the criteria applicable to
PROEX interest rate equalisation payments;  and
(ii) a Central Bank Circular Letter which establishes new maximum equalisation
percentages and revokes Circular Letter 2843, dated 25 March 1999.
These regulations will be published at the official gazette in the next few days.
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encargos financeiros compatíveis com os praticados no mercado internacional, no âmbito do
Programa de Financiamento às Exportações – PROEX."