WTO move may challenge aviation sector in Brazil

Significance

The announcement comes amid uncertainties regarding the industry’s recovery after the pandemic and the war in Ukraine, which resulted in disruption in production chains and delays in aircraft delivery.

Impacts

• The already large share of foreign components in Embraer's aircraft could increase as a result of the move.
• Given the international outlook, slow recovery is expected for the aviation market.
• Deregulation in Brazilian aviation may not be enough to ease structural issues caused by the pandemic.