OECD: Participants Begin Formal Review of the

UNCLAS PARIS 001747 SIPDIS FROM USOECD STATE PASS USTR FOR MALMROSE AND KEMP STATE PASS EXIM BANK FOR KUESTER, IVANOVA, MORIN AND FIRESTONE USAID FOR SALEM-MURDOCK AND MARBURG-GOODMAN COMMERCE FOR BEADLE AND LENZ TREASURY FOR MACLAUGHLIN, TVARDEK, DRYSDALE AND EPSTEIN E.O. 12598: N/A TAGS: EFIN ETRD EAIR EAID BR OECD SUBJECT: OECD: Participants Begin Formal Review of the Civil Aircraft Sector Understanding ¶1. On 22-23 February 2005, the OECD Participants to the Arrangement on Officially Supported Export Credits and officials from Brazil met to start a formal review of the terms and conditions for officially supported export credits for civil aircraft. These terms and conditions are set out in the Sector Understanding on Export Credits for Civil Aircraft, which is annexed to the Arrangement on Officially Supported Export Credits. The participants to the review, who met under the auspices of the Organization for Economic Cooperation and Development at OECD's Paris headquarters, are Australia, Brazil, Canada, the European Community, Japan, Korea, New Zealand, Norway, Switzerland and the United States. The participants will meet again in the week of 18 April 2005 to make additional progress in the review. ¶2. Ahead of their meeting, the participants to the review consulted with the Aviation Working Group (AWG), which is composed of the major airframe and engine manufacturers from Brazil, Canada, Europe and the United States, as well as the world's major aircraft leasing companies and financiers. -------------- OECD Tied Aid Consultations Group Meets -------------- ¶3. The OECD Participants tied aid consultations group met on 18 February 2005 in Paris to discuss revision of the Ex Ante Guidance For Tied Aid, which is derived from the body of experience developed through the evaluation of individual project notifications for tied aid since February 1992. The purpose of the Ex Ante Guidance is to help project managers to anticipate, at an early stage, whether a given project is likely to pass the two Helsinki Package key tests on commercial viability. ¶4. The Participants discussed amendments to the Ex Ante Guidance based on experience gained since 1996, when the Ex Ante Guidance was first issued. All Participants but Japan agreed to the amendments. Japan, lacking a mandate to agree, indicated that it would indicate its formal position within one month. -------------- OECD Premium Experts Meet -------------- ¶5. The OECD Experts on Premium and Related Conditions met on 14-15 February 2005 to discuss technical premium issues arising under the 1997 Knaepen Package. The experts discussed minimum premium rates for tied aid transactions, the Premium Feedback Tools, and Buyer Risk Pricing Transparency. The Premium Group will next meet in September 2005. MORELLA