The OECD is looking to forge new terms relating to how governments will finance and provide export credits for the trade of commercial aircraft.

If the new rules, known as Aviation Sector Understanding, are agreed, the OECD is hoping to unify the differences in financing terms and conditions between large and regional jets.

Mechanisms to smooth very sharp market movements are also potential additions to the terms.

There will be no quantitative restrictions on export credit agency programmes, but the OECD stops short on suggesting that qualitative approaches will not be changed, meaning that there could be an alteration in the fundamental way in which ECAs back aircraft deals.

“The objective of the agreement is to create and maintain a market and risk-based fee system that produces a level playing field between manufacturers, airlines and governments,” the OECD says in a statement.
The negotiations need the approval of Canada, the US, Japan, the EU and non-OECD member Brazil.

Deadline for formal approval is January 20, with the new regulations due to be in force on February 1, 2011.

“The OECD has been at the centre of multilateral efforts to harmonise state financing of exports for more than 30 years. It helps ensure that both OECD and non-OECD exporters compete on the price and quality of their goods and services, not on the support they receive from their governments,” the OECD notes.