This agreement was signed by the Indian Minister of Overseas Indian Affairs and Civil Aviation, Vayalar Ravi and the visiting Minister of Foreign Affairs of Brazil, Antonio de Aguiar Patriota.

Bilateral trade between the two countries has peaked to $7.73 billion in 2010 and the target of $10 billion is likely to be achieved in the next few years.

The new bilateral air services agreement has the potential to spur greater trade investment, tourism and strengthening the cultural exchange between the two countries besides bringing it in tune with the developments in the international civil aviation scenario.

The agreement is based on the liberal ICAO template and paves the way for increased air connectivity between both countries. It supersedes the agreement signed between the two countries on September 12, 2006 in Rio De Janeiro, Brazil.

Patriota is here to attend the 7th Trilateral Commission Meeting of India-Brazil-South Africa (IBSA) Dialogue Forum.

Patriota also met the Indian Minister of Commerce and Industry, Anand Sharma and both of them agreed for setting up of Joint CEOs’ Forum and identified the priority sectors namely energy, oil, tourism, pharma, value-added manufacturing, mining, agro-processing for investment and trade.

Sharma also highlighted about the vast potential for cooperation between the two countries viz., SMEs, IT, science & technology, engineering, energy, infrastructure, nuclear power.

In the bilateral meeting, Sharma raised the issue of imposition of anti-dumping duties on Indian products such as Polyethylene Terephthalate (PET) films, jute yarn, jute bags nitrile rubber (NBR) and stainless steel. He further informed that at present no antidumping duty has been imposed by India on import of any items from Brazil. During the discussions, he also raised the issue of flexibility in business visas.

Sharma also mentioned that there is a proposal for organizing “India Show” in Sao Paulo in March, 2011. The proposed occasion will serve an ideal platform for a number of Indian and Latin American entrepreneurs and companies to explore and discuss business opportunities and tie- ups in trade and investment, he added.

India's main exports to Brazil are equipments related to wind energy, coke of coal, lignite, naphtha, cotton and polyester yarns, medicines & chemicals, vaccines for human medicines and aviation fuel. India's main imports from Brazil are crude oil, copper sulphates, soya oil, asbestos, valves, motor pumps, airplanes, wheat, precious & semi-precious stones, etc. Total foreign direct investment (FDI) inflows received from Brazil during April 2000 to December 2010 is to the tune of $4.55 million. Main sectors of investment from Brazil are plastic products, manufacture of leather products, allopathic pharmaceutical preparations, data processing, software development and computer consultancy services.

As per the new air services agreement both the countries will be entitled to designate any number of airlines. The designated airlines of each side are entitled to operate any point in each other’s territory, via any intermediate point and beyond to any point.

The designated airlines of each side are entitled to operate 21 services per week in each direction with any type of aircraft not exceeding the capacity of B-747 aircraft.

At present, designated airlines of neither side is operating. There is open sky for all cargo operations exists between the two sides.

Both the countries will follow the obligations, in accordance with their rights and obligations under International law, to protect the security of civil aviation against acts of unlawful interference. Upon request, both countries shall provide each other with all necessary assistance to prevent acts of unlawful seizure of aircraft and other unlawful acts against the safety of such aircraft, their passenger and crew.

The designated airlines of either country shall have the right to establish offices in the territory of the other country for the promotion and sale of air services.

Either country, on the basis of reciprocity, shall exempt a designated airline of the other country, to the fullest extent possible under its national law from customs duties, excise taxes, inspection fees and other national duties and charges on specific items (aircraft, fuel, lubricating oil, spare parts of aircraft/engine etc.) introduced into the territory of the other country, retained or taken on board by the designated airline of one Party and which are intended for use in operating the agreed services.

The capacity to be provided and the frequency of services to be operated by the designated airlines of each party shall be agreed between both parties.

Neither party shall impose or permit to impose on the designated airline of the other party user charges higher than those imposed on all airlines operating and its own airlines operating similar international services.

The designated airline will be free to decide tariffs in respect of the agreed services at reasonable levels based on the commercial considerations. The designated airlines of both parties shall not be required to agree on the fares to be applied.

The designated airlines of each Party may enter into co-operative marketing arrangements, such as code share, block space or any other joint venture agreement, with the designated airlines of the same party, the designated airlines of the other party, the designated airlines of a third country.