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SUMMARY 11 It should be noted that in each of these areas, as well as in subsequent ones in which the panel will advocate strengthening the U.S. posture, the changes will redound to the benefit of many industriesânot just aircraft manufacture. The panel endorses the recent action in the U.S. Department of Commerce to provide focused attention on the aircraft manufacturing industry as well as in other sectors that are significant in foreign trade and to strengthen administrative support for monitoring trading behavior and encouraging compliance with agreements. The panel recommends that the importance of this activity receive sufficiently broad political endorsement to transcend changes in administration. The panel recommends continuing vigorous efforts by the United States government to bring into the Agreement on Trade in Civil Aircraft those nonsignatory nations currently or prospectively exporting to the United States. The panel also recommends more vigorous data collection, monitoring, assessment, and enforcement of the GATT agreement by government personnel for all segments of the aircraft industry, not just large commercial transports. The panel endorses and recommends continued efforts to eliminate all forms of trade-distorting mechanisms so that normal market forces can operate effectively in all international transactions. The panel recommends that evaluation of tax policy continue to give appropriate weight to maintaining the international competitiveness of U.S. industry. Export Credit Financing Agreements on financing have proved somewhat elusive because of the resolve of foreign governments to establish a viable presence in aircraft manufacture. A "standstill" agreement in 1975 set a maximum of 10 years for repaymentâa period much shorter than the life of the aircraft, and one that denied the United States the advantage of its strong long-term capital market, but set no minimum interest. A subsequent "commonline" agreement established a minimum interest rate for large transport aircraft. The Export-Import Bank (Eximbank) currently employs terms and conditions similar to those of other lenders for large aircraft, with one important exception: it imposes a 2 percent application fee that enlarges the "up front" payment. In the case of developing countriesâa market of growing importance âEximbank employs more rigorous criteria to evaluate "a reasonable assurance of repayment" than many foreign competitors face with
