ANNEX 4a AGREEMENT ON TRADE IN CIVIL AIRCRAF.docx
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ANNEX 4a AGREEMENT ON TRADE IN CIVIL AIRCRAF.docx
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ANNEX4aAGREEMENTONTRADEINCIVILAIRCRAF
AGREEMENTONTRADEINCIVILAIRCRAFT
PREAMBLE
Signatories1totheAgreementonTradeinCivilAircraft,hereinafterreferredtoas"thisAgreement";
NotingthatMinisterson12-14September1973agreedtheTokyoRoundofMultilateralTradeNegotiationsshouldachievetheexpansionandever-greaterliberalizationofworldtradethrough,interalia,theprogressivedismantlingofobstaclestotradeandtheimprovementoftheinternationalframeworkfortheconductofworldtrade;
Desiringtoachievemaximumfreedomofworldtradeincivilaircraft,partsandrelatedequipment,includingeliminationofduties,andtothefullestextentpossible,thereductionoreliminationoftraderestrictingordistortingeffects;
Desiringtoencouragethecontinuedtechnologicaldevelopmentoftheaeronauticalindustryonaworld-widebasis;
Desiringtoprovidefairandequalcompetitiveopportunitiesfortheircivilaircraftactivitiesandfortheirproducerstoparticipateintheexpansionoftheworldcivilaircraftmarket;
Beingmindfuloftheimportanceinthecivilaircraftsectoroftheiroverallmutualeconomicandtradeinterests;
RecognizingthatmanySignatoriesviewtheaircraftsectorasaparticularlyimportantcomponentofeconomicandindustrialpolicy;
Seekingtoeliminateadverseeffectsontradeincivilaircraftresultingfromgovernmentalsupportincivilaircraftdevelopment,production,andmarketingwhilerecognizingthatsuchgovernmentalsupport,ofitself,wouldnotbedeemedadistortionoftrade;
Desiringthattheircivilaircraftactivitiesoperateonacommerciallycompetitivebasis,andrecognizingthatgovernment-industryrelationshipsdifferwidelyamongthem;
RecognizingtheirobligationsandrightsundertheGeneralAgreementonTariffsandTrade,hereinafterreferredtoas"theGATT",andunderothermultilateralagreementsnegotiatedundertheauspicesoftheGATT;
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1Theterm"Signatories"ishereinafterusedtomeanPartiestothisAgreement.
Recognizingtheneedtoprovideforinternationalnotification,consultation,surveillanceanddisputesettlementprocedureswithaviewtoensuringafair,promptandeffectiveenforcementoftheprovisionsofthisAgreementandtomaintainthebalanceofrightsandobligationsamongthem;
Desiringtoestablishaninternationalframeworkgoverningconductoftradeincivilaircraft;
Herebyagreeasfollows:
Article1
ProductCoverage
1.1ThisAgreementappliestothefollowingproducts:
(a)allcivilaircraft,
(b)allcivilaircraftenginesandtheirpartsandcomponents,
(c)allotherparts,components,andsub-assembliesofcivilaircraft,
(d)allgroundflightsimulatorsandtheirpartsandcomponents,
whetherusedasoriginalorreplacementequipmentinthemanufacture,repair,maintenance,rebuilding,modificationorconversionofcivilaircraft.
1.2ForthepurposesofthisAgreement"civilaircraft"means(a)allaircraftotherthanmilitaryaircraftand(b)allotherproductssetoutinArticle1.1above.
Article2
CustomsDutiesandOtherCharges
2.1Signatoriesagree:
2.1.1toeliminateby1January1980,orbythedateofentryintoforceofthisAgreement,allcustomsdutiesandothercharges1ofanykindleviedon,orinconnectionwith,theimportationofproducts,classifiedforcustomspurposesundertheirrespectivetariffheadingslistedintheAnnex,ifsuchproductsareforuseinacivilaircraftandincorporationtherein,inthecourseofitsmanufacture,repair,maintenance,rebuilding,modificationorconversion;
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1"Othercharges"shallhavethesamemeaningasinArticleIIoftheGATT.
2.1.2toeliminateby1January1980,orbythedateofentryintoforceofthisAgreement,allcustomsdutiesandothercharges1ofanykindleviedonrepairsoncivilaircraft;
2.1.3toincorporateintheirrespectiveGATTSchedulesby1January1980,orbythedateofentryintoforceofthisAgreement,duty-freeorduty-exempttreatmentforallproductscoveredbyArticle2.1.1aboveandforallrepairscoveredbyArticle2.1.2above.
2.2EachSignatoryshall:
(a)adoptoradaptanend-usesystemofcustomsadministrationtogiveeffecttoitsobligationsunderArticle2.1above;(b)ensurethatitsend-usesystemprovidesduty-freeorduty-exempttreatmentthatiscomparabletothetreatmentprovidedbyotherSignatoriesandisnotanimpedimenttotrade;and(c) informotherSignatoriesofitsproceduresforadministeringtheend-usesystem.
Article3
TechnicalBarrierstoTrade
3.1SignatoriesnotethattheprovisionsoftheAgreementonTechnicalBarrierstoTradeapplytotradeincivilaircraft.Inaddition,Signatoriesagreethatcivilaircraftcertificationrequirementsandspecificationsonoperatingandmaintenanceproceduresshallbegoverned,asbetweenSignatories,bytheProvisionsoftheAgreementonTechnicalBarrierstoTrade.
Article4
Government-DirectedProcurement,MandatorySub-Contracts
andInducements
4.1Purchasersofcivilaircraftshouldbefreetoselectsuppliersonthebasisofcommercialandtechnologicalfactors.
4.2Signatoriesshallnotrequireairlines,aircraftmanufacturers,orotherentitiesengagedinthepurchaseofcivilaircraft,norexertunreasonablepressureonthem,toprocurecivilaircraftfromanyparticularsource,whichwouldcreatediscriminationagainstsuppliersfromanySignatory.
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1"Othercharges"shallhavethesamemeaningasinArticleIIoftheGATT.
4.3SignatoriesagreethatthepurchaseofproductscoveredbythisAgreementshouldbemadeonlyonacompetitiveprice,qualityanddeliverybasis.InconjunctionwiththeapprovalorawardingofprocurementcontractsforproductscoveredbythisAgreementaSignatorymay,however,requirethatitsqualifiedfirmsbeprovidedwithaccesstobusinessopportunitiesonacompetitivebasisandontermsnolessfavourablethanthoseavailabletothequalifiedfirmsofotherSignatories.1
4.4SignatoriesagreetoavoidattachinginducementsofanykindtothesaleorpurchaseofcivilaircraftfromanyparticularsourcewhichwouldcreatediscriminationagainstsuppliersfromanySignatory.
Article5
TradeRestrictions
5.1Signatoriesshallnotapplyquantitativerestrictions(importquotas)orimportlicensingrequirementstorestrictimportsofcivilaircraftinamannerinconsistentwithapplicableprovisionsoftheGATT.ThisdoesnotprecludeimportmonitoringorlicensingsystemsconsistentwiththeGATT.
5.2Signatoriesshallnotapplyquantitativerestrictionsorexportlicensingorothersimilarrequirementstorestrict,forcommercialorcompetitivereasons,exportsofcivilaircrafttootherSignatoriesinamannerinconsistentwithapplicableprovisionsoftheGATT.
Article6
GovernmentSupport,ExportCredits,andAircraftMarketing
6.1SignatoriesnotethattheprovisionsoftheAgreementonInterpretationandApplicationofArticlesVI,XVIandXXIIIoftheGeneralAgreementonTariffsandTrade(AgreementonSubsidiesandCountervailingMeasures)applytotradeincivilaircraft.Theyaffirmthatintheirparticipationin,orsupportof,civilaircraft
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1Useofthephrase"accesstobusinessopportunities...ontermsnolessfavourable..."doesnotmeanthattheamountofcontractsawardedtothequalifiedfirmsofoneSignatoryentitlesthequalifiedfirmsofotherSignatoriestocontractsofasimilaramount.
programmestheyshallseektoavoidadverseeffectsontradeincivilaircraftinthesenseofArticles8.3and8.4oftheAgreementonSubsidiesandCountervailingMeasures.Theyalsoshalltakeintoaccountthespecialfactorswhichapplyintheaircraftsector,inparticularthewidespreadgovernmentalsupportinthisarea,theirinternationaleconomicinterests,andthedesireofproducersofallSignatoriestoparticipateintheexpansionoftheworldcivilaircraftmarket.
6.2Signatoriesagreethatpricingofcivilaircraftshouldbebasedonareasonableexpectationofrecoupmentofallcosts,includingnon-recurringprogrammecosts,identifiableandpro-ratedcostsofmilitaryresearchanddevelopmentonaircraft,components,andsystemsthataresubsequentlyappliedtotheproductionofsuchcivilaircraft,averageproductioncosts,andfinancialcosts.
Article7
RegionalandLocalGovernments
7.1InadditiontotheirotherobligationsunderthisAgreement,Signatoriesagreenottorequireorencourage,directlyorindirectly,regionalandlocalgovernmentsandauthorities,non-governmentalbodies,andotherbodiestotakeactioninconsistentwithprovisionsofthisAgreement.
Article8
Surveillance,Review,Consultation,andDisputeSettlement
8.1ThereshallbeestablishedaCommitteeonTradeinCivilAircraft(hereinafterreferredtoas"theCommittee")composedofrepresentativesofallSignatories.TheCommitteeshallelectitsownChairman.Itshallmeetasnecessary,butnotlessthanonceayear,forthepurposeofaffordingSignatoriestheopportunitytoconsultonanymattersrelatingtotheoperationofthisAgreement,includingdevelopmentsinthecivilaircraftindustry,todeterminewhetheramendmentsarerequiredtoensurecontinuanceoffreeandundistortedtrade,toexamineanymatterforwhichithasnotbeenpossibletofindasatisfactorysolutionthroughbilateralconsultations,andtocarryoutsuchresponsibilitiesasareassignedtoitunderthisAgreement,orbytheSignatories.
8.2TheCommitteeshallreviewannuallytheimplementationandoperationofthisAgreementtakingintoaccounttheobjectivesthereof.TheCommitteeshallannually
informtheCONTRACTINGPARTIEStotheGATTofdevelopmentsduringtheperiodcovered
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