ANNEX 4a AGREEMENT ON TRADE IN CIVIL AIRCRAF.docx

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