1 PREAMBLE Signatories1 to the Agreement on Trade in Civil Aircraft, herei-nafter referred to as "this Agreement"; Noting that Ministers on 12-14 September 1973 agreed the TokyoRound of Multilateral Trade Negotiations should achieve the exp-ansion and ever-greater liberalization of world trade through,inter alia, the progressive dis-mantling of obstacles to tradeand the improvement of the international framework for the cond-uct of world trade; Desiring to achieve maximum freedom of world trade in civil air-craft, parts and related equipment, including elimination of du-ties, and to the fullest extent possible, the reduction or elim-ination of trade restricting or distorting effects; Desiring to encourage the continued technological development ofthe aeronautical industry on a world-wide basis; Desiring to provide fair and equal competitive opportunities fortheir civil aircraft activities and for their producers to part-icipate in the expansion of the world civil aircraft market;Being mindful of the importance in the civil aircraft sector oftheir overall mutual economic and trade interests; Recognizing that many signatories view the aircraft sector as aparticularly important component of economic and industrial pol-icy; Seeking to eliminate adverse effects on trade in civil aircraftresulting from governmental support in civil aircraft developme-nt, production, and marketing while recognizing that such gover-nmental support, of itself, would not be deemed a distortion oftrade; Desiring that their civil aircraft activities operate on a comm-ercially competitive basis, and recognizing that government-ind-ustry relationships differ widely among them; Recognizing their obligations and rights under the General Agre-ement on Tariffs and Trade, hereinafter referred to as "the GATT", and under other multilateral agreements negotiated under theauspices of the GATT; Recognizing the need to provide for international notification,consul-tation, surveillance and dispute settlement procedures w-ith a view to ensuring a fair, prompt and effective enforcementof the provisions of this Agreement and to maintain the balanceof rights and obligations among them; Desiring to establish an international framework governing cond-uct of trade in civil aircraft; Hereby agree as follows: Article 1 Product Coverage 1.1 This Agreement applies to the following products: (a) all civil aircraft, (b) all civil aircraft engines and their parts and their pa-rts and components, (c) all other parts, components, and sub-assemblies of civilaircraft, (d) all ground flight simulators and their parts and compon-ents, whether used as original or replacement equipment in the ma-nufacture, repair, maintenance, rebuilding, modification orconversion of civil aircraft. 1.2 For the purposes of this Agreement "civil aircraft" means (a) all aircraft other than military aircraft and (b) all oth-er products set out in Article 1.1 above. Article 2 Customs Duties and Other Charges 2.1 Signatories agree: 2.1.1 to eliminate by 1 January 1980, or by the date of entry i-nto force of this Agreement, all customs duties and other charges1 of any kind levied on, or in connexion with, the importation of products, classified for customs purposes under their respective tariff headings listed in the Annex, if such products are for use in a civil aircraft and in-corporation therein, in the course of its manufacture, re-pair, maintenance, rebuilding, modification or conversion;2.1.2 to eliminate by 1 January 1980, or by the date of entry i-nto force of this Agreement, all customs duties and other charges1 of any kind levied on repairs on civil aircraft; 2.1.3 to incorporate in their respective GATT Schedules by 1 Ja-nuary 1980, or by the date of entry into force of this Ag-reement, duty-free or duty-exempt treatment for all produ-cts covered by Article 2.1.1 above and for all repairs co-vered by Article 2.1.2 above. 2.2 Each Signatory shall: (a) adopt or adapt an end-use systemof customs administration to give effect to its obligationsunder Article 2.1 above; (b) ensure that its end-use systemprovides duty-free or duty-exempt treat-ment that is compar-able to the treatment provided by other Signatories and isnot an impediment to trade; and (c) inform other Signatoriesof its procedures for administering the end-use system. Article 3 Technical Barriers to Trade 3.1 Signatories note that the provisions of the Agreement on Te-chnical Barriers to Trade apply to trade in civil aircraft.In addition, Signatories agree that civil aircraft certific-ation requirements and specifications on operating and main-tenance procedures shall be governed, as between Signatories, by the provisions of the Agreement on Technical Barriersto Trade. Article 4 Government-Directed Procurement, Mandatory Sub-Contracts and In-ducements 4.1 Purchasers of civil aircraft should be free to select suppl-iers on the basis of commercial and technological factors.4.2 Signatories shall not require airlines, aircraft manufactur-ers, or other entities engaged in the purchase of civil air-craft, nor exert unreasonable pressure on them, to procurecivil aircraft from any particular source, which would crea-te discrimination against suppliers from any particular sou-rce, which would create discrimination against suppliers fr-om any Signatory. 4.3 Signatories agree that the purchase of products covered bythis Agreement should be made only on a competitive price,quality and delivery basis. In conjunction with the approvalor awarding of procurement contracts for products covered bythis Agreement a Signatory may, however, require that its q-ualified firms be provided with access to business opportun-ities on a competitive basis and on terms no less favourablethan those available to the qualified firms of other Signat-ories.1 4.4 Signatories agree to avoid attaching inducements of any kindto the sale or purchase of civil aircraft from any particul-ar source which would create discrimination against supplie-rs from any Signatory. Article 5 Trade Restrictions 5.1 Signatories shall not apply quantitative restrictions (impo-rt quotas) or import licensing requirements to restrict imp-orts of civil aircraft in a manner inconsistent with applic-able provisions of the GATT. This does not preclude importmonitoring or licensing systems consistent with the GATT. 5.2 Signatories shall not apply quantitative restrictions or ex-port licensing or other similar requirements to restrict, f-or commercial or competitive reasons, exports of civil airc-raft to other Signatories in a manner inconsistent with app-licable provisions of the GATT. Article 6 Government Support, Export Credits, and Aircraft Marketing6.1 Signatories note that the provisions of the Agreement on In-terpretation and Application of Articles VI, XVI and XXIIIof the General Agreement on Tariffs and Trade (Agreement onsubsidies and Countervailing Measures) apply to trade in ci-vil aircraft. They affirm that in their participation in, orsupport of, civil aircraft programmes they shall seek to av-oid adverse effects on trade in civil aircraft in the senseof Articles 8.3 and 8.4 of the Agreement on Subsidies and C-ountervailing Measures. They also shall take into account t-he special factors which apply in the aircraft sector, in p-articular the widespread governmental support in this area,their international economic interests, and the desire of p-roducers of all Signatories to participate in the expansionof the world civil aircraft market. 6.2 Signatories agree that pricing of civil aircraft should bebased on a reasonable expectation of recoupment of all costs, including non-recurring programme costs, identifiable andpro-rated costs of military research and development on air-craft, components, and systems that are subsequently appliedto the production of such civil aircraft, average productioncosts, and financial costs. Article 7 Regional and Local Governments 7.1 In addition to their other obligation under this Agreement,Signatories agree not to require or encourage, directly orindirectly, regional and local governments and authorities,non-governmental bodies, and other bodies to take action in-consistent with provisions of this Agreement. Article 8 Surveillance, Review, Consultation, and Dispute Settlement8.1 There shall be established a Committee on Trade in Civil Ai-rcraft (hereinafter referred to as "the Committee") composedof representatives of all Signatories. The Committee shallelect its own Chairman. It shall meet as necessary, but notless than once a year, for the purpose of affording Signato-ries the opportunity to consult on any matters relating tothe operation of this Agreement, including developments inthe civil aircraft industry, to determine whether amendmentsare required to ensure continuance of free and undistortedtrade, to examine any matter for which it has not been poss-ible to find a satisfactory solution through bilateral cons-ultations, and to carry out such responsibilities as are as-signed to it under this Agreement, or by the signatories. 8.2 The Committee shall review annually the implementation andoperation of this Agreement taking into account the objecti-ves thereof. The Committee shall annually inform the Contra-cting Parties to the GATT of developments during the periodcovered by such review. 8.3 Not later than the end of the third year from the entry intoforce of this Agreement and periodically thereafter, Signat-ories shall undertake further negotiations, with a view tobroadening and improving this Agreement on the basis of mut-ual reciprocity. 8.4 The Committee may establish such subsidiary bodies as may beappropriate to keep under regular review the application ofthis Agreement to ensure a continuing balance of mutual adv-antages. In particular, it shall establish an appropriate s-ubsidiary body in order to ensure a continuing balance of m-utual advantages, reciprocity and equivalent results with r-egard to the implementation of the provisions of Article 2above related to product coverage, the end-use systems, cus-toms duties and other charges. 8.5 Each Signatory shall afford sympathetic consideration to andadequate opportunity for prompt consultation regarding repr-esentations made by another Signatory with respect to any m-atter affecting the operation of this Agreement. 8.6 Signatories recognize the desirability of consultations withother Signatories in the Committee in order to seek a mutua-lly acceptable solution prior to the initiation of an inves-tigation to determine the existence, degree and effect of a-ny alleged subsidy. In those exceptional circumstances in w-hich no consultations occur before such domestic proceduresare initiated, Signatories shall notify the Committee immed-iately of initiation of such procedures and enter into simu-ltaneous consultations to seek a mutually agreed solution t-hat would obviate the need for countervailing measures. 8.7 Should a Signatory consider that its trade interests in civ-il aircraft manufacture, repair, maintenance, rebuilding, m-odification or conversion have been or are likely to be adv-ersely affected by any action by another Signatory, it mayrequest review of the matter by the Committee. Upon such arequest, the Committee shall convene within thirty days andshall review the matter as quickly as possible with a viewto resolving the issues involved as promptly as possible andin particular prior to final resolution of these issues els-ewhere. In this connection the Committee may issue such rul-ings or recommendations as may be appropriate. Such reviewshall be without prejudice to the rights of Signatories und-er the GATT or under instruments multilaterally negotiatedunder the auspices of the GATT, as they affect trade in civ-il aircraft. For the purposes of aiding consideration of theissues involved, under the GATT and such instruments, the C-ommittee may provide such technical assistance as may be ap-propriate. 8.8 Signatories agree that, with respect to any dispute relatedto a matter covered by this Agreement, but not covered by o-ther instruments multilaterally negotiated under the auspic-es of the GATT, the provisions of Articles XXII and XXIII ofthe General Agreement and the provisions of the Understandi-ng related to Notification, Consultation, Dispute Settlementand Surveillance shall be applied, mutatis mutandis, by thesignatories and the Committee for the purposes of seeking s-ettlement of such dispute. These procedures shall also be a-pplied for the settlement of any by another instrument mult-ilaterally negotiated under the auspices of the GATT, shouldthe parties to the dispute so agree. Article 9 Final Provisions 9.1 Acceptance and Accession 9.1.1 This Agreement shall be open for acceptance by signatureor otherwise by governments contracting parties to the GA-TT and by the European Economic Community. 9.1.2 This Agreement shall be open for acceptance by signatureor otherwise by governments having provisionally acceded to the GATT, on terms related to the effective applicationof rights and obligations under this Agreement, which takeinto account rights and obligations in the instruments pr-oviding for their provisional accession. 9.1.3 This Agreement shall be open to accession by any other go-vernment on terms, related to the effective application ofrights and obligations under this Agreement ,to be agreed between that government and the Signatories, by the depos-it with the Director-General to the Contracting Parties tothe GATT of an instrument of accession which states the t-erms so agreed. 9.1.4 In regard to acceptance, the provisions of Article XXVI: 5(a) and (b) of the General Agreement would be applicable. 9.2 Reservations .2.1 Reservations may not be entered in respect of any of the p-rovisions of this Agreement without the consent of the oth-er signatories. 9.3 Entry into Force 9.3.1 This Agreement shall enter into force on 1 January 1980 f-or the governments1 which have accepted or acceded to it by that date. 9.3.2 For each other government it shall enter into force on thethirtieth day following the date of its acceptance or acc-ession to this Agreement. 9.4 National Legislation 9.4.1 Each government accepting or acceding to this Agreement s-hall ensure, not later than the date of entry into force of this Agreement for it, the conformity of its laws, reg-ulations and Administrative procedures with the provisionsof this Agreement. 9.4.2 Each Signatory shall inform the Committee of any changesin its laws and regulations relevant to this Agreement andin the administration of such laws and regulations. 9.5 Amendments 9.5.1 The Signatories may amend this Agreement, having regard,inter alia, to the experience gained in its implementation. Such an amendment, once the Signatories have concurred in accordance with the procedures established by the Comm-ittee, shall not come into force for any Signatory until it has been accepted by such signatory. 9.6 Withdrawal 9.6.1 Any Signatory may withdraw from this Agreement. The Withd-rawal shall take effect upon the expiration of twelve mon-ths from the day on which written notice of withdrawal is received by the Director-General to the Contracting Parti-es to the GATT. Any Signatory may upon such notification request an immediate meeting of the Committee. 9.7 Non-Application of this Agreement Between Particular Signat-ories 9.7.1 This Agreement shall not apply as between any two Signato-ries if either of the Signatories, at the time either acc-epts or accedes to this Agreement, does not consent to su-ch application. 9.8 Annex 9.8.1 The Annex to this Agreement forms an integral part thereof. 9.9 Secretariat 9.9.1 This Agreement shall be serviced by serviced by the GATTsecretariat. 9.10 Deposit 9.10.1 This Agreement shall be deposited with the Director-Gene-ral to the Contracting Parties to the GATT who shall pro- mptly furnish to each Signatory and each contacting party to "the GATT a certified copy thereof and of each amendm- ent thereto pursuant to Article 9.5 and a notification of each acceptance thereof or accession thereto pursuant to Article 9.1, or each withdrawal therefrom pursuant to Ar- ticle 9.6. 9.11 Registration 9.11.1 This Agreement shall be registered in accordance with theprovisions of Article 102 of the Charter of the United N- ations. Done at Geneva this twelfth day of April nineteen hundred and seventy-nine in a single copy, in the English and Fr- ench languages, each text being authentic, except as oth- erwise specified with respect to the various lists in the Annex.1 Annex PRODUCT COVERAGE Signatories agree that products classified for customs purposesunder their respective tariff headings listed below2 shall be a-ccorded duty-free or duty-exempt treatment, if such products arefor use in a civil aircraft and incorporation therein, in the c-ourse of its manufacture, repair, maintenance, rebuilding, modi-fication or conversion. These products shall not include: - an incomplete or unfinished product, unless it has the essent-ial characteristics of a complete or finished civil aircraftpart, component, subassembly or item of equipment.3 - materials in any form (e.g., sheets, plates, profile shapes,strips, bars, pipes, tubes, or other shapes) unless they have been cut to size or shape or shaped for incorporation in civilaircraft.3 - raw materials and consumable goods.
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