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I. Preamble back to top
A. Text of the Preamble
Signatories (1) to the Agreement on Trade in
Civil Aircraft, hereinafter referred to as “this Agreement”;
(footnote original) 1 The term “Signatories”
is hereinafter used to mean Parties to this Agreement.
Noting that Ministers on 12-14 September 1973
agreed the Tokyo Round of Multilateral Trade Negotiations should achieve
the expansion and ever-greater liberalization of world trade through,
inter alia, the progressive dismantling of obstacles to trade and the
improvement of the international framework for the conduct of world
trade;
Desiring to achieve maximum freedom of world
trade in civil aircraft, parts and related equipment, including
elimination of duties, and to the fullest extent possible, the reduction
or elimination of trade restricting or distorting effects;
Desiring to encourage the continued
technological development of the aeronautical industry on a world-wide
basis;
Desiring to provide fair and equal competitive
opportunities for their civil aircraft activities and for their
producers to participate in the expansion of the world civil aircraft
market;
Being mindful of the importance in the civil
aircraft sector of their overall mutual economic and trade interests;
Recognizing that many Signatories view the
aircraft sector as a particularly important component of economic and
industrial policy;
Seeking to eliminate adverse effects on trade
in civil aircraft resulting from governmental support in civil aircraft
development, production, and marketing while recognizing that such
governmental support, of itself, would not be deemed a distortion of
trade;
Desiring that their civil aircraft activities
operate on a commercially competitive basis, and recognizing that
government-industry relationships differ widely among them;
Recognizing their obligations and rights under
the General Agreement on Tariffs and Trade, hereinafter referred to as
“the GATT”, and under other multilateral agreements negotiated under
the auspices of the GATT;
Recognizing the need to provide for
international notification, consultation, surveillance and dispute
settlement procedures with a view to ensuring a fair, prompt and
effective enforcement of the provisions of this Agreement and to
maintain the balance of rights and obligations among them;
Desiring to establish an international
framework governing conduct of trade in civil aircraft;
Hereby agree as follows:
B. Interpretation and Application of the
Preamble
1. General
(a) Origins
1. The Aircraft Agreement was concluded on
12 April 1979 at the end of the Tokyo Round. It entered into force on 1
January 1980.(1) Signatories adopted on
8 March 1983 an “Agreed
interpretation of Article 2.1.2 of the Agreement on Trade in Civil
Aircraft” and “Common guidelines for binding of duties on repairs,
to be inserted as a headnote in Signatories’ respective GATT schedules”.(2)
During the Uruguay Round, the negotiators tried unsuccessfully to
elaborate a new Aircraft Agreement. At the end of the negotiations, the
1979 Aircraft Agreement was annexed, unchanged, to the WTO
Agreement.
(b) Status under the WTO
2. As of 31 December 2004, there were 30
Signatories to the Agreement: Bulgaria, Canada, the European
Communities, Austria, Belgium, Chinese Taipei, Denmark, France, Germany,
Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain,
Sweden, the United Kingdom, Egypt, Estonia, Georgia, Japan, Latvia,
Lithuania, Macau, Malta, Norway, Romania, Switzerland and the United
States. Those WTO Members with observer status in the Committee are:
Argentina, Australia, Bangladesh, Brazil, Cameroon, China, Colombia, the
Czech Republic, Finland, Gabon, Ghana, India, Indonesia, Israel, Korea,
Mauritius, Nigeria, Oman, Poland, Singapore, Slovakia, Sri Lanka,
Trinidad and Tobago, Tunisia and Turkey. In addition, the Russian
Federation and Saudi Arabia are also observers. The IMF and UNCTAD are
also observers.(3)
II. Article 1 back to top
A. Text of Article 1
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 components,
(c) all other parts, components, and
sub-assemblies of civil aircraft,
(d) all ground flight simulators and their
parts and components,
whether used as original or replacement
equipment in the manufacture, repair, maintenance, rebuilding,
modification or conversion of civil aircraft.(4)
1.2 For the purposes of this Agreement “civil
aircraft” means (a) all aircraft other than military aircraft and
(b)
all other products set out in Article 1.1 above.
B. Interpretation and Application of
Article 1
1. Article 1.1
3. The
Annex to the Aircraft Agreement on
Product Coverage, to which there were three certifications of
modifications and rectifications,(5) has been further amended by means of
a Protocol in 1986.(6) At the
21 November 2001 meeting, the Chairman gave
an updated report confirming the adoption by the Committee of the
Protocol (2001)(7) and decision on interim application of
duty-free
treatment to aircraft ground maintenance simulators,(8) with effect from 6
June 2001. In view of the fact that the Protocol (2001) had not yet been
accepted by all Signatories, and that the terms of the Protocol give
authority to the Committee to decide on the date for acceptance,
Signatories adopted a decision to extend the date of acceptance of the
Protocol (2001) indefinitely.(9), (10) At the 13 November 2002 meeting, the
Committee adopted ad referendum a decision on Procedures for the
Circulation and Derestriction of Documents,(11) aligning the procedures
concerning circulation and derestriction of Committee documents with
those applicable to other WTO documents.(12)
4. At the meeting of 30 November 1998, the
Aircraft Committee decided that the factual information regarding
civil/military identification for domestic customs purposes contained in
AIR/TSC/W/49 should be updated.(13)
5. At its meeting of 15 November 2000, the
Aircraft Committee adopted the following decision:
“The Committee decides to urge that
Signatories apply immediately, on an interim basis, duty-free treatment
to the goods of the proposed product coverage Annex outlined in WTO
document TCA/W/5/Rev.3, including aircraft ground maintenance
simulators. Signatories shall inform the Committee on steps they have
taken relating to such interim application.”(14)
III. Article 2
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A. Text of Article 2
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 into force of this Agreement, all customs duties and
other charges(1) of any kind levied on, or in connection 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 incorporation therein, in the course of its
manufacture, repair, maintenance, rebuilding, modification or
conversion;
(footnote original)
1 “Other charges”
shall have the same meaning as in Article II of the
GATT.
2.1.2 to eliminate by 1 January 1980, or by
the date of entry into force of this Agreement, all customs duties and
other charges(1) of any kind levied on repairs on civil aircraft;
(footnote original)
1 “Other charges”
shall have the same meaning as in Article II of the
GATT.
2.1.3 to incorporate in their respective GATT
Schedules by 1 January 1980, or by the date of entry into force of this
Agreement, duty-free or duty-exempt treatment for all products covered
by Article 2.1.1 above and for all repairs covered by
Article 2.1.2 above.
2.2 Each Signatory shall: (a) adopt or adapt
an end-use system of customs administration to give effect to its
obligations under Article 2.1 above; (b) ensure that its end-use system
provides duty-free or duty-exempt treatment that is comparable to the
treatment provided by other Signatories and is not an impediment to
trade; and (c) inform other Signatories of its procedures for
administering the end-use system.
B. Interpretation and Application of
Article 2
6. As mentioned in
paragraph 1 above, on 8 March 1983, the signatories adopted an “Agreed Interpretation of
Article 2.1.2 of the Agreement on Trade in Civil Aircraft”(15), which
states that the elimination of “all customs duties and other charges
of any kind levied on repairs on civil aircraft” applies only to
repairs of complete civil aircraft and those civil aircraft products
covered by the respective tariff headings listed in the Annex to the
Aircraft Agreement.
IV. Article 3
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A. Text of Article 3
Article 3: Technical Barriers to Trade
3.1 Signatories note that the provisions of
the Agreement on Technical Barriers to Trade apply to trade in civil
aircraft. In addition, Signatories agree that civil aircraft
certification requirements and specifications on operating and
maintenance procedures shall be governed, as between Signatories, by the
Provisions of the Agreement on Technical Barriers to Trade.
B. Interpretation and Application of
Article 3
No jurisprudence or decision of a competent
WTO body.
V. Article 4
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A. Text of Article 4
Article 4: Government-Directed Procurement, Mandatory
Sub-Contracts and Inducements
4.1 Purchasers of civil aircraft should be
free to select suppliers on the basis of commercial and technological
factors.
4.2 Signatories shall not require airlines,
aircraft manufacturers, or other entities engaged in the purchase of
civil aircraft, nor exert unreasonable pressure on them, to procure
civil aircraft from any particular source, which would create
discrimination against suppliers from any Signatory.
4.3 Signatories agree that the purchase of
products covered by this Agreement should be made only on a competitive
price, quality and delivery basis. In conjunction with the approval or
awarding of procurement contracts for products covered by this Agreement
a Signatory may, however, require that its qualified firms be provided
with access to business opportunities on a competitive basis and on
terms no less favourable than those available to the qualified firms of
other Signatories.(1)
(footnote original)
1 Use of the phrase “access
to business opportunities … on terms no less favourable …” does
not mean that the amount of contracts awarded to the qualified firms of
one Signatory entitles the qualified firms of other Signatories to
contracts of a similar amount.
4.4 Signatories agree to avoid
attaching
inducements of any kind to the sale or purchase of civil aircraft from
any particular source which would create discrimination against
suppliers from any Signatory.
B. Interpretation and Application of
Article 4
No jurisprudence or decision of a competent
WTO body.
VI. Article 5
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A. Text of Article 5
Article 5: Trade Restrictions
5.1 Signatories shall not apply quantitative
restrictions (import quotas) or import licensing requirements to
restrict imports of civil aircraft in a manner inconsistent with
applicable provisions of the GATT. This does not preclude import
monitoring or licensing systems consistent with the GATT.
5.2 Signatories shall not apply quantitative
restrictions or export licensing or other similar requirements to
restrict, for commercial or competitive reasons, exports of civil
aircraft to other Signatories in a manner inconsistent with applicable
provisions of the GATT.
B. Interpretation and Application of
Article 5
No jurisprudence or decision of a competent
WTO body.
VII. Article 6
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A. Text of Article 6
Article 6: Government Support, Export Credits, and
Aircraft Marketing
6.1 Signatories note that the provisions of
the Agreement on Interpretation and Application of Articles
VI, XVI and
XXIII of the General Agreement on Tariffs and Trade (Agreement on
Subsidies and Countervailing Measures) apply to trade in civil aircraft.
They affirm that in their participation in, or support of, civil
aircraft programmes they shall seek to avoid adverse effects on trade in
civil aircraft in the sense of Articles 8.3 and
8.4 of the Agreement on
Subsidies and Countervailing Measures. They also shall take into account
the special factors which apply in the aircraft sector, in particular
the widespread governmental support in this area, their international
economic interests, and the desire of producers of all Signatories to
participate in the expansion of the world civil aircraft market.
6.2 Signatories agree that pricing of civil
aircraft should be based on a reasonable expectation of recoupment of
all costs, including non-recurring programme costs, identifiable and
pro-rated costs of military research and development on aircraft,
components, and systems that are subsequently applied to the production
of such civil aircraft, average production costs, and financial costs.
B. Interpretation and Application of
Article 6
No jurisprudence or decision of a competent
WTO body.
VIII. Article 7
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A. Text of Article 7
Article 7: Regional and Local Governments
7.1 In addition to their other obligations
under this Agreement, Signatories agree not to require or encourage,
directly or indirectly, regional and local governments and authorities,
non-governmental bodies, and other bodies to take action inconsistent
with provisions of this Agreement.
B. Interpretation and Application of
Article 7
No jurisprudence or decision of a competent
WTO body.
IX. Article 8
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A. Text of Article 8
Article 8: Surveillance, Review, Consultation, and
Dispute Settlement
8.1 There shall be established a Committee on
Trade in Civil Aircraft (hereinafter referred to as “the Committee”)
composed of representatives of all Signatories. The Committee shall
elect its own Chairman. It shall meet as necessary, but not less than
once a year, for the purpose of affording Signatories the opportunity to
consult on any matters relating to the operation of this Agreement,
including developments in the civil aircraft industry, to determine
whether amendments are required to ensure continuance of free and
undistorted trade, to examine any matter for which it has not been
possible to find a satisfactory solution through bilateral
consultations, and to carry out such responsibilities as are assigned to
it under this Agreement, or by the Signatories.
8.2 The Committee shall review annually the
implementation and operation of this Agreement taking into account the
objectives thereof. The Committee shall annually inform the Contracting
Parties to the GATT of developments during the period covered by such
review.
8.3 Not later than the end of the third year
from the entry into force of this Agreement and periodically thereafter,
Signatories shall undertake further negotiations, with a view to
broadening and improving this Agreement on the basis of mutual
reciprocity.
8.4 The Committee may establish such
subsidiary bodies as may be appropriate to keep under regular review the
application of this Agreement to ensure a continuing balance of mutual
advantages. In particular, it shall establish an appropriate subsidiary
body in order to ensure a continuing balance of mutual advantages,
reciprocity and equivalent results with regard to the implementation of
the provisions of Article 2 above related to product coverage, the
end-use systems, customs duties and other charges.
8.5 Each Signatory shall afford sympathetic
consideration to and adequate opportunity for prompt consultation
regarding representations made by another Signatory with respect to any
matter affecting the operation of this Agreement.
8.6 Signatories recognize the desirability of
consultations with other Signatories in the Committee in order to seek a
mutually acceptable solution prior to the initiation of an investigation
to determine the existence, degree and effect of any alleged subsidy. In
those exceptional circumstances in which no consultations occur before
such domestic procedures are initiated, Signatories shall notify the
Committee immediately of initiation of such procedures and enter into
simultaneous consultations to seek a mutually agreed solution that would
obviate the need for countervailing measures.
8.7 Should a Signatory consider that its trade
interests in civil aircraft manufacture, repair, maintenance,
rebuilding, modification or conversion have been or are likely to be
adversely affected by any action by another Signatory, it may request
review of the matter by the Committee. Upon such a request, the
Committee shall convene within thirty days and shall review the matter
as quickly as possible with a view to resolving the issues involved as
promptly as possible and in particular prior to final resolution of
these issues elsewhere. In this connection the Committee may issue such
rulings or recommendations as may be appropriate. Such review shall be
without prejudice to the rights of Signatories under the GATT or under
instruments multilaterally negotiated under the auspices of the GATT, as
they affect trade in civil aircraft. For the purposes of aiding
consideration of the issues involved, under the GATT and such
instruments, the Committee may provide such technical assistance as may
be appropriate.
8.8 Signatories agree that, with respect to
any dispute related to a matter covered by this Agreement, but not
covered by other instruments multilaterally negotiated under the
auspices of the GATT, the provisions of Articles XXII and
XXIII of the
General Agreement and the provisions of the Understanding related to
Notification, Consultation, Dispute Settlement and Surveillance shall be
applied, mutatis mutandis, by the Signatories and the Committee for the
purposes of seeking settlement of such dispute. These procedures shall
also be applied for the settlement of any dispute related to a matter
covered by this Agreement and by another instrument multilaterally
negotiated under the auspices of the GATT, should the parties to the
dispute so agree.
B. Interpretation and Application of
Article 8
7. The Aircraft Committee reviews annually the
implementation of the Aircraft Agreement and, pursuant to Article IV.8
of the WTO Agreement, submits annual reports to the General
Council.(16)
8. At its meeting of 20 February 1980, the
Aircraft Committee established a Technical Sub-Committee,(17) with the
following terms of reference:
“1. Pursuant to Article
8.4, to examine the
implementation of the provisions of Article 2 related to product
coverage, the end-use system, customs duties and other charges,
including matters relating to aircraft tariff nomenclature, and to
report to the Committee.
2. In the light of the Preamble of the
Agreement, to examine proposals for modifying the product coverage and
to report thereon to the Committee”.(18)
9. At its meeting of 16 July 1992, the
Aircraft Committee also established the Sub-Committee of the Committee
on Trade in Civil Aircraft in which negotiations under Article 8.3 of
the Agreement would be conducted.(19) The Sub-Committee has not met since
its fourteenth meeting in November 1995.(20)
X. Article 9
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A. Text of Article 9
Article 9: Final Provisions
9.1 Acceptance and Accession
9.1.1 This Agreement shall be open for
acceptance by signature or otherwise by governments contracting parties
to the GATT and by the European Economic Community.
9.1.2 This Agreement shall be open for
acceptance by signature or otherwise by governments having provisionally
acceded to the GATT, on terms related to the effective application of
rights and obligations under this Agreement, which take into account
rights and obligations in the instruments providing for their
provisional accession.
9.1.3 This Agreement shall be open to
accession by any other government on terms, related to the effective
application of rights and obligations under this Agreement, to be agreed
between that government and the Signatories, by the deposit with the
Director-General to the CONTRACTING PARTIES to the GATT of an instrument
of accession which states the terms 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
9.2.1 Reservations may not be entered in
respect of any of the provisions of this Agreement without the consent
of the other Signatories.
9.3 Entry into Force
9.3.1 This Agreement shall enter into force on
1 January 1980 for the governments(1) which have accepted or acceded to it
by that date. For each other government it shall enter into force on the
thirtieth day following the date of its acceptance or accession to this
Agreement.
(footnote original)
1 For the purpose of this
Agreement, the term “government” is deemed to include the competent
authorities of the European Economic Community.
9.4 National Legislation
9.4.1 Each government accepting or acceding to
this Agreement shall ensure, not later than the date of entry into force
of this Agreement for it, the conformity of its laws, regulations and
administrative procedures with the provisions of this Agreement.
9.4.2 Each Signatory shall inform the
Committee of any changes in its laws and regulations relevant to this
Agreement and in 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 Committee, 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 withdrawal shall take effect upon the expiration of
twelve months from the day on which written notice of withdrawal is
received by the Director-General to the CONTRACTING PARTIES 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 Signatories
9.7.1 This Agreement shall not apply as
between any two Signatories if either of the Signatories, at the time
either accepts or accedes to this Agreement, does not consent to such
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 the
GATT secretariat.
9.10 Deposit
9.10.1 This Agreement shall be deposited with
the Director-General to the CONTRACTING PARTIES to the GATT who shall
promptly furnish to each Signatory and each contracting party to the
GATT a certified copy thereof and of each amendment 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 Article 9.6.
9.11 Registration
9.11.1 This Agreement shall be registered in
accordance with the provisions of Article 102 of the Charter of the
United Nations.
Done at Geneva this twelfth day of April
nineteen hundred and seventy-nine in a single copy, in the English and
French languages, each text being authentic, except as otherwise
specified with respect to the various lists in the Annex.(1)
(footnote original)
1 On 25 March 1987, the
Committee agreed that the Spanish text of the Agreement shall also be
considered authentic.
B. Interpretation and Application of
Article 9
No jurisprudence or decision of a competent
WTO body.
XI. Annex
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A. Text of the Annex
Annex: (as amended by the Protocol (1986) amending
the access to the Agreement on Trade in Civil Aircraft)
Product Coverage
1. The product coverage is defined in
Article
1 of the Agreement on Trade in Civil Aircraft.
2. Signatories agree that products covered by
the descriptions listed below(1) and properly classified for customs
purposes under the Customs Co-operation Council Nomenclature (Revised)
headings of the Harmonized System codes shown alongside shall be
accorded duty-free or duty-exempt treatment, if such products are for
use in civil aircraft or ground flying trainers(*) and for incorporation
therein, in the course of their manufacture, repair, maintenance,
rebuilding, modification or conversion.
These products shall not include:
an incomplete or unfinished product, unless it
has the essential character of a complete or finished part, component,
sub-assembly or item of equipment of a civil aircraft or ground flying
trainer(*), (e.g. an article which has a civil aircraft manufacturer’s
number),
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 and/or shaped for incorporation in civil
aircraft or a ground flying trainer(*) (e.g. an article which has a civil
aircraft manufacturer’s part number),
raw materials and consumable goods.
4. For the purpose of this
Annex, “Ex” has
been included to indicate that the product description referred to does
not exhaust the entire range of products within the Customs Co-operation
Council Nomenclature (Revised) headings or the Harmonized System codes
listed below.(1)
(footnote original)
1 The list is not reproduced.
(footnote original) * For the purposes of
Article 1.1 of this Agreement “ground flight simulators” are to be
regarded as ground flying trainers as provided for under 8805.20 of the
Harmonized System.
B. Interpretation and Application of the
Annex
No jurisprudence or decision of a competent
WTO body.
Footnotes:
1. BISD 26S/162-170.
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2. AIR/M/10, paras. 9-25 (see footnote 10 of this
Chapter). For the
Agreed interpretation of Article 2.1.2, see
para. 6 of this Chapter.
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3. No Members have become signatories to this
Agreement since 1 February 2002.
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4. With respect to the coverage of this
Agreement, see the Annex in Section XI.
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5. BISD 30S/4 (1983); BISD 31S/4 (1984); BISD
31S/5 (1985).
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6. BISD 34S/22-24.
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7.
TCA/4.
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8. TCA/6.
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9. TCA/7.
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10. The Protocol amending the Annex to the TCA
Agreement transposes into the Annex to the Agreement the changes
introduced in 1992, 1996 and 2002 versions of the Harmonized Commodity
Description and Coding System, as well as extending the product coverage
of the Agreement. The new product coverage annex is thus contained in
Annex
TCA/4.
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11.
TCA/8.
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12. The Committee agreed that the Decision on
Procedures for the Circulation and Derestriction of Documents would be
considered as finally adopted in the absence of objections from
Signatories before the agreed deadline of 30 November 2002. No
objections were made by that date and the adoption of the Decision was
thus confirmed. The Decision can be found in document
TCA/8.
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13.
WT/L/291, para. 4. As of 15 November 2000,
Bulgaria, Canada, the European Communities, Japan and the United States
had provided the requisite information,
TCA/M/11, para. 58.
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14.
TCA/M/11, para. 48. See also
TCA/M/12, paras.
47-51, and
TCA/W/7 concerning a communication from Japan on the
non-legally binding nature of the Aircraft Committee decision on 15
November 2000.
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15. AIR/M/10, BISD 30S/24.
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16.
WT/L/107;
WT/L/193;
WT/L/247;
WT/L/291;
WT/L/340 (+Corr.1);
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17. AIR/M/1, paras. 36-40.
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18. AIR/M/1, para. 38.
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19. AIR/M/32, para. 35. See also AIR/M/34, paras.
6-11.
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20.
TCA/1. See also
TCA/M/4, paras. 18-25.
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