3. TRANSPORT

3.1. Air Transport

B. Bilateral Sectoral Agreements ⁴

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1. Air Transport Agreement

DATE: February 24, 1995

MEMBERS: United States and Canada

Summary of Provisions

Definitions:
Article 23: For the purposes of this Agreement, unless otherwise stated, the following definitions are used: “Aeronautical Authorities”, “Agreement”, “Air Transportation”, “Airline”, “Convention”, “Courier Service”, “Designated Airline”, “Gateway”, “International Air Transportation”, “Meet”, “Price”, “Territory”, “User Charge”.

Grant of Rights:
Article 1: Each Party grants to the other Party the following rights for the conduct of international air transportation by the airlines of the other Party:

a) the right to fly across its territory without landing;

b) the right to make stops in its territory for non-traffic purposes; and

c) the rights otherwise specified in this Agreement.

Nothing in this Article shall be deemed to confer on the airline or airlines of one Party the rights to take on board, in the territory of the other Party, passengers, their baggage, cargo, or mail carried for compensation and destined for another point in the territory of that other Party.

Designation & Authorization:
Article 2: Each Party shall have the right to designate as many airlines as it wishes to conduct international air transportation in accordance with this Agreement and to withdraw or alter such designations. Such designations shall be transmitted to the other Party in writing through diplomatic channels or by such other mechanisms as may be agreed between the Parties.

Revocation of Authorization:
Article 3: Either Party may revoke, suspend, limit or condition, the operating authorizations or technical permissions of an airline designated by the other Party where: 

a) such airline fails to maintain its qualifications as required by the aeronautical authorities of that Party under the laws and regulations normally applied by those authorities;

b) substantial ownership and effective control of that airline are not vested in the other Party, the other Party’s nationals or both; 

c) that airline has otherwise failed to comply with the laws and regulations referred to in Article 12 (Application of Laws) of this Agreement; or 

d) the other Party is not maintaining and administering the standards as set forth in Article 13 (safety) and Article 14 (Aviation Security).

Articles 4 to 15 cover Fair Competition, Pricing, Tariffs, Airport Access, User Charges, Customs Duties and Charges, Commercial Opportunities, Computer Reservation Systems, Application of Laws, Safety, Aviation Security, and Statistics. 

Consultations and High Level Meetings:
Article 16: The Parties shall at all times endeavour to agree on the interpretation and application of this Agreement, and shall make every attempt through cooperation, exchange of information and consultations to arrive at a mutually satisfactory resolution of any matter that might affect its operation.

Either Party may request consultations regarding any aspect of the Agreement, including, but not limited to, anyactual or proposed measure or any matter that it considers affects the interpretation or application of the Agreement.

The Parties shall make every attempt to arrive as expeditiously as possible at a mutually satisfactory resolution of any matter through consultations.

If the Parties fail to resolve a matter pursuant to the provisions on consultations within: 

a) 30 days of the commencement of consultations, 

b) 30 days of delivery of a request for consultations in matters deemed and stated to be urgent by the requesting Party, or 

c) such other period as they may agree, either Party may request in writing a High Level Meeting (hereinafter referred to as “HLM”).

Resolution of Disputes:
Article 17: 
PART A - Panel Proceedings: The dispute settlement provisions of this Article shall apply when a Party considers that there has been a violation of the Agreement except that this Article shall not apply to individual prices charged by the airlines designated by either Party.

If an HLM has convened pursuant to Article 16 and the matter has not been resolved within a) 40 days after the delivery of the request for an HLM, or b) such other period as the Parties may agree; or if it is mutually agreed by the Parties, pursuant to paragraph 11 of Article 16, that an HLM should not be convened, then either Party may request in writing the establishment of an arbitral panel (whose constitution and functioning will be subject to the conditions contained in the Article) with respect to the matters referred to in paragraph 1of Part A of this Article which have been discussed at the HLM, or if an HLM has not been convened, which have been the subject of consultations.

PART B - Implementation of Panel Reports; 

PART C - Remuneration and Payment of Expenses.

Amendment of Agreement:
Article 19: If either Party considers it desirable to modify any provision of this Agreement, it mat request consultations with the other Party. Such consultations, which may be through discussion (including discussion between aeronautical authorities) or by correspondence, shall begin within a period of sixty (60) days from the date of the request. Any modification agreed pursuant to such consultations shall be effected by agreement between the two Governments.

Multilateral Conventions:
Article 20: If a general multilateral air transport services convention comes into force in respect of both Parties, in the event of inconsistencies, the provisions of that multilateral convention shall prevail.

Consultations in accordance with Article 16 of this Agreement may be held to determine if, and in what manner, this Agreement should be amended to bring it into conformity with the provisions of the multilateral convention.

Termination:
Article 21: Either Party may, at any time, give notice in writing through diplomatic channels to the other Party of its decision to terminate this Agreement. Such notice shall be sent simultaneously to the International Civil Aviation Organization. This Agreement shall terminate at midnight (at the place of receipt of the notice to the other Party) immediately before the first anniversary of the date of receipt of the notice by the other Party, unless the notice is withdrawn by agreement of the Parties before the end of this period. In the absence of acknowledgment of receipt by the other Party, the notice shall be deemed to have been received fourteen (14) days after the receipt of the notice by the International Civil Aviation Organization.

Registration with ICAO:
Article 22: This Agreement and all amendments thereto shall be registered with the International Civil Aviation Organization.

Entry into Force:
Article 24: This Agreement shall enter into force on the date of signature. This Agreement shall supersede the Air Transport Agreement, done at Ottawa January 17, 1966, with exchange of notes, as amended; the Nonscheduled Air Services Agreement, with annexes and exchanges of notes, done at Ottawa May 8, 1974; the Agreement Concerning Regional Local and Commuter Services, effected by exchange of notes at Montreal August 21, 1984, as amended; the Agreement on Aviation Security, done at Ottawa November 21, 1986; and the Agreement Relating to Air Navigation, effected by exchange of notes at Washington July 28, 1938.

2. Acuerdo de Transporte Aéreo Regular (Agreement on Regular Air Transport)

Legal Name, Date and members

DATE: February 10, 1983

MEMBERS: Argentina and Uruguay

Summary of Provisions

Definitions:
Article I: For the purposes of this Agreement and its Annexes, the following definitions are used: “Convention”, “Territory”, “Aeronautical Authorities”, “Designated Airline”, “Air Transportation”, “Price”, ”Specified Routes”, “Convened Services”, “Regional Traffic of Río de la Plata”.

Grant of Rights:
Article II: The Parties reciprocally grant each other the rights sealed in this Agreement and its Annexes, with the purpose to establish the “convened services”, in the “specified routes”.

Subject to the provisions in this Agreement and its Annexes, the airline or designated airlines for each Party, while operating the convened services in the specified routes, will have the following rights:

a) the right to fly across the other Party’s territory;

b) the right to make stops in its territory for non-commercial purposes; and

c) to make stops in the territory of the other Party, with the purpose to exclusively ship the international traffic of passengers, cargo, or mail with no need for an authorization to participate in the domestic traffic of coastal trade.

Conditions for the Exercise of the Granted Rights:
Article III: Each of the Parties shall have the right to designate, given previous written communication to the other Party, one or more airlines for the exploitation of the convened services in the specified routes.

Once such designation has been received, the other Party must grant the needed authorizations with no delay to the designated airline(s), observing the provisions of paragraphs 4 and 5 of this Article. 

Revocation, Suspension and Limitation of Rights:
Article V: Either Party has the right to revoke the authorization for exploitation, to suspend the exercise of the rights granted to a designated airline by the other Party , or to impose the conditions which it considers necessary for the exercise of these rights, in the following cases: 

a) when it has not been satisfactorily proved that substantial ownership and effective control of that airline are not vested in the other Party, the other Party’s nationals;

b) when this airline has otherwise failed to comply with the laws and regulations of the Party granting the rights; and 

c) when the airline has failed to comply with the conditions of this Agreement and its Annexes while exploiting the convened services.

Article IV covers Forbidden Zones, and Articles VI to XV cover Use of Installations and Services, Exemption of Operating Taxes, Transference of Surpluses, Facilities to Passengers, Equipment and Cargo in transit, Recognition of Certificates, Licenses and Qualifications, Application of Laws and Regulations, Infractions of the Designated Airlines, Statistics and Exchange of Opinions.

Settlement of Disputes:
Article XVII: If any disagreement regarding the interpretation or application of this Agreement and its Annexes shall arise, the Parties should reach an agreement through negotiations.

If the Parties fail to achieve a solution through such consultations, the matter will be submitted to an Arbitral Tribunal, whose constitution and functioning will be subject to the conditions contained in the Article.

Consultation, Modifications and Amendments to the Agreement and its Annexes:
Article XVI: If any of the Parties considers it desirable to modify any provision of this Agreement, it may request consultations between the aeronautical authorities of both Parties, regarding the proposed modifications. The consultations shall begin within a period of sixty days from the date of the request.

The modifications agreed by the Parties will enter into force after being confirmed by an Exchange of Notes through diplomatic channels, with no harm to the current requirements for each of the Parties.

Multilateral Conventions:
Article XVIII: If a general multilateral air transport services convention comes into force in respect of both Parties, this Agreement and its Annexes will be amended to conform the stipulations of such Multilateral Convention.

Termination and Denouncement of the Agreement:
Article XX: This Agreement will have a duration of five (5) years, from the moment when it enters into force and may be renewed in a Consultation Meeting for successive periods of identical duration, when there is common agreement.

With no harm to what was established in the previous paragraph, any of the Parties can, at any moment, denounce this Agreement. The notification shall be made simultaneously to the other Party and to the International Civil Aviation Organization (ICAO). 

This Agreement shall terminate six months after the receipt of the notification by the other Party, unless the notification is withdrawn by agreement of the Parties, before the end of this period. In the absence of acknowledgment of receipt by the other Party, the notification shall be deemed to have been received fourteen (14) days after the receipt of the notification by the International Civil Aviation Organization.

Registration with ICAO:
Article XIX: This Agreement and its Annexes, amendments or modifications shall be registered in the International Civil Aviation Organization (ICAO).

Entry into Force:
Article XXI: This Agreement and its Annexes will be ratified in conformity with the Parties’ respective internal legislation and will enter into force after the exchange of the ratification instruments which will take place in Montevideo.

3. Convenio sobre Transporte Aéreo (Air Transport Agreement)

Legal name, Date and Members

DATE: February 14, 1996

MEMBERS: Mexico and Panama

Summary of Provisions

Definitions:
Article 1: For the purposes of this Agreement and its schedule of routes, the following definitions are used: “Convention”, “This Agreement”, “Aeronautical Authorities”, “International Air Transport Service”, “Designated Airline”, ”Stop for non-commercial ends”, ”Price”, “Frequency”, ”Specified Routes”, “Territory”.

Grant of Rights:
Article 2: Each Party grants to the other Party the rights sealed in this Agreement, with the purpose to establish regular international air services of passengers, cargo and mail in the routes featured in the Schedule of Routes which is annexed to this Agreement.

In conformity with the provisions in this Agreement , the airline or designated airlines for each Party, while operating the convened services, will have the following rights:

a) the right to fly across the other Party’s territory without landing;

b) the right to make stops in the other Party’s territory for non-commercial purposes; and

c) the right to ship and deliver in such territory, the international traffic of passengers, cargo, or mail, at the points which are specified in the annexed Schedule of Routes.

The right of all of the annexed Schedule of Routes’ sectors to the traffic of fifth freedom will only be exercised after consultation among the Air Authorities, under the terms specified in the Schedule of Routes.

Designation & Authorization of Airlines:
Article 3: Each of the Parties shall have the right to designate, given previous written communication to the other Party through diplomatic channels, up to two (2) airlines with the purpose to operate the convened services in the specified routes and the right to withdraw or change such designations. Such designations will be made on the basis of the principle of strict reciprocity.

Once such designation has been received, the other Party must grant the operating authorizations to the designated airline(s) with no delay, observing the provisions of paragraphs 3 of this Article.

Revocation or Suspension of the Authorizations:
Article 4: Each Party may have the right to revoke an operating authorization or to suspend the exercise of the rights granted to designated airlines by the other Party and which are specified in Article 2 of this Agreement, or to impose the conditions which it considers necessary, when these airlines fail to comply with the laws or regulations of the Party granting those rights, or when the airlines do not operate in conformity with the conditions established in this Agreement.

Articles 5 to 12 cover Application of Laws and Regulations, Recognition of Certificates and Licenses, Airport Access, Customs Duties, Principle regulating the Operation of Convened Services, Tariffs, Transference of Utilities, Aviation Security.

Consultations:
Article 13: Either Party may, at any moment, request consultation through diplomatic channels, regarding the interpretation, application or amendment of the Agreement. Such consultations, which may through discussion between Aeronautical Authorities, will take place within sixty (60) days from the date when the written request has been received, unless otherwise agreed by the Parties.

If the Parties agree to modify the Agreement, the modifications will be formalized by an exchange of diplomatic Notes, and will enter into force through an additional exchange of notes in which the Parties communicate the fulfillment of the requirements of their respective national legislation.The annexed Schedule of Routes may be modified by mutual agreement between the Aeronautical Authorities of both Parties.

Settlement of Disputes:
Article 14: Except when otherwise established in the Agreement, any dispute between the Parties regarding the interpretation or application of this Agreement which has not been resolved through the consultations will be subject to an arbitral tribunal consisting of three members, two of them being designated by each of the Parties and the third by common agreement between the first two members of the tribunal, under the condition that it will not be a national of any of the Parties.

If an agreement is not reached within the period established in this Article regarding the designation of the third arbitrator, it will be designated by the President of the Council of the International Civil Aviation Organization, according to the procedures of that Organization, at the request of any of the Parties.

Termination:
Article 15: Either Party may, at any moment, notify the other Party and the International Civil Aviation Organization, through diplomatic channels, the decision to terminate the Agreement. This Agreement shall terminate six months after the receipt of the notification by the other Party, unless the notification is withdrawn by agreement of the Parties, before the end of this period. In the absence of acknowledgment of receipt by the other Party, the notification shall be deemed to have been received fourteen (14) days after the receipt of the notification by the International Civil Aviation Organization.

Entry into Force:
Article 16: This Agreement will enter into force on the date when the Parties, through exchange of diplomatic notes, notify each other of the fulfillment of the requirements of their national legislation.

4. Acuerdo sobre Transporte Aéreo (Air Transport Agreement)

Legal Name, Date and Members

DATE: June 26, 1990

MEMBERS: Venezuela and Canada

Summary of Provisions

Definitions:
Article 1: For the purposes of this Agreement, unless otherwise stated, the following definitions are used: “Aeronautical Authorities”, “Convened Services", ”Agreement”, “Convention”, “Designated Airline”, ”Price”, “Territory”, “Air Service”, ”International Air Service”, “Airlines”, “Stop for non-commercial ends”, “Change of Operational Capacity”, “Aircraft’s Capacity”, “Frequency”, ”Cargo Coefficient”

Grant of Rights:
Article III: Each Party grants to the other Party, unless otherwise specified in the Annexes, the following rights regarding the regular services of international air transport operated by the designated airlines of the other Party:

a) the right to fly across its territory without landing;

b) the right to make stops in its territory for non-traffic purposes; 

c) to land in the territory of the other Party, with the purpose to ship and deliver the international traffic of passengers, cargo, or mail, separately or combined, while operating in the routes specified in the Annexes.

The airlines which have not been designated according to Article V of this Agreement , will also benefit from the rights specified in Paragraph 1 (a) and (b) of this Article.

Nothing in this Article shall be deemed to confer on the airline or airlines of one Party the rights to take on board, in the territory of the other Party, passengers, their baggage, cargo, or mail carried for compensation and destined for another point in the territory of that other Party.

Designation & Authorization:
Article V: Each of the Parties shall have the right to designate one or more airlines for the exploitation of the convened services in the specified routes. This designation will be made through a Diplomatic Note.

Once such designation has been received, the other Party must grant the needed authorizations with no delay to the designated airline(s), observing the provisions of paragraphs 4 and 5 of this Article. 

Revocation or Suspension of Authorizations:
Article VII: The aeronautical authorities will have the right to withhold the authorizations referred in Article V regarding an airline designated by the other Party, to revoke, or suspend such authorizations, or to impose conditions, temporarily or permanently, in the following cases: 

a) when such airline fails to maintain its qualifications as required by the aeronautical authorities of that Party under the laws and regulations normally applied by those authorities;

b) when this airline has otherwise failed to comply with the laws and regulations of the Party granting the rights; 

c) when it has not been satisfactorily proved that substantial ownership and effective control of that airline are not vested in the other Party, the other Party’s nationals; and

d) when the airlines do not operate in conformity with the conditions established in this Agreement.

Article VI covers the Recognition of Certificate and License ; Articles VIII to XV cover the Application of Laws, Capacity, Tariffs, Aviation Security, Airline Representation, Taxes, Statistics, and Airport Access; Articles XXI and XXII cover Sales and Transference of Surpluses and Exemption of Taxes on Equipment, Combustible and Provisions.

Consultations:
Article XVI: The Parties’ aeronautical authorities will have periodical consultations in a spirit of close cooperation, with the purpose to assure the implementation and the satisfactory observation of provisions of this Agreement and its Annexes.

Any of the Parties may request consultations in writing. Such consultations will take place within sixty (60) days from the date when the written request has been received, unless otherwise agreed by the Parties.

Modifications:
Article XVII: If either Party considers it necessary to modify any provision of this Agreement, it may request consultations with the other Party. Such consultations, which may be between aeronautical authorities and through negotiations or by correspondence, shall begin within a period of sixty (60) days from the date of the request.

Any modification agreed pursuant to such consultations shall be effected after being confirmed through exchange of diplomatic notes.

Settlement of Disputes:
Article XVIII: If any disagreement regarding the interpretation or application of this Agreement and its Annexes shall arise, the Parties should reach an agreement through negotiations.

Such negotiations will initiate as soon as possible, but in any case no more than forty five (45) days from the date of the receipt of the request for negotiations, unless otherwise agreed by the Parties.

If a satisfactory solution is not reached within the following one hundred and eighty (180) days, such fact will be sufficient reason for the application of Article VII (Revocation or Suspension of Authorizations) of this Agreement, unless otherwise agreed by the Parties.

Registration with ICAO:
Article XIX: This Agreement and any modifications shall be registered in the International Civil Aviation Organization (ICAO).

Multilateral Conventions:
Article XX: If a general multilateral air transport services convention comes into force in respect of both Parties, in the event of inconsistencies, the provisions of that multilateral convention shall prevail. Consultations in accordance with Article XVII of this Agreement may be held to determine what measure this Agreement is in contradiction with provisions of the multilateral convention.

Termination:
Article XXIII: Either Party may, at any time, give notice in writing through diplomatic channels to the other Party of its decision to terminate this Agreement. Such notice shall be sent simultaneously to the International Civil Aviation Organization.

This Agreement shall be terminated one (1) year after the receipt of the notice by the other Party, unless the notice is withdrawn by agreement of the Parties before the end of this period. In the absence of acknowledgment of receipt by the other Party, the notice shall be deemed to have been received fourteen (14) days after the receipt of the notice by the International Civil Aviation Organization.

Entry into Force:
Article XXV: This Agreement will enter into force on the date of the last notification made by the Parties of the fulfillment of the necessary legal requirements.

5. Reunión de Autoridades Aeronáuticas - con el objeto de revisar la relación bilateral aerocomercial entre ambos países (Document on Air Transport (Mem. of Understanding) - Meeting between Air Authorities)

Legal Name, Date and Members

DATE: August 13 & 14, 1996

MEMBERS: Chile and Argentina

With a spirit of close cooperation and cordiality, which is characteristic of the relations maintained by both country regarding this subject, the following issues were considered:

1 - Transport of Cargo:
The aeronautical authorities agreed to total openness regarding the regular and non-regular exclusive freight services in the American Continent, with full rights to traffic between both territories and with other countries of the Continent, with no limitations regarding points of operation or flight material, which may be owned or rented (“Dry lease” and “Wet lease”).

2 - Transport of Passengers (Routes and Traffic Rights):

a) Rights to third and fourth freedoms;

b) Rights to fifth freedom;

c) Rights to sixth freedom.

3 - Operative Modalities:
The designated airlines of each Party may carry commercial arrangements such as “joint venture”, “block space”, “code sharing”, etc., with any other airline whenever they count with the appropriate rights and observe the legal requirements applied to such arrangements.

4 - Agreements:
The aeronautical authorities agreed to prepare a text for a Bilateral Agreement on Air Transport between both countries and to designate a working group which may be in charge of this task, and which may propose a project to be submitted to revision and approval by the aeronautical authorities in a Consultation Meeting.

5 - Miscellaneous:

a) Airport Facilities;

b) Commercial Opportunities.

6 - Duration of previous Actas:
The aeronautical authorities of both countries agreed that, from this date, any bilateral aerocommercial relation between the countries will be ruled by this Acta (this Memorandum), which will replace all previous Actas.

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