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SECTORAL AGREEMENTS ON SERVICES 
IN THE WESTERN HEMISPHERE

SG/TU/WG.SERV/DOC.2/97/Rev. 2
25 February 1998
Original: English


(Continuation)

3. TRANSPORT

3.2 Maritime Transport

B. Bialteral Sectoral Agreements

1 | 2 | 3 | 4 | 5

 

1. Acuerdo sobre Transportes Marítimos (Agreement on Maritime Transport)

DATE: August 15, 1985

MEMBERS: Argentina and Brazil

Objective:
Article II.(1):
The Parties to this Agreement will implement efforts to establish efficient maritime transport services between Argentine and Brazilian ports, which will be provided by authorized carriers of both countries, with the frequency and regularity dictated by the bilateral trade needs.

Definitions:
Article I:
For the purposes of this Agreement a national shipowner (or carrier) includes the physical or juridical persons who, according to the current legislation in each of the countries, have the direction, control and capital with power of decision.

Article II.(3): For the purpose of this Agreement, competent authority is, in the Republic of Argentina, the Subsecretariat of River and Maritime Transport of the Ministry of Public Service and Works, and in the Federative Republic of Brazil, the National Superintendency of the Merchant Marine (SUNAMAM) of the Ministry of Transport.

Article II.(4): Authorized carriers are the Parties’ national carriers, who have obtained the corresponding authorization from their respective authorities, referred above.

Article III.(3.1): For the purpose of this Agreement, governmental incentives are the benefits of fiscal, trade, financial and credit origin.

Article III.(5): For the purpose of Paragraph 1 of this Article, national-flag vessels are national vessels or foreign vessels which are rented or chartered by the authorized carriers, for the provision of maritime transport services.

Commercial Operations:
Article III.(1):
The merchandise originated in Argentine ports and destined to Brazilian ports, or vice-versa, will be mandatorily transported by the Parties’ national-flag vessels, with equal participation in the totality of generated shipments.

Government-controlled cargo:
Article III.(3): The cargoes which receive any governmental incentive in any of the Parties, are included in paragraph 1 of Article III.

Article III.(4): In order to implement the established in paragraph (1) of this Article, the following order of priority is instituted:

(4.1): transport in both directions, in national flags vessels of both Parties;

(4.2): transport, in vessels of one of the national flags, of share of the quota of the other Party, which it has no conditions to transport.

Article IV.(2): In case the Parties’ authorized carriers cannot transport using their own or chartered vessels according to this Agreement’s provisions, the cargoes may be released for boarding in the following order of priority:

a) in vessels of national non-authorized carriers of the exporting country;

b) in vessels of national non-authorized carriers of the importing country;

c) in vessels of other non-authorized Argentine and Brazilian carriers, following the order of paragraphs a) and b);

d) in vessels of third flags, with preference for countries which are members of the ALADI;

e) in vessels of third flags of countries distinct from open record or “free registration” countries;

f) in vessels of third flags of open record or “free registration” countries.

Non-discriminatory Measure:
Article IV.(1):
The flag preference will not imply any discrimination of cargo, neither will cause the wait in the shipments to be over the period established in the legislation of the exporter country.

Argentina/Brazil Conference on Freights:
Article V.(1):
The statutes of the Argentina/Brazil Conference on Freights, as elaborated in Article III of the Agreement on Maritime Transport of 1968, may be modified, respecting the following basic principles: 

a) constitution and organization of the Conference on Freights; 

b) commercial cooperation between the authorized carriers; 

c) provision of services which attend equitably loading and unloading ports, observing the legislation of each Party; 

d) functioning of the Committees of the Conference on Freights, with their procedures and decision-making system;

e) establishment and maintenance of the freights’ tariff and conditions for the transport of merchandise; 

f) establishment of rules for the agreements on the apportionment of cargoes, based on the generated freights.

National Treatment:
Article X.(1):
The vessels of Argentine and Brazilian flags transporting cargo between both countries, will receive, in each of them, the same treatment as the national-flag vessels which operate in the same traffic.

Domestic Regulation:
Article XI:
None of the provisions in this Agreement will be interpreted as a restriction to each country’s right to regulate the national coastal traffic, as well as the transport to third countries.

They may not be considered either a restriction to each country’s right to facilitate, under any circumstance, the services of national coastal traffic provided by their vessels.

Exclusions:
Article XII:
The transport in bulks of petroleum and its liquid derivatives by primary distillation, of liquefied petroleum gas, as well as minerals in bulks, are excluded from this Agreement. The transport of wheat will be also excluded, in conformity with the Temporary Provisions set up in Article XVI.

Consultations:
Article XIII.(1):
The competent authorities, at the request of one of them, will call consultation meetings, with the purpose to examine the development and the implementation of this Agreement and its improvement.

Duration:
Article XIV.(2):
This Agreement will have a initial duration of two (2) years, automatically renewable for equal and successive periods.

Denouncement:
Article XIV.(3):
The Parties may denounce this Agreement at any time. The denouncement will be effective within ninety (90) days after receiving the notification, through corresponding diplomatic notes.

 

2. Convenio sobre Transportes Marítimos (Agreement on Maritime Transport)

DATE: October 27, 1972

MEMBERS: Argentina and Peru

Summary of Provisions

Objective:
Develop the reciprocal commercial exchange, taking into account the special interest in promoting the bilateral trade by strengthening and properly protecting the economic stability of both marine merchants, whose existence and development are considered essential, not only for the expansion and diversification of the economic relations between both countries, but also to assure the increase in the commercial and industrial cooperation.

Definitions:
Article II.(1):
Vessels of Argentine or Peruvian flags are considered the vessels registered as such, according to the current legislation in each of the Parties.

Article XXX: For the purposes of this Agreement, competent authorities are, in the Republic of Argentina, the Ministry of Public Works and Services - Merchant Marine - and, in the Republic of Peru, the Ministry of Transport and Communications - Aquatic Transport General Division -, which will be responsible for the implementation and control of its provisions. 

Commercial Operations:
Article I.(1):
The maritime transport of goods which are object of the commercial exchange between both countries, will mandatorily take place in vessels of Argentine and Peruvian flags, including the cargoes receiving governmental favor in any of the countries.

Article I.(2): In implementing the prescribed above, the following order of priority is established:

a) Transport between the Parties using their national vessels with equal participation in the totality of generated shipments;

b) Transport in national vessels of one of the countries within the quota of the other flag which it has no conditions to cover;

c) Transport in national vessels of ALALC member countries’ flags of part of the shipments corresponding to its 50% quota, given the previous knowledge and authorization of the other Party, and based on reciprocal treatment on other traffic of exchange. Such concession does not invalidate the Parties’ responsibilities under this Agreement’s terms;

d) Transport in vessels of flags of other countries, which are not members of the ALALC, of part of the shipments corresponding to its 50% quota, given the previous knowledge and authorization of the other Party, whenever such flags accord to Argentine and Peruvian vessels reciprocal treatment, and given that:

i) their participation does not constitute an obstacle to the Parties’ trade and to the stability and expansion of their marine merchants;

ii) they perform their regular route between the ports of their own country and the ports of the Argentine and Peruvian Republics; 

iii) the country of its flag does not apply restrictive measures or of equivalent effects to the traffic or to the vessels pertaining to the Parties; 

iv) they apply tariffs and implement transport conditions established by the Argentine-Peruvian Agreement on Tariffs and Services in the traffic between the two Parties.

Agreement on Tariffs and Services:
Article VII:
 

1 - An Agreement on Tariffs and Services is constituted by the Argentine and Peruvian carriers for the execution of the present Agreement.

2 - Such Agreement will cover several aspects of the Argentine-Peruvian maritime transport, keeping in permanent contact with interested commercial sectors and with the competent authorities of both countries.

Article VIII: The Parties will promote, if convenient, the constitution of a Conference on Freights and of one “Full Money Pool” gathering carriers of both flags.

Article IX: Only carriers integrating the Agreement on Tariffs and Services will be able to transport merchandise to be loaded in Argentine ports and destined to Peruvian ports, and vice-versa.

Article XI: The Agreement on Tariffs and Services will be responsible for the organization of the maritime traffic covered by the present Agreement, for a more efficient and economic provision of the services.

National Treatment:
Article XXII:
The vessels of Argentine and Peruvian flags transporting cargoes between both countries will receive, in each of them, the same treatment as the national-flag vessels connected to the same traffic in terms of fees, taxes, tariffs, contributions, port, customs and operational procedures, provision of shipment and unloading services, packing and unpacking, use of a freight platform, piloting and towing, consular tariffs, navigation rights, bringing alongside the harbor, staying, and price for combustible refills.

Non-discriminatory Measure:
Article XXIII:
None of the measures applied by a country with respect to persons and merchandise which are transported by vessels of its own record can imply in reloads, price increases or reductions, or any differential treatment, when transported by vessels of other countries.

Article XXIV: The Parties commit themselves to not impose restrictions of any nature or measures of equivalent effect which imply unequal or less favorable treatment than the one applied to vessels of third flags, for the operation, reception or shipment of national vessels of both countries.

Consultations:
Article XVII:
Each Party can request consultation meetings between the competent maritime authorities to suggest modifications to the provisions of this Agreement, which shall be initiated within ninety days after receiving the notification with such request.

The competent maritime authorities will meet periodically to evaluate the conditions and results of the implementation of this Agreement and to seek its improvement.

Duration and Entry into Force:
Article XXIX:
This Agreement will enter into vigor when the exchange of the Parties’ ratification instruments takes place in Buenos Aires and will have a duration of five years, automatically renewable for another five years, unless one of the Parties notify the other, with a minimum of ninety days anticipation, of its wish to denounce the Agreement.

 

3. Convenio sobre Transporte Marítimo (Agreement on Maritime Transport)

DATE: April 25, 1974

MEMBERS: Chile and Brazil

Summary of Provisions

Objective:
Develop the commercial exchange between the Governments of the Republic of Chile and the Federative Republic of Brazil.

Definitions:
Article XXI.(3):
For the purposes of this Agreement, commerce and navigation of the national coastal traffic are the services of transport by water provided between ports and geographical points of a same country in conformity with its legislation.

Article II.(1): Vessels of Chilean or Brazilian flags are considered the vessels registered as such, according to the current legislation in each of the Parties.

Article XXV.(1): For the purposes of this Agreement, competent authority is, in the Republic of Chile, the Department of River, Lake and Maritime Transport - Subsecretariat of Transport of the the Ministry of Public Works and Transport, and in the Federative Republic of Brazil, the National Superintendency of the Merchant Marine (SUNAMAM) of the Ministry of Transport.

Commercial Operations:
Article I.

(1): The maritime transport of goods which are object of the commercial exchange between both countries, will mandatorily take place in vessels of Chilean and Brazilian flags, including the cargoes receiving governmental favor in any of the countries.

(2): The transport must take place in such a way that the totality of obtained shipments be divided in equal parts between the flags of the Parties, in both ways of the traffic.

(3): In case one of the Parties has no conditions to carry the transport as established in paragraph 2 of this Article, the transport shall be made, whenever possible, in vessels of the other Party, and will be computed in the 50% (fifty percent) quota of the yielding Party. 

(4): Each Party may authorize, given previous communication to the Competent maritime authority of the other Party, the concession by the carriers of its flag of a corresponding share of the 50% (fifty percent) to carriers of countries which are members of the ALALC. Such concession can only be authorized when there is a reciprocal treatment in other traffic of exchange with a member country of the ALALC. This concession does not invalidate the Parties’ responsibilities under the terms of this Agreement.

Agreement on Tariffs and Services:
Article VI:
 

1 - An Agreement on Tariffs and Services is constituted by the Chilean and Brazilian carriers for the execution of the present Agreement.

2 - Such Agreement will cover several aspects of the Chilean-Brazilian maritime transport, keeping in permanent contact with interested commercial sectors and with the competent authorities of both countries. 

3 - The Parties will promote, if convenient, the constitution of a Conference on Freights gathering carriers of both flags, authorized by the competent maritime authorities to operate the traffic covered by the present Agreement on Maritime Transport.

Article VII: The Parties will promote the constitution of one or more “Full Money Pools” gathering carriers of both flags.

Article IX: The Agreement on Tariffs and Services will be responsible for the organization of the maritime traffic covered by the present Agreement, for a more efficient and economic provision of the services.

National Treatment:
Article XX:
The vessels of Chilean and Brazilian flag transporting cargoes between both countries, will receive, in each of them, the same treatment as the national-flag vessels operating in the same traffic, with no harm to the sovereign right of each country to limit some zones for national security reasons.

Domestic Regulation:
Article XXI:
None of the provisions of the present Agreement will be interpreted as a restriction to the right of each country to regulate its national coastal traffic, as well as the transport to and from third countries.

They may also not be considered a restriction to each country’s right to facilitate, under any circumstance, the services of national coastal traffic provided by their vessels.

Non-discriminatory Measure:
Article XXII:
The application of the clauses of this Agreement may not imply discriminations of cargoes, or unjustified refusal of shipments, excessive freight charges, loading delays, or the adoption of any other measures which constitute practices of unfair competition, which disturb the participation of the vessels of each of the Parties’ flags.

Exclusions:
Article I.(5):
The transport of complete shipments of minerals in bulks, as well as petroleum and its derivatives are subject to the internal legislation of each Party.

Consultations:
Article XXVI.(1):
Each Party can request consultation meetings between the Competent Maritime Authorities on the provisions and applications of this Agreement, which shall be initiated within ninety days after receiving the notification with such request. The requests for consultations shall be done through normal diplomatic channels.

Duration and Entry into Force:
Article XXIX:
This Agreement will enter into vigor within ninety days of the exchange of the Parties’ ratification instruments and will have a duration of five years, automatically renewable for another five years, unless one of the Parties notify the other, with a minimum of one hundred an twenty days anticipation, of its wish to denounce the Agreement.

 

4. Agreement on Maritime Transport

DATE: May 31, 1996

MEMBERS: United States and Brazil

Summary of Provisions

Objective:
Article 1:
 

a) The Parties recommit themselves to the pursuit of free and open maritime trades, through administrative and legislative measures. In this connection, the Federative Republic of Brazil, within the term of this Agreement, will continue to formulate appropriate measures to liberalize and enhance competition in its maritime trade, including efforts to reduce significantly the scope and coverage of government-controlled liner cargo in the bilateral trades.

Non-discriminatory Measures:
Article 1:
 

b) The Parties shall afford fair and non-discriminatory opportunity to national-flag carriers of both Parties and third-flag carriers to compete for the carriage of commercial cargo in the bilateral trade. They shall further afford fair and non-discriminatory opportunity for national-flag carriers of both Parties to compete for the carriage of commercial cargo in third-country trades.

c) National-flag carriers of each Party shall have equal and non-discriminatory access to the government-controlled cargo of the other Party for carriage in vessels owned or chartered by those carriers. This provision shall not apply to defense cargoes as defined in each Party’s respective national legislation, or to U.S. exports of agricultural commodities and products covered by Section 901(b) of the United States Merchant Marine Act of 1936; however, the amount of these cargoes not reserved for U.S.-flag vessels shall be available to Brazilian carriers.

Government-controlled Cargo:
Article 1:
 

d) Waivers for the carriage of government-controlled cargo by third-flag vessels shall be issued expeditiously. The availability period used by the Brazilian merchant marine agency to determine whether waivers for the carriage of government-controlled cargo by non-national vessels may be granted shall consist of no more than three days before and seven days after the shipper’s requested sailing date. The Brazilian merchant marine agency will respond to waiver requests within three working days of receipt; 

e) The Parties, upon request by a shipper, carrier or other interested party, will make every effort to advise within three working days if a specific cargo is under the laws of controlled cargo and the basis of such characterization.

Commercial Operations:

f) The Parties shall afford liberal and equivalent treatment with respect to commercial operations of each party’s carriers including the establishment of business offices, the ownership and operation of maritime facilities and equipment, access to terminal facilities, the intermodal movement of cargo, and the establishment of such other facilities as may be necessary to the efficient conduct of maritime services.

Domestic Regulation:

g) In order to facilitate efficient operation of maritime transport, the Parties shall not impose any restrictions on the transshipment or relay shipment of cargoes in the bilateral trade.

Taxes and Tariffs:

h) On a reciprocal basis, each Party will afford vessels of the other Party the same treatment as its own vessels with respect to taxes assessed on tonnage or freight value and other taxes and levies; (National Treatment)

i) The tariffs of and shipping documents issued by non-vessel-operating common carriers organized under the laws of the United States shall be recognized and given effect in the southbound trade between the Parties; (Recognition)

Transparency:
Article 1:
 

j) The Parties will regularly exchange timely information on the value and tonnage, by flag and type of vessel, of their respective government-controlled cargo in the bilateral trade.

Consultations and Settlement of Disputes:
Article 2:
Shall meet within thirty days after the request of either Party to consult on liberalization in the sector, on matters affecting the bilateral maritime trades, or on any matter involving the application or interpretation of this Agreement.

Entry into Force, Duration and Termination:
Article 3:
The Parties shall operate in a manner consistent with this Agreement upon signature. The Agreement shall enter into force on the date of receipt of the last notification indicating that all internal procedures have been completed and shall remain in force for a period of three years from this date, unless terminated by written notice of either Party.

 

5. Memorandum of Understanding Regarding Certain Maritime Matters

DATE: March 31, 1978

MEMBERS: United States and Argentina

Summary of Provisions

The Government of the United States of America and the Government of the Argentine Republic have agreed as follows:

1. Each Party recognizes the intention of the other Party in carrying a substantial portion of its liner trade in vessels of its own flag in accord with appropriate legislation in each country. For purposes of this paragraph, vessel of Argentina shall include vessels under Argentine registry or charter.

This provision, established in the light of the reciprocal interests of the two countries, does not affect the rights of flag vessels of third parties to carry goods between the ports of the two Parties, as implemented in the terms of Paragraph 2 below, and in accord with the appropriate legislation in each country.

2. The establishment of mechanisms and procedures necessary to the implementation of the carriage of cargo envisioned in Paragraph 1 of this Memorandum of Understanding, such as revenue shares for the lines in the trade, number of sailings, over-carriage and under-carriage provisions, and similar matters, will be determined by commercial agreement between their respective national flag carriers, subject to approval by the appropriate governmental agencies of each of the Parties.

3. In connection with the implementation of such agreements both Parties will center into an understanding providing for access to government-controlled cargoes in accord with the appropriate legislation in each country.

Consultations and Settlement of Disputes:
5.
The competent authorities shall hold consultative meetings at the request of either Party for the purpose of promoting improvements in the procedures for implementing the provisions of the present Memorandum of Understanding and for examining specific problems arising therefrom [sic.].

Maritime Authorities:
3.
For the purpose of this Memorandum of Understanding the competent maritime authorities are considered to be the Maritime Administration, Department of Commerce, for the Government of the United States of America and the Secretariat of States for Maritime Interests of the Ministry of Economy, for the Government of the Argentine Republic.

Entry into Force:
This Memorandum of Understanding will become effective upon notification that necessary procedures under Argentine law have been met.

 

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