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U.S. Department of State

Diplomacy in Action

Multilateral Agreement on the Liberalization of International Air Transportation With New Zealand


May 1, 2001

   
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MULTILATERAL AGREEMENT ON THE LIBERALIZATION OF INTERNATIONAL AIR TRANSPORTATION


The Parties to this Agreement (hereinafter, "the Parties") ;

Desiring to promote an international aviation system based on competition among airlines
in the marketplace with minimum interference and regulation ;

Desiring to facilitate the expansion of international air transport opportunities;

Recognizing that efficient and competitive international air services enhance trade, benefit
consumers, and promote economic growth ;

Recognizing the contribution made by the Asia-Pacific Economic Cooperation forum in
facilitating discussions on the liberalization of air services ;

Desiring to make it possible for airlines to offer the traveling and shipping public a variety
of service options and wishing to encourage individual airlines to develop and implement
innovative and competitive prices ;

Desiring to ensure the highest degree of safety and security in international air transport
and reaffirming their grave concern about acts or threats against the security of aircraft,
which jeopardize the safety of persons or property, adversely affect the operation of air
transportation, and undermine public confidence in the safety of civil aviation; and

Noting the Convention on International Civil Aviation, opened for signature at Chicago on
December 7, 1944 ;
Have agreed as follows : 9

Article 1
Definitions
For the purposes of this Agreement, unless otherwise stated, the term :

1 . "Agreement" means this Agreement, its Annex and Appendix, and any amendments
thereto ;

2 . "Air transportation" means the public carriage by aircraft of passengers, baggage,
cargo, and mail, separately or in combination, for remuneration or hire ;

3 . "Convention" means the Convention on International Civil Aviation, opened for
signature at Chicago on December 7, 1944, and includes :
a. any amendment that has entered into force under Article 94(a) of the
Convention and has been ratified by all Parties to this Agreement ; and
b. any Annex or any amendment thereto adopted under Article 90 of the
Convention, insofar as such Annex or amendment is at any given time
effective for all Parties to this Agreement ;

4. "Designated airline" means an airline designated and authorized in accordance with
Article 3 of this Agreement ;

5 . "Full cost" means the cost of providing service, including a reasonable amount for
administrative overhead;
6. "International air transportation" means air transportation that passes through the
airspace over the territory of more than one State or APEC member economy as identified
in the Appendix to the Annex;
7. "Price" means any fare, rate or charge for the carriage of passengers, baggage
and/or cargo (excluding mail) in air transportation, including surface transportation in
connection with international air transportation, if applicable, charged by airlines, including
their agents, and the conditions governing the availability of such fare, rate or charge;

8 . "Stop for non-traffic purposes" means a landing for any purpose other than taking
on or discharging passengers, baggage, cargo and/or mail in air transportation ;
9 . "Territory" means the land areas under the sovereignty, jurisdiction, authority,
administration, protection, or trusteeship of a Party, and the territorial waters adjacent
thereto; and

10 . "User charge" means a charge imposed on airlines for the provision of airport, air
navigation, or aviation security facilities or services including related services and
facilities .

Article 2
Grant of Rights

1 . Each Party grants to the other Parties the following rights for the conduct of
international air transportation by the airlines of the other Parties :
a . the right to fly across its territory without landing ;

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

c . the right, in accordance with the terms of their designations, to perform
scheduled and charter international air transportation between points on the
following route:
i . from points behind the territory of the Party designating the airline
via the territory of that Party and intermediate points to any point or
points in the territory of the Party granting the right and beyond ;

ii .for all-cargo service or services, between the territory of the Party
granting the right and any point or points; and

d . the rights otherwise specified in this Agreement .

2 . Each designated airline may on any or all flights and at its option :

a . operate flights in either or both directions ;

b . combine different flight numbers within one aircraft operation ;
c . serve behind, intermediate, and beyond points and points in the territories of
the Parties on the routes in any combination and in any order ;

d . omit stops at any point or points ;
e . transfer traffic from any of its aircraft to any of its other aircraft at any point
on the routes ;
f. serve points behind any point in its territory with or without change of
aircraft or flight number and hold out and advertise such services to the
public as through services ;
make stopovers at any points whether within or outside the territory of any
Party ;
h. carry transit traffic through any other Party's territory ; and
i . combine traffic on the same aircraft regardless of where such traffic
originates ;
without directional or geographic limitation and without loss of any right to carry traffic
otherwise permissible under this Agreement.

3 . The provisions of paragraph 2 of this Article shall apply subject to the requirement
that, with the exception of all-cargo services, the service serves a point in the territory of
the Party designating the airline .

4 . On any segment or segments of the routes above, any designated airline may
perform international air transportation without any limitation as to change, at any point on
the route, in type or number of aircraft operated ; provided that, with the exception of allcargo
services, in the outbound direction, the transportation beyond such point is a
continuation of the transportation from the territory of the Party that has designated the
airline and, in the inbound direction, the transportation to the territory of the Party that has
designated the airline is a continuation of the transportation from beyond such point .

5 . Nothing in this Agreement shall be deemed to confer on the airline or airlines of
one Party the right to take on board, in the territory of another Party, passengers, baggage,
cargo, or mail carried for compensation and destined for another point in the territory of
that other Party.
Article 3
Designation and Authorization

1 . 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 concerned Parties in
writing through diplomatic or other appropriate channels and to the Depositary .

2 . On receipt of such a designation, and of applications from the designated airline, in
the form and manner prescribed for operating authorizations and technical permissions,
each Party shall grant appropriate authorizations and permissions with minimum
procedural delay, provided that :

a . effective control of that airline is vested in the designating Party, its
nationals, or both ;
b .
the airline is incorporated in and has its principal place of business in the
territory of the Party designating the airline ;

c . the airline is qualified to meet the conditions prescribed under the laws,
regulations, and rules normally applied to the operation of international air
transportation by the Party considering the applicationn or applications ; and

d . the Party designating the airline is in compliance with the provisions set
forth in Article 6 (Safety) and Article 7 (Aviation Security) .

3 . Notwithstanding paragraph 2, a Party need not grant authorizations and permissions
to an airline designated by another Party if the Party receiving the designation determines
that substantial ownership is vested in its nationals .

4 . Parties granting operating authorizations in accordance with paragraph 2 of this
Article shall notify such action to the Depositary.

5 . Nothing in this Agreement shall be deemed to affect a Party's laws and regulations
concerning the ownership and control of airlines that it designates . Acceptance of such
designations by the other Parties shall be subject to paragraphs 2 and 3 of this Article.

Article 4
Revocation of Authorization

1 . Each Party may withhold, revoke, suspend, limit or impose conditions on the
operating authorizations or technical permissions of an airline designated by another Party
where:

a . effective control of that airline is not vested in the designating Party, its
nationals, or both;

b . the first Party determines that substantial ownership is vested in its
nationals;

c.  the airline is not incorporated or does not have its principal place of
business in the territory of the party designating the airline ;

d . the airline has failed to comply with the laws, regulations, and rules referred
to in Article 5 (Application of Laws) of this Agreement; or
e .  the other Party is not maintaining and administering the standards as set
forth in Article 6 (Safety) .

2.
Unless immediate action is essential to prevent further noncompliance with
subparagraphs 1(d) or 1(e) of this Article, the rights established by this Article shall be
exercised only after consultation with the Party designating the airline .

3 . A Party that has exercised its right to withhold, revoke, suspend, limit or impose
conditions on the operating authorizations of an airline or airlines in accordance with
paragraph 1 of this Article shall notify its action to the Depositary .

4 . This Article does not limit the rights of any Party to withhold, revoke, suspend,
limit or impose conditions on the operating authorization or technical permission of an
airline or airlines of other Parties in accordance with the provisions of Article 7 (Aviation
Security).

Article 5
Application of Laws

1 . While entering, within, or leaving the territory of one Party, its laws, regulations
and rules relating to the operation and navigation of aircraft shall be complied with by the
airlines designated by any other Party.

2 . While entering, within, or leaving the territory of one Party, its laws, regulations
and rules relating to the admission to or departure from its territory of passengers, crew or
cargo on aircraft (including regulations relating to entry, clearance, aviation security,
immigration, passports, customs and quarantine or, in the case of mail, postal regulations)
shall be complied with by, or on behalf of, such passengers, crew or cargo of the airlines of
any other Party.

3 . No Party shall give preference to its own or any other airline over a designated
airline of the other Parties engaged in similar international air transport in the application
of its customs, immigration and quarantine regulations .
4.
Passengers, baggage and cargo in direct transit through the territory of any Party
and not leaving the area of the airport reserved for such purpose shall not undergo any
examination except for reasons of aviation security, narcotics control, prevention of illegal
entry or in special circumstances .

Article 6
Safety

1 . Each Party shall recognize as valid, for the purpose of operating the air
transportation provided for in this Agreement, certificates of airworthiness, certificates of
competency, and licenses issued or validated by the other Parties and still in force,
provided that the requirements for such certificates or licenses at least equal the minimum
standards that may be established pursuant to the Convention . Each Party may, however,
refuse to recognize as valid for the purpose of flight above its own territory, certificates of
competency and licenses for its own nationals granted or validated by,another Party .

2. Each Party may request consultations with another Party concerning the safety
standards maintained by that other Party relating to aeronautical facilities, aircrews,
aircraft, and operation of the designated airlines . If, following such consultations, the first
Party finds that the other Party does not effectively maintain and administer safety
standards and requirements in these areas that at least equal the minimum standards that
may be established pursuant to the Convention, the other Party shall be notified of such
findings and the steps considered necessary to conform with these minimum standards, and
the other Party shall take appropriate corrective action . Each Party reserves the right to
withhold, revoke, suspend, or limit or impose conditions on the operating authorization or
technical permission of an airline or airlines designated by the other Party in the event the
other Party does not take such appropriate corrective action within a reasonable time.

Article 7
Aviation Security

1 . In accordance with their rights and obligations under international law, the Parties
reaffirm that their obligation to each other to protect the security of civil aviation against
acts of unlawful interference forms an integral part of this Agreement . Without limiting
the generality of their rights and obligations under international law, the Parties shall in
particular act in conformity with the provisions of the Convention on Offenses and Certain
Other Acts Committed on Board Aircraft, done at Tokyo on September 14, 1963, the
Convention for the Suppression of Unlawful Seizure of Aircraft, done at The Hague on
December 16, 1970, the Convention for the Suppression of Unlawful Acts against the
Safety of Civil Aviation, done at Montreal on September 23, 1971, and the Protocol for the
Suppression of Unlawful Acts of Violence at Airports Serving International Civil Aviation,
done at Montreal on February 24, 1988 .

2 . Each Party shall provide upon request of another Party all necessary assistance to
that other Party to prevent acts of unlawful seizure of civil aircraft and other unlawful acts
against the safety of such aircraft, of their passengers and crew, and of airports and air
navigation facilities, and to address any other threat to the security of civil air navigation .

3 . Each Party shall, in its relations with the other Parties, act in conformity with the
aviation security standards and appropriate recommended practices established by the
International Civil Aviation Organization and designated as Annexes to the Convention; it
shall require that operators of aircraft of its registry, operators of aircraft who have their
principal place of business or permanent residence in its territory, and the operators of
airports in its territory act in conformity with such aviation security provisions .

4. Each Party shall observe the security provisions required by the other Parties for
entry into, for departure from, and while within their respective territories and each Party
shall ensure that adequate measures are effectively applied within its territory to protect
aircraft and to inspect passengers, crew, and their baggage and carry-on items, as well as
cargo and aircraft stores, prior to and during boarding or loading. Each Party shall also
give positive consideration to any request from another Party for special security measures
to meet a particular threat .

5 . When an incident or threat of an incident of unlawful seizure of aircraft or other
unlawful acts against the safety of passengers, crew, aircraft, airports or air navigation
facilities occurs, the Parties shall assist each other by facilitating communications and other
appropriate measures intended to terminate rapidly and safely such incident or threat .

6 . When a Party has reasonable grounds to believe that another Party has departed
from the aviation security provisions of this Article, the aeronautical authorities of that
Party may request immediate consultations with the aeronautical authorities of the other
Party . Failure to reach a satisfactory agreement within 15 days from the date of such
request shall constitute grounds to withhold, revoke, suspend, limit, or impose conditions
on the operating authorization and technical permissions of an airline or airlines of the
other Party. When required by an emergency, a Party may take interim action prior to the
expiry of 15 days .

7 . Any Party that has exercised its right to withhold, revoke, suspend, or limit or
impose conditions on the operating authorization of an airline or airlines in accordance
with paragraph 6 of this Article shall notify such action to the Depositary.

Article 8
Commercial Opportunities

1 . The airlines of each Party shall have the right to :

a . establish offices in the territory of the other Parties for the promotion and
sale of air transportation ;
b . engage in the sale of air transportation in the territory of the other Parties
directly and, at the airlines' discretion, through their agents . The airlines
shall have the right to sell such transportation, and any person shall be free
to purchase such transportation, in local currency or in freely convertible
currencies ;
c . convert and remit to the territory of its incorporation, on demand, local
revenues in excess of sums locally disbursed. Conversion and remittance
shall be permitted promptly without restrictions or taxation in respect
thereof at the rate of exchange applicable to current transactions and
remittance on the date the carrier makes the initial application for
remittance; and

d . pay for local expenses, including purchases of fuel, in the territories of the
other Parties in local currency . At their discretion, the airlines of each Party
may pay for such expenses in the territory of the other Parties in freely
convertible currencies according to local currency regulation .

2 . The designated airlines of each Party shall have the right :

a . in accordance with the laws, regulations and rules of the other Parties
relating to entry, residence, and employment, to bring in and maintain in the
territories of the other Parties managerial, sales, technical, operational, and
other specialist staff required for the provision of air transportation ;

b . to perform their own ground-handling in the territory of the other Parties
("self-handling") or, at their option, select among competing agents for such
services in whole or in part. The rights shall be subject only to physical
constraints resulting from considerations of airport safety . Where such
considerations preclude self-handling, ground services shall be available on
an equal basis to all airlines ; charges shall be based on the costs of services
provided ; and such services shall be comparable to the kind and quality of
services as if self-handling were possible ; and
c . in operating or holding out the authorized services on the agreed routes, to
enter into cooperative marketing arrangements such as blocked-space, codesharing
or leasing arrangements, with :
an airline or airlines of any Party;
ii. an airline or airlines of any State or APEC member economy as
identified in the Appendix to the Annex that is not party to this
Agreement ; and
in .
a surface transportation provider of any State or APEC member
economy as identified in the Appendix to the Annex ;
provided that all participants in such arrangements hold the appropriate
authority and meet the requirements applied to such arrangements .

3 . Notwithstanding any other provision of this Agreement, airlines and indirect
providers of cargo transportation of the Parties shall be permitted without restriction to
employ in connection with international air transportation any surface transportation for
cargo to or from any points within or outside the territories of the Parties, including
transport to and from all airports with customs facilities, and including, where applicable,
the right to transport cargo in bond under applicable laws and regulations. Such cargo,
whether moving by surface or by air, shall have access to airport customs processing and
facilities. Airlines may elect to perform their own surface transportation or to provide it
through arrangements with other surface carriers, including surface transportation operated
by other airlines and indirect providers of cargo air transportation . Such intermodal cargo
services may be offered at a single, through price for the air and surface transportation
combined, provided that shippers are not misled as to the facts concerning such
transportation.

Article 9
Customs Duties and Charges

I . On arriving in the territory of one Party, aircraft operated in international air
transportation by the designated airline or airlines of any other Party, their regular
equipment, ground equipment, fuel, lubricants, consumable technical supplies, spare parts
(including engines), aircraft stores (including but not limited to such items of food,
beverages and liquor, tobacco and other products destined for sale to or use by passengers
in limited quantities during flight), and other items intended for or used solely in
connection with the operation or servicing of aircraft engaged in international air
transportation shall be exempt, on the basis of reciprocity, from all import restrictions,
property taxes and capital levies, customs duties, excise taxes, and similar fees and charges
that are (i) imposed by the national or central authorities, and (ii) not based on the cost of
services provided, provided that such equipment and supplies remain on board the aircraft .
2 . There shall also be exempt, on the basis of reciprocity, from the taxes, levies,
duties, fees and charges referred to in paragraph 1 of this Article, with the exception of
charges based on the cost of the service provided :

a . aircraft stores introduced into or supplied in the territory of a Party and
taken on board, within reasonable limits, for use on outbound aircraft of
airlines of the other Parties engaged in international air transportation, even
when these stores are to be used on a part of the journey performed over the
territory of the Party in which they are taken on board ;
b. ground equipment and spare parts (including engines) introduced into the
territory of a Party for the servicing, maintenance, or repair of aircraft of
airlines of the other Parties used in international air transportation ;

c . fuel, lubricants and consumable technical supplies introduced into or
supplied in the territory of a Party for use in an aircraft of airlines of the
other Parties engaged in international air transportation, even when these
supplies are to be used on a part ofthe journey performed over the territory
of the Party in which they are taken on board ; and
d . promotional and advertising materials introduced into or supplied in the
territory of one Party and taken on board, within reasonable limits, for use
on outbound aircraft of an airline of the other Parties engaged in
international air transportation, even when these stores are to be used on a
part of the journey performed over the territory of the Party in which they
are taken on board.

3 . Equipment and supplies referred to in paragraphs 1 and 2 of this Article may be
required to be kept under the supervision or control of the appropriate authorities .

4 . The exemptions provided by this Article shall also be available where the
designated airlines of one Party have contracted with another airline, which similarly
enjoys such exemptions from another Party or Parties, for the loan or transfer in the
territory of the other Party or Parties of the items specified in paragraphs I and 2 of this
Article .

Article 10
User Charges

1 . User charges that may be imposed by the competent charging authorities or bodiess
of each Party on the airlines of the other Parties shall be just, reasonable, not unjustly
discriminatory, and equitably apportioned among categories of users . In any event, any
such user charges shall be assessed on the airlines of the other Parties on terms not less
favorable than the most favorable terms available to any other airline at the time the
charges are assessed .

2 . User charges imposed on the airlines of the other Parties may reflect, but shall not
exceed, the full cost to the competent charging authorities or bodies of providing the
appropriate airport, airport environmental, air navigation, and aviation security facilities
and services at the airport or within the airport system . Such charges may include a
reasonable return on assets, after depreciation . Facilities and services for which charges
are made shall be provided on an efficient and economic basis .

3 . Each Party shall encourage consultations between the competent charging
authorities or bodies in its territory and the airlines using the services and facilities, and
shall encourage the competent charging authorities or bodies and the airlines to exchange
such information as may be necessary to permit an accurate review of the reasonableness of
the charges in accordance with the principles of paragraphs 1 . and 2 of this Article. Each
Party shall encourage the competent charging authorities to provide users with reasonable
notice of any proposal for changes in user charges to enable users to express their views
before changes are made .
4. No Party shall be held, in dispute resolution procedures pursuant to Article 14, to be
in breach of a provision of this Article, unless (i) it fails to undertake a review of the charge
or practice that is the subject of complaint by another Party within a reasonable amount of
time ; or (ii) following such a review it fails to take all steps within its power to remedy any
charge or practice that is inconsistent with this Article.

Article 11
Fair Competition

1 . Each Party shall allow a fair and equal opportunity for the designated airlines of all
Parties to compete in providing the international air transportation governed by this
Agreement.
2. ach Party shall allow each designated airline to determine the frequency and
capacity of the international air transportation it offers based upon commercial
considerations in the marketplace . Consistent with this right, no Party shall act to limit the
volume of traffic, frequency or regularity of service, or the aircraft type or types operated
by the designated airlines of the other Parties, except as may be required for customs,
technical, operational, or environmental reasons under uniform conditions consistent with
Article 15 of the Convention .
3 . No Party shall impose on another Party's designated airlines a first-refusal
requirement, uplift ratio, no-objection fee, or any other requirement with respect to
capacity, frequency or traffic .

4 . No Party shall require the filing of schedules, programs for charter flights, or
operational plans by airlines of the other Parties for approval, except as may be required on
a non-discriminatory basis to enforce the uniform conditions foreseen by paragraph 2 of
this Article . If a Party requires filings to enforce the uniform conditions as foreseen by
paragraph 2 of this Article or requires filings for informational purposes, it shall minimize
the administrative burdens of filing requirements and procedures on air transportation
intermediaries and on designated airlines of the other Parties .

5 . Subject to the provisions of this Agreement, no Party may apply its laws,
regulations, and rules to restrict the operation or sale ofthe charter international air
transportation provided for in this Agreement, except that the Parties may require
compliance with their own requirements relating to the protection of charter passenger
funds and charter passenger cancellation and refund rights .

6 . Pursuant to paragraph I of this Article, the airlines of each Party shall be entitled to
market their services on a fair and nondiscriminatory basis through computer reservations
systems (CRSs) used by travel agencies or travel companies in the territories of the Parties .
In addition, CRS vendors of each Party that are not in violation of the CRS rules, if any, that
apply in the territories of the Parties in which they are operating shall be entitled to nondiscriminatory, effective, and unimpaired access to market, maintain, operate and freely
make available their CRSs to travel agencies or travel companies in the territories of the
Parties . In particular, if any airline of any Party chooses to participate in a CRS offered to
travel agents or travel companies in the territory of another Party, that airline shall
participate in CRSs of that other Party operated in the territory of its incorporation as fully as
it does in any CRS in the territory of that other Party, unless it can show that the fees
charged by that CRS for participation in the territory of its incorporation are not
commercially reasonable (fees are presumed to be commercially reasonable if the fees
charged the airline for participation in the territory of its incorporation by any other CRS that
is used by travel agents or travel companies equal or exceed those charged by the CRS of the
other Party for such participation) . Airlines and CRS vendors of one Party shall not
discriminate against travel agencies or travel companies in that Party's territory because of
their use of a CRS of another Party .

Article 12
Pricing

Prices for international air transportation operated pursuant to this Agreement shall not be
subject to the approval of any Party, nor may they be required to be filed with any Party,
provided that a Party may require that they be filed for informational purposes for so long
as the laws of that Party continue to so require .

Article 13
Consultations

Each Party shall have the right to request consultations with one or more other Parties
relating to the implementation or application of this Agreement . Unless otherwise agreed,
such consultations shall begin at the earliest possible date, but not later than 60 days from
the date the other Party or Parties receive, through diplomatic or other appropriate
channels, a written request, including an explanation of the issues to be raised . When the
date for consultations has been agreed, the requesting Party shall also notify all other
Parties of the consultations and the issues to be raised. Any Party may attend, subject to the
consent of the Parties involved in the consultations . Once the consultations have been
concluded, all Parties shall be notified of the results .

Article 14
Settlement of Disputes

1 . Any dispute arising under this Agreement that is not resolved by a first round of
consultations may be referred by agreement of the Parties involved for decision to some
person or body . If the Parties involved do not so agree, the dispute shall at the request of
one Party be submitted to arbitration with respect to another Party in accordance with the
procedures set forth below. The Party submitting the dispute to arbitration shall notify all
other Parties of the dispute at the same time that it submits its arbitration request .
2. Arbitration shall be by a panel of three arbitrators to be constituted as follows :

a . within 30 days after the receipt of a request for arbitration, each Party to the
dispute shall name one arbitrator . Within 60 days after these two arbitrators
have been named, the Parties to the dispute shall by agreement appoint a
third arbitrator, who shall act as President of the arbitral panel ;

b . if either Party to the dispute fails to name an arbitrator, or if the third
arbitrator is not appointed in accordance with subparagraph (a) of this
paragraph, either Party may request the President of the Council of the
International Civil Aviation Organization to appoint the necessary arbitrator
or arbitrators within 30 days . If the President of the Council is of the same

a . b.

c . nationality as one of the Parties to the dispute, the most senior Vice
President who is not disqualified on that ground shall make the
appointment .

3 . Except as otherwise agreed by the Parties to the dispute, the arbitral panel shall
determine the limits of its jurisdiction in accordance with this Agreement and shall
establish its own procedural rules. The arbitral panel, once formed, may recommend
interim measures pending its final determination . At the direction of the arbitral panel or at
the request of either of the Parties to the dispute, a conference concerning the precise issues
to be arbitrated and the specific procedures to be followed shall be held on a date
determined by the arbitral panel, in no event later than 15 days after the third arbitrator has
been appointed . If the Parties to the dispute are unable to reach agreement on these issues,
the arbitral panel shall determine the precise issues to be arbitrated and the specific
procedures to be followed .

4 . Except as otherwise agreed by the Parties to the dispute or as directed by the panel,
the complaining Party shall submit a memorandum within 45 days of the time the third
arbitrator is appointed, and the reply of the responding Party shall be due 60 days after the
complaining Party submits its memorandum . The complaining Party may submit a
pleading in response to such reply within 30 days after the submission of the responding
Party's reply and the responding Party may submit a pleading in response to the
complaining Party's pleading within 30 days after the submission of such pleading. The
arbitral panel shall hold a hearing at the request of either Party or on its own initiative
within 15 days after the last pleading is due .

5 . The arbitral panel shall attempt to render a written decision within 30 days after
completion of the hearing or, if no hearing is held, after the date the last pleading is
submitted . The decision of the majority of the arbitral panel shall prevail .
6 . The Parties to the dispute may submit requests for clarification of the decision
within 15 days after it is rendered, and any clarification given shall be issued within 15
days of such request .

7 . In the case of a dispute involving more than two Parties, multiple Parties may
participate on either or both sides of a proceeding described in this Article . The procedures
set out in this Article shall be applied with the following exceptions :
with respect to paragraph 2(a), the Parties on each side of a dispute shall
together name one arbitrator; with respect to paragraph 2(b), if the Parties on one side of a dispute fail to name an arbitrator within the permitted time, the Party or Parties on the
other side of the dispute may utilize the procedures in paragraph 2(b) to
secure the appointment of an arbitrator ; and
with respect to paragraphs 3, 4, and 6, each of the Parties on either side of
the dispute•has the right to take the action provided to a Party .

8 . Any other Party that is directly affected by the dispute has the right to intervene in
the proceedings, under the following conditions :

a . a Party desiring to intervene shall file a declaration to that effect with the
arbitral panel no later than 10 days after the third arbitrator has been named ;

b . the arbitral panel shall notify the Parties to the dispute of any such
declaration, and the Parties to the dispute shall each have 30 days from the
date such notification is sent to submit to the arbitral panel any objection to
an intervention under this paragraph . The arbitral panel shall decide
whether to allow any intervention within 15 days after the date such
objections are due;

c . if the arbitral panel decides to allow an intervention, the intervening Party
shall notify all other Parties to the Agreement of the intervention, and the
arbitral panel shall take the necessary steps to make the documents of the
case available to the intervening Party, who may file pleadings of a type and
within a time limit to be set by the arbitral panel, withip the timetable set
out in paragraph 4 of this Article to the extent practical, and may participate
in any subsequent proceedings ; and
d . the decision of the arbitral panel will be equally binding upon the
intervening Party.

9 . All Parties to the dispute, including intervening Parties, shall, to the degree
consistent with their law, give full effect to any decision or award of the arbitral panel.

10 . The arbitral panel shall transmit copies of its decision or award to the Parties to the
dispute, including any intervening Parties . The arbitral panel shall provide to the
Depositary a copy of the decision or award, provided that appropriate treatment shall be
accorded to confidential business information .

11 . The expenses of the arbitral panel, including the fees and expenses of the
arbitrators, shall be shared equally by all of the Parties to the dispute, including intervening
Parties . Any expenses incurred by the President of the Council of the International Civil
Aviation Organization in connection with the procedures of paragraph 2(b) of this Article
shall be considered to be part of the expenses of the arbitral panel.

Article 15
Relationship to Other Agreements

Upon entry into force of this Agreement between one Party and any other Party, any
bilateral air transport agreement existing between them at the time of such entry into force
shall be suspended and shall remain suspended for so long as this Agreement shall remain
in force between them.

Article 16
Relationship to Annex

The Annex is an integral part of this Agreement and, unless expressly provided otherwise,
a reference to this Agreement includes a reference to the Annex relating thereto .

Article 17
Amendment

1 . Any Party may propose amendments to this Agreement by forwarding a proposed
amendment to the Depositary . Upon receiving such a proposal, the Depositary shall
forward the proposal to the other Parties through diplomatic or other appropriate channels .

2 . The Agreement may be amended in accordance with the following procedures :
a .  if agreed by at least a simple majority of all Parties as of the date of proposal
of the amendment, negotiations shall be held to consider the proposal ;
b .  unless otherwise agreed, the Party proposing the amendment shall host the
negotiations, which shall begin not more than 90 days after agreement is
reached to hold such negotiations . All Parties shall have a right to
participate in the negotiations ;
c . if adopted by at least a simple majority of the Parties attending such
negotiations, the Depositary shall then prepare and transmit a certified copy
of the amendment to the Parties for their acceptance ; ,

d . any amendment shall enter into force, as between the Parties which have
accepted it, 30 days following the date on which the Depositary has received
written notification of acceptance from a simple majority of the Parties ; and
e . following entry into force of such an amendment, it shall enter into force for
any other Party 30 days following the date the Depositary receives written
notification of acceptance from that Party;

3 . In lieu of the procedures set forth in paragraph 2, the Agreement may be amended
in accordance with the following procedures :

a . if all Parties as of the time of proposal of the amendment give written notice
through diplomatic or other appropriate channels to the Party proposing the
amendment of their consent to its adoption, the Party proposing the
amendment shall so notify the Depositary, which shall then prepare and
transmit a certified copy of such amendment to all of the Parties for their
acceptance; and

b . an amendment so adopted shall enter into force for all Parties 30 days
following the date on which the Depositary has received written notification
of acceptance from all of the Parties.

Article 18
Withdrawal
A Party may withdraw from this agreement by giving written notice of withdrawal to the
Depositary. The withdrawal shall be effective 12 months after receipt of the notice by the
Depositary, unless the Party withdraws its notice by written communication to the
Depositary prior to the end of the 12-month period .

Article 19
Responsibilities of the Depositary

1 . The original of this Agreement shall be deposited with the Government of New
Zealand, which is hereby designated as the Depositary of the Agreement .

2 . The Depositary shall transmit certified copies of this Agreement and any
amendments or protocols to all signatory and acceding States and all APEC member
economies which have agreed to be bound by this Agreement in accordance with the
Annex.
3 . The Depositary shall notify all signatory and acceding States and all APEC member
economies which have agreed to be bound by this Agreement in accordance with the
Annex of:

a . expressions of consent to be bound by this Agreement and any amendments
in accordance with Articles 20 and 17, and instruments of APEC member
economies indicating their agreement to be bound by this Agreement in
accordance with the Annex or their acceptance of any amendments in
accordance with Article 17 ;
b . the respective dates on which the Agreement enters into force in accordance
with Article 20, paragraphs 2, 3, and 6, and the respective dates on which
the rights and obligations described in paragraph 2 of the Annex become
effective following the deposit of a written instrument by APEC member
economies pursuant to paragraph I of the Annex ;
c . notifications regarding non-application of the Agreement received in
accordance with Article 20, paragraph 5 ;

d . any notification of withdrawal received in accordance with Article 18 ;
e . the convening of negotiations to consider amendments in accordance with
Article 17, paragraph 2(a) ;
f.  the respective dates on which an amendment enters into force in accordance
with Article 17, paragraphs 2(d), 2(e) and 3(b) ; and
notifications received pursuant to Article 4, paragraph 3 and Article 7,
paragraph 7 .

4. Following entry into force of this Agreement, the Depositary shall transmit a
certified true copy of this Agreement to the Secretary General of the United Nations for
registration and publication in accordance with Article 102 of the Charter of the United
Nations and to the Secretary General of the International Civil Aviation Organization in
accordance with Article 83 of the Convention . The Depositary shall likewise transmit
certified true copies of any amendments which enter into force .

5 . The Depositary shall maintain a centralized register of airline designations and
operating authorizations in accordance with Article 3, paragraphs I and 4 of this
Agreement .

6 . The Depositary shall make available to the Parties copies of any arbitral decision or
award issued under Article 14 of this Agreement .

Article 20
Entry into Force

1 . This Agreement shall be open for signature by Brunei Darussalam, Chile, New
Zealand, Singapore, and the United States of America .

2 . This Agreement shall enter into force on the date four of the States identified in
paragraph I of this Article have signed not subject to ratification, acceptance or approval, or
have deposited with the Depositary an instrument of ratification, acceptance or approval .
The signatories to this Agreement may permit services consistent with the terms of the
Agreement upon signature pending entry into force of the Agreement with respect to all of
the States identified in paragraph I of this Article .

3 . After this Agreement has entered into force in accordance with paragraph 2 of this
Article, it shall enter into force for a remaining signatory on the date the Depositary
receives the instrument of ratification, acceptance or approval of that signatory .
4 . After this Agreement has entered into force in accordance with paragraph 2 of this
Article, any State which is a party to the aviation security conventions listed in Article 7,
paragraph 1 may accede to this Agreement by deposit of an instrument of accession with
the Depositary.

5 . This Agreement shall not apply between an acceding State or an APEC member
economy which agrees to be bound by this Agreement in accordance with the Annex and
any Party to this Agreement or APEC member economy which, within 90 days of the date
of the Depositary's notification to the Parties of the deposit of the instrument of accession
or written instrument indicating agreement to be bound, notifies the Depositary in writing
that it shall not apply between that Party or such APEC member economy and such
acceding State or APEC member economy. Any signatory that expresses its consent to be
bound after the Agreement has entered into force pursuant to paragraph 2 of this Article,
upon expressing its consent to be bound, may notify the Depositary in writing that the
Agreement shall not apply between that signatory and any State that acceded to the
Agreement, or any APEC member economy that agreed to be bound by the Agreement in
accordance with the Annex, before the Agreement entered into force for that signatory .

6 . This Agreement shall enter into force as between the acceding State and all Parties
other than those which, pursuant to paragraph 5 of this Article, have notified the
Depositary of the non-application of the Agreement, on the 30th day after the expiry of the
90-day period referred to in paragraph 5 of this Article .

IN WITNESS WHEREOF, the undersigned, being duly authorized by their respective
Governments, have signed this Agreement .

DONE at Washington, this 1 $` day of May, 2001, in the English, Spanish and Malay
languages, each text being authentic. In case of divergence between the three language
texts, the English language text shall prevail .



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