./.WORLD TRADE
ORGANIZATIONWT/L/374
21 November 2000
(00-4948)
REPORT (2000) OF THE COMMITTEE ON
TRADE IN CIVIL AIRCRAFT
1. This report is submitted under Article 8.2 of the Agreement on Trade in Civil Aircraft
(hereinafter the "Agreement") and Article IV.8 of the Marrakesh Agreement Establishing the WorldTrade Organization.  It sets out the activities of the Committee since December 1999.
2. As of 1 November 2000, there were 26 Signatories to the Agreement:  Bulgaria, Canada, the
European Communities, Austria, Belgium, Denmark, France, Germany, Greece, Ireland, Italy,
Luxembourg, the Netherlands, Portugal, Spain, Swed en, the United Kingdom, Egypt, Georgia, Japan,
Latvia, Macau, Norway, Romania, Switzerland and the United States. Those WTO Members withobserver status in the Committee are: Argentina, Australia, Bangladesh, Brazil, Cameroon, Colombia,
the Czech Republic, Estonia, Finland, Gabon, Ghana, India, Indonesia, Israel, Korea, Malta,
Mauritius, Nigeria, Poland, Singapore, the Slovak Republic, Sri Lanka, Trinidad and Tobago, Tunisia
and Turkey.  In addition, China, Chinese Taipei, the Russian Federation and Saudi Arabia have
observer status in the Committee.  The IMF and UNCTAD are also observers.
3. Since December 1999, the Committee has held two regular meetings, on 14 June 2000 and 15
November 2000.
4. The agenda and minutes for the June 2000 meeting can be found in document TCA/M/10.  At
this meeting, the Committee again discussed the status of the Agreement in the WTO framework, but
Signatories remained unable to adopt the Draft Protocol (1999) Rectifying the Agreement on Trade inCivil Aircraft that was proposed by the Chairperson in April 1999.  The Committee also discussed the
draft revised Protocol (2000) Amending the Annex to the Agreement on Trade in Civil Aircraft
relating to the update of HS headings to the HS 1996 and the extension of product coverage of the
Product Coverage Annex to include "aircraft ground maintenance simulators",  and instructed the
Secretariat to produce, for consideration by the Technical Sub-Committee, a revised draft document on
the basis of these discussions and of any submissi ons received from Signatories until 31 July 2000.  In
addition, the Committee discussed the United States Aviation Investment and Reform Act for the
Twenty-First Century, the European Communities' regulation on aircraft engine noise; Belgian
aircraft industry supports; and the certification of large civil aircraft.  The Committee also discussed
the system of "end-use" customs administration of several Signatories, including the proposal by one
Signatory concerning the definition of "civil" vs. "military" aircraft based on initial certification rather
than registration or the identity of the purchaser.  The Chairperson reminded Signatories that theyshould, by 1 October 2000, submit information to update the information concerning civil/military
identification for domestic customs purposes contained in document AIR/TSC/W/49.  The following
matters were raised under "Other Business":  government support for the development of large civil
aircraft; and certification in Europe of small civil aircraft.
5. At its November 2000 meeting, the Committee again discussed the status of the Agreement in
the WTO framework.  While Signatories remained unable to adopt the Draft Protocol (1999)
Rectifying the Agreement on Trade in Civil Aircraft proposed by the Chairperson in April 1999, they
were of the view that it was useful for the Committee to continue to revert to this item with a view to
making progress.WT/L/374
Page 2
6. Also at this meeting, the Committee discussed the draft revised Protocol (2000) Amending
the Annex to the Agreement on Trade in Civil Aircraft relating to the update of HS headings to the HS
1996 and the extension of product coverage of the Product Coverage Annex to include "aircraft ground
maintenance simulators".  In connection with the extension of product coverage, the Committee
considered the proposal by one Signatory to amend Article 1.1 of the Agreement.  While Signatories
were unable formally to adopt the Protocol (2000)  Amending the Annex to the Agreement on Trade in
Civil Aircraft, or to agree to amend Article 1.1 of the Agreement, the Committee decided to urge
Signatories to apply, on an interim basis, duty- free treatment to the goods of the proposed product
coverage Annex outlined in WTO document TCA/W/5/Rev.3, including aircraft ground maintenance
simulators.  In addition, Signatories agreed to in struct the Secretariat to produce, for review by
Signatories, a further draft revision of the Product Co verage Annex incorporatin g changes to the HS that
will enter into effect on 1 January 2002.
7. Also at the November meeting, the Chairperson reminded Signatories that had not already
done so that they should update the information concerning civil/military identification for domestic
customs purposes contained in document AIR/TSC/W/49.  Furthermore, the Committee discussed the
system of "end-use" customs administration of se veral Signatories, including the proposal by one
Signatory concerning the definition of "civil" vs. "military" aircraft based on initial certification.  TheCommittee addressed the utility of statistical reporting of trade data by Signatories, and the Chairperson
urged Signatories to endeavour to submit such in formation by 1 May 2001 so that Signatories could
have a basis for considering the utility of submittin g such data.  The Committee also addressed:  the
European Communities' regulation on aircraft engine noise; the certification in Europe of United
States civil aircraft; government support for the development of large civil aircraft; and Belgianaircraft industry supports.  The following matters  were raised under "Other Business": the United
States Aviation Investment and Reform Act for th e Twenty-First Century; and the Canada/Brazil
aircraft subsidies dispute.
8. The Technical Sub-Committee of the Committee met twice during the period under review,
on 24 October 2000 and 14 November 2000, in order to discuss the update of Harmonized System(HS) headings in the Product Coverage Annex and extension of product coverage of the Agreement on
the basis of the draft revised Protocol and Product Coverage Annex in TCA/W/5/Rev.1 and
TCA/W/5/Rev.2.  The Chairperson's notes concer ning the discussions of the Technical Sub-
Committee are contained in documents TCA/TSC/2 and TCA/TSC/3.
9. The Sub-Committee of the Committee on Trade in Civil Aircraft did not meet during the
period under review.
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