THE REVIEW OF IMPLEMENTATION OF THE EIGHT RECOMMENDATIONS FOR MORE COMPETITIVE AIR SERVICES.

OVERVIEW ACTIONS TO DATE:

In Auckland in September 1999, APEC Economic Leaders supported implementation of the eight steps for more competitive air services, and the identification of further steps to liberalise air services in accordance with Bogor Goals.

At TPT-WG 17 it was agreed that:

¡P The Transportation Working Group is an appropriate forum for implementing the eight recommendations for more competitive air services, and identifying further steps to liberalise air services in accordance with the Auckland Leaders' Declaration.

And that, in accordance with the Declaration, the TPT WG would:

¡L Review implementation of each of the eight recommendations for more competitive air services, taking account of the benefits and difficulties of implementation: and

• Pursue further steps to liberalise air services on a voluntary basis, one option raised for consideration being the exploration of plurilateral arrangements by like-minded APEC economies, and another being the widening of the eight recommendations for more competitive air services.

The review of the eight recommendations and the pursuit of further steps to liberalise air services would be based on the following principles:

• That any outcome of air services liberalisation is in accordance with the Bogor goals;
• That progress towards liberalisation of international air services is inclusive and transparent; and
• That consideration be given at TPT-WG 18 as to whether APEC might co-operate with other multilateral fora or regional associations on liberalising air services.

TPT-WG 18 is to decide on next steps in light of consideration of the overview paper, the synopses of the eight recommendations, any additional "think pieces" and reports on further steps to liberalise air services.

Studies on the eight steps for more competitive air services were coordinated by the following economies

• Air Carrier Ownership and Control by New Zealand and Singapore

• Tariffs by Hong Kong, China

• Doing Business Matters by Chile

• Air Freight by Japan and Indonesia

• Multiple Airline Designation by Korea

• Charter Services by Brunei Darussalam and Thailand

• Airlines' Cooperative Arrangements by Canada ; and

• Market Access by United States

The study attracted 106 responses from 17 economies across all eight steps and provides a comprehensive database of experience in APEC of implementing the eight recommendations. This body of information, including the synopses, will be available to all APEC member economies and will provide a useful source of information for economies seeking to review their international air services policies.

THE WAY FORWARD

Ultimately the responsibility for implementing the eight steps for more competitive air services lies with the Government of each APEC member economy.

Both the survey conducted before TPT-WG 17 and the review conducted before TPT-WG 18 have revealed a high degree of common interest by APEC member economies in including more liberal provisions in their air services agreements. The review bearing out the findings of the survey that common interest in liberalisation is particularly strong in the areas of multiple designation, doing business matters, cooperative airline arrangements, charter services and air freight.

While the responses to the questionnaires circulated by the coordinators of the eight study groups provide clear evidence of implementation of the recommendations, the extent to which they have been implemented varies considerably. Views on the pace and direction for further liberalisation also vary.

This reflects the diversity of national interests within APEC and the differing priorities that they drive. A number of APEC economies have expressed their preference for remaining within the bilateral system, while a group of like-minded APEC member economies have met inter-sessionally to explore development of a plurilateral air services agreement. Others have expressed support for including some or all of the recommendations in the GATS.

This diversity of national priorities may limit the development of either a comprehensive plurilateral air services arrangement, or a comprehensive coordinated approach to liberalising bilateral air services arrangements between all APEC member economies across all eight recommendations at this time.

In the absence of unified implementation, the role of the TPT-WG as an appropriate forum for implementing the eight recommendations for more competitive air services, and identifying further steps to liberalise air services should be to encourage member economies to adhere to the principles that were set down by TPT-WG 17:

• That any outcome of air services liberalisation is in accordance with the Bogor goals; and
• That progress towards liberalisation of international air services is inclusive and transparent

without inhibiting the implementation of the eight steps supported by the Auckland Leaders' Declaration by any economy.

This could be done by an annual report to the TPT-WG from each economy on progress in implementing each of the eight steps either bilaterally, plurilaterally or multilaterally, which is open for comment by other APEC member economies. This will allow member economies to continue to benefit from experience within APEC of progress in liberalising international air services.

TPT-WG 17 also agreed that consideration be given at TPT-WG 18 as to whether APEC might co-operate with other multilateral fora or regional associations on liberalising air services.

This review and the survey that preceded it has been an open and inclusive process that has generated a great deal of information that would benefit aviation liberalisation debates in other multilateral or regional fora. TPT-WG 18 should discuss whether it iswe are willing to share both itsour experiences in international air services liberalisation and the information itwe hasve gathered as an APEC contribution to what is a global issue.

It is clear from submissions to coordinating economies, that APEC wide cooperation with other international fora to deliver comprehensive liberalisation outcomes is unlikely. However, it may be possible to develop an APEC wide position on some elements of individual recommendations as a contribution to the liberalisation debate that is occurring outside APEC. These elements should be clear from presentations from coordinating economies of their synopses to TPT-WG 18.

There is also sufficient support for some cooperation or possible coordination between individual APEC member economies in other fora when pursuing liberalisation on most of the recommendations.

TPT-WG 18 may wish to discuss whether, as these instances arise, they should be reported to TPT-WG as part of the implementation process for the eight recommendations.

ACTIONS

As part of its report at Agenda Item 4, Australia will propose:

• That the TPT-WG share itsput a proposal to the Special Air Services Meeting of the More Competitive Transportation Industry Steering Committee on 17 October in support of sharing our experiences and the information we have it has gathered to date in the survey and the review with other international forafora, as requested . ¡L A mechanism for individual economies to report annually on progress towards implementing the air services elements of the Auckland Leaders' Declaration to TPT-WG
• Australia will also Thatpropose that cooperation or coordination between APEC member economies in other fora on aviation liberalisation be included in any future reports to the TPT-WG on implementing the Auckland Leaders' Declaration and . ¡L That, from the presentations by coordinating economies on their synopses, the SC/CT develop a list of elements of individual recommendations which represent an APEC wide position.

This page was last updated on 1 Feb 2008