15^th TRANSPORTATION WORKING GROUP
Santiago de Chile, April 19 - 23,1999

 TPT/WG/15/CT/SC/4.4

Third Meeting of Steering Committee on
More Competitive Transportation Industry (including Infrastructure)

 Report on Air Services

CHINESE TAIPEI

Report by Chinese Taipei on Implementation of Air Services Group Recommendations

Chinese Taipei's international air transportation policy recognizes that liberalization of international air transport services has become a global tendency, and accordingly has pursued opportunities to progressively remove barriers in the development of air transport services. At this moment, Chinese Taipei in its negotiations of air services agreements with other economies has made efforts in implementing the Air Services Group's recommendations on a case-by-case basis. Followings are Chinese Taipei's progress towards the implementation of the Air Services Group's recommendations:

Option 1: Air Carrier Ownership and Control

Chinese Taipei has adopted ICAO 1997 Air Transport Regulation Panel's formulation regarding broadened criteria for air carrier ownership and control in special cases where the bilateral partners are incapable of holding substantial ownership and control of their carriers due to lacking capital.

Option 2: Tariffs

Chinese Taipei has already revised regulations that required prior-approval of tariffs for international air transportation. New regulations require filing tariffs for records only. This practice applies to all international air carriers even though double-approval regime still remains in relevant bilateral agreements.

Option 3: Doing Business Matters

Chinese Taipei has adopted open policy on a non-discriminatory basis in almost all doing business matters, such as currency conversion and remittance of earnings, payment of local expenses, employment of non-national personnel, access to local services and sales and marketing of air service products, except that airport ramp ground handling service remains regulated due to physical constraint.

Option 4: Air Freight

Chinese Taipei has adopted dedicated air freight clauses in its bilateral air services negotiation. Such clause has been included in arrangements negotiated with Australia, Thailand, and the Philippines.

Option 5: Multiple Airline Designation

Chinese Taipei has adopted a multiple designation policy since 1988. By now, multiple designation or at least dual designation clause has been included in all of the bilateral air services arrangements concluded by Chinese Taipei with APEC economies.

Option 6: Charter Services

Chinese Taipei has simplified the formalities for filing international charter services. Charter services offered for the market not served by scheduled services have been favorably considered on the basis of reciprocity.

Option 7: Airlines' Cooperative arrangements

Chinese Taipei has included airlines' cooperative arrangements clause in the air services agreements negotiated with Australia, Canada, Malaysia, New Zealand, Thailand and the United States.

Option 8: Market Access

As an approach to progressively achieve more liberalized market access, Chinese Taipei has been promoting liberalization of the third and fourth freedoms in its negotiations of bilateral air services agreement with APEC economies.

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