Aircraft Agreement

Aircraft Agreement

Summary of Aircraft Agreement

A product of the Tokyo Round of Multilateral Trade Negotiations, the Aircraft Agreement (known officially as the Agreement on Trade in Civil Aircraft) provides that sales of civil aircraft will be free of duty, effective January 1, 1980. The agreement also provides duty-free treatment for flight simulators, and similar equipment. Subassemblies specifically named in the agreement are free of duties as well. In addition, signatories are prohibited from pressuring airlines or aircraft users to buy from any particular supplier, and may not grant or deny landing rights in an attempt to influence purchasers. It is the articulated purpose of the agreement to permit aircraft buyers to select suppliers on the basis of technical and commercial factors. An aircraft committee was established to ensure compliance and consult on matters affecting the agreement. The United States adhered to the agreement by authority of the Trade Agreements Act of 1979.

Detais can be found in General Agreement on Tariffs and Trade).

(Main Author: William J. Miller)


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