Committee on Trade in Civil Aircraft - Minutes of the meeting held on 15 July 2015

MINUTES OF THE MEETING

HELD ON 15 july 2015

Chairperson: Mr Hsiao-Yin WU (Chinese Taipei)

1.          The Chair referred to the proposed agenda contained in document WTO/AIR/TCA/1. No requests were made by Signatories for "Other business" items. The Committee adopted the agenda contained in document WTO/AIR/TCA/1.

1.          revision of the product coverage annex of the 1979 agreement on trade in civil aircraft

2.          The Chair recalled that since November 2007, the Committee had been working to reach consensus on modifications to the Product Coverage Annex (PCA) of the Trade in Civil Aircraft Agreement ("TCA Agreement") to bring it into conformity with the Harmonized Coding and Description System that entered into force in 2007. At the previous meeting on 4 November 2014, the Secretariat, upon his request, had provided to Signatories, for their consideration, a draft of the Protocol amending the PCA to the TCA Agreement, identifying the relevant sub-headings and summarizing the status of Signatories' comments as of 29 October 2014. Following that meeting, the Secretariat had received some additional comments from Signatories, while the Chair had also held discussions bilaterally with delegates to listen to their thoughts and concerns on the matter in as transparent a manner as possible. The Chair believed there were almost no differences between Signatories' views on the proposed modifications of the PCA.

3.          Based on that understanding, the Chair had asked the Secretariat to consolidate the various comments into a revised draft version of the Protocol amending the PCA. By letter of 15 June 2015 he had requested all Signatories to comment on that final draft Protocol by cob 30 June 2015, indicating whether or not the changes proposed could be accepted. Most Signatories replied by cob 30 June 2015 that they agreed with the proposed changes. One Signatory indicated that it could not indicate its acceptance by 30 June but would do so by 15 July and indeed that Signatory sent its comments on 13 July which the Secretariat conveyed immediately to all Signatories for their reflection and asked Signatories to try to have a position on the latest comments by today's meeting.

4.          Finally, the Chair noted that he had asked the Secretariat to prepare for today's meeting a final version of the Protocol incorporating all comments received from all Signatories through 13 July 2015 as well as some modifications made by the Secretariat in the first paragraphs of the Protocol concerning the way and timeline of accepting the revised Protocol. The Chair asked Signatories whether there was consensus on the proposed changes and on the date that the new Protocol would enter into force.

5.          The United States stated that it had submitted some comments on 13 July, including some suggestions for the description of HS heading 3917; however, following discussions with other Signatories, the United States elected to withdraw that particular suggestion. Looking through at the draft distributed at the meeting, the United States confirmed that the revised Annex incorporated all the other US suggestions and could thus confirm that it found the content of this revised Annex acceptable.

6.          With regard to the draft Protocol's prefatory paragraphs relating to entry into force, the United States noted that it understood well the issue and what the proposed changes attempted to address; however, it would come back to the Committee in a few days after capital colleagues had the time to see the new language proposed.

7.          The European Union stated that, on a preliminary basis and pending on its internal decision-making procedure, it was also able to sign up to a consensus on the content of the revised Annex.

8.          As far as the draft Protocol's first preamble page was concerned, the European Union agreed with the United States that it would be good to have a couple of days to consult with capital and come back with a final response.

9.          Chinese Taipei stated that it also found acceptable the content of the revised Annex and would only need to consult capital regarding the small changes proposed in the prefatory language of the draft Protocol.

10.      Canada stated that the revised Annex was agreeable to it; as for the draft Protocol's prefatory language, Canada would check with capital and revert to the Committee shortly.

11.      Switzerland also confirmed that it needed a few days to confirm with capital the proposed changes in the draft Protocol.

12.      Japan stated that it could also join consensus on the context of the Annex and would need a few days to confirm its views on the suggested prefatory language.

13.      The Chair suggested then that Signatories agree, in principle, on the proposed modifications to the 2015 Protocol amending the Product Coverage Annex of the TCA Agreement, and that the Protocol would enter into force on 1 January 2016, subject to confirmation from the Signatories who had not yet received appropriate mandate to adopt the protocol. As soon as the Chair received from such Signatories that confirmation, he would immediately call another meeting of the Committee to formally adopt the proposed Protocol. He expected such meeting to take place in September. In the meantime, he suggested that the Secretariat circulate a clean version of the revised draft Protocol, with the changes accepted and without any track changes or explanations of the changes, reflecting Signatories' in principle agreement.

14.      Switzerland asked if there was a deadline for Signatories to come back to the Committee or whether the Committee would proceed to an ad referendum adoption.

15.      The Chair invited the Secretariat to respond to Switzerland.

16.      The Secretariat clarified that there was no deadline for Signatories to come back with their confirmation about the prefatory language, although Signatories were encouraged to reply as soon as possible so that they could adopt the draft Protocol at the next meeting of the Committee in November 2015.

17.      Egypt observed that if Signatories had no deadline and they could reply by the next meeting, and if some Signatories had further comments on the current draft Protocol it would be difficult to adopt it at the next regular meeting in November.

18.      The Chair invited the Secretariat to respond.

19.      The Secretariat recalled that the Chair had sent a fax on 15 June 2015 requesting all Signatories to provide final comments on the draft Protocol by 30 June 2015, with most Signatories having replied on time. One Signatory sent its comments on 13 July 2015. The Secretariat had forwarded immediately by email those last few comments to all Signatories for their consideration in view of today's meeting. The Secretariat understood that Signatories had already expressed their final views on the content of the proposed modifications in the revised Annex. The additional time requested today by some Signatories was only for them to consult their capitals regarding the suggested changes on the prefatory language of the first page of the draft Protocol, considering that such suggested changes were presented by the Secretariat for the first time in today's meeting.

20.      Egypt noted that it was not in a position to state if it accepted, in principle, the draft Protocol and would need to consult with capital which was still working on this issue and would need to send to capital this last version of the draft Protocol for consultation. As soon as capital colleagues returned with comments, Egypt would convey to the Secretariat any such comments and Signatories could discuss them on the next meeting.

21.      The European Union noted that it saw two different issues. First, Signatories needed a few days to consult capitals about the first prefatory page because it was new language and Signatories could confirm their agreement on that new language before the summer recess. Secondly, regarding the content of the revised Annex, the European Union agreed with the understanding of the Secretariat that there was emerging consensus on that.

22.      Egypt stated that it could not accept, in principle, the content of the revised Annex at the moment because it needed to send the document to capital for further comments. Egypt suggested that another meeting could be held in September.

23.      Switzerland agreed with the Egyptian proposal of having an intermediate meeting in September at which time Signatories could provide final comments on the proposed amendments and, if so, agree, in principle, on the 2015 Protocol. Thereafter, Signatories could come to the next regular meeting of November to adopt formally the 2015 Protocol.

24.      The Chair asked all Signatories if they could reply to him or to the Secretariat by 30 August 2015 in relation to any final comments on the proposed draft Protocol revising the PCA.

25.      Egypt asked if the deadline could be pushed back to end September 2015.

26.      The Chair then proposed that, following the meeting the Secretariat would circulate by fax the draft Protocol amending the PCA as it stood today and, all Signatories would confirm their positions on the proposed draft Protocol by 15 September 2015.

27.      The European Union regretted this further delay in the process. For its own internal decision-making process, it needed a consolidated document reflecting Signatories' common understanding on the content of the Annex and on the first page of the Protocol, on the basis of which it would make a proposal to the EU Council and would seek the appropriate mandate from Member States to adopt formally the revised Protocol amending the Annex.

28.      The Committee agreed to the Chair's proposal and took note of the statements made.

2.          other business

29.      There were no items under this agenda item.

30.      The United States stated that considering that 2015 was the fourth year of the HS2012 nomenclature and only one and a half years before the adoption and implementation of the HS2017 nomenclature in most national schedules, the Committee could consider agreeing to move ahead expeditiously with the HS2012 exercise for the Annex.

31.      The Committee took note of the US statement.

3.          date of next regular meeting

32.      The Committee confirmed that its next regular meeting would be held on Thursday, 5 November 2015, without excluding the need for the Chair to call a meeting of the Committee in September 2015 so that Signatories may agree, in principle, on the draft Protocol.

33.      The meeting was adjourned.

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