Understanding the Agreement on Trade in Civil Aircraft: A Legal Overview

Definition & Meaning

The Agreement on Trade in Civil Aircraft is a plurilateral agreement established in 1980 that focuses on the trade of civil aircraft and related products. This agreement is significant because it eliminates import duties on civil aircraft, their engines, parts, components, and flight simulators. It is one of the two main agreements signed by a limited number of World Trade Organization (WTO) members, aimed at promoting fair trade practices in the aviation sector.

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Real-world examples

Here are a couple of examples of abatement:

One example of the agreement in action is when a country like Canada imports commercial aircraft from the United States without incurring import duties, thanks to the provisions of this agreement. This arrangement helps both countries benefit from reduced costs and increased trade in the aviation sector.

(Hypothetical example) A small airline in Brazil could import flight simulators from France without paying tariffs, allowing them to enhance their training programs at a lower cost.

What to do if this term applies to you

If you are involved in the import or export of civil aircraft or related products, it is essential to understand the implications of this agreement. You may want to consult with a legal professional to ensure compliance with international trade regulations. Additionally, you can explore US Legal Forms for templates that can assist in managing the necessary documentation related to your transactions.

Quick facts

Attribute Details
Year Established 1980
Type of Agreement Plurilateral
Key Products Covered Civil aircraft, engines, parts, flight simulators
Import Duty Status Eliminated for covered products

Key takeaways

Frequently asked questions

The agreement covers civil aircraft, their engines, parts, components, and flight simulators.