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Issues covered by the WTO’s committees and agreements

SERVICES: SECTOR BY SECTOR

Air transport services

Air transport services are governed by a specific annex of the General Agreement on Trade in Services (GATS). The annex excludes from the agreement the largest part of air transport services: traffic rights and services directly related to traffic. These services are nevertheless subject to a regular review by the Council for Trade in Services, with a view to considering the possible further application of the GATS to the sector. A first review took place in 2000-2003. The second review is ongoing. In preparation for the second review, the WTO Secretariat has developed the QUASAR database and methodology to assess, on a universal scale, the degree of liberalization achieved by the air transport sector.

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Uruguay Round    back to top

In the Uruguay Round, negotiations focused on aircraft repair and maintenance services, computer reservation services, selling and marketing of air transport services.
  

Current commitments and exemptions    back to top

All commitments and exemptions to most-favoured nation treatment (i.e. non-discrimination). Search for air transport services in the commitments for services by country.

For consolidated information on countries’ commitments and exemptions on air transport services go to the services database. You can use this database to retrieve the services schedule for a WTO member, or to compare services commitments across members. The database does not include data on current negotiations.
  

Current negotiations    back to top

Air transport services are included in the new services negotiations, which began in January 2000.

In November 2005, WTO members collectively identified their sectoral and modal objectives for negotiations on air transport described in document TN/S/23 (para 17, page 20).

In March 2006, a group of members prepared plurilateral request calling for extensive commitments in five sub-sectors, namely aircraft repair and maintenance, selling and marketing, computer reservation services, ground handling services and airport operation services. These include full commitments (when technically feasible) on Mode1 (services supplied from one country to another) and on Mode 2 (consumers or firms making use of a service in another country) and elimination of economic needs tests (a test using economic criteria to decide whether the entry into the market of a foreign firm is warranted and restrictions on foreign equity participation for Mode 3 (a foreign company setting up subsidiaries or branches to provide services in another country).
  

Review of air transport    back to top

Air transport is subject to a specific review process. Paragraph 5 of the Air Transport Annex states that “the Council for Trade in Services shall review periodically, and at least every five years, developments in the air transport sector and the operation of the annex with a view to considering the further application of the Agreement to the sector”.
  

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  Animation: Air traffic video

(Full screen view, double click on the video)

View of the total air traffic worldwide over a 24 hour period, projected onto a world map and reduced to 1 minute. Each yellow point represents a plane.
  

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  Research and analysis

 

> Working paper: Liberalization of Air Transport Services and Passenger Traffic (December 2008)

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First review    back to top

The first review was held between 2000 and 2003. Air Transport and the GATS: 1995-2000 gathers together the extensive background documentation produced by the Secretariat on the developments in the sector for the period 1995-2000. A report by the Council of Trade in Services includes submissions made by members and observers during the first review as well as its proceedings.

  

Second Review   back to top

The second review was formally opened in September 2005.

  

Some useful links and other resources   back to top

Links to other international organizations that deal with air transport:

International Civil Aviation Organization

International Air Transport Association

  

Documents on air transport services   back to top

Search Documents Online
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> comprehensive help on Documents Online

  • Reviews of the GATS Annex on air transport services (Document code varies)     > search
  • Background notes by the Secretariat on air transport services (Document code varies)     > search
  • General documents on air transport services (Document code S/* and keyword “air transport”)     > search

You can perform more sophisticated searches from the Documents Online search facility by defining multiple search criteria such as document symbol (i.e. code number), full text search or document date.

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  Publications

    

   > Air Transport and the GATS: 1995-2000
In preparation for the second air transport review mandated by the General Agreement on Trade in Services (GATS) Annex on Air Transport Services, the WTO Secretariat gathered together in this publication the documentation produced in 2000-2001 for the first review.

   

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