RESTRICTEDWORLD TRADE
ORGANIZATIONS/C/W/199
2 October 2001
(01-4768)
Council for Trade in Services Original:  English
COMMUNICATION FROM THE INTERNATIONAL
CIVIL AVIATION ORGANIZATION
Cooperation between the International Civil Avia tion Organization (ICAO) and the World Trade
Organization (WTO-OMC)
The following communication is circulated at the request of the International Civil Aviation
Organization to Members of the Council for Trade in Services, in relation to Agenda item 2.(F) of
WTO/AIR/1635 at the Council's meeting of 4 October 2001.S/C/W/199
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27/09/01
COOPERATION BETWEEN THE INTERNATIONAL CIVIL AVIATION ORGANIZATION
(ICAO) AND THE WORLD TRADE ORGANIZATION (WTO-OMC)
(Presented by the ICAO Secretariat)
1. INTRODUCTION
1.1 The Secretary General of ICAO, in a letter addressed to the Director-General of the
WTO-OMC on 12 February 2001, made a proposal to develop a memorandum of understanding
(MOU) or an agreement between ICAO and the WTO-OMC.
1.2 This paper addresses the need for such an agreement between our two organizations and
identifies some of the potential elements to be in cluded in the proposed MOU that should help define
their respective roles.
2. COOPERATION BETWEEN ICAO AND THE WTO-OMC
2.1 In June 1997, ICAO applied formally to the WTO-OMC for observer status in meetings
dealing with air transport and, in July 1998, the Counc il for Trade in Services (CTS) agreed to grant
ICAO this status on an ad hoc basis.  It should be emphasized that there exists full cooperation
between the ICAO and WTO-OMC Secretariats on a working level.  The need for a more formalized
set of working arrangements stems not from any existing difficulties but from the fact that the
respective roles need to be recognized within the mandates of each organization.
2.2 ICAO is recognized by the United Nations as the specialized agency in civil aviation and has
an all-embracing mandate in civil aviation matters.  ICAO has primary responsibility in matters of
safety and security which it considers has strong linkage with the economic regulation of air transport.
Issues of liberalization in air transport frequently have a direct relationship with safety and security
and therefore should be dealt with in the appropriate forum.  This is particularly necessary whensudden and important developments take place in the areas of security and safety that have a direct or
indirect bearing on operations of international air transport;  an agreement between the WTO-OMC
and ICAO would facilitate a timely response to such developments.
2.3 The Agreement between the two organizations would also clarify potential areas of overlap in
air transport matters and ensure that there is no duplication of efforts.  ICAO has used such anapproach and methodology to formalize relations with other organizations that cooperate with it, for
example, the International Mobile Satellite Organization (IMSO), the International Criminal Police
Organization (INTERPOL) and the Interstate Aviation Committee (IAC).
S/C/W/199
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3. POTENTIAL ELEMENTS FOR INCLUSION IN THE PROPOSED MOU
3.1 The ICAO Secretariat has identified some potential elements for the proposed MOU that
should lay some common grounds for cooperation acceptable to both organizations.  Should an
agreement be developed between the two Secretar iats, the draft would be circulated to the
Representatives of the Council of ICAO for their comments, in accordance with the establishedprocedure.  Potential elements for inclusion in an MOU include the following:
(a) ICAO's mandate given by the Chicago Convention in ensuring the safe and orderly
development of international civil aviation throughout the world;
(b) cognizance by both organizations of the legal responsibilities of provision of services
under the Chicago Convention;
(c) ICAO's role and responsibilities in safety and security, and its advisory role on air
transport economic matters which is used and relied on by many States, especiallydeveloping countries;
(d) ICAO's discharging of international responsibility for environmental protection
activities;
(e) the interlinkage in a globalized, competitive and liberalized world between regulation
of safety, security and economics of air transport, as well as ICAO's role andexpertise in economic matters that should be taken into account when any changes to
existing regulatory arrangements are being contemplated;
(f) ICAO's active support to, and promotion of, regulatory liberalization within a context
of safe and orderly development (the MOU would regularize this relationship so that
the two organizations would work in close harmony);
(g) the commitment by both organizations to encourage actively, at the national level,
coordination between the aviation sector and authorities responsible for trade in
services on matters concerning any proposed regulatory change as well as the
harmonization of regulatory obligations;
(h) the mutual extension of invitations to attend as Observers, in accordance with
respective rules of procedure, any suitable meetings dealing with trade in air transport
services, in order to further cooperation on matters of common interest, and on
making related meeting documentation available; and
(i) the exchange of necessary informat ion and documentation between the two
Secretariats.
4. CONCLUSION
4.1 ICAO will continue to play an active role in its pursuit of safeguarded liberalization of
international air transport, with particular em phasis in addressing the growing convergence of
economic, safety, security, liability and environmen tal issues.  ICAO believes that a more formalized
cooperation between our two organizations will ensure that the process of liberalization is pursued in
an orderly and safe manner to the benefit of all parties in the aviation community.
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