Agreement

between the European Community and the Republic of Panama on certain aspects of air services

THE EUROPEAN COMMUNITY,

of the one part, and

THE REPUBLIC OF PANAMA,

of the other part,

(hereinafter referred to as the Parties),

NOTING that bilateral air service agreements have been signed between several Member States of the European Community and the Republic of Panama containing provisions contrary to European Community law,

NOTING that the European Community has exclusive competence with respect to several aspects that may be included in bilateral air service agreements between Member States of the European Community and third countries,

NOTING that under European Community law Community air carriers established in a Member State have the right to non-discriminatory access to air routes between the Member States of the European Community and third countries,

HAVING REGARD to the agreements between the European Community and certain third countries providing for the possibility for the nationals of such third countries to acquire ownership in air carriers licensed in accordance with European Community law,

RECOGNISING that certain provisions of the bilateral air service agreements between Member States of the European Community and the Republic of Panama, which are contrary to European Community law, must be brought into conformity with it in order to establish a sound legal basis for air services between the European Community and the Republic of Panama and to preserve the continuity of such air services,

NOTING that it is not a purpose of the European Community, as part of these negotiations, to increase the total volume of air traffic between the European Community and the Republic of Panama, to affect the balance between Community air carriers and air carriers of the Republic of Panama, or to negotiate amendments to the provisions of existing bilateral air service agreements concerning traffic rights,

HAVE AGREED AS FOLLOWS:

Article 1

General Provisions

1. For the purposes of this Agreement, "Member States" shall mean Member States of the European Community. "LACAC Member States" shall mean Member States of the Latin American Civil Aviation Commission.

2. References in each of the agreements listed in Annex I to nationals of the Member State that is a party to that agreement shall be understood as referring to nationals of the Member States of the European Community.

3. References in each of the agreements listed in Annex I to air carriers or airlines of the Member State that is a party to that agreement shall be understood as referring to air carriers or airlines designated by that Member State.

Article 2

Designation, Authorisation and Revocation

1. The provisions in paragraphs 2 and 3 of this Article shall supersede the corresponding provisions in the Articles listed in Annex II(a) and (b) respectively, in relation to the designation of an air carrier by the Member State concerned, its authorisations and permissions granted by the Republic of Panama, and the refusal, revocation, suspension or limitation of the authorisations or permissions of the air carrier, respectively. The provisions in paragraphs 4 and 5 of this Article shall supersede the corresponding provisions in the articles listed in Annex II(a) and (b) respectively, in relation to the designation of an air carrier by the Republic of Panama, its authorisations and permissions granted by the Member State, and the refusal, revocation, suspension or limitation of the authorisations or permissions of the air carrier, respectively.

2. On receipt of a designation by a Member State, the Republic of Panama shall grant the appropriate authorisations and permissions with minimum procedural delay, provided that:

(i) the air carrier is established, under the Treaty establishing the European Community, in the territory of the designating Member State and has a valid operating licence in accordance with European Community law;

(ii) effective regulatory control of the air carrier is exercised and maintained by the Member State responsible for issuing its air operators certificate and the relevant aeronautical authority is clearly identified in the designation; and

(iii) the air carrier is owned, directly or through majority ownership, and it is effectively controlled by Member States and/or nationals of Member States, or by other states listed in Annex III and/or nationals of such other states.

3. The Republic of Panama may refuse, revoke, suspend or limit the authorisations or permissions of an air carrier designated by a Member State where:

(i) the air carrier is not established, under the Treaty establishing the European Community, in the territory of the designating Member State or does not have a valid operating licence in accordance with European Community law; or

(ii) effective regulatory control of the air carrier is not exercised or not maintained by the Member State responsible for issuing its air operators certificate, or the relevant aeronautical authority is not clearly identified in the designation; or

(iii) the air carrier is not owned and effectively controlled directly or through majority ownership by Member States and/or nationals of Member States, or by other states listed in Annex III and/or nationals of such other states; or

(iv) the air carrier is already authorised to operate under a bilateral agreement between the Republic of Panama and another Member State and the Republic of Panama demonstrates that, by exercising traffic rights under this Agreement on a route that includes a point in that other Member State, it would be circumventing restrictions on traffic rights imposed by that other agreement; or

(v) the air carrier holds an air operators certificate issued by a Member State and there is no bilateral air services agreement between the Republic of Panama and that Member State, and traffic rights to that Member State have been denied to the air carrier designated by the Republic of Panama.

In exercising its right under this paragraph, the Republic of Panama shall not discriminate between Community air carriers on the grounds of nationality.

4. On receipt of a designation by the Republic of Panama, a Member State shall grant the appropriate authorisations and permissions with minimum procedural delay, provided that:

(i) the air carrier is established in the Republic of Panama; and

(ii) the Republic of Panama has and maintains effective regulatory control of the air carrier and is responsible for issuing its air operators certificate; and

(iii) the air carrier is owned and effectively controlled directly or through majority ownership by LACAC Member States and/or nationals of LACAC Member States.

5. A Member State may refuse, revoke, suspend or limit the authorisation or permissions of an air carrier designated by the Republic of Panama where:

(i) the air carrier is not established in the Republic of Panama; or

(ii) effective regulatory control of the air carrier is not exercised or not maintained by the Republic of Panama or the Republic of Panama is not responsible for issuing its air operators certificate; or

(iii) the air carrier is not owned and effectively controlled directly or through majority ownership by LACAC Member States and/or nationals of LACAC Member States; or

(iv) the air carrier is already authorised to operate under a bilateral agreement between the Member State and another LACAC Member State and the Member State demonstrates that, by exercising traffic rights under this Agreement on a route that includes a point in that other LACAC Member State, it would be circumventing restrictions on the traffic rights imposed by that other agreement.

Article 3

Safety

1. The provisions in paragraph 2 of this Article shall complement the Articles listed in Annex II(c).

2. Where a Member State has designated an air carrier whose regulatory control is exercised and maintained by another Member State, the rights of the Republic of Panama under the safety provisions of the agreement between the Member State that has designated the air carrier and the Republic of Panama shall apply equally in respect of the adoption, exercise or maintenance of safety standards by that other Member State and in respect of the operating authorisation of that air carrier.

Article 4

Taxation of aviation fuel

1. The provisions in paragraphs 2 and 3 of this Article shall complement the corresponding provisions in the Articles listed in Annex II(d).

2. Notwithstanding any other provision to the contrary, nothing in each of the agreements listed in Annex II(d) shall prevent Member States from imposing, on a non-discriminatory basis, taxes, levies, duties, fees or charges on fuel supplied in its territory for use in an aircraft of a designated air carrier of the Republic of Panama that operates between a point in the territory of that Member State and another point in the territory of that Member State or in the territory of another Member State.

3. Notwithstanding any other provision to the contrary, nothing in each of the agreements listed in Annex II(d) shall prevent the Republic of Panama from imposing on a non-discriminatory basis taxes, levies, duties, fees or charges on fuel supplied in its territory for use in an aircraft of a designated air carrier of a Member State that operates between a point in the territory of the Republic of Panama and another point in the territory of the Republic of Panama or in the territory of another LACAC Member State.

Article 5

Tariffs for carriage

1. The provisions in paragraphs 2 and 3 of this Article shall complement the Articles listed in Annex II(e).

2. The tariffs to be charged by the air carrier(s) designated by the Republic of Panama under an agreement listed in Annex I containing a provision listed in Annex II(e) for carriage wholly within the European Community shall be subject to European Community law. European Community law is applied on a non-discriminatory basis.

3. The tariffs to be charged by the air carrier(s) designated by a Member State under an agreement listed in Annex I containing a provision listed in Annex II(e) for carriage between the Republic of Panama and another LACAC Member State shall be subject to Panamanian law concerning price leadership and applied on a non-discriminatory basis.

Article 6

Compatibility with competition rules

1. Notwithstanding any other provision to the contrary, nothing in each of the agreements listed in Annex I shall (i) favour the adoption of agreements between undertakings, decisions by associations of undertakings or concerted practices that prevent, distort or restrict competition; (ii) reinforce the effects of any such agreement, decision or concerted practice; or (iii) delegate to private economic operators the responsibility for taking measures that prevent, distort or restrict competition.

2. The provisions contained in the agreements listed in Annex I that are incompatible with paragraph 1 of this Article shall not be applied.

Article 7

Annexes to the Agreement

The Annexes to this Agreement shall form an integral part thereof.

Article 8

Revision or amendment

The Parties may, at any time, revise or amend this Agreement by mutual consent.

Article 9

Entry into force

This Agreement shall enter in force when the Parties have notified each other in writing that their respective internal procedures necessary for its entry into force have been completed.

Article 10

Termination

1. In the event that an agreement listed in Annex I is terminated, all provisions of this Agreement that relate to the agreement listed in Annex I concerned shall terminate at the same time.

2. In the event that all agreements listed in Annex I are terminated, this Agreement shall terminate at the same time.

IN WITNESS WHEREOF, the undersigned, being duly authorised, have signed this Agreement.

Done at Panama City in duplicate, on this first day of October in the year two thousand and seven in the Bulgarian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovene, Spanish and Swedish languages. In case of divergence the Spanish text shall prevail over the other language texts.

За Европейската общнoст

Por la Comunidad Europea

Za Evropské společenství

For Det Europæiske Fællesskab

Für die Europäische Gemeinschaft

Euroopa Ühenduse nimel

Για την Ευρωπαϊκή Κοινότητα

For the European Community

Pour la Communauté européenne

Per la Comunità europea

Eiropas Kopienas vārdā

Europos bendrijos vardu

Az Európai Közösség részéről

Għall-Komunità Ewropea

Voor de Europese Gemeenschap

W imieniu Wspólnoty Europejskiej

Pela Comunidade Europeia

Pentru Comunitatea Europeană

Za Európske spoločenstvo

Za Evropsko skupnost

Euroopan yhteisön puolesta

För Europeiska gemenskapen

+++++ TIFF +++++

+++++ TIFF +++++

За Република Панама

Por la República de Panamá

Za Panamskou republiku

For Republikken Panama

Für die Republik Panama

Panama Vabariigi nimel

Για τη Δημοκρατία του Παναμά

For the Republic of Panama

Pour la République du Panama

Per la Repubblica di Panama

Panamas Republikas vārdā

Panamos Respublikos vardu

A Panamai Köztársaság részéről

Għar-Repubblika tal-Panama

Voor de Republiek Panama

W imieniu Republiki Panamy

Pela República do Panamá

Pentru Republica Panama

Za Panamskú republiku

Za Republiko Panamo

Panaman tasavallan puolesta

För Republiken Panama

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ANNEX I

List of agreements referred to in Article 1 of this Agreement

(a) Air service agreements between the Republic of Panama and Member States of the European Community which, at the date of signature of this Agreement, have been concluded, signed and/or are being applied provisionally:

- Air Transport Agreement between the Federal Republic of Germany and the Republic of Panama, done at Panama on 13 December 1999, hereinafter referred to as the "Panama-Germany Agreement" in Annex II,

- Agreement between the Governments of the Republic of Panama and the Kingdom of Belgium on air services, done at Panama City on 12 January 1966, hereinafter referred to as the "Panama-Belgium Agreement" in Annex II,

- Agreement between the Kingdom of Spain and the Republic of Panama, done at Panama City on 7 August 2001, hereinafter referred to as the "Panama-Spain Agreement" in Annex II,

- Protocol of the Meeting between the aeronautical delegations of the Government of the Italian Republic and the Government of the Republic of Panama, done at Rome on 11 November 1970, hereinafter referred to as the "Panama-Italy Protocol" in Annex II,

- Agreement between the Republic of Panama and the Kingdom of the Netherlands concerning air services between and beyond their respective territories, initialled as Annex II to the Memorandum of Understanding done in The Hague on 7 June 1995, hereinafter referred to as the "Panama-Netherlands Agreement" in Annex II,

- Agreement between the Government of the Kingdom of Great Britain and Northern Ireland and the Government of the Republic of Panama, initialled as Annex B to the Memorandum of Understanding signed in London on 26 August 1997, hereinafter referred to as the "Panama-United Kingdom Agreement" in Annex II.

(b) Air service agreements and other arrangements initialled or signed between the Republic of Panama and Member States of the European Community which, at the date of signature of this Agreement, have not yet entered into force and are not being applied provisionally.

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ANNEX II

List of Articles in the Agreements listed in Annex I and referred to in Articles 2 to 5 of this Agreement

(a) Designation:

- Article 3 of the Panama-Germany Agreement,

- Article 3 of the Panama-Spain Agreement,

- Article 4 of the Panama-Netherlands Agreement,

- Article 4 of the Panama-United Kingdom Agreement;

(b) Refusal, Revocation, Suspension or Limitation of Authorisations or Permissions:

- Article 3 of the Panama-Germany Agreement,

- Article 9 of the Panama-Belgium Agreement,

- Article 4 of the Panama-Spain Agreement,

- Article 5 of the Panama-Netherlands Agreement,

- Article 5 of the Panama-United Kingdom Agreement;

(c) Regulatory control:

- Article 12 of the Panama-Germany Agreement,

- Article 11 of the Panama-Spain Agreement;

(d) Taxation of Aviation Fuel:

- Article 6 of the Panama-Germany Agreement,

- Article 7 of the Panama-Belgium Agreement,

- Article 5 of the Panama-Spain Agreement,

- Article 10 of the Panama-Netherlands Agreement,

- Article 8 of the Panama-United Kingdom Agreement;

(e) Tariffs for Carriage:

- Article 10 of the Panama-Germany Agreement,

- Article 5 of the Panama-Belgium Agreement,

- Article 7 of the Panama-Spain Agreement,

- Article 6 of the Panama-Netherlands Agreement,

- Article 7 of the Panama-United Kingdom Agreement.

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ANNEX III

List of other States referred to in Article 2 of this Agreement

(a) The Republic of Iceland (under the Agreement on the European Economic Area);

(b) The Principality of Liechtenstein (under the Agreement on the European Economic Area);

(c) The Kingdom of Norway (under the Agreement on the European Economic Area);

(d) The Swiss Confederation (under the Agreement between the European Community and the Swiss Confederation on Air Transport).

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