Agreement between the European Community and the Republic of Paraguay on certain aspects of air services
Date: 2007-02-22
Institutions: European Community, Paraguay
Subjects: Paraguay, agreement (EU), air transport

11.5.2007

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Official Journal of the European Union

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

AGREEMENT

THE EUROPEAN COMMUNITY,

of the one part, and

THE REPUBLIC OF PARAGUAY,

of the other part,

(hereinafter referred to as the Parties),

NOTING that bilateral air service agreements have been concluded between several Member States of the European
Community and the Republic of Paraguay 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 Paraguay, 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 Paraguay 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 Paraguay, to affect the balance between Community
air carriers and air carriers of the Republic of Paraguay, or to negotiate amendments to the provisions of existing bilateral
air service agreements concerning traffic rights,

HAVE AGREED AS FOLLOWS:

Article 1

General provisions

Article 2

Designation, authorisation and revocation

For the purposes of this Agreement, ‘Member States’ shall
‘LACAC
the Latin

1.
mean Member States of
Member States’
American Civil Aviation Commission.

shall mean Member States of

the European Community,

1.
The provisions in paragraphs 2 and 3 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
and
concerned,
by the Member State
permissions granted by the Republic of Paraguay, and in
relation to the refusal, revocation, suspension or limitation of
the authorisations or permissions of the air carrier, respectively.

authorisations

its

References in each of the agreements listed in Annex I to
2.
nationals of the Member State that is a party to the agreement
concerned 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 the
agreement concerned shall be understood as referring to air
carriers or airlines designated by that Member State.

The provisions in paragraphs 4 and 5 shall supersede the corre-
sponding 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 Paraguay,
its authorisations and permissions
granted by the Member State, and in relation to the refusal,
revocation, suspension or limitation of the authorisations or
permissions of the air carrier, respectively.

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

agreement between the Republic of Paraguay and that
Member State, and traffic rights to that Member State
have been denied to the air carrier designated by the
Republic of Paraguay.

(i) the air carrier is established, under the Treaty establishing
the European Community,
in the territory of the desig-
nating Member State and has a valid Operating Licence
in accordance with European Community law; and

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

(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 aero-
nautical authority is clearly identified in the designation;
and

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

(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.

The Republic of Paraguay may refuse, revoke, suspend or
the authorisations or permissions of an air carrier

3.
limit
designated by a Member State where:

(i) the air carrier is not established, under the Treaty estab-
lishing the European Community,
in the territory of the
designating Member State or does not have a valid
Operating
European
Licence
Community law; or

accordance with

in

(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 aero-
nautical 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 Paraguay and
another Member State and the Republic of Paraguay
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
services
Member State and there

is no bilateral air

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

and

(ii) the Republic of Paraguay has and maintains effective regu-
the air carrier and is responsible for

latory control of
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 Paraguay where:

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

or

(ii) effective regulatory control of the air carrier is not exercised
or not maintained by the Republic of Paraguay or the
Republic of Paraguay is not responsible for issuing its Air
Operators Certificate; or

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

directly or
Member States
States; or

agreement between the Member State

(iv) the air carrier is already authorised to operate under a
bilateral
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
circumventing
restrictions on the traffic rights imposed by that other
agreement.

it would be

State,

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Article 3

Safety

The provisions in paragraph 2 shall complement

1.
Articles listed in Annex II(c).

the

2. Where a Member State has designated an air carrier whose
is exercised and maintained by another
regulatory control
Member State, the rights of the Republic of Paraguay under
the safety provisions of the agreement between the Member
State that has designated the air carrier and the Republic of
Paraguay 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

The provisions in paragraph 2 and 3 shall complement
1.
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
in the
Republic of Paraguay that operates between a point
territory of
in the
that Member State and another point
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 Paraguay from imposing, on a non-
discriminatory basis, taxes,
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 Paraguay and another point in
the territory of the Republic of Paraguay or in the territory of
another LACAC Member State.

levies, duties,

Article 5

Tariffs for carriage

The provisions in paragraph 2 and 3 shall complement

1.
the Articles listed in Annex II(e).

The tariffs to be charged by the air carrier(s) designated by
2.
the Republic of Paraguay 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 shall be applied on
a non-discriminatory basis.

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

Article 6

Compatibility with competition rules

Notwithstanding any other provision to the contrary,

1.
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 compe-
tition.

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

Article 7

Annexes to this 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 and provisional application

This Agreement shall enter in force when the Parties have
their respective internal
its entry into force have been

1.
notified each other in writing that
procedures necessary for
completed.

2.
Notwithstanding paragraph 1, the Parties agree to apply
this Agreement provisionally from the first day of the month
following the date on which the Parties have notified each other
of the completion of the procedures necessary for this purpose.

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Agreements and other arrangements between Member
3.
States and the Republic of Paraguay which, at
the date of
signature of this Agreement, have not yet entered into force
and are not being applied provisionally are listed in Annex
I(b). This Agreement shall apply to all such agreements and
arrangements upon their entry into force or provisional appli-
cation.

Article 10

Termination

Should one of

1.
the agreements listed in Annex I be
terminated, all provisions of this Agreement relating to the
agreement concerned listed in that Annex shall terminate at
the same time.

Should all agreements listed in Annex I be terminated, this

2.
Agreement shall terminate at the same time.

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

Done at Brussels in duplicate, on the twenty-second day of
February in the year two thousand and seven,
in the Czech,
Danish, Dutch, English, Estonian, Finnish, French, German,
Greek, Hungarian, Italian, Latvian, Lithuanian, Maltese, Polish,
Portuguese, Slovak, Slovenian, Spanish and Swedish languages.
In case of divergence the Spanish text shall prevail over the
other language texts.

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За Европейската общност

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

За Република Парагвай

Por la República del Paraguay
Za Paraguayskou republiku
For Republikken Paraguay
Für die Republik Paraguay
Paraguay Vabariigi nimel
Για τη Δημοκρατία της Παραγoυάης
For the Republic of Paraguay
Pour la République du Paraguay
Per la Repubblica del Paraguay
Paragvajas Republikas vārdā
Paragvajaus Respublikos vardu
A Paraguayi Köztársaság részéről
Għar-Repubblika tal-Paragwaj
Voor de Republiek Paraguay
W imieniu Republiki Paragwaju
Pela República do Paraguai
Pentru Republica Paraguay
Za Paraguajskú republiku
Za Republiko Paragvaj
Paraguayn tasavallan puolesta
För Republiken Paraguay

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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 Paraguay 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 Republic of Paraguay and the Federal Republic of Germany, signed in Bonn

on 26 November 1974, hereinafter referred to as ‘Paraguay–Germany Agreement’ in Annex II,

— Agreement between the Republic of Paraguay and the Kingdom of Belgium on scheduled air transport, signed in
Asuncion on 1 September 1972, as modified by the Agreed Record signed in Brussels on 3 September 1982,
hereinafter referred to as ‘Paraguay–Belgium Agreement’ in Annex II,

— Agreement between the Government of the Republic of Paraguay and the Government of Spain on air transport,
signed in Madrid on 12 May 1976, as supplemented by the Agreed Record signed in Asuncion on 2 November
1978, by the Agreed Record signed in Asuncion on 1 September 1985, and by the Agreed Record signed in
Madrid on 6 October 1992, hereinafter referred to as ‘Paraguay–Spain Agreement’ in Annex II,

— Agreement between the Republic of Paraguay and the Kingdom of the Netherlands concerning scheduled air
transport, signed in The Hague on 7 February 1974, hereinafter referred to as ‘Paraguay–Netherlands’ Agreement
in Annex II;

(b) Air service agreements and other arrangements initialled or signed between the Republic of Paraguay 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
— Draft Agreement between the Government of the Republic of Paraguay and the Government of the Italian
Republic on air services between their respective territories, initialled in Rome on 18 July 1985 as Annex to
the Agreed Record of Consultations, hereinafter referred to as ‘Draft Paraguay–Italy Agreement’
in Annex II,
— Draft Agreement between the Government of the Republic of Paraguay and the Government of the United
Kingdom of Great Britain and Northern Ireland concerning air services, initialled in Asuncion on 28 August
1998 as Annex B to the Agreed Protocol between the aeronautical authorities of the Republic of Paraguay and the
United Kingdom, hereinafter referred to as ‘Draft Paraguay–United Kingdom Agreement’ in Annex II.

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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 Paraguay-Germany Agreement,
— Article 3 of the Paraguay-Belgium Agreement,
— Article 3 of the Paraguay-Spain Agreement,
— Article 4 of the Draft Paraguay-Italy Agreement,
— Article 3 of the Paraguay-Netherlands Agreement,
— Article 4 of the Draft Paraguay-United Kingdom Agreement;

(b) Refusal, revocation, suspension or limitation of authorisations or permissions:

— Article 4 of the Paraguay-Germany Agreement,
— Article 4 of the Paraguay-Belgium Agreement,
— Article 4 of the Paraguay-Spain Agreement,
— Article 5 of the Draft Paraguay-Italy Agreement,
— Article 4 of the Paraguay-Netherlands Agreement,
— Article 5 of the Draft Paraguay-United Kingdom Agreement;

(c) Regulatory control:

— Article 10 of the Draft Paraguay-Italy Agreement,
— Article 14 of the Draft Paraguay-United Kingdom Agreement;

(d) Taxation of aviation fuel:

— Article 6 of the Paraguay-Germany Agreement,
— Article 5 of the Paraguay-Belgium Agreement,
— Article 5 of the Paraguay-Spain Agreement,
— Article 6 of the Draft Paraguay-Italy Agreement,
— Article 5 of the Paraguay-Netherlands Agreement,
— Article 8 of the Draft Paraguay-United Kingdom Agreement;

(e) Tariffs for carriage within the European Community:
— Article 9 of the Paraguay-Germany Agreement,
— Article 9 of the Paraguay-Belgium Agreement,
— Article 6 of the Paraguay-Spain Agreement,
— Article 8 of the Draft Paraguay-Italy Agreement,
— Article 9 of the Paraguay-Netherlands Agreement,
— Article 7 of the Draft Paraguay-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).