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Agreement between the Government of Canada and the Government of the Kingdom of Morocco on Air Transport [1986] CATSer 16 (7 May 1986)

E103215 - CTS 1986 No. 20

AGREEMENT BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE KINGDOM OF MOROCCO ON AIR TRANSPORT

The Government of Canada and the Government of the Kingdom of Morocco hereinafter referred to as the Contracting Parties,

BEING parties to the Convention on International Civil Aviation opened for signature at Chicago, on the 7th day of December, l944,

DESIRING to conclude an Agreement on air transport between and beyond their respective territories,

HAVE AGREED AS FOLLOWS:

ARTICLE I

For the purpose of this Agreement, unless otherwise stated:

(a) "Aeronautical Authorities" means, in the case of Canada, the Minister of Transport and the Canadian Transport Commission and, in the case of Morocco the Direction de l'Air, Ministère des Travaux publics et des Communications, or in both cases, any other authority or person empowered to perform the functions now exercised by the said authorities;

(b) "Agreed services" means scheduled air services performed by aircraft on the routes specified in the Annex to this Agreement for the transport of passengers, cargo and mail, separately or in combination;

(c) "Agreement" means this Agreement, the Annex attached thereto, and any amendments thereto;

(d) "Convention" means the Convention on International Civil Aviation opened for signature at Chicago on the 7th day of December, 1944;

(e) "Designated airline" means an airline which has been designated and authorized in accordance with Articles III and IV of this Agreement;

(f) "Tariffs" shall be deemed to include all rates, tolls, fares, charges for transportation, conditions of carriage, classifications, rules, regulations, practices and services related thereto, but excluding remuneration and conditions for the carriage of mail;

(g) "Territory", "Air Service", "International Air Service", "Airline" and "Stop for non-traffic purposes" have the meaning respectively assigned to them in Articles 2 and 96 of the Convention.

ARTICLE II

1. Each Contracting Party grants to the other Contracting Party the following rights for the conduct of international air services by the airline designated by the other Contracting Party:

(a) to fly without landing across the territory of the other Contracting Party;

(b) to make stops in the said territory for non-traffic purposes; and

(c) to make stops in the said territory at the points named on the routes specified in the Annex for the purpose of taking up and discharging international traffic in passengers, cargo and mail, separately or in combination.

2. Nothing in paragraph 1 of this Article shall be deemed to confer on the airlines of one Contracting Party the privilege of taking up, in the territory of the other Contracting Party, passengers, cargo and mail carried for remuneration or hire and destined for another point in the territory of that other Contracting Party.

ARTICLE III

Each Contracting Party shall have the right to designate, by diplomatic note, an airline to operate the agreed services on any route specified in the Annex for such a Contracting Party and to substitute another airline for that previously designated.

ARTICLE IV

1. Following receipt of a notice of designation or of substitution pursuant to Article III, the aeronautical authorities of the other Contracting Party shall, consistent with its laws and regulations, grant with a minimum of delay to an airline so designated the appropriate authorizations to operate agreed services for which that airline has been designated.

2. Upon receipt of such authorizations the airline may begin at any time to operate the agreed services, partly or in whole, provided that the tariffs established in accordance with the provisions of Article XII of this Agreement are in force in respect of such services.

ARTICLE V

1. The aeronautical authorities of each Contracting Party shall have the right to withhold the authorizations referred to in Article IV with respect to an airline designated by the other Contracting Party, to revoke such authorizations or impose on them conditions, temporarily or permanently:

(a) in the event of failure by such airline to qualify before the aeronautical authorities of that Contracting Party under the laws and regulations applied by these authorities in conformity with the Convention;

(b) in the event of failure by such airline to comply with the laws and regulations of that Contracting Party;

(c) in the event that they are not satisfied that substantial ownership and effective control of the airline are vested in the Contracting Party designating the airline or its nationals; and

(d) in case the airline otherwise fails to operate in accordance with the conditions prescribed under this Agreement.

2. Unless immediate action is essential to prevent infringement of the laws and regulations referred to above, the rights enumerated in paragraph 1 of this Article shall be exercised only after consultations with the aeronautical authorities of the other Contracting Party. Unless otherwise agreed by the Contracting Parties, such consultations shall begin within a period of sixty (60) days from the date of the other Contracting Party receives the request.

ARTICLE VI

1. The laws, regulations and procedures of one Contracting Party relating to the admission to or departure from its territory of aircraft engaged in international air navigation or to the operation and navigation of such aircraft shall be complied with by the designated airline of the other Contracting Party upon entrance into, departure from and while within the said territory.

2. The laws and regulations of a Contracting Party respecting entry, clearance, transit, immigration, passports, customs and quarantine shall be complied with by the designated airline of the other Contracting Party and its crews, passengers, cargo and mail upon transit of, admission to, departure from and while within the territory of such a Contracting Party.

ARTICLE VII

1. Certificates of airworthiness, certificates of competency and licences issued or rendered valid by one Contracting Party and still in force, shall be recognized as valid by the other Contracting Party for the purpose of operating the agreed services on the routes specified in the Annex to this Agreement provided that such certificates or licences were issued or rendered valid pursuant to and in conformity with the standards established under the Convention. Each Contracting Party reserves the right, however, to refuse to recognize, for the purpose of flights above its own territory, certificates of competency and licences granted to its own nationals by the other Contracting Party.

2. If the privileges or conditions of the licences or certificates referred to in paragraph 1 above, issued by the aeronautical authorities of one Contracting Party to any person or designated airline operating the agreed services on the routes specified in the Annex to this Agreement, should permit a difference from the standards established under the Convention, and which difference has been filed with the International Civil Aviation Organization, the aeronautical authorities of the other Contracting Party may request consultations with the aeronautical authorities of that Contracting Party with a view to satisfying themselves that the practice in question is acceptable to them. Failure to reach a satisfactory agreement in matters regarding flight safety will constitute grounds for the application of Article V; in other cases Article XVIII applies.

ARTICLE VIII

1. The charges imposed in the territory of either Contracting Party for the use of airports and other aviation facilities by the aircraft of the designated airline of the other Contracting Party shall not be higher than those imposed on aircraft of a national airline engaged in similar international air services.

2. Neither of the Contracting Parties shall give a preference to its own or any other airline over the airline of the other Contracting Party in the Application of its customs, immigration, quarantine and similar regulations or in the use of airports, airways and air traffic services and associated facilities under its control.

ARTICLE IX

1. In the operation by the airline of either Contracting Party of the air services described in the Annex to this Agreement, the interests of the airline of the other Contracting Party shall be taken into consideration so as not to affect unduly the services which the latter provides on all or part of the same routes.

2. The air services made available to the public by the airline operating under this Agreement shall bear a close relationship to the requirements of the public for such services.

3. Services provided by a designated airline under the present Agreement shall retain as their primary objective the provision of capacity adequate to the traffic demands between the country of which such airline is a national and the countries of ultimate destination of the traffic. The right to embark or disembark on such services, international traffic destined for and coming from third countries at a point or points on the routes specified in the Annex to this Agreement, shall be applied in accordance with the general principles of orderly development to which both Contracting Parties subscribe and shall be subject to the general principle that capacity should be related:

(a) to traffic requirements between the country of origin and the countries of ultimate destination of the traffic;

(b) to the requirements of through airline operations; and

(c) to the traffic requirements of the area through which the airline passes, after taking account of local and regional services.

4. The airlines of both Contracting Parties shall, in keeping with the provisions of the preceding paragraphs of this Article, have the freedom to determine the capacity, frequency, scheduling and type of aircraft to be employed in connection with services over any of the routes specified in the Annex. In the event that one of the Contracting Parties believes that the operations conducted by an airline of the other Contracting Party have been inconsistent with the standards and principles set forth in this Article, it may request consultations pursuant to Article XVI of this Agreement for the purpose of reviewing the operations in question to determine whether they are in conformity with said standards and principles.

ARTICLE X

1. The aeronautical authorities of both Contracting Parties shall provide each other with monthly statements of statistics on a quarterly calendar basis, including all information required to determine the amount of traffic carried over the routes specified in the Annex and the initial origins and final destinations of such traffic.

2. The details of the statistical data to be provided and the methods by which such data shall be provided by one Party to the other shall be agreed upon between the aeronautical authorities and implemented not later than three (3) months after the designated airline of one or both of the Contracting Parties commence operations, in whole or in part, of agreed services accorded by the Annex of this Agreement.

3. Failure to reach a satisfactory agreement regarding the supply of statistics may, at the discretion of either Contracting Party, constitute grounds for the application of Article XVI or Article XVIII of this Agreement.

ARTICLE XI

1. Each Contracting Party shall on a basis of reciprocity exempt the designated airline of the other Contracting Party to the fullest extent possible under its national law from import restrictions, customs duties, excise taxes, inspection fees and other national duties and charges on aircraft, fuel, lubricating oils, consumable technical supplies, spare parts including engines, regular aircraft equipment, aircraft stores, including beverages, tobacco and other products destined for sale to passengers in limited quantities during the flight, and other items intended for use or used solely in connection with the operation or servicing of aircraft of the designated airline of such other Contracting Party operating the agreed services, as well as usual publicity material distributed without charge by that designated airline.

2. The immunities granted by this Article shall apply to the items referred to in paragraph 1 of this Article:

(a) introduced into the territory of one Contracting Party by or on behalf of the designated airline of the other Contracting Party;

(b) retained on board aircraft of the designated airline of one Contracting Party upon arriving in or leaving the territory of the other Contracting Party;

(c) taken on board aircraft of the designated airline or airlines of one Contracting Party in the territory of the other Contracting Party and intended for use in operating the agreed services;

whether or not such items are used or consumed wholly within the territory of the Contracting Party granting the immunity, provided such items are not alienated in the territory of the said Contracting Party.

ARTICLE XII

1. The tariffs on any agreed service shall be established at reasonable levels, due regard being paid to all relevant factors including cost of operation, reasonable profit, characteristics of service (such as standards of speed and accommodation) and, where it is deemed suitable, the tariffs of other airlines for any part of the specified route. These tariffs shall be fixed in accordance with the following provisions of this Article.

2. The tariffs referred to in paragraph 1 of this Article shall be agreed upon between the designated airlines of the Contracting Parties; such agreement shall be reached, whenever possible, through the rate-fixing procedures established by the international body which formulates proposals in this matter or, if this is not possible, the designated airlines shall in their consultations take into account any such tariffs so established.

3. The tariffs so agreed shall be submitted to the aeronautical authorities of the Contracting Parties at least forty-five (45) days before the proposed date of their introduction; in special cases, a shorter period may be accepted by the aeronautical authorities. If within thirty (30) days from the date of submission the aeronautical authorities of one Contracting Party have not notified the aeronautical authorities of the other Contracting Party that they are dissatisfied with the tariff submitted to them, such tariff shall be considered to be acceptable and shall come into effect on the expiration of the forty-five (45) day period mentioned above. In the event that a shorter period for the submission of a tariff is accepted by the aeronautical authorities, they may also agree that the period for giving notice of dissatisfaction be less than thirty (30) days.

4. If a tariff cannot be established in accordance with the provisions of paragraph 2 above, or, if during the period applicable in accordance with paragraph 3 above a notice of dissatisfaction has been given, the aeronautical authorities of the Contracting Parties shall endeavour to determine the tariff by agreement between themselves.

5. If the aeronautical authorities cannot agree on any tariff submitted to them under paragraph 3 of this Article or on the determination of any tariff under paragraph 4, the dispute shall be settled in accordance with the provisions of Article XVIII of the present Agreement.

6. (a) No tariff shall come into force if the aeronautical authorities of either Contracting Party are dissatisfied with it except under the provisions of paragraph 3 of Article XVIII of the present Agreement.

(b) When tariffs have been established in accordance with the provisions of this Article, those tariffs shall remain in force until new tariffs have been established in accordance with the provisions of this Article or Article XVIII of the present Agreement.

ARTICLE XIII

1. The designated airline of one Contracting Party shall have the right to maintain representations in the territory of the other Contracting Party. These representations may include commercial, operational and technical staff as required to perform the commercial, operational and technical duties of the designated airline. The staff requirements for such representations may, at the option of the designated airline, be satisfied by any competent airline, organization or company operating in the territory of the other Contracting Party or by its own personnel.

2. Each designated airline shall have the right to engage in the sale of air transportation in the territory of the other Contracting Party directly and, at its discretion through its agents. Such airline shall have the right to sell such transportation, and any person shall be free to purchase such transportation in the currency of that territory or in freely convertible currencies of other countries.

3. Each Contracting Party grants to the airline of the other Contracting Party the right of free transfer of funds obtained in the normal course of its operations. Such transfers shall be effected on the basis of the foreign exchange market rates for currency payments prevailing at the time of the transfer and shall be subject only to the respective foreign currency regulations applicable to all countries in like circumstances. The transfer of funds shall not be subject to any charges except those normally collected by bank for such operations.

ARTICLE XIV

Income or profits from the operation of aircraft in international traffic derived by an airline, which is resident for purposes of income taxation in the territory of one Contracting Party shall be exempt from any income tax and all other taxes on profits imposed by the government of the other Contracting Party.

ARTICLE XV

The provisions set out in Articles VI-VIII, XI, XIII and XIV of this Agreement shall be applicable also to charter and other non-scheduled flights operated by an airline of one Contracting Party into or from the territory of the other Contracting Party in accordance with the respective regulations of this latter Contracting Party, and to the airline operating such flights.

ARTICLE XVI

1. In a spirit of close cooperation, the aeronautical authorities of the Contracting Parties shall consult each other from time to time with a view to ensuring the implementation of, and satisfactory compliance with, the provisions of this Agreement and of its Annex.

2. Such consultations shall begin within a period of sixty (60) days of the date of receipt of such a request.

ARTICLE XVII

If either of the Contracting Parties considers it desirable to modify any provision of this Agreement, it may request consultations with the other Contracting Party. Such consultations, which would be between aeronautical authorities and which may be through discussion or by correspondence, shall begin within a period of sixty (60) days from the date of the request. Any modification agreed pursuant to such consultations shall come into force when it has been confirmed by an exchange of diplomatic notes.

ARTICLE XVIII

1. If any dispute irises between the Contracting Parties relating to the interpretation or application of this Agreement, the Contracting Parties shall in the first place endeavour to settle it by negotiation.

2. If the Contracting Parties fail to reach a settlement by negotiation, they may agree to refer the dispute for decision to some person or body, or either Contracting Party may submit the dispute for decision to a Tribunal of three arbitrators, one to be nominated by each Contracting Party and the third to be appointed by the two arbitrators. Each of the Contracting Parties shall nominate an arbitrator within a period of sixty (60) days from the date of receipt by either Contracting Party front the other of a notice through diplomatic channels requesting arbitration of the dispute and the third arbitrator shall be appointed within a further period of sixty (60) days. If either of the Contracting Parties fails to nominate an arbitrator within the period specified, or if the third arbitrator is not appointed within the period specified, the President of the Council of the International Civil Aviation Organization may be requested by either Contracting Party to appoint an arbitrator or arbitrators as the case requires. In all cases the third arbitrator shall be a national of a third State, shall act as President of the Tribunal and shall determine the place where arbitration will be held.

3. The Contracting Parties undertake to comply with any decision given under paragraph 2 of this Article.

4. The expenses of the Tribunal will be shared equally between the Contracting Parties.

5. If and so long as either Contracting Party fails to comply with a decision given under paragraph 2 of this Article, the other Contracting Party may limit, withhold or revoke any rights or privileges which it has granted by virtue of this Agreement to the Contracting Party in default or to the designated airline in default.

ARTICLE XIX

Either Contracting Party may at any time give notice in writing through diplomatic channels to the other Contracting Party of its decision to terminate this Agreement: such notice shall be communicated simultaneously to the International Civil Aviation Organization. The agreement shall terminate one (1) year after the date of receipt of the notice by the other Contracting Party, unless the notice to terminate is withdrawn by agreement before the expiry of this period. In the absence of acknowledgement of receipt by the other Contracting Party, the notice shall be deemed to have been received fourteen (14) days after the receipt of the notice by the International Civil Aviation Organization.

ARTICLE XX

The present Agreement and any amendment thereto shall be registered with the International Civil Aviation Organization.

ARTICLE XXI

If a general multilateral air convention comes into force in respect of both Contracting Parties, the provisions of such convention shall prevail. Consultations in accordance with Article XVII of this Agreement may be held with a view to determining the extent to which the present Agreement is affected by the provisions of the multilateral convention.

ARTICLE XXII

This Agreement shall be applied provisionally from the date of its signature, and shall enter into force on the later of the dates on which the Contracting Parties shall each have notified the other by Diplomatic Note that they have obtained whatever internal approval may be required to give effect to this Agreement.

IN WITNESS WHEREOF, the undersigned, duly authorized thereto by their respective Governments, have signed the present Agreement.

DONE in two copies at Ottawa this 14th day of February, 1975, in the English and French languages, each version being equally authentic.

Jean Marchand

FOR THE GOVERNMENT OF CANADA

Salah M'Zili

FOR THE GOVERNMENT OF THE KINGDOM OF MOROCCO

ANNEX

Canada/Morocco Route Schedule

I. (a) routes to be operated by the designated airline of Morocco (in both directions): Point or points in Morocco - intermediate point (New York) - Montreal.

(b) routes to be operated by the designated airline of Canada (in both directions): Point or points in Canada - one intermediate point - ­Casablanca or one other point in Morocco - and beyond, including one point in Algeria - one point in Tunisia.

II. The operation of agreed services on the specified routes is subject to the following provisions:

(a) Points on specified routes may be omitted, at the option of the designated airline, on any or all flights.

(b) Traffic rights on the specified routes other than third and fourth freedom rights, as well as the intermediate point and points beyond on routes in Section I (b) to be operated by the Canadian designated airline, shall be determined by an exchange of Notes.

I

The Secretary of State for External Affairs of Canada to the Ambassador of Morocco

OTTAWA, February 14, 1975

No. FLA-104

His Excellency Nourreddine Hasnaoui
Ambassadeur du Maroc
Ottawa

Excellency,

I have the honour to refer to the Air Transport Agreement between Canada and Morocco signed at Ottawa on February 14, 1975.

With reference to this Air Transport Agreement, it is agreed that the designated airline of Morocco may exercise fifth freedom rights between New York and Montreal.

It is agreed that the Canadian authorities will have the right to name another point in Morocco to be served in place of Casablanca.

It is agreed that the airline designated by the Government of Canada may exercise fifth freedom rights between Morocco and either:

(1) two points beyond named by Canada; or

(2) one intermediate point and one point beyond, both named by Canada.

These points will be selected from the areas defined below in (a) and (b), excluding Madrid, France, Italy, Yugoslavia, Turkey, Syria, Lebanon, Jordan, Egypt, Sudan, Libya, Tunisia and Algeria.

It is agreed that in transit and stopover rights will be granted with respect to the points to be named by Canada in Algeria and Tunisia. An additional point with intransit and stopover rights may also be named by Canada. If at the intermediate point, it may be chosen from area (a) plus continental Spain. If as a point beyond, it may be chosen from area (b). Intransit and stopover privileges may be exercised at these points if granted by the third countries involved.

(a) Intermediate:

Portugal including Madeira or the Azores, or the Canary Islands;

(b) Beyond:

Area bounded to the North by European countries on the Mediterranean; to the South by Africa North of 20 degrees latitude North, but including Sudan; to the East by the Middle East West of 60 degrees longitude East, including the Arabian Peninsula.

It is agreed that named points may be changed only with six months notice prior to the next applicable IATA period.

If the Moroccan Government is prepared to accept this proposal, I have the honour to propose that this Note which is authentic in English and French and your reply thereto shall constitute an agreement between our two Governments which shall take effect on the date of your reply.

Accept, Excellency, the renewed assurances of my highest consideration.

Allan J. MacEachen

Secretary of State for External Affairs

II

The Ambassador of Morocco to the Secretary of State for External Affairs of Canada

OTTAWA, February 14, 1975

The Honourable Allan J. MacEachen
Secretary of State for External Affairs
Ottawa

Sir,

I have the honour to refer to your Note No. FLA-104 of February 14, 1975, and to the Air Transport Agreement between Canada and Morocco signed at Ottawa on February 14, 1975. I have the honour to inform you that its content is acceptable to my Government. My Government further agrees that your Note, which is authentic in English and French, and my reply to that effect, which is authentic in French, shall constitute an agreement between our two Governments which shall enter into force today.

Accept, Sir, the renewed assurances of my highest consideration.

Nourreddine Hasnaoui

Ambassador of the Kingdom of Morocco