Study on the Application of the Legal Issues to the WTO GATS: Traffic Rights and Aviation Services

Abstract

New introduction of aircraft in the early 20th century has dramatically changed both industry and trade of the world. Importance of aviation industry grows rapidly as it much relevant with many other advanced technologies such as machinery, electronics and Information Technology. Interrelationship between diversified industries is creating a synergy to boost the economic growth internationally.

This thesis aims to conduct researches regarding the legal issues on the WTO GATS and its annexes. Although importance of the aviation services are sufficiently proven, international organizations seem to neglect legal issues regarding trading aviation services. Such legal issues are that traffic rights and other aviation services, as one of core tradable services are still underestimated. Thus, aviation services that are excluded from the boundary of the WTO GATS will be studied in this thesis.

In order to conduct a research, the study first followed background research of the international documents and organizations. From the research, it is found that provisions on aviation services are duplicated while conducting this research by reviewing documents provided by both WTO and ICAO. ICAO and the Chicago convention has influenced greatly on the development of aviation services but not in the relevant field such as trading and commerce.

Moreover, despite to the importance of aviation services, WTO and the GATS have no provisions that are sufficient enough for the trade of aviation services. Particularly, omitting the Freedoms of the Air (also known as traffic rights) and exclusion of certain aviation services have been selected for further studies for this paper. Using statistical evidences, it is proved that the traffic rights have played remarkably on the economy.

The significant finding from the analysis is that the legal documents from international organizations have not caught up with the changing industrial environment and market trend. Therefore, in order to secure leading position in the trading aviation services, it is highly positive to add traffic rights to the WTO GATS. However, inclusion of the additional other aviation services other than the traffic right is still unclear.