This paragraph states: “The Signatories undertake not to provide any incentive for the sale or purchase of civil aircraft from a particular source that would result in discrimination against suppliers by a Signatory.” 1. `large civil aircraft` means, in respect of aircraft manufactured in the United States by existing manufacturers of large civil aircraft and in the European Community by the Airbus consortium or its successors, all aircraft as defined in Article 1 of the GATT Agreement on Trade in Civil Aircraft, with the exception of engines as defined in Article 1, paragraph 1(b); designed for the carriage of passengers or goods and equipped with 100 or more passenger seats or an equivalent vehicle in cargo configuration; In 1997, the Commission made the approval of the merger between Boeing and McDonnell Douglas conditional on Boeing`s commitment to grant Airbus all “government-funded patents” that could be used in the manufacture or sale of large civil aircraft. Airbus has no similar commitment to sharing the fruits of government-funded technology with Boeing. The United States has tried to incorporate such mutual commitment into a new bilateral agreement. These calculations are based on the forecast of aircraft deliveries when evaluating critical projects. (c) take due account of the potential impact on other major civil aircraft manufacturers and avoid lowering the prices of civil aircraft on the world market through the production of stocks for which there is no fixed order. Without prejudice to Article 4(3), this also means that signatories shall not intervene in any way or exert any direct or indirect pressure on other governments or jobs involved in procurement decisions, including the identification of a negative or positive link between decisions relating to the acquisition of civil aircraft and other matters or measures in other areas; which could harm the interests of the importing country. The 1992 agreement does not prevent the United States or the European Commission from filing a complaint with the WTO. The provisions and obligations under the 1992 Bilateral Agreement are distinct and different from the provisions and obligations of the 1994 SCM Agreement. Compliance with one is not a defense against the other`s allegations of non-compliance.

Their common objective is to prevent trade distortions resulting from direct or indirect State support for the development and production of large civil aircraft, to introduce broader disciplines for such support and to promote the multilateral adoption of such disciplines within the framework of GATT. This means that signatories refrain from exploiting negative or positive links between the sale or purchase of civil aircraft and other government decisions or policies that could affect the adoption of such disciplines. to make such a sale or purchase whenever there is competition between the suppliers of the signatories. The following is an agreed indicative and non-exhaustive list of such prohibited incentives: If a Party has reason to believe that other indirect government support will result in significant cost reductions for large civil aircraft, the Parties shall consult those reductions in order to quantify those reductions and include them in the calculation described above. Agreement between the European Economic Community and the Government of the United States of America on the application of the GATT Agreement on Trade in Civil Aircraft to trade in large civil aircraft 8.10. The Parties shall provide information on new capital injections or changes in government positions in civil aircraft manufacturing enterprises, including the amount and type of equity provided. 2. `derivative` means an aircraft model whose essential design elements are derived from a previous aircraft model; 9.1.

Where, as a result of an unforeseen exceptional situation, the persistence of a significant part of the civil aircraft manufacturing activities in one of the Parties (1) and the maintenance of the financial viability of the enterprise or division of an enterprise responsible for the manufacture of such civil aircraft are jeopardized, that Party may temporarily depart from the disciplines provided for in this Agreement. .