Cross-Border Transport Agreement

Part VI: Exchange of Commercial Traffic Rights

Article 19: Traffic Rights

Traffic rights shall be gradually exercised in two steps:

• Step 1: Subject to the conditions set out in this Part, Transport Operators established in one Contracting Party may undertake the following transport operations:
1. Transit through the other Contracting Parties
2. Inbound into another Contracting Party; and
3. Outbound from another Contracting Party.
• Step 2: Transport Operators established in one Contracting Party may, according to free market forces, undertake transport operations into, from, or across the territory of other Contracting Parties. Cabotage shall, however, only be permitted on the basis of a special authorization from the Host Country.

Article 20: Designation of Routes and Points of Entry and Exit

Protocol 1 defines permissible routes, and points of entry and exit for cross-border transport of goods and People.

Article 21: Licensing of the Transport Operator (Access to the Profession)

1. Transport Operators shall be licensed for cross-border transport operations by their Home Country according to the criteria set out in Annex 9.
2. The operating license cannot be sold or transferred by the legal entity to which it is issued.
3. The Host Country will recognize the operating license issued by the Home Country.

Article 22: Market Access

1. Any Transport Operator properly licensed for cross-border transport operations in its Home Country according to the criteria set in Annex 9, shall be entitled to undertake cross-border transport operations under the Agreement.
2. The Host Country shall grant permission to Transport Operators engaged in cross-border transport to establish representative offices for the purpose of facilitating their traffic operations.

Article 23: Free Market for Transport Services

Transport operation shall be gradually authorized in two steps:

• Step 1: The Vehicles to be operated in accordance with the Agreement shall be designated in Protocol 3 of the Agreement. Transport frequency may be determined in Protocol 3. In addition, the time frame to implement Step 1 shall be determined in Protocol 3. The National Transport Facilitation Committee of each Contracting Party, as specified in Article 28, will exchange and issue the agreed number of permits each year.
• Step 2: The frequency and capacity of the transport operations under the Agreement will not be subject to any restriction other than contained in the Agreement.

Article 24: Pricing and Conditions of Transport

1. Conditions of transport: The conditions of transport will conform to the rules set out in Annex 10.
2. Pricing: Price setting for cross-border transport will be free and determined by market forces, but subject to antitrust restrictions and supervision of the Joint Committee so as to avoid excessively high or low pricing.

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