Thursday, November 27, 2014

US and Mexico Partner Up to Improve Air Freight Cooperation

New Agreement Will Come into Force in January 2016
Shipping News Feature

US – MEXICO – A new, modernised air service agreement has been reached between the US and Mexico that will provide greater air network opportunities for both passenger and cargo airlines and strengthen the economic ties between the two countries. Air freight carriers, for the first time, will have expanded opportunities to provide service to new destinations that were not available under the current agreement, and to offer services from the United States to Mexico and beyond into Latin America.

The new agreement will also remove the numeric limitations on the number of airlines that may provide passenger services in all US-Mexico city pairs. As a result, some city-pair markets might see the entrance of new carriers for the first time in many years, and airlines can consider offering new service in destinations that they could have never considered previously. US Transportation Secretary Anthony Foxx, said:

“Travellers, shippers, airlines, and the economies of both countries will benefit from competitive pricing and more convenient air service. This agreement is the result of the commitment on both sides of the border to strengthen the strong bonds of trade and tourism between our two countries, and demonstrate our shared commitment to a competitive, market-based international economic system.”

Entering into force on January 1, 2016, after both parties have completed their necessary internal processes, the new agreement will include unlimited market access for US and Mexican air carriers, improved intermodal rights, pricing flexibility, and other important commercial rights. In welcoming the news, Jim Barber, President of UPS International, commented:

"As strategic allies and critical economic partners, this aviation agreement, once entered into force, will build on Mexico’s economic reforms and the work of the High Level Economic Dialogue (HLED) in promoting competitiveness and connectivity in the global supply chain.”