Enhance airfreight capabilities in Latin America, the seventh freedom traffic rights agreement, initially implemented on a temporary basis in 2021, has now been made permanent. This multilateral agreement, geared towards liberalizing air cargo services, holds the potential to substantially boost the airfreight sector across the region.
The Latin American Civil Aviation Commission (LACAC) member states involved in the agreement include Brazil, Chile, Costa Rica, Cuba, Panama, Paraguay, Peru, the Dominican Republic, Uruguay, and Venezuela. These nations, recognizing the strategic importance of fostering air cargo connectivity, formally signed the memorandum of understanding (MoU) in December.
The agreement grants airlines from LACAC member states the privilege to provide all-cargo services between two signatory states without any restrictions on routes and capacity. This freedom to operate in the region is a crucial development that could spur economic growth and facilitate efficient trade.
According to the International Civil Aviation Organization (ICAO), the MoU is structured to establish a regime of seventh reciprocal freedoms, specifically catering to exclusive air cargo services within the geographical area formed by the signing states. Notably, the agreement draws on the positive experience of a temporary instrument utilized by LACAC during the pandemic period, reflecting the adaptability of such measures in response to dynamic circumstances.
This permanence of the regional agreement is seen as a significant stride towards improving cargo connectivity throughout the Latin American region. It marks a departure from the initial temporary setup in 2021, where the focus was on optimizing the distribution of Covid vaccines. Now, with the permanence of the agreement, the air cargo sector, particularly in the realm of e-commerce, is poised to play an even more pivotal role in regional economic recovery and development.
A stakeholder emphasized that this development represents a giant leap forward in fostering cargo connectivity, making it easier for the region to respond to evolving trade demands. The open-ended nature of the MoU, allowing other states to sign whenever they choose, highlights a commitment to flexibility and inclusivity in the pursuit of a robust regional air cargo network.
source:Aircargo
