Brussels, 17/05/2004 (Agence Europe) - Europeans did not return from the United States with sufficient guarantees of access to the American market for European airline companies after the fifth round of talks on an air agreement held from 10 to 13 May in Washington. Nonetheless, according to a note from the European Commission, the meeting between Loyola de Palacio, Transport Commissioner, and Norman Mineta, US Secretary of State for Transport, gave "a new impetus" to discussions allowing the Commission to remain optimistic about the possibility of reaching an agreement by the EU/United States Summit on 26 June. Europeans expect Americans to make an offer in coming days, comprising proposals on better market access for European airlines. If the Europeans accept the offer, then both parties will be able to conclude a formal agreement at the summit on 26 June, i.e. before the American elections.
History has repeated itself from one negotiating round to the next: negotiations are making progress on many points (environment, security, competition) but are still stumbling against the question of access to the American market by European airline companies. Access is clearly judged insufficient by the Commission and EU Member States. Having given up cabotage before the intransigence shown by the Americans, the Commission has for the past few weeks been seeking better access to the American air market through alternative measures such as the right of establishment (the right for a European company to set up a subsidiary on American territory) or "co-chairing" (the possibility for a European company to sell seats on flights operated by American companies in the United States within the framework of a transatlantic flight).
In Washington, Americans gave Europeans the feeling that they were working in earnest toward seeking alternative solutions to cabotage, a person familiar with the dossier said. The aim of the US Administration is now to find solutions that do not require legislative changes and which must not therefore go before Congress. The economic situation of American airlines would not allow a debate on market liberalisation to be held just before presidential elections, a person familiar with the issue said. The American counter-proposal that Europeans should be receiving in the next few days is expected to provide for provisions on access to the American market and "leasing" (the possibility for a European airline to rent out an American plane and its crew), provisions that would be of sufficient interest for European airlines. Americans should also undertake to go further in market liberalisation, in a second negotiating phase, with a specific timetable. Nonetheless, even in the second phase of negotiations, it is not very likely that Europeans will acquire the right to cabotage.