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Europe Daily Bulletin No. 9322
GENERAL NEWS / (eu) eu/united states/transport

Aviation agreement with United States deadlocked once more

Brussels, 06/12/2006 (Agence Europe) - Transport Commissioner Jacques Barrot is justifiably disappointed. The signing of the aviation agreement between the Community and the United States supposed to create a real “common trans-Atlantic air space” is under threat. On 5 December, the US Department of Transportation (DOT) announced its decision to withdraw its proposal to amend American legislation on the rules of ownership and control of American airline companies. This change was an absolute condition of the EU's signing the agreement, yet, from the start, it has met strong opposition from the US Congress as well as from the industry and the unions. “It was clear from reviewing comments that the Department needs to do more to inform the public, labor groups and Congress about the benefits of allowing more international investment. We need a stronger national consensus about the best means of achieving that objective,” said new US Transportation Secretary Mary E. Peters, quoted in a press release. The DOT remains “committed to seeking an Open Skies aviation agreement with the European Union,” Ms Peters said. It was she who informed Mr Barrot by telephone of the (bad) news, and suggested an emergency meeting of European and American representatives in Brussels in early 2007. This was accepted by the Commissioner, who, in a press release, expressed his “disappointment”, pointing out that the proposal withdrawn by the DOT was “an essential element” for the conclusion of the first stage of this aviation agreement with the United States. The Commission will await this meeting at the start of 2007, possibly in January, to “review the situation and discuss the best way forward”. In short, to see what the Americans, who have been singing the praises of this amendment for over a year, will offer in order to find a solution. If the Europeans cannot get what they want, other options could be explored such as adding to the agreement some points planned for the second phase of negotiation (to strengthen arrangements on state aid or making access to the American market easier), or, on the contrary, removing some (for example, some intra-Community service rights). The Commission has its own weapon in the struggle, which it has been unwilling to use until now: it could call for the termination of bilateral aviation agreements between the United States and Member States, ruled illegal by the European Court of Justice on 5 November 2002. (dt)

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