Brussels, 24/09/2007 (Agence Europe) - The Transport Council on 2 October is likely to adopt the negotiating mandate to allow the Commission, acting on behalf of the EU, to conclude a comprehensive agreement with Canada for reciprocal air market liberalisation. The Council will also define ownership rules for air companies and establish common measures on air safety and security. Negotiations could begin in November, and it is perfectly possible that the agreement could be concluded under French presidency.
Similar to the “Open Skies” agreement signed with the United States in April of this year (see EUROPE 9418), the future agreement will replace the bilateral agreements between 18 EU member states and Canada, with the aim being reciprocal opening up of the air markets. This opening up could go even further particularly on cabotage (allowing an airline to operate internal flights in another state). Under the terms of its mandate, the Commission will be able to negotiate the rules that will apply to European investment in Canadian airlines and Canadian investment in European airlines. Currently, Canadian legislation does not allow foreign investors to hold more than a 25% share in an airline, but the Commission hopes this measure could be relaxed under the reforms recently introduced by the Canadian government. With the world's most restrictive air policy, Canada initiated the Blue Sky reform in November, to liberalise its air policy.
The agreement would also see the creation of one security stops, which would mean that passengers travelling between the EU and Canada would only have one security check. A separate agreement on the mutual recognition of aeroplane certificates could also be signed shortly. (aby)