Brussels, 28/05/2009 (Agence Europe) - After a long pause created by the US elections, the second phase of the open sky agreement negotiations liberalising trans-Atlantic air traffic will soon be launched. The first round of negotiations will take place on 22 June in Brussels during the 2nd Trans-Atlantic Social Forum (22-23 June) and after the Single Sky committee meeting set up under the first stage of the agreement. The two parties are expected to resume discussions on the five points still pending (EUROPE 9379) and clarify their positions before entering the real core of the subject. The determination to reach an agreement is very strong on both sides, even though the US does not necessarily share the same level of ambition as the EU, which wants a common trans-Atlantic area. Interviewed by EUROPE on Thursday 26 May, the Deputy Assistant Secretary of State and the US negotiator, John Byerly, did, nonetheless, provide assurances that, “these negotiations are the real opportunity to enhance our relations to an even higher level of cooperation”. Mr Byerly said that the negotiations would not be easy but they expected progress. As part of the first stage of the agreement, and clarified at the first meeting between the delegations on 2 September in Washington, the main areas of negotiations for the US will be the extension of air traffic rights, investment liberalisation and environmental issues. There will also be the very high priority for the US, the question of restrictions imposed on night flights in some European airports (Brussels, Frankfurt and Porto).
Liberalisation of air traffic rights: the American delegation wants to achieve the application of the seventh all-cargo freedom (currently only enjoyed by European air companies) which would give US air companies the opportunity to operate flights to third countries without taking off from a US airport. For the EU, the main issue is cabotage (where a European carrier can fly to airports within the United States) which is not permitted in the US.
Investment: while the EU has focused more on reciprocal liberalisation of investment and control of airlines (the right to invest in US airlines is still capped by US legislation), the main issue for the United States is the waiving the nationality clauses currently contained in bilateral agreements. In concrete terms, with the initial agreement, which came into effect on 30 April 2008, the EU won the right for air companies with majority European capital but established in one of 28 specified third countries (such as Ethiopia) to enjoy the same rights in the US as European airlines. The United States, which does not have this right, would like to see the list extended to 65 countries and to enjoy reciprocal treatment in terms of investment in the 28 countries concerned. Negotiations in Brussels will not bring the answer to this issue, said Byerly, stating that concessions could be made on investment, particularly in exchange for concessions on night flying.
Environmental issues: Noise pollution is a difficult issue for the US which fears that restrictions imposed on night flights by local rules in some European airports could have a negative effect on express freight carriers like DHL, FedEx and UPS which operate especially through the night. On this point, the US would like to see a more balanced approach based on the recommendations of the International Civil Aviation Organisation (ICAO). Among secondary matters, a decision has yet to be reached on the social issue and the concern of the US unions, which fear that European rules in this area could be less attractive than those in the US, have to be calmed.
European and US delegations are also expected to explain the law voted last week by the US House of Representatives, which makes it an obligation for inspectors of the US Federal Aviation Administration (FAA) to carry out inspections at least twice a year on any European maintenance firm that works on American aircraft. According to the press, there are 400 such firms in Europe, compared to 1,200 American firms which provide maintenance services to foreign airline companies. Speaking in Brussels on Wednesday 27 May, the EU ambassador in Washington, John Bruton, was highly critical of this provision, saying that the draft law voted brings the Open Skies agreement into question. The EU takes the view that the provision voted compromises mutual recognition of air security standards guaranteed by the first stage agreement. The draft law also provides for review of the rules issued by the civil aviation anti-trust authority every three years. This, the EU finds, could bring legal uncertainty into the aviation markets. Mr Byerly said he felt there was a “little bit of confusion” and stressed that there are “two separate aviation agreements” (the Open Sky agreement which governs commercial air traffic rules and the technical agreement on aviation safety which has been signed but is not yet in force). He went on to say that the US Administration will continue to work closely with Congress until the end of the legislative process. The Senate has not yet taken a stance on the draft law and, for the bill to be put to the president, it is necessary for the texts voted to be identical, Byerly said. (A.By./transl.rh/rt/jl)