1 Aviation agreements
| (27453)
8656/06
COM(06)169
| Draft Decision on the signature and provisional application of the air transport agreement between the European Community and its Member States, on the one hand, and the United States of America, on the other hand
Draft Decision on the conclusion of the air transport agreement between the European Community and its Member States, on the one hand, and the United States of America, on the other hand
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| Legal base | Articles 80 and 300 EC; consultation; QMV
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| Department | Transport |
| Basis of consideration | Minister's letter of 11 April 2007
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| Previous Committee Report | HC 34-xxxi (2005-06), para 4 (14 June 2006), HC 34-xxxvi (2005-06), para 8 (19 July 2006) and HC 41-xv (2006-07), para 1 (21 March 2007)
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| Discussed in Council | 22 March 2007
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| Committee's assessment | Politically important
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| Committee's decision | For debate in European Standing Committee (decision reported on 21 March 2007)
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Background
1.1 Since 1987 a single market for air services in the Community
has been progressively established. Community legislation has
extended the scope of this single market beyond purely economic
matters to embrace the areas of safety, security, air traffic
management, social harmonisation and the environment. The Community
has the competence to conclude air services agreements with third
countries and to require meanwhile revision of bilateral air services
agreements to eliminate provisions discriminatory against other
Member States.
1.2 The draft Decisions in this document would authorise the signature,
provisional application and conclusion of an aviation agreement
between the Community and the Member States on the one hand and
the United States of America on the other. It would be a first-stage
agreement — a step towards the Community's ambition, shared
by the Government, of an open aviation area of the Community and
the US.
1.3 On 21 March 2007 we considered information from the Government
about a revised agreement recently concluded with the US authorities,
which was to be considered by the Transport Council the next day.
We also took into account an opinion on the revised agreement
which we had received from the Transport Committee under Standing
Order No. 143 (11). In reporting this development we said that:
- the original agreement presented by the Commission with the
draft Decisions was, without a previously hoped for change to
the regulations governing ownership of US airlines, clearly unacceptable;
- equally clearly the revised agreement was, as the Government
implied and the Transport Committee made explicit, not a great
improvement;
- we thought that a decision on whether to accept this first-stage
agreement depended crucially on whether there was a reasonable
prospect of a more beneficial second-stage agreement;
- some, including the Transport Committee, held strongly there
was not such a prospect and we hoped and expected that the Government
would give considerable weight to this view in deciding its approach
to the Transport Council discussion;
- in the circumstances we were sure the House would have wished
for more time to consider this matter, both in the light of the
documents presented by the Commission and of the final outcome
of the Transport Committee's inquiry;
- nevertheless, even though a "political decision"
proposed for the Transport Council on 22 March 2007 might effectively
settle the terms of the new agreement, we recommended that the
matter be debated in European Standing Committee before the EU/US
Summit on 30 April 2007, at which it was hoped the agreement might
be signed;
- however, we accepted that the Government was unable to reveal
its negotiating position before the Transport Council discussions,
understood that it might just judge it in the best interest of
the UK to concur in the "political decision" and agreed
that it could, in accordance with paragraph (3) (b) of the Scrutiny
Reserve Resolution of 17 November 1998, and if appropriate, so
concur.[1]
The Minister's letter
1.4 The Secretary of State for Transport (Douglas Alexander) writes
now about the outcome of the Transport Council consideration of
this matter on 22 March 2007. First the Minister says that, as
expected, the Commission and Presidency commended the revised
stage one agreement for Council approval and that it agreed unanimously
to approve the agreement, with a view to its signature at the
EU/US Summit in Washington on 30 April 2007. (He encloses with
his letter a copy of the text of the final agreement the Government
expects to be presented for signature.) The Minister continues
that the Council also:
- reiterated its ultimate objective of a fully liberalised open
aviation area covering the Community and the US;
- asked the Commission to secure agreement of the US to put
back the date of provisional application of the agreement to 30
March 2008 in order to give airlines and airports more time to
prepare;
- underlined the importance of reaching a second stage agreement
and called on the Commission to engage robustly with the US Government
so as to secure this goal as quickly as possible; and
- agreed on a mechanism whereby, if no second stage agreement
has been reached within 12 months of the start of the review of
progress towards such an agreement provided for in the present
agreement, the Community will automatically give notice of the
suspension of new traffic rights to the US — such rights
to be determined by each Member State in relation to its own territory
— unless the Council decides by unanimity not to do so.
1.5 The Minister gives the Government view that this first stage
agreement will bring an end to the restrictions on routes, frequencies
and fares governing aviation between the UK and the US that stretch
back over 60 years and will also end the legal uncertainty surrounding
UK-US aviation relations. He adds that:
"I am very much aware of the need for further progress
towards our ultimate goal of a fully liberalised open aviation
area. I am pleased that we secured at the Council a clear political
commitment that this remains our goal, together with a detailed
timetable for second stage negotiations and the unconstrained
ability to take sanctions against the US if meaningful progress
has not been made within that timetable."
1.6 The Minister reminds us that he told the Transport Committee
that he would not concur at the Transport Council in a deal that
was not in the UK's best interests[2]
and goes on to say:
"Taking into account the further commitments and safeguards
reflected in the Council conclusions, and bearing in mind the
benefits this agreement would bring for UK interests, I took the
view that this stage one deal satisfied that test. This agreement
will sweep away outdated and illegal restrictions which stand
at odds with our policy of air services liberalisation. It should
deliver real benefits for UK consumers through increased competition
and better services. It provides an open, deregulated transatlantic
market place in which UK carriers — both existing and new
— will be well placed to compete. It sets out a clear process
for delivering our ultimate goal of a fully liberalised EU-US
open aviation area. And I believe it will provide a real impetus
to further deregulation and modernisation of the international
aviation industry around the globe."
Conclusion
1.7 We are grateful to the Minister for this account of the
outcome of the Transport Council consideration of this matter
and of the Government's view of this outcome. This will be relevant
to the debate in European Standing Committee we have recommended
and we understand the account is being drawn to the attention
of Members of the Committee.
1 See headnote. Back
2
See oral evidence given on 13 March 2007, to be published as HC
395-i. Back
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