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The EU continues to insist on access and wants the current 49% foreign investment limit to be removed. They oppose these provisions on other issues such as regulatory enlargement (called “harmonization” by our FAA), airline safety and the highly sensitive problem of cabotage, which involves access to U.S. roads, i.e. the ability to fly between two cities within the United States. The Level I agreement allows EU airlines to fly between US cities. It is expected to begin in October of this year. Careful! These provisions of the phase I agreement that has just been signed only concern market access. Other Phase I titles deal with regulatory cooperation, security, competition, state subsidies and aid, tariffs, the environment and the creation of a single committee to clarify issues of interpretation or implementation of the agreement. Many agree that this agreement is bad for the United States and, more importantly, bad for jobs and work in the United States. In November 2018, the UK reached an individual “Open Sky” agreement with the US, which will succeed the EU agreement after Brexit.

[19] Open skies agreements have significantly increased international passenger and cargo flights to and from the United States, encouraging more travel and trade, increasing productivity and stimulating opportunities for quality employment and economic growth. Open skies agreements do this by eliminating state intervention in airline business decisions about routes, capacity and prices, and by enabling airlines to provide consumers with more affordable, convenient and efficient services. The agreement also strengthens cooperation between the two sides in the following areas. The United States has made open skis with more than 100 partners from all regions of the world and at all levels of economic development. In addition to the bilateral open skies agreements, the United States negotiated two multilateral open skies agreements: (1) the 2001 Multilateral Agreement on the Liberalization of International Air Transport (MALIAT) with New Zealand, Singapore, Brunei and Chile, to which Samoa, Tonga and Mongolia subsequently joined; and (2) the 2007 Air Services Agreement with the European Community and its 27 Member States. The agreement came into force on June 29, 2020. However, it has been provisionally applicable since 30 March 2008 (Article 25 of the Air Services Agreement). The signing of the EU-US Air Transport Agreement in 2007 was a watershed moment in the air relations between the two regions, which brought together the world`s two largest air transport markets and connects more than 800 million people on both sides of the Atlantic. In 2010, a protocol amending the original agreement (called the “second phase agreement”) was signed, which significantly improved market access and regulatory cooperation.