EU, Canada Close to Comprehensive Aviation Agreement
December 10, 2008 // Published as a news service by IHS
On Dec. 9, representatives of the European Union (EU) and Canadian negotiating teams reported a breakthrough on a comprehensive agreement on aviation services in line with the conclusions of the EU-Canada summit on Oct. 17.
According to the European Commission (EC), the agreement will be a major step in the opening of markets and investment opportunities.
The new agreeement will complete the transatlantic market started with the EU-U.S. first-stage aviation agreement and also go beyond it to generate major benefits for each partner's consumers, airlines and broader economies.
Under the proposed agreement, all EU airlines will be able to operate direct flights to Canada from anywhere in Europe. The agreement removes all restrictions on routes, prices or the number of weekly flights between Canada and the EU.
Other traffic rights will be liberalized gradually in parallel with the opening up of investment opportunities.
The agreement will finally establish a full "open aviation area" between the EU and Canada. EU nationals will be able to establish operations in Canada and freely invest in Canadian airlines and vice versa.
Furthermore, the agreement will help tackle common challenges, such as aviation security and the environment. Both sides agreed to closely cooperate in order to mitigate the effects of aviation emissions on climate change. In the field of safety and security, the agreement envisages mutual recognition of standards and one-stop security.
By developing one-stop security, transfer passengers and their luggage and cargo would be exempted from any additional security measures when travelling to or from Canada. Specific provisions to improve consumer interests are also included. This will facilitate the operations for airlines and airports, and reduce hassle for passengers.
The agreement provides for a strong mechanism to ensure that airlines cannot be discriminated against in terms of access to infrastructure or state subsidies, another novelty in international aviation.
"I informed the EU Ministers today that the negotiations have been finalised. The new agreement makes the EU-Canada market one of the most open in the world and is a milestone for EU-Canada relations. It will be key in further stimulating EU-Canada transatlantic trade," said Antonio Tajani, EC vice president responsible for transport.
"It is groundbreaking in the aviation world as the agreement includes all possible aspects of aviation, including investment. The agreement is an important sign in the current economic situation that EU and Canada want to significantly expand their relations."
Building on the success of the European internal aviation market, the agreement is also an important step towards the normalization of the international aviation industry, as it gradually removes outdated restrictions for prices, traffic rights and investments, and facilitates the cooperation between the authorities, including international bodies.
Source: European Commission.