OPEN SKIES AND CSI: GOI LOOKS TOWARDS THE JUNE 25

UNCLAS ROME 002837 SIPDIS SENSITIVE FAA HDQRS FOR API-1/AIA-1/2/300 BRUSSELS FOR FAA AEU-1 E.O. 12958: N/A TAGS: EAIR EWWT ECON IT EUN FAA AVIATION SUBJECT: OPEN SKIES AND CSI: GOI LOOKS TOWARDS THE JUNE 25 U.S./EU SUMMIT (U) SENSITIVE BUT UNCLASSIFIED. PLEASE PROTECT ACCORDINGLY. NOT/NOT FOR INTERNET DISTRIBUTION. OPEN SKIES -------------- ¶1. (SBU) ACCORDING TO TRANSPORT MINISTRY DIRECTOR FOR INTERNATIONAL AFFAIRS ALDO SANSONE, GOI OFFICIALS ARE RELIEVED THAT THE EUROPEAN COMMISSION WAS GRANTED A MANDATE TO NEGOTIATE A U.S./EU OPEN SKIES AGREEMENT. HE BELIEVES THAT THE EC NO LONGER HAS THE RIGHT TO TAKE LEGAL ACTION AGAINST MEMBER STATES WITH OPEN SKIES BILATERAL AGREEMENTS, NOR DOES IT HAVE THE AUTHORITY TO ASK THE MEMBER STATES TO DENOUNCE SUCH TREATIES. WHILE OPEN SKIES WILL BE DISCUSSED AT THE JUNE 25 U.S./EU SUMMIT IN WASHINGTON, D.C., SANSONE FORESEES THE NEGOTIATIONS COMMENCING IN SEPTEMBER, AND EXPECTS TO BE PERSONALLY A MEMBER OF THE NEGOTIATING TEAM. ¶2. (SBU) SANSONE THOUGH THAT THESE NEGOTIATIONS WILL NOT BE CONCLUDED PAINLESSLY OR QUICKLY, ESPECIALLY GIVEN DIFFERENCES BETWEEN U.S. AND EU LEGAL FRAMEWORKS. FOR EXAMPLE, HE CONTINUED, THERE WILL BE A CLASH BETWEEN THE EU'S COMPETITION LAW AND THE U.S. SHERMAN ACT; THE QUESTION OF TRAFFIC RIGHTS IS ALSO PROBLEMATIC. AT THE SAME TIME, HE EMPHASIZED THAT BOTH THE U.S. AND THE EU APPEAR TO HAVE THE DESIRE AND SUPPORT TO SUCCESSFULLY CONCLUDE AN U.S./EU OPEN SKIES AGREEMENT. CONTAINER SECURITY INITIATIVE (CSI) -------------- ¶3. (SBU) ON MONDAY, JUNE 16, GENOA BECAME THE FIRST FULLY OPERATIONAL ITALIAN CSI PORT AND LA SPEZIA BECAME FULLY OPERATIONAL ON MONDAY, JUNE 23. AFTER "PHASE ONE" HAS BEEN OPERATIONAL FOR FOUR TO SIX MONTHS, U.S. CUSTOMS WILL WORK WITH GOI OFFICIALS TO EXPAND CSI TO THREE ADDITIONAL ITALIAN PORTS - LIVORNO, GIOIA TAURO AND NAPLES. WHILE GOI CUSTOMS AND POLICE OFFICIALS STRONGLY SUPPORT CSI, THEY ARE SENSITIVE TO ITALIAN PRESS REPORTING THAT USG OFFICIALS ARE CARRYING OUT CONTROLS, WHICH IS NOT THE CASE. USG AND GOI OFFICIALS ARE WORKING TOGETHER TO CORRECT AND AVOID MISREPRESENTATION IN THE ITALIAN PRESS. ¶4. (SBU) GOI OFFICIALS ARE LOOKING FORWARD TO THE PRESENTATION OF A DRAFT AMENDMENT TO THE U.S./EU CUSTOMS MUTUAL ASSISTANCE AGREEMENT (CMAA) AT THE JUNE 25 U.S./EU SUMMIT. IF APPROVED, BOTH GOI AND U.S. CUSTOMS OFFICIALS BELIEVE THAT IT WOULD CANCEL IMPENDING INFRINGEMENT PROCEEDINGS AGAINST MEMBER STATES WITH BILATERAL CSI AGREEMENTS WITH THE U.S. ¶5. (SBU) COMMENT. HEADING INTO THE JUNE 25 U.S./EU SUMMIT AND ITS EU PRESIDENCY IN JULY, THE GOI APPEARS TO SUPPORT EUROPEAN COMMISSION EFFORTS TO CONCLUDE U.S./EU AGREEMENTS ON BOTH OPEN SKIES AND CSI. THE GOI IS ALSO COMMITTED TO A SMOOTH TRANSITION FROM MEMBER STATE TO U.S./EU AGREEMENTS IN BOTH CASES. END COMMENT. SEMBLER NNNN 2003ROME02837 - Classification: UNCLASSIFIED