Identifier
Created
Classification
Origin
10STATE9584
2010-01-29 21:43:00
UNCLASSIFIED
Secretary of State
Cable title:  

U.S.-EU SECOND STAGE AIR TRANSPORT NEGOTIATIONS

Tags:  EAIR EUN KTIA IC NO 
pdf how-to read a cable
R 292143Z JAN 10
FM SECSTATE WASHDC
TO EU MEMBER STATES COLLECTIVE
AMEMBASSY OSLO 
AMEMBASSY REYKJAVIK 
INFO EU INTEREST COLLECTIVE
USEU BRUSSELS
DEPT OF COMMERCE WASHINGTON DC
TRANSPORTATION DEPT WASHINGTON DC 0000
UNCLAS STATE 009584 


E.O. 12958: N/A
TAGS: EAIR EUN KTIA IC NO
SUBJECT: U.S.-EU SECOND STAGE AIR TRANSPORT NEGOTIATIONS

This is an action request for all Embassies to EU Member
States, Oslo, and Reykjavik. See paragraph 2.

UNCLAS STATE 009584


E.O. 12958: N/A
TAGS: EAIR EUN KTIA IC NO
SUBJECT: U.S.-EU SECOND STAGE AIR TRANSPORT NEGOTIATIONS

This is an action request for all Embassies to EU Member
States, Oslo, and Reykjavik. See paragraph 2.


1. Summary. The seventh -- and possibly decisive -- round
of second stage U.S.-EU air transport negotiations will take
place in Madrid February 15-17. The November 3, 2009 U.S.-EU
Summit Declaration calls for a second stage agreement by the
end of 2010. To meet this timetable, both sides must take a
realistic and pragmatic approach.


2. Action Request. Posts are requested to approach host
government Transportation Ministry officials at an
appropriately high level, and, drawing on the points provided
in paragraph 8 below, urge that the European side take a
realistic and pragmatic approach in the negotiations in order
to reach a second stage agreement, including benefits for
both sides, by the end of 2010. Posts may also approach
Foreign Ministry or other host government officials, if it
would be constructive.


Background


3. In March 2007, after three-and-a-half years and eleven
formal rounds of negotiations, U.S. and EU negotiators
initialed the text of a comprehensive, first-stage Air
Transport Agreement. The Agreement was signed in April 2007
and has been provisionally applied since March 30, 2008. The
Agreement replaces 16 existing bilateral Open Skies
agreements and five more restrictive aviation agreements
between the United States and Member States, and establishes
an "Open Skies-Plus" framework applicable to the United
States and all 27 EU Member States. Norway and Iceland are
joining the Agreement on the European side.


4. The Agreement contains all the essential elements of an
Open Skies agreement and elements beyond those in traditional
Open Skies accords. The Agreement includes a binding
commitment to undertake negotiation of a second stage
agreement, and identifies these items of priority interest to
one or both of the parties to be included on the agenda:
further liberalization of traffic rights; additional foreign
investment opportunities; effect of environmental measures
and infrastructure constraints on the exercise of traffic
rights; further access to government-financed air
transportation; and provision of aircraft with crew.


5. Second stage negotiations began in May 2008, and six
rounds have taken place. The negotiations have been
constructive, and significant progress has been made across a

range of important issues, including security, regulatory
cooperation, and the role of the Joint Committee established
by the Agreement. Further work remains to be done on other
key areas, including market access, investment, environmental
constraints, cooperation on environmental issues, and the
social (labor) dimension. Representatives of Norway and
Iceland participate in the negotiations as observers on the
European delegation.


6. At the November 3, 2009 U.S.-EU Summit President Obama
and his EU counterparts called for a second stage air
transport agreement by the end of 2010 which includes
benefits for both sides. EU leaders at the summit included
President of the European Commission Jose Manuel Barroso,
Commissioner Benita Ferrero-Waldner, Swedish Prime Minister
Fredrik Reinfeldt and Foreign Minister Carl Bild,
representing the EU Presidency, and High Representative
Javier Solana.


7. The seventh -- and potentially decisive -- round of the
second stage negotiations will take place in Madrid February
15-17. To reach agreement within the timetable the leaders
have set, both sides must now take a very realistic and
pragmatic approach to developing nuanced agreement language
necessary to bridge the gap between the U.S. and EU
positions.


8. Begin points.

-- At the November 3, 2009 U.S.-EU Summit President Obama and
his EU counterparts called for a second stage U.S.-EU air
transport agreement by the end of 2010 which includes
benefits for both sides.

-- Spain has said that among its top objectives during its
Presidency is achieving agreements with the United States,
including a second stage air transport agreement.

-- Spain is hosting the seventh round of U.S.-EU second stage
air transport negotiations in Madrid February 15-17.

-- Significant progress has been made in past rounds on a
broad range of subjects. The United States has undertaken a
thorough analysis of the remaining issues and is convinced
that compromise by both sides will be required if we are to
reach a second stage agreement by the end of 2010.

-- Both sides must be realistic about what is achievable, in
the time available, tempering ambition with pragmatism.

-- The United States recognizes that our principal request --
fundamental change in the way decisions are made on
noise-related operational restrictions at EU airports --
presents difficult policy and legal challenges for Member
States.

-- We hope that European participants understand that a
commitment to change U.S. law on ownership and control of
U.S. carriers is not achievable within the timeframe set by
our leaders for achieving a second stage agreement.

End points.


9. Department appreciates Posts' assistance.


CLINTON