Fri, Mar 12, 2004
Transport Commissioner Wants More Access to US Domestic
Market
A current U.S. offer on
opening airline markets is insufficient and more talks are needed,
EU transport ministers said, adding that a deal may not be possible
this year. The EU wants the United States to further ease ownership
limits and give EU carriers more access to U.S. routes. For
Washington, a key goal is having more carriers operating out of
Europe's busiest airport, Heathrow in London.
"The presidency recognizes that it would not be able to conclude
an agreement this year," said Irish Transport Minister Seamus
Brennan, whose country holds the rotating presidency of the EU and
who chaired a meeting of EU transport ministers. They urged the
European Commission, the executive arm of the EU, which is
negotiating the deal, to ask for further U.S. concessions in
another round of talks due on March 29. European Transport
Commissioner Loyola de Palacio said a deal might be possible this
year, but Washington had to improve its offer on access to its
domestic market. She welcomed an offer to ease restrictions on
ownership limits.
A U.S. proposal would allow EU investors to own up to 49 percent
voting stock in a U.S. carrier, up from 25 percent. But Europe also
wants permission for its airlines to offer flights within the
United States, something the administration and Congress are not
willing to consider. De Palacio said a two-phase deal could be
struck, under which the United States first eased ownership
restrictions and gave some access to the U.S. domestic market. It
would then commit to a second round of talks by a certain date with
specific further liberalizing measures on the table.
Br
itain is particularly
concerned about the talks as it accounts for a major share of the
EU-U.S. air market. Transport Secretary Alistair Darling told
reporters the current U.S. offer was insufficient. "The offer is
balanced and is not acceptable to us and therefore should not be
acceptable to the other (EU) member states," he said. He said
Britain backed a fully liberalized EU-U.S. air market, but ruled
out concessions just to get a quick agreement.
"The general feeling (among EU ministers) is that it may take
some time to negotiate something," he added.
De Palacio said she did not want the talks to drag out too long.
EU states that have their own bilateral deals with Washington may
have to cancel them, she said. The talks began after an EU court
ruled that bilateral agreements broke European rules that create a
single internal market in the bloc.
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