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### Viewing cable 10STATE9584, U.S.-EU SECOND STAGE AIR TRANSPORT NEGOTIATIONS

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
10STATE9584 | 2010-01-29 21:09 | 2011-01-13 05:05 | UNCLASSIFIED | Secretary of State

`

    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.

    ¶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

`