Legal provisions of COM(2011)253 - Signature of the Agreement on Air Transport between the EU and Brazil Proposal for a COUNCIL DECISION on the signature of the Agreement on Air Transport between the EU and Brazil

Please note

This page contains a limited version of this dossier in the EU Monitor.

dossier COM(2011)253 - Signature of the Agreement on Air Transport between the EU and Brazil Proposal for a COUNCIL DECISION on the signature of ...
document COM(2011)253 EN
date May  6, 2011
 

|
52011PC0253

/* COM/2011/0253 final - NLE 2011/0110 */ COUNCIL DECISION on the signature of the Agreement on Air Transport between the European Union and its Member States, of the one part, and the Federative Republic of Brazil, of the other part Proposal for a COUNCIL DECISION on the signature of the Agreement on Air Transport between the European Union and its Member States, of the one part, and the Federative Republic of Brazil, of the other part


EXPLANATORY MEMORANDUM

1. Context of the proposal |

Grounds for and objectives of the proposal The Agreement on Air Transport between the European Union and its Member States, of the one part, and the Federative Republic of Brazil (hereinafter referred to as Brazil), of the other part has been negotiated by the Commission as authorised by the Council in October 2010. Air services between the EU and Brazil presently operate on the basis of bilateral agreements between individual Member States and Brazil. It is part of the EU's external aviation policy to negotiate comprehensive air services agreements with key partners where the added value and economic benefits of such agreements have been demonstrated. The Agreement aims at: - gradual market opening in terms of access to routes and capacity on a reciprocal basis; - promoting air services based on competition among air carriers with minimum government interference and regulation; - non-discrimination and level playing field for economic operators; - promoting regulatory cooperation and, to the extent practical, harmonisation of regulations and approaches. |

General context The negotiating directives set out the general objective of negotiating a comprehensive air transport agreement with the aim of gradually and reciprocally opening market access and ensuring regulatory convergence. In accordance with the negotiating directives, a draft Agreement with Brazil was initialled by the two sides on 17 March 2011. |

Existing provisions in the area of the proposal The provisions of the Agreement shall prevail over the relevant provisions of the existing bilateral air services agreements between Member States and Brazil. |

Consistency with the other policies and objectives of the Union The conclusion of a comprehensive air transport agreement with Brazil is an important element in the development of the EU external aviation policy, as described in the Commission Communication COM(2005) 79 final "Developing the agenda for the Community's external aviation policy". |

2. Consultation of interested parties and impact assessment In line with Art. 218 (4) TFEU the Commission has conducted the negotiations in consultation with a special committee. In addition, it consulted interested parties throughout the process. |

Consultation of interested parties |

Consultation methods, main sectors targeted and general profile of respondents The Commission has consulted with stakeholders, in particular via the Consultative Forum comprising representatives of air carriers, airports, and labour organisations. |

Summary of responses and how they have been taken into account All comments from stakeholders were duly taken into consideration in the preparation of the Union's negotiating position. |

Collection and use of expertise |

There was no need for external expertise. |

Impact assessment The Agreement ensures the gradual opening of the EU-Brazil air transport market. A report prepared for the Commission in 2009 by consultants, estimated that a comprehensive EU-Brazil air transport agreement opening up the market could generate up to 460,000 extra passengers and consumer benefits of up to 460 million € in the first effective year of market opening. The employment impact of an EU-Brazil agreement is expected to be positive and should stimulate employment for a number of years. The total direct and indirect jobs expected to be created as a result of liberalisation is 980 (with a lower and upper bound of 870 and 1360 respectively). The report has been made available to Member States and stakeholders via the CIRCA database. The Agreement establishes a Joint Committee which will be responsible for reviewing the implementation of the Agreement and its effects. |

3. Legal elements of the proposal |

Summary of the proposed action The Agreement consists of the main body including the main principles, and two annexes: Annex I on route schedule, traffic rights and operational flexibility, and Annex II on bilateral air services agreements. |

Legal basis Article 100 (2), in conjunction with Article 218 (5) of the Treaty on the Functioning of the European Union |

Subsidiarity principle The subsidiarity principle applies insofar as the proposal does not fall under the exclusive competence of the Union. |

The objectives of the proposal cannot be sufficiently achieved by the Member States for the following reason(s). |

The provisions of the Agreement will prevail over the relevant provisions of the existing arrangements made by individual Member States. The Agreement creates simultaneously for all Union air carriers equal and uniform conditions for market access, and establishes new arrangements for regulatory co-operation between the European Union and Brazil in fields essential for the safe, secure, and efficient operation of air services. These arrangements can only be achieved at Union level because they involve a number of areas of exclusive Union competence. |

Union action will better achieve the objectives of the proposal for the following reason(s). |

The Agreement allows for the simultaneous extension of its terms to the 27 Member States, applying the same rules without discrimination and benefiting all Union air carriers regardless of their nationality. These carriers will be able to operate freely from any point in the European Union to any point in Brazil which is currently not the case. |

Removal of all market access restrictions between the EU and Brazil will not only attract new entrants to the market and create opportunities to operate to underserved airports, but will also facilitate consolidation between EU air carriers. |

The Agreement secures for all EU air carriers access to commercial opportunities, such as the possibility to freely establish prices. One further objective of the mandate is to create a level playing field between all EU and Brazil air carriers, and this requires strong regulatory co-operation which can only be delivered at Union level. Finally, a key objective of the mandate was to create a framework for addressing and resolving 'doing business' obstacles faced by EU carriers in Brazil. The Union will have more leverage in seeking to resolve these problems than is possible at national level. |

The proposal therefore complies with the subsidiarity principle. |

Proportionality principle The proposal complies with the proportionality principle for the following reason(s). |

A Joint Committee will be established to discuss matters related to the implementation of the Agreement. The Joint Committee will foster expert-level exchanges on new legislative or regulatory initiatives or developments and consider potential areas for further development of the Agreement. The Joint Committee will be composed of representatives of the Commission and the Member States. |

Furthermore, Member States will continue to carry out the traditional administrative tasks they execute in the context of international air transport, but under common rules applied uniformly. |

Choice of instruments |

Proposed instruments: international agreement |

Other means would not be adequate for the following reason(s). External aviation relations can only be given effect through international agreements. |

4. Budgetary implication |

The proposal has no implication for the Union budget. |

2011/0110 (NLE)

Proposal for a

COUNCIL DECISION

on the signature of the Agreement on Air Transport between the European Union and its Member States, of the one part, and the Federative Republic of Brazil, of the other part

THE COUNCIL OF THE EUROPEAN UNION

Having regard to the Treaty on the Functioning of the European Union and in particular Article 100 (2), in conjunction with Article 218 (5) thereof

Whereas

1. the Commission has negotiated on behalf of the Union and of the Member States an Agreement on Air Transport with the Federative Republic of Brazil (hereinafter, the “Agreement”) in accordance with the Council Decision of 15 October 2010 authorising the Commission to open negotiations. The negotiations were successfully concluded by the initialling of the Agreement on 17 March 2011;

2. the Agreement should be signed, on behalf of the European Union, subject to its conclusion at a later date;

HAS DECIDED AS FOLLOWS:

Contents

Article 1 - Signature

1. The President of the Council is hereby authorised to designate the person(s) empowered to sign the Agreement on Air Transport between the European Union and its Member States, of the one part, and the Federative Republic of Brazil, of the other part

The text of the Agreement is annexed to this Decision.

Article 2 - Joint Committee

1. Representatives of the European Union and the Member States shall be represented in the Joint Committee established under Article 21 of the Agreement.

2. The European Union shall be represented in the Joint Committee by the Commission

3. The position to be taken by the European Union and its Member States within the Joint Committee with respect to matters of exclusive competence of the EU that do not require the adoption of a decision having legal effect will be established by the Commission and will be notified in advance to the Council and the Member States.

4. For Joint Committee decisions concerning matters that fall within the competence of the EU, the position to be taken by the European Union and its Member States will be adopted by the Council, acting by qualified majority on a proposal from the Commission, unless the applicable voting procedures set down in the EU Treaties provide otherwise.

5. For Joint Committee decisions concerning matters that fall within Member States' competence, the position to be taken by the European Union and its Member States will be adopted by the Council, acting by unanimity, on a proposal from the Commission or from Member States, unless a Member State has informed the General Secretariat of the Council within one month of the adoption of that position that it can only consent to the decision to be taken by the Joint Committee with the agreement of its legislative bodies.

Article 3 - Settlement of Disputes

1. The Commission shall represent the Union in dispute settlement proceedings under Article 22 of the Agreement.

2. Any appropriate action to be taken under Article 22 of the Agreement on matters which fall within the Union competence shall be decided upon by the Commission, in consultation with a Special Committee of representatives of the Member States appointed by the Council.

Article 4 - Information to the Commission

1. Member States shall inform in advance the Commission of any decision to refuse, revoke, suspend or limit the authorisation of an airline of the Federative Republic of Brazil that they intend to adopt under Article 5 of the Agreement.

2. Member States shall inform the Commission immediately of any requests or notifications made or received by them under Article 7 (Safety) of the Agreement.

3. Member States shall inform the Commission immediately of any requests or notifications made or received by them under Article 8 (Aviation security) of the Agreement.