Explanatory Memorandum to 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 - Main contents
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| 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 ... |
|---|---|
| source | COM(2011)253  |
| date | 06-05-2011 |
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 i 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.
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.
The proposal has no implication for the Union budget.