PURPOSE: to conclude the Agreement between the European Community and the Republic of Panama on certain aspects of air services.

LEGISLATIVE ACT: Council Decision 2008/305/EC on the conclusion of the Agreement between the European Community and the Republic of Panama on certain aspects of air services.

CONTENT: on 5 June 2003, the Council authorised the Commission to open negotiations with third countries on the replacement of certain provisions in existing bilateral agreements with a Community agreement. The Commission has negotiated, on behalf of the Community, an Agreement with Panama on certain aspects of air services in accordance with the mechanisms and directives in the Annex to the Council Decision authorising the Commission to open negotiations with third countries on the replacement of certain provisions in existing bilateral agreements with a Community agreement.

The Agreement was signed on 1 October 2007 subject to its possible conclusion at a later date.

The objective of the new agreements is to give all EU air carriers non-discriminatory access to routes between the Community and third countries and to bring bilateral air service agreements between Member States and third countries in line with Community law.

In summary, the Agreement:

replaces the traditional designation clauses with a Community designation clause (Article 2). This permits all Community carriers to benefit from the right of establishment; addresses the issue of safety, within the context of Community designations (Articles 4 and 5); addresses the matter of aviation fuel taxation (Article 4) (a matter which has been harmonised by Council Directive 2003/96/EC); resolves conflicts between the existing bilateral air services agreements and Council Regulation (EC) No 2409/92 on fares and rates for air services which prohibits third country carriers from being price leaders on air services for carriage wholly within the Community (Article 5); resolves potential conflicts with EC competition rules (Article 6).

The European Parliament adopted a resolution drafted by Paolo COSTA (ALDE, IT) by 480 votes in favour to 8 against with 10 abstentions and approved the conclusion of the agreement between the EC and Panama on certain aspects of air services.

The Committee on Transport and Tourism adopted a report drafted by Paolo COSTA (ALDE, IT) and approved the conclusion of the agreement between the EC and Panama on certain aspects of air services.

PURPOSE: i) to sign a provisional application of an Agreement between the Community and the Republic of Panama on certain aspects of air services and ii) to conclude the Agreement.

PROPOSED ACT: Council Decision.

BACKGROUND: since 2003, when the European Court of Justice delivered the “Open Skies” cases, the Commission had been granted a mandate by the Council to open negotiations with third countries to replace certain provisions in existing bi-lateral agreements; the latter being contrary to basic EU law. The objective of the new agreements is to give all EU air carriers non-discriminatory access to routes between the Community and third countries and to bring bilateral air service agreements between Member States and third countries in line with Community law.

CONTENT: the purpose of this proposal is to sign and conclude such an agreement on certain aspects of air services between the Community and the Republic of Panama. In summary, the Agreement negotiated by the Commission:

- replaces the traditional designation clauses with a Community designation clause. This permits all Community carriers to benefit from the right of establishment;

- addresses the issue of safety, within the context of Community designations;

- addresses the matter of aviation fuel taxation (a matter which has been harmonised by Council Directive 2003/96/EC);

- resolves conflicts between the existing bilateral air services agreements and Council Regulation (EC) No 2409/92 on fares and rates for air services which prohibits third country carriers from being price leaders on air services for carriage wholly within the Community; and

- resolves potential conflicts with EC competition rules.

In accordance with the standard procedure for the signature and conclusion of international agreements, therefore, the Council is asked to approve the proposed Decisions.

PURPOSE: i) to sign a provisional application of an Agreement between the Community and the Republic of Panama on certain aspects of air services and ii) to conclude the Agreement.

PROPOSED ACT: Council Decision.

BACKGROUND: since 2003, when the European Court of Justice delivered the “Open Skies” cases, the Commission had been granted a mandate by the Council to open negotiations with third countries to replace certain provisions in existing bi-lateral agreements; the latter being contrary to basic EU law. The objective of the new agreements is to give all EU air carriers non-discriminatory access to routes between the Community and third countries and to bring bilateral air service agreements between Member States and third countries in line with Community law.

CONTENT: the purpose of this proposal is to sign and conclude such an agreement on certain aspects of air services between the Community and the Republic of Panama. In summary, the Agreement negotiated by the Commission:

- replaces the traditional designation clauses with a Community designation clause. This permits all Community carriers to benefit from the right of establishment;

- addresses the issue of safety, within the context of Community designations;

- addresses the matter of aviation fuel taxation (a matter which has been harmonised by Council Directive 2003/96/EC);

- resolves conflicts between the existing bilateral air services agreements and Council Regulation (EC) No 2409/92 on fares and rates for air services which prohibits third country carriers from being price leaders on air services for carriage wholly within the Community; and

- resolves potential conflicts with EC competition rules.

In accordance with the standard procedure for the signature and conclusion of international agreements, therefore, the Council is asked to approve the proposed Decisions.