Explanatory Memorandum to COM(2006)145-2 - Conclusion of the Euro-Mediterranean Aviation Agreement with Morocco

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CONTEXT OF THE PROPOSAL

Grounds for and objectives of the proposal The Euro-Mediterranean Aviation Agreement between the European Community and the Kingdom of Morocco has been negotiated under a mandate received from the Council in December 2004.

General context Based on the negotiating directives of the mandate, the text of the Morocco agreement was agreed ad referendum at the final negotiating round on 14 December 2005 and initialled by Vice-president Barrot and Mr. Ghellab, Minister for equipment and transport of Morocco, on the occasion of the first Euromed conference of Transport Ministers held in Marrakech on 15 December 2005. The signature of the agreement is foreseen for the first half of 2006.

Existing provisions in the area of the proposal There are no existing provisions in the area of the proposal.

Consistency with the other policies and objectives of the Union The Morocco agreement is the very first step in the process of strengthening the aviation relations between the European Community and the countries neighbouring the EU, as set out in Commission Communication COM(2005) 79 final "Developing the agenda for the Community's external aviation policy".

3.

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT


Consultation of interested parties

Consultation methods, main sectors targeted and general profile of respondents All throughout the negotiating process, the Commission has been assisted by a Consultative Forum representing the industry that has been involved actively.

Summary of responses and how they have been taken into account More than 6 meetings have been held with the Consultative forum, where the then current draft of the agreement was provided. All comments have been duly taken into consideration.

4.

Collection and use of expertise


There was no need for external expertise.

Impact assessment The agreement shall be instrumental in achieving the highest possible degree of convergence between Morocco and the European Union on matters of economic, social and environmental relevance in the aviation sector: Economic: the agreement provides for the adoption by Moroccan carriers of the same standards applied by Community carriers on matters of safety, security and competition; Environment: all environmental regulations applicable to the aviation sector will be also adopted by Morocco; Social: Morocco will also adopt European standards on social matters pertaining to aviation. Safeguard provisions are foreseen in the agreement to allow for quick action should any deviation happen.

1.

LEGAL ELEMENTS OF THE PROPOSAL



Summary of the proposed action Due to the advance status of the relationship between Morocco and the European Union, the Morocco agreement will result in the seamless integration of the Moroccan transport market into the single European market through a two-stage approach, always based on the three pillars of the aviation external policy: regulatory convergence (integration of the EC aviation regulations, participation in the Single European Sky) assorted with targeted technical assistance (through instruments such as the PAST), leading to the highest possible degree of market opening. This would result in an unrestricted commercial environment where operators are free to take commercial decisions, and where they operate under the highest standards in the areas of aviation safety, aviation security, environmental and consumer protection.

Legal basis Article 80 i, in conjunction with the first sentence of the first subparagraph of Article 300 i and Article 300 i thereof

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

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

The Euro-Mediterranean agreement in the field of aviation between the Community and the Kingdom of Morocco is not merely an agreement to open markets between the two parties but also includes an extensive alignment of aviation legislation with key parts of the Community rules and regulations, including on safety, economic regulation and in particular competition laws, air traffic management and consumer protection. The agreement would also offer a gradual opening of market access between Morocco and the EU, providing substantial opportunities for passengers and industry on both sides. Finally, this agreement provides a concrete example of what can be achieved within the Euro-Mediterranean partnership

Community 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 25 Member States, applying the same rules without discrimination and benefiting all Community air-carriers regardless of their nationality. These carriers can now operate freely from any point in the European Union to any point in Morocco.

Market opportunities will also increase: with a Moroccan population of around 31 million and an EU population of 450 million, current annual growth of air traffic is already around 7%. Removal of all capacity limitations between Morocco and the EU may also attract new entrants to the market and create opportunities to operate to underserved airports. New rights in code-sharing and wet-lease will provide further opportunities to the carriers and develop the market.

Furthermore, the alignment of aviation legislation can only be achieved at Community level, since Community rules and regulations are included in the scope of the agreement.

The proposal therefore complies with the subsidiarity principle.

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

From Phase 1, a joint body is established to discuss matters related to the implementation of the Agreement as well as decide the integration of new legislation into it. The Joint Committee will seek for the evolution of the Agreement, address social issues and economic proposals on ownership and control. 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.

5.

Choice of instruments


Proposed instruments: other.

Other means would not be adequate for the following reason(s). Bilateral aviation relations can only be instrumented in international agreements.

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BUDGETARY IMPLICATION



The proposal has no implication for the Community budget.

6.

ADDITIONAL INFORMATION


Simulation, pilot phase and transitory period

There was or there will be a transitory period for the proposal.

European Economic Area The proposed act concerns an EEA matter and should therefore extend to the European Economic Area.

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1. Proposal for a


DECISION OF THE COUNCIL AND THE REPRESENTATIVES OF THE GOVERNMENTS OF THE MEMBER STATES OF THE EUROPEAN UNION, MEETING WITHIN THE COUNCIL

On the signature and provisional application of the Euro-Mediterranean Aviation Agreement between the European Community and its Member States, on the one hand, and the Kingdom of Morocco, on the other hand (Text with EEA relevance)

THE COUNCIL OF THE EUROPEAN UNION AND THE REPRESENTATIVES OF THE GOVERNMENTS OF THE MEMBER STATES MEETING WITHIN THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community and in particular Article 80 i, in conjunction with the first sentence of the first subparagraph of Article 300 i and Article 300 i thereof

8.

Whereas


2. The Commission has negotiated on behalf of the Community and of the Member States an Euro-Mediterranean Aviation Agreement with the Kingdom of Morocco (hereinafter, “the Agreement”);

3. An agreement was initialled on at Marrakech on 14 December 2005;

4. the Agreement should be signed and applied provisionally by the Community and the Member States, subject to its possible conclusion at a later date;

5. It is necessary to lay down procedural arrangements for the participation of the Community and the Member States in the Joint Committee set up under Article 21 of the Agreement and in the arbitration procedures provided in Article 22 of the Agreement, as well as for implementing certain provisions of the Agreement, including those concerning the adoption of safeguard measures, the granting and revocation of traffic rights, and certain safety and security matters.

9.

HAVE DECIDED AS FOLLOWS


Article 1 (Signature)

Subject to a possible conclusion at a later date, the President of the Council is hereby authorised to designate the person empowered to sign, on behalf of the Community, the Euro-Mediterranean Aviation Agreement between the European Community and its Member States, of the one part, and the Kingdom of Morocco, of the other part. The text of the Agreement is attached to this decision.

10.

Article 2 (Provisional application)


Pending its entry into force, the Agreement shall be applied on a provisional basis by the Community and by the Member States from the date of signature.

11.

Article 3 (Joint Committee)


1. The Community and the Member States shall be represented in the Joint Committee established under Article 21 of the Agreement by representatives of the Commission and of the Member States.

2. The position to be taken by the Community and the Member States within the Joint Committee as regards the amendment of the Annexes of the Agreement, any matters falling within Article 6 or 7 of the Agreement or any other matter of exclusive Community competence shall be established by the Commission. In all other instances, the Community position shall be established by the Council, acting by qualified majority on a proposal from the Commission.

3. The position of the Community and of the Member States within the Joint Committee shall be presented by the Commission.

12.

Article 4 (Arbitration)


1. The Commission shall represent the Community and the Member States in arbitration proceedings under Article 22 of the Agreement.

2. A decision to suspend the application of benefits pursuant to Article 22 i of the Agreement shall be taken by the Council on the basis of a Commission proposal. The Council shall decide by qualified majority.

3. Any other appropriate action to be taken under Article 22 of the Agreement on matters of exclusive competence of the Community shall be decided by the Commission, with the assistance of a Special Committee of representatives of the Member States appointed by the Council.

13.

Article 5 (Safeguard measures)


1. A decision to take safeguard measures pursuant to Article 23 of the Agreement shall be taken, on its own initiative or upon a request from a Member State, by the Commission, which shall be assisted by a special Committee of representatives of the Member States appointed by the Council.

2. Where a Member State requests the Commission to apply safeguard measures, it shall provide the Commission, in support of its request, with the information needed to justify it. The Commission shall take a decision on such request within one month or, in cases of urgency, within 10 working days, and inform the Council and the Member States of its decision. Any Member State may refer the decision of the Commission to the Council within 10 working days of its notification. The Council may take a different decision within one month of the referral. The Council shall decide by qualified majority.

14.

Article 6 (Traffic rights)


1. Member States shall inform in advance the Commission of any decision that they intend to adopt under Articles 3 or 4 of the Agreement.

2. If the Commission determines at any time that a decision which a Member State has adopted, or intends to adopt, under Articles 3 or 4 of the Agreement is incompatible with the Agreement it shall address a decision to that Member State requiring it to take appropriate action in order to comply with the Agreement. The Commission shall inform the Council and the other Member States of such decision. Any Member State may refer the decision of the Commission to the Council within 10 working days from its notification. The Council may take a different decision within one month of the referral. The Council shall decide by qualified majority.

15.

Article 7 (Safety)


Member States shall inform the Commission immediately of any requests or notifications made or received by them under Article 13 of the Agreement.

16.

Article 8 (Security)


Member States shall inform the Commission immediately of any requests or notifications made or received by them under Article 14 of the Agreement.

Done at Brussels,

17.

For the Council


The President