Explanatory Memorandum to COM(2013)423 - Signing and provisional application of the Agreement with the Government of Peru on certain aspects of air services

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

1. CONTEXT OF THE PROPOSAL

• Grounds for and objectives of the proposal

Following the judgements of the Court of Justice in the so-called “Open Skies” cases, on 5 June 2003 the Council authorized the Commission to open negotiations with third countries on the replacement of certain provisions in existing agreements with an agreement at Union level (the “horizontal mandate”). The objectives of such agreements are to give all European Union air carriers non-discriminatory access to routes between the European Union and third countries, and to bring bilateral air service agreements between Member States and third countries in line with the law of the Union.

• General context

International aviation relations between Member States and third countries have traditionally been governed by bilateral air services agreements between Member States and third countries, the Annexes to such agreements and other related bilateral or multilateral arrangements.

Traditional designation clauses in Member States’ bilateral air services agreements infringe the law of the Union. They allow a third country to reject, withdraw or suspend the permissions or authorisations of an air carrier that has been designated by a Member State but that is not substantially owned and effectively controlled by that Member State or its nationals. This has been found to constitute discrimination against European Union carriers established in the territory of a Member State but owned and controlled by nationals of other Member States. This is contrary to Article 49 of the Treaty on the Functioning of the European Union which guarantees nationals of Member States who have exercised their freedom of establishment the same treatment in the host Member State as that accorded to nationals of that Member State.

• Existing provisions in the area of the proposal

The provisions of the Agreement supersede or complement the existing provisions in the 12 bilateral air services agreements between Member States and the Republic of Peru.

• Consistency with the other policies and objectives of the Union

The Agreement will serve a fundamental objective of the external aviation policy of the Union by bringing existing bilateral air services agreements in line with the law of the Union.

1.

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENTS



• Consultation of interested parties

Consultation methods, main sectors targeted and general profile of respondents

Member States as well as the industry were consulted throughout the negotiations.

Summary of responses and how they have been taken into account

Comments made by Member States and the industry have been taken into account.

2.

LEGAL ELEMENTS OF THE PROPOSAL



• Summary of the proposed action

In accordance with the mechanisms and directives in the Annex to the ”horizontal mandate”, the Commission has negotiated an agreement with the Republic of Peru that replaces certain provisions in the existing bilateral air services agreements between Member States and the Republic of Peru. Article 2 of the Agreement replaces the traditional designation clauses with an EU designation clause, permitting all EU carriers to benefit from the right of establishment. Article 5 resolves potential conflicts with the competition rules of the Union.

• Legal basis

Art. 100 i, 218(5) TFEU

• Subsidiarity principle

The proposal is entirely based on the “horizontal mandate” granted by the Council taking into account the issues covered by the law of the Union and bilateral air services agreements.

• Proportionality principle

The Agreement will amend or complement provisions in bilateral air services agreements only to the extent necessary to ensure compliance with the law of the Union.

• Choice of instruments

The Agreement between the Union and the Republic of Peru is the most efficient instrument to bring all existing bilateral air services agreements between Member States and the Republic of Peru into conformity with the law of the Union.

3.

BUDGETARY IMPLICATION



The proposal has no implication for the budget of the Union.

5. OPTIONAL ELEMENTS

• Simplification

The proposal provides for simplification of legislation.

The relevant provisions of bilateral air services agreements between Member States and the Republic of Peru will be superseded or complemented by provisions in one single agreement of the Union.

• Detailed explanation of the proposal

In accordance with the standard procedure for the signing and conclusion of international agreements, the Council is asked to approve the decision on signature and provisional application of the Agreement on certain aspects of air services between the European Union and the Republic of Peru.