China has pledged to enter into air services agreement negotiations with the European Commission (EC) that could eventually lead to national bilaterals being replaced by a deal at European Union (EU) level.

The pledge was made at the end of June at a high-level EC-China Aviation Summit in the Chinese capital. In a joint declaration signed by Civil Aviation Administration of China (CAAC) minister Yang Yuanyuan and EC transport chief Jacques Barrot, the two sides agreed to engage “as a matter of priority” in formal negotiations over Europe’s requirement that nationality clauses be removed from bilateral air services accords of member states with other countries.

Yang said in the declaration that China expects to be in a position to start the negotiations later this year. “In anticipation of such formal negotiations, a preparatory meeting will be held in early September 2005 between the services of the EC, the representatives of CAAC and Chinese carriers, during which the Commission will provide further clarification,” the declaration reads. “Following this meeting and the completion of extensive analysis of this issue, CAAC expects to be in a position to start negotiations with the EU in the fourth quarter of 2005. The parties will seek to conclude an agreement at the earliest possible date thereafter based on the principles of equality and mutual benefits.”

The EC has been seeking to remove nationality clauses from the bilateral air services agreements of EU member states since they were outlawed by the European Court of Justice in 2002 in a key ruling. Barrot says he is hopeful the Chinese government would agree to talks in this area “to provide legal certainty to all operating airlines”.

“One of our priorities is to make sure that our aviation relations are founded on a sound legal basis,” he says. “Bilateral air services agreements between EU member states and most third countries, including China, are not in conformity with Community law. They need to be amended in order to provide legal certainty to all operating airlines…I am confident that we will be able to resolve it very soon.”

While Barrot used the Aviation Summit to press for China to agree to remove these nationality clauses from existing bilaterals with individual EU states, the gathering also provided a platform for European delegates to make early calls for China to consider negotiations for a highly liberal EU-wide air services accord.

The EC has made such an agreement with China one of its top external aviation policy priorities and in March said it was seeking a mandate from EU ministers to begin negotiations. Such an agreement would replace the 22 air services agreements China has with EU member states.

According to Barrot: “Resolving the outstanding legal issues should…be a first step. We should dedicate our time and energy to the negotiation of a broader, global EU-China agreement.”

China has not said whether it will be willing to enter into such negotiations, but Yang pledged in the joint declaration with Barrot: “An exploratory dialogue between China and the EC in this respect will start when considered most appropriate by both sides.”

NICHOLAS IONIDES BEIJING

Source: Airline Business