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The European Union (EU) proposed on Tuesday to open negotiations with Canada on a comprehensive aviation agreement establishing an open aviation area between the two sides free of market restrictions.

 

The envisaged deal will create significant benefits for consumers and the industry alike, and restore legal certainty for air services between the EU and Canada, the European Commission said in a statement Tuesday.

 

Air traffic between the EU and Canada, a leading aviation partner of the EU, has doubled between 2000 and 2005 and a study showed that the number of passengers between the two sides would grow from the current 8 million to 14 million by 2011.

 

An open aviation area may generate consumer benefits of 72 million euros through lower fares and could create 3,700 jobs in the first year, the commission said.

 

Jacques Barrot, the European Commission's vice-president in charge of transport, said the deal would facilitate the travel of people and goods between the EU and Canada and will establish a high level of regulatory standards, particularly in safety and security.

 

Canada currently has bilateral air services agreements with 17 EU member states, but all these deals violate EU law. A new agreement with Canada at the EU level would solve the problem and create the basis for connections between all EU states and Canada.

The European Commission has to get the endorsement of EU member states to be able to launch talks.

 

The EU executive has already received a mandate for the creation of a transatlantic open aviation area with the United States, and for the development of a common aviation area with Ukraine.

 

But negotiations with the United States were stalled late last year when Washington withdrew a proposal to ease restrictions on overseas investment in US airlines.

 

An American delegation will meet EU officials in Brussels on Wednesday and Thursday to see if a less ambitious deal can be signed.

 

(Xinhua News Agency January 10, 2007)