*EPF210 05/01/01
Text: U.S. Signs First Multilateral Open Skies Agreement
(Agreement with Brunei, Chile, New Zealand, Singapore) (1280)
The United States and four Pacific Rim countries have signed the first multilateral "Open Skies" agreement.
U.S. Transportation Secretary Norman Mineta signed the agreement May 1 in Washington with top officials from Brunei, Chile, New Zealand and Singapore.
Open Skies agreements permit unrestricted service by the airlines of each side to, from and beyond the other's territory, without restrictions on where carriers fly, the number of flights they operate and the prices they charge.
"With this historic agreement we are beginning to move beyond the current system of bilateral aviation agreements and into the international aviation environment of the twenty-first century," Mineta said in a May 1 press release.
The four countries agreed in principle to the new multilateral agreement in November 2000 at the summit meeting of the Asia-Pacific Economic Cooperation forum in Brunei.
Following is the Department of Transportation's May 1 press release about the agreement and Secretary Mineta's remarks at the May 1 signing ceremony:
(begin press release)
United States, Four Aviation Partners
Enter Multilateral Open Skies Agreement
U.S. Transportation Secretary Norman Y. Mineta and his counterparts from four Pacific Rim aviation partners today marked the beginning of a new era in the liberalization of international aviation as they signed the first multilateral agreement based on "Open-Skies" principles.
Signing the multilateral Open-Skies agreement at a ceremony in Washington were Secretary Mineta, Minister of Communications Pehin Dato Haji Zakaria bin DMW Haji Sulaiman of Brunei Darussalam, Ambassador to the Organization of American States Estaban Tomic of Chile, Minister for Trade Negotiations and Minister of Agriculture Jim Sutton of New Zealand, and Minister for Communications and Information Technology Yeo Cheow Tong of Singapore.
"With this historic agreement we are beginning to move beyond the current system of bilateral aviation agreements and into the international aviation environment of the twenty-first century," Mineta said. "It is especially significant that this new agreement involves the growing, strategically important Pacific Rim market. We invite other nations to join us in this effort to expand markets and break down barriers to trade."
The United States currently has bilateral Open-Skies agreements with 52 aviation partners, including the four countries joining it in the new multilateral agreement. Open-Skies agreements permit unrestricted service by the airlines of each side to, from and beyond the other's territory, without restrictions on where carriers fly, the number of flights they operate, and the prices they charge. The agreement signed today provides for similar liberalization for all flights among the five countries for these countries' carriers.
The five countries initialed and announced that they had agreed in principle to the new multilateral "Open-Skies" agreement on Nov. 15, 2000 at the summit meeting of the Asia-Pacific Economic Cooperation group in Brunei.
The multilateral agreement will offer three important benefits:
Provide a Competition-Enhancing Model for Future Agreements: The multilateral agreement mirrors the enormously successful U.S. Open-Skies bilateral agreements, which permit unrestricted international air service between the United States and each bilateral partner. By expanding the Open-Skies model to the multinational level, the new agreement helps set the terms for the global marketplace and promotes the U.S. Open-Skies approach as an international standard to work towards.
Expand Carrier Access to Equity Financing: Most bilateral agreements require that substantial ownership of each country's carriers be vested in that carrier's homeland nationals. However, this requirement had made it difficult for many foreign carriers, which do not have access to large domestic capital markets, to obtain cross-border financing. The multilateral agreement substantially liberalizes the traditional ownership requirement, thus enhancing foreign carriers' access to outside investment.
Streamline International Aviation Relations: Aviation is currently governed by thousands of bilateral agreements between more than 180 countries. The multilateral agreement will provide a single, streamlined mechanism for broader exchanges of aviation opportunities. By joining one multilateral agreement, countries can avoid prolonged negotiation of numerous individual bilateral agreements.
The text of the multilateral agreement is available on the Internet at http://www.state.gov/e/eb/tra/index.cfm?id=661.
(end press release)
(begin remarks)
REMARKS FOR THE HONORABLE NORMAN Y. MINETA
SECRETARY OF TRANSPORTATION
MULTILATERAL AGREEMENT ON THE LIBERALIZATION OF INTERNATIONAL AIR TRANSPORTATION SIGNING CEREMONY, MAY 1, 2001 2:00 PM
Thank you very, very much and good afternoon. It is indeed an honor to stand with the ministers and ambassadors of these four APEC nations to sign the landmark Multilateral Agreement on the Liberalization of International Air Transportation.
President Bush sends warm words of welcome and extends his congratulations to all of you on today's historic signing. He wants you to know that the Bush Administration is committed to expanding trade between the United States and its global partners and looks forward to working with each of you to advance that effort.
On behalf of President Bush and Vice President Cheney let me welcome Minister Zakaria (zah-CAH-ree-ah) and Ambassador Puteh representing Brunei; Ambassador Tomic (THO-mic) representing Chile; Minister Sutton and Ambassador Bolger representing New Zealand; and Minister Yeo (Yo) and Ambassador Chan representing Singapore.
The process leading up to this historic agreement began six years ago and I applaud the vision and commitment of your countries in making today's signing possible. We invite other like-minded nations to follow your lead and join us in this effort to expand markets and break down barriers of trade.
Let me also acknowledge several people without whose guidance and leadership we could not be here today; former Secretary of Transportation, Rodney E. Slater, as well as the two individuals who led the multilateral negotiations, Edward Oppler, Deputy Director of the Department's Office of International Aviation, and from the State Department, former Deputy Assistant Secretary for Transportation Affairs, Allan Mendelsohn.
Our progress today toward liberalizing aviation services of the Pacific Rim is the culmination of much hard work and many rounds of talks. And I thank each one of you for all of your work to make this landmark agreement a reality.
Today's signing ceremony marks the beginning of a new era in international aviation markets between our nations.
With this open Skies Multilateral Agreement, we are beginning to move beyond the current system of bilateral aviation agreements and into the international aviation environment of the twenty-first century -- one in which groups of nations agree to free trade in aviation services, thereby avoiding prolonged negotiations of individual bilateral agreements.
This Agreement, which expands the Open Skies model to the multinational level, eliminates all significant operating restrictions for all flights among the five countries, and breaks new ground by substantially liberalizing traditional ownership rules, thus enhancing carriers' access to capital.
It is especially significant that this new agreement involves the growing, strategically important Pacific Rim market. No region holds forth more promise for trade and expansion than the Pacific Rim.
Globalization is erasing many of the boundaries that used to define transportation's reach. The world economy today is fifteen times the size it was 40 years ago. And transportation has played a major role in this trade-driven expansion, because without transportation, there is no trade.
Aviation is a driving force, not only for expanded trade -- but also for strengthening the connections between our people in the form of educational, scientific and cultural exchange.
Asia and the Americas see a future of great opportunity in this new century. For without cooperation among nations, we could never prosper and grow. With it, our nations together, can provide greater opportunities for all of their people. This agreement we are signing today is a noteworthy example of that cooperation.
Thank you very much.
(end remarks)
(Distributed by the Office of International Information Programs, U.S.
Department of State. Web site: http://usinfo.state.gov)
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