This Decision shall enter into force on the day of its adoption. It shall be published in the Official Journal of the European Union.

The Accession Agreement and the Ancillary Agreement shall be applied provisionally from the date of signing, pending their entry into force.

The text of the Accession Agreement and of the Ancillary Agreement are annexed to this Decision.

The President of the Council is hereby authorised to designate the person(s) empowered to sign, on behalf of the Union the Air Transport Agreement between the United States of America, of the first part, the European Union and its Member States, of the second part, Iceland, of the third part, and the Kingdom of Norway, of the fourth part, and the Ancillary Agreement between the European Union and its Member States, of the first part, Iceland, of the second part, and the Kingdom of Norway, of the third part, on the application of the Air Transport Agreement between the United States of America, of the first part, the European Union and its Member States, of the second part, Iceland, of the third part, and the Kingdom of Norway, of the fourth part.

(7)In view of these circumstances, the Council should adopt the present Decision on the signing and provisional application of the Accession Agreement and the Ancillary Agreement, subject to their conclusion at a later date.

(6)In its judgment of 28 April 2015 in case C-28/12, Commission v Council, the European Court of Justice annulled the decision by which the Council authorized in one act, together with the representatives of the governments of the Member States meeting within the Council, the signing and the provisional application of the Accession Agreement and the Ancillary Agreement thereto. It maintained the effects of Decision 2011/708/EU "until the entry into force, within a reasonable period from the delivery of the present judgment, of a new decision that is to be adopted by the Council of the European Union pursuant to Article 218(5) and (8) TFEU".

(5)On 16 June 2011 the Council and the Representatives of the Governments of the Member States of the European Union, meeting within the Council, adopted a decision on the signing and provisional application, on behalf of the Union, of the Accession Agreement and the Ancillary Agreement (Decision 2011/708/EU). Its Article 3 provided for the provisional application of both the Accession Agreement and the Ancillary Agreement from the date of signature which took place on 21 June 2011 . Since that date the two agreements are applied provisionally in full.

(4)The Commission adopted a proposal for a Council decision on signature and provisional application with respect to the Accession Agreement and the Ancillary Agreement thereto, on behalf of the Union, on 2 May 2011.

(3)The Commission has negotiated an Ancillary Agreement between the European Union and its Member States, of the first part, Iceland, of the second part, and the Kingdom of Norway, of the third part, concerning the internal arrangements for the application of the Accession Agreement (hereinafter "the Ancillary Agreement").

(2)Iceland and Norway are fully integrated members of the single European Aviation Market through the Agreement on the European Economic Area. They formally requested accession to the EU-US Air Transport Agreement in 2007. In accordance with Article 18(5) of the EU-US Air Transport Agreement, the Joint Committee established thereunder raised the idea, in its meeting of 16 November 2010, for an agreement between the United States of America, of the first part, the European Union and its Member States, of the second part, Iceland, of the third part, and the Kingdom of Norway, of the fourth part, (hereinafter "the Accession Agreement").

(1)The Air Transport Agreement between the European Community and its Member States, of the one part, and the United States of America, of the other part ("the EU-US Air Transport Agreement") was signed on 25 and 30 April 2007 and amended by a Protocol of 24 June 2010. It explicitly provides for the accession of third countries to the Air Transport Agreement.

Having regard to the proposal from the European Commission,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 100(2), in conjunction with Article 218(5) and the first subparagraph of Article 218(8) thereof,

on the signature and provisional application of the Air Transport Agreement between the United States of America, of the first part, the European Union and its Member States, of the second part, Iceland, of the third part, and the Kingdom of Norway, of the fourth part; and on the signature and provisional application of the Ancillary Agreement between the European Union and its Member States, of the first part, Iceland, of the second part, and the Kingdom of Norway, of the third part, on the application of the Air Transport Agreement between the United States of America, of the first part, the European Union and its Member States, of the second part, Iceland, of the third part, and the Kingdom of Norway, of the fourth part

The present amended proposal does not address the elements related to i) Consultations of interested parties & impact assessment ii) the legal elements, iii) Budgetary implications which were already provided in detail in the original Commission proposal (COM(2011)239final).

The objective of extending the EU-US Air Transport Agreement to third countries is explicitly foreseen in the EU-US Air Transport Agreement. It does not establish an external dimension to the European Economic Area Agreement. It is consistent with the EU's overall policy towards Iceland and Norway.

Consistency with the other policies and objectives of the Union

The accession of Iceland and Norway to the EU-US Air Transport Agreement could be a precedent for the accession of Iceland and Norway to other aviation agreements of the Union (e.g. Euro-Mediterranean Aviation Agreement with Morocco).

The EU-US Air Transport Agreement has created uniform conditions for market access for all Union air carriers, and has established new arrangements for regulatory co-operation between the European Union and the US in fields essential for the safe, secure, and efficient operation of transatlantic air services. Norway and Iceland have adopted the complete EU acquis in aviation policy. Therefore, including both countries in the scope of the EU-US Air Transport Agreement will ensure that all European air carriers applying the EU acquis will operate transatlantic air services in a harmonised framework.

The EU-US Air Transport Agreement has removed all commercial barriers for flights between any point in the EU and any point in the US. In addition, the US has granted so-called 7th freedom rights to EU air carriers to operate between the US and non-EU countries of the European Common Aviation Area (ECAA), such as Norway and Iceland. However, the ECAA has no external dimension. Therefore, EU air carriers do currently not have the right to operate flights between Norway and Iceland and third countries. In the same way, Norwegian and Icelandic air carriers do currently not have the right to operate between the EU and the US.

While the original Commission proposal (COM(2011)239final) was adopted fully in line with Articles 218 (2), (5) and (8) TFEU, the Commission deems it expedient to update its proposal.General context

In its judgment of 28 April 2015 in case C-28/12, Commission v Council, the ECJ annulled Decision 2011/708/EU but maintained its effects "until the entry into force, within a reasonable period from the delivery of the present judgment, of a new decision that is to be adopted by the Council of the European Union pursuant to Article 218(5) and (8) TFEU". The Court stated that the contested decision was adopted under a procedure which involved without distinction elements falling within the decision-making process specific to the Council and elements of an intergovernmental nature (para 51). It concluded that, for this reason, the contested decision was not compatible with Article 218(2), (5) and (8) TFEU and, therefore, with Article 13(2) TEU (para 53).

The Council adopted its decision on the signing and provisional application of the Accession Agreement and the Ancillary Agreement, on behalf of the Union, in one act, together with the Member States meeting within the Council, on 16 June 2011 (Decision 2011/708/EU). Its Article 3 provided for the provisional application of both the Accession Agreement and the Ancillary Agreement from the date of signature which took place on 21 June 2011. The two agreements are applied provisionally in full as from that date.

With respect to the Accession Agreement and the Ancillary Agreement, the Commission adopted a proposal for a Council decision on signature and provisional application on 2 May 2011 (COM(2011)239 final).

Article 18 (5) of the EU-US Air Transport Agreement confirms both Parties' goal of "maximising the benefits for consumers, airlines, labour and communities on both sides of the Atlantic by extending this Agreement to include third countries". Article 18 (5) of the EU-US Air Transport Agreement further asks the Joint Committee established under Article 18 (1) of the EU-US Air Transport Agreement "to develop a proposal regarding the conditions and procedures that would be required for third countries to accede to this Agreement". Norway and Iceland formally requested the accession to the EU-US Air Transport Agreement in 2007. In accordance with Article 18 (5) of the EU-US Air Transport Agreement, the Joint Committee developed in its meeting on 16 November 2010 a proposal for the accession of Iceland and Norway to the EU-US Air Transport Agreement. Consequently, an accession agreement ("the Accession Agreement") and an ancillary agreement for the internal arrangements between the Union, Norway and Iceland ("the Ancillary Agreement") were elaborated. The provisions of the Accession Agreement extend the scope of the EU-US Air Transport Agreement mutatis mutandis to Norway and Iceland. Norway and Iceland being an integral part of the European Common Aviation Area, these Agreements will ensure a consistent regulatory framework for flights between the US and the single aviation market in the EU – including Iceland and Norway. The agreement is intended to create commercial benefits for airlines and consumers in the EU and to ensure the consistency of the EU-US Air Transport Agreement with the common Scandinavian air transport policy. At the same time, the proposal ensures that the bilateral character of the EU-US Air Transport Agreement is maintained.

The Air Transport Agreement between the European Community and its Member States, of the one part, and the United States of America, of the other part ("the EU-US Air Transport Agreement") was signed on 25 and 30 April 2007 and amended by a Protocol of 24 June 2010. The EU-US Air Transport Agreement has been applied provisionally since 30 March 2008. The Amending Protocol has been applied provisionally as from 24 June 2010.

1. Context of the proposalGrounds for and objectives of the proposal

on the signature and provisional application of the Air Transport Agreement between the United States of America, of the first part, the European Union and its Member States, of the second part, Iceland, of the third part, and the Kingdom of Norway, of the fourth part; and on the signature and provisional application of the Ancillary Agreement between the European Union and its Member States, of the first part, Iceland, of the second part, and the Kingdom of Norway, of the third part, on the application of the Air Transport Agreement between the United States of America, of the first part, the European Union and its Member States, of the second part, Iceland, of the third part, and the Kingdom of Norway, of the fourth part

EUROPEAN COMMISSION Brussels, 6.9.2016 COM(2016) 552 final ANNEX to the Amended proposal for a Council decision on the signature and provisional application of the Air Transport Agreement between the United States of America, of the first part, the European Union and its Member States, of the second part, Iceland, of the third part, and the Kingdom of Norway, of the fourth part; and

on the signature and provisional application of the Ancillary Agreement between the European Union and its member States, of the first part, Iceland, of the second part, and the Kingdom of Norway, of the third part, on the application of the Air Transport Agreement between the United States of America, of the first part, the European Union and its Member States, of the second part, Iceland, of the third part, and the Kingdom of Norway, of the fourth part



ANNEX to the Amended proposal for a Council decision on the signature and provisional application of the Air Transport Agreement between the United States of America, of the first part, the European Union and its Member States, of the second part, Iceland, of the third part, and the Kingdom of Norway, of the fourth part; and

on the signature and provisional application of the Ancillary Agreement between the European Union and its member States, of the first part, Iceland, of the second part, and the Kingdom of Norway, of the third part, on the application of the Air Transport Agreement between the United States of America, of the first part, the European Union and its Member States, of the second part, Iceland, of the third part, and the Kingdom of Norway, of the fourth part



ATTACHMENT 1 Air Transport Agreement THE UNITED STATES OF AMERICA (hereinafter, the "United States"), of the first part; THE KINGDOM OF BELGIUM, THE REPUBLIC OF BULGARIA, THE CZECH REPUBLIC, THE KINGDOM OF DENMARK, THE FEDERAL REPUBLIC OF GERMANY, THE REPUBLIC OF ESTONIA, IRELAND, THE HELLENIC REPUBLIC, THE KINGDOM OF SPAIN, THE FRENCH REPUBLIC,

THE ITALIAN REPUBLIC, THE REPUBLIC OF CYPRUS, THE REPUBLIC OF LATVIA, THE REPUBLIC OF LITHUANIA, THE GRAND DUCHY OF LUXEMBOURG, THE REPUBLIC OF HUNGARY, THE REPUBLIC OF MALTA, THE KINGDOM OF THE NETHERLANDS, THE REPUBLIC OF AUSTRIA, THE REPUBLIC OF POLAND, THE PORTUGUESE REPUBLIC, ROMANIA, THE REPUBLIC OF SLOVENIA, THE SLOVAK REPUBLIC, THE REPUBLIC OF FINLAND, THE KINGDOM OF SWEDEN, THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND, being parties to the Treaty on European Union and the Treaty on the Functioning of the European Union and being Member States of the European Union (hereinafter, the "Member States"), and THE EUROPEAN UNION,

of the second part; Iceland, of the third part; and The Kingdom of Norway (hereinafter, "Norway"), of the fourth part; Desiring to promote an international aviation system based on competition among airlines in the marketplace with minimum government interference and regulation; Desiring to facilitate the expansion of international air transport opportunities, including through the development of air transportation networks to meet the needs of passengers and shippers for convenient air transportation services; Desiring to make it possible for airlines to offer the travelling and shipping public competitive prices and services in open markets; Desiring to have all sectors of the air transport industry, including airline workers, benefit in a liberalized agreement; Desiring to ensure the highest degree of safety and security in international air transport and reaffirming their grave concern about acts or threats against the security of aircraft, which jeopardize the safety of persons or property, adversely affect the operation of air transportation, and undermine public confidence in the safety of civil aviation; Noting the Convention on International Civil Aviation, opened for signature at Chicago on December 7, 1944; Recognizing that government subsidies may adversely affect airline competition and may jeopardize the basic objectives of this Agreement; Affirming the importance of protecting the environment in developing and implementing international aviation policy; Noting the importance of protecting consumers, including the protections afforded by the Convention for the Unification of Certain Rules for International Carriage by Air, done at Montreal May 28, 1999; Intending to build upon the framework of existing agreements with the goal of opening access to markets and maximizing benefits for consumers, airlines, labor, and communities on both sides of the Atlantic; Recognizing the importance of enhancing the access of their airlines to global capital markets in order to strengthen competition and promote the objectives of this Agreement; Intending to establish a precedent of global significance to promote the benefits of liberalization in this crucial economic sector; RECOGNIZING that the European Union replaced and succeeded the European Community as a consequence of the entry into force on December 1, 2009 of the Treaty of Lisbon amending the Treaty on European Union and the Treaty establishing the European Community, and that as of that date, all the rights and obligations of, and all the references to the European Community in the Air Transport Agreement signed by the European Community and its Member States and the United States of America on April 25 and 30, 2007, apply to the European Union; Have agreed as follows: Article 1

Definition "Party" means the United States, the European Union and its Member States, Iceland, or Norway. Article 2 Application of the Air Transport Agreement as amended by the Protocol and the Annex to this Agreement The provisions of the Air Transport Agreement signed by the European Community and its Member States and the United States of America on April 25 and 30, 2007 (hereinafter, "the Air Transport Agreement"), as amended by the Protocol to Amend the Air Transport Agreement signed by the United States of America and the European Union and its Member States on June 24, 2010 (hereinafter, "the Protocol"), which are hereby incorporated by reference, shall apply to all Parties to this Agreement, subject to the Annex to this Agreement. The provisions of the Air Transport Agreement, as amended by the Protocol, shall apply to Iceland and Norway as though they were Member States of the European Union, so that Iceland and Norway shall have all of the rights and obligations of Member States under that agreement. The provisions of the Annex to this Agreement form an integral part of this Agreement. ARTICLE 3 Termination 1. Either the United States or the European Union and its Member States may, at any time, give notice in writing through diplomatic channels to the other three Parties of its decision to terminate this Agreement or to end this Agreement's provisional application under Article 5. A copy of the notice shall be sent simultaneously to the International Civil Aviation Organization (ICAO). This Agreement shall terminate, or provisional application of this Agreement shall end, at midnight GMT at the end of the International Air Transport Association (IATA) traffic season in effect one year following the date of the written notification, unless the notice is withdrawn by agreement of all of the Parties before the end of this period. 2. Either Iceland or Norway may, at any time, give notice in writing through diplomatic channels to the other Parties of its decision to withdraw from this Agreement or to end its provisional application of this Agreement under Article 5. A copy of the notice shall be sent simultaneously to ICAO. Such withdrawal or cessation of provisional application shall be effective at midnight GMT at the end of the IATA traffic season in effect one year following the date of written notification, unless the notice is withdrawn by agreement of the Party giving written notice, the United States, and the European Union and its Member States before the end of this period. 3. Either the United States or the European Union and its Member States may, at any time, give notice in writing through diplomatic channels to Iceland or Norway of its decision to terminate this Agreement or to end this Agreement's provisional application, with respect to Iceland or Norway. Copies of the notice shall be sent simultaneously to the other two Parties to this Agreement and to ICAO. Termination or cessation of provisional application with respect to Iceland or Norway shall be effective at midnight GMT at the end of the IATA traffic season in effect one year following the date of written notification, unless the notice is withdrawn by agreement of the United States, the European Union and its Member States, and the Party receiving the notice, before the end of this period. 4. For purposes of the diplomatic notes contemplated by this Article, diplomatic notes to or from the European Union and its Member States shall be delivered to or from, as the case may be, the European Union. 5. Notwithstanding any other provision of this Article, if the Air Transport Agreement, as amended by the Protocol, is terminated, this Agreement shall terminate simultaneously. ARTICLE 4 Registration with ICAO This Agreement and all amendments thereto shall be registered with ICAO by the General Secretariat of the Council of the European Union. ARTICLE 5 Provisional Application Pending its entry into force, the Parties agree to provisionally apply this Agreement, to the extent permitted under applicable domestic law, from the date of signature. If the Air Transport Agreement, as amended by the Protocol, is terminated in accordance with Article 23 thereof, or its provisional application ceases in accordance with Article 25 of that agreement, or provisional application of the Protocol ceases in accordance with Article 9 of the Protocol, provisional application of this Agreement shall cease simultaneously.

ARTICLE 6 Entry into force This Agreement shall enter into force on the later of: 1. the date of entry into force of the Air Transport Agreement, 2. the date of entry into force of the Protocol, and 3. one month after the date of the last note of the exchanges of diplomatic notes among the Parties confirming that all necessary procedures for entry into force of this Agreement have been completed. For the purposes of this exchange of diplomatic notes, diplomatic notes to or from the European Union and its Member States shall be delivered to or from, as the case may be, the European Union. The diplomatic note or notes from the European Union and its Member States shall contain communications from each Member State confirming that its necessary procedures for entry into force of this Agreement have been completed. IN WITNESS WHEREOF the undersigned, being duly authorized, have signed this Agreement. DONE at………., in quadruplicate, this ………. day of …………….. FOR THE UNITED STATES OF AMERICA FOR THE KINGDOM OF BELGIUM FOR THE REPUBLIC OF BULGARIA FOR THE CZECH REPUBLIC FOR THE KINGDOM OF DENMARK FOR THE FEDERAL REPUBLIC OF GERMANY FOR THE REPUBLIC OF ESTONIA FOR IRELAND FOR THE HELLENIC REPUBLIC FOR THE KINGDOM OF SPAIN FOR THE FRENCH REPUBLIC FOR THE ITALIAN REPUBLIC

FOR THE REPUBLIC OF CYPRUS FOR THE REPUBLIC OF LATVIA FOR THE REPUBLIC OF LITHUANIA FOR THE GRAND DUCHY OF LUXEMBOURG FOR THE REPUBLIC OF HUNGARY FOR THE REPUBLIC OF MALTA FOR THE KINGDOM OF THE NETHERLANDS FOR THE REPUBLIC OF AUSTRIA FOR THE REPUBLIC OF POLAND FOR THE PORTUGUESE REPUBLIC FOR ROMANIA FOR THE REPUBLIC OF SLOVENIA FOR THE SLOVAK REPUBLIC FOR THE REPUBLIC OF FINLAND FOR THE KINGDOM OF SWEDEN FOR THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND FOR THE EUROPEAN UNION For Iceland For the Kingdom of Norway ANNEX

Specific Provisions with Respect to Iceland and Norway The provisions of the Air Transport Agreement, as amended by the Protocol, modified as follows, shall apply to all Parties to this Agreement. The provisions of the Air Transport Agreement, as amended by the Protocol, shall apply to Iceland and Norway as though they were Member States of the European Union, so that Iceland and Norway shall have all of the rights and obligations of Member States under that agreement: 1. Paragraph 9 of Article 1 of the Air Transport Agreement, as amended by the Protocol, shall read as follows: "Territory" means, for the United States, the land areas (mainland and islands), internal waters and territorial sea under its sovereignty or jurisdiction, and, for the European Union and its Member States, the land areas (mainland and islands), internal waters and territorial sea in which the Agreement on the European Economic Area is applied and under the conditions laid down in that agreement and any successor instrument, with the exception of the land areas and internal waters under the sovereignty or jurisdiction of the Principality of Liechtenstein; application of this Agreement to Gibraltar airport is understood to be without prejudice to the respective legal positions of the Kingdom of Spain and the United Kingdom with regard to the dispute over sovereignty over the territory in which the airport is situated, and to the continuing suspension of Gibraltar Airport from European Union aviation measures existing as at 18 September 2006 as between Member States, in accordance with the Ministerial statement on Gibraltar Airport agreed in Córdoba on 18 September 2006; and 2. Articles 23 to 26 of the Air Transport Agreement, as amended by the Protocol, shall not apply to Iceland and Norway. 3. Articles 9 and 10 of the Protocol shall not apply to Iceland and Norway. 4. The following shall be added to Section 1 of Annex 1 of the Air Transport Agreement, as amended by the Protocol: w. Iceland: Air Transport Agreement, signed at Washington June 14, 1995; amended March 1, 2002 by exchange of notes; amended August 14, 2006 and March 9, 2007 by exchange of notes. x. The Kingdom of Norway: Agreement relating to Air Transport Services effected by exchange of notes at Washington, October 6, 1945; amended August 6, 1954 by exchange of notes; amended June 16, 1995 by exchange of notes. 5. The text of Section 2 of Annex 1 of the Air Transport Agreement, as amended by the Protocol, shall read as follows: Notwithstanding section 1 of this Annex, for areas that are not encompassed within the definition of "territory" in Article 1 of this Agreement, the agreements in paragraphs (e) (DenmarkUnited States), (g) (FranceUnited States), (v) (United KingdomUnited States), and (x) (NorwayUnited States) of that section shall continue to apply, according to their terms. 6. The text of Section 3 of Annex 1 of the Air Transport Agreement, as amended by the Protocol, shall read as follows: Notwithstanding Article 3 of this Agreement, U.S. airlines shall not have the right to provide allcargo services, that are not part of a service that serves the United States, to or from points in the Member States, except to or from points in the Czech Republic, the French Republic, the Federal Republic of Germany, the Grand Duchy of Luxembourg, the Republic of Malta, the Republic of Poland, the Portuguese Republic, the Slovak Republic, Iceland, and the Kingdom of Norway. 7. The following sentence shall be added at the end of Article 3 of Annex 2 of the Air Transport Agreement, as amended by the Protocol: For Iceland and Norway, this includes, but is not limited to, Articles 53, 54, and 55 of the Agreement on the European Economic Area and the EU Regulations implementing Articles 101, 102 and 105 of the Treaty on the Functioning of the European Union as incorporated into the Agreement on the European Economic Area, as well as any amendments thereto. 8. Article 21 paragraph 4 of the Air Transport Agreement as amended by the Protocol shall apply to Iceland and Norway to the extent that the relevant laws and regulations of the European Union are incorporated into the Agreement on the European Economic Area, in accordance with any adaptations thereby stipulated.



Joint Declaration Representatives of the United States of America, the European Union and its Member States, Iceland, and the Kingdom of Norway confirmed that the text of the Air Transport Agreement between the United States of America, of the first part, the European Union and its Member States, of the second part, Iceland, of the third part, and the Kingdom of Norway, of the fourth part (the "Agreement"), is to be authenticated in other languages, as provided either, before signature of the Agreement, by Exchanges of Letters among the United States of America, the European Commission on behalf of the European Union and its Member States, Iceland, and the Kingdom of Norway or, after signature of the Agreement, by decision of the Joint Committee. This Joint Declaration is an integral part of the Agreement.