on the signing, on behalf of the European Union and its Member States, of the Protocol amending 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, signed on 16 and 21 June 2011, to take account of the accession to the European Union of the Republic of Croatia

EXPLANATORY MEMORANDUM

1.CONTEXT OF THE PROPOSAL

•Reasons for and objectives of the proposal

Under Article 6 (2) of the Act of Accession, Croatia has undertaken to accede to the agreements concluded or signed by the Union and the Member States with third countries. Among those agreements is the Ancillary Agreement between the Union and its Member States, Iceland and Norway (“the Ancillary Agreement”) on the application of the Air Transport Agreement between the United States of America, the Union and its Member States, Iceland and Norway (“the Four Part Agreement”), which governs the relationship between the three European parties under that Agreement, The Four Part Agreement in turn extends the scope of the Air Transport Agreement between the United States and the European Community and its Member States (“the EU-US ATA”) to Iceland and Norway. Article 6 (2) of the Act of Accession further provides that the accession of Croatia to those agreements shall be agreed by the conclusion of a protocol to the agreement between the Council, acting unanimously on behalf of the Member States, and the third countries concerned. Moreover, the Commission shall negotiate those protocols on behalf of the Member States. The Commission has accordingly negotiated a protocol amending the Ancillary Agreement to provide for the accession of Croatia to that agreement. The objective of the present proposal is to obtain a Council decision, based on Article 218 (5) of the Treaty on the Functioning of the European Union (“the TFEU”) and Article 6 (2) of the Act of Accession, authorising the signing of the protocol on behalf of the Union and the Member States and its provisional application in accordance with Article 4 thereof, subject to its conclusion at a later date.

•General context

The undertaking by Croatia under Article 6 (2) of the Act of Accession applies also to the EU-US ATA and the Four Part Agreement. The Commission has consequently negotiated protocols also to those agreements to provide for the accession of Croatia to them. Proposals for Council decisions on the signing and provisional application as well as for the conclusion of those protocols are presented in parallel with the present proposal, as is a proposal for a Council decision on the conclusion of the protocol amending the Ancillary Agreement.

•Consistency with existing policy provisions in the policy area

The EU-US ATA was the first comprehensive air transport agreement with a key aviation partner of the Union. It is the most important air transport agreement in the world, providing more than 80 million seats per year, and as such a cornerstone of the EU’s external aviation policy. Its importance has increased by its extension to Iceland and Norway through the Four Part Agreement. The protocol will enable Croatia to benefit from that agreement.

•Consistency with existing provisions in the area of the proposal

The protocol enables Croatia to fulfil its obligation under Article 6 (2) of the Act of Accession to accede to the Ancillary Agreement.

2.LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

•Legal basis

Article 100 (2) in conjunction with Article 218 (5) of the TFEU, and Article 6 (2), second subparagraph, of the Act of Accession.

•Subsidiarity (for non-exclusive competence)

The Protocol will allow Croatia to benefit from the Four Part Agreement, which creates equal and uniform conditions for market access and serves as a basis for new arrangements for regulatory co-operation and convergence in fields essential for the safe, secure, and efficient operation of air services. These arrangements can only be achieved at Union level.