Proposal for a Decision of the Council and the representatives of the Governments of the Member States of the European Union, meeting within the Council on the conclusion of the of the Air Transport Agreement between the United States of America, for the one part, the European Community and its Member States, for the second part, Iceland, for the third part, and the Kingdom of Norway, for the fourth part; and on the conclusion of the Ancillary Agreement between the European Community and its Member States, of the first part, Iceland, on the second part, and the Kingdom of Norway, of the third part, regarding the application of the Air Transport Agreement between the United States of America, of the first part; the European Community and its Member States, of the second part; Iceland, of the third part; and the Kingdom of Norway, of the fourth part
Date: 2009-05-15
Institutions: European Commission
Subjects: EU Member State, Iceland, Norway, United States, agreement (EU), air safety, air space, air traffic, air traffic control, air transport

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 15.5.2009 
COM(2009) 229 final 

2009/0066 (CNS) 

Proposal for a 

Decision of the Council and the representatives of the Governments of the Member 
States of the European Union, meeting within the Council 

On the conclusion of the of the Air Transport Agreement between the United States of 
America, for the one part, the European Community and its Member States, for the 
second part, Iceland, for the third part, and the Kingdom of Norway, for the fourth 
part; and 

On the conclusion of the Ancillary Agreement between the European Community and 
its Member States, of the first part, Iceland, on the second part, and the Kingdom of 
Norway, of the third part, regarding the application of the Air Transport Agreement 
between the United States of America, of the first part; the European Community and 
its Member States, of the second part; Iceland, of the third part; and the Kingdom of 
Norway, of the fourth part 

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EXPLANATORY MEMORANDUM 

1. 

Context of the proposal 

•  Grounds for and objectives of the proposal 

The  Air  Transport  Agreement  between  the  European  Community  and  its  Member 
States,  on  the  one  hand,  and  the  United  States  of  America  (US),  on  the  other  hand, 
signed on 25 and 30 April 2007 ("the EU-US Air Transport Agreement"), entered into 
effect  on  30  March  2008.  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 26 February 2009 a proposal for the accession 
of Iceland and Norway to the EU-US Air Transport Agreement, consisting of a four-
party  "Cover  Letter  Agreement"  and  an  Ancillary  Agreement  for  the  internal 
arrangements  between  the  Community,  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. It will create commercial 
benefits  for  airlines  and  consumers  in  the  EU  and  it  will  particularly  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.  Iceland  and  Norway  will  be 
committed to the negotiations of a second-stage air transport agreement with the US. 

•  General context 

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. 

The EU-US Air Transport Agreement has created uniform conditions for market access 
for all Community air carriers, and has established new arrangements for regulatory co-
operation between the European Community and the US in fields essential for the safe, 
secure,  and  efficient  operation  of  transatlantic  air  services.  Norway  and  Iceland  have 
adopted  the  complete  acquis  communautaire  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 acquis communautaire will operate transatlantic air 
services in a harmonised framework.  

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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 Community (e.g. Euro-Mediterranean Aviation Agreement with Morocco).  

•  Existing provisions in the area of the proposal 

The  provisions  of  the  Cover  Letter  Agreement  extend  the  scope  of  the  EU-US  Air 
Transport Agreement mutatis mutandis to Norway and Iceland. The provisions of the 
Ancillary  Agreement  are  based  on  the  Council  Decision  of  25  April  2007  on  the 
signature  and  provisional  application  of  the  EU-US  Air  Transport  Agreement 
(2007/339/EC). 

•  Consistency with the other policies and objectives of the Union 

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

2. 

Consultation of interested parties and impact assessment 

•  Consultation of interested parties 

Consultation methods, main sectors targeted and general profile of respondents 

The accession of Iceland and Norway to the EU-US Air Transport Agreement has been 
discussed in various meetings of the Joint Committee established under the EU-US Air 
Transport  Agreement  and  in  informal  technical  meetings  with  Member  States.  All 
these  meetings  have  been  prepared  in  meetings  of  the  Industry  Consultative  Forum 
with representatives of air carriers, airports, and labour organisations.  

Summary of responses and how they have been taken into account 

The issue of accession of Iceland and Norway to the EU-US Air Transport Agreement 
has been discussed in four meetings of the Industry Consultative Forum, during which 
all  elements  of  the  approach  were  discussed  in  detail.  All  comments  from  Member 
States  and  stakeholders  were  duly  taken  into  consideration  in  the  preparation  of  the 
Community's position for the Joint Committee held on 26 February 2009. 

•  Collection and use of expertise 

There was no need for external expertise. 

•  Impact assessment 

The Agreement extends the scope of the EU-US Air Transport Agreement to Iceland 
and Norway. This will give EU air carriers the opportunity to take up the rights granted 
by  the  US  since  30  March  2008  to  operate  passenger  flights  between  the  US  and 

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Iceland or Norway.  

3. 

Legal elements of the proposal 

•  Summary of the proposed action 

The proposal consists of two elements: 

-  The  four-party  "Cover  Letter  Agreement"  extends  the  scope  of  the  EU-US  Air 
Transport Agreement mutatis mutandis to all four parties.  

- The Ancillary Agreement ensures that the bilateral nature of the EU-US Air Transport 
Agreement  is  maintained.  Norway  and  Iceland  will  be  represented  in  the  Joint 
Committee by the Commission for all areas that are not in the exclusive competence of 
Member States. Rules are established for the exchange of information, the participation 
in second-stage negotiations, and the representation in arbitration procedures. 

•  Legal basis 

Article 80(2), in conjunction with the first sentence of the first subparagraph of Article 
300(2) and the first subparagraph of Article 300(3) thereof. 

•  Subsidiarity principle 

The  subsidiarity  principle  applies  insofar  as  the  proposal  does  not  fall  under  the 
exclusive competence of the Community. 

The  objectives  of  the  proposal  cannot  be sufficiently  achieved  by  the  Member  States 
for the following reason: 

The EU-US Air Transport Agreement has established new arrangements at Community 
level  governing  the  provision  of  transatlantic  air  services  that  replaced  the  previous 
arrangements  made  by  individual  Member  States.  The  accession  of  third  countries  to 
the EU-US Air Transport Agreement can only be achieved at Community level. 

The proposal therefore complies with the subsidiarity principle. 

•  Proportionality principle 

The proposal complies with the proportionality principle for the following reason(s). 

The  proposal  will  not  affect  the  regulatory  framework  within  the  European  Common 
Aviation Area. The proposal will not modify the EU-US Air Transport Agreement. The 
proposal  is  limited  on  ensuring  consistency  between  the  common  aviation  market  in 
Europe and the regulatory framework for transatlantic flights established by the EU-US 
Air Transport Agreement. 

The proposal does not create any new obligations for EU aviation authorities or for EU 
industry.  It  creates  new  rights  for  EU  air  carriers  and  ensures  full  consistency  of  the 
EU-US Air Transport Agreement with the common Scandinavian air transport policy. 

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•  Choice of instruments 

Other means would not be adequate for the following reasons: 

The  four-party  Cover  Letter  Agreement  and  an  Ancillary  Agreement  are  the  most 
effective  instruments  to  ensure  both  full  extension  of  the  EU-US  Air  Transport 
Agreement  to  Iceland  and  Norway  and  the  bilateral  character  of  the  EU-US  Air 
Transport  Agreement.  A  multilateral  agreement  replacing  the  EU-US  Air  Transport 
Agreement  would  reduce  the  EU  to  one  player  in  a  four-party  Agreement  while  the 
proposed  Agreements  maintain  the  bilateral  relationship  between  the  US,  on  the  one 
hand, and Europe, on the other hand. Parallel bilateral agreements between (1) Iceland-
US,  (2)  Norway-US,  (3)  Iceland-European  Community,  and  (4)  Norway-European 
Community  would  add  unnecessary  complexity  and  would  not  guarantee  the  full 
consistency of the regulatory framework for transatlantic flights. 

4. 

Budgetary implication 

The proposal has no implication for the Community budget. 

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2009/0066 (CNS) 

Proposal for a 

Decision of the Council and the representatives of the Governments of the Member 
States of the European Union, meeting within the Council 

On the conclusion of the of the Air Transport Agreement between the United States of 
America, for the one part, the European Community and its Member States, for the 
second part, Iceland, for the third part, and the Kingdom of Norway, for the fourth 
part; and 

On the conclusion of the Ancillary Agreement between the European Community and 
its Member States, of the first part, Iceland, on the second part, and the Kingdom of 
Norway, of the third part, regarding the application of the Air Transport Agreement 
between the United States of America, of the first part; the European Community and 
its Member States, of the second part; Iceland, of the third part; and the Kingdom of 
Norway, of the fourth part 

THE COUNCIL OF THE EUROPEAN UNION AND THE REPRESENTATIVES OF THE 
GOVERNMENTS OF THE MEMBER STATES MEETING WITHIN THE COUNCIL 

Having  regard  to  the  Treaty  establishing  the  European  Community  and  in  particular  Article 
80(2), in conjunction with the first sentence of the first subparagraph of Article 300(2) and the 
first subparagraph of Article 300(3) thereof 

Having regard to the opinion of the European Parliament 

Whereas: 

(1) 

The  Commission  has  negotiated  on  behalf  of  the  Community  and  of  the  Member 
States an Air Transport Agreement with the United States of America, Iceland, and the 
Kingdom of Norway (hereinafter, the “Agreement”) and an Ancillary Agreement with 
Iceland  and  the  Kingdom  of  Norway  regarding  the  application  of  that  Agreement 
(hereinafter, the "Ancillary Agreement"); 

(2) 

The Agreement was signed on ….; 

(3) 

The Ancillary Agreement was signed on …; 

(3) 

The Agreement and the Ancillary Agreement should be approved by the Community 
and the Member States; 

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HAVE DECIDED AS FOLLOWS:  

Article 1 (Approval) 

1. 

2. 

3. 

4. 

5. 

1. 

2. 

The  Air  Transport  Agreement  between  the  United  States  of  America,  for  the  one 
part, the European Community and its Member States, for the second part, Iceland, 
for the third part, and the Kingdom of Norway, for the fourth part (hereinafter "the 
Agreement"),  is  hereby  approved  on  behalf  of  the  Community.  The  text  of  the 
Agreement is attached to this decision.  

The Ancillary Agreement between the European Community and its Member States, 
of the first part, Iceland, on the second part, and the Kingdom of Norway, of the third 
part,  regarding  the  application  of  the  Air  Transport  Agreement  between  the  United 
States of America, of the first part; the European Community and its Member States, 
of  the  second  part;  Iceland,  of  the  third  part;  and  the  Kingdom  of  Norway,  for  the 
fourth part (hereinafter, "the Ancillary Agreement"), is hereby approved on behalf of 
the Community. The text of the Agreement is attached to this decision 

Upon  completion  of  its  internal  procedures  for  entry  into  force  of  the  Agreement, 
each  Member  State  shall  transmit  to  the  Secretariat  of  the  Council  the  diplomatic 
notes  provided  for  in  Article  6  of  the  Agreement  and  in  Article  9  of  the  Ancillary 
Agreement.  

The President of the Council is hereby authorised to designate the person empowered 
to deliver to the United States of America, Iceland and the Kingdom of Norway the 
diplomatic notes provided in Article 6 of the Agreement. 

The President of the Council is hereby authorised to designate the person empowered 
to deliver to Iceland and the Kingdom of  Norway the diplomatic notes provided in 
Article 6 of the Agreement and in Article 9 of the Ancillary Agreement on behalf of 
the Community and of the Member States. 

Article 2 (Termination) 

A decision to terminate the Agreement and give notice thereof to the United States of 
America,  Iceland  and  the  Kingdom  of  Norway  in  accordance  with  Article  3  of  the 
Agreement, and a decision to withdraw such notice, shall be taken by the Council, on 
behalf of the Community and of the Member States, acting unanimously on the basis 
of a Commission proposal. 

A decision to terminate the Ancillary Agreement and give notice thereof to Iceland 
and  the  Kingdom  of  Norway  in  accordance  with  Article  7  of  the  Ancillary 
Agreement, and a decision to withdraw such notice, shall be taken by the Council, on 
behalf of the Community and of the Member States, acting unanimously on the basis 
of a Commission proposal. 

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Done at Brussels, […] 

For the Council 

The President 

[…] 

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Attachment 1 

AIR TRANSPORT AGREEMENT 

The United States of America (hereinafter the "United States"), of the first part; and 

The European Community and its Member States, 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; 

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Have agreed as follows: 

Article 1 

Definition 

“Party” means the United States, the European Community and its Member States, Iceland, or 
Norway. 

Article 2 

Application of Annex I and II 

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 
referred to as “the Air Transport Agreement”), attached in Annex I, shall apply to all Parties 
to this Agreement, subject to Annex II. The provisions of the Air Transport Agreement shall 
apply  to  Iceland  and  Norway  as  though  they  were  Member  States  of  the  European 
Community,  so  that  Iceland  and  Norway  shall  have  all  of  the  rights  and  obligations  of 
Member States under that agreement. Annexes I and II form integral parts of this Agreement. 

Article 3 

Termination 

1.  Either  the  United  States  or  the  European  Community  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.  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 the International Civil Aviation Organization. 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 Community and its Member States before the end of this period. 

3.  Either  the  United  States  or  the  European  Community  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 the International Civil Aviation Organization. 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 

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European  Community  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  Community  and  its  Member  States  shall  be  delivered  to  or  from,  as  the 
case may be, the European Community. 

5.  Notwithstanding  any  other  provision  of  this  Article,  if  the  Air  Transport  Agreement  is 
terminated, this Agreement shall terminate simultaneously. 

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Article 4 

Registration with ICAO 

This  Agreement  and  all  amendments  thereto  shall  be  registered  with  the  International  Civil 
Aviation Organization. 

Article 5 

Provisional Application 

Pending entry into force pursuant to Article 6, this Agreement shall be applied provisionally 
from the first day of the month following the date of the last note by which each Party notifies 
the  other  Parties  of  its  completion  of  any  procedures  necessary  to  apply  this  Agreement 
provisionally. If the Air Transport Agreement is terminated pursuant to Article 23 thereof or 
its  provisional  application  ceases  pursuant  to  Article  25  of  that  Agreement,  provisional 
application of this Agreement shall cease simultaneously. 

Article 6 

Entry into force 

This Agreement shall enter into force on the date of the later of: (1) the entry into force of the 
Air Transport Agreement and (2) 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  purposes  of  this  exchange  of  diplomatic 
notes, diplomatic notes to or from the European Community and its Member States shall be 
delivered to or from, as the case may be, the European Community. The diplomatic note or 
notes  from  the  European  Community  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 ……….this ………. day of ……………., in quadruplicate. 

For the United States of America: 

[For each of the EU Member States:] 

For the European Community: 

For Iceland: 

For the Kingdom of Norway: 

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AIR TRANSPORT AGREEMENT 

[OJ L134/4 of 25.5.2007]  

Annex I 

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Annex II 

Specific Provisions with Respect to Iceland and Norway 

The provisions of the Air Transport Agreement, modified as follows, shall apply to all Parties 
to this Agreement. The provisions of the Air Transport Agreement shall apply to Iceland and 
Norway as though they were Member States of the European Community, 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 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 
Community 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  Community  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 shall not apply to Iceland and Norway. 

3. The following shall be added to Section 1 of Annex 1: 

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. 

4. The text of Section 2 of Annex 1 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) 
(Denmark-United  States),  (g)  (France-United  States),  (v)  (United  Kingdom-United  States), 
and  (x)  (Norway-United  States)  of  that  section  shall  continue  to  apply,  according  to  their 
terms. 

5. The text of Section 3 of Annex 1 shall be read as follows: 

Notwithstanding Article 3 of this Agreement, U.S. airlines shall not have the right to provide 
all-cargo 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, 

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the  Republic  of  Poland,  the  Portuguese  Republic,  the  Slovak  Republic,  Iceland,  and  the 
Kingdom of Norway. 

6. The following shall be added at the end of Article 3 of Annex 2: 

For  Iceland  and  Norway,  this  includes,  but  is  not  limited  to,  Articles  53,  54,  and  57  of  the 
Agreement on the European Economic Area and their implementing Regulations pursuant to 
the said agreement, as well as any amendments thereto. 

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Attachment 2 

ANCILLARY AGREEMENT 

between 

The Kingdom of Norway, of the first part, 

Iceland, of the second part, 

and 

The European Community and its Member States, of the third part, 

regarding 

the application of the Air Transport Agreement between 

the United States of America, of the first part, 

the European Community and its Member States, of the second part, the Kingdom of 
Norway, of the third part, 

and Iceland, of the fourth part 

Whereas: 

(1)  The  European  Commission  has  negotiated,  on  behalf  of  the  Community  and  of  the 
Member  States,  an  Agreement  on  Air  Transport  with  the  United  States  of  America  in 
accordance with the Council Decision authorising the Commission to open negotiations. 

(2)  The  Air  Transport  Agreement  between  the  Community  and  its  Member  States  and  the 
United States of America (the "Air Transport Agreement") was initialled on 2 March 2007, 
signed on the European side at Brussels on 25th April 2007 and on the US side at Washington 
on 30th April 2007 and provisionally applied from 30th March 2008. 

(3)  Iceland  and  the  Kingdom  of  Norway  (hereafter  “Norway”),  being  fully  integrated 
members  of  the  single  European  Aviation  Market  through  the  Agreement  on  the  European 
Economic Area, have adhered to the Air Transport Agreement through an Agreement of even 
date,  (hereinafter  the  "Agreement”),  which  incorporates  the  Air  Transport  Agreement  as 
Annex I. 

(4) It is necessary to lay down procedural arrangements for deciding, if appropriate, how to 
suspend rights pursuant to Article 21(3) of the Air Transport Agreement. 

(5) It is furthermore necessary to lay down procedural arrangements for  the participation of 
Norway  and  Iceland  in  the  Joint  Committee  set  up  under  Article  18  of  the  Air  Transport 
Agreement and in the arbitration procedures provided for in Article 19 of the Air Transport 

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Agreement, ensuring the necessary cooperation, flow of information and consultation before 
Joint Committee meetings, as well as for implementing certain provisions of the Agreement, 
including  those concerning security, safety, the granting and revocation of traffic rights and 
government support. 

IT IS AGREED AS FOLLOWS: 

Article 1 

Notification 

Should  the  Community  and  its  Member  States  decide  to  terminate  the  Agreement  in 
accordance with Article 3 of the Agreement or to discontinue its provisional application, or to 
withdraw notices to that effect, the Commission shall, before giving notice through diplomatic 
channels  to  the  United  States  of  America,  immediately  notify  Iceland  and  Norway  thereof. 
Norway  and/or  Iceland  shall  likewise  immediately  notify  the  Commission  of  any  such 
decision(s). 

Article 2 

Second Stage Negotiations and Suspension of Traffic Rights 

1. The Commission shall conduct the second stage negotiations referred to in Article 21(1) of 
the Air Transport Agreement on behalf of the European Community and its Member States. 
With a view to a continued association of Norway  and Iceland to the revised Air Transport 
Agreement  also  after  the  second  stage  negotiations,  Norway  and  Iceland  shall  participate  in 
the negotiations as observers, and shall for that purpose be included in the preparatory work 
of the European Community, like any Member State of the Community. 

2. If no second stage agreement has been reached within 12 months of the start of the review 
provided in Article 21(3) of the Air Transport Agreement, Norway and Iceland may, like any 
Member State of the Community and within the following 15 days, notify to the Commission 
which  traffic  rights  in  relation  to  their  territory,  if  any,  they  wish  to  suspend.  Such  traffic 
rights may not include any rights specified in the agreements mentioned in Annex I of the Air 
Transport Agreement. 

3. On the basis of the notifications received from the Member States, Norway and/or Iceland, 
the Commission shall establish a list of the traffic rights to be suspended and transmit it to the 
Council.  The  President  of  the  Council,  acting  on  behalf  of  the  Community  and  its  Member 
States,  Norway  and  Iceland  shall  then  give  notice  to  the  United  States  of  America  of  the 
suspension of the traffic rights included in the list in accordance with Article 21(3) of the Air 
Transport  Agreement.  The  Member  States  concerned,  Norway  and/or  Iceland  shall  take  the 
necessary measures in order to suspend such rights from the first day of the International Air 
Transport Association (IATA) traffic season that commences no less than 12 months after the 
date on which the notice of suspension is given. 

4. Notwithstanding paragraph 3 of this Article, the Council, acting by unanimity on a proposal 
from  the  Commission,  may  decide  not  to  give  notice  of  suspension  or  subsequently  to 
withdraw it. 

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Article 3 

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Joint Committee 

1.  The  Community,  its  Member  States  and  Norway  and  Iceland  shall  be  represented  in  the 
Joint  Committee  established  under  Article  18  of  the  Air  Transport  Agreement  by 
representatives of the Commission, the Member States and Norway and Iceland. 

2.  The  position  of  the  Community,  the  Member  States  and  Norway  and  Iceland  within  the 
Joint Committee shall be presented by the Commission, except in areas that within the EU fall 
exclusively  within  Member  States’  competence,  in  which  case  it  shall  be  presented  by  the 
Member States, Iceland and/or Norway as appropriate. 

3.  The  position  to  be  taken  by  Norway  and  Iceland  within  the  Joint  Committee  as  regards 
matters falling within Articles 14 or 20 of the Air Transport Agreement or matters that do not 
require  the  adoption  of  a  decision  having  legal  effects  shall  be  adopted  by  Norway  and 
Iceland in agreement with the Commission. 

4.  For  other  Joint  Committee  decisions  concerning  matters  that  fall  within  regulations  and 
directives that are incorporated in the European Economic Area Agreement, the position to be 
taken by the Community, its Member States and by Norway and Iceland, shall be adopted by 
the Commission in agreement with Norway and Iceland. 

5.  For  other  Joint  Committee  decisions  concerning  matters  that  fall  outside  regulations  and 
directives that are incorporated in the European Economic Area Agreement, the position to be 
taken  by  the  Kingdom  of  Norway  and  Iceland,  shall  be  adopted  by  Norway  and  Iceland  in 
agreement with the Commission. 

6. The Commission shall take adequate measures to ensure full participation of Norway and 
Iceland in any coordination, consultation or decision shaping meetings with its Member States 
and access to the relevant information in preparation to Joint Committee meetings to be held. 

Article 4 

Arbitration 

1.  The  Commission  shall  represent  the  Community,  its  Member  States  and  Norway  and 
Iceland in arbitration proceedings under Article 19 of the Air Transport Agreement. 

2. The Commission shall, as appropriate, take measures to ensure the involvement of Norway 
and Iceland in the preparation and coordination of arbitration proceedings. 

3.  If  the  Council  decides  to  suspend  benefits  in  accordance  with  Article  19(7)  of  the  Air 
Transport  Agreement  this  decision  shall  be  notified  to  Norway  and  Iceland.  Norway  and/or 
Iceland shall likewise inform the Commission of any such decision(s) made. 

4. Any other appropriate action to be taken under Article 19 of the Air Transport Agreement 
on matters which within the EU fall within the Community competence shall be decided upon 
by the Commission, with assistance of a Special Committee of representatives of the Member 
States appointed by the Council and of Norway and Iceland. 

Article 5 

Exchange of Information 

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1.  Norway  and  Iceland  shall  promptly  inform  the  Commission  of  any  decision  to  refuse, 
revoke, suspend or limit the authorisations of an airline of the United States of America that 
they  have  adopted  under  Articles  4  or  5  of  the  Air  Transport  Agreement.  The  Commission 
shall  likewise  promptly  inform  Norway  and  Iceland  of  any  such  decision  taken  by  Member 
States. 

2.  Norway  and  Iceland  shall  inform  the  Commission  immediately  of  any  requests  or 
notifications made or received by them under Article 8 of the Air Transport Agreement. The 
Commission shall likewise immediately inform Norway and Iceland of any such requests or 
notifications made or received by Member States. 

3.  Norway  and  Iceland  shall  inform  the  Commission  immediately  of  any  requests  or 
notifications made or received by them under Article 9 of the Air Transport Agreement. The 
Commission shall likewise immediately inform Norway and Iceland of any such requests or 
notifications made or received by Member States. 

Article 6 

Government subsidies and support 

1. Should Norway or Iceland believe that a subsidy or support being considered or provided 
by a governmental entity in the territory of the United States of America will have the adverse 
competitive effects referred to in Article 14(2) of the Air Transport Agreement, it shall bring 
the matter to the attention of the Commission. Should a Member State have brought a similar 
matter to the attention of the Commission, the Commission shall likewise bring the matter to 
the attention of Norway and Iceland. 

2. The Commission, Norway and Iceland may approach such entity or request a meeting of 
the Joint Committee established under Article 18 of the Air Transport Agreement. 

3. The Commission, Norway and Iceland shall inform each other immediately when they are 
contacted  by  the  United  States  of  America  under  Article  14(3)  of  the  Air  Transport 
Agreement. 

Article 7 

Termination 

1. A Party may, at any time, give notice in writing through diplomatic channels to the other 
Parties  of  its  decision  to  terminate  this  Ancillary  Agreement  or  its  provisional  application. 
This  Ancillary  Agreement  shall  terminate  or  shall  cease  to  be  provisionally  applied  at 
midnight GMT six months following the day of the written notification of termination or of 
discontinuation of provisional application, unless the notice is withdrawn by agreement of the 
Parties before the end of this period. 

2. Notwithstanding any other provision of this Article, if the Agreement is terminated or its 
provisional  application  is  discontinued,  this  Ancillary  Agreement  shall  simultaneously 
terminate or cease to be provisionally applied. 

Article 8 

Provisional Application 

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Pending entry into force pursuant to Article 9, the Parties shall agree in accordance with the 
national laws of the Parties to apply this Ancillary Agreement provisionally from the later of 
the  date  of  signature  of  this  Ancillary  Agreement  or  of  the  date  of  provisional  application 
specified in Article 5 of the Agreement. 

Article 9 

Entry into force 

This Ancillary Agreement shall enter into force either (a) one month after the date of the latest 
note  in  exchange  of  diplomatic  notes  between  the  Parties  confirming  that  all  necessary 
procedures for entry into force of this Ancillary Agreement have been completed, or (b) on 
the date of entry into force or provisional application of the Agreement, whichever is later. 

IN  WITNESS  WHEREOF,  the  undersigned  duly  authorized  to  that  effect,  have  signed  this 
Ancillary Agreement  

DONE, in triplicate in ………., this ………. day of ……………., in the English language. 

For the Kingdom of Norway: 

For Iceland: 

For the European Community: 

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