CELEX: 51991PC0229
Language: en
Date: 1991-06-28 00:00:00
Title: RECOMMENDATION FOR A COUNCIL DECISION ON THE OPENING OF NEGOTIATIONS BETWEEN THE COMMUNITY AND THIRD COUNTRIES ON THE RULES APPLICABLE TO CARRIAGE OF FREIGHT AND PASSENGERS BY INLAND WATERWAYS BETWEEN THE PARTIES CONCERNED

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                 COMMISSION OF THE EUROPEAN COMMUNITIES
       gfe£                                                    C0MC9D229   final
                                                               Brussels, 28 June 1991
   C*CTJ^TfT"V j
                                 Recommendation for a Council decision
                                on the opening of negotiations between
                                  the Community and third countries on
                      the rules applicable to carriage of freight and passengers
                          by inland waterways between the parties concerned
Hfc:
                                       (presented by the Commission)
 ---pagebreak---                   Recommendation for a Council decision
                 on the opening of negotiations between
                   the Community and third countries on
       the rules applicable to carriage of freight and passengers
           by inland waterways between the parties concerned
    Introduction
1.  Until the present time the role played by vessels from third
    countries - with the exception of Switzerland - on the Community
    inland waterway market has been marginal. This situation reflected
    the general political situation and was also due to the limited
    number of connections between the Community waterway network and
    the waterways of third countries.
2.  important changes are currently taking place at both the political
    and transport infrastructure levels. The recent political changes
    in Central and Eastern Europe are leading to a shift from centrally
    planned to market economies more open to Community contacts. This
    development coincides with the forthcoming completion of the Rhine-
    Danube link. Also, in relation to German unification, rivers like
    the Elbe and the Oder will in future be better integrated in the
    international Community waterway network. Hence an intensification
    of waterway traffic with third countries in Central Europe has to
    be anticipated and the commercial rules applying to this traffic
    have to be fixed.
3.  As regards the expected traffic volumes on the Rhine-Danube Canal,
    prognoses generally indicate cargo volumes of around 10 Mio tonnes
    for the year 200u(*). The main commodities are expected to be:
    coal, ore, metal products and halffabricats, chemicals and
    agricultural products.
    The Danube fleet consists of roughly 5,500 units with a total
    loading capacity of 4.9 Mio tonnes, compared to a Communitiy fleet
    of 15,000 units with 12,8 Mio tonnes.
    It should be noted that the restricted width of the locks (12 m) in
    the Rhine-Danube Canal does not allow certain units - in particular
    the big push boats - to pass from the Rhine to the Danube bassin
    vice versa.
(*) Total inland waterway transport within the Community amounts to
    roughly 425 Mio tonnes per annum.
 ---pagebreak---    Assessment
   Existing rules governing waterway transport between Member Statci
   and third countries are fragmented and diverse. Some w^mber States
   have concluded bilateral agreements with third countries or arc
   considering doing so. Other Member States concerned have not yet
   taken any action in this field.
   These bilateral agreements generally contain provisions concerning,
   tariffs in bilateral traffic, traffic sharing exclusively betwee
   the carriers of the two countries concerned and free trans?A< m
   some cases they also provide for limited cabotage rights on the
   basis of special authorizations, and for participation in traffic
   between the contracting state and third countries.
   In order to implement the principle of the freedom to provide
   services, as laid down in Articles 59, 61 and 75 paragraph 1 of the
   Treaty and taking account of the relevant Jurisprudence of the
   Court of Justice* 1 ), all restrictions imposed on Community
   carriers based on their nationality or place of establishment have
   to be abolished. This legal obligation is not restricted to
   internal Community traffic, but equally applies to transport
   between Member States and third countries, since the system of
   internal Community measures implementing the provisions of the
   Treaty may not be separated from that of external relations*2*.
   In addition, agreements on waterway transport cover matters failing
   within the Community's competence pursuant to Article 113 EEC.
   In this context the current bilateral agreements have to be brought
   into conformity with Community law.
   The situation is equally fragmented as regards the existing
   provisions on access to the market in transport between ports
   situated within the territory of the Community (EC cabotage).
   Certain parts of the internal Community market are still reserved
   for national carriers; although the Court of Just iced) has stated
   that the Council has soon to come to an agreement on the Commission
   cabotage proposa I* 3 ). Other parts of the market are open to ai! EC
    and Swiss carriers; whilst for certain other sectors (e.g. North-
    South traffic) no such rules on access exist.
    In addition it should be mentioned that some of the bilateral
    agreements referred to in paragraph 4 provide for the possibility
    for the national authorities of the contracting Member State to
    grant on an ad hoc basis special authorizations to third country
    carriers allowing them to carry out national or international
    transport operations between two ports situated within the
     territory of the Community.
(1) Case 13/83 of 22.05.1985, Recueil 1985, p. 1556
(2) Case 22/70 (AETR) of 31.03.1971.
(3) Proposal COM (85) 610 final of 27.11.1985
 ---pagebreak---                                   - 3 -
6.  A logical consequence of the creation of the internal market for
    the outside world is that the Community will be considered as one
    entity and therefore as a cabotage area. The creation of a cabotage
    area implies that the traffic within and between Member States is
    considered to be equivalent to cabotage and is in principle
    reserved for Community carriers, whereby the existing rights of
    third country carriers laid down in international Conventions shall
    be fully respected. This is currently the case for Switzerland.
7.  Council Regulation (EEC) No. 1101/89 of 27 April 1989 on structural
    improvement measures in inland waterways, established a Community
    programme to abolish structural overcapacity. All Community
    carriers operating on the waterways which are linked to those of
    other Member States are currently subject to the conditions imposed
    by this Regulation, which have an impact both on operating and
    investment costs. The Swiss government has introduced identical
    measures for its fleet.
    Carriers established outside the Community and Switzerland are not
    subject to these rules.
    The organizations representing inland waterway carriers at
    Community level have on various occasions expressed their growing
    concern about the danger of unfair competition from third country
    carriers not being subject to the same economic rules as Community
    carriers. These carriers possibly take the empty places of vessels
    which have been scrapped under the EC scheme at the expense of the
    profession. The preservation of the positive effects of the
    scrapping measures introduced by the Council Regulation mentioned
    above therefore calls for the establishment of common rules on
    access to the market for carriers from third countries.
    Proposal
8.   It is against this background that the Community has to consider
    the development of a Community external relations policy in inland
    waterway transport.
    The third countries concerned are Poland and the contracting states
    to the Danube Convention^1*. Amongst the latter countries Austria
     is in a special position because of its EFTA Membership; see
    further point 10.
    The basic approach envisaged by the Commission towards third
    countries in Central and Eastern Europe as regards inland transport
     is to strive for the establishment of common rules allowing for the
    fullest possible realization of free movement of goods and services
    as well as aiming for the harmonization of transport conditions.
    The realization of this objective is related to progress made in
    the third countries concerned with the conversion of their national
    economies to market principles. With a view to the existing
    uncertainties regarding the timing of this process, it is proposed
    that the negotiations should be conducted in two phases.
(1) These are: Hungary, Czechoslovakia, Rumania, Bulgaria, USSR,
                Yugoslavia and Austria.
 ---pagebreak--- 9.  The first phase should concentrate on the cone I us?or* of agreements
     laying down the conditions governing bilateral waterway traffic
    between the Community and the third countries concerned. :c
    cabotage, that is the carriage of cargo between two Commun ity o&rts
    ijy third country carriers, should not be allowed in this phase,
    However, the possibility of consecutive cabotage on a reciprocs:
    basis (the carrying out of a single transport operation between two
    Community ports or between two third country ports on the return
    Journey following a bilateral transport operation) could eventually
    be included In the first phase negotiations, depending on progre
    made with the harmonization of transport conditions.
     If circumstances so permit the second phase, which could start
    after an acceptable degree of harmonization in the working methods
    of the transport companies from the two sides has been achieved,
    should aim at the gradual further liberalization of market access
    in the Danube bassin and on the EC market, whilst laying down the
    economic and administrative conditions governing such operations.
    The present communication is restricted to the first phase. The
    opening of the second phase shall be subject to a separate
    communication to the Council.
10. In the framework of the current EFTA-EC negotiations on the
    creation of a European Economic Area the issue of mutual free
    access to waterways and freedom of establishment in the area of
     inland waterways forms part of the negotiations. Austria and
    Switzerland are the only EFTA States having direct waterway links
    with the Community. It is understood that in the context of a
    general agreement, the current view is that the relevant acquis
    communautaire in inland waterways will be applicable to EEA
    contracting parties as soon as they get the right of free access to
    Community waterways. This concerns Austria in particular, since
    Switzerland being a contracting state to the Convent''on of Mannheim
    has already free access to a certain extent.
    Whilst awaiting the outcome of the EFTA-EC talks, the negotiations
    proposed by the present communication can be oriented initially
    towards non-EFTA countries. If the negotiations on the European
    Economic Area are successfully concluded along the lines indicated
    above, there will be no need for bilateral negotiations with EFTA
    countries since the EEA agreement is expected to fully provide for
    Community requirements. However, if the outcome of the EEA exercise
    were to turn out not to cover sufficiently the issue of bilateral
    waterway transport, the negotiating directives requested by the
    present communication could equally be used to open up negotiations
    with EFTA countries concerned.
    First phase
11. The negotiations to establish uniform rules governing bilateral
    traffic between the Community and third countries should be
    conducted by the Commission with the assistance of the Member States
     It is envisaged that experts of these Member States would be
    requested to advise the Community negotiating delegation.
 ---pagebreak---                                      5 -
    The organizations representing inland waterway carriers at
    Community level should be consulted by the negotiating team at
    regular intervals and their views taken into account in the course
    of negotiations.
12. Agreements with non Member States should contain provisions on
    transport prices, market access and traffic sharing, whereby the
    contracting parties should agree to eliminate any form of direct
    state aids for operating costs, and to create equal conditions for
    access to the market of carriers from the two parties in the
    traffic concerned.
    Furthermore, these agreements should cover those economic,
    administrative and technical rules that have an impact on transport
    operations; the aim should be to remove existing problems and be
    based on the principle of equal treatment between Community
    carriers and carriers from the other contracting party in bilateral
    traffic.
13. In conclusion, Community agreements with third countries on
    bilateral waterway traffic would provide the following advantages:
    - a -    clear, fair and efficient principles will be established
             for the industry in developing links to non-Member States;
    - b -    equal market opportunities will be guaranteed for all EC
             carr iers;
    - c -    distortion of competition will be avoided by applying the
             principle of equal treatment between carriers of both
             sides;
    - d -     it will be ensured that the results achieved by Council
             Regulation (EEC) No. 1101/89 are not endangered or
             negatively affected as a result of the intensification of
             East-West trade;
    - e -    a maximum of transparency and simplicity in the
             administrative rules governing bilateral transport can thus
             be obtained;
    - f -    the Community could demonstrate its commitment to be
            outward looking in its inland waterway policy and open to
             exchanges with third countries. Agreements on bilateral
             traffic can serve as an introductory step towards further
             liberalization and cooperation.
14. At this stage, it is unnecessary to specify a precise legal basis
    for the determination to begin negotiations in accordance with
    certain negotiating directives. Indeed it is at present not
    possible to be completely certain about the precise legal basis
    which will be needed for a decision by the Community to conclude a
    future agreement pursuant to Article 228 EEC, since it will depend
    on the precise content of the agreement which will emerge.
 ---pagebreak---                                  - 6
15. Consequently, the Commission recommends to the Cou» i! to decide
    that :
        the Community shall engage in negotiations with the third
        countries mentioned above in points 8 and 10 on the rules
        applicable to carriage of freight and passengers by inland
        waterways between the parties concerned;
        the Commission conducts these negotiations with the assistance
        the Member States and according to the directives contained !
        the annex hereto.
 ---pagebreak---                                                           Annex
                          Negotiating Directives
 1.  General objective
     The general objective of the negotiations is to conclude one or
     more agreements between the Community and certain third countries
     on rules for the carriage of freight and passengers by inland
     waterway between the Community and these States. Without
     necessarily taking place simultaneously, these negotiations will be
     conducted with each of the third countries concerned with a view to
     concluding either a number of bilateral or multilateral agreements
     or a single multilateral agreement.A further objective is to ensure
     equal treatment for all parties.
 2.  Scope
     These negotiations shall cover the commercial, technical and
     administrative aspects of the relationship between the Community
     and third countries in the field of inland waterway transport. In
     the light of the present political and economic situation, the
     negotiations should concentrate on laying down the rules governing
     bilateral traffic between the Community and third countries.
     Furthermore, the possibility of consecutive cabotage (the carrying
     out of a single transport operation between two Community ports or
     between two third country ports on the return Journey following a
     bilateral transport operation) could be included in the
     negot iat ions.
3.   Particular objectives
     The agreements shall lay down the rules for the organisation of the
    market following commercial economic principles. The agreements
     shall in particular contain provisions on market access, transport
     conditions and prices. The establishment of fair and equal
    conditions of competition resulting in prices that cover costs and
    offer the possibility of a fair participation for carriers from the
     two sides should be envisaged.
     In the framework of these agreements, the administrative, technical
    and economical rules governing these transport operations should be
    harmonized and simplified as far as possible to facilitate a
    prosperous development of waterway traffic between the contracting
    Parties.
4.  Entry into force
    The negotiations will be conducted with all third countries
    referred to in the Commission's communication. However, a separate
    conclusion with a group of countries is not excluded if the result
    of the negotiations should require this in the Community interest.
 ---pagebreak---                                    2 -
5- Control measures
   Appropriate control measures shall be adopted to ensure that ths
   provisions of the agreement are respected.
6. Period of validity of agreement
   The agreements shall be concluded for a period of five years with a
   provision for extension.
7. Termination of agreement
   Third countries on the one hand or the Community on the other hand
   shall be able to withdraw from the agreement after consulting the
   other parties in advance and on giving due notice.
 ---pagebreak---  ---pagebreak---                                                                      ISSN 0254-1475
                                                              COM(91) 229 final
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                                 Catalogue number : CB-CO-91-293-EN-C
                                                             ISBN 92-77-73909-6
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