EU, US make no apparent progress on aviation deal

The EU ad the US ended their two-day talks about a new trans-Atlantic aviation agreement having made no apparent progress in overcoming US resistance to foreign ownership of US-based airlines.

Slovenia: The European Union ad the United States ended their two-day talks about a new trans-Atlantic aviation agreement today having made no apparent progress in overcoming US resistance to foreign ownership of US-based airlines.

The two sides agree to resume talks in September in Washington the Slovenia state-run news agency STA said.

The talks follow an initial "Open Skies" agreement that came into force last month, allowing airlines to fly from anywhere in the EU to anywhere in the United States.

But in the new stage of negotiations, the EU wants to achieve economic liberalization of the airline industry. It has been seeking the repeal of US laws that limit international investors in US airlines to 25 per cent of voting stock and prohibit "actual control" by foreign citizens. The EU wants to hold open the possibility that European airlines could take over US air carriers.

Both the EU representative, Daniel Calleja, and the chief US negotiator, John Byerly, described that as the "toughest issue," STA reported. The negotiations also include environmental issues.

Both sides indicated that years of negotiation could lie ahead. But the European Union has said that, if no agreement is reached before November 2010, the EU could suspend some rights given to US airlines under the Open Skies pact.
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