Fact Sheet: President Clinton & APEC Partners Announce Multilateral "Open Skies" Aviation Agreement (11/15/00)
(Bandar Seri Begawan, Brunei Darussalam)
______________________________________________________________________For
Immediate Release                             November 15, 2000
PRESIDENT CLINTON & APEC PARTNERS ANNOUNCE
MULTILATERAL "OPEN SKIES" AVIATION AGREEMENT
The United States and APEC partners Brunei, Chile, New Zealand and
Singapore will announce that they have agreed in principle on a
Multilateral Agreement on the Liberalization of International Air
Transport.  This Agreement is the world's first multilateral "Open Skies"
accord and is open to accession by all nations.  The United States has
negotiated bilateral "Open Skies" agreements with 50 countries, including
Brunei, Chile, New Zealand and Singapore.  However, the Multilateral
Agreement represents the first successful effort to expand this approach on
a multinational basis, to promote safe, affordable and efficient air
transport services worldwide.  Aviation accounts for $1 trillion in global
economic activity and 22 million jobs; an efficient air transport system is
key to the expansion of international trade and commerce, including
electronic commerce.
THE MULTILATERAL AGREEMENT WILL OFFER THREE IMPORTANT BENEFITS:
? Provide a Competition-Enhancing Model for Future Agreements:  The
Multilateral Agreement mirrors the enormously successful U.S. Open Skies
agreements, which eliminate government restrictions on what routes airlines
can fly, the number of flights they can schedule and the fares they can
charge.  Thus it helps set the terms for the global marketplace and
increases the odds that the U.S. approach will become the international
standard.
? Expand Carrier Access to Equity Financing:   Most bilateral agreements
require that an air carrier must be substantially owned by either nationals
of its home country or the homeland government.  However, this requirement
has made it difficult for many foreign carriers, which lack access to large
domestic capital markets, to obtain cross-border financing.  The
Multilateral Agreement reduces the traditional ownership requirement, thus
enhancing foreign carriers' access to outside investment.
? Streamline International Aviation Relations:  Aviation is currently
governed by thousands of bilateral agreements between more than 180
countries.  The Multilateral Agreement will provide a single, streamlined
standard for commercial aviation relations.  By joining one multilateral
agreement, countries can avoid prolonged negotiation of countless
individual bilateral agreements.
THE MULTILATERAL AGREEMENT IS THE LATEST IN A CONTINUING SERIES OF EFFORTS
BY THE UNITED STATES TO LIBERALIZE INTERNATIONAL AIR SERVICES.  Since the
early 1990s, the United States has taken the lead in promoting an "Open
Skies" policy to support a competitive global market for airline passengers
and cargo.  This policy has enabled the competitive U.S. airline industry
to meet the growing demand for international air services and has resulted
in lower prices and more service options for consumers worldwide.  New
agreements negotiated by United States since 1992 have liberalized more
than 60 percent of U.S. international aviation traffic, allowing customer
demand and marketplace competition to determine the variety, quality,
quantity and price of air services.