One Step Up, Two Steps Back?

Just when it appeared things were maybe getting better between the European Union and the United States over the issue of unfair government subsidies of its aircraft manufacturers, comes word out of Brussels that no agreement can be reached with the US until the questions surrounding foreign ownership of US airlines is clarified.

"Until everything is agreed, there is no agreement. Make no mistake about that," British Transport Secretary Alistair Darling told reporters, according to Reuters.

EU states have been generally supportive of the progress in the ongoing "open skies" talks between the two entities, and a tentative agreement reached last month between the EU and US was met with relief on both sides of the Atlantic.

However, Britain said no agreement would be final until the EU concerns were addressed.

"Until everything is agreed, there is no agreement. Make no mistake about that," British Transport Secretary Alistair Darling told reporters. Britain currently holds the rotating EU presidency. 

The EU may have motivation to reach a deal soon with the US, however, as EU transport ministers also declined to give the executive body the power to negotiate an aviation deal with China -- an emerging powerhouse in the global aviation market -- for the full bloc of EU nations.

"The Commission is engaged very heavily with the United States at the moment," Darling said. "To move to a formal mandate to negotiate something (with China) at this stage we all agreed was premature."

The EU governing body expects to try again with negotiations on the China deal next year... hopefully, after issues with the US are resolved.

FMI: www.eu.int