International Air Transport Agreements and Regionalism: The Impact Of The European Union Upon The Development Of International Air Law. Jean Monnet/Robert Schuman Paper Series Vol. 5 No. 20, July 2005

[From the introduction]. There is currently a strong trend in the international market towards increased liberalization of the air transport sector. This trend is gaining momentum worldwide; Dempsey and Gesell explain: “Although nationalism remains an issue with most countries, global market forces, aided by U.S. policy, are moving the industry closer to an open skies policy.” (2) In addition to U.S. policy, the European Union’s (EU) widereaching developments in the industry are also a driving force that must be recognized; arguably, in recent years, pressure from the EU has taken over from the United States as the driving force for change. Globalization, integration, and regionalization of international economies are thus challenging the traditional approach to regulation of this vital sector, a sector which is experiencing rapid transformation and reform. Due to recent developments in air transport services such as “open skies” agreements between governments, commercial alliances between international carriers, and increased attention to the promotion of free competition, the world appears to be evolving into one global air traffic market. In many important ways the driving force behind this change is the EU. The impact of the pressure from the EU is not only felt by its major partners such as the United States but arguably this pressure from the most important regional grouping in the world is having an impact on other regional arrangements. This pressure from the EU is also making itself felt in the world of international air transport law. Ultimately it will also be felt in the multilateral trade law arena