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REMARKS AS PREPARED FOR DELIVERY

U.S. SECRETARY OF TRANSPORTATION NORMAN Y. MINETA

U.S. SECRETARY OF TRANSPORTATION

OPEN SKIES FOR AFRICA AVIATION CONFERENCE

WASHINGTON, D.C.

JUNE 28, 2001

 

Serving as Secretary of Transportation is a life-long achievement for me, and I was honored when President Bush asked me to serve in this role.  And, I look forward to working with all of you on the transportation challenges that Africa and the United States face in the 21st century.

 

From the beginning of his Administration, President Bush has made it clear that he wants Africa to be a priority.  Indeed, on May 16 at the White House, President Bush announced that the United States will host the first ministerial-level U.S.-Sub-Saharan Africa Trade and Economic Cooperation Forum this October in Washington, D.C.  The Forum will discuss further measures that we can take to stimulate trade, develop prosperity and advance democracy in sub-Saharan Africa.            

 

In making the announcement in the Rose Garden, President Bush talked about the African Growth and Opportunity Act of 2000 passed by the U.S. Congress.  The Act opens American markets to countries that have embarked on the difficult but beneficial path of political and economic reform. 

 

Under that law, virtually all exports to the United States will be duty free from sub-Saharan countries that are moving toward market-based economies and the rule of law; that are lowering trade barriers and strengthening their commercial laws; that are combating corruption and eliminating child labor;   and that are showing enhanced respect for labor standards and human rights.

 

The Act also established a new Overseas Private Investment Corporation (OPIC) Infrastructure Fund that will encourage investment in crucial transportation, power, and other infrastructure projects and will support further expansion of trade financing through the U.S. Export-Import Bank.

 

Africa, a continent revitalized by change, is striving to become a full partner in the emerging global economy. 

 

And as more African countries embrace democracy and open their economies, growth is increasing and standards of living are rising.  But if you, and we, are to reap the full benefits of reform, revitalized transportation sectors must be in place to support your growing economies. 

 

Throughout my career -- whether in local government, or on the Transportation Committee in the United States Congress, or in the private sector, or as a Cabinet Secretary, I have often seen the power of transportation as an engine for building prosperity, strengthening economic development, and improving the quality of life.

 

Without effective transportation links, national or global economies cannot continue to develop, function and expand.  Without a responsive transportation system, tourism and trade cannot develop to their full potential. 

 

Now while we know it is important to consider the entire intermodal system in transportation planning, the focus of this conference is aviation.  Safe, secure and dependable air transportation is vital to the economic development and well-being of the countries of Africa.  Developing a safe and secure aviation infrastructure is essential if African countries want to develop strong economic and trade relationships with the United States and other nations and regions.

 

Trade and economic cooperation between the United States and Africa is already significant.  Last year, total U.S.-African trade approached $30 billion.  America is Africa’s largest single market, and the United States is the leading foreign investor in Africa.

 

With more than 10 percent of the world’s population and vast reserves of natural resources, Africa represents a market with outstanding potential.   

 

The 48 countries of sub-Saharan Africa constitute a market of more than 700 million people. 

 

To help Africa tap more of that potential, the United States created the Safe Skies for Africa Initiative in April 1998 to promote sustainable improvements in aviation safety and security in Africa, and to create the environment necessary to foster the growth of aviation services between Africa and the United States.  The Initiative recognizes that safe skies are a prerequisite for increased trade and investment and long-term economic development in Africa. 

 

The goals of the Safe Skies Initiative are to:

 

 

One of our most successful Safe Skies activities has been our on-going efforts to work with the government of President Obasanjo to improve safety and security in aviation and in other transportation sectors in the newly democratic nation of Nigeria. 

 

I am pleased that in December of 1999, the Department of Transportation lifted the six-year ban which prohibited service between Nigeria and the United States because of security reasons.  This resulted in the reopening of direct flights between Nigeria and the United States in February. 

 

This major hurdle was achieved because of the hard work of Nigeria in making reforms as well as technical assistance provided by our Federal Aviation Administration.  We look forward to continuing this success working with Minister Chikwe and her team.   Recently, I had the opportunity to meet with President Obasanjo and affirmed our commitment to continue cooperative efforts in aviation and transportation. 

 

We remain fully committed to the Safe Skies for Africa Initiative and we are continuing to work toward these goals.

 

Mr. Ross Hamory, Director of International Aviation at our Federal Aviation Administration, will be presenting a progress report on the Safe Skies for Africa Initiative later this morning.

 

The host governments participating in Safe Skies bear primary responsibility for funding the Safe Skies program and must be willing to devote the necessary resources.  We encourage these countries to capture aviation revenues (such as overflight and landing fees) and to re-invest these revenues into their aviation infrastructure as an investment in their overall economic growth.

 

Other U.S. agencies, as well as the ICAO, the International Air Transport Association (IATA), other regional aviation groups, and a number of private sector partners, are assisting in the Safe Skies partnership.

 

Safety and security provide the essential foundation for developing air services.  But, to build on that foundation, to participate fully in the global aviation system, governments must create aviation regimes that provide the right regulatory environment. 

 

For example, our Federal Aviation chief has autonomous decision-making authority with regard to civil aviation, although she is accountable to our Congress.  We feel this arrangement has served our flying public well and has provided a sense of stability throughout changes in political administrations. 

 

The most important issue for those of us involved in transportation is safety, safety, and safety.  It is crucial that the nations of Africa adopt laws that will assist your civil aviation authorities in providing reliable safety oversight.

 

Nations must also create regimes that rely on competitive forces in the marketplace and allow airline management to make decisions about where and when they will provide service and what they will charge for that service. 

 

That is why, in addition to Safe Skies, we are also seeking to liberalize bilateral aviation agreements between the United States and individual African countries through Open Skies aviation service agreements   --   the same agreements we have entered into around the world with 53 countries.

 

In fact, we now have open skies agreements with 10 African countries.  The first   –   Tanzania in 1999 – was followed by Namibia, Burkina Faso, Ghana, The Gambia, Nigeria, Morocco, Rwanda, Benin, and Senegal . 

 

We have already seen many new air service links between the United States and Africa in the past few years based on these agreements.  Numerous African cities throughout the continent now receive code-share service provided by U.S. carriers with their European partners. 

 

Delta Air Lines offers service to Morocco and South Africa with the national carriers of those countries, and has recently introduced direct service to Cairo.  Ghana Airways now offers service to Baltimore and Ethiopian Airlines, whose government has indicated that they are favorably considering an open-skies agreement, is serving Dulles Airport. 

 

The development of these services has come about because countries have recognized the benefits of liberalization, not only to their airlines but to their entire economies.

 

We want to see these services grow and develop, and our Open Skies approach is making that happen.

 

DOT studies, particularly of the transatlantic market, show that the competition spawned by the Open Skies agreements and the development of alliances has resulted in more flights at lower prices -- a win for the airlines that can now respond to market needs, but more importantly a win for the users, passengers and shippers of air transportation services.

 

We have also moved beyond bilateralism.  Last November, the United States and four of our Open Skies partners in APEC (Asia Pacific Economic Cooperation), Brunei, Chile, New Zealand and Singapore announced that they had agreed in principle and initialed a Multilateral Agreement on the Liberalization of International Air Transport.  This agreement was formally signed on May 1.  It is the world’s first multilateral Open Skies accord.

 

We will urge other aviation partners to join the multilateral. 

 

To foster a liberal, integrated international aviation regime worldwide, we will also urge our bilateral partners to eliminate restrictions in their aviation regimes with each other.  The Model Air Commerce Act that we presented last March at the Air Transport Liberalization Workshop in Bamako is one tool for achieving that objective. 

 

We know, furthermore, that many African countries, through regional organizations and agreements, are moving to eliminate restrictions on service with their neighbors.

 

The United States welcomes increased cooperation, whether on a regional basis, on a bilateral basis, or both.  But real cooperation and action is essential.  It’s time to translate worthy ideals and goals into practice.  We must work diligently together to lock in the gains that we have made to facilitate the development of air service to and within Africa.

 

As reform spurs growth and a better quality of life in Africa, it will create new and bigger markets for trade and travel in both directions.  Of course, serious natural and manmade challenges remain.  But, working together with the United States and other nations,  President Bush and I believe that Africa can overcome those challenges.

 

The people of Africa have suffered much from political oppression and inward-looking economic policies.  Africans themselves now recognize that democracy and open trade can lead the way to a brighter future.  

 

The United States wants to engage the countries of Africa as valued economic and aviation partners in a safe, secure, and liberalized environment.  We are eager and committed to working with you to that end. 

 

   Thank you very much.

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Briefing Room