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REMARKS FOR
THE HONORABLE NORMAN Y. MINETA
SECRETARY OF TRANSPORTATION

EUROPEAN AVIATION CLUB AND BRUSSELS AMERICAN CHAMBER OF COMMERCE DINNER
BRUSSELS, BELGIUM

APRIL 6, 2004
7 PM

Thank you, Rigas, for that kind introduction. I cannot say enough about the tremendous hospitality that my staff, my wife Deni, and I have received here in Brussels and throughout our visit.

Because President Bush understands the global nature of the economy in the 21st Century, he has made expanding trade a priority in his agenda for keeping America on track for a prosperous future.

Everyone in this room fully appreciates that transportation lies at the core of international trade. The global economy depends on the mobility of people, of products, and of capital across borders. And the question we must ask is this: How do we facilitate these global flows, which are increasingly important to the competitive viability of both businesses and nations?

The answer is safety, capacity, security, and liberalization.

Our transportation systems must operate safely if they are to support the global economy.

Our Safe Skies for Africa initiative, for example, is helping support Africa’s integration into the global economy by promoting sustainable improvements in aviation safety and security.

One reason for my trip to Europe is to participate in the World Health Organization’s launch of a year-long campaign to promote road safety around the world. I have with me, Dr. Jeff Runge, Administrator of the National Highway Traffic Safety Administration.

It surprises people to learn that traffic fatalities kill more than 1.2 million men, women, and children each year – and injure another 25 million. Even more sobering is the projection that, by 2020, traffic crashes are expected to be the third largest cause of death globally – ahead of malaria, tuberculosis, and HIV/AIDS.

Tomorrow, I join President Chirac and other world leaders in Paris for World Health Day 2004, where this year’s theme is, Road Safety Is No Accident. I then follow up at a special session of the General Assembly of the United Nations next week.

The United States is committed to joining with the international community in helping other nations prevent roadway deaths and injuries by sharing what our experiences over the past 40 years have taught us.

We also have much to learn from one another within the international community.

In fact, the highlight of our day yesterday was our tour of the Port of Rotterdam. I was especially intrigued by the Port’s short sea shipping operations and activities.

You are far ahead of us on this side of the Atlantic when it comes to taking advantage of the marine transportation system to transport cargo. So we are eager to learn all that we can from Europe about short-sea shipping and using waterways to expand freight capacity and relieve congestion along our highways.

Capacity, especially expanding capacity, is critical to the success of the global transportation network. The developed world has both an interest and a responsibility to help developing nations build capacity. The economic future of these countries hinges on having the transportation infrastructure that will allow them to participate fully and successfully in the global economy.

Last month, I visited Afghanistan and Iraq, where the United States is actively engaged in building transportation infrastructure. I saw first-hand the vital role that transportation must play in rebuilding the economies of these countries and opening the doors to the outside world for people once trapped behind their borders.

The challenges are not insubstantial. In addition to the ever-present task of improving transportation infrastructure, we continue to confront the challenge of ensuring its security.

Transportation security is not just a challenge in Afghanistan and Iraq.

The recent tragic events in Madrid are a stark reminder that transportation assets remain a target of choice by terrorists, as they seek to disrupt our economies, test our resolve, and foment international dissension.

For our country, responsibility in this critical area is now centralized with the Department of Homeland Security. However, it was the Department of Transportation that initially responded to securing our transportation network in the aftermath of the horrific attacks of September 11th.

Having spent the better part of the past two-and-a-half years thinking about how best to tackle the issue of transportation security, I am convinced that international cooperation must be a critically important part of the equation.

Richard Reid showed us that terrorists understand just how interconnected our transportation systems are.

And these systems will become increasingly connected as more transportation markets liberalize.

Under President Bush, the United States has been very active in promoting liberalization of transportation markets. We approach trade liberalization flexibly and through multiple avenues – bilaterally, multilaterally, and regionally.

We have achieved a great deal of success through bilateral agreements. For example, this past December, the United States and China signed a five-year maritime agreement – one of the most far-reaching bilateral agreements in the history of trade between our two nations.

We also have made dramatic progress in aviation. Starting with the Netherlands in 1992, the United States has concluded 60 bilateral Open Skies agreements.

I am particularly pleased that, over the past three years, we have been able to add eight new Open Skies partners. Today, the United States has Open Skies agreements with 11 of the 15 current European Union member states, and 4 of the 10 accession states.

Study after study shows that Open Skies agreements help expand the overall market for aviation and produce enormous benefits for millions of passengers in the form of better quality, lower-priced, and more competitive services.

For example, our studies found that the average fare between 1996 and 1999 decreased twice as much in Open Skies transatlantic markets (20%) as it did in transatlantic markets without Open Skies agreements (10%).

Multilaterally, the United States is working through organizations, such as the International Civil Aviation Organization (ICAO) and the International Maritime Organization (IMO), to institutionalize our progress.

And we continue to negotiate with the European Union to craft an Open Skies agreement.

Open Skies between Europe and America would create the largest, freest market in air transportation ever. Open Skies would mean cheaper transatlantic fares, more travelers, and healthier competition.

Those of you who have been following the negotiations know that, last year, the European Commission received a mandate from the member states to negotiate an Air Services Agreement with the United States.

Just last week, here in Brussels, delegations concluded the fourth round of these negotiations.

Vice President de Palacio and I have been monitoring the progress of these negotiations closely. We both believe that a window of opportunity exists to arrive at an historic first agreement.

We envision an agreement that will propel the already fast-moving rocket of airline liberalization to new heights – with strong potential for transforming the global aviation marketplace.

Our negotiators have made much progress on a host of complex topics. We have put a lot on the table that would form the core of this first agreement.

Perhaps foremost among them is the acceptance by the United States of the concept of the “European carrier” – that is, the right of any European carrier to fly from any European point to any point in the United States and beyond. This is a large step forward for the U.S.

There are additional core elements of great significance in a prospective deal. The Bush Administration has agreed to seek from the Congress a change in U.S. law that would raise the amount of voting stock permitted to non-U.S. interests from 25 percent to 49 percent.

We have embraced the idea of new, codified cooperation between the U.S. Department of Transportation and the Commission on competition matters.

And we are committed to setting a definite timeline for continuing the discussion after we sign an initial Open Skies agreement.

We must seize the moment, or risk closing the door on Open Skies.

Another negotiation round will take place in Washington in May. My Assistant Secretary for Aviation and International Affairs, Karan Bhatia, and I will be working with Vice President de Palacio and her staff to seize this historic opportunity.

Bilaterally, regionally, and globally, President Bush has been a strong supporter of greater international cooperation, exchange, and assistance with respect to transportation.

And this historic agreement offers an opportunity for Europe and the United States to lead the way to a freer, more market-oriented aviation industry and to set the stage for expanded commerce and increased prosperity on both sides of the Atlantic – and around the world.

Again, thank you for taking time from your own busy schedules to be here this evening and for allowing me to share my thoughts with you this evening. Travel safely, and thank you very much.

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Briefing Room