3.2 In 1976, the European Economic Community and Canada signed a framework agreement on economic cooperation, the first formal agreement of its kind between the EC and an industrialized partner country. Both the EU and Canada are committed to reviving global economic growth and have embarked on a new type of trade agreement, an agreement to improve trade and investment, to remove regulatory barriers and improve investment in each other`s markets. In a joint political declaration and an action plan adopted in 1996, the two sides agreed to strengthen cooperation in the areas of aviation safety and air traffic management. 4.4 The liberalization of air transport between Canada and the EU would have particular benefits for markets that remain governed by restrictive air transport agreements between Member States and Canada. It could remove existing capacity and price restrictions, opening up opportunities for industry and consumers. Removing existing geographic restrictions (limited number of points) could further increase the number of services between the EU and Canada. In particular, restrictions on the West Coast (Vancouver) and on several EU Member States should be lifted. Finally, new markets will emerge, particularly in Central and Eastern Europe, between Canada and Member States that do not yet have an agreement on air services. 2.9 The Aviation Control Authority of Canada is the Department of Transportation (Transport Canada), which is assisted by the National Transportation Agency (ATC) of Canada, which is responsible for licensing. Transport Canada is responsible for international relations, safety, safety and transportation-related environmental regulations.
Air Traffic Services is provided by Nav Canada, a private service provider. In the area of competition, the Canadian Competition Bureau is under the authority of the Department of Industry. 2.4. Unsurprisingly, Canada`s largest international aviation partner is the United States of America. According to Canadian data, 18.6 million people travelled between the two countries last year. In 2005, Canada and the United States expanded their existing air transportation agreement and opened the market. However, the agreement did not grant rights for cabotage (transport between two points within the other country) or for operations of the 7th freedom (independent services between two countries outside the country of origin). 5.2 Negotiating an open airspace agreement with Canada would seek to open up both market access and investment opportunities. Some Member States have already implemented reciprocal market access with Canada. However, some agreements remain quite restrictive. This unbalanced framework has created inequalities in the possibilities of Community air carriers, which are not compatible with equal opportunities for all EU air carriers in the internal market.