Status of U.S.-EU Bilateral Agreement

1. Status of U.S.-EU Bilateral Agreement Mary Cheston, FAA & Claude Probst, EASA

2. Progress in Negotiations The Developing Agreement Status of Implementation Procedures Airworthiness Maintenance Environmental Certification Licensing and Simulators Overview

3. Because the U.S. and EU regulatory systems are different in several key areas, a treaty level document is necessary in Europe in order to provide a derogation from EU law. Involves formal ratification process in Europe. Agreement would remain an Executive Agreement in U.S. structure (not treaty level). Progress in Negotiations

4. New agreement with EU will replace bilateral agreements at the national level. New agreement will have similar structure to a BASA… ... but will be presented together with Implementation Procedures to be ratified. Progress in Negotiations

5. Several rounds of informal discussions since October 2003 Two formal negotiations: Nov. 9-10, 2004 and April 13-14, 2005 --Next negotiation tentatively July 7-8, 2005 Progress in Negotiations

6. Executive Agreement text largely agreed; open issues include: Clarifying some terms such as “material, maintenance, environmental protection…” Considering the best way to address enforcement expectations and proprietary data protection given the Community’s legal structure and role of Member States The Developing Agreement

7. New items in draft agreement: Regulatory cooperation Formal oversight board mechanism More detailed dispute resolution provisions The Developing Agreement

8. Format/structure of implementation procedures under discussion. First negotiation held June 1-3; three more negotiation sessions scheduled during 2005. Initial meetings to focus on scope of reciprocal acceptance and concepts, e.g. Global manufacturing Minimizing redundant approvals—design changes, repair data acceptance, etc. Airworthiness

9. Formal negotiation schedule to be determined. New special conditions tentatively agreed as a consequence of changes to Part 145 in the U.S. and Europe. Current focus is on how to update current Maintenance Implementation Procedures (MIPs) to reflect these new special conditions. Maintenance

10. Three meetings since April 2004 Agreements at latest April 20-21, 2005 meeting: Cost and Benefits for Authorities performing single certification Background required for environmental certification specialist Training required for environmental certification specialist Environmental certification assessment to be completed Environmental certification to be included in the IPA Environmental Certification

11. Next Steps Incorporate cost/benefit, training and environmental specialist education requirements in the report for an EASA decision to pursue reciprocal acceptance. Continue to build elements for text in the IPA. Environmental Certification

12. Resolution of open items from FAA’s assessment of EU regulatory system. Execution of shadow certification projects Licensing and Simulators: If EASA has competency in the area of flight crew licensing at the time of the final agreement, Implementation Procedures for Licensing (IPL) and Simulator Implementation Procedures (SIP) may be included as part of the agreement package. Agreed text will need to be translated into 19 official EU languages and ratified by the European Community. Open Issues

13. Both governments are working diligently towards the conclusion of a new agreement. Summary