Specific examples of problematic areas include motor insurance and cabotage transport insurance, retention of title clauses and other security interests, factoring, standard terms, doorstep selling and funds transfers between banks.

- 3 - ACCESS TO COMMUNITY ROUTES FOR SCHEDULED AND NON-SCHEDULED FLIGHTS Prior to 1986 Capacity on intra-Community routes was shared on a 50-50 basis between the national airlines of the Member States involved". Fifth freedom" rights were granted on the basis of bilateral negotiations. Airlines not registered in a Member State were not authorized to engage in cabotage. Multiple designation (one Member State authorizing several airlines to operate on a single route) was allowed subject to certain conditions. As from 1993 Capacity sharing will be abolished.

Traffic rights should also be discussed as the "open skies" agreements proposed by the US to several EU countries (as indeed all bilateral aviation agreements) prevent cabotage by the European carriers in the American market, while the "divide and rule" US tactic in dealing with the EU has given American carriers cabotage rights in the EU internal market.

The EEA Council: - welcomed the positive decision of the EU Council on the proposal regarding the introduction of diagonal cumulation between the EEA countries, treated as one block for the purpose of rules of origin, and Switzerland and the associated CEEC, and expressed the hope that diagonal European cumulation would be in operation in the near future; - regretted that bilateral negotiations on autonomous measures related to processed agricultural products, which are an essential basis for the completion of Protocol 3 to the EEA Agreement, had not been concluded and urged all parties to do their utmost to conclude them in order for the EEA Joint Committee to work towards completion of Protocol 3 to the EEA Agreement; - noted that the p ...[+++]rocedures in the EU for the integration of the Regulation on maritime cabotage into the EEA, notably the consultation of the European Parliament, have been initiated and expressed the hope that a mutually satisfactory solution can be found soon; - noted the continuation of negotiations on parallel agreements with certain third countries concerning mutual recognition of conformity assessment (MRAs) in accordance with Protocol 12 to the EEA Agreement; - noted the good progress of extensive technical work in preparation for the integration of legislation on veterinary border controls into the EEA Agreement; opening the way for the extension of that part of the internal market into the EEA in time for the implementation of the new system of border checks by the EU. 8. The EEA Council reviewed the functioning of institutional aspects of the EEA Agreement.

The Chair: I have seen no indication that we are going down there to negotiate cabotage, Captain Andrews.

Mr. Eric Mainville: No, we haven't done any studies like that, the reason being that when we negotiated this deal with the Americans, from the very first day of negotiations both countries agreed not to talk about cabotage.