What Is Bermuda Agreement

(a) the tariffs to be collected by the air carriers of a contracting party between points on the territory of the United States and points on the territory of the United Kingdom, in accordance with this annex, are subject to the agreement of the contracting parties as part of their respective constitutional powers and obligations; In the event of a disagreement, the dispute is dealt with as outlined below. The best way to understand the benefits and challenges of the Bermuda plan is to compare it with other economic control agreements and plans. The general exchange of transit privileges (freedoms one and two) with the right to indicate the route and airports reserved for the nation flown over for security reasons is approved over time. In this respect, the Bermuda plan is already widely accepted. However, Ireland, France and Portugal (among other important countries) have not yet accepted the transit agreement and seem to want to insist that the exchange of transit privileges be limited to specific bilateral agreements. The proposed Montreal Agreement favours local operators by calculating the foreign operator of the fifth freedom of traffic at higher rates than the local operator for the same service. For example, the rate of an American carrier from London to Amsterdam on the transit line from New York to Amsterdam would be a fixed percentage higher than that of competitive British or Dutch local services. Such a formula seems extremely difficult to manage and not just for the travelling public. The Montreal Agreement also proposes to give the international authority the final authority to determine whether a nation is operating a general (or fifth freedom) transmission frequency or capability that violates principles similar to those of the Bermuda Plan and to order remedial action. In other words, the Montreal plan would provide for audit control, as in the Bermuda plan, but actual police power would be transferred to the international organization. This raises a fundamental question. Should this problem of economic control be solved by inviting the nations of the world to cede to some of their sovereign power over their own national transport – something that has never been done in the area of commercial shipping? Or is it better to reach a final agreement, as in the Bermuda plan, and leave it to each nation to meet its air transport obligations, just as each country expects to meet other international obligations and control its own citizens? This is the question that runs through all the major decisions of our time.