Monday, December 13, 2010

U.S./Brazil Agreement Online

Readers interested in reading the new Open Skies-in-waiting agreement between the United States and Brazil can access the text through the State Department's website.  See Air Transport Agreement, U.S.-Brz., Dec. 3, 2010 (available here).

http://lawprofessors.typepad.com/aviation/2010/12/usbrazil-agreement-online.html

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Comments

The position of Brazil with regard to the move from Substantial Owenership and Effective Control to the Principal Place of Business is very interesting in this agreement. Brazil is still in the process of raising the owenership cap from 25% to 49% and had until very recently a policy to maintain the SO&EC provisions in its agreements eventhough it was opened to consider more liberal clauses. Like Switzerland from 2005, the prospective merger between LAN and TAM has probably resulted in a move from Brazilian authorities to seek replacement of the traditional SO&EC provisions to favour this merger project and ensure the continued strong development of TAM internationally.

Posted by: Sylvain GLOUX | Dec 16, 2010 7:48:52 AM

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