U.S. Secretary of Transportation Mary E. Peters today announced that the United States and Croatia concluded an Open-Skies agreement that will establish free trade in aviation services between the two countries. The aviation agreement is the first between the countries and comes after two days of negotiations in Zagreb, Croatia.

"This agreement continues our effort to improve transportation and trade ties with nations around the world that help our companies and our travelers," said Secretary Peters. "Today's agreement lays the groundwork for future air service between the United States and Croatia that will provide new options for travelers as well as economic benefits to both countries."

Under the new agreement, airlines from both countries will be allowed to select routes and destinations based on consumer demand, without limitations on the number of U.S. or Croatian carriers that can fly between the two countries or the number of flights they can operate. The agreement also contains no restrictions on capacity and pricing, and provides opportunities for cooperative marketing arrangements, including code-sharing, between U.S. and Croatian carriers.

The U.S.-Croatia agreement offers U.S. cargo carriers special benefits by allowing them to carry air cargo between Croatia and third countries without requiring a stop in the United States.

With this agreement, Croatia becomes the 91st U.S. Open-Skies partner. The agreement will take effect after it is signed.