[Congressional Record Volume 145, Number 58 (Tuesday, April 27, 1999)]
[House]
[Page H2337]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             AVIATION BILATERAL ACCOUNTABILITY ACT OF 1999

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Illinois (Mr. Lipinski) is recognized for 5 minutes.
  Mr. LIPINSKI. Mr. Speaker, I rise today to ask my colleagues to join 
me in introducing the Aviation Bilateral Accountability Act of 1999. 
This legislation will require congressional approval of all U.S. 
aviation bilateral agreements.
  U.S. international aviation policy is determined by a series of 
bilateral aviation agreements. U.S. bilateral aviation agreements are 
executive agreements that are negotiated and signed by representatives 
from the Department of State and the Department of Transportation. 
Congress does not play any official role in the approval of these 
agreements.
  On April 9, 1999, Secretary of State Madeleine Albright and Secretary 
of Transportation Rodney Slater joined representatives from the 
People's Republic of China's aviation committee and agreed to a 
bilateral agreement between the United States and China. The dual 
agreement will govern aviation policy between the U.S. and China for 
the next 3 years.
  The new agreement allows for a doubling of scheduled flights between 
the two countries over the next 3 years. This increases the number of 
flights from 27 per week for each country's carriers to 54 per week in 
the year 2001. The new agreement also allows an additional carrier from 
each country to be designated to serve the U.S.-China market in the 
year 2001.
  Northwest Airlines, United Airlines, and Federal Express are the 
current U.S. carriers designated to serve the Chinese market. American 
Airlines, Delta Airlines, United Parcel Service and Polar Air Cargo 
have all expressed strong interest in serving the U.S.-China market and 
will no doubt compete vigorously to win the one additional carrier 
designation in 2001. The new U.S.-China aviation agreement also expands 
both direct and co-share service to more cities in both nations.
  The new aviation agreement was agreed to after 18 months of long 
negotiations between the United States and the Chinese civil aviation 
authorities. The agreement was signed at the same time that China's 
Prime Minister was visiting the United States.
  Many in the airline industry have praised the new agreement for 
expanding opportunities in the U.S.-China market. However, other 
industry members feel that the United States settled for too little too 
quickly. For example, United Parcel Service closely followed the 
negotiations and was particularly disappointed in the outcome.
  The large U.S.-China market could easily accommodate additional 
carriers. In fact, even today, roughly 60 percent of the cargo that is 
transported between the U.S. and China is carried on third-country 
carriers, such as Korean and Singapore carriers.

                              {time}  1645

  At first, U.S. negotiators held firm to the position that at least 
two new additional U.S. carriers should be added to the U.S.-China 
market. However, unfortunately, the final agreement only allows for one 
additional carrier in the year 2001. Therefore, all U.S. carriers, both 
passenger and cargo, must compete for the single designation. United 
Parcel is not optimistic that it will win this designation because of 
the historical preference given to passenger carriers in such cases. 
Therefore, according to United Parcel Service, a new U.S. cargo carrier 
will not enter the U.S.-China market under the new agreement. This 
means that foreign cargo carriers will continue to benefit from the 
market at the expense of U.S. carriers and the U.S. economy.
  I want to make it perfectly clear, however, I am not here today to 
criticize the new U.S.-China aviation agreement. Rather, I am here to 
point out that this agreement spells out how U.S. carriers will operate 
and compete in China for the next 3 years. China is the largest market 
in the world. It holds great trading potential for the United States. 
Yet the United States House of Representatives, the United States 
Senate did not play any official role in approving this agreement.
  For this reason, I am once again introducing the Aviation Bilateral 
Accountability Act which will require congressional approval of all 
U.S. bilateral aviation agreements. Aviation agreements have tremendous 
long-term impacts on U.S. carriers, U.S. cities, U.S. consumers and the 
U.S. economy. In effect, these agreements are trade agreements that 
determine the amount of access the U.S. will have to particular foreign 
markets. Congress should not be excluded from agreements of such 
magnitude.
  As Members of Congress, we represent those who will hopefully benefit 
from new aviation agreements--the businessman, the pleasure traveler, 
the consumer, and the flying public in general. Therefore, we should 
have the right to make sure that bilateral aviation agreements are 
negotiated to give U.S. consumers the most access to foreign markets, 
as the best price.
  I once again urge my colleagues to join me in introducing the 
Aviation Bilateral Accountability Act.

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