[Congressional Record Volume 145, Number 153 (Wednesday, November 3, 1999)]
[House]
[Page H11444]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 ADDITIONAL ALL-CARGO SERVICE TO CHINA

  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, in April of this year the United States 
and the People's Republic of China signed a new civil aviation 
agreement. In addition to doubling the number of scheduled flights 
between the two countries, the agreement allows one additional carrier 
from each country to serve the U.S.-China market beginning in the year 
2001.
  Currently, three U.S. and three Chinese carriers have the authority 
to serve the U.S.-China market. The Department of Transportation will 
soon grant an additional U.S. carrier the right to fly directly to 
China.
  China is the largest market in the world, as we all know, and holds 
great trading potential for the United States.
  All-cargo carriers that provide time-sensitive express service play 
an important role in promoting trade opportunities for U.S. companies 
large and small. Express all-cargo carriers are able to connect every 
business and residence in the United States every day to China. 
Unfortunately, of the three U.S. carriers allowed to fly directly to 
China, Federal Express is the only all-cargo carrier serving the 
market. For this reason, United Parcel Service is now applying to the 
Department of Transportation for the right to fly directly to China.
  United Parcel Service has served the nations of Asia since 1988 and 
already operates an extensive ground network in China. By applying for 
the right to fly directly to China, United Parcel Service hopes to 
expand its Chinese service by using United Parcel Service jet aircraft. 
United Parcel Service would also provide needed competition in the all-
cargo express market.
  As the only all-cargo U.S. carrier, Federal Express now enjoys a 
monopoly advantage in the Chinese market. Allowing another all-cargo 
carrier like United Parcel Service into the vast China market would 
provide U.S. consumers and exporters with increased access in 
competitive service.
  More importantly, United Parcel Service would help meet the growing 
demand for air cargo service. Even with Federal Express in the market, 
roughly 60 percent of the cargo that is transported between the United 
States and China is carried on third-country carriers. In other words, 
foreign carriers benefit the most from the growing trade between the 
United States and China. This just is not right.
  However, if United Parcel Service is allowed to fly directly to 
China, then a U.S. carrier would be able to benefit from the growing 
demand for cargo service between the United States and China.
  This would, in turn, benefit the U.S. economy and U.S. workers. In 
fact, a recent study found that for every 40 additional international 
packages delivered by United Parcel Service each day, a new job is 
created at United Parcel.
  Let me run that by once again. A recent study found that for every 40 
additional international packages delivered by United Parcel Service 
each day, a new American job is created at United Parcel Service.
  In summary, Mr. Speaker, I would like to strongly urge the Department 
of Transportation to grant United Parcel Service the right to serve 
China. Awarding that right to United Parcel Service will bring 
competition to the marketplace, provide much needed service in the air 
cargo market, and provide substantial economic benefits to the United 
States and its citizens.

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