[Congressional Record (Bound Edition), Volume 149 (2003), Part 21]
[Extensions of Remarks]
[Page 29849]
[From the U.S. Government Publishing Office, www.gpo.gov]




     U.S.-CHINA MARITIME AGREEMENT BEGINS A NEW ERA OF COOPERATION

                                 ______
                                 

                         HON. JAMES L. OBERSTAR

                              of minnesota

                    in the house of representatives

                       Tuesday, November 18, 2003

  Mr. OBERSTAR. Mr. Speaker, I rise today to express my support for the 
recent U.S.-China maritime agreement, the result of successful U.S.-
China maritime negotiations that concluded in August of this year. The 
agreement, which is now under final review by the Departments of 
Transportation and State, is the most significant maritime pact with 
China in the last 15 years, and represents a major breakthrough in 
U.S.-China maritime relations. Its conclusion is a testament to the 
will of both governments and the importance of U.S.-China bilateral 
relations.
  The recently announced framework agreement between the U.S. and China 
is significant because it addresses a number of longstanding 
impediments to expanding maritime trade between our two nations. The 
agreement achieves a long overdue goal, which I have supported, of 
ensuring a level playing field for both countries. While the specific 
details of the agreement are yet to be released, the fundamental issues 
of concern for the U.S. involved market access issues such as: bonding 
for Non-Vessel Operating Commercial Carriers, opening branch offices, 
and provision of logistics services. Issues for China included the 
filing of confidential freight rates and controlled carriers, among 
others.
  The commitment of lead U.S. negotiator Captain William Schubert, U.S. 
Maritime Administrator and his Chinese counterpart, Su Xiang, Director 
General of the Department of Water Transport, was significant in 
reaching this agreement. Captain Schubert and Director General Su 
reflected the newfound will of their governments since the expiration 
of the last agreement in 1998.
  Since 1998, the policies of the government of China on international 
maritime trade have evolved from protectionism, to an acceptance of the 
benefits of competition and open access for consumers and shippers of 
both countries. In January 1999, I met with Vice Minister of 
Communications Hong Shanxiang in Bejing. Minister Hong referred to 
China as a developing country whose maritime interests needed 
protection. I pointed out that in maritime it was the United States 
that was in the position of a developing country, with our fleet 
declining from 3,000 vessels in 1945 to 450 in 1999, making us the 
smallest maritime nation. China, meanwhile has become a maritime power.
  I am pleased that the government of China has now recognized that in 
the maritime field, their industry is capable of meeting the 
challenges, and gaining the benefits, of a competitive system. With 
this agreement, both governments committed to making the concept of a 
more open and economically successful bilateral maritime relationship a 
reality.
  The China Ocean Shipping Company (COSCO) was an important force 
behind the U.S. China Maritime agreement. COSCO is the 5th largest 
shipping company in the world and the principle maritime carrier 
between Asia and the United States. I wish to applaud COSCO's 
leadership in both Beijing and Washington, notably Mr. Gao Weijie, who 
kept all of us informed and helped to forge a consensus among the 
maritime parties involved.
  Much work remains once the agreement is officially signed. Both sides 
must take completing actions to ensure that the discriminatory policies 
are dismantled, as provided for in the agreement.
  Mr. Speaker, as the Ranking Democrat on the House Transportation and 
Infrastructure Committee, and an active maritime policy participant for 
over two decades, I want to commend Captain Schubert and Bruce Carlton 
of MARAD, Minister Hu of China, Mr. Gao of COSCO, and all maritime 
agreement participants who worked so hard to ensure that this U.S.-
China Maritime agreement would become a reality.

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