Rep. DeFazio: FMC should not be “doormat” for China

Rep. DeFazio: FMC should not be “doormat” for China

Rep. DeFazio: FMC should not be “doormat” for China

   Rep. Peter A. DeFazio, D-Ore., said the U.S. Federal Maritime Commission should not give into China by granting rate-filing exemption requests made by three Chinese state-controlled liner carriers.
   At the encouragement of the U.S. Maritime Administration, which led the negotiations for a new bilateral maritime agreement with China, the FMC agreed at a Jan. 21 meeting to consider petitions to liberalize the U.S. Controlled Carrier Act’s 30-day advance requirements for tariff rate reductions for China Ocean Shipping (Group) Co. (COSCO), China Shipping Container Lines, and Sinotrans Container Lines. With the exception of COSCO, which has partial tariff reduction exemption under the act, the Chinese carriers must wait 30 days to make rate changes in response to competitors.
   DeFazio told a House Transportation and Infrastructure subcommittee on the Coast Guard and maritime transportation Thursday that he was concerned about the FMC’s oversight approach to COSCO and the other Chinese carriers.
   “I would like to know when we’re going to stop being a doormat for the communist Chinese,” DeFazio said. “I’m concerned we’re conceding with them instead of retaliating appropriately.”
   DeFazio said China has been slow to improve trade conditions for U.S. shippers. He noted that Oregon wheat farmers have waited two years for access to the Chinese market.
   “The Chinese are good at playing this waiting game, yet you give them upfront this concession,” he said. “I’ve heard it all before. Sooner or later we have to stand up to them, and sooner rather than later, because otherwise we’re not going to be able to stand up to them at all.”
   The FMC took comments from the shipping industry about the Chinese carrier exemption requests through Feb. 23. FMC Chairman Steven R. Blust told the subcommittee that none of the comments received opposed the requests. “I can’t speak on behalf of my fellow commissioners, but things look positive for moving forward on this,” Blust said.
   The FMC is considering the exemption requests and could make its decision as early as late March or April, Blust said.
   Rep. James L. Oberstar, D-Minn., said he supports the FMC’s approval of the exemptions for the three Chinese carriers, citing that it “marks an important step” in U.S. trade with China.