U.S.-China maritime agreement takes effect

U.S.-China maritime agreement takes effect    An exchange of diplomatic letters between U.S. and Chinese government officials April 21 brought the new bilateral maritime agreement between the countries into effect.
   “This achievement culminates a negotiation that has lasted nearly six years,” said the U.S. Commerce Department in a statement Friday. “The agreement will open up significant new business opportunities for U.S. carriers and transportation intermediaries doing business in China.
   “The exchange of diplomatic notes marking the entry into force of the agreement is a significant event in the maritime relations of the two countries,” the department added.
   The new U.S.-China maritime agreement was signed by the countries Dec. 8. The previous bilateral maritime agreement expired in 1998. Since then, the maritime relationship between the countries has been strained by U.S. concerns over competition restrictions in China, new Chinese regulatory and financial burdens on non-vessel-operating common carriers, and China’s continuing criticism of the stringent U.S. rules applicable to government controlled carriers, COSCO Container Lines, China Shipping Group and Sinotrans.
   In early April, the U.S. Federal Maritime Commission agreed to amend its rules governing the financial responsibility for ocean transportation intermediaries to allow licensed NVOs the option to secure riders on their U.S. bonds to bring them in compliance with China’s new maritime law.
   The agency also agreed to accept petitions by the three Chinese carriers to liberalize the U.S. Controlled Carrier Act’s 30-day advance requirements for tariff rate reductions. With the exception of COSCO, which had partial tariff reduction exemption under the act, the Chinese carriers had to wait 30 days to make rate changes in response to competitors.