Press Statement
Adam Ereli, Deputy Spokesman
Washington, DC
June 18, 2004

U.S. Concludes New Aviation Agreement with China

The Department of State is pleased to announce that on June 18, U.S. and Chinese negotiators initialed the text of a landmark protocol amending the U.S.-China bilateral air services agreement. The Terms will be applied provisionally as of June 18. This important agreement demonstrates that the Administration’s focus on achieving real results in our economic relationship with China brings benefits to American workers, businesses, and consumers.

Over the next six years, the amended agreement will permit a nearly five-fold increase – from 54 to nearly 250 – in the number of weekly flights U.S. carriers can operate to China. It will also increase from four to nine the number of U.S. airlines that may serve China.

The agreement will fully liberalize pricing as of 2008, and will allow carriers to establish cargo hubs in the other country with nearly unlimited operational rights.

“This agreement will dramatically increase the opportunities for U.S. air carriers and expand passenger and cargo services in the rapidly growing China market,” said Secretary Powell.

The agreement was reached in Washington after four rounds of talks starting last February, led on the U.S. side by the Departments of State and Transportation. The terms of the agreement take effect provisionally as of June 18.

2004/693

Released on June 18, 2004

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