FOR IMMEDIATE RELEASE
Wednesday, October 20, 1999
Contact: John Swank
Tel. (202) 366-5807
MARAD 04-99
U.S. Secretary of Transportation
Rodney E. Slater Leads Transportation
and Trade Mission to Latin America, Signs Maritime Agreement with
Brazil
RIO DE JANEIRO, Brazil -- U.S. Transportation Secretary Rodney E. Slater, leading a trade mission in support of President Clinton’s commitment to a well-integrated Western Hemisphere transportation system, today joined with Brazilian Transport Minister Eliseu Lemos Padilha in signing a major three-year maritime agreement that ensures that each country’s shipping lines will be treated equally when carrying cargo from the other country.
"On behalf of President Clinton and Vice President Gore, we are pleased that we’ve reached an agreement that promotes the principle of reciprocity in the shipping relations between the United States and Brazil," Secretary Slater said. "The peoples of our respective countries can look forward to a strong bilateral maritime partnership with Brazil, for which this agreement is a foundation."
The agreement ensures each country’s national-flag shipping lines equal access to commercial cargoes and to cargoes whose shipment is controlled by the other country’s government, except defense cargoes and agricultural assistance cargoes.
The bilateral agreement calls for liberalization of maritime trade and provides that each nation will not discriminate against the other’s carriers with respect to maritime-related services and facilities, including shipping taxes.
Secretary Slater commended U.S. Maritime Administrator Clyde J. Hart Jr., who attended the signing ceremony, for his leadership of the U.S. team which negotiated the agreement. Hart began talks in February with his Brazilian counterpart, aimed at resolving a serious dispute over previous discriminatory international ocean shipping practices by Brazil. During those talks, Brazil agreed to eliminate a tax preference favoring shipments on certain Brazilian vessels.
The Secretary noted that value of U.S.-Brazil maritime trade has grown rapidly, from $7.5 billion dollars in 1993 to $12.2 billion in 1996.
The new agreement will restore unfettered access for U.S.-flag carriers to government-controlled cargoes whose shipments are arranged by the Brazilian government, which historically have been broad in scope in Brazil. In recent years, the Brazilian government has acted to reduce the share of cargoes subject to preference, making more available to open competition.
Secretary Slater acknowledged the U.S. State Department, the American Embassy in Brazil, and the U.S. maritime industry, including both carriers and shippers, for their strong support throughout the negotiating process.
Secretary Slater’s visit to Rio de Janeiro is part of a week-long transportation and trade mission to South America. He earlier toured transportation projects and met with officials in Curitiba and Brasilia, Brazil, and tomorrow will travel to Santiago, Chile to sign an Open Skies aviation agreement. He will conclude his trip with an Oct. 21-22 visit to Lima, Peru, to discuss transportation issues and projects.
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