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International Commercial Shipping Agreement in Micronesia

PALIKIR, Pohnpei (FSM Information Service): April 30, 1998 - an Agreement on Regional Cooperation for Commercial Shipping in Micronesia is being transmitted to Congress for ratification, according to a communication from FSM Vice President Leo Falcam on April 20.

a draft resolution for ratification of the "Agreement on Regional Cooperation in Matters Affecting International Commercial Shipping in Micronesia" (the MSC Agreement) by the FSM Congress accompanied the agreement.

The MSC Agreement provides for cooperation among the FSM, the Republic of Palau and the Republic of the Marshall Islands in commercial shipping. Under the agreement, carriers which provides the greatest benefits to the region will be allowed Entry Assurance.

The agreement would allow most advantageous competition scheme while avoiding monopoly and excessive competition. The regional coordination and cooperation offers advantages for negotiation of services. For example, Yap's location on the route to Palau and Kosrae's proximity to Ebye requires coordination with the RMI and Palau, Falcam stated.

This administration wholeheartedly support the Agreement and urged Congress to ratify it, Falcam concluded.

Commercial Shipping is the link between the FSM, RMI and Palau with exporting nations who conduct commercial activities in this region.

Without their own adequate shipping companies, foreign commercial shipping companies are providing this vital link via the Entry Assurance agreement negotiated annually between the representatives of the regional governments and the Commercial Shipping Companies.

The initial MCS Agreement was established in 1974 during the Trust Territory Administration and was in existence until it was renegotiated on Guam on November 21, 1997.