SHANGHAI, July 10 -- THE US and China have signed an aviation agreement that will significantly increase passenger and cargo flights between the two countries.

The pact signed yesterday by US Transportation Secretary Mary Peters and Chinese Minister of Civil Aviation Yang Yuanyuan will more than double commercial passenger departures by 2012 and allow unlimited cargo flights between the two countries, according to a US Transportation Department news release, The Associated Press reported.

The department plans to award a new route to a US carrier later this year. It is currently accepting proposals from airlines for new services in 2008 and 2009.

The deal also provides Seattle with new opportunities in its position as "one of the best gateways to the Pacific," said Peters, who joined Yang in signing the compact at Seattle-Tacoma International Airport.

"Our goal is to make flying from places like Seattle to China as easy as flying to New York or Boston today," Peters said. "By providing more and cheaper shipping choices to China, this agreement will make it easier for US companies to tap into China's enormous market."

It is estimated that the agreement will generate as much as US$5 billion in passenger and cargo revenues for the airline industry over the next six years, and as much as US$8 billion in new economic activity in the United States, Peters added.

The agreement was negotiated over the past year and was finalized during discussions in Washington, D.C. in May.