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14
March 2000
CHINA MOVES TOWARD ACCESSION DESPITE US MFN DEBATE
The Clinton Administration on 8 March submitted legislation to the US
Congress seeking permanent most favoured nation trade status (also
called permanent normal trade relations, or PNTR) for China. The US and
China concluded talks late last year on a bilateral WTO accession
package outlining the terms for market access and other areas as part
of China's bid to join the WTO. PNTR is a necessary next step by the US
in the accession process as it would put China on par with the US'
other WTO trading partners.
It is unclear how the PNTR bill will fare in the US Congress. The only
certainty is that the debate in the House and Senate will be heated. US
business groups, including the so-called Business Round Table and the
US Chamber of Commerce, are pushing hard for PNTR, while US labour and
environmental groups remain opposed to the deal. Business groups argue
that China offers an incredible opportunity for US exports of goods and
services. Labour advocates are opposed to China's PNTR status because,
these groups argue, China has a poor record on upholding labour rights.
Most environmental organisations oppose China's entry to the WTO due to
that country's unwillingness to link trade to the environment.
China has indicated that it will continue to seek entry to the WTO
whether or not the US Congress approves PNTR. Said China's Minister of
Foreign Trade and Economic Co-operation Shi Guangsheng: "Whether China
can join the WTO is completely up to a two thirds 'yes' vote by WTO
Member countries at the multilateral level and following the completion
of the bilateral agreements, while PNTR is an issue affecting the
implementation of Sino-US bilateral arrangements." Mr. Guangsheng
emphasised that PNTR for China was the basis for implementing the 1999
market opening agreement between the US and China.
On the EU-China front,
European Trade Commissioner Pascal Lamy will travel to Beijing in the week
of 27 March to continue talks aimed at concluding a bilateral EU-China
agreement opening the way for China's accession to the World Trade
Organisation (WTO). Lamy's decision to take a personal role in the process
for the first time since EU-China talks began in January is a sign that a
deal is likely close at hand. "We are going there in the hope that we will
be able to finalise a bilateral deal," Lamy spokesman Anthony Gooch said
on 10 March. EU- China accession negotiations stalled in late February, as
the EU was still seeking an improved package on telecommunications,
insurance and financial services (see BRIDGES Weekly Trade News Digest
Vol. 4, Number 8, 29 February 2000, http://www.ictsd.org/html/weekly/story3.29-02-00.htm
).
China inched closer to WTO accession after signing a market access deal
with Argentina on Saturday, 11 March, on China's entry into the WTO.
The deal follows hot on the heels of similar agreements with Thailand
(on 10 March) and Colombia (8 March). There are now only 9 Members
left -- including the EU -- for China to broker bilateral agreements
with to pave its way for entry into the 135-Member WTO.
"Trade legislation ready for Congress," SOUTH CHINA MORNING POST, 9
March 2000; "More calls to release China deal, Hollings seeks extended
debate," INSIDE US TRADE, 10 March 2000; "Call waiting," FAR EASTERN
ECONOMIC REVIEW, 9 March 2000; ""Clinton takes gamble on China trade
legislation," FINANCIAL TIMES, 9 March 2000; "Clinton set to unveil
China trade legislation," REUTERS, 7 March 2000; "China invites EU
trade commissioner to sign WTO deal," AGENCE FRANCE-PRESSE, 2 February
2000; Argentina signs agreement on China's WTO entry," JAPAN ECONOMIC
NEWSWIRE, 12 March 2000; China signs more WTO pacts, awaits EU envoy,"
REUTERS, 10 March 2000.
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