After 13 years of off-and-on negotiations, China and the US
finally reached an agreement to bring China into the World Trade
Organization (WTO). China's entry required its
leaders to agree to market opening and reform measures that, if
implemented, would further tear down government control of its economy.
One highlight of particular interest to wire producers: US companies
will have the right to sell, distribute and market industrial goods, including
steel, without having to go through a Chinese middleman, as is now necessary.
The benefits of improved economic relations between the world's most populous
nation and its most powerful one would be enormous for US firms.
Before China can officially become a WTO member, the US Congress
must approve permanent Normal Trade Relations (NTR) with China. House
Ways and Means Trade Subcommittee Chairman Phil Crane (R-IL) predicted that
the measure will pass. Additionally, many key aides and members on Capitol Hill
say the odds are excellent that the House will approve permanent NTR status
for China early next year.
However, there is increasing, and more organized, opposition
mounting, leading to others predicting a closer
fight in the House. Even Bob Matsui (D-CA), the point man for the White House
on this issue, stated, "Even if most Republicans back the business-supported
effort to open the Chinese market to American goods and services, it will be
tough to produce enough Democratic votes to pass the measure." Other
Congressional trade leaders acknowledged that a more negative image of the WTO following the Seattle meeting could make it harder to pass the measure.
Adding another hurdle into the process, House Ways and Means
Chairman Bill Archer (R-TX) suggested that the NTR vote should come only after the WTO accession package is completed. He added, "It would be
presumptuous to have the vote before the various
bilateral agreements between China and other WTO members and details of the
US-China accord are wrapped up." At least 24 of the WTO's 135 members,
notably the European Union, have yet to agree on entry terms with China. The
WTO also has to assess whether China complies with its rules in areas such as
intellectual property, and China will need to amend its laws where necessary.
Leading the fight against the bill are the unions, including the United
Steelworkers of America. Saying that American jobs are at stake, labor leaders
have already launched an all-out attack on the agreement. Labor will be joined by
environmentalists, human rights groups and consumer advocates in the fight.
As a result, the White House has declared this vote one of its highest
priorities for next year. President Clinton, who predicted that NTR would pass
the Congress, has declared himself completely committed to getting it
done. Administration officials have begun fanning out across the country to
convince grassroots America that freer trade is an opportunity, not a threat.
Commerce Secretary William Daley has also been urging the business community to get
active in its campaign to convince Congress to pass the bill.
The US Chamber of Commerce and the National Association of
Manufacturers are committed to the free-trade
awareness campaign and support for permanent NTR status for China.
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