DATE=11/15/1999 TYPE=CORRESPONDENT REPORT TITLE=CHINA TRADE (L-O) NUMBER=2-256185 BYLINE=STEPHANIE MANN DATELINE= CONTENT= VOICED AT: INTRO: The new trade agreement between the United States and China helps pave the way for China to join the World Trade Organization. But China's membership still requires action by Congress. Correspondent Stephanie Mann reports American business executives are expected to put heavy pressure on legislators to take that action. TEXT: American corporations see the new trade accord as expanding opportunities for U-S exports of goods and services to China. Under the agreement, Chinese tariffs on imported goods will be reduced to an average of 17-percent and tariffs on agricultural products will come down to 15-percent. Asia specialist Douglas Paal says the parts of the agreement most important to increasing trade are related to agricultural products and distribution of goods. Mr. Paal is president of Asia Pacific Policy Center, a non-partisan Washington research organization. He says the issues of textile trade and telecommunications have been more controversial and attracted more attention in the media. // PAAL ACT ONE // On telecommunications, I think the administration had unrealistic ambitions to get more than 51-percent ownership. Sure, people would like that, but it is a very rich market. It is a very profitable market, and hard to imagine that the Chinese telecomm monopolies would want to cede whole ownership, majority ownership to foreign vendors. // END ACT // Currently, international telephone companies are restricted to sales of equipment in China. Under the new agreement, foreign companies will be able to own up to 50-percent in the Chinese telecomm market, by the year 2001. // OPT // The accord also will allow U-S banks to provide services in China in the local currency. It dramatically reduces the tariffs on Chinese imports of automobiles. It also increases the number of American films China may import each year. // END OPT // In order to join the World Trade Organization, China must have favorable trade terms with all other member countries. The new trade agreement moves China and the United States in that direction. But the last U-S step requires Congress to pass legislation granting China permanent -- Normal Trade Relations -- formerly called -- Most Favored Nation status. Mr. Paal predicts that legislation will face a difficult fight in Congress. But he says previous votes for annual renewal of favorable trade terms have succeeded despite intense opposition. // PAAL ACT TWO // This time, the stakes are not just where trade is today, but a big expansion of trade by the United States -- a big expansion of exports and services by the United States to China. And so, I think it is really going to motivate the business community to lobby the Congress to a positive vote. // END ACT // Douglas Paal says American business is going to press Congress to pass normal trade relations for China early next year. With the new U-S/China trade deal, Mr. Paal says the biggest obstacle to Chinese membership in the W-T-O has been overcome. (SIGNED) NEB/SMN/RAE 15-Nov-1999 12:34 PM EDT (15-Nov-1999 1734 UTC) NNNN Source: Voice of America .
