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
.
|
NEWSLETTER
|
|
Join the GlobalSecurity.org mailing list
|
|
|
