14 March 2000
Text: Commerce Secretary Daley Remarks on China Trade Status
(Urges China Permanent Normal Trade Relations status) (1490) President Clinton's self-described "point man" for getting Congressional approval of permanent Normal Trading Relations (NTR) status for China says it will be the toughest vote the U.S. Congress has faced in many years. Commerce Secretary William Daley made that characterization March 13 to the U.S. Wheat Associates in a speech in Washington, D.C. The vote to grant China permanent NTR status that will take place later this spring in the Senate and the House of Representatives. "It will be one of the biggest, and toughest votes Congress has taken in many years," Daley predicted. "It's about deciding whether we want a new, more open world economy, by bringing China into the world community. Or whether we want the old world of closed markets and closed societies," Daley said. The Clinton Administration, Daley said, is "very hopeful that Congress will move quickly on the legislation, beginning with the Senate Finance Committee. "We would expect a final vote before the end of May, when Congress recesses for Memorial Day (May 29th)," Daley told his audience. "Frankly, we probably don't have the votes yet in the House (of Representatives)," he said. But, Daley added, "at the end of the day, I think we're going to win." Americans, Daley noted, "are split on the China trade deal, and some are uncertain. Recent polls show they favor it 48 percent to 36 percent. "I wish we had a majority, but in my opinion, we're close, and gaining ground," he said. "Secretary (of Agriculture Dan) Glickman and I will each escort congressional delegations on separate trips to China next month," Daley said. "We hope to show skeptical lawmakers that China is truly attempting to change and reform," he told his audience of wheat dealers and growers. "And that the best way to keep them on track is to encourage the Chinese people to use the Internet, and try American wheat." Following is the official text of Daley's remarks, as prepared for delivery: (begin text) Remarks by Secretary of Commerce William M. Daley U.S. Wheat Associates March 13, 2000 Washington, DC As you know, I'm President Clinton's point man, along with Steve Ricchetti, on winning normal trade relations for China. It will be one of the biggest, and toughest votes Congress has taken in many years. And how it turns out, in my opinion, will have a very significant impact on the future of our economy, and for that matter, the global economy as a whole. China is a very challenging nation in a host of areas: trade, foreign policy, the environment, and human rights, to name a few. Until recently, it was a country closed to the outside world. And it has not treated its people the way that other major nations do. So, this vote is about a lot more than trade. It's about deciding whether we want a new, more open world economy, by bringing China into the world community. Or whether we want the old world of closed markets and closed societies. So, let me up-date you on where we are ... talk about how you can help ... and then take your questions. As you know, President Clinton sent the legislation to Congress last week. It would make permanent what has already been in effect for 20 years, normal trade ties with China. And it removes a key stumbling block. It says the terms of the trade deal we negotiated with China won't change, unless Europe and others working on deals get better terms than we did. In my opinion, it would be great if we could raise equity stakes in joint ventures to 51 percent, or more, than the 50 percent we negotiated. The question is, would we get the benefits of the trade deal if China joins the WTO, and we don't have permanent normal trade relations. The odds are that we would not, but our competitors in Europe and Japan would. We would be left standing on the outside. We are very hopeful that Congress will move quickly on the legislation, beginning with the Senate Finance Committee. We would expect a final vote before the end of May, when Congress recesses for Memorial Day. Frankly, we probably don't have the votes yet in the House -- because we're only in the first quarter of the game. But at the end of the day, I think we're going to win. No doubt about it, this will be a tough vote. Americans are split on the China trade deal, and some are uncertain. Recent polls show they favor it 48 percent to 36 percent. I wish we had a majority, but in my opinion, we're close, and gaining ground. Secretary Glickman and I will each escort congressional delegations on separate trips to China next month. We hope to show skeptical lawmakers that China is truly attempting to change and reform. And that the best way to keep them on track is to encourage the Chinese people to use the Internet, and try American wheat. It's absolutely critical that we move quickly on this legislation. To be frank, it gets tougher with each passing day, as we get closer to the November elections and the campaign heats up. We are fortunate because the major candidates -- Vice President Gore and Governor Bush -- both strongly support us. The likely third candidate who will probably run on the reform party ticket, isn't for it. But 2 out of 3 isn't bad! Obviously, this is an incredible deal our negotiators hammered out last fall. It reflects the tremendous transformation going on in China today. They have made many concessions, because they want to open up and take full advantage of the global economy by joining the WTO. For America, it's really a one way deal. All we have to do is grant PNTR to China. The deal smoothes the way for China to join the WTO because all the major trading nations must first work out any problems they might have. Our deal opens many markets, from insurance to telecommunications to agriculture. As you know, China's commitments on agriculture are very strong. Many producers would for the first time be allowed to enter the market in a major way. I know as wheat producers you can't wait to start shipping. Obviously, we welcome China's recent $6 million wheat purchase. It's a good first step, and shows their willingness to allow more agriculture imports. But as we begin the legislative fight in earnest, I believe we need to think more about the big picture. Absolutely, the economics of this deal are very good for America. But it goes far beyond that. China is our most important relationship on all levels, strategic and economic. And, in my opinion, that will be the case for many years to come. China is a rising world power not to be ignored. And in today's new economy, in today's global economy, we cannot neglect our role as a world leader. Clearly we cannot go back to the old politics of trade that threw up high tariff barriers as the way to deal with global competition. It's a different world out there. What kind of message would we be sending to the rest of the world if we fail to normalize our trade relations with China? I think it would be a very negative message, that America no longer wants to lead, that we fear a country that has an economy just one-tenth the size of ours. As President Clinton said, we don't know what choices China will make about its economy or its political institutions. No one knows. But we have to be able to stand there and say, we took the steps to encourage them to go the right way. But we cannot do it alone. The agriculture community has done a great job so far. But we need you now more than ever. To be honest, in my 3 years as secretary, I have not seen the intensity by industry for trade that we will need to win this fight in Congress. The opposition is very well organized, and is pumped after Seattle. We need more companies like Farmland Industries which prints messages about trade on their pay stubs, so employees know how vital trade is to their jobs. We need to see more of this. We should try any way we can to talk with normal people, outside of Washington. And to be credible, we need to talk about the negatives of trade, not just the positives. And we need to make this a broader discussion of America's role in the world, beyond economics. And how we view ourselves. Thank you very much. (end text) (Distributed by the Office of International Information Programs, U.S. Department of State. Web site: usinfo.state.gov)
|
NEWSLETTER
|
| Join the GlobalSecurity.org mailing list |
|
|
|
