17 May 2000
Text: Commerce Secretary Daley Remarks on China Trade Status Vote
(Proposed watchdog commission key to winning PNTR passage) (1340) U.S. Commerce Secretary William Daley told the Economic Strategy Institute in Washington, DC, May 17 that while he is optimistic Congress will vote to grant Permanent Normal Trade Relations (PNTR) status to China, organized labor's powerful lobbying campaign against the bill means "this will be the toughest vote the President has faced since his economic plan in '93 won by one vote." Daley said supporters of the bill do not yet have the 218 votes necessary to succeed, but neither did opponents of the bill have enough votes to defeat it. "In my opinion, what will shift the balance to our side is the proposal for a watchdog commission by Representatives Levin and Bereuter," Daley said. "Without it, chances are slim to none this could pass," he continued. "Members [of Congress] are not questioning the economics of the deal, but they are concerned with the human rights, and labor issues, and rule of law," Daley pointed out. "This commission will take care of the substantive concerns people have ... and [the commission proposal] broadens the base of support for the vote," he said. Following is the text: (begin text) REMARKS BY COMMERCE SECRETARY WILLIAM M. DALEY THE CHINA VOTE: WHAT MESSAGE WILL AMERICA SEND TO THE REST OF THE WORLD? ECONOMIC STRATEGY INSTITUTE WASHINGTON, D.C. MAY 17, 2000 [Text As Prepared for Delivery.] Since for a few days running everybody has told you everything there is to say about China, I will give a short speech today, and cut right to the chase. We do not have the 218 votes yet to win it -- and the opposition does not have them to defeat us. No question it will come down to the wire. We will not know for sure until Speaker Hastert bangs the gavel -- and the last member, casts the last vote, for the last time. This will be the toughest vote the President has faced since his economic plan in '93 won by one vote. The worst mistake we could make is to underestimate the opposition. Organized labor is serious about this, and they are running an incredibly good campaign. They have applied pressure where it is most effective -- not in Washington, but in the districts, where the normal people live. Their efforts have had an enormous impact on members. In my home state of Illinois, there are 10 House Democrats, and probably everyone will vote against this, because many of their constituents fear change and fear globalization. In the end, I am optimistic we will pull it out. Both Senate Finance and House Ways and Means take the measure up today. Obviously it was extremely helpful to have Rep. Rangel's endorsement yesterday. He's very good at building a following, he's the Regis Philbin of Ways and Means. So I think we will see momentum pick up now. In my opinion, what will shift the balance to our side is the proposal for a watchdog commission by Reps. Levin and Bereuter. Without it, chances are slim to none this could pass. Members are not questioning the economics of the deal, but they are concerned with the human rights, and labor issues, and rule of law. This commission will take care of the substantive concerns people have. And from a political view, it broadens the base of support for the vote. We elect members to make choices. For selfish reasons it would be easier for them to say no. Or to say let's wait until after the election. I am not an alarmist. I will not tell members voting no could bring the United States to its knees, but if this thing fails, there are consequences. We'll watch Japan and Europe take advantage of the economic opportunities of opening a market of more than a billion consumers. This is a market that next year will be the second largest in the world for personal computers. This is a market that adds the equivalent of a new Baby Bell every year. Right now, every man, woman, and child in China eats just a dollar's worth of American farm products -- a year. The cantaloupe at breakfast is more than the average Chinese eats a year from the world's greatest farmers. And if Congress votes this down, it will be the European and Asian farmers, who benefit when the market opens -- not our farmers. A vote against this we will not address the legitimate concerns people have about the dark sides of China that no one likes. Some people say China is a growing threat to Taiwan, but one of the biggest supporters of China's entry into the WTO is Taiwan. Some say China is a drag on environmental issues, and if we put China in the WTO, they will block further progress. Like many of you, I was in Seattle. I can tell you, first hand, environmental issues -- like labor issues -- are already a hard sell. And that won't change substantially if China is there. If Congress votes this down, they would be going against many of the groups involved in missionary work in China, who are in favor of this. They would be going against many of the people who paid the greatest price under Chinese repression -- those who helped lead the demonstrations at Tiananmen Square. A vote against this would leave China with less access to information. It would leave it with less contact with the democratic world. Ironically, it would do it as the cyberworld has brought great change to our society, and could do the same for China. The leaders of China are smart people. They know if our high-tech industry goes in and wires China, and everybody is connected to the Internet, that change will come more rapidly in ways they cannot control. For America to turn this down, especially after Seattle, it would send the world a very negative message. Here we have a country of more than a billion people that wants to enter a rules based organization -- rules that we created -- and we're thinking of turning them away? As the President says, this is not a trade agreement as much as it is a membership agreement -- and why would we be the only country not to treat them like a regular member? Here we are, an economy 10 times larger than China's; here we are, with exports to the world four times greater than China -- and we're thinking about turning China down? We're afraid to make permanent trade status that we have granted every year for almost two decades? If this fails, it would send the wrong signal to the world -- that America no longer wants to lead. Every president, every living secretary of state, every living commerce secretary -- no matter what party -- is for this. Almost all of the 50 governors support it. I know deep down, many members want to vote yes. But they are torn, because their constituents have concerns about trade and globalization. From now until the vote, the President, the Vice President, my colleagues in the Cabinet will all be actively -- actively -- engaged. The President maybe more engaged on this issue than I have ever seen on any issue, and that is saying something. But we still have work to do, and you're living in a fairy tale if you think otherwise. I hope your voices are heard. I hope your intensity level in the remaining days doubles and triples, because I know labor will be applying intense pressure. In the end, we are the biggest trading nation on earth. Our economy is the strongest, and our goal, and the reason to pass this, is to keep our nation strong. Thank you very much. (end text) (Distributed by the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)
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