US Grants Permanent Normal Trade Status to China

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Last updated at: (Beijing Time) Friday, December 28, 2001

US Grants Permanent Normal Trade Status to China

U.S. President Bush on Thursday granted permanent normal trade status to China, calling it "a final step in normalizing U.S.-China trade relations." The new trade status will take effect January 1, next year, Bush said in an announcement released in Crawford, Texas, where he is vacationing.

China became the member of the World Trade Organization (WTO) last month, an event that was warmly welcomed by the world community.

"This is the final step in normalizing U.S.-China trade relations and welcoming China into a global, rules-based trading system," Bush said in an announcement.

Trade experts here believed that China's entry into the world trade body is "to be globally important underpinning for the U.S.-China bilateral relationship".

Last year US Congress granted permanent trade status to China, but that was contingent on China's entry into the WTO.

As part of China's membership in the WTO, former President Bill Clinton pushed for, the US Congress last year approved, legislation granting China permanent normal trade status with the United States, ending the annual reviews of China's tariff privileges.

Since that new status could not go into effect until China becomes a WTO member, the Bush administration was forced to request another extension of China's annual trade privileges.

China and the United States have reached an agreement, as part of China's WTO entry, under which China will lower tariffs on U.S. goods and open up its service sector to American companies.

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Permanent Normal Trade Relations (PNTR)

Permanent NTR (PNTR) describes the unconditional Normal Trade Relations tariff status that members of the World Trade Organization (WTO) accord each other as part of their mutual commitments as WTO members. Frequently called Most Favored Nation tariff status in international law, PNTR refers to the standard or "general" tariff treatment the United States extends to other countries in return for mutually favorable tariff treatment for US exports.

PNTR is neither a special privilege, nor a reward, nor the most favored tariff treatment the United States provides to its trading partners. Over 130 member countries of the WTO enjoy PNTR tariff status with the United States, and provide the same treatment to US exports.

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