The trade agreement signed by the U.S. and China last November on China's accession to the World Trade Organization (WTO) will provide substantial new opportunities for U.S. exports to China and help boost the country's economy, according to a congressional study released Tuesday.

The vote on the deal, which sets a stage for China to enter the WTO, may be the most important casts in Congress this year to maintain the U.S. economic prosperity and leadership in the world,

House Representative David Dreier said.

The report was released by Republican congressional leaders as part of their efforts to rally support for the deal legislation.

"China is one of the world's fastest growing economies, and rapid economic growth is likely to continue in the near future, provided that economic reforms are continued," said the study by

the Congressional Research Services (CRS).

By the year 2005, China will have more than 230 million middle-income consumers and the value of retail sales will exceed 900 billion U.S. dollars and the country will be the world's largest

market for consumer goods and services and a major market for luxury goods, the report said.

The agreement was signed last November in Beijing after years of negotiations. It needs to be approved by Congress and will be effective after China joins the WTO.

The deal has so far gained strong support in Congress and experts predicted that it will be passed. If the deal is ratified,Congress shall end the annual review of China's trade status and

normal trade relations between the two countries will be permanent.

Total trade between the two countries increased from 4.9 billion U.S. dollars in 1980 to an estimated 95 billion U.S. dollars in 1999, making China the fourth largest U.S. trading

partner, according to the CRS.

The CRS said that the trade agreement between the two will offer big opportunities for U.S. farmers and manufacturers.

The study quoted U.S. Agriculture Secretary Dan Glickman as estimating that China's accession to the WTO would increase U.S. agricultural exports by 2 billion U.S. dollars annually.

"China's offers on market access would provide across-the-board benefits for most U.S. exporters of industrial or manufactured products," the CRS said.

Assuming that the U.S. can maintain its current share of China's import market, 12.1 percent, China's trade liberalization might increase its imports from the U.S. annually by about 12.8 billion U.S. dollars from tariff cuts, reduction of non-tariff barriers and increased U.S. investment in China.

It quoted Goldman Sachs, a leading U.S. banking company, as saying that China's WTO membership will make the country "a far more open economy," significantly boosting its economic growth,

foreign investment and trade.

Trade liberalization and greater openness are expected to boost China's GDP growth by an additional 0.5 percent per year. The country's total trade and foreign direct investment flows would nearly double by 2005. (Xinhua)