Resolution Introduced Opposing Normal China trade, but It's Doomed

The US House of Representatives is headed for another contentious vote on China's trade status, despite passage in May of permanent normal trade relations (PNTR).

One of China's most outspoken congressional critics, California Republican Representative Dana Rohrabacher, has introduced a resolution that could deny trade privileges to Beijing until it becomes a full-fledged member of WTO.

However, there is little chance the resolution will pass, congressional aides said.

"We'll work to defeat it," said Representative Bill Archer, the Texas Republican who chairs the House Ways and Means Committee.

The White House was also unfazed. "This is a decision for Congress to make. Our focus is on enacting permanent normal trade relations as soon as possible and we'll continue to work with both houses to that end," said White House spokesman Jake Siewert.

The House approved permanent normal trade relations with China by a bigger-than-expected margin on May 24. Senate passage is virtually assured in July, ending the annual ritual of reviewing Beijing's trade status and guaranteeing Chinese goods the same low-tariff access to US markets as products from nearly every other nation.

But under the legislation approved by the House, PNTR would only take effect once Beijing becomes a member of the Geneva-based WTO. China's accession is not expected until later this year.

To ensure China access to the US market in the run-up to its WTO accession, President Bill Clinton on June 2 asked Congress to temporarily extend the benefits.

"This is a stopgap measure until PNTR is enacted," an administration official explained.

Given the House's 237-197 vote in favour of PNTR, Clinton administration officials argued there was no need for a vote on the temporary extension. The leading opponent of PNTR, Michigan Democratic Representative David Bonior, agreed that no vote was needed. "It's a formality," Bonior's spokesman said.

But Rohrabacher objected, and as permitted under US law, has insisted on a vote on his resolution in the Ways and Means Committee and then the full House floor.

Once PNTR is approved by the Senate and China joins the WTO, Clinton will no longer need to seek annual extensions of normal trade relations because China would receive the benefit on a permanent basis.



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