China, US at Loggerheads over WTO Entry Wording

China and the United States appeared at loggerheads Thursday in Geneva over a Beijing justifiable effort to put Taiwan as a customs territory of sovereign China into a key text on its eventual entry into the World Trade Organisation (WTO), according to Chinadaily.

During US President Bill Clinton's visit to China in June-July period 1998, he made clear in Shanghai that the United States admits only one China, Taiwan is an integral part of China, and Washingtion will not support Taiwan's bid to join the United Nations or any other international organizations in which sovereignty of a state is needed.

The draft, in wording which Geneva diplomats said was proposed by China, says that "on the basis of one-China, China will be a member of WTO as a sovereign state" while Hong Kong, Macao and Taiwan regions would be members with the subsidiary status.

Top Chinese negotiator and Vice Trade Minister Long Yongtu said the stance -- ensuring that independent-minded Taiwan would have to join the WTO as a customs territory of China -- was "a matter of principle for us".

However, US Trade ambassador Rita Hayes said Washington would oppose the move. "I think it is certainly clear that the United States will not accept this," she told reporters.

It was not immediately clear just how far the highly political issue would affect the final stage of China's 14-year negotiations to join the WTO.

Long told a news conference in Geneva the situation "should not be dramatised", saying China knew how to handle such sensitive problems in the WTO, and adding: "I am sure we can find a solution acceptable to members."

Hayes, speaking earlier, said the issue had not yet been discussed in the WTO working party which is drawing up a final report which will form part of the entry package setting out the terms and conditions of China's admission to WTO.

And she said China was clearly endeavouring to wrap up the remaining issues in the marathon talks. "We will work hard to get them in by the end of the year, and I think it's do-able," she declared, according to a Reuter report.

Also during Long's press conference, China had now formally pledged it would eliminate all export subsidies on agricultural produce on entering the WTO.

Some negotiators had said earlier China appeared to be trying to water down certain commitments, including dropping these subsidies, that it had accepted in bilateral WTO accords with the United States and the European Union.

In remarks to the working party on Thursday, Long firmly rejected these suggestions.

China, he said, "is a country that holds principle and keeps its word" and would "strictly abide by and earnestly implement all the commitments made in the bilateral agreements".

"Any report that China would backtrack from its bilateral commitments is totally groundless," Reuters quoted Long as saying.



People's Daily Online --- http://www.peopledaily.com.cn/english/