China Confirms Commitment to WTO Membership

After over five hours of discussions with Prime Minister Zhu Rongji, American trade negotiator Charlene Barshefsky assured reporters that China remains committed to its market-opening pledges to join the World Trade Organization. Despite concerns that China might be reassessing its bid, Ms. Barshefsky stated that the focus has shifted from whether China will join to when it will join. The negotiations are ongoing in Geneva, with American and European officials hoping to finalize the terms of China's membership by the end of the year.

Key Takeaways:

• China has assured the United States that it will not back away from the market-opening commitments made to gain entry into the WTO, with Prime Minister Zhu Rongji providing "absolutely emphatic" assurances to American trade negotiator Charlene Barshefsky.
• The main issues in the final stages of negotiations are the complexity and variety of issues on the table, including agricultural quotas and product standards, as well as China's need to deal with an oversight group of 40 countries.
• China's membership in the WTO is contingent on completing complex final negotiations in Geneva, which must set the detailed conditions of membership, including timelines for reducing tariffs and opening up industries like banking and telecommunications.
• American and European officials still believe it may be possible for China to achieve membership by the end of the year, but only if it hastens to complete the final negotiations.
• The talks have become mired over "dry, not sexy issues" like agricultural quotas and product standards, which differ for imported and domestic goods.
• China has agreed to cut tariffs significantly on agricultural and industrial products and to open major industries to foreign investment.

Statistics:

• Over 5 hours of discussions took place between Prime Minister Zhu Rongji and American trade negotiator Charlene Barshefsky to address concerns about China's commitment to WTO membership.
• 200+ trade and investment issues are being negotiated as part of China's agreement to join the WTO.
• 40 countries are involved in the oversight process for China's membership in the WTO.
• Tariffs on agricultural and industrial products are expected to be significantly reduced as part of China's agreement to join the WTO.
• Chinese leaders have repeatedly stated their firm desire to join the WTO, despite concerns about the potential impact on unemployment and social stability.

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