Clinton Administration's Delay in Announcing Carousel Retaliation Hampers Senate Vote on China Trade Bill

The Clinton administration's slow pace in announcing the products for carousel retaliation in the banana and beef disputes with Europe has raised questions and concerns among farm groups, potentially affecting the Senate vote on granting permanent normal trade relations to China. According to Chris Garza, the Farm Bureau's Washington deputy director, the delay in announcing the retaliation list could negatively impact the Senate vote, as it sends a mixed message about the administration's commitment to enforcing WTO rules.

Key Takeaways:

• The Clinton administration's delay in announcing the products for carousel retaliation in the banana and beef disputes with Europe could negatively affect the Senate vote on granting permanent normal trade relations to China.
• The Farm Bureau's Washington deputy director, Chris Garza, stated that the administration's slowness is "beginning to raise questions throughout the country."
• The administration's failure to act quickly on bringing the European Union into compliance with WTO rules is being closely watched by China, which is seeking to understand the administration's commitment to enforcing trade rules.
• The retaliation list has been held up because the administration wants to "maximize" the pain for targeted European states and "minimize" the impact on U.S. consumers and businesses.
• The farm groups assume the administration is not linking the beef and banana disputes to the Foreign Sales Corporation tax issue, and that each case would be treated independently.
• The administration has promised farm leaders that they would not let the FSC issue impact the administration's decision on the carousel list.

Statistics:

• The administration has not announced the carousel list within the 30-day timeframe promised to farm groups.
• The United States has not announced the carousel list due to concerns about offending European countries, which may need to be asked for an FSC extension.
• The Clinton administration has held up the decision on the carousel list to "maximize" pain for targeted European states.

Sources:

• (CongressDaily, Sep-6)
• Jerry Hagstrom