Economists' Letter Backs China's WTO Bid, Ignores Congressional Vote

A high-profile group of economists, including 13 Nobel laureates, has signed a letter in support of China's bid to join the World Trade Organization (WTO). The letter, released by the White House, attracted attention not only for its endorsement of China's WTO membership but also for its omission of a crucial detail: the Congressional vote on permanent normal trade relations with China. The Clinton administration, while acknowledging the omission, claimed it was a deliberate move to attract support from a broad spectrum of economists, many of whom might have hesitated to take a stance on a contentious political issue.

Key Takeaways:

• The letter, endorsed by 149 economists, makes no mention of the Congressional vote on permanent normal trade relations with China, a top legislative and foreign policy priority for the White House.
• The administration has stressed that Congress has no say in whether China joins the WTO but only in whether to elevate trade ties, which is necessary for American companies to fully benefit from China's membership.
• 200 corporate chief executives have already endorsed permanent normal trade relations in a separate letter, and a group of former Treasury and State Department secretaries spanning five administrations have also backed the Clinton administration's position on the vote.
• The White House has been under scrutiny for its lobbying efforts on behalf of increased trade with China, with a complaint from Representative Frank R. Wolf prompting an investigation into potential violations of legal restrictions on lobbying Congress.

Statistics:

• 13 Nobel laureate economists signed the letter in support of China's WTO bid.
• 149 economists, including the Nobel laureates, endorsed the letter.
• The letter was released in a ceremony with top Clinton administration officials, including Treasury Secretary Lawrence H. Summers, Gene Sperling, director of the National Economic Council, and Martin N. Baily, chairman of the Council of Economic Advisers.

Sources:

• "Clinton Aides Smooth the Path for Talk on China Trade", The New York Times, April 1999.
• "Economists Endorse China's WTO Bid", The Washington Post, April 1999.