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China

Enacting Permanent Normal Trade Relations with China: Advancing U.S. Economic Interests and Reform in China

Strategic Insights

— 2 min read

Last November, after years of negotiation, the United States and the People's Republic of China completed a bilateral agreement on accession to the World Trade Organization (WTO). The Agreement represents a significant step forward for American businesses, farmers, and working people, while also promoting fair trade and strengthening U.S. guarantees. However, to fully benefit from this agreement, the United States Congress must enact permanent Normal Trade Relations (NTR) with China.

Key Takeaways:

  • The U.S.-China WTO Accession Agreement will dramatically cut import barriers on American products and services, creating export opportunities for U.S. businesses, farmers, and working people.
  • The Agreement is enforceable and locks in and expands access to virtually all sectors of China's economy, meeting high U.S. standards in all areas.
  • The United States preserves its right to withdraw market access for China in the event of a national security emergency and makes no changes in laws controlling the export of sensitive technology.
  • If the Congress fails to pass permanent NTR for China, competitors from Asia, Latin America, Canada, and Europe would reap the benefits of the agreement, while American farmers and workers might be left behind.
  • The U.S. government is committed to vigorous monitoring and enforcement of China's commitments, utilizing the WTO's review mechanisms and strengthening U.S. monitoring and enforcement capabilities.
  • The agreement supports the rule of law in China, strengthens the role of market forces, and increases contact between China's citizens and the outside world.

Statistics:

  • The U.S.-China WTO Accession Agreement will reduce import barriers, creating new export opportunities for U.S. businesses, farmers, and working people.
  • The agreement will lock in and expand access to virtually all sectors of China's economy, a significant step forward for American trade and economic interests.
  • The enrolled legislation specifies that the President's determination becomes effective only when China becomes a member of the WTO, after a certification that the terms and conditions of China's accession are at least equivalent to those agreed to between the U.S. and China in the November 1999 agreement.
  • The legislation authorizing the President to terminate the application of Title IV of the Trade Act of 1974 to the People's Republic of China and extend permanent NTR treatment to products from China requires the President to determine that the terms and conditions of China's accession to the WTO meet minimum standards.

Sources:

  • WTO (no specific date or reference cited in the text)
  • The White House. (2000, March 8). Letter from President William Clinton to the Congress.

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