US and China Restart WTO Talks Amid Hopes of Deal Before Seattle Meetings

Strategic Insights -

President Bill Clinton has dispatched high-level US trade officials to Beijing to reinitiate formal negotiations on China's bid to join the World Trade Organisation, a move that has raised hopes of a possible agreement ahead of the Seattle WTO ministerial meetings later this month. The surprise move comes after several months of stalled talks, with the US turning down a wide-ranging trade offer by China in April and the Chinese side expressing little urgency to reach a deal. The US team, led by Charlene Barshefsky, US trade representative, and Gene Sperling, the President's top economic adviser, is expected to begin talks with Chinese officials tomorrow and is likely to last two days.

Key Takeaways:

  • The US and China have restarted WTO talks, with a high-level US team led by Charlene Barshefsky and Gene Sperling dispatched to Beijing to negotiate.
  • The talks, which are expected to begin tomorrow and last two days, aim to reach a deal on China's WTO bid before the Seattle WTO ministerial meetings later this month.
  • The US has made securing a deal on China's WTO bid one of President Bill Clinton's foreign policy priorities, with the President himself having telephoned Chinese President Jiang Zemin last month to urge him to resume talks.
  • The US has rejected China's previous trade offer, demanding further concessions in areas such as financial services, and the Chinese side has shown little urgency to reach a deal.
  • Administration officials believe that, provided an accord is based on sound commercial terms, a deal could be approved early next year.
  • The US team includes Robert Cassidy, the chief US trade negotiator with China, and Joe Lockhart, the White House spokesman, who has expressed caution about the prospects of a deal being reached.

Statistics:

  • China's bid to join the World Trade Organisation has been pending for multiple months.
  • The last round of talks in Washington ended a day early several weeks ago.
  • The US has turned down China's previous trade offer, demanding further concessions in areas such as financial services.
  • Administration officials believe that a deal could be approved early next year if an accord is based on sound commercial terms.

Sources:

  • "President Clinton yesterday sent Charlene Barshefsky, US trade representative, and Gene Sperling, his top economic adviser, to Beijing to restart formal negotiations over China's bid to join the World Trade Organisation"
  • "Joe Lockhart, White House spokesman, said it was still impossible to predict whether an accord would be reached ahead of the Seattle meetings but the US strongly thought it was in its interest to have China join the WTO"
  • "Lawrence Summers, treasury secretary, travelled to China for talks with Zhu Rhongji, the premier"
  • "The Asia-Pacific Economic Co-operation Forum in New Zealand last September"
  • "Nato accidentally bombed the Chinese embassy in Belgrade"