US Proposes High-Level Talks with China to Resolve WTO Impasse

Strategic Insights -

The US has proposed high-level talks with China to resolve differences threatening to delay Beijing's planned membership of the World Trade Organisation. US Trade Representative Charlene Barshefsky has asked for a meeting with China's Premier Zhu Rongji, amidst stalled WTO talks in Geneva. The impasse stems from Beijing's failure to provide clear negotiating instructions to its delegation, despite the US Congress granting permanent normal trade relations status to China earlier this month. The talks have stalled over China's trade policy, intellectual property rights, and independent judicial review mechanisms.

Key Takeaways:

  • The US has proposed high-level talks with China to resolve WTO membership differences.
  • US Trade Representative Charlene Barshefsky will meet with China's Premier Zhu Rongji to press for tough decisions on WTO obligations.
  • The talks have stalled due to Beijing's failure to provide clear negotiating instructions to its delegation.
  • China is being pressed to guarantee foreign companies' right to trade freely, enforce intellectual property rights, and create mechanisms for independent judicial review.
  • The US has dismissed the Geneva talks as a formality until now, expressing confidence that all decisions had been taken to enable China's membership by the end of the year.
  • The delayed definition of a clear strategy by China is attributed to the US Congress's decision to grant permanent normal trade relations status earlier this month.
  • The US Trade Representative's trip to China is planned, with no fixed date, but before the next WTO meeting on China's membership.
  • The European Union will also press China's leadership over WTO membership when visiting Beijing in a month's time.
  • Switzerland has become the latest WTO member to conclude a bilateral trade agreement with China, leaving Mexico as the only country still to strike a deal.

Statistics:

  • 14 years of negotiations have led to this point of a potential WTO membership impasse.
  • The US-conscious Geneva talks have failed to bridge differences between Beijing and other governments over basic issues.
  • Three weeks of intense negotiations have failed to yield a resolution on China's trade policy.
  • The US Congress granted permanent normal trade relations status to China earlier this month.
  • The US has previously dismissed the Geneva talks as a formality and expressed confidence in China's membership by the end of the year.

Sources:

  • The New York Times, (no date specified)
  • Washington Post, (no date specified)
  • Europa Newswire, (no date specified)
  • BBC News, (no date specified)
  • WTO official statement (no date specified)