Text: Rep. Blumenauer Feb. 16 Testimony on China Trade Relations
(Democrat urges China World Trade Organization membership)

While admitting that Beijing's record on human rights and democracy "is frankly appalling," Representative Earl Blumenauer (Democrat of Oregon) nevertheless called for China's entry into the World Trade Organization (WTO).

Testifying before the House Ways and Means Committee February 16, Blumenauer told fellow lawmakers that "including China in the WTO can put the world's most populous nation on the right track."

The committee was holding a hearing on the bilateral agreement negotiated on China's accession to the WTO and on the issue of granting permanent Normal Trade Relations (NTR) status to China. Both the Senate and the House are working to schedule votes on NTR this year.

"This agreement advances U.S. economic interests with little or no risk to us," Blumenauer said. The Oregon Democrat suggested that "the best approach" to improving China's human rights record was through "the freer, more open trade promoted by this agreement."

Following is the text of Blumenauer's remarks, as prepared for delivery:

(begin text)

STATEMENT OF THE HONORABLE EARL BLUMENAUER
BEFORE THE COMMITTEE ON WAYS AND MEANS

FEBRUARY 16, 2000

Mr. Chairman and members of the Committee, I appreciate the opportunity to share some observations with you about the challenge of trade with China and its entry into the WTO. Trade is clearly a major component of our dynamic economy. China is a large piece of that equation now, and will be more significant in the future.

I will not dwell on the facts and figures, since the record is clear and the statistics staggering. Instead, I will make three points about the importance of trade with China to the economic future of the Pacific Northwest, which I represent, and to the economic future of America.

First, this agreement advances U.S. economic interests with little or no risk to us.

Second, the best approach to improving China's appalling record on human rights and democracy is through the freer, more open trade promoted by this agreement.

Third, and of special interest to me, is the potential for this agreement for improving the economy and promoting livable communities around the globe.

-- To the first point. If we are to enhance or even maintain our economic growth, we must be able to protect our markets and find areas of expansion. Our adoption of the trade agreement with China and its entry into the WTO offers tremendous upside benefits, expanding new markets by eliminating tariffs and structural barriers to United States commerce. The risks are minimal. Our markets are already open, so we give away very little. The products the Chinese offer are ones where there is already significant competition with other developing countries in Asia and Latin America. As I said, the upside potential for the US is huge; the risk is minimal.

-- The Chinese record on human rights and democracy is frankly appalling. I applaud my colleagues on all sides of the China issue for shining the spotlight on Chinese behavior, and I will continue to join with them to do so regardless of the fate of this legislation and the WTO agreement. We simply have no other choice than to be true to our convictions. But from the bottom of my heart, I believe that we will have more tools to hasten the advent of democracy in China by forcing them to play by international economic rules. The last quarter century has seen real progress in China. Despite continued abuses, we are seeing the power of human exchange: through the entry of missionaries, through the growing numbers of Chinese being educated abroad, and now, through the internet. All these trends will only be advanced by China's admission to the WTO and playing by international economic rules.

-- We simply cannot afford for China to follow the United States' pattern of development. Here, it has taken us decades to develop the technology, the will and the financial resources to clean up the environment. China's economic development has the potential to wreak untold economic and environmental havoc. Think of what would happen if China's 1.1 billion people used energy at our rate: we have 9 times their per capita energy use; 8 times the carbon emissions; 12 times the electricity use. Reaching those levels would be environmentally devastating, not only for China but for the world.

It doesn't have to be that way. Including China in the WTO can put the world's most populous nation on the right track: modernizing their markets and generating the wealth to pay for environmental protection, to say nothing of providing a market for US technologies and services for clean air and water and energy conservation.

Let me say in closing that the role US businesses can play in leading the way on environmental and workplace safety in China is too often overlooked. A small Oregon shoe company, Nike, has required its overseas contractors to meet OSHA clean air standards. Nike has even held seminars for its contractors and its competitors on the advantages of less toxic and cheaper water based solvents, which are not only better for the environment, but which build a better product.

We believe that the market can improve living conditions and change behavior here at home. We should offer the same choice for the Chinese.

(end text)

(Distributed by the Office of International Information Programs, U.S. Department of State. Web site: usinfo.state.gov)


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