U.S. Dept. of State - IIP: The United States and China

Text: Trade Subcommittee Chairman Touts Benefits of China NTR Renewal
(Rep. Crane at House Ways and Means trade panel)

The man who led the fight in the House of Representatives in the 106th Congress to grant China Permanent Normal Trade Relations (PNTR) status sought to get the 107th Congress to reauthorize Normal Trade Relations (NTR) status for China "one last time."

Representative Philip Crane (Republican of Illinois), chairman of the House Ways and Means Subcommittee on Trade, opened the panel's July 10 hearing on the renewal of NTR status for China by stressing the benefits to the United States of China's entry into the World Trade Organization (WTO), and the need to grant China a renewal of NTR status "for the span of just a few months."

"It now appears that Congress need only re-authorize NTR status one last time -- for the span of just a few months -- before China becomes a full member of the WTO," Crane said in prepared remarks.

Citing the legislative struggle in the previous Congress to pass Permanent Normal Trade Relations (PNTR), Crane, an avid supporter of trade liberalization, urged the subcommittee to "keep the momentum moving forward toward our common goal of integrating China into the international system of rules and standards."

After 15 years of negotiations between the United States and China, he added, "we are almost there."

Crane linked U.S. national security interests in Asia with "ensuring that China begins this century on an economic reform path shaped and defined by the free-market trade rules of the WTO."

While conceding that U.S.-China relations "continue to be rocky and rancorous," the Illinois Republican argued against "slapping China" through revocation of NTR.

"Cutting off avenues of communication and trade will not help the Chinese people create the future that we wish for them," he said.

Opening Statement of Hon. Philip M. Crane
Member of Congress, Illinois
Chairman, Subcommittee on Trade
Hearing on Renewal of Normal Trade Relations with China

July 10, 2001

Good Afternoon. This hearing of the Ways and Means Trade Subcommittee is to evaluate overall U.S.-China trade relations and to consider the brief extension of normal trade relations (NTR) status to help expedite China's imminent accession to the World Trade Organization (WTO).

On October 10th last year, the President signed legislation terminating the application of the 1974 Jackson-Vanik statute, which requires the annual consideration of China's normal-trade-relations (NTR) status. By a vote of 273 to 197, the House voiced its unwavering support for the momentous economic and social reforms taking place in China, and committed to extend permanent normal trade relations (PNTR) status to China -upon its accession to the WTO.

That firm commitment demonstrated this Body's overwhelming support for bringing China into the rules-based trading system. Under this deal, our tariffs on Chinese imports will not change, while Chinese tariffs on our exports will be sharply reduced. China's accession agreement also requires it to undertake a wide range of market-opening reforms to key sectors of its economy still under state control. Therefore, unlike any other major trade agreement, these negotiations represent a set of one-sided concessions that will grant the United States unprecedented access to China's 1.2 billion consumers.

On June 11, the United States and China reached a breakthrough agreement on all of the remaining bilateral trade-liberalization issues, removing a key stubborn obstacle to China's full and prompt entry into the WTO. In response, China has indicated its intent to become a member of the WTO by the end of this year, so it can participate in the WTO ministerial meetings in Qatar and join the anticipated new global round of trade negotiations.

This breakthrough represents the culmination of 15 years of negotiations, and is exceptionally good news. It now appears that Congress need only re-authorize NTR status one last time - for the span of just a few months - before China becomes a full member of the WTO. In light of the historic policy decision made last fall we must keep the momentum moving forward toward our common goal of integrating China into the international system of rules and standards. It is my judgment that, after 15 years, we are almost there.

Of course, I will be the first to admit that relations with China continue to be rocky and rancorous. Yet, slapping China through revocation of NTR will not bring about the changes that we all seek in China. Cutting off avenues of communication and trade will not help the Chinese people create the future that we wish for them.

Nothing would be better for America's long term national security interests in China and the Asian region than ensuring that China begins this century on an economic reform path shaped and defined by the free-market trade rules of the WTO.

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