Text: Commerce Secretary Daley March 9 on China Trade Status Vote
(Urges quick action on permanent Normal Trade Relations vote)One day after President Clinton sent Congress his proposed legislation for permanent Normal Trade Relations (NTR) status for China, his Secretary of Commerce said it is "absolutely critical" the vote come quickly.
Secretary of Commerce William Daley told a Washington, D.C. audience March 9 he expects a vote on granting permanent NTR to China before Memorial Day (May 29).
"We are very hopeful that Congress will move quickly on the legislation, beginning with the Senate Finance Committee. We would expect a final vote before the end of May, when Congress recesses for Memorial Day," Daley said to members of the American Council of Life Insurance.
Insurance is one of the financial services that would gain greater access to the China market under the accord negotiated by the United States with China regarding that country's accession to the World Trade Organization (WTO).
"It is absolutely critical that we move quickly. To be frank, it gets tougher with each passing day, as we get closer to the November elections and the campaign heats up," Daley said.
"Clearly it is in everybody's interest to move this bill through the Congress, and to do so as quickly as possible," he said.
To reap the benefits of the market openings China agreed to for its WTO accession, the United States must grant permanent NTR status to China, the same trade status it gives its other WTO trading partners.
Failure to grant permanent NTR status would result in other countries enjoying the market openings the United States negotiated while the United States itself would be denied those market-opening benefits.
Both the Senate and House of Representatives must vote to approve permanent NTR status for China. The legislative bodies would be voting to terminate the application of Title IV of the Trade Act of 1974 to China.
Daley thanked the insurance industry officials for their endorsement of the trade deal negotiated with China, and said he looked forward "to working with you on winning congressional approval this spring."
Following is the text of Daley's remarks, as prepared for delivery:
(begin text)
COMMERCE SECRETARY WILLIAM M. DALEY
TO THE AMERICAN COUNCIL OF LIFE INSURANCE
WASHINGTON, D.C.
MARCH 9, 2000(Text as prepared for delivery)
As the longest serving Secretary of Commerce this century, I have the responsibility to help President Clinton win normal trade relations for China, and probably one of the biggest votes of the decade.
Today, I want to up-date you on the China vote, and briefly talk about two other issues I know are on your agenda; opening the insurance market in India, and e-signatures over the Internet. And then leave plenty of time for questions.
First, China. As you know, President Clinton sent the legislation to Congress yesterday. It would make permanent what has already been in effect for 20 years, normal trade ties with China.
We are very hopeful that Congress will move quickly on the legislation, beginning with the Senate Finance Committee. We would expect a final vote before the end of May, when Congress recesses for Memorial Day.
It is absolutely critical that we move quickly. To be frank, it gets tougher with each passing day, as we get closer to the November elections and the campaign heats up. And this is true for Democrats and for Republicans. Obviously, there are Democratic supporters who aren't happy with the China deal because they fear it would undercut manufacturing jobs. But, in my opinion, Pat Buchanan won't be shy about bashing Republicans or Democrats, for supporting open trade and the China deal, in particular.
So clearly it is in everybody's interest to move this bill through the Congress, and to do so as quickly as possible. All of you are aware of the benefits of the China trade deal our negotiators hammered out last fall. It smoothes the way for China to join the WT0. It opens many markets, from agriculture to telecommunications to insurance.
China's commitments on insurance are very strong. The bottom line is, you will be able to sell what you want, where you want, and partner with who you want. It doesn't get much better than that.
But as we begin the legislative fight in earnest, I believe we need to think more about the big picture. Absolutely, the economics of this deal are very good for America. But it goes far beyond that.
China is our most important relationship on all levels, strategic and economic. And, in my opinion, that will be the case for many years to come. China is a rising world power not to be ignored. And in today, new economy, in today's global economy, we cannot neglect our role as a world leader.
Clearly we cannot go back to the old politics of trade that threw up high tariff barriers as the way to deal with competition from international commerce. It's a different world out there.
What kind of message would we be sending to the rest of the world if we fail to normalize our trade relations with China?
I think it would be a very negative message, that America no longer wants to lead, that we fear a country that has an economy just one-tenth the size of ours.
At the end of the day, as President Clinton says, we don't know what choices China will make about its economy or its political institutions. But it is our responsibility to give China the chance to make the right choices, to reform its economy and to grant more democratic rights to its people.
That is why the President is investing so much time on this, any why we absolutely must win this fight, as I believe we will.
Now, let me turn to India's insurance market. I will be with President Clinton when he visits India later this month.
Obviously, we are delighted that India has decided to open its insurance industry to private competition after years of state control. The new legislation is an excellent first step, although we would like to see the cap on foreign equity stakes raised down the road.
Clearly, India's consumers will benefit from the increased choice that competition brings. The market has a lot of potential as India is one of the least insured in the world. I know a number of American companies are planning to enter the market through joint ventures as soon as regulations are issued.
We have offered technical assistance in helping India develop its regulatory framework. And we look forward to working with them to expand this vital industry.
Finally, let me mention the Internet and e-signatures.
I know this is a top priority for you, as it is for many industries that are moving their businesses to the Internet.
Obviously, you can't do business with customers over the Internet without legally binding e-signatures on electronic contracts. We support federal legislation to eliminate any uncertainty about the enforceability of these e-agreements.
We believe also it is important to up-date laws that require companies to give paper notices to consumers, in connection with certain private transactions, such as the purchase of a house or insurance. Everyone benefits when transactions can be moved online -- consumers get greater choice and lower prices, and businesses get more efficient.
But we have some concerns about the House bill. Some targeted changes are needed to make sure that vulnerable consumers, such as the elderly, are protected. So, we are working with Congress to resolve these issues, and I am confident we'll be able to do that.
Again, I want to thank you for your support on the China deal. And I look forward to working with you on winning congressional approval this spring.
(end text)
(Distributed by the Office of International Information Programs, U.S. Department of State. Web site: usinfo.state.gov)
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