TEXT: DALEY 12/16 REMARKS ON U.S.-CHINA TRADE COMMISSION
(China has "too many non-tariff restrictions.")Washington -- China is the source of America's second-largest trade deficit, following Japan, according to Commerce Secretary William Daley.
"The fact of the matter is," Daley said at a press roundtable on the eve of the 12th U.S.-China Joint Committee on Commerce and Trade, "our companies do not have the market access they need to have. There are simply too many non-tariff restrictions."
"Worse yet," he said, "more are being added. In the last few months, new trade and investment restrictions were imposed on at least 9 key sectors -- from agriculture to telecommunications to insurance. And these new restrictions have not gone unnoticed by us or a Congress increasingly concerned by the growing trade deficit, a worsening environment for business in China, continued restrictions on investors, and the lack of protection for intellectual property."
Following is the official text of Daley's remarks, as prepared for delivery:
(begin text)
U.S. SECRETARY OF COMMERCE WILLIAM M. DALEY'S OPENING STATEMENT
TO PRESS ROUNDTABLE ON THE 12TH ANNUAL U.S.-CHINA
JOINT COMMISSION ON COMMERCE AND TRADEAs Prepared for Delivery
Washington, D.C. -- Thank you for joining me today. Tomorrow I will begin two days of meetings with my counterpart from China, Minister of Foreign Trade and Economic Cooperation Shi. He is here in Washington for the 12th annual Joint Commission on Commerce and Trade or JCCT.
In the past two years, we have seen two Presidential Summits -- unprecedented in the history of U.S.-China relations. These and other government interactions, such as the JCCT, reflect the growing dedication of both governments to the principle of mutual cooperation by raising discussions on trade to the highest level.
This spring, I will travel to China to continue our discussions. I will lead a multi-agency infrastructure mission, to advance the commercial and economic goals of both of our nations. While we remain steadfastly committed to the policy of engagement with China, progress in addressing the ballooning trade deficit will be a critical indicator of the policy's success for both countries.
China is the source of our second largest trade deficit, following Japan. Since 1986, when the trade deficit with China was $1.7 billion, the trade deficit has surged nearly 30 times to about $50 billion. The fact of the matter is, our companies do not have the market access they need to have. There are simply too many non-tariff restrictions.
Worse yet, more are being added. In the last few months, new trade and investment restrictions were imposed on at least 9 key sectors -- from agriculture to telecommunications to insurance. And these new restrictions have not gone unnoticed by us or a Congress increasingly concerned by the growing trade deficit, a worsening environment for business in China, continued restrictions on investors, and the lack of protection for intellectual property.
Closing off sectors to imports and investment does not bode well for China's interest in acceding to the WTO. China can pursue its reform agenda while keeping its economy open. We want to see China in the WTO.
But it must be on a commercially meaningful basis with a sound package for industrial goods and services. It is the only means by which U.S. exports can achieve the kind of market access to improve our trade balance with China.
Demonstrating that our work in the JCCT can achieve important commercial outcomes on these difficult issues is the highest priority during the 12th session. We have an ambitious agenda on market access, commercial law including intellectual property rights, export controls, and on ways to greatly expand our already substantial sectoral cooperation.
Let me make a one final point before taking your questions.
While these meetings are focused on trade and economics, I am disturbed about recent setbacks on human rights in China. I plan to raise this during our during meetings. I absolutely believe that the lack of respect for human rights will have an adverse affect on our commercial relations, as well as on other aspects of the relationship. None of these can be considered separately. And this would not be good for either of our great nations, or the future of our relations.
Thank you.
(end text)
Return to The United States and China.
Return to USIA International Home Page.