Text: Rep. Calvin Dooley on China Normal Trade Relations
(Dooley: U.S. can't afford "Cold War mentality" on China)Praising the agreement reached between China and the United States regarding China's accession to the World Trade Organization (WTO), Representative Calvin Dooley (Democrat of California) said the United States "would be foolish to abandon the opportunity to enhance our economic and political relationship with China."
In prepared remarks to the House Ways and Means Committee February 16, Dooley noted how his district in central California is the largest agricultural district in the nation, and that his constituents were very aware of the benefits the agreement could bring them.
By granting permanent Normal Trade Relations (NTR) status to China, the United States could take advantage of its agreement with China and gain "tremendous access to the world's largest agricultural market," Dooley said.
"Under the terms of the agreement," Dooley said, "high Chinese tariffs on nearly all agriculture products would be reduced substantially over the next four years."
"We cannot afford to embrace a Cold War mentality that would demonize and isolate China," he warned. Instead, Dooley said, we should follow a policy "of economic and political engagement."
Dooley is a member of the New Democrat Coalition, a group of 65 "centrist and pro-growth" members of the House of Representatives founded in 1997.
Following is the text of Dooley's remarks, as prepared for delivery:
(begin text)
Statement by Congressman Cal Dooley
to the House Ways and Means Committee
Regarding the U.S.-China Bilateral Trade Agreement
and the Accession of China to the WTOWednesday, February 16, 2000
Chairman Archer, Ranking-Member Rangel, and members of the committee, thank you for allowing me to testify today on the very timely issue of U.S.-China Relations and the possible accession of China into the World Trade Organization (WTO.)
First, I would like to commend U.S. Trade Representative Barshefsky and her negotiating team for reaching this historic bilateral trade agreement with China, and paving the way for China's accession into the WTO. The agreement is the culmination of 13 years of negotiations to open up the Chinese economy, and is stronger and more comprehensive than the set of commitments China made last Spring.
Since the reestablishment of diplomatic relations with China in 1979, total trade between our two nations has increased from $4.8 billion in 1980 to $75.4 billion in 1997. This makes China our fourth largest trading partner. China's economy is growing at an average rate of almost 10 percent a year, making it one of the fastest growing economies in the world.
Under the WTO accession agreement, China has agreed to dramatically lower tariffs, eliminate agricultural and industrial export subsidies and quotas, and permit American service exports in sectors including banking, insurance and telecommunications. These tariff reductions and service access provisions provide the U.S. with unlimited possibilities to grow and improve our standard of living. Furthermore, it is important to remember that in the course of negotiations, China agreed to one-way market opening concessions. The United States, on the other hand, made no concessions other than to bring China under the rules-based system of the WTO.
My district in central California is the largest agricultural district in the nation, and the benefits and opportunities created by this agreement are not lost on my constituents. It is projected that by the year 2003, 37 percent of the world food demand will come from China. American ranchers and farmers are the most efficient and competitive in the world. The bilateral agreement would move to level the playing field and allow U.S. agriculture tremendous access to the world's largest agricultural market.
Under the terms of the agreement, high Chinese tariffs on nearly all agriculture products would be reduced substantially over the next four years. On beef we would see tariffs reduced from 45 percent to 12 percent, on citrus from 40 percent to 12 percent and on wine from 65 percent to 20 percent. In fact, the deal would reduce tariffs for agricultural products to levels below those of most American trading partners. Furthermore, the agreement on the table would eliminate China's export subsidies for agricultural products including cotton, rice and corn, which will allow U.S. farmers to compete on a more level playing field and enhance U.S. efforts to curb European export subsidies.
In addition to the very tangible benefits this agreement offers to U.S. farmers, it is also a key component to continuing our nation's longest economic expansion -- an economic expansion that has raised the standard of living for working Americans across the country. The technology sector has been a driving force behind this period of unprecedented economic growth, and the China WTO accession agreement will give U.S. telecommunications, software and Internet companies access to China's 1.2 billion people.
China is currently the sixth largest computer market and the fourth largest computer chip market. It is expected to become the number two market, after the United States, in the very near future. Providing the U.S. high-tech sector with access to this enormous, and largely untapped market, will help to generate the fuel for continued economic growth and opportunity for American workers and their families.
Expanding access to technology and the Internet is important to the U.S. economy, but it is also key to promoting personal freedoms in China. In 1998, five million Chinese citizens had access to the Internet. In just one year that number has doubled with ten million Chinese citizens now enjoying access to the World Wide Web. While the growth in Internet use certainly represents economic opportunity for U.S. technology firms and the U.S. economy as a whole, it also represents more than that. It provides the people of China with unprecedented access to limitless information, and is a tremendous tool helping to move the Chinese toward greater personal and economic freedoms.
Without a doubt, the WTO agreement would certainly present tremendous opportunities for U.S. workers and businesses. But bringing China into the WTO is more than just a matter of market share. China's accession into the WTO would lock China into a rules-based international organization and bring them into the legal framework of the international community through the WTO. In addition to tariff reductions and other market access agreements, bringing China under the umbrella of the WTO would make China accountable for its trade practices and subject to WTO enforcement actions.
The historic agreement is a classic win-win for the United States, creating unlimited possibilities for American businesses and workers and providing the fuel for a continued economic expansion that has allowed American families to improve their standard of living and quality of life. In addition to expanding market opportunities, bringing China into the WTO will mean that they play by the same "rules of the road" as our other trading partners.
At this critical juncture, we would be foolish to abandon the opportunity to enhance our economic and political relationship with China, and with it, our ability to influence their economic, political, and humanitarian policies in the future. We cannot afford to embrace a Cold War mentality that would demonize and isolate China. A policy of economic and political engagement is the surest way to promote U.S. interests in China, to advance democracy and human rights within China, and to enhance future economic opportunities for U.S. workers and businesses.
I look forward to working with my colleagues on the committee and with the Administration to advance this important policy.
(end text)
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