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

TEXT: 1997 CHINA MARKET ACCESS AND EXPORT OPPORTUNITIES ACT
(Bill would change conditions for MFN for China)

Washington -- Rep. Doug Bereuter (Republican of Nebraska), chairman of the House International Relations Subcommittee on Asia and the Pacific, and Rep. Thomas Ewing (Republican of Illinois) introduced the "China Market Access and Export Opportunities Act of 1997" May 22.

The bill, H.R. 1712, would "encourage the People's Republic of China to join the World Trade Organization (WTO) by removing China from Title IV of the Trade Act of 1974 upon its accession to the World Trade Organization and to provide a more effective remedy for inadequate trade benefits extended by the People's Republic of China to the United States," according to the Congressional Record.

Currently, the administration must request an waiver of the Jackson-Vanik provisions of the Trade Act of 1974 for China each year -- i.e., the administration must certify that China, as a non-market economy, allows free emigration -- in order for China to be eligible for most-favored-nation (MFN) trading status with the United States. If passed, H.R. 1712 would change the conditions for China's MFN status from emigration to market access.

The bill would also impose tariffs on China at pre-Uruguay Round levels within six months of its enactment unless the President certifies that China is "according adequate trade benefits to the United States, including substantially equal competitive opportunities for the commerce of the United States" and "taking adequate steps or making significant proposals to become a WTO member."

Following is the official text of H.R. 1712, as obtained from the Congressional Record:

(begin text)

China Market Access and Export Opportunities Act of 1997
(Introduced in the House)

HR 1712

105th CONGRESS

1st Session

H. R. 1712

To encourage the People's Republic of China to join the World Trade Organization by removing China from title IV of the Trade Act of 1974 upon its accession to the World Trade Organization and to provide a more effective remedy for inadequate trade benefits extended by the People's Republic of China to the United States.

IN THE HOUSE OF REPRESENTATIVES

May 22, 1997

Mr. BEREUTER (for himself and Mr. EWING) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To encourage the People's Republic of China to join the World Trade Organization by removing China from Title IV of the Trade Act of 1974 upon its accession to the World Trade Organization and to provide a more effective remedy for inadequate trade benefits extended by the People's Republic of China to the United States.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `China Market Access and Export Opportunities Act of 1997'.

SEC. 2. STATEMENT OF PURPOSE.

It is the purpose of this Act --

(1) to authorize the President of the United States to raise tariffs on imports from the People's Republic of China to tariff levels in effect on December 31, 1994, if the President determines, 6 months after the date of the enactment of this Act, that the People's Republic of China is either denying adequate trade benefits to the United States or not taking steps to become a full member of the World Trade Organization;

(2) to provide a significant incentive for the People's Republic of China to gain admission to the World Trade Organization by eliminating the annual review of China's trade status after it commits to a commercially acceptable protocol and is admitted to the World Trade Organization; and

(3) therefore to enhance the ability of the President of the United States to negotiate a commercially acceptable World Trade Organization protocol with the People's Republic of China.

SEC. 3. SNAP-BACK MECHANISM.

(a) DETERMINATION WITH RESPECT TO THE PEOPLE'S REPUBLIC OF CHINA -- After the enactment of this Act, the President shall, after consulting with the appropriate congressional committees, determine whether or not the People's Republic of China is --

(1) according adequate trade benefits to the United States, including substantially equal competitive opportunities for the commerce of the United States; and

(2) taking adequate steps or making significant proposals to become a WTO member.

(b) SUBMISSION OF FINDINGS -- Not later than 180 days after the date of the enactment of this Act, the President shall submit to the appropriate congressional committees a report setting forth his determinations under paragraphs (1) and (2) of subsection (a), with a rationale for each determination.

(1) IMPOSITION OF INCREASE -- If the President determines either --

(A) under paragraph (1) of subsection (a) that the People's Republic of China is not according adequate trade benefits to the United States, or

(B) under paragraph (2) of subsection (a) that the People's Republic of China is not taking adequate steps or making significant proposals to become a WTO member,

then the President shall proclaim, within 180 days after the date of that determination, an increase in the rate of duty with respect to 1 or more products of that country to not more than the column 1 rate of duty under the Harmonized Tariff Schedule of the United States that applied to the article or articles on December 31, 1994.

(2) TERMINATION OF INCREASE -- The President shall terminate any increase in the rate of duty imposed under paragraph (1) on the earlier of --

(A) the date on which the People's Republic of China becomes a WTO member; or

(B) the date on which the President proclaims that --

(i) the People's Republic of China is according adequate trade benefits to the United States, including substantially equal competitive opportunities for the commerce of the United States; and

(ii) the People's Republic of China is taking adequate steps or making significant proposals to become a WTO member.

(3) MODIFICATION OF TARIFF -- The President may modify any increase in the rate of duty imposed under paragraph (1) if the President notifies the appropriate congressional committees of the modification and the reasons therefor, except that --

(A) the modification may not result in a rate of duty higher than that permitted under paragraph (1); and

(B) the authority of this paragraph may not be used to terminate an increase in the rate of duty imposed under paragraph (1).

SEC. 4. ACCESSION TO THE WORLD TRADE ORGANIZATION.

On the date on which the People's Republic of China becomes a WTO member, the provisions of title IV of the Trade Act of 1974 shall cease to apply to that country, and nondiscriminatory treatment shall apply to the products of that country.

SEC. 5. DEFINITION.

As used in this Act, the term `WTO member' has the meaning given that term in section 2(10) of the Uruguay Round Agreements Act (19 U.S.C. 3501(10)).

(end text)

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