*EPF503 02/18/00
Text: Rep. Walden Feb. 16 Testimony on U.S. China Trade Deal
(Republican urges permanent Normal Trade Relations) (910)
The United States would be letting a "golden opportunity" slip by if it failed to grant permanent Normal Trade Relations (NTR) status to China, says a Republican lawmaker.
Representative Greg Walden (Republican of Oregon) testified February 16 before the House Ways and Means Committee in support of granting China permanent NTR status and in support of the agreement reached between the United States and China last November regarding China's accession to the World Trade Organization (WTO).
Granting permanent NTR status, Walden said, would give American farmers and businesses access to Chinese markets.
"Should we fail to bestow permanent NTR status to China," Walden said, "we will face an extreme trading disadvantage with other countries around the world."
Following is the text of Walden's remarks, as prepared for delivery:
(begin text)
STATEMENT OF CONGRESSMAN GREG WALDEN (OR-02)
HOUSE COMMITTEE ON WAYS AND MEANS HEARING ON U.S.-CHINA BILATERAL TRADE AGREEMENT AND THE ACCESSION OF CHINA TO THE WTO
FEBRUARY 16, 2000
Thank you Chairman Archer and members of the committee for affording me the opportunity to speak here today on the significance of the bilateral trade agreement reached last year with China. I appreciate the opportunity to discuss significant gains for the U.S. under this agreement, as well as what China's accession into the World Trade Organization (WTO) would mean for the state of Oregon.
Poised on the Pacific Ocean, and bordered by the Columbia River, Oregon has long been a gateway for trade with Asia. Oregonians are savvy and experienced traders who see the potential for trade with our friends across the Pacific Ocean as an opportunity to share with them the quality products that we design, produce and grow. Trade agreements, such as the bilateral agreement signed with China, are critical to their success in the burgeoning world marketplace.
The bilateral agreement negotiated last year between the U.S. and China made great strides toward improving trade between our two countries and sets the stage for China's accession into the WTO. I applaud the agreement that was made with China during these negotiations to drop their sanitary and phytosanitary barriers on Pacific Northwest wheat. For 26 years China kept wheat from the Pacific Northwest out of their country by the use of sanitary and phytosanitary barriers. The wheat farmers in my district, and throughout the Pacific Northwest, pride themselves on their high quality wheat, and applaud China's lifting of these unfair barriers.
The market access agreement negotiated by the U.S. and China further benefits our farmers and ranchers by slashing China's overall tariff on agricultural products to 17.5%, with further reductions to many specific commodities upon China's accession into the WTO. It establishes a Tariff Rate Quota for many bulk commodities, such as wheat, which guarantees low tariff access for specified quantities. Under this agreement China further agreed to eliminate direct export subsidies for their agricultural products, leveling the playing field for U.S. agricultural producers.
Farmers and ranchers in Oregon understand the vast potential of China's market. The Oregon Potato Commission estimates that they could see a reduction in the tariff on frozen french fries from 25% to 13% should China be admitted into the WTO. The Commission further projects exports of U.S. frozen french fries to grow exponentially under the 13% tariff rate, and indicate that they could exceed 250,000 metric tons by 2005. This is an amazing figure when compared with 15,000 metric tons exported in 1997.
The market access agreement is also important to the many businesses that help fuel Oregon's economy. With high technology exports accounting for 41% of Oregon's trade with China in 1998, it is encouraging to see tariffs on products such as computers, semiconductors, and all internet-related equipment fall from an average of 13.3% to 0% by 2005 under the market access agreement. Oregon's diverse manufacturing industry would also be helped by the industrial tariff reduction from 24.6% in 1997 to an average of 9.4% by 2005.
Oregon's businesses are also concerned about the piracy of their intellectual property rights in China. Piracy of American intellectual property rights for business software and trademarks is widespread and is costing our businesses countless dollars each year. Should China be admitted to the WTO, Oregon's businesses will finally have a solid foundation from which these issues ran be resolved through the dispute settlement mechanisms built into the WTO.
Currently, U.S. markets are open to China but numerous obstacles still exist for American access to the Chinese marketplace. Congress will have a limited chance to balance the scales and provide vast opportunities for American enterprise when we vote to extend Permanent Normal Trade Relations (PNTR) status to China. This is a critical time for us all. Should we fail to bestow PNTR status on China, we will face an extreme trading disadvantage with other countries around the world -- countries who will be more than eager to see the U.S. default on the opportunity to fill China's demand for quality products. Let's not let this golden opportunity for the United States slip by.
Mr. Chairman and members of the committee, thank you for the opportunity to reiterate the significant benefits at stake in our trading relationship with China.
(end text)
(Distributed by the Office of International Information Programs, U.S. Department of State. Web site: usinfo.state.gov)
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