*EPF406 05/25/00
Text: House Agriculture Chairman on China PNTR Vote
(Combest expects boon for U.S. farmers) (620)

China's markets are vital to the long-term success of U.S. farmers and ranchers, says U.S. House Agriculture Chairman Larry Combest of Texas.

Combest said May 24 that the passage of legislation providing Permanent Normal Trade Relations (PNTR) for China by the House of Representatives will expand trading opportunities for U.S. agriculture, and could be expected to boost U.S. farm trade by as much as $2,000 million annually over the next five years.

U.S. Agriculture Secretary Dan Glickman said in a separate statement May 24 that the House vote "is an important victory for American farmers and the American people. Despite the strong national economy, American farmers are struggling. While there is no panacea for the low prices and tough times our farmers face, expanded trade will certainly help."

Following is the text of Combest's remarks:

(Note: In the text "billion" equals 1,000 million.)

(begin text)

[Washington, D.C.
May 24, 2000]

House Passes China PNTR Bill
Chairman Expects Boon for American Farmers and Ranchers

Washington -- Today, by a vote of 237-197, the U.S. House of Representatives passed legislation (H.R. 4444) providing for Permanent Normal Trade Relations (PNTR) with China.

"China represents an agriculture market that is vital to the long-term success of American farmers and ranchers," said Committee Chairman Larry Combest (Republican-Texas). "Agriculture trade with China can strengthen development of private enterprise in that country and bring China more fully into world trade membership."

For American farmers and ranchers, trade is an essential part of their livelihoods. Currently exports account for 30 percent of U.S. farm cash receipts and nearly 40 percent of all agricultural production is exported. Last year, U.S. agricultural exports to China amounted to $2.2 billion with a $1.4 billion surplus. With PNTR, agricultural trade is expected to increase by as much as $2 billion annually by 2005.

"USDA's Economic Research Service (ERS) and private U.S. agricultural commodity groups believe that China will continue to be a major market for US agricultural products, and that China's accession to the WTO will expand that market," said Ranking Committee Member Charlie Stenholm (D-TX). "Overall, the ERS concludes that China's implementation of its WTO obligations between 2000 and 2004 will add $2 billion to the bottom line for U.S. farmers and ranchers in 2005. Furthermore, I believe that U.S. engagement with China will persuade the Chinese to play by the rules in agricultural trade and improve its record on human rights, labor and the environment."

"China has access to U.S. markets right now," Combest said. "China will become a member of the WTO and after its accession will continue to have the same access. Today's vote was a decision to improve our access to the huge Chinese market rather than cede that market to the competitors of U.S. agriculture."

Without PNTR, no free trade enforcement mechanisms would be available and the U.S. would not be able to use WTO dispute settlement provisions. The ability to enforce tariff rate quotas would also be undermined. The U.S. could not challenge Chinese export or domestic subsidies and could not enforce the sanitary and phytosanitary agreement that was negotiated for U.S. citrus, wheat, and meat. Finally, special safeguard provisions designed to protect against import surges would not be available.

More than 80 agricultural organizations representing producers, processors, and exporters support permanent extension of normal trade relations with China. Eight former Secretaries of Agriculture support granting permanent normal trade relations for China. Former Presidents Bush, Carter and Ford support this effort.

(end text)

(Distributed by the Office of International Information Programs, U.S. Department of State. Website: http://usinfo.state.gov)
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