[House Document 106-207]
[From the U.S. Government Publishing Office]





106th Congress, 2d Session - - - - - - - - - - - House Document 106-207
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              PERMANENT NORMAL TRADE RELATIONS FOR CHINA               

                               __________

                                MESSAGE

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

LEGISLATION AUTHORIZING THE PRESIDENT TO TERMINATE APPLICATION OF TITLE 
 IV OF THE TRADE OF ACT OF 1974 TO THE PEOPLE'S REPUBLIC OF CHINA AND 
  EXTEND PERMANENT NORMAL TRADE RELATIONS TREATMENT TO PRODUCTS FROM 
                                 CHINA




    March 8, 2000.--Message and accompanying papers referred to the 
         Committee on Ways and Means and ordered to be printed

                                -------                                

                    U.S. GOVERNMENT PRINTING OFFICE
79-011                     WASHINGTON : 2000       





To the Congress on the United States:
    Last November, after years of negotiation, we completed a 
bilateral agreement on accession to the World Trade 
Organization (WTO) with the People's Republic of China 
(Agreement). The Agreement will dramatically cut import 
barriers currently imposed on American products and services. 
It is enforceable and will lock in and expand access to 
virtually all sectors of China's economy. The Agreement meets 
the high standards we set in all areas, from creating export 
opportunities for our businesses, farmers, and working people, 
to strengthening our guarantees of fair trade. It is clearly in 
our economic interest. China is concluding agreements with 
other countries to accede to the WTO. The issue is whether 
Americans get the full benefit of the strong agreement we 
negotiated. To do that, we need to enact permanent Normal Trade 
Relations (NTR) for China.
    We give up nothing with this Agreement. As China enters the 
WTO, the United States makes no changes in our current market 
access policies. We preserve our right to withdraw market 
access for China in the event of a national security emergency. 
We make no changes in laws controlling the export of sensitive 
technology. We amend none of our trade laws. In fact, our 
protections against unfair trade practices and potential import 
surges are stronger with the Agreement than without it.
    Our choice is clear. We must enact permanent NTR for China 
or risk losing the full benefits of the Agreement we 
negotiated, including broad market access, special import 
protections, and rights to enforce China's commitments through 
WTO dispute settlement. All WTO members, including the United 
States, pledge to grant one another permanent NTR to enjoy the 
full benefits in one another's markets. If the Congress were to 
fail to pass permanent NTR for China, our Asian, Latin 
American, Canadian, and European competitors would reap these 
benefits, but American farmers and other workers and our 
businesses might well be left behind.
    We are firmly committed to vigorous monitoring and 
enforcement of China's commitments, and will work closely with 
the Congress on this. We will maximize use of the WTO's review 
mechanisms, strengthen U.S. monitoring and enforcement 
capabilities, ensure regular reporting to the Congress on 
China's compliance, and enforce the strong China-specific 
import surge protections we negotiated. I have requested 
significant new funding for China trade compliance.
    We must also continue our efforts to make the WTO itself 
more open, transparent, and participatory, and to elevate 
consideration of labor and the environment in trade. We must 
recognize the value that the WTO serves today in fostering a 
global, rules-based system of international trade--one that has 
fostered global growth and prosperity over the past half 
century. Bringing China into that rules-based system advances 
the right kind of reform in China.
    The Agreement is in the fundamental interest of American 
security and reform in China. By integrating China more fully 
into the Pacific and global economies, it will strengthen 
China's stake in peace and stability. Within China, it will 
help to develop the rule of law; strengthen the role of market 
forces; and increase the contacts China's citizens have with 
each other and the outside world. While we will continue to 
have strong disagreements with China over issues ranging from 
human rights to religious tolerance to foreign policy, we 
believe that bringing China into the WTO pushes China in the 
right direction in all of these areas.
    I, therefore, with this letter transmit to the Congress 
legislation authorizing the President to terminate application 
of Title IV of the Trade Act of 1974 to the People's Republic 
of China and extend permanent Normal Trade Relations treatment 
to products from China. The legislation specifies that the 
President's determination becomes effective only when China 
becomes a member of the WTO, and only after a certification 
that terms and conditions of China's accession to the WTO are 
at least equivalent to those agreed to between the United 
States and China in our November 15, 1999, Agreement. I urge 
that the Congress consider this legislation as soon as 
possible.

                                                William J. Clinton.
    The White House, March 8, 2000.

  Normal Trade Relations Treatment for The People's Republic of China

Section 1. Termination of application of Title IV of the Trade Act of 
        1974 to the People's Republic of China (China)
    (a) Presidental Determinations and Extension of Non-
Discriminatory Treatment.--Notwithstanding any provision of 
title IV of the Trade Act of 1974 (19 U.S.C. 2431 et seq.), the 
President may--
          (1) determine that such title should no longer apply 
        to China, and
          (2) after making a determination under paragraph (1) 
        with respect to China, proclaim the extension of 
        nondiscriminatory treatment (normal trade relations 
        treatment) to the products of that country.
    (b) China's Accession to the World Trade Organization 
(``WTO'').--Prior to making the determination provided for in 
subsection (a)(1) and pursuant to the provisions of section 122 
of the Uruguay Round Agreements Act (19 U.S.C. 3532), the 
President shall transmit a report to Congress certifying that 
the terms and conditions for China's accession to the WTO are 
at least equivalent to those agreed between the United States 
and China on November 15, 1999.
Section 2. Effective Dates
    (a) The extension of nondiscriminatory treatment pursuant 
to section 1 (a)(1) shall be effective no earlier than the 
effective date of China's accession to the WTO.
    (b) On and after the effective date under subsection (a) of 
the extension of nondiscriminatory treatment to the products of 
China, title IV of the Trade Act of 1974 shall cease to apply 
to that country.

                                

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