[Congressional Record Volume 142, Number 99 (Monday, July 8, 1996)]
[Extensions of Remarks]
[Page E1216]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                REGARDING THE PEOPLE'S REPUBLIC OF CHINA

                                 ______
                                 

                               speech of

                           HON. EARL POMEROY

                            of north dakota

                    in the house of representatives

                        Thursday, June 27, 1996

  Mr. POMEROY. Mr. Speaker, I rise today in opposition to House 
Resolution 461, a measure to revoke most-favored-nation [MFN] trade 
status for the People's Republic of China.
  Mr. Speaker, I could not more strongly agree with the objectives of 
the sponsors of this resolution, but I disagree with the means they 
propose to achieve them. The vital United States interests at stake in 
our relationship with China are clear: to curb weapons proliferation, 
increase respect for human rights, protect our allies on Taiwan, 
promote fair trade practices, advance political reform, and reduce the 
United States trade deficit. However, revoking MFN, effectively 
terminating our economic relationship with China, advances none of 
these objectives and, in fact, seriously damages United States economic 
and security interests.
  If the United States were to revoke MFN, the average tariff on 
Chinese imports would increase from 5 to 40 percent. The Chinese, of 
course, would respond in kind by erecting prohibitive tariffs on United 
States goods. The result would be not only a screeching, grinding halt 
to United States-China trade but also a deep freeze in Sino-American 
relations.
  The choice facing the House today is whether to pursue United States 
interests in China through a policy of engagement or a policy of 
isolation. Our recent experience with Chinese behavior during a period 
of isolation from the world community should be instructive. Before the 
economic and diplomatic opening of the late 1970's, most of the current 
problems in the Sino-United States relationship were worse than they 
are today: the regime was more abusive of human rights, even less 
tolerant of dissent, more aggressive toward Taiwan and other neighbors, 
and more determined to oppose United States interests at every 
opportunity. The spotlight of international engagement has advanced, 
albeit haltingly, United States interests in China.
  What are the consequences of revoking MFN? Without question, revoking 
MFN would damage the Chinese economy, but what effect would it have on 
our own economy? With regard to agriculture, I can tell you that this 
resolution of disapproval is one of the most important pieces of farm 
legislation that Congress will consider this year.
  We must promote American agriculture through increasing world food 
demand and exports. China represents a perfect example of a growing 
market hungry for quality American food products. As the Chinese diet 
continues to improve they will demand high-value agricultural products 
like meats, fruits, and vegetables--commodities American producers are 
eager to export.
  United States agricultural exports to China reached record levels 
again last year with nearly $2.6 billion in total sales. The USDA 
projects 1996 exports to reach $2.9 billion. Included in the 1995 
export total is over $500 million in wheat, a 200-percent increase over 
1994. Agriculture exports not only benefit farmers but also support the 
schools, hospitals, and small businesses that are the backbone of rural 
communities in North Dakota and across the country.
  The Congressional Research Service has estimated that without MFN and 
the ability to export wheat to China, wheat prices will fall by 23 
cents per bushel by 1998. That price drop translates into a $10,000 hit 
to the average North Dakota wheat farm. Once that market is lost 
American producers may never have the opportunity to reclaim it as 
other suppliers would certainly move in to fill the void. Why would we 
now want to shut off our farmers from the world's largest market? 
Disapproving MFN strikes at the heart of rural America and the American 
farmer.
  Extending MFN to China serves the economic and security interests of 
the United States. I urge my colleagues to oppose the resolution of 
disapproval.

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