[Congressional Record Volume 143, Number 69 (Thursday, May 22, 1997)]
[Extensions of Remarks]
[Page E1041]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          THE CHINA MARKET ACCESS AND EXPORT OPPORTUNITIES ACT

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                           HON. DOUG BEREUTER

                              of nebraska

                          HON. THOMAS W. EWING

                              of illinois

                    in the house of representatives

                         Thursday, May 22, 1997

  Mr. BEREUTER. Mr. Speaker, this legislation is a combination of 
legislation individually sponsored by myself (H.R. 35, the Fair Trade 
Opportunities Act) and Representative Ewing (H.R. 941).
  Removes China from the annual Most-Favored Nation [MFN] process when 
that country accedes to the World Trade Organization under an accession 
process that is supported by the United States.
  After China's accession to the World Trade Organization, the 
President would no longer have to waive or certify that China meet 
Jackson-Vanik requirements. China would receive normal tariff status 
routinely unless either the Congress or the President used other 
existing authority to raise tariffs on China's goods.
  Requires the President to utilize a strategic and flexible ``snap-
back'' tariff if China either denies United States adequate trade 
benefits or fails to take adequate steps to become a member of the WTO.
  On a one-time basis and within 6-months of the enactment of the 
legislation, the President would be required to determine if China is 
``not according adequate trade benefits''--defined in existing law--to 
the United States or if China is not taking adequate steps to become a 
WTO member. If the President makes such a finding, then the President 
shall impose snap-back tariffs on China 6-months after that 
determination. In imposing snap-back tariffs, the President has wide 
discretion to determine both the amount of the tariff and on which 
categories of products the snap-back tariffs will be imposed. However, 
under no circumstances can the President exceed the legislation's snap-
back tariff ceiling which is the pre-Uruguay round MFN tariff rates, 
for example, the column No. 1 tariff rates in effect on December 31, 
1994.
  A study by the Congressional Research Service estimates that if the 
President were to utilize his full snap-back authority, for example, on 
the top 25 Chinese exports to the United States--based on 1995 
figures--an additional $325 million in tariff revenue would be 
generated for the United States Treasury.--This estimate is not 
adjusted to reflect any downward demand for the product due to the 
increased tariff.
  The President would be required to terminate the imposed snap-back 
tariffs on China on the date China becomes a WTO member or on the date 
the President determines that China is according adequate trade 
benefits to the United States or making taking significant steps to 
become a WTO member, whichever is earlier. The President would also be 
able to modify the snap-back tariffs for any reason as long as the 
appropriate congressional committees are notified.

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