[Congressional Record (Bound Edition), Volume 145 (1999), Part 20]
[Senate]
[Pages 29689-29690]
[From the U.S. Government Publishing Office, www.gpo.gov]




                         WTO ACCESSION OF CHINA

  Mr. BAUCUS. Mr. President, I congratulate Ambassador Barshefsky and 
the administration on reaching an agreement this week with China on WTO 
accession. This demonstrates that a policy of ``engagement with a 
purpose'' works. I believe the Chinese leadership, in particular 
Premier Zhu Rongji and President Jiang Zemin, have shown foresight, 
courage, and vision in making the commitments necessary to conclude 
this bilateral agreement. I am also glad President Clinton worked so 
diligently over the last several months to finalize the arrangement.
  I believed in April that the April 8 arrangement with China was a 
good one. My preliminary evaluation of this week's agreement is that it 
goes beyond the April 8 agreement and provides further benefits to 
American economic interests.
  There are still several steps before China can accede to the WTO.
  China must complete other bilateral agreements, in particular with 
the European Union. Next, the protocol of accession must be completed. 
Then, the focus of attention will turn to us in the Congress.
  In order to receive the benefits we negotiated with China, the United 
States has to grant China permanent normal trade relations status. To 
do this, Congress has to amend the Jackson-Vanik amendment.
  I am confident that a majority in both Houses will vote to amend 
Jackson-Vanik. But it will take a lot of work. The administration, the 
agriculture, manufacturing, and service industries, and those of us in 
the Congress who have followed these negotiations and the U.S.-China 
relationship closely over the years, must educate and explain to our 
colleagues about the benefits of the agreement reached this week and 
the advantages to the United States of having China in the WTO.
  As we in the Congress begin to think about this issue and deliberate 
on it next year, I see four principal benefits to the United States.
  First, this week's agreement opens up new markets in China, with its 
population of 1.3 billion, for American farmers, manufacturers, and 
service industries. This will help sustain American economic growth.
  Second, the agreement gets China into the global trading system, 
which forces them to play by the rules of international trade.
  For perhaps the first time in history, China will be accountable for 
its behavior to the outside world. The dispute settlement system at the 
WTO is

[[Page 29690]]

far from perfect, but it forces a country to explain actions that other 
members believe violate the global rules. And, when a violation is 
found, it puts pressure on that country to comply with the rules. In 
addition, there is a little known feature of the WTO called the Trade 
Policy Review Mechanism, the TPRM. Every few years, a country's entire 
trade system is reviewed by all other members. Again, this type of 
scrutiny of China is virtually unprecedented.
  Third, the agreement will help strengthen the economic reformers in 
China, especially Premier Zhu Rongji who has clearly been in a weakened 
position this year. Economic reform, moving to a market economy, 
transparency--that is, opening up, less secrecy--direct foreign 
investment, listing of companies on overseas markets--progress in all 
these areas is of vital importance to the United States as they relate 
to stability in China, as they relate to accountability, and as they 
relate to a growing middle class.
  Fourth, Taiwan, the 12th-largest economy in the world, has almost 
completed its WTO accession process. Yet it is a political reality 
internationally that Taiwan cannot join the WTO before China. So, with 
China's admission to the WTO, Taiwan will follow very quickly. All of 
us should welcome that.
  The Congress has been concerned about many aspects of the U.S.-China 
relationship: espionage allegations, nuclear proliferation, human 
rights, and Taiwan. These are all serious issues, and we must confront 
each one head on.
  But, I, and I believe most Members of Congress, are able to look at 
each issue on its own merits. When Congress examines closely the 
arrangement for Chinese accession to the WTO, I am confident that 
Members will conclude that extending permanent normal trade relations 
status to China is now in the best interest of the United States.
  I don't want to sound pollyannaish about this. Once China is a member 
of the WTO and the United States has granted permanent NTR status, the 
real work of implementation begins. We have learned over the years that 
implementation of trade agreements takes as much effort, or even more 
effort, than the negotiations themselves. The administration will have 
to provide us with a plan about implementation. We in the Congress will 
have to devote additional resources and energy to ensuring full Chinese 
implementation.
  Earlier this year, I introduced a bill to establish a Congressional 
Trade Office to provide the Congress with additional resources to do 
exactly that. I hope my colleagues will look at that proposal and give 
it their support. In addition, I will be introducing some measures to 
help ensure that the administration--this one as well as future 
administrations--never deviates from the task of full implementation of 
agreements with China.
  In conclusion, this is a good agreement. It serves American 
interests.
  We have a lot of work ahead of us to help implement it and to follow 
up next year to make sure it is implemented. It deserves our support.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Vermont.
  Mr. LEAHY. Mr. President, what is the situation? Are we still in 
morning business or is this a matter of some dispute?
  The PRESIDING OFFICER. Morning business has expired, but the Senator 
is certainly free to proceed.
  Mr. LEAHY. Once morning business has expired, do we go back on the 
bankruptcy bill?
  The PRESIDING OFFICER. That is the understanding, yes.

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