[Federal Register Volume 64, Number 15 (Monday, January 25, 1999)]
[Notices]
[Pages 3714-3715]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-1637]


=======================================================================
-----------------------------------------------------------------------

INTERNATIONAL TRADE COMMISSION

[Investigation 332-403]


Assessment of the Economic Effects on the United States of 
China's Accession to the WTO

AGENCY: United States International Trade Commission.

ACTION: Institution of investigation and notice of opportunity to 
submit comments.

-----------------------------------------------------------------------

EFFECTIVE DATE: January 19, 1999.

SUMMARY: Following receipt on December 21, 1998, of a request under 
sec. 332(g) of the Tariff Act of 1930 (19 U.S.C. 1332(g)) from the 
United States Trade Representative (USTR), the U.S. International Trade 
Commission (the Commission) instituted investigation No. 332-403, 
Assessment of the Economic Effects on the United States of China's 
Accession to the WTO. The Commission plans to submit its report to the 
USTR by June 1, 1999.

FOR FURTHER INFORMATION CONTACT: Arona Butcher, Office of Economics, 
(202-205-3301) or James Stamps, Office of Economics (202-205-3227). The 
media should contact Margaret O'Laughlin, Office of External Relations 
(202-205-1819). Hearing impaired individuals are advised that 
information on this matter can be obtained by contacting the TDD 
terminal on (202-205-1810). General information concerning the 
Commission may also be obtained by accessing its Internet server 
(http://www.usitc.gov).

SUPPLEMENTARY INFORMATION:

Background

    As requested by the USTR, the Commission will provide in its report 
an assessment of the probable economic effects on the United States of 
China's accession to the World Trade Organization (WTO). As requested, 
the Commission will conduct a comparative static analysis. The analysis 
will be based on actual trade and related economic variables from a 
recent representative, historical period. It will reflect, to the 
extent possible, how those trade and related economic variables would 
have appeared in that same period had China been a member of the WTO 
with all adjustments made that would result from China's lowering and 
binding its tariffs, accepting the disciplines on non-tariff barriers, 
and complying with the WTO.
    As requested, the Commission will report on standard U.S. economic 
variables. These will include (1) aggregate exports and imports with

[[Page 3715]]

China and the world, employment, average labor productivity, average 
labor compensation, and gross domestic product, and (2) changes in U.S. 
trade, investment, output, and employment at the sectoral level and 
changes in consumer prices of various affected goods and services. The 
Commission will also provide a profile of China's trade and investment 
patterns and will estimate or discuss, to the extent possible, the 
effect of WTO accession on China's pattern of trade, rate of economic 
growth, and internal economic reform process.
    With regard to Chinese tariff reductions, the Commission will make 
two assessments: it will consider a 25 percent and a 50 percent across-
the-board cut in Chinese tariff rates, with each tariff reduction taken 
in turn from two sets of base rates'from China's 1992 tariff rates and 
from China's 1996 tariff rates (or the most recent feasible year if 
1996 data are not available).
    As requested, the Commission will seek to assess changes in U.S. 
trade, U.S. foreign investment, and the U.S. domestic economy resulting 
from certain non-tariff aspects of a possible accession agreement. The 
Commission will provide a quantitative assessment of the following to 
the extent possible, or a qualitative assessment where either data or 
methodological limitations preclude quantitative estimates:
    1. The elimination of China's WTO-inconsistent licensing, quota, 
and tendering requirements;
    2. A comparison of the current trade situation with China to the 
institution of tariff rate quotas as part of an accession package on 
the following agricultural products: corn, cotton, oilseeds, rice, 
sugar, vegetable oils, wheat, wool, and wool tops;
    3. The elimination of China's trade-related investment measures 
such as export performance requirements, local content, and trade and 
foreign exchange balancing;
    4. Market openings in the following Chinese service sectors: 
distribution (including Commission agents, wholesaling, retailing, and 
franchising); financial services (including insurance); 
telecommunications (including basic and value-added services); tourism 
and travel; land-based air courier services; business services 
including professional services, consultancy and advertising; and 
business services auxiliary to distribution such as rental and leasing 
of equipment, maintenance and repair, packaging, storage, and 
warehousing;
    5. An analysis of the effect of China's compliance with WTO rules 
on or affecting transparency, national treatment, judicial review, 
state trading, offset, and protection and transfer of technology;
    6. The effect of the removal of U.S. quantitative restrictions on 
textile and apparel imports on all WTO members relative to the 
inclusion of China, in the context of the U.S. bilateral agreements on 
textiles and apparel with China; and
    7. Any other change in the conditions of trade with China that is a 
result of accession and likely to materially affect U.S. trade and 
investment flows.

Public Hearing

    A public hearing in connection with this investigation will be held 
in the Commission Hearing Room, 500 E Street, SW, Washington, DC 20436, 
beginning at 9:30 am on February 23, 1999 (and 24th, if needed). All 
persons will have the right to appear by counsel or in person, to 
present testimony, and to be heard. Requests to appear at the public 
hearing should be filed in writing with the Secretary, United States 
International Trade Commission, 500 E Street, SW, Washington, DC 20436, 
on or before noon February 12, 1999. Persons testifying at the hearing 
are encouraged to file prehearing briefs or statements; the deadline 
for filing such briefs or statements (a signed original and 14 copies) 
is noon February 12, 1999. The deadline for filing posthearing briefs 
or statements is March 9, 1999. Any confidential business information 
included in such briefs or statements or to be submitted at the hearing 
must be submitted in accordance with the procedures set forth in 
section 201.6 of the Commission's Rules of Practice and Procedure (19 
CFR 201.6). In the event that, as of the close of business on February 
12, 1999, no witnesses are scheduled to appear at the hearing, the 
hearing will be canceled. Any person interested in attending the 
hearing as an observer or non-participant may call the Secretary to the 
Commission (202-205-1816) after February 12, 1999, to determine whether 
the hearing will be held.

Written Submissions

    U.S. firms and other interested persons are invited to submit 
written statements concerning any of the matters to be addressed in the 
report. The Commission is especially interested in receiving:
    1. Information regarding the likely economic effects of a 25 
percent or a 50 percent reduction in current Chinese tariff rates on 
the interests of specific U.S. firms, industries, investors, consumers, 
or groups of workers;
    2. A list of Chinese non-tariff barriers ranked according to the 
degree of concern to the interests of specific U.S. firms, industries, 
investors, consumers, or groups of workers; and
    3. Quantitative estimates (in percentage terms, if possible) of the 
current economic effects of Chinese non-tariff barriers, and estimates 
of the potential economic effects on U.S. exports, employment, and 
investment of reducing or eliminating these non-tariff barriers.
    Commercial or financial information that a person desires the 
Commission to treat as confidential must be submitted on separate 
sheets of paper, each clearly marked ``Confidential Business 
Information'' at the top. All submissions requesting confidential 
treatment must conform with the requirements of section 201.6 of the 
Commission's Rules of Practice and Procedure (19 CFR 201.6). All 
written submissions, except for confidential business information, will 
be made available for inspection by interested persons in the Office of 
the Secretary to the Commission. To be assured of consideration by the 
Commission, written statements relating to the Commission's report 
should be submitted at the earliest practical date and should be 
received not later than March 9, 1999. All submissions should be 
addressed to the Secretary, United States International Trade 
Commission, 500 E Street SW, Washington, D.C. 20436. The Commission's 
rules do not authorize filing of submissions with the Secretary by 
facsimile or electronic means.

    By order of the Commission.

    Issued: January 20, 1999.
Donna R. Koehnke,
Secretary.
[FR Doc. 99-1637 Filed 1-22-99; 8:45 am]
BILLING CODE 7020-02-P