China's long march to WTO
ends in triumph
By Brendan Pearson, Auckland
The United States and China are expected to clinch a deal
in Auckland this weekend on China's long-awaited entry to
the World Trade Organisation.
Negotiations on the controversial deal resumed in earnest
in the margins of the APEC Ministerial Meeting in
Auckland yesterday, with a round of bilateral meetings last
night between US Trade Representative Ms Charlene
Barshefsky, US Commerce Secretary Mr William Daley
and China's Minister for Foreign Economic Co-operation,
Mr Shi Guangsheng.
The efforts are aimed at resolving a handful of outstanding
issues to enable US President Bill Clinton and President
Jiang Zemin to announce in-principle agreement on the
terms of China's entry to the global trade body when they
meet in Auckland on Sunday. China first applied for entry
to the WTO's predecessor, the GATT, in 1986.
New Zealand's Minister for Trade, Dr Lockwood Smith,
said yesterday that the APEC ministerial communique to
be issued later today would include strong and unanimous
endorsement for China and Taiwan's entry to the WTO as
soon as possible.
Negotiations on China's accession restarted in Beijing with
a "technical review" earlier this week, after being
suspended in May after the bombing of the Chinese
Embassy in Belgrade.
A renewed sense of urgency surrounds the negotiations,
with less than two months remaining before the launch of
global trade negotiations in Seattle in late November.
Trade experts have indicated that early conclusion of
China's negotiations with the US and the European Union
is necessary to ensure there is sufficient time to conclude
remaining protocols before the Seattle WTO summit.
In addition to the ministerial-level talks, negotiations also
resumed at the detailed working level yesterday between
US negotiator Mr Robert Cassidy and his Chinese
counterpart, Mr Long Yongtu.
While Ms Barshefsky and Mr Daley stressed that a
number of issues remained outstanding, sources suggested
the US was unlikely to insist on major improvements to the
Chinese offer tabled in April during Chinese Premier's Zhu
Ronghi's visit to the US.
After more than three hours of talks with Mr Shi
yesterday, Ms Barshefsky said the US reiterated its hope
of bringing China into the 134-member trade body on
"commercially meaningful terms".
"Minister Shi and I agreed to work jointly to resolve
outstanding issues as soon as possible, recognising,
however, that these issues that are outstanding must be
resolved on a mutually satisfactory basis," Ms Barshefsky
said.
A recent study by the US International Trade Commission
found that, if implemented, the concessions in China's
current offer would see growth of 14 per cent in China's
imports, 12 per cent growth in exports and provide a 4 per
cent boost to China's GDP.
Australia's Trade Minister, Mr Mark Vaile, who met his
Chinese counterpart on Wednesday, said yesterday the
Chinese were "desperately keen" to complete the
negotiations as soon as possible.
This follows the recent release of figures that show
foreign investment in China dropped by 10 per cent in the
first seven months of this year.
Contracted foreign investment, seen as a key indicator of
future inflows, fell 20.5 per cent in the first seven months
of 1999.
Canberra sources have been privately critical of the failure
of the US to accept China's offer in April. Canberra
agreed to terms with China during former trade minister
Mr Tim Fischer's visit to Beijing in mid-May.
Washington-based trade experts have blamed domestic
political considerations, rather than the quality of the
proposal, for President Clinton's rejection of the offer.
In a recent study, Mr Daniel Rosen of the Institute of
International Economics, said implementation of China's
concessions would spur an increase in exports of $US 21.3
billion, including more than $3 billion from the US alone.
"The US must recognise its own clear interest in Chinese
accession. In light of these interests, the three remaining
demands indefinite protection for US textiles and apparel
producers, indefinite extension of non-market economy
status for dumping actions, and indefinite application of a
less liberal import surge protection mechanism look
particularly foolish," Mr Rosen said.
Mr Daley said yesterday some improvements to the April
package would be necessary in order to appease US
lawmakers.
"In order for it to pass Congress, it has to be the right
deal," he said.
Congress will not formally ratify China's WTO entry, but
will need to amend the 1974 Trade Act to grant Beijing
permanent most-favoured-nation status, which it now
enjoys only after an annual presidential waiver.
afr.com.au
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