For Immediate Release

May 24, 2000

Remarks of Congressman Norm Dicks On
Permanent Normal Trade Relations for China

WASHINGTON, D.C. – Mr. Speaker: Extending permanent normal trade relations to China and supporting its accession to the World Trade Organization greatly benefits the United States. By encouraging participation in international organizations that facilitate the rule of law, I believe that this agreement is also in the best interest of the Chinese people.

By approving PNTR, we will be enabling the United States to take advantage of the across-the-board reductions in tariff barriers that we negotiated as terms for our approval of China’s accession to the World Trade Organization. Agricultural tariffs will be substantially reduced on several priority products, including a 66 percent cut on the tariff for apples, that will obviously have a large impact on my State of Washington and other apple producing areas of our country. China also agreed to lift its longstanding ban on the import of wheat and to increase the quota by more than 400 percent. China agreed to participate in the Information Technology Agreement and to eliminate tariffs on products such as software, computers, and semiconductors. Also China agreed to slash tariffs on industrial goods by an average of 62 percent, enabling America’s manufactures to compete much more evenly in the Chinese marketplace. The WTO accession agreement also contains provisions that will help other industries in which the U.S. is a world leader – telecommunications, insurance and banking just to name a few.

The approval last week of a market access agreement between China and the European Union further adds to the benefits we will enjoy with China’s accession to the WTO, as the best terms of each agreement negotiated by the Chinese must be extended to all members of the WTO. More agricultural tariffs will be cut, including those on wheat gluten and Washington wines. Several more tariffs on industrial goods will also be reduced, liberalization of the telecommunications industry will be accelerated, and U.S. law firms will be authorized to offer legal services in China.

In return, we do not have to change anything – not one tariff, nor one regulation currently enforced by the United States. All we must do, according to WTO rules, is to extend permanent normal trade relations to China. Those of my colleagues that argue that our record trade deficit with China is a reason to oppose this bill must consider this point. There is nothing about this bill that will lead to an increase in the amount of goods we import from China; rather, this is all about slashing Chinese tariffs against U.S. goods which will lead to a substantial increase in U.S. exports to China. If you are truly concerned about addressing the U.S. trade deficit, you should vote for this bill.

Some are opposing this bill, claiming that China has rarely adhered to prior trade agreements in the past. In my judgment, opponents claiming this point should be eager to support this agreement. By entering the WTO, China will finally be participating in an organization whose sole purpose to enforce trade agreements. A few years ago, we had to beg, cajole, and plead with China in order to persuade them to provide any enforcement of the intellectual property agreement established between our two countries. With accession to the WTO, we will have an impartial adjudicator to hear the case and determine what redress is warranted. No longer will we have to rely on the honesty and effectiveness of the Chinese government to ensure that they abide by trade agreements.

My good friends in the labor community have expressed grave concerns over the effects this bill will have on American and Chinese workers. I deeply respect their concerns, but I believe that they are best addressed by voting for this bill.

Currently, U.S. manufacturers and service providers struggle to enter the Chinese market because of high tariffs and often insurmountable red tape. By agreeing to cut their tariffs and reduce burdensome rules, China will be creating an incredible opportunity for American-made goods to finally penetrate their market. I firmly believe that this will be a real job creator in the United States, and ultimately of great benefit to U.S. workers. For this reason, the 27,000 member International Association of Machinists and Aerospace Workers Local 751 in Western Washington endorsed this legislation.

I cannot claim that the benefit to the Chinese worker will be as quick or as quantifiable as are the gains to American workers, but I do believe that accession to the WTO is in the best, long-term interest of the Chinese worker. This agreement will contribute to what we are already seeing in many parts of China – the growth of economic freedom and a vibrant middle class.

I also respect the convictions of those who consistently oppose any engagement with China because of China’s disappointing record on human rights and religious freedoms. However, I side with many who, like the Dalai Lama and dissidents Bao Tong and Dai Qing, recognize that engaging the Chinese and bringing them into international organizations that support the rule of law will be more effective in promoting freedom in China than will isolating China from the world community.

In my judgment, the most important reason to support this bill and Chinese accession into the WTO is for our own national security. By voting against this bill, we would be encouraging the isolation of China from the international community and hostility toward the United States. History shows that isolating a nation in this fashion often leads to mistrust, military buildup, and conflict. A belligerent China, possessing nuclear weapons and the largest land army in the world would be a frightening prospect.

Conversely, I believe that maintaining our trade link with China will continue to provide us with a stable foundation from which we can work with the Chinese toward openness, freedom, and democracy.

It is no small point that our closest allies in the region all support China’s accession to the WTO. Indeed, Taiwan, our ally with the most at stake with regard to our relationship with China, fully supports the extension of PNTR to China and its accession into the WTO and will accede to that body at the same time.

I do not believe that we should relax our guard against China, nor should we cease to confront the Chinese government on issues where we believe they must improve: human rights, labor rights, the environment. We should use a stern hand when necessary, but I believe it is best to work with them as partners rather than oppose each other as adversaries.

Mr. Speaker: This is the most important trade vote many of us will cast this session, and perhaps in our careers in the House. Many issues critical to our nation’s future in this 21st century are at stake today. I strongly urge my colleagues to support this bill; oppose the Motion to Recommit, and to support continuing a constructive policy of engagement with China.

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