This week Congress faces a vote on Permanent Normal Trade Relations (PNTR) for China – a vote that could protect the future of American workers and farmers and encourage the growth of economic freedom in China. I held off making a decision about PNTR until I had all the facts and had carefully studied the agreement. I have listened to the views and concerns of many workers, farmers, and businesses throughout the First District. And I’ve questioned those who negotiated the U.S.–China trade deal.
Whether Congress approves PNTR or not, China will join the World Trade Organization (WTO) either way. When it does, each of the 134 other countries in the WTO will benefit from concessions the U.S. negotiated to open China’s markets. If Congress does not grant PNTR, the U.S. will be the only one left out, giving our competitors in other countries a very unfair advantage.
As I reviewed the agreement that is the foundation for PNTR, I had four main questions: is PNTR good for keeping and growing jobs in the U.S.; does it add strong trade protections and enforcement measures; does it advance human rights; and is it better than the status quo?
The answers I received to these questions have convinced me that PNTR will benefit those of us who live and work in southern Wisconsin.
The U.S. will be able to export products without exporting jobs. This agreement is a one-way street. It requires China to open its markets - one fifth of the world’s population - to American products and services. Meanwhile, China’s access to U.S. markets remains exactly the same as it is now.
Relocation of American jobs is more likely today than it would be under the PNTR agreement. Today, China makes importers sell products through the Chinese government, use Chinese parts in manufacturing, and transfer valuable technology. And China imposes high tariffs (100 % for autos.) Because of these trade barriers, which exist to protect unproductive Chinese industries, American companies must relocate entire factories to China to sell goods to Chinese citizens. With PNTR, U.S. companies – for the first time – will be able to sell American-made products inside China without having to relocate manufacturing facilities and jobs there.
The U.S.-China agreement would cut industrial tariffs by 62% to an average rate of 9.4% and eliminate all import quotas by 2005. Since 80% of US exports to China are manufactured products, this is important for the industries of southeastern Wisconsin.
It also offers huge benefits for American farmers. It locks in and expands
U.S. access to a market of over one billion people whose arable land makes
up only about one-fifth of their nation. This is not nearly enough
capacity to feed China’s growing population. Under the agreement,
China will cut agriculture tariffs by more than half on priority products
and will decrease tariffs even further for products such as beef, poultry,
pork and cheese. If we do not grant our farmers this access, our foreign
competitors will take these markets from us.
With passage of PNTR, the US will have stronger trade protections. PNTR ensures that the U.S. can act quickly in case of a glut of imported goods from China. And after entering the WTO, China will be subject to the enforcement of all 135 members, making it tougher for China to disobey trade agreements and standard practices. Moreover, the administration is assembling the largest monitoring and enforcement effort for any trade agreement ever.
Our current bilateral leverage with China has not worked. In the past, China would simply disregard our retaliatory efforts and trade with someone else. Now, with new multi-lateral enforcement, we can make sure all countries retaliate against China if they disobey our laws. Combined with the tough new trade enforcement laws under PNTR, China will have no choice but to play by U.S. and international trade rules.
Engagement does not mean endorsement. PNTR does not mean ignoring the Chinese government’s abuses of human rights and freedoms. In fact, denying PNTR would probably set back reforms, by strengthening the grip of the Communist government over its people.
Although religious groups in China remain repressed, they were practically non-existent twenty years ago. In recent years, many missionaries working in China have asked that Congress not cut off trade relations, as this would endanger their status. This is why most dissidents and religious missions are in favor of PNTR.
Bipartisan legislation that will accompany PNTR will establish an independent commission to conduct a yearly review of China’s human rights record. I am a strong supporter of this legislation.
Engagement is not a panacea, but it is a positive step. Remember, it is China that is opening itself to the U.S. The U.S. is already open. Taking advantage of China’s concessions will enable America to exert a stronger positive influence on Chinese society. Denying China PNTR will slow the process of economic and, ultimately, democratic reform.
Congress should approve PNTR because it will advance economic and political freedom in China – while at the same time securing America’s involvement in China’s markets and securing more jobs at home.