Time ticking for China, WTO - World Trade Organization

Business Asia, May 31, 1999 by Randolph Ramsay

China must join the World Trade Organisation (WTO) in 1999 or risk being left out of international trade agreements for several more years, according to Hong Kong's director general of trade Mr Alan Lai.

Mr Lai, who was in Sydney this month, said next week would be a crucial point in negotiations for China's accession into the WTO, with the United States scheduled to make a decision on whether to give China permanent normal trade relations (NTR) status.

"As I see it, China will not agree to a seat on the WTO if China does not get permanent NTR from the US. I think it's part and parcel of the agreement," he said.

"So it's crucial for the two parties (China and the US) to conclude negotiations by the end of this month.

"According to informed sources, they have agreed on more than 90 per cent of issues, but whether they can get over the remaining 10 per cent is anyone's guess."

Mr Lai said it was important that China be a member of the WTO before the organisation held ministerial meetings at the end of the year.

"We believe that at the ministerial meeting a new round of multilateral trade negotiations will be launched," he said. "If China is not a member, that means China will not be able to participate in discussions on new trading rules, new trading regulations and new agreements governing international trade."

Mr Lai said Hong Kong would welcome China's accession into the WTO because it held many flow-on opportunities for Hong Kong businesses.

He said Hong Kong's status as a "gateway" to mainland China would not be threatened.

"We have the knowledge, we have the language, we have the cultural links and we have the connections to remain as the gateway to China," he said.

Mr Lai, who was in New Zealand recently at an Asia Pacific Economic Co-Operation (APEC) meeting, believes this year's APEC summit in New Zealand will focus on trade facilitation measures within the region.

"We believe that the greatest benefit to businesses would be the simplification of procedures and the standardisation of systems in the region.

"Last year, a lot of time was spent talking about the economic turmoil," he suggested.

"But I suspect this year it will go back to more traditional issues such as trade liberalisation."

Mr Lai was also optimistic about Hong Kong's economy, saying the recession had bottomed out.