China has yet to meet WTO requirements, says Barshefsky

Asian Economic News, April 19, 1999

WASHINGTON, April 13 Kyodo

U.S. Trade Representative Charlene Barshefsky defended President Bill Clinton's decision to leave the Chinese outside the gates of the world's trading club, saying China did not yet meet the requirements for membership. Barshefsky testified before the Senate Finance Committee that the concessions offered by Chinese Premier Zhu Rongji during his Thursday meeting with Clinton were substantial but not sufficient for accession to the World Trade Organization (WTO). "I think we have made quite significant progress, our work is not yet done. WTO accession for China will only come on the completion of a commercially meaningful market access agreement and adherence by China to all of the rules necessary to ensure that these market access commitments in fact yield market access results," she told the committee. Negotiators from both sides worked feverishly in the weeks preceding Zhu's Washington visit, heightening expectations for an end to the 13-year negotiations. The Chinese made major concessions in a number of sectors, including agriculture, for which the two nations signed an agreement Saturday. The subdeal lifts a long-standing ban on the shipment of U.S. farm products to China, including wheat and citrus. Washington was also able to get the Chinese to open insurance and banking markets, but was not happy with Chinese offers for U.S. business to provide car loans and trade securities. Barshesfky denied published reports that Clinton and Secretary of the Treasury Robert Rubin rebuffed her push with National Security Adviser Samuel Berger and Secretary of State Madeleine Albright to complete the deal during Zhu's visit. "The administration is quite unified on, first, the notion that China absolutely should be a member of the WTO. There is no question about that in the administration, from the president, obviously, who sets the policy, on down," she told Sen. John Chafee of Rhode Island. Congressional leaders have accused Clinton of being too soft on China, and recent allegations of spying and human rights crackdowns have made China's accession a political hot potato. Barshefsky said the United States would resume negotiations with the Chinese premier shortly after his return from Canada, the next stop on his trip. She repeated the administration's position that it would like to have China as a member before the close of the year. "We are committed, and the president is personally committed, that China enter the WTO this year," she said. She insisted the additional time would result in a better deal for the U.S., discounting suggestions that the Chinese would renege on previous commitments. The U.S. will host a new round of trade talks under the auspices of the WTO in November in Seattle, and if China is not admitted before the new round the bar will be raised, making it more difficult for China to join.