Chinese minister hints China may join WTO without NTR status

Asian Economic News, March 20, 2000

BEIJING, March 13 Kyodo

China could join the World Trade Organization (WTO) this year even if the U.S. Congress rejects a bill that would grant Beijing permanent normal trade relations (NTR) with Washington, China's top trade official suggested Monday.

Foreign Trade and Economic Cooperation Minister Shi Guangsheng said a two-thirds majority vote among the WTO's 135 members would determine whether China will accede to the global trade body.

"As to whether China can accede to the WTO, after China completes its bilateral negotiations, it will be up to the WTO members to see whether we will have two-thirds of the yes vote at the multilateral level," Shi told a news conference.

"Permanent NTR is an issue affecting the implementation of a Sino-U.S. bilateral agreement," Shi said, hinting that China is willing to enter the organization without Washington's blessing.

Shi's comments were consistent with remarks made by WTO Director General Mike Moore in Beijing last month. Moore said China could enter the WTO even if Congress rejects permanent NTR status.

NTR is also known as most-favored-nation (MFN) status.

China and the United States reached a comprehensive agreement on China's WTO accession in November last year, prompting many other trading partners to follow suit.

However, the U.S. Congress must change a law, dating from the Cold War, requiring annual approval by Congress of normal trade relations with communist countries.

Permanent NTR status would guarantee Chinese goods the same low-tariff access to U.S. markets as products from nearly every other nation.

Shi also said that competitors of the U.S. would profit tremendously if Congress rejects permanent NTR status.

"If the United States misses this opportunity it will lose the tremendous China market, and will be giving away a big opportunity for participating in this market to its competitors.

"In that case, the United States, especially U.S. enterprises, will suffer the most," Shi said.

Last Thursday, U.S. Commerce Secretary William Daley conceded the administration probably did not have enough votes at present to pass permanent NTR through the House of Representatives, although Senate approval seemed likely.

Beijing regards the U.S. Congress' approval of the November agreement, without modification, as nonnegotiable. "It is a commitment made by the U.S. side," Shi said.