Outside Influences Chinese leaders are failing to follow through on a major agricultural trade agreement--a critical misstep that could hamper efforts to convince Congress to grant China permanent normal trading relations status, according to top lobbyists working the issue. By not making new food purchases and by being slow to finalize agreements with individual U.S. producers, the Chinese are blowing an opportunity to show Congress the tangible benefits of trade deals, these lobbyists say. And by neglecting to comply with the deal by taking legal measures within China that would spur importers to buy U.S. goods, the Chinese are calling into question their willingness to uphold trade agreements, charged the National Pork Producers Council's international trade counsel, Nick Giordano.
The Agricultural Cooperation Agreement was negotiated last spring and formally signed in December during the World Trade Organization ministerial in Seattle. It established that each country's sanitary and phytosanitary standards for meat, wheat and citrus products imported from the other must be scientifically based, an agreement that U.S. officials believe will prevent China from arbitrarily rejecting U.S. exports. Giordano co-chairs an alliance of agricultural groups seeking to drum up farm state member backing for PNTR. He indicated that Chinese footdragging is weakening the case he and other lobbyists can make that Congress should pass PNTR, which would effectively ratify the U.S.-China accord on the latter's entry into the WTO. "This is a critically important matter," Giordano told Outside Influences. "Either the Chinese think they have the votes, or the right person in China hasn't heard about this." Clearly exasperated, Giordano said he had so far refrained from openly discussing the matter, but that he now had decided to try to give the Chinese the message that time is running out for them to curry congressional favor by cinching some food deals. Another top trade lobbyist agreed that China should start buying products. "We told them, `We've had discussions, now let's get some orders,'" this lobbyist said. This source suggested that showing trade accords lead to actual trade is a desirable--and perhaps indispensable--tool for corralling PNTR votes. However, he said that it is "conceivable" that most agricultural members would be "on board anyway without specific orders placed by the spring." Despite the lack of actual purchases, he argued that China was basically complying with the agreement. But another lobbyist argued that even if China was in violation, it could be turned into an argument for subjecting the Chinese to WTO rules. However, Giordano said the Chinese "need to implement" the agreement by publishing it in China and making Chinese importers aware that they can bring in U.S. products. Congress is likely to vote on PNTR by early summer, leaving China scant opportunity to rebut accusations that it violates trade agreements--a longstanding criticism that predates the agricultural accord. Many PNTR opponents question China's behavior on trade and human rights, and its conduct toward other countries. Such opposition may have been fortified by reports that China is threatening to attack Taiwan if reunification talks proceed too slowly--making proof of trustworthiness on trade even more critical. Earlier this month, 53 senators signed a letter to Chinese President Jiang Zemin urging China to start buying products covered by the food accord. "We want to stress ... how important it is that actual sales of wheat, meat and citrus take place as soon as possible," the senators wrote. This would "provide a solid contribution to the efforts to ensure the passage of" PNTR. China this week will have a key opportunity to signal its intentions. Today, a high-level Chinese agricultural delegation will arrive in Montana for a two-day visit to discuss possible wheat purchases. The Chinese will meet with Sen. Max Baucus, D-Mont., and other state and business officials. "Purchase of this wheat will serve as a good faith gesture that will indicate they are serious about trade agreements," said Michael Siegel, Baucus' spokesman. It may help persuade "members sitting on the fence" to back PNTR by demonstrating "tangible" economic benefits, he predicted. Baucus, who is spearheading the fight for passage of PNTR, has informed the Chinese leadership that Congress will be monitoring its behavior during the run-up to the PNTR vote. In December, he traveled to China to meet with Premier Zhu Rongji--pressuring the Chinese leader on wheat purchases and telling Zhu that China must "refrain from actions that would create a sense of destabilization in the area," Siegel said. Siegel cautioned, however, that the wheat discussions were "a work in progress," although Baucus expects a deal eventually. One lobbyist familiar with the issue noted that China last year had a bumper wheat crop and may not need any U.S. grain. Nevertheless, "that doesn't preclude that they will make a political decision to make a fairly substantial order in support of PNTR," he added. -- By Keith Koffler:
