By Adam Entous
WASHINGTON (Reuters) - The White House probably does not have the votes in Congress right now to grant China permanent trading privileges in the U.S. market, a senior Clinton administration official conceded on Thursday.
But Commerce Secretary William Daley, who was picked by President Clinton to lead the lobbying effort on Capitol Hill, said he was hoping the White House and its allies in the business community can round up enough votes by June.
Daley's comments underscored the uphill battle facing the White House one day after Clinton submitted the trade legislation, which would ensure U.S. companies benefit from a landmark trade agreement opening China's vast marketplace, potentially the world's largest with 1.3 billion consumers.
"(We) probably don't have the votes right now," Daley told reporters after urging business executives to support the pact. "Members (of Congress) are still trying to grapple with this, they're still wondering whether it's going to happen ... It's very fluid."
Clinton is pressing for passage of the legislation before May 29 when Congress leaves for its weeklong Memorial Day recess. The White House fears further delay could bog it down in politics before the November U.S. elections.
"This battle will be over, one way or the other, by Memorial Day," Daley said.
The trade agreement calls for China to open a wide range of markets, from agriculture to telecommunications.
The deal, negotiated in 1999, is a crucial piece of China's application to join the World Trade Organization, though Beijing must still complete talks with the European Union and other WTO members to enter the Geneva-based body.
In exchange for market-opening by China, Clinton says the Republican-led Congress must grant the country permanent normal trade relations, a status Beijing now gets only after an annual congressional review.
Permanent-NTR legislation, submitted by Clinton on Wednesday, would guarantee Chinese goods the same low-tariff access to U.S. markets as products from nearly every other nation.
The White House was pressing for a swift vote in the Senate, hoping to score an early victory that would put pressure on a bitterly divided House of Representatives.
Most senators support the initiative, but it faced opposition in the House from labor unions and their Democratic allies. According to House Democratic Whip David Bonior of Michigan, two out of three Democrats will oppose the agreement.
Labor unions demanded Beijing improve human rights and labor standards before joining the WTO, which sets global trading rules.
Daley questioned Bonior's vote count. "I don't think anybody has votes in their pocket," Daley said. "My guess is that if a vote is called, we'll all be sweating.":
