By Adam Entous
WASHINGTON (Reuters) - The White House warned on Thursday there was little chance of passing permanent trading benefits for China without legislation setting up a watchdog commission to monitor Beijing's human rights.
"Without that, the possibilities of this passing are slim-to-none in my opinion," said Commerce Secretary William Daley, President Clinton's point man in the fight for congressional passage for permanent normal trade relations (PNTR) for China.
On Tuesday, Democratic Rep. Sander Levin of Michigan and Republican Rep. Doug Bereuter of Nebraska proposed legislation to set up a commission that would review Chinese policies and could recommend sanctions against Beijing as long as they were consistent with World Trade Organization (WTO) rules.
The White House sees the proposal as a way of reaching out to Democrats in the House of Representatives who want a forum to air their concerns about human rights and labor abuses in China in exchange for supporting the market-opening pact.
"It is not just cover. It is real. It's serious. It is important to broaden the base of support," Daley said on the Levin-Bereuter plan.
The House Republican leadership has demanded that the White House deliver 85 to 90 Democratic votes in favor of PNTR. But Daley said that would be "very, very, very tough."
He said the House vote, scheduled for the week of May 21, was too close to call. "It is a difficult battle," Daley told lawmakers and analysts at forum on the trade bill.
The trade agreement, announced in November 1999, calls on Beijing to open a wide range of markets, from agriculture to telecommunications.
In exchange, the White House says, Congress must grant China permanent normal trade relations -- a status it now enjoys only after an annual congressional review. PNTR would guarantee Chinese goods the same low-tariff access to U.S. markets as products from nearly every other nation.
Under the Levin-Bereuter plan, Congress would create a special "congressional-executive commission" that could investigate Chinese human rights abuses, analyze U.S. security concerns and issue recommendations to lawmakers.
Aides said those recommendations could include sanctions consistent with WTO rules, such as a cessation of U.S. Export-Import Bank and U.S. Overseas Private Investment Corp. support to China. Congress could also direct the president to oppose new loans to China from the World Bank and the International Monetary Fund.
Levin's proposal would also include strengthened safeguards against import surges and call for the WTO to review China's compliance with the pact on an annual basis. It would also urge the WTO to admit Taiwan immediately after China.:
