Reuters
WASHINGTON (Reuters) - U.S. business groups have urged the Bush administration not to cut funding for programs to ensure that China and other trading partners honor their trade agreements, an industry official told Reuters on Wednesday.
Frank Vargo, vice president at the National Association of Manufacturers (NAM), said industry groups were alarmed by reports that the administration would recommend cutting the programs when it presents its budget plans to Congress next week.
"The compliance budget is very important to us, particularly so because of China," said Vargo.
Last year Congress beefed up funding for trade monitoring and compliance programs to give the Commerce Department and U.S. Trade Representative's office more resources to make sure China meets its commitments to reduce import barriers once it becomes a member of the World Trade Organization.
In a letter to White House budget director Mitchell Daniels on Friday, the NAM and five other business groups said maintaining increased funding for the programs was vital to "rebuilding (congressional) support for further trade liberalization."
During the 2000 debate on extending permanent normal trade relations to China, many members of Congress expressed concern that Beijing would not follow through on its commitments to slash tariffs and adopt other market-opening reforms.
The NAM plans to establish its own compliance and monitoring committee, "but it will do no good if there's no one (at Commerce or USTR) to pick up the phone," said Vargo.
China is in the final stages of negotiations on joining the WTO and is expected to become a member this year.:
