Commerce Secretary William Daley Feb. 3 said that the Clinton administration will be asking Congress for more funds to assure compliance with trade agreements, including the World Trade Organization accession pact with China.
Daley, who spoke at Catholic University's Columbus School of Law, said that the new resources would beef up enforcement of trade laws and trade pacts. While the new initiative is not limited to China, Daley expressed the hope that it would allay concerns that China might not live up to new WTO commitments.
Last November, U.S. Trade Representative Charlene Barshefsky and Chinese Trade Minister Shi Guangsheng signed a bilateral agreement paving the way for China's WTO accession.
Daley, who played a pivotal role in shepherding the controversial North American Free Trade Agreement through Congress, is President Clinton's point man on securing permanent normal trade relations for China. Extension of unconditional NTR, formerly known as most-favored-nation status, is a prerequisite for countries to enjoy the reciprocal benefits of WTO membership.
China's NTR status is currently subject to annual review under the Jackson-Vanik provisions of the 1974 Trade Act. The annual review is used by members of Congress to debate China's record on human rights and nuclear nonproliferation, among other issues.
Daley said that timing is a critical factor on China's permanent NTR vote. "We don't control the process," he remarked, noting that China is still in the process of concluding bilateral negotiations with other trading partners, including the European Union. Multilateral efforts to bring China into the WTO are also underway, he said. Every day that passes makes it more difficult politically to pass NTR, Daley said. He told reporters after his speech that the completion of an EU accession deal would be a major step forward.
Organized labor has vowed to mount an all out effort to block extension of permanent NTR to China. The November presidential elections, in which the Democratic party is counting on support from organized labor, are viewed as a complicating factor.
The "politics in an election year will make it very difficult to pull this off," Daley remarked. However, with the support of both U.S. business and the international community, Daley added that the vote was "absolutely" winnable.
By Rossella Brevetti
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