WASHINGTON, March 2 (Reuters) - The Clinton administration on Thursday urged lawmakers to reject legislation calling for the United States to withdraw from the World Trade Organization (WTO), saying it would put the U.S. economy at risk.
"Withdrawal is unthinkable," U.S. Trade Representative Charlene Barshefsky said after submitting a report to Congress that clears the way for a vote on U.S. membership in the Geneva-based body that sets global trading rules.
Under congressional rules, every five years any lawmaker can introduce a resolution that would, if it passed, call for the United States to give up its membership in the WTO.
It is unclear who would sponsor the legislation this year, but a vote is widely expected in the next few months. Congressional rules require a vote within 90 legislative days.
House leaders say few lawmakers want the United States to leave the WTO outright, but nonetheless they expect a heated debate over the resolution.
"It will be a forum for good discussion and then it will lose," said Rep. Sander Levin, the ranking Democrat on the House of Representatives Ways and Means subcommittee on trade.
Tom Mahr, legislative director for Sen. Kent Conrad, a North Dakota Democrat, said it would be a close vote.
"Some members of Congress who are looking for political cover on a tough China vote may decide to vote against continued participation in the WTO," he said.
In addition to U.S. membership in the WTO, Congress is expected to vote on legislation that would grant China permanent trading privileges in the U.S. market.
WTO OPPOSITION GROWS
Many lawmakers are critical of the WTO following the collapse of global trade talks in Seattle last year, and say the organization has done little to settle heated transatlantic disputes over bananas and beef.
Congressional opposition to the WTO picked up pace last week after it ruled against the U.S. Foreign Sales Corporations (FSC), a tax scheme that benefits major U.S. companies.
According to trade officials, the scheme would provide U.S. companies with an estimated $4.1 billion in tax breaks in 2001 and up to $25 billion in relief over the next five years.
"In my opinion, this is strike four against the WTO," Senate Majority Leader Trent Lott of Mississippi said of the FSC decision.
"They ruled in U.S. favor on bananas, but haven't been able to enforce. They have not really been able to get the European Union to deal responsibly with the beef sales question. ... I am not impressed with what the WTO has done so far," Lott added.
In its report to Congress, the White House defended the WTO, saying it has guaranteed American companies access to markets worldwide and has increased global stability.
Although the WTO ruled that the FSC violated international trade rules, Barshefsky said the United States has prevailed in 23 of the 25 cases before the organization.
"There is no substitute for the confidence and credibility the WTO offers the world as trade grows," Barshefsky said.
But she conceded that it may be difficult to convince some lawmakers.
"You have many members of Congress proud of the fact that they never held a passport. That's a little bit like being proud of the fact you don't read a book," she said.:
