The Daily Yomiuri / Yomiuri Shimbun
The U.S. Congress likely will reconsider a plan to grant permanent most-favored-nation (MFN) trade status to China if the country does not join the World Trade Organization by June, trade sources in Tokyo said Tuesday.
The U.S. Congress has increased criticism of China in recent weeks over its use of force against members of the Falun Gong spiritual sect. If the United States decides to reconsider the China MFN issue, it is likely to take a hard-line approach that would cause tension in its relationship with China, the sources said.
In October, former U.S. President Bill Clinton signed into law a bill granting China permanent MFN status. The signing signaled a major change from previous regulations, under which China had to follow procedures to renew its WTO trade status every year. However, the new law will only come into effect if China joins the WTO.
Regarding China's entry into the WTO, U.S. and Chinese officials disagreed during multilateral talks held in Geneva in January whether China should receive considerable amounts in farm subsidies currently granted by the WTO to developing countries.
Because China has yet to offer a concession on the subsidies issue on the grounds that it wishes to protect its farmers, an agreement may not be reached in further talks scheduled to resume in March, the sources said. In that case, its entry into the WTO would be further delayed, they added.
According to a report published Monday in a major Chinese business newspaper, China's Foreign Trade and Economic Cooperation Minister Shi Guang Sheng, who is in charge of the country's WTO entry negotiations, said China is likely to join the organization in October or November at the earliest.
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