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105TH CONGRESS

1ST SESSION S. 1327

To grant normal trade relations status to the People’s Republic of China

on a permanent basis upon the accession of the People’s Republic of

China to the World Trade Organization.

IN THE SENATE OF THE UNITED STATES

OCTOBER 28, 1997

Mr. ROTH (for himself, Mr. HAGEL, Mr. THOMAS, Mr. KERRY, and Mr.

AKAKA) introduced the following bill; which was read twice and referred

to the Committee on Finance

A BILL

To grant normal trade relations status to the People’s Republic of China on a permanent basis upon the accession

of the People’s Republic of China to the World Trade

Organization.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. FINDINGS.

4 Congress makes the following findings:

5 (1) The People’s Republic of China is currently

6 engaged in negotiations to accede to the World

7 Trade Organization (referred to in this Act as the

8 ‘‘WTO’’).
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1 (2) In order to accede to the WTO, the People’s

2 Republic of China must agree, within the context of

3 a Working Party composed of all interested WTO

4 members, including the United States, to abide by

5 the terms of existing WTO agreements. The People’s

6 Republic of China must separately commit, in the

7 context of bilateral negotiations with individual

8 WTO members, to opening its market to the goods,

9 services, and investment of its prospective WTO

10 trading partners, including the United States.

11 (3) In the course of negotiations with the Peo12 ple’s Republic of China regarding WTO accession,

13 the United States will have the opportunity to en14 sure that the People’s Republic of China assumes

15 the obligations of all other WTO members and

16 makes specific commitments to ensure that United

17 States goods and services and investment are af18 forded market access in the People’s Republic

19 of China substantially equivalent to the access that

20 the People’s Republic of China’s goods and services

21 and investment are afforded in the United States

22 market.

23 (4) The People’s Republic of China is the

24 world’s 10th largest trading country. It is the fastest

25 growing major economy not currently subject to the
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1 obligations, disciplines, and market access commit2 ments of the WTO.

3 (5) It is in the interest of the United States to

4 secure the People’s Republic of China’s membership

5 in the WTO in order to ensure that—

6 (A) the markets of the People’s Republic

7 of China are significantly opened to United

8 States trade and investment;

9 (B) the People’s Republic of China as10 sumes the market-oriented disciplines of the

11 WTO; and

12 (C) trade disputes with the People’s Re13 public of China will be resolved within the mul14 tilateral resolution mechanisms provided by the

15 WTO.

16 (6) Opening the markets of the People’s Repub17 lic of China also represents the surest means of re18 ducing the current imbalance in United States trade

19 with the People’s Republic of China.

20 (7) Because the People’s Republic of China is

21 a nonmarket economy, it is subject to title IV of the

22 Trade Act of 1974, which permits the extension of

23 normal trade relations status for 1-year periods. Un24 less the People’s Republic of China is specifically re25 moved from the limitations of title IV of the Trade
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1 Act of 1974, the People’s Republic of China will not

2 receive unconditional most-favored-nation trade

3 treatment from the United States.

4 (8) In the absence of any reservation or deroga5 tion, the United States is obligated, under the agree6 ment establishing the WTO and agreements con7 cluded under the auspices of the WTO, to confer un8 conditional most-favored-nation trade treatment to

9 every other WTO member.

10 SEC. 2. TERMINATION OF APPLICATION OF TITLE IV OF

11 THE TRADE ACT OF 1974 TO THE PEOPLE’S

12 REPUBLIC OF CHINA UPON THE PEOPLE’S

13 REPUBLIC OF CHINA’S ACCESSION TO THE

14 WTO.

15 On the date on which the People’s Republic of China

16 becomes a member of the WTO, to the extent consistent

17 with the United States’ consent to the protocol of acces18 sion, the provisions of title IV of the Trade Act of 1974

19 shall cease to apply to that country and products of the

20 People’s Republic of China shall be afforded nondiscrim21 inatory treatment.

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