Copyright 2000 Federal News Service, Inc.
Federal News Service
February 16, 2000, Wednesday
SECTION: PREPARED TESTIMONY
LENGTH: 739 words
HEADLINE:
PREPARED TESTIMONY OF CONGRESSMAN GREG WALDEN
BEFORE THE
HOUSE COMMITTEE ON WAYS AND MEANS
BODY:
Thank you Chairman Archer and members
of the committee for affording me the opportunity to speak here today on the
significance of the bilateral trade agreement reached last year with China. I
appreciate the opportunity to discuss significant gains for the U.S. under this
agreement, as well as what China's accession into the World Trade Organization
(WTO) would mean for the state of Oregon.
Poised on the Pacific Ocean,
and bordered by the Columbia River, Oregon has long been a gateway for trade
with Asia. Oregonians are savvy and experienced traders who see the potential
for trade with our friends across the Pacific Ocean as an opportunity to share
with them the quality products that we design, produce and grow. Trade
agreements, such as the bilateral agreement signed with China, are critical to
their success in the burgeoning world marketplace. The bilateral agreement
negotiated last year between the U.S. and China made great strides toward
improving trade between our two countries and sets the stage for China's
accession into the WTO. I applaud the agreement that was made with China during
these negotiations to drop their sanitary and phytosanitary barbers on Pacific
Northwest wheat. For 26 years China kept wheat from the Pacific Northwest out of
their country by the use of sanitary and phytosanitary barriers. The wheat
farmers in my district, and throughout the Pacific Northwest, pride themselves
on their high quality wheat, and applaud China's lifting of these unfair
barriers.
The market access agreement negotiated by the U.S. and China
further benefits our farmers and ranchers by slashing China's overall tariff on
agricultural products to 17.5%, with further reductions to many specific
commodities upon China's accession into the WTO. It establishes a Tariff Rate
Quota for many bulk commodities, such as wheat, which guarantees low tariff
access for specified quantities. Under this agreement China further agreed to
eliminate direct export subsidies for their agricultural products, leveling the
playing field for U.S. agricultural producers.
Farmers and ranchers in
Oregon understand the vast potential of China's market. The Oregon Potato
Commission estimates that they could see a reduction in the tariff on frozen
french fries from 25% to 13% should China be admitted into the WTO. The
Commission further projects exports of U.S. frozen french fries to grow
exponentially under the 13% tariff-rate, and indicate that they could exceed
250,000 metric tons by 2005. This is an amazing figure when compared with 15,000
metric tons exported in 1997.The market access agreement is also important to
the many businesses that help fuel Oregon's economy. With high technology
exports accounting for 41% of Oregon's trade with China in 1998, it is
encouraging to see tariffs on products such as computers, semiconductors, and
all internet-related equipment fall from an average of 13.3% to 0% by 2005 under
the market access agreement. Oregon's diverse manufacturing industry would also
be helped by the industrial tariff reduction from 24.6% in 1997 to an average of
9.4% by 2005.
Oregon's businesses are also concerned about the piracy of
their intellectual property rights in China. Piracy of American intellectual
property rights for business software and trademarks is widespread and is
costing our businesses countless dollars each year. Should China be admitted to
the WTO, Oregon's businesses will finally have a solid foundation from which
these issues can be resolved through the dispute settlement mechanisms built
into the WTO.
Currently, U.S. markets are open to China but numerous
obstacles still exist for American access to the Chinese marketplace. Congress
will have a limited chance to balance the scales and provide vast opportunities
for American enterprise when we vote to extend Permanent Normal Trade
Relations (PNTR) status to China. This is a critical time for us all.
Should we fail to bestow PNTR status on China, we will face an extreme trading
disadvantage with other countries around the world - countries who will be more
than eager to see the U.S. default on the opportunity to fill China's demand for
quality products. Let's not let this golden opportunity for the United States
slip by.
Mr. Chairman and members of the committee, thank you for the
opportunity to reiterate the significant benefits at stake in our trading
relationship with China.
END
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