[News from Congressman John M. McHugh]
 
FOR IMMEDIATE RELEASE 
May 23, 2000
Contact: Dana Johnson
 
REP. McHUGH SAYS TRADE WITH CHINA IS VITAL TO NEW YORK FARMERS
Congressman Says New Opportunities Outweigh Potential Downside
 
WASHINGTON — After more than four months of study, meetings, and discussion, Rep. John M. McHugh (R-NY) announced his intention to vote to extend Permanent Normal Trade Relations (PNTR) to China when the matter is brought before the House of Representatives later this week.

Rep. McHugh noted the powerful arguments made by both the supporters and opponents of PNTR and the divisiveness of the issue.  He said, "In my nearly 30 years of public service, I have rarely seen an issue that so deeply divides good people who share a common objective: the desire to adopt a policy that enhances opportunity for American workers while promoting the Chinese peoples' struggle for basic human rights and liberty.  This vote is not a clear question of right and wrong.  Instead, the challenge before me has been to identify and support the one initiative that represents the better opportunity to achieve those two worthy goals."

"If approved, PNTR will not provide China with a single benefit it does not currently possess and the status quo is far more dangerous to the American worker.  A look at the facts surrounding the operation of General Motors is a case in point.  In its desire to reach hundreds of millions of potential Chinese customers, GM opened one of the world's most modern production facilities in Shanghai.  Given the high tariff China currently assessed against the import of any American-produced auto product, relocation was a highly attractive option.  With PNTR, however, those conditions would dramatically change.  Tariffs on American auto imports would be dramatically slashed.  Equally important, the current requirement that certain portions of all auto parts must be manufactured in China itself, and that a sizeable number of vehicles manufactured in that country must also be reimported into American markets, will be totally eliminated," Rep. McHugh said. 

These proposed changes may not result in an explosion of new opportunities in important facilities like Massena's Central Foundry.  It is clear, however, that the current conditions, if allowed to continue, cannot be the better choice.  Without granting Chinese-based manufacturing a single additional advantage, American auto workers will at least have a fighting chance.

"Perhaps most important to the people of the 24th Congressional District is the trade pact's impact on a host of agricultural products, including our region's vital dairy industry.  A rejection of PNTR would represent yet another devastating loss of hope and opportunity to our hard-pressed farmers.  Simply put, milk product exports help every dairy producer in the country receive a better price for their milk and provide a ray of hope for the future.  The United States already produces approximately one-fifth of China's dairy imports and is well-positioned to take advantage of any increase resulting from the pact.  For these reasons alone, the argument to support PNTR is compelling.  To say no would be to say to every man, woman, and child on every farm in our region that they don't matter and I don't care.  I have too much respect for them, and I understand all too well their struggle to deliver such a cruel message.  In the past, I have opposed trade agreements that I believed put other hard-working citizens at risk even when agriculture might have benefitted.  On this vote, I feel I must act in the interests of those who give us so much and ask so little."

The House of Representatives is scheduled to consider the bill to grant PNTR to China on Wednesday or Thursday.  The measure must also pass the Senate before it is sent to the White House.  The Clinton Administration has been urging adoption of the legislation.  If passed by both Houses of Congress, the President is expected to quickly sign the bill into law.

 
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