(Washington, D.C.)—A series of state impact studies released today by The Business Roundtable (BRT) shows that the market access agreement the United States signed with China will create hundreds of new and expanded export opportunities for America's workers, farmers and businesses. The BRT delivered copies of the studies to every member of Congress.

The studies, conducted by the independent Trade Partnership, examine how the agreement would impact each of the 50 states. The reports analyze business sectors, agricultural commodities and specific businesses in each state to determine how the China trade agreement will create commercial opportunities.

"America is poised to serve the Chinese market, and these reports clearly show that the opportunity is knocking," said Samuel L. Maury, President of the BRT. "The incredible thing about this deal is that we give up nothing, the Chinese already have access to U.S. markets. This deal is a winner for America that will create countless new opportunities. Congress should pass the legislation needed to make this a reality."

Last November, the United States reached a landmark trade agreement with China. For the United States to fully realize the benefits of the agreement, Congress must pass legislation that would create Permanent Normal Trade Relations (PNTR) status for China. Current U.S. law requires that China's status be renewed each year.

The agreement lowers average industrial tariffs from 24.6 percent to 9.4 percent and eliminates a host of agricultural product barriers—from high tariffs to unfair sanitary restrictions. The reports specifically name companies that could benefit from new and increased access to China's marketplace—the world’s largest with over 1.3 billion people. Examples include:

• A $90 billion market for chemicals and related products benefiting Highside Chemicals, Inc. (MS), Worthen Industries, Inc. (NH) and GEO Specialty Chemicals, Inc. (PA).

• Demand for more than one-third of new sales worldwide for automobiles and other vehicles, benefiting Engelhard Corporation (NJ) and Paccar, Inc. (WA).

• China’s demand for agricultural products could mean $500 million a year in beef exports, a major share of which would go to cattle producers like Excel (NE).

• Reduced tariffs for seafood and fish would benefit Pacific Seafood Group (OR) and Trident Seafood Corp. (WA). Neptune Trading (RI) may realize $1 million to $3 million in such exports.

• Growth in the Chinese market for high-technology and telecommunications equipment would benefit America Online, Inc. (VA).

• Liberalized investment restrictions would help oil and gas exploration companies like XCL, Ltd. (LA), Kerr-McGee Corporation (OK) and Enron Oil & Gas Company and Digital Gas, Inc. (TX).

• Increased protection of intellectual property rights would help software firm Mechanical Dynamics, Inc. (MI) and Universal Music Group (TN), a maker of compact discs and related musical products.

"The United States has just four percent of the world's population—so it's easy to see that 96 percent of our potential customer base lives outside our borders. We can compete with anyone if the playing field is level. That's what the China trade agreement does. It makes China play by the rules and gives America access to a market that encompasses over 20 percent of the world's population. Congress cannot pass this legislation soon enough," Maury added.

An executive summary of the state summaries is available here.

# # #

Return to top