(WASHINGTON, D.C.)—Saying that congressional passage of legislation to extend permanent normal trade relations (PNTR) status with China is essential for U.S. industry to increase commercial opportunities in China—the world's largest marketplace with 1.3 billion people—H. Richard Kahler, president of Caterpillar China, testified today before the Senate Commerce Committee. Kahler's testimony was delivered on behalf of The Business Roundtable (BRT).

"China’s domestic earthmoving and construction industry sector is a jumbled array of highly inefficient stated-owned enterprises," said Kahler. "[C]ompanies like Caterpillar and our major worldwide competitors are kept out by a combination of tariff and non-tariff barriers for goods and services." Without PNTR, Kahler said, "Caterpillar and other U.S. companies are forced to work within China's complex and often convoluted series of regulatory workarounds."

The landmark trade agreement that would be brought to life by passage of PNTR legislation, would unilaterally lower hundreds of barriers to the export of U.S. products and services to China. Kahler's testimony provided the committee with many examples of how improved access to China's market would benefit U.S. businesses and employees.

In response to remarks critical of China's record on human rights, environment, and labor standards, Kahler said, "my endorsement of stronger economic ties does not mean that I am an apologist for the things that are wrong with the Chinese system. I simply believe we will do more good working with China as part of the world economic system than we could by isolating and lecturing it as an outsider."

In closing, Kahler urged that the "U.S. Congress share my optimism about the future of China, about the future for U.S. business there, and about our ability to help bring some U.S. values, disciplines, and expectations to the forefront. If you share that optimism, you will support PNTR for China, because only by doing so will you create the environment in which we can do that job. Let us get on with it!"

# # #