April 10, 2000        

Vote "No" on Permanent Normal Trade Relations with China

Dear Representative:

The Sierra Club urges you to vote "no" on permanent normal trade relations (NTR) with China.  Permanent NTR would terminate Congress' annual review of the US-China commercial relationship just as that relationship is entering a risky new phase.   China could eventually join the World Trade Organization (WTO) under terms of a US-China bilateral agreement concluded last November. Despite recent statements by President Clinton affirming the importance of linking environmental protection and workers rights with new commercial agreements, the US-China trade pact is bereft of any provisions whatsoever on these concerns.

By rejecting Permanent NTR, Congress would not be rejecting engagement with China.   Instead, the United States would simply retain the right to review a vital commercial relationship on an annual basis to ensure that environmental protection and labor and human rights are not left behind in the rush to increase trade.

The WTO/Permanent NTR package entails a number of environmental risks:

WTO Reform

First, once it becomes a WTO member, China could complicate -- and perhaps doom -- efforts to make the WTO more democratic and more responsive to environmental concerns.   Significant reform of the WTO will be difficult enough as it is, requiring a consensus of all 136 member countries.  Adding China to the WTO now would make the formation of such a consensus far more difficult.  As Stafor Intelligence Services recently reported, "China is already setting itself up as a leader among developing nations in countering what it perceives to be the overwhelming influence of the United States in the international organization."  Given the nature of its domestic politics, China would almost certainly use its influence to block efforts to make the WTO more democratic.

Rather than add new members to the WTO at this time, the Clinton administration should focus its energies on reform efforts.  Congress should reject Permanent NTR in order to retain leverage that might be needed to secure cooperation with China on WTO issues.

Human Rights and the Environment

Second, the WTO/Permanent NTR package could worsen, rather than improve, human rights abuses, undermining the ability of Chinese citizens to fight for workers' rights, environmental protection, and other social goals.  Some argue that, once China enters the WTO, increased trade would foster social and political freedoms by increasing access to the Internet and other advanced technologies.  Yet, increased links to the global market through the WTO could also increase incentives to stifle labor organizing, environmental activism, and other forms of citizen action in order to keep production costs low.

Chinese environmental activists are already targets of abuse.  For instance, according to the State Department's 1999 Report on China's Human Rights Practices, "[t]he China Development Union (which works for environmental and political reforms) virtually was shut down by arrests of its members during the year."  Journalist and environmentalist Dai Qing was harassed and imprisoned for speaking out against the Three Gorges Dam.  By rejecting Permanent NTR, Congress would retain leverage to encourage respect for human rights, countering pressure to abuse human rights for competitive advantage in the global market.

Endangered Species

Third, the WTO/Permanent NTR package could increase pressure on some of the world's most threatened and endangered species.  Already, smugglers have turned China into the world's largest market for black market endangered species parts.  China's illegal trade in animal parts now threatens Asian tigers, African rhinos, and North American black bears.  Increased trade flows under the WTO/Permanent NTR package would only increase opportunities to traffic in contraband animal parts.  Moreover, as a member of the WTO, China could use the WTO dispute mechanism to stymie any enforcement actions that might be brought under the Convention on Trade in Endangered Species.

Nevertheless, nothing was done in the WTO/Permanent NTR package to mitigate the increased risks to endangered wildlife.  By rejecting Permanent NTR, Congress would retain leverage to influence China to cooperate in international efforts to protect endangered species.

Regrettably, the WTO/Permanent NTR package offers new opportunities for business but fails to address impacts on working families and the environment.  Congress should reject PNTR with China as the minimum step toward preserving its leverage in the fight for socially just and environmentally sustainable trade policies.                                                 

                                    Sincerely,                                                 

                                    Carl Pope 
                                    Executive Director