PNTR FACT SHEET
- The time has come to extend PNTR to China as
it nears completion of its WTO accession.
- The United States must grant China permanent
and unconditional normal trading relations (PNTR) status to bring home
the benefits of China's WTO membership to American farmers,
manufacturers, and service providers.
- PNTR is not a vote on China's WTO entry.
Failure to grant PNTR will not deny China membership in the WTO. It will
only deny the United States the very market access we negotiated, and
give the competitive advantage in China to Europe and Japan.
- WHAT IS PNTR?
Permanent NTR (PNTR) describes the
unconditional Normal Trade Relations tariff status that members of the
World Trade Organization (WTO) accord each other as part of their mutual
commitments as WTO members. Frequently called Most Favored Nation tariff
status in international law, PNTR refers to the standard or "general"
tariff treatment the United States extends to other countries in return
for mutually favorable tariff treatment for US exports.
PNTR is neither a special privilege, nor a
reward, nor the most favored tariff treatment the United States provides
to its trading partners. Over 130 member countries of the WTO enjoy PNTR
tariff status with the United States, and provide the same treatment to
US exports.
- WHY DO WE NEED TO GRANT CHINA PNTR?
Granting PNTR to China is critical to
enabling the United States to enjoy the benefits of China's accession to
the World Trade Organization (WTO). Article I of the General Agreement
on Tariffs and Trade (GATT) requires that all WTO members provide
unconditional MFN (PNTR) treatment to other WTO members by granting each
other "any advantage, favor, privilege or immunity" provided to other
countries "immediately and unconditionally." This principle is the
foundation of the WTO.
- WHY IS ANNUAL NTR NOT ENOUGH?
Annual review of China's trading status would
directly violate Article I of the GATT because it would be conditional
and discriminatory. Both the Administration and the Congress are on
record as unequivocally stating that PNTR, not annual NTR, is required
to bring home the benefits of China's accession according to WTO rules.
- WHAT WOULD FAILING TO EXTEND PNTR
MEAN?
Failure of the US Congress to grant China
PNTR would not prevent China from joining the WTO. Ironically, such an
action would only deny Americans access to China's market. Should
Congress fail to grant PNTR, when China accedes to the WTO it is likely
that the China would invoke its right of "non-application" of WTO
benefits to the United States under Article XIII of the WTO. The United
States would do the same. Thus, although China would be a member of the
WTO, the United States would not treat China as a member. Moreover,
under this same article, China would not be required to treat the United
States as a member. |