"Congress is debating the pros and cons of rewarding Communist China with permanent NTR status..." -- James P. Hoffa, General President, International Brotherhood of Teamsters, March 2, 2000

The Facts

Reward? What reward? Mr. Hoffa doesn't get it. China's entry to the WTO is a challenge, not a reward. Passing Permanent Normal Trade Relations (PNTR) doesn't reward China, it rewards America.

Consider the facts. To join the World Trade Organization, China must:

• Make painful, fundamental reforms in the way China's economy is organized.
• Cut overall average tariffs from 24% to 9% by 2005.
• Cut tariffs on U.S. priority goods even faster: to 7% by 2003.
• Eliminate tariffs on high-technology goods by 2005.
• Cut average agricultural tariffs by half.
• Expand market access for U.S. corn, cotton, wheat, rice, barley, soybeans, meats, and other products.
• Give full trading rights to foreign firms, and eliminate state-owned middlemen.
• Open markets for telecommunications, insurance, banking, securities and professional services.
• Open the Internet sector to foreign investment.
• Accelerate the reduction of auto tariffs.

In return, China's "reward" from the U.S. is?.....ZERO. ZIP. NOTHING. NADA. That's right. China gets no increased access to U.S. markets, no cuts in U.S. tariffs, no special removal of U.S. import protections. That's because our market is already open to Chinese imports. This agreement opens China's market. But Congress must pass Permanent Normal Trade Relations to reap these rewards.