The Senate this week completed another victory for free trade as legislation granting permanent normal trade relations (PNTR) to China passed by a strong 83 to 15 vote. Once the President signs the measure into law, it will mark the end of more than 20 years of annual debate over trade relations with China.

The victory also clears a major hurdle to China’s entry into the World Trade Organization (WTO). China’s membership in the WTO, coupled with the trade accord reached late last year, will open Chinese markets to American goods and open its retail and distribution systems to U.S. retailers. While China could have joined the WTO regardless of the outcome of the Senate vote, failure to grant PNTR would have prevented the U.S. from receiving the full benefits of the trade deal.

“This is a victory for retailers and our customers - the American public,” said NRF President and CEO Tracy Mullin. “A stable trade relationship with China provides important benefits to American consumers and the U.S. economy. It allows us to address the legitimate issues of national security and human rights with the Chinese, and to help clear the path for China’s membership in the World Trade Organization.”

Under the trade deal reached in November 1999, Chinese markets will be flung open to U.S. industries, significantly reducing tariff and non-tariff trade barriers, leading to wide-ranging modernization of the Chinese economy. The opening of China will enable U.S. retailers and manufacturers to sell products, including U.S.-made goods, directly to Chinese consumers. In return, the U.S. will eliminate quotas on Chinese textiles and clothing on the same time frame for ending quotas on imports from other WTO members. Terminating these quotas will help address the problem of illegal apparel transshipment and will lower clothing prices for American retail customers.

NRF worked closely with Senators and the rest of the business community to ensure the defeat of amendments that would have killed the measure. NRF asks that you write to your Senators to thank them for their vote in support of PNTR. A sample letter and the voting tally can be found on NRF’s website at www.nrf.com/govt.

If you have any questions, please contact Erik Autor at (202) 626-8104.

As the legislative session winds down, supporters of long-sought bankruptcy reform are gearing up for one final push to get the measure passed. Despite strong votes in both the House and Senate, the legislation has been stalled by debate over extraneous issues and election year politics. While an official House-Senate conference has not met, behind the scenes negotiations have been ongoing since early this year and a conference report is nearly ready for consideration by Congress. However, opponents of the measure have used amendments, like one dealing with abortion clinic violence, to prevent any movement on the bill.

Last week, Senate Majority Leader Trent Lott (R-MS) reintroduced the bankruptcy bill--stripped of its minimum wage and related tax break provisions--passed by the Senate earlier this year. By doing so, Lott has given himself room to maneuver in the final days of Congress. It is possible the ‘new’ measure could be attached to another legislative vehicle, such as an appropriations bill, as early as next week.

Meanwhile, Senate Republicans reportedly were crafting another counterproposal to the White House on bankruptcy as of late Thursday. It is unclear if the Clinton Administration would accept any offer on the measure without the addition of ‘sweetener’ provisions that would prevent a veto.

NRF, as a member of the Bankruptcy Reform Coalition, is preparing for one final grassroots effort. NRF asks that you contact your Members of Congress on September 26 and 27 and urge them to move bankruptcy reform legislation before the end of the session. Members can be reached through NRF’s Legislative Hotline to Congress at (888) 218-7532, Pin# S625.

If you have any questions, please contact Mallory Duncan or Katherine Lugar at (202) 783-7971.

Work continued in the Senate this week on legislation to increase the number of H1-B visas. Despite overall support for the measure in Congress and from the White House, a number of secondary issues are holding up action on the measure.

While both parties have expressed their support for a clean H1-B measure, there are a number of secondary issues that each side wants included. Democrats are trying to include provisions on “Latino fairness issues,” such as granting amnesty to certain undocumented workers and easing some residency requirements. Across the aisle, Republicans are pushing for reforms to the H-2A agricultural guest worker program, which some Latino advocacy groups oppose.

Retailers use H1-B visas to employ highly specialized workers in computer technology and to gain expertise in operating business units outside of the United States. The pending Senate measure would increase the number of visas available to highly skilled foreign workers to 200,000 per year over the next three years; otherwise, the current annual limit of 115,000 falls to 65,000 during the next three years. The House has yet to act on similar H-1B legislation, although a bipartisan resolution of the matter in the Senate should ensure speedy action in that chamber, too.

Senate Majority Leader Lott said Tuesday that he wants the H-1B bill to move cleanly, but did not rule out later consideration of other immigration matters. It is also possible that the measure could be included in an omnibus budget bill if no agreement is reached.

If you have any questions, please contact Sarah Whitaker at 9202) 626-8109.

The Senate Commerce Committee on Wednesday approved a bill that would bar telemarketers from keeping their identities secret when calling homes.

The measure prohibits telemarketers from blocking their identities on caller identification devices attached to phones. It also would require telemarketers to reveal their names and a telephone company where they can be reached so individuals called could ask to be put on a "do not call" list as required by law. Violators could be fined up to $5,000.

The bill now goes to the full Senate. Similar legislation is pending in the House of Representatives.

If you have any questions, please contact Mallory Duncan at (202) 783-7971.

Credit Management Advisory Council - September 24, 2000, San Diego, CA
General Counsels Forum - September 26-27, 2000, Williamsburg, VA
Policy Council - October 5, 2000, Washington, DC
Committee on Employment Law - October 19-21, 2000, Santa Fe, NM