White House tries to salvage China trade vote

By Adam Entous
Reuters

May 15, 2000
Web posted at: 4:18 p.m. EDT (2018 GMT)

WASHINGTON (Reuters) - The White House pressed Republican congressional leaders Monday to back legislation setting up a commission to monitor China's human rights record, saying it was the only way to ensure passage of the administration's breakthrough trade accord with Beijing.

Commerce Secretary William Daley said the White House faced its toughest battle in years convincing Congress to approve permanent normal trade relations (PNTR) for China, which would ensure U.S. companies benefit from the market-opening agreement struck by President Clinton in November 1999.

The trade pact, ushering China into the World Trade Organization, is fiercely opposed by organized labor and their Democratic allies in the House of Representatives, who have demanded that Beijing improve human rights and labor standards before joining the Geneva-based WTO.

"But I am optimistic we will pull it out. I am optimistic Congress will do the right thing," Daley said.

Trade sources said the Clinton administration's campaign could get a much-needed boost this week.

They expect New York Rep. Charles Rangel, the ranking Democrat on the House Ways and Means Committee, to announce Tuesday his support for the trade bill. One of the most influential Democrats in Congress, union leaders worry that Rangel will bring black and Hispanic Democrats with him.

Fearing the trade bill would be defeated, House Republican leaders were also expected to accept monitoring legislation proposed by Democratic Rep. Sander Levin of Michigan and Republican Rep. Doug Bereuter of Nebraska.

Under the proposed legislation, Congress would set up a commission to review Chinese policies and could recommend sanctions against Beijing as long as they were consistent with World Trade Organization (WTO) rules.

Daley said the monitoring plan was crucial to getting PNTR through Congress. "To be frank with you, without their efforts, our chances of winning are slim to none."

Boeing Co. Chairman Phil Condit said the proposal "makes sense" and could help the White House pass the bill.

But the commission proposal incensed China, which condemned it as an interference in its internal affairs. The commission proposal was also under fire from U.S. labor unions and other opponents of the trade agreement.

"China's a rogue nation," United Steelworkers of America President George Becker said. "We should hold our congressional leaders accountable."

Under current law China's trade status comes up for review each year.

But to lock in the benefits of the trade agreement, the White House says Congress must do away with these annual reviews and grant PNTR to Beijing.

PNTR would guarantee Chinese goods the same low-tariff access to U.S. markets as products from nearly every other nation. In exchange Beijing would open a wide range of markets, from agriculture to telecommunications, to U.S. businesses.

Time is running out for Clinton to collect the 218 votes he needs to ensure passage in the 435-member House.

Two key congressional committees are scheduled to vote on the trade bill Wednesday, followed by the full House during the week of May 22.

Despite an intense lobbying campaign by Clinton and his allies in the business community, only 162 lawmakers in the House said they would support or were likely to support PNTR for China, 56 votes short of the number needed for passage, according to a Reuters poll.

Daley admitted the administration had made little progress over the last week in getting votes to push the PNTR bill through the House. Its passage in the Senate is virtually assured.

"No question it will come down to the wire. We don't have the 218 votes yet to win it, and the opposition doesn't have them to defeat it," Daley said.

Meanwhile, opposition forces picked up two lawmakers Monday -- Maine Democratic Rep. John Baldacci and California Democratic Rep. Sam Farr.

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