Later this month, Congress will consider legislation to grant China permanent normal trading relations status based on an agreement negotiated in November. China now has normal trade relations subject to annual review.
In the bilateral agreement, China made significant concessions across virtually every economic sector and committed to decrease tariffs:-- On U.S. agriculture products such as citrus, wheat, corn and rice, from 31 percent to 14 percent by January 2004.
-- On industrial products ranging from furniture to medical equipment to elevators, from 24.6 percent to 9.4 percent by 2005.
-- On autos from an average of 80 percent to 100 percent down to an average of 25 percent by 2006.
China also will participate in the Information Technology Agreement and eliminate tariffs on computers, semiconductors and related products by 2005; open its telecommunications sectors, including Internet services; and expand investment and other activities for financial services companies.
Additionally, China will open up distribution services, such as repair and maintenance, warehousing, trucking and air couriers. The agreement preserves safeguards against dumping and other unfair trade practices. No matter how you look at it, this benefits the United States.
Unfortunately, many people have confused this month's vote with a vote to approve China's joining the World Trade Organization. But China is likely to join the WTO within the next year or so -- with Taiwan following -- regardless of its trading status with the United States.
Under WTO rules, only the countries that have nondiscriminatory trade practices -- permanent normal trading relations status -- are entitled to receive the benefits of WTO agreements. If Congress does not grant China this status, our country effectively would be shut out of China's vast markets.
For California, America's No. 1 exporting state, this is especially important. More than a quarter of California's trillion-dollar economy depends on international trade and investment.
People who argue against granting permanent normal trading status to China generally say that other issues -- such as China's record on human rights -- should be the criteria Congress uses. But isolating the Chinese from the main trading body of nations also isolates them from the rules and regulations of that body. The WTO provides tools to bring a recalcitrant nation into compliance.
Rep. Sander Levin, D-Mich., and Rep. Doug Bereuter, R-Neb., have suggested legislation that would include a commission made up of executive and legislative branch officials who would review China's conduct on labor and human rights; enhance measures to monitor China's compliance with trade pacts; and clarify laws designed to head off import surges. I believe this approach can and should proceed along a parallel track with the resolution on permanent trade relations.
Giving China permanent normal trading status and drawing the Chinese into the global trading community helps sow the seeds of positive change.
Dianne Feinstein, a Democrat, is California's senior U.S. senator.