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Clinton Wants Quick Vote on China Trade Bill

Reuters Photo


By Adam Entous

WASHINGTON (Reuters) - President Clinton sent legislation to Congress on
Wednesday that would grant China permanent trading privileges in the U.S.
market, setting the stage for the biggest trade battle since the 1993 North
American Free Trade Agreement.

Clinton asked lawmakers to approve the bill ``as soon as possible,'' to
ensure U.S. companies benefit from a landmark trade agreement that would open
China's vast marketplace, potentially the world's largest with 1.3 billion
consumers.

Most senators support the initiative, but it faces stiff opposition in the
House of Representatives from labor unions and their Democratic allies.

Clinton aides are pressing for passage by June, fearing further delay could
bog the legislation down in politics before the November U.S. elections.

``This is the right thing to do. It's a historic opportunity and a profound
American responsibility,'' Clinton said in a speech at Johns Hopkins
University. ``I'll do all I can to convince Congress and the American people
to support it.''

The trade agreement calls for China to open a wide range of markets from
agriculture to telecommunications.

The deal, worked out in 1999, is a crucial piece of China's application to
join the World Trade Organization, though Beijing must still wrap up talks
with the European Union and other WTO members to enter the Geneva-based body,
which sets global trading rules.

Permanent Favored Status

In exchange for market opening by China, Clinton says the Republican-led
Congress must grant the country permanent normal trade relations, a status
Beijing now gets only after an annual congressional review.

Permanent-NTR legislation, as proposed by Clinton, would guarantee Chinese
goods the same low-tariff access to U.S. markets as products from nearly
every other nation.

To boost congressional support for a swift vote, the White House included a
provision in the bill assuring lawmakers that U.S. business will benefit from
Chinese market-opening commitments negotiated by the EU and others.

The White House is pressing for a swift vote in the Senate, hoping to score
an early victory that would put pressure on a bitterly divided House of
Representatives.

``This is a tough fight, and we know it; and we're not taking anything for
granted,'' Commerce Secretary William Daley told Reuters after briefing
Senate Democrats on the pact.

Clinton's allies -- a coalition led by the Business Roundtable and the
Chamber of Commerce -- have earmarked more than $12 million to round up
free-trade votes on Capitol Hill in their biggest lobbying campaign since
NAFTA was passed in 1993. That pact, which lowered trade barriers among the
United States, Mexico and Canada, was approved after a bitter congressional
fight.

Focus On Senate

Senate leaders said the Finance Committee would hold the first vote on
China's trade status, and passage was virtually assured. Fifteen senators on
the 20-member committee told Reuters in a survey they would support permanent
NTR.

In the 100-member Senate, the vote may be closer, but Republican Leader Trent
Lott of Mississippi and Democratic Leader Tom Daschle of South Dakota said
they expected at least 60 senators to support the White House, enough to
override a filibuster.

Two senators, Paul Wellstone of Minnesota and Ernest Hollings of South
Carolina, sent Clinton a letter of protest. ''People in the country have real
worries that this deal may hurt them more than it will help,'' they wrote.

It remained to be seen whether the agreement would garner a 218-vote majority
in the 435-member House, though Republican leaders and administration
officials were optimistic.

House Republican Majority Leader Dick Armey said he expected the House to
approve permanent NTR in June, later than the administration had hoped, and
he urged Clinton to lobby Democrats. ``It's going to be tough to get the
votes,'' the Texas Republican conceded.

According to House Democratic Whip David Bonior of Michigan, two out of three
Democrats will oppose the pact.

Labor unions, traditionally allied with Clinton's Democratic Party, have
singled out the trade agreement for attack, demanding that Beijing improve
human rights and labor standards before joining the WTO. They have put House
Democrats on notice that they will pay at the polls in November if they
support it.




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