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Thursday, May 25 8:17 AM SGT

US business jubilant over China trade deal, critics see sell-out
WASHINGTON, May 24 (AFP) -
The US business community, foreseeing huge profits from the world's biggest
market, was jubilant Wednesday following a congressional vote to grant
permanent trade privileges to China.

But critics of the measure, notably organized labor and human rights
advocates, denounced it as a "sellout" to corporate greed, and warned it
would lead to lost jobs in the United States and more repression in China.

After weeks of furious lobbying by both supporters and opponents of the
legislation, the House of Representatives voted 237-197 to replace the
20-year-old annual review of Beijing's trade status with permanent normal
trade relations (PNTR).

"PNTR opens China's markets for American products, businesses and farmers,
and creates jobs for workers here at home," said US Chamber of Commerce
president Thomas Donohue.

But United Auto Workers president Stephen Yokich dismissed the policy as "the
continuation of a severely flawed approach to trade that has produced a huge
and rapidly worsening trade deficit, American jobs lost and the
unconscionable exploitation-for-profit of workers in China and other
developing countries."

China had made PNTR a condition for implementation of a sweeping
market-opening accord it signed with Washington last November in exchange for
US backing in its bid to join the World Trade Organization (WTO).

That accord will only come into effect once China is a WTO member.

With the House vote Wednesday, and expected Senate approval, China is assured
of enjoying on a permanent basis the same low-tariff treatment that the
United States accords just about every other country in the world.

The Clinton administration, and its big-business allies, contend that an
intensified commercial engagement with China will make it easier for US
companies to sell their products on the Chinese market, and will also bolster
the efforts of democratic reforms in the country.

Thanks to the deep tariff cuts embodied in the trade accord, the United
States stands to boost its exports to China by 13 billion dollars in the next
five years.

Critics contended that by abandoning the annual review, Washington would lose
the leverage it has to pressure China to respect human rights and core labor
standards.

PNTR, they warned, will also eliminate jobs in the United States as companies
set up shop in China to take advantage of cheap and non-unionized labor as
well as an absence of environmental standards.

But according to Mustafa Mohatarem, chief economist for General Motors, "GM
will generate US exports worth two billion dollars over the next five years
... (in) vehicle sales in China's burgeoning market."

For Phil Condit, Boeing chairman and chief executive, "PNTR will help ensure
economic growth and prosperity for both the US and China."

"It will also stabilize the US-China relationship in ways that will create a
solid foundation for resolving other important issues."

According to Motorola chairman Christopher Galvin, "more exports means more
opportunity for American companies and more jobs for American workers."

He called Wednesday's vote "a major step to keep America competitive in an
increasingly global economy."

Noting that PNTR had support in both the Democratic and Republican parties,
Timothy Timken, vice president of the National Association of Manufacturers,
said the vote marked "the resurgence of America's bipartisan consensus that
expanding trade boosts our economy and makes life better for our workers."

But Public Citizen, a consumer advocacy group founded by Ralph Nader, in a
statement following the House action pointed to a Harris poll showing that 79
percent of Americans opposed PNTR.

"Members of Congress who supported permanent, unconditional access for goods
from China will rue this day as China's human rights conduct worsens,
saber-rattling against Taiwan intensifies, and US jobs are lost," said Lori
Wallach of the Public Citizen's Global Trade Watch.

At Citizens Trade Campaign, a coalition of environmental, labor and consumer
groups, the House vote was condemned as "cowardly capitulation to corporate
greed."

"Ordinary Americans want trade rules that promote human rights and economic
security, not a skewed regime that feeds corporate hunger for cheap labor at
the expense of every value Americans hold dear," it declared.

Added Carl Pope, executive director of the Sierra Club environmental lobby
group: "Congress has relinquished what little leverage it had to ensure
values such as environmental protection and human rights are part of our
relationship with China."



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