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The BBC's Jeff Phillips
"China has plenty of enemies in Washington"
 real 28k

Wednesday, 23 February, 2000, 20:56 GMT
US-China trade deal 'in jeopardy'

US and Chinese negotiators smile as trade deal is announced
November 1999: US and Chinese negotiators reach a deal after 13 years of talking


US Senators have said that they might scupper China's attempt to join the World Trade Organisation (WTO) because of Beijing's threat to use military force against Taiwan.

Last November, the US and China agreed terms for the world's most populous country to become a WTO member.

However any deal must be approved by the US Congress.

A recent warning by Beijing officials that Taiwan must eventually negotiate unification with the mainland or face a possible war has turned many Senators against China's WTO bid for membership.

Al Gore adds to uncertainty

Senator William Roth, a Republican in favour of the trade pact, said it was now in jeopardy.

During a hearing of the Senate Finance Committee, which he chairs, Mr Roth said "that WTO accession and the passage of permanent normal trade relations in the Senate is not a foregone conclusion, as some may think".

He added that "the reckless threat to use force against Taiwan over negotiations on the future cross-strait relations and the recurring human rights violations will necessarily affect the Senate's consideration of this agreement".

Chinese Minister of Foreign Trade and Economic Cooperation Shi Guangsheng, right, and Indian Minister of Commerce and Industry Murasoli Maran India and China struck a WTO deal on Tuesday
Democrat Daniel Moynihan also warned US Trade Representative Charlene Barshefsky that she was "going to lose this".

Remarks by Vice President Al Gore during his presidential election campaign have added to the uncertainty. He indicated that he might want to renegotiate the pact to include labour rights.

US labour unions have also launched a major campaign against China's entry.

China has been trying to join the WTO for 14 years, but must first reach trade agreements with all the organisation's members.

EU talks drag on

Chinese man walking past Nokia advertising in Beijing The EU hopes to prise open China's telecoms market
Trade negotiators from China and the European Union, meanwhile, are still struggling to come to an agreement that would allow China join the World Trade Organisation (WTO).

The Sino-European talks taking place in Beijing are now entering an unscheduled fourth day.

A Chinese official said progress on Wednesday had been "just so-so". A member of the EU delegation was quoted as saying that both sides had "made some progress, but not at lightning speed".

Stumbling blocks

If the negotiations are successful, companies from the EU should find it easier to sell their wares to China's 1.2bn customers, while Chinese exporters should face fewer barriers to export their goods to Europe - and other countries around the world.

EU trade commissioner Pascal Lamy is on standby to board a plane and fly to Beijing if an agreement is close.

The stumbling blocks are believed to be European demands for better access to China's insurance and telecommunications markets.

The EU is the most important WTO member that has yet to conclude a deal, and there have been suggestions that this round could break the deadlock.

The EU says the US deal covered 80% of its concerns. Outstanding issues are the opening up of China's telecommunications and financial services sectors, as well as getting lower Chinese customs duties on textiles and wines.

A week ago the head of the WTO, Mike Moore, visited Beijing and expressed confidence that China would join by the end of the year.

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See also:
21 Feb 00 |  Business
China looks to WTO deal with EU
24 Nov 99 |  Battle for Free Trade
Analysis: China's big WTO gamble
15 Nov 99 |  The Economy
China deal to boost economy
15 Nov 99 |  The Economy
China drops trade barriers
21 Feb 00 |  Asia-Pacific
China warns of force against Taiwan
24 Jan 00 |  Business
EU meets China on WTO deal
13 Jan 00 |  Business
US battle over China intensifies

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