Background and Procedure for Permanent NTR for China:

On November 15th, the United States concluded bilateral trade negotiations with China on tariff levels, agricultural market access, non-tariff barrier elimination, and trade in services. Currently, as many as 25 remaining countries must conclude their bilateral negotiations with China before it can enter the World Trade Organization (WTO). In addition, China must negotiate a protocol of accession, which is done multilaterally within the WTO.

Congressional approval of permanent normal trade relations (NTR) is not necessary for China to accede to the WTO. However, in order for American businesses and farmers to be guaranteed an opportunity to benefit from the trade concessions and better compete in China's markets, China's name must be removed from Title IV of the Trade Act of 1974, the so-called Jackson-Vanik amendment, which provides for an annual review of China's trade status based on freedom of emigration.

Otherwise, the U.S. would be in violation of Article I of the General Agreement on Tariffs and Trade (GATT), which requires the extension of Aunconditional@ Most Favored Nation (or NTR) status, and subject to trade sanctions. If the U.S. does not remove the conditions imposed by Jackson-Vanik, the U.S. would have to invoke the non-application clause of the GATT, meaning that China would be able to withhold the benefits of the 1999 bilateral agreement to the United States.

Any Member of Congress can introduce legislation removing China from the Jackson-Vanik amendment, to be considered under the regular rules of the House and Senate.

On June 8, 1999, the Committee released a Backgrounder on the annual Jackson-Vanik renewal process.

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