CMTA President Challenges New Democrats to Vote for Permanent Normal Trade Relations for China.

Business & News Editors

SACRAMENTO, Calif.--(BUSINESS WIRE)--May 19, 2000

The California Manufacturers and Technology Association president, Jack M. Stewart, today released the attached editorial challenging California's Congressional Democrats to vote in support of extending Permanent Normal Trade Relations (PNTR) for China.

The California Manufacturers and Technology Association (formerly the California Manufacturers Association) works to improve and preserve a strong business climate for California's 30,000 manufacturers, processors and technology based companies. For more than 82 years CMTA has worked with the state Legislature to pass balanced legislation to stimulate economic growth and create new jobs while safeguarding the state's environmental resources. CMTA represents businesses from the entire manufacturing community -- a segment of our economy that contributes more than $250 billion annually to the economy and employs more than 2 million Californians.

              Permanent Normal Trade Relations for China
              New Democrats Hold the Keys to New Economy
                          By Jack M. Stewart

It ain't easy being a "New Democrat."

It means sometimes having to say "No" to old friends while saying "Yes" to the vast opportunities presented by the New Economy and the growing global marketplace.

And, New Democrats know how to change with the times for they had the vision to embrace a more optimistic, voter-compatible blend of moderation in issue positions; the result was the Democratic Party's remarkable recovery. The ongoing challenge for Democrats is to build on their new vision instead of retreating to the dark years and politics of old.

The latest example is an aggressive attempt by some to persuade Congressional Democrats to oppose this year's vote on what is the most profound New Economy issue -- ratification of the U.S.-China trade deal by approving permanent normal trade relations (PNTR) status for China.

A common misperception is that Congress, by denying PNTR for China, can block its entry into the World Trade Organization (WTO), which sets and enforces trade rules to protect its member nations, including the United States. The truth is that China does not require U.S. approval of the trade status to enter the WTO, and China's entrance is a virtual certainty regardless of Congress' action on PNTR.

What will be accomplished by denying PNTR for China is to ensure that our economic competitors in the European Union, Japan and many other nations gain access to the massive Chinese consumer market while the United States is locked out. And, that means less growth and fewer good jobs created in America.

Few, even among organized labor, seriously argue against the merits and economics of the trade deal negotiated between China and the Clinton Administration last October. China made multiple concessions -- ranging from reduction or eventual elimination of tariffs on American products to agreements bound by anti-dumping rules under the WTO -- while the United States made only one: permanent extension of the normal trade status Congress has approved every year without fail for 19 consecutive years.

As President Clinton told the Democratic Leadership Council Conference entitled, "New Democrats: Meeting the Challenges of the New Economy" in San Jose last month, "There is a lot of controversy in Congress about this vote. And I've heard all the arguments. But I have to tell you first, in the entire history of trade agreements, I don't believe there's ever been one this weighted in our favor."

America's consumer market is already wide open to the Chinese. Approval of PNTR simply gives American workers the same opportunity at competing for business in China.

The stakes are highest in California. More goods are exported from California's seaports and airports than from any other state. We are the birthplace and home of the information technology industry, the motion picture industry and the biotech industry. We boast a vibrant manufacturing base. We are America's greatest producer of food and other agricultural products. From technology to movies, airplanes and aerospace, wine, citrus, rice and much more, California is poised to reap the enormous job and salary growth that comes with access to China's 1.26 billion consumers.

This can only be a reality, however, if New Democrat leaders -- including California Governor Gray Davis and Fresno congressman Cal Dooley who are strong advocates for PNTR approval -- persuade their more hesitant Democratic colleagues that on this vote, sound policy for ordinary Californians outweighs a return to politics of old.

The PNTR China vote will occur in late May. In many ways, this is a defining moment for the New Democrats, whose popular positions on issues affecting the New Economy will be tested like never before.

When it comes to questions of America's continuing economic growth and improvement, the decision must involve the realization that it is sometimes necessary to say "No" to old friends while saying "Yes" to embracing new economic opportunities and prosperity.

Jack M. Stewart is President of the California Manufacturers and Technology Association.