Governor Locke Presses for Permanent Normal Trading Relations with China.

Business Editors

SEATTLE--(BUSINESS WIRE)--Feb. 23, 2000

Last night at a reception hosted at the Governor's mansion in Olympia by the Washington Council on International Trade (WCIT), Governor Gary Locke released a study on the impacts to Washington State of China's accession to the World Trade Organization.

The report enumerates the many advantages to Washington's farmers, business people and workers of Permanent Normal Trade Relations with China. It was researched by "goTrade," a national coalition of trade groups. WCIT represents goTrade in Washington State.

Locke explained that this year Congress is considering legislation to grant China Permanent Normal Trading Relations (PNTR) with the United States. This legislation is essential for U.S. companies, farmers and workers to enjoy the benefits and opportunities stemming from China's accession to the WTO.

Failure to pass PNTR would not prevent China's entry into the WTO. What it would mean is that the U.S. could not realize the benefits of China's tariff reductions and improved investment opportunities while all other WTO members could. "American businesses would sit idly by the side as other trading partners reap the benefits" the Governor told the group of some 150 business people, consular corps members and state legislators. "That," Locke said, "is completely unacceptable."

Locke told the group that as part of his commitment to support PNTR with China, he is "working with Governor Shafer of North Dakota on a bipartisan letter to Congress from U.S. governors endorsing Permanent Normal Trading Relations for China."

Among the many economic advantages to Washington cited in the goTrade report were:

-- China's commitments on agriculture that include an end to export subsidies
and increased import quotas for wheat and corn; lower tariffs on beef (from 45%
to 12%), pork (20% to 12%), poultry (20% to 10%), grapes (40% to 13%), apples
and pears (30% to 10%), and cherries and peaches (30% to 10%) by 2004 and
acceptance of USDA certification for meat safety of U.S. exports.

-- China's adherence to WTO's Intellectual Property Rights Agreement.

-- End of market access barriers to environmental services.

-- China's commitments on apple tariffs will open a "huge new market" in
northern China for the state's apple exports, valued at up to $75 million,
according to Washington Apple Commission estimates.

-- Lowered Chinese tariffs on manufactured products and liberalized market
access for services include commitments to reduce industrial tariffs from an
average of 24.6 percent (1997) to 9.4 percent (2005).

-- Full trading and distribution rights granted to U.S. firms within three to
four years.

-- Reduction to zero tariffs on semiconductors, computers and equipment, and
telecommunications equipment.

Stressing the strategic importance of trade to Washington State, Governor Locke also urged passage at the state level of a bill to separate the trade and economic development functions from community development functions in what is currently the State's Department of Community, Trade and Economic Development.

"I appreciate your efforts today in urging members of the legislature to pass this important piece of legislation," Locke told the group. "Please urge your colleagues and associates to contact their legislators with the same message."

The reception was part of the Trade Council's annual efforts to bring together state legislators with their constituents in the business community to share trade-related concerns.

The Washington Council on International Trade is a statewide non-profit association. For over 26 years, WCIT has educated and advocated on the importance of international commerce to Washington State. Currently, one in three jobs in Washington are dependent on imports and exports.

WCIT is located on the Web at www.wcit.org

For additional information, please contact Terry Laggner, Communications Director at 206/443-3826 or e-mail at [e-mail].