Us, China and the WTO.

No congressional vote this spring will be as important trade normalization with China. Yet the issues are as well understood as gene-splicing. Colorado Biz turned to China consultant Allen Barber, president of Denver-Hainan Corp., for an explanation.

China's WTO entry and permanent Normal Trade Relations between the United States and China are confused and confusing. It's often implied that China cannot become a WTO member unless Congress grants PNTR. Not true.

The 1999 U.S.-China accord removed the United States as an obstacle to China's WTO membership. Chinese membership is now solely up to the WTO. China must secure a few more bilateral trade agreements, and then the WTO will consider its membership.

Then, protocols must be completed including the final agreement between the WTO and China that takes the best terms from each bilateral agreement.

Finally, China must receive two-thirds vote of WTO members. This will occur.

Permanent Normal Trade Relations is solely a U.S.-China issue. The United States must grant China PNTR if it is to benefit from the lower tariffs, market access and dispute resolution machanisms that spring from China's WTO membership. Each WTO member is required to grant all members unconditional access to its markets. Unless PNTR is granted, the United States will be out of compliance with this requirement. China can then deny the United States access to its markets on the favorable WTO terms.