WTO 'snags on Taiwan'

South China Morning Post

Friday, July 28, 2000   SHEEL KOHLI in London

The mainland appears to have hit a snag in the last lap of its talks to enter the World Trade Organisation, after it inserted a clause insisting that the WTO's 137 member countries accept Beijing's claim of sovereignty over Taiwan.

Its talks, which are taking place at the WTO headquarters in Geneva, ended yesterday, with some disquiet being expressed by Beijing's trading partners that it may prove difficult to sign up to such a categorical expression of support for Beijing over Taiwan.

Under the current structure, Hong Kong and Macau are separate members of the WTO and classed as Customs territories. Taiwan, however, is not a member, due to a1992 agreement between Beijing and its main trading partners that it will only be allowed to accede to the WTO after Beijing has joined. Once Taiwan joins, it will also be classed as a separate Customs territory within the organisation, but Beijing is asking that in the mainland's official accession protocol, language is used in the document that recognises Hong Kong, Macau and Taiwan as all part of the mainland.

Most of the mainland's key trading partners, including the US and the European Union, accept the "one China" principle, but may be unwilling to endorse it in a legally binding document. Other countries in the WTO that officially recognise Taipei may be unwilling to accept the clause. Observers said yesterday the obstacle was not insurmountable and could be resolved before the next round of meetings, set for September 11-30, in Geneva. But trade delegates yesterday said the process of completing the accession protocol was proving arduous, with the mainland scrutinising every little detail.

The question of the mainland's level of subsidies that it pays to support its agricultural sector has also received some close scrutiny, particularly in the wool sector, where countries are keen to ensure that Beijing is not giving unfair support to its domestic industry.

US Senate Majority Leader Trent Lott has removed a key hurdle to passage of a landmark China trade bill, setting the stage for a vote on the pact in September. Under pressure from the White House and pro-trade business groups, he filed a procedural motion on Wednesday, seeking a vote this week that would direct the Senate to proceed to the China bill when it returns from August recess.