September 11, 2000 (Senate)

Congressional Record [Page S8345-S8350]

AMENDMENTS SUBMITTED

U.S.-CHINA RELATIONS ACT OF 2000

KYL AMENDMENT NO. 4133

Mr. KYL proposed an amendment to the bill, H.R. 4444, supra; as follows:

On page 5, line 12, after ``China'', insert ``and Taiwan as separate customs territories''.

SEC.102. EFFECTIVE DATE

(a) EFFECTIVE DATE OF NONDISCRIMINATORY TREATMENT.-- The extension of nondiscriminatory treatment pursuant to section 101(a) shall be effective no earlier than the effective date of the accession of the People's Republic of China and Taiwan as separate customs territories to the World Trade Organization.

Mr. KYL. Mr. President, in recent days, there have been some disturbing moves by China to block Taiwan's entry into the World Trade Organization (WTO), despite China's previous assurances to the United States that it would not do so. As recently as Thursday, September 7, Chinese Foreign Ministry spokesman Sun Yuxi said that China wanted its claim to sovereignty over Taiwan written into the terms of the WTO's rules, stating ``The Chinese side has a consistent and clear position:

Taiwan can join WTO as a separate customs territory of China.''

This statement by China's Foreign Ministry spokesman comes on the heels of earlier efforts by China to block Taiwan's WTO entry. As the Wall Street Journal reported in July:

``. . . as WTO staff members draw up the so-called protocol agreements--the reams of paper that define exactly what concessions China will make in order to gain entry into the organization--China is insisting that its claim over Taiwan be recognized in the legal language . . . chief Chinese negotiator Long Yongtu said . . . such a stand ``is a matter of principle for us'' . . . That would upset a consensus within the WTO that Taiwan should be allowed to enter the club as a separate economic area--that is, not an independent country, but also not as an explicit part of China. Some WTO members have argued that Taiwan has long since fulfilled its requirements to join the club and its application has been held up only to satisfy China's demand that Taiwan shouldn't win entry to the organization first.

In order to help ensure that China lives up to its promises to the United States, and that Taiwan's entry to the WTO is not unnecessarily impeded, today I am filing an amendment to H.R. 4444, the bill to provide permanent normal trade status to China. The current text of H.R. 4444 states that the extension of permanent normal trade relations to China ``shall become effective no earlier than the effective date of the accession of the People's Republic of China to the World Trade Organization.'' My amendment would add one additional condition, stating that permanent normal trade relations with China ``shall become effective no earlier than the effective date of the accession of the People's Republic of China and Taiwan as separate customs territories to the World Trade Organization.''

My amendment reinforces the message the Clinton administration has sent to China on previous occasions, and it is my hope that this amendment will remove any ambiguity about America's resolve to support

Taiwan's WTO admission. Earlier this week, I received a letter from President Clinton that responded to a letter I sent him in July along with 30 other Senators, that sought assurances that his administration remained committed to Taiwan's entry to the WTO. In the letter the President stated that, ``My administration remains firmly committed to the goal of WTO General Council approval of the accession packages for China and Taiwan at the same session.'' The President's letter went on to say that ``China has made clear on many occasions, and at high levels, that it will not oppose Taiwan's accession to the WTO. Nevertheless, China did submit proposed language to their working party stating that Taiwan is a separate customs territory of China. We have advised the Chinese that such language is inappropriate and irrelevant to the work of the working party and that we will not accept it.''

As the President acknowledged in the letter, despite previous assurances by China and the administration that Taiwan will be admitted to the WTO without opposition, under the surface there is a problem. As it always does, China is using yet another diplomatic opportunity to assert its view that Taiwan is nothing more than a province of China. It is important for the Congress and the administration to work together to support Taiwan's entry into the World Trade Organization (WTO). First because of the economic benefits that its entry would bring. Secondly, because of the need to meet our commitments to our close and longstanding ally. And third, due to our desire to defend and promote democratic governments, with free markets, that respect the rule of law and the human rights of their people.

Based on its importance to the world economy, Taiwan should be admitted to the WTO. It has the 19th largest economy and is the 14th largest trading nation in the world. Taiwan's economy is also closely linked to the U.S. It is America's 8th largest trading partner and purchases more American goods than many of our other major trading partners, like mainland China, Australia, and Italy. U.S. trade with Taiwan should continue to grow. Over two years ago, we signed a bilateral WTO agreement with Taiwan that included significant reduction in tariffs and other barriers for exports of a variety of U.S. goods and services, including agriculture goods, automotive products, and pharmaceuticals. The admission of Taiwan to the WTO ensures that market barriers to U.S. products will remain low and American companies will have a means to solve disputes over intellectual property and other matters.

Taiwan has been negotiating to become a member of the WTO since 1990 and has met the substantive conditions for membership. According to the Congressional Research Service, it has completed agreements with each of the 26 WTO members that requested bilateral negotiations, and has held 10 meetings with the WTO Working Party in Geneva, resolving all substantive issues surrounding its admission.

China has insisted that Taiwan can get into the WTO only after it does, and has lobbied other countries to support this position. In the past, Clinton administration officials have assured us that Taiwan's accession would closely follow China's. In February, U.S. Trade Representative Charlene Barshefsky testified to the House of Representatives that ``. . . the only issue with respect to Taiwan's accession . . . pertains to timing . . . there is a tacit understanding . . . among WTO members in general--but also, frankly, between China and Taiwan--that China would enter first and China would not block in any way Taiwan's accession thereafter, and that might be immediately thereafter or within days or hours or seconds or weeks. . . .'' Later that same month, in response to a statement by Senator Roth that ``. . . there's a great deal of concern that Taiwan might be blocked [from entering the WTO] once China secures such membership,'' Ambassador Barshefsky testified that ``. . . the United States would do everything in our power to ensure that that does not happen in any respect because Taiwan's entry is also critical.''

The WTO plays an important role in promoting free and fair trade. Under the WTO, member countries agree on a set of rules and principles for trade, which in turn creates a stable and predictable trade environment. Secondly, the WTO provides a mechanism to enforce these rules, including a procedure for countries to resolve trade disputes. And finally, the WTO provides a forum for negotiations to reduce trade barriers worldwide.

Since the founding of its predecessor GATT in 1984, membership in the organization has grown from 23 countries to 136 today. The general view among economist is that a more predictable trade environment, and a reduction of trade barriers, has contributed to the unprecedented economic prosperity that most countries currently enjoy. Statistics support this view: In 1998, world exports were 18 times larger than in 1950, and world GDP was 6 times greater in 1998 than 1950, according to the Congressional Research Service.

As I mentioned earlier, the United States should support Taiwan's admission to the WTO, not merely for economic reasons, but also to honor our commitments to a close, long-standing ally, and to demonstrate our intention to support democracies that respect the rule of law.

When our Nation switched diplomatic recognition to mainland China, we also enacted the 1979 Taiwan Relations Act to state our continued commitment to the security of Taiwan. This law states, ``. . . the United States decision to establish diplomatic relations with the People's Republic of China rests upon the expectation that the future of Taiwan will be determined by peaceful means.'' It goes on to say the U.S. would ``. . . consider any effort to determine the future of Taiwan by other than peaceful means, including by boycotts or embargoes, a threat to the peace and security of the Western Pacific area and of grave concern to the United States.'' And finally, it says the U.S. will sell ``. . . defense articles and defense services in such quantity as many be necessary to enable Taiwan to maintain a sufficient self-defense capability.''

China's leaders have steadfastly refused to renounce the use of force in retaking Taiwan, and have issued thinly veiled threats to use nuclear weapons should the U.S. intervene. For example, in March, the main newspaper of China's military said, ``China is neither Iraq nor Yugoslavia, but a very special country . . . it is a country that has certain abilities of launching a strategic counterattack and the capacity of launching a long-distance strike. Probably it is not a wise move to be at war with a country like China, a point which U.S. policymakers know fairly well.'' Another article in a Chinese military-owned newspaper went further, saying, ``The United States will not sacrifice 200 million Americans for 20 million Taiwanese. They will finally acknowledge the difficulty and withdraw.'' In outlining what became known as the ``Truman Doctrine,'' President Harry Truman said:

At the present moment in world history nearly every nation must choose between alternative ways of life. The choice is too often not a free one. One way of life is based upon the will of the majority, and is distinguished by free institutions, representative government, free elections, guarantees of individual liberty, freedom of speech and religion, and freedom from political oppression. The second way of life is based upon the will of a minority forcibly imposed upon the majority. It relies upon terror and oppression, a controlled press and radio, fixed elections, and the suppression of personal freedoms. I believe that is must be the policy of the United States to support free peoples who are resisting attempted subjugation by armed minorities or outside pressures. I believe that we must assist free peoples to work out their own destinies in their own way.

Harry Truman spoke these words in 1947, at a time when it was very difficult to stand up to communism on the march from the Soviet Union. The challenge we face today in dealing with China and Taiwan should not be as great as the courageous struggle for the cold war. The United States cannot support China's entry into the WTO without equally supporting Taiwan's entry into the WTO. This is but one of many signals we should be sending to the communist regime in Beijing, about America's determination to meet our commitments and our resolve to support Taiwan.