Unfair Trade by China
Senator Dorgan, along with Senators Lindsey Graham (R–SC) and Sherrod Brown (D–OH), has introduced S. 571, a bipartisan bill that would withdraw China’s permanent normal trade relations (PNTR) status. As a result of PNTR, the U.S. has lost its leverage to annually review China’s trading practices to determine if China is following international commitments of fair trade. This bill would require China to once again obtain annual approval for normal trade relations with the United States.
We have a gaping $232 billion trade deficit with China that is fueled by China’s failure to live up to its commitments against rampant counterfeiting and piracy, sweatshop production, currency manipulation, and unfair restrictions on U.S. exports. Americans cannot and should not be asked to compete under these circumstances. Yet PNTR has allowed the Chinese to shrug off U.S. demands for more equitable trade.
Until October 10, 2000, China was subject to the provisions of the Jackson-Vanik amendment. This meant that China was granted normal trade relations only on an annual basis, and renewal was subject to Congressional approval. This gave Congress the ability to credibly demand that the Chinese abide by the rules of fair trade. Later, when the United States granted PNTR to China in 2000, Congress lost its leverage.
There have been some worthy proposals in the Senate to rectify this imbalance, but none has attempted to use our strongest leverage – the right to access the U.S. marketplace, the best marketplace in the world. Senator Dorgan proposes to send China a clear message by requiring China to seek annual approval for normal trade relations.
