Landmark China trade bill on the brink of passage
WASHINGTON, Sep 15, 2000 -- (Reuters) A landmark China trade bill that could transform Sino-U.S. relations was on the brink of passage after the U.S. Senate on Thursday rejected the final amendments and scheduled a September 19 vote.
Senators said there was no longer any doubt legislation granting permanent normal trade relations (PNTR) to China would pass by a large margin, in a victory for President Bill Clinton and business groups eager to tap the vast Chinese marketplace, potentially the world's largest with 1.3 billion consumers.
The last major hurdle was cleared on Wednesday when senators rejected a controversial amendment to impose sanctions on China for its alleged role in weapons proliferation.
The Senate went on to defeat the final six amendments on Thursday, ending a two-week drive by Beijing's critics to scuttle the bill by amending it.
"It's a done deal," said Myron Brilliant, managing director for Asia at the U.S. Chamber of Commerce.
Senators have agreed to six hours of closing debate before Tuesday's historic vote on the legislation, which would bring an end to the annual ritual of reviewing Beijing's trade status and guarantee Chinese goods the same low-tariff access to the U.S. market as products from nearly every other nation.
In exchange for the benefits, China has agreed to open a wide range of markets to U.S. businesses under the terms of an agreement setting the stage for Beijing to join the Geneva-based World Trade Organization (WTO) later this year.
Clinton has made passage of permanent normal trade relations for China a top legislative priority for his final year in office.
The president's allies in the trade fight argued that it would benefit the U.S. economy and national security by encouraging Beijing to open its markets and eventually its political system.
Labor unions, a key Democratic constituency, warned that closer trade ties could cost hundreds of thousands of American workers their jobs, as Chinese goods flood the U.S. market and companies move their factories to China to take advantage of lower wages.
A bitterly divided House of Representatives approved the legislation in May after an unprecedented lobbying campaign by pro-trade business groups.
There was never much doubt about the outcome in the Senate, where free-trade initiatives typically garner bipartisan support.
Sixty-nine senators said in a Reuters poll they would support permanent normal trade relations, more than enough to override a vote-blocking filibuster and ensure final passage in the 100-member chamber.
Nevertheless, a small but determined band of China critics mounted a last-ditch offensive, offering amendments that would crackdown on Chinese weapons sales and forced abortions, and call for Beijing to improve human rights and labor standards.
The final amendment, by South Carolina Democrat Ernest Hollings, would have limited U.S. Export-Import Bank financing in China. It was defeated by voice vote.
If any of the amendments had been adopted, the China bill would have been sent back to the House, where it stood little chance of passage so close to the November election, congressional leaders said.