6.
Separately, a joint resolution disapproving China's MFN status in 1992/93 was introduced in the House of Representatives on 5 June. On 21 July, the joint resolution passed the House by a vote of 258 to 135. The Senate however did not act on the disapproval resolution before the Congressional summer recess and thus the resolution became a de facto dead bill.
7. On 21 July, the House also passed the 'conditionality' bill by a vote of 339 to 62. The other 'conditionality' bill similar to the House's one was passed by the Senate on 14 September by a voice vote.
8.
The above two bills will now be considered by a joint congressional committee and a compromise bill incorporating provisions of the two bills produced. The compromise bill will then be voted by the House and the Senate again. If passed it would be sent to the President for enactment. President Bush is expected to veto the bill if it comes to him during his current term of office. The President's veto could however be overridden by a two-thirds majority in both the House and the Senate.
Section 301 Action Background
9.
Section 301 action is retaliatory action against foreign practices found to be jeopardizing US trade. Under Section 301 of the US Trade Act of 1974, the US Administration is authorized to investigate foreign practices which are unjustifiable, unreasonable or discriminatory and which burden or restrict US commerce, and to retaliate against the offending country's exports to the US unless a satisfactory resolution to the trade dispute is reached within statutory deadlines.
Present Position
10.
In March 1991, the United States
the United States Trade Representative (USTR) published its annual National Trade Estimates Reports. These contained a long list of Chinese trade barriers such as high tariffs, import bans and quotas and technical barriers to trade. Consultations on market access were subsequently held with the Chinese. On 30 September, China handed over a formal response to the US on concrete
on concrete measures to lower its market access barriers. However, the US considered the Chinese response unsatisfactory and on 10 October the USTR formally announced its decision to initiate a Section 301 investigation of China's market access barriers to US imports. The USTR is required to complete investigation within one year and to determine whether actionable practices exist, and what retaliatory action is to be taken within 30 days after the determination, i.e. not later than 10 November 1992.
11.
Several rounds of consultations have been held since the initiation of the Section 301 investigation. Progress was made in three out of the four problem areas: import licensing, tariffs and transparency of trade policy. However, little progress was made in the fourth problem area of standards and testing.