CHINA'S MFN STATUS: CALENDAR OF EVENTS

1.

The President decides on MFN renewal only one month before it is due to expire. Thus his approval of renewal on

28 May 1991 was for the period 3 July 1991 to 2 July 1992.

Given the complexity of trade and the time needed to react

to changed conditions this is an odd way of operating but

it is so.

2.

Congress can attempt to overturn MFN status at any time. Unless the Chinese do something particularly heinous (such

as supply missiles to Syria or Pakistan) this is unlikely to

be successful. In the past, Congress has preferred to try

to attach conditions for MFN renewal. They could, in

theory, do so at any time, but have usually tried to do so

for the annual June renewal.

The timetable so far this year and as anticipated is as

follows:

1992

25 February

2 March

11 March

18 March

Senate passed Bill to set conditions on

renewal for 1992/93. (Vote 59-39 fell

short of 2/3 majority required to override Presidential veto).

Senate Bill vetoed by President.

House voted (357-61) to override the

President's veto of the Congress Bill. (ie above the 2/3 majority).

Senate voted (60-38) to override the

Presidents veto, but failed to obtain the two thirds majority necesseary.

KIPAIY/1

TG

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