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4.
Wolf pointed out that a further complicating factor for conditional MFN was the Chinese GATT accession. Once China became a GATT member, the US could not,, consistent with its GATT obligations, withdraw MFN treatment.
5.
Some questioners suggested that the aim of the bid to put conditions on MFN was to criticise President Bush's approach. So if Clinton lived up to his policy of taking a tougher stance with China in other ways, pressures for legislation might diminish. Janet Nuzum, an ITC Commissioner, suggested that the trade agreement itself would reduce the pressures, since the case against MFN had been based on trade concerns as well as human rights.
6.
Wolf was asked how well the agreement would be enforced from the centre: wouldn't the provinces continue to try to place conditions on imports/investment? He admitted generally that this could be a problem - "the mountains are high and the emperor is far away" but said it was up to US industry to report such problems so they could be raised with the centre.
7.
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The response from the NAM was generally positive. I had expected questions about sectors or rules where objectives had not been met. Instead all concerned seemed pleasantly surprised by the outcome - the main aim was to preserve the agreement against hostile moves on MFN.
Pr
E Lubbis
Vivien Life
First Secretary, Trade Policy
cc:
Commercial Department, Peking BTC Hong Kong FED, FCO
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