[Federal Register Volume 64, Number 15 (Monday, January 25, 1999)]
[Notices]
[Pages 3714-3715]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-1637]
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INTERNATIONAL TRADE COMMISSION
[Investigation 332-403]
Assessment of the Economic Effects on the United States of
China's Accession to the WTO
AGENCY: United States International Trade Commission.
ACTION: Institution of investigation and notice of opportunity to
submit comments.
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EFFECTIVE DATE: January 19, 1999.
SUMMARY: Following receipt on December 21, 1998, of a request under
sec. 332(g) of the Tariff Act of 1930 (19 U.S.C. 1332(g)) from the
United States Trade Representative (USTR), the U.S. International Trade
Commission (the Commission) instituted investigation No. 332-403,
Assessment of the Economic Effects on the United States of China's
Accession to the WTO. The Commission plans to submit its report to the
USTR by June 1, 1999.
FOR FURTHER INFORMATION CONTACT: Arona Butcher, Office of Economics,
(202-205-3301) or James Stamps, Office of Economics (202-205-3227). The
media should contact Margaret O'Laughlin, Office of External Relations
(202-205-1819). Hearing impaired individuals are advised that
information on this matter can be obtained by contacting the TDD
terminal on (202-205-1810). General information concerning the
Commission may also be obtained by accessing its Internet server
(http://www.usitc.gov).
SUPPLEMENTARY INFORMATION:
Background
As requested by the USTR, the Commission will provide in its report
an assessment of the probable economic effects on the United States of
China's accession to the World Trade Organization (WTO). As requested,
the Commission will conduct a comparative static analysis. The analysis
will be based on actual trade and related economic variables from a
recent representative, historical period. It will reflect, to the
extent possible, how those trade and related economic variables would
have appeared in that same period had China been a member of the WTO
with all adjustments made that would result from China's lowering and
binding its tariffs, accepting the disciplines on non-tariff barriers,
and complying with the WTO.
As requested, the Commission will report on standard U.S. economic
variables. These will include (1) aggregate exports and imports with
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China and the world, employment, average labor productivity, average
labor compensation, and gross domestic product, and (2) changes in U.S.
trade, investment, output, and employment at the sectoral level and
changes in consumer prices of various affected goods and services. The
Commission will also provide a profile of China's trade and investment
patterns and will estimate or discuss, to the extent possible, the
effect of WTO accession on China's pattern of trade, rate of economic
growth, and internal economic reform process.
With regard to Chinese tariff reductions, the Commission will make
two assessments: it will consider a 25 percent and a 50 percent across-
the-board cut in Chinese tariff rates, with each tariff reduction taken
in turn from two sets of base rates'from China's 1992 tariff rates and
from China's 1996 tariff rates (or the most recent feasible year if
1996 data are not available).
As requested, the Commission will seek to assess changes in U.S.
trade, U.S. foreign investment, and the U.S. domestic economy resulting
from certain non-tariff aspects of a possible accession agreement. The
Commission will provide a quantitative assessment of the following to
the extent possible, or a qualitative assessment where either data or
methodological limitations preclude quantitative estimates:
1. The elimination of China's WTO-inconsistent licensing, quota,
and tendering requirements;
2. A comparison of the current trade situation with China to the
institution of tariff rate quotas as part of an accession package on
the following agricultural products: corn, cotton, oilseeds, rice,
sugar, vegetable oils, wheat, wool, and wool tops;
3. The elimination of China's trade-related investment measures
such as export performance requirements, local content, and trade and
foreign exchange balancing;
4. Market openings in the following Chinese service sectors:
distribution (including Commission agents, wholesaling, retailing, and
franchising); financial services (including insurance);
telecommunications (including basic and value-added services); tourism
and travel; land-based air courier services; business services
including professional services, consultancy and advertising; and
business services auxiliary to distribution such as rental and leasing
of equipment, maintenance and repair, packaging, storage, and
warehousing;
5. An analysis of the effect of China's compliance with WTO rules
on or affecting transparency, national treatment, judicial review,
state trading, offset, and protection and transfer of technology;
6. The effect of the removal of U.S. quantitative restrictions on
textile and apparel imports on all WTO members relative to the
inclusion of China, in the context of the U.S. bilateral agreements on
textiles and apparel with China; and
7. Any other change in the conditions of trade with China that is a
result of accession and likely to materially affect U.S. trade and
investment flows.
Public Hearing
A public hearing in connection with this investigation will be held
in the Commission Hearing Room, 500 E Street, SW, Washington, DC 20436,
beginning at 9:30 am on February 23, 1999 (and 24th, if needed). All
persons will have the right to appear by counsel or in person, to
present testimony, and to be heard. Requests to appear at the public
hearing should be filed in writing with the Secretary, United States
International Trade Commission, 500 E Street, SW, Washington, DC 20436,
on or before noon February 12, 1999. Persons testifying at the hearing
are encouraged to file prehearing briefs or statements; the deadline
for filing such briefs or statements (a signed original and 14 copies)
is noon February 12, 1999. The deadline for filing posthearing briefs
or statements is March 9, 1999. Any confidential business information
included in such briefs or statements or to be submitted at the hearing
must be submitted in accordance with the procedures set forth in
section 201.6 of the Commission's Rules of Practice and Procedure (19
CFR 201.6). In the event that, as of the close of business on February
12, 1999, no witnesses are scheduled to appear at the hearing, the
hearing will be canceled. Any person interested in attending the
hearing as an observer or non-participant may call the Secretary to the
Commission (202-205-1816) after February 12, 1999, to determine whether
the hearing will be held.
Written Submissions
U.S. firms and other interested persons are invited to submit
written statements concerning any of the matters to be addressed in the
report. The Commission is especially interested in receiving:
1. Information regarding the likely economic effects of a 25
percent or a 50 percent reduction in current Chinese tariff rates on
the interests of specific U.S. firms, industries, investors, consumers,
or groups of workers;
2. A list of Chinese non-tariff barriers ranked according to the
degree of concern to the interests of specific U.S. firms, industries,
investors, consumers, or groups of workers; and
3. Quantitative estimates (in percentage terms, if possible) of the
current economic effects of Chinese non-tariff barriers, and estimates
of the potential economic effects on U.S. exports, employment, and
investment of reducing or eliminating these non-tariff barriers.
Commercial or financial information that a person desires the
Commission to treat as confidential must be submitted on separate
sheets of paper, each clearly marked ``Confidential Business
Information'' at the top. All submissions requesting confidential
treatment must conform with the requirements of section 201.6 of the
Commission's Rules of Practice and Procedure (19 CFR 201.6). All
written submissions, except for confidential business information, will
be made available for inspection by interested persons in the Office of
the Secretary to the Commission. To be assured of consideration by the
Commission, written statements relating to the Commission's report
should be submitted at the earliest practical date and should be
received not later than March 9, 1999. All submissions should be
addressed to the Secretary, United States International Trade
Commission, 500 E Street SW, Washington, D.C. 20436. The Commission's
rules do not authorize filing of submissions with the Secretary by
facsimile or electronic means.
By order of the Commission.
Issued: January 20, 1999.
Donna R. Koehnke,
Secretary.
[FR Doc. 99-1637 Filed 1-22-99; 8:45 am]
BILLING CODE 7020-02-P
