Import investigations: China's accession to World Trade Organization; assessment of economic effects on U.S.,

[Federal Register: January 25, 1999 (Volume 64, Number 15)]

[Notices]

[Page 3714-3715]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr25ja99-80]

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.

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 filedin 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. 99-1637Filed1-22-99; 8:45 am]

   BILLING CODE 7020-02-P