WASHINGTON-U.S. Trade Representative Charlene Barshefsky, avoiding the dicey question of whether China will live up to trade commitments to open wireless and other markets, last week said she expected the next administration-whether Democratic or Republican-to continue advocating global trade in the future.
“With the president’s signature on the legislation for permanent normal trade relations with China, and as China enters the final stages of the WTO (World Trade Organization) accession process, we are nearing the close of perhaps the central debate in American trade policy over the past decade,” said Barshefsky in a speech last Thursday at the National Press Club.
Telling situation
In her oral remarks, Barshefsky skipped over a highly embarrassing-but telling-situation that forced Clinton to dispatch Barshefsky to Beijing two weeks ago to salvage the U.S.-China trade agreement after China balked at following through on trade commitments.
China refuted the allegation, and replied that U.S. and European trade negotiators were trying squeeze more concessions before the end of the latest round of multilateral trade talks.
Because the China trade bill is the crowning achievement of Barshefsky in her role as Clinton’s top trade negotiator, any backsliding by China would sour her reputation and cut into the president’s legacy.
Barshefsky’s written speech was strongly worded regarding China. “PNTR, of course, is not the end of the work,” she stated. I have just returned from Beijing, where we crystallized for the Chinese the issues remaining in Geneva (WTO headquarters) among all of China’s principal trading partners. The United States, will proceed, as at each earlier stage, on the basis of an enforceable, commercially meaningful agreement. The timetable for entry, and implementation of PNTR under the law, depends on China’s ability to conclude the multilateral process consistent with this requirement.”
It is not clear why Barshefsky omitted from her speech clearly the most pressing trade issue of the day. One possible explanation can be found in the theme of her speech, which emphasized the global geopolitical importance of trade in the post-Cold War era.
The wireless industry and other U.S. business sectors are anxious to expand into China, which-because of its 1.3 billion people and inadequate telecom infrastructure-is an inviting overseas prospect.
China to date has shown itself to be unpredictable in dealing with wireless telecom trade.
Indeed, part of the snag two weeks ago reportedly was China’s insistence that U.S. wireless firms and investors must deal with three state-controlled telecom carriers. That would appear to be a departure from the U.S.-China trade agreement, which further opens China’s wireless equipment market and allows up to 50 percent investment in Chinese wireless carriers.
Prior to that flare-up, China last year abruptly dissolved U.S. interests in Chinese wireless telecom projects.
To her credit, Barshefsky is arguably the most accomplished telecom trade negotiator ever for the United States.
Cuba relations
On a related front, Congress last week passed and sent to President Clinton legislation partially removing trade sanctions against Cuba, which date back to 1962. The bill is seen as a first step to eventually restoring normal trade relations with Cuba, an enviable business prospect for U.S. wireless firms and other high-tech companies.
Sen. Max Baucus (D-Mont.), arguably the Senate’s biggest supporter of U.S.-China trade, has begun pushing for more liberalized trade with Cuba. Baucus himself said Cuba represents a tremendous trade opportunity for U.S. telecom firms and American business sectors.
Duty-free cyberspace
Besides helping negotiate global telecom and information technology trade agreements covering equipment and services, Barshefsky just completed winning a commitment from WTO members to keep cyberspace duty free.
She said USTR will soon inaugurate a new “networked economy” initiative aimed at fostering trade in high-tech manufacturing and services. In addition, Barshefsky said the United States plans to address intellectual property protection in the Digital Age and how to bridge the “digital divide.”
Looking ahead, Barshefsky said,”This agenda, which will build on the Clinton record which, in turn, built on the Bush record, will complete the journey from the divisions of the Cold War to the integrated and wired world that we are rapidly entering.
This will be as demanding an agenda as the one that we took up in 1993, but the next administration will take it up with a vastly healthier economy, a much more confident public and a stronger and more secure nation.”
