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Increased China
trade possible

A U.S trade rep says Hawaii's
exports would grow if the
Chinese get normal
trade status

Hawaii courting business delegates
Hawaii businesses seek connections

By Susan Kreifels
Star-Bulletin

The U.S. Trade Representative predicted today that Hawaii's exports, specifically agriculture and fish products, would grow if China gets permanent normal trade relations with the United States.

But Charlene Barshefsky says approval of permanent normal trading status will require support from Hawaii's congressional members.

"Certainly Hawaii's economy is well positioned to serve the Chinese market to a greater degree," Barshefsky said in an interview with the Star-Bulletin. "There's very substantial opportunities this agreement will open for Hawaii's economy."

Barshefsky, here for the general meeting of the Pacific Basin Economic Council, will meet with Gov. Ben Cayetano but said nothing specific was up for discussion.

Barshefsky said the Congressional Research Service estimated that within five years, U.S. exports would nearly double from $14 billion to $26 billion under the agreement negotiated for China's permanent trade status. That agreement assures trade concessions from China.

She emphasized that China's entry into the World Trade Organization was not an issue. She said that will happen regardless of what Congress does.

But if China does not get permanent U.S. trade status, it has no obligation to extend WTO accession agreements to the United States. "It would open China to the world but not to our own farmers and workers."

By Ken Sakamoto, Star-Bulletin
Charlene Barshefsky, U.S. trade representative, in Honolulu for
the Pacific Basin Economic Council meeting, says Hawaii would
likely benefit greatly if the United States approves
a trade deal with China.

Granting the trade relation to China faces opposition in Congress because of China's human rights records and recent threats to Taiwan. Currently, China must seek annual approval of its trade status.

Barshefsky said during a press conference that a number of human rights organizations have given support to the permanent normal trade relations agreement because it it "the most important step toward economic reform in 20 years."

She said the agreement is also in America's strategic interests because it reduces the risk of war, she said. "China should be inside the tent playing by the rules," she said.

Barshefsky said the "jury was still out" on whether Congress will grant the permanent trade relations with China. Democrats are not united on trade relations.

"It will require support of Hawaii's congressional delegation," she said.

Barshefsky said the Clinton administration has reiterated the one-China policy and supports peaceful dialog between Taiwan and China. Taiwan will only be accepted into WTO after China. "There's understanding among Asians. They don't want to see tensions increase with China."

According to a fact sheet from the U.S. Department of Agriculture, in 1998 Hawaii exported $111 million in agricultural products, including $55 million in fresh and processed fruit exports. Under China's WTO accession agreement, China will significantly reduce tariffs on a wide range of fresh fruit and processed fruit products by 2004, including 57 percent cuts on citrus fruit juices and 43 percent on other juices.

Hawaii's tree nut exports were estimated at $7 million in 1998. Under WTO, China's tariffs on key tree nuts will drop by up to 71 percent by 2004. The department also said increased consumption is leading to greater Chinese imports of fishery products. Under WTO, China will cut tariffs by up to 66 percent in that area.

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PBEC