Grassley made his appeal to the President during the final in a series of hearings of the Senate Finance Committee on China's accession to the World Trade Organization.
"It's very important for President Clinton to articulate the importance of a trade relationship with China and how much is at stake for the United States," Grassley said. "By speaking to a joint session of Congress, where the case must be made, President Clinton could provide the kind of leadership that's required from him in order to secure passage of legislation approving permanent normal trade relations for China."
Grassley is chairman of the Senate International Trade Subcommittee. His complete statement from this morning's hearing follows:
Prepared Remarks of Senator Chuck Grassley
Finance Committee Hearing ? Thursday, April 6, 2000
This is the last of three hearings the Finance Committee is holding on China's accession to the World Trade Organization. In the two previous hearings, we have examined details of the U.S.-China bilateral market access agreement, as well as human rights and national security concerns.
Today, we will look at issues relating to the enforcement of market access and other obligations China will undertake pursuant to its accession to the WTO.
As we examine these issues, we should bear in mind one important fact. The market access agreement between the United States and China is much more comprehensive than any other previous U.S.-China agreement. It covers many more areas, in much greater detail and depth.
The nature and scope of the market access concessions China has agreed to will give pork producers in Iowa, wheat farmers in North Dakota, banks in New York, and insurance companies in Connecticut unprecedented access to China's markets.
But as good as these tariff reductions and market access concessions are on paper, we must make sure we can enforce them effectively. Let me give you a specific example of my concern.
China recently signed a bilateral agricultural cooperation agreement with the United States. This agreement spells out China's commitments to open its markets to American citrus, wheat, and pork, beef, and poultry products. But it took months before China published regulations telling our meat producers how China would comply with the agreement. Finally, under great pressure by many members of this committee, including myself, China finally issued rules telling our exporters how to bring their products into China.
Just two days ago, I learned that the first American shipment of pork has reached China. I know there will be many others. This is a very significant development. One that we are watching very closely.
I very much hope we will not have to go through this type of effort to enforce the terms of our bilateral market access agreement.
Frankly, I believe one major reason we had so much difficulty enforcing the agricultural cooperation agreement is because China's legal framework is incomplete. And China's economy has endured the heavy burdens of a corruption-driven "grey economy" that has resisted these changes.
The prospect of reforming China's economy is a major reason I support China's accession to the WTO and granting China permanent normal trade relations status.
Once China is a WTO member, and subject to international rules, the reform process will be greatly strengthened. This will be better for us. It will certainly be better for China.
Opponents of China's membership in the WTO argue it won't make any difference. China will still do what it wants. But this view ignores reality. A recent study by China's central bank shows that for every $3 lent by the bank, mostly to state-owned enterprises, output increased by only $2. In other words, China's wasteful state enterprises destroyed one-third of the capital they received. China knows it must join the world trade community and live by our rules for its own economic survival.
But the most important reason I support China's accession to the WTO is that free trade helps keep the peace. The history of the last 50 years shows that, because of the GATT and the tremendous efforts we made to tear down trade barriers, and foster greater economic cooperation, free trade helped keep the peace even during the darkest hours of the Cold War.
Finally, I want to say a word about the President's leadership on getting legislation approving permanent normal trade relations for China through the Congress.
Recently, President Clinton lobbied 150 high-tech CEOs in Silicon Valley for permanent normal trade relations for China. These high-tech companies see the future. They already know how vital it is to bring China into the global trading community's forum.
I want to say to President Clinton, Mr. President, come to Congress. That's where the case has to be made, with the members of your own party.
That's why today I call on President Clinton to address a joint session of Congress on trade with China.
Unless the President makes a strong, clear case to Congress, I fear that organized anti-WTO demonstrations here in Washington next week may cause him to change his mind about China. Just as similar demonstrations in Seattle caused him to change his own administration's policy on putting enforceable labor and environmental sanctions in WTO trade agreements.
I urge the President to come to the Congress. To build bridges between the parties on this important issue. To make the moral case for free trade.
If he does that, we can get this legislation through here in 48 hours. We can start this new century with a renewed commitment to peace and prosperity. A new century that can be, like the last, an American century.