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1 1 (July 21, 2000)

handle is hein.crs/crsahjn0001 and id is 1 raw text is: Order Code RS20582 Updated July 21, 2000 China and the WTO: Labor Issues Mary Jane Bolle Specialist in International Trade Foreign Affairs, Defense, and Trade Division Summary China's prospective membership in the World Trade Organization (WTO) raises issues among some U.S. workers and organized labor about job and wage security. Many labor groups argue that Mexico's threat to U.S. jobs and wages since the North American Free Trade Agreement (NAFTA) could be dwarfed by China's threat as a result of closer economic ties. China's average manufacturing wages, at about $0.25 per hour, are about one-fifth as great as Mexico's, and about one-fiftieth as much as total compensation for manufacturing workers in the United states. China's labor force is 18 times that of Mexico and five times that of the United States. Most business groups argue that U.S. businesses in China pay much higher than average wages, that free trade creates both winners and losers, and that China's WTO accession will greatly expand U.S. exports and jobs. On May 24, 2000, the House passed H.R. 4444 granting permanent normal trade relations (PNTR) with China. It would also set up a Congressional-Executive Commission to monitor Beijing's human rights compliance and codify anti-surge protection measures contained in the U.S.-China bilateral agreement. Related legislation includes proposals for an expanded adjustment assistance program for workers displaced from their jobs by possible increased trade with China. The Senate is not likely to vote on its version of PNTR legislation (S. 2277) until September. China is the world's most populous nation. It has a labor force of about 700 million, five times that of the United States (at about 130 million). China's imminent membership in the World Trade Organization (WTO)l has crystalized concerns of some U.S. workers 1 On November 15, 1999, the United States and China announced a bilateral agreement on China's WTO membership whereby China, upon its WTO accession, would reduce or eliminate barriers to trade in agriculture, industrial products, and services. Before the full WTO membership can vote on its WTO entry, China must complete bilateral negotiations with other key WTO members and the WTO working party. In addition, to assure that the WTO agreements would fully apply, Congress would have to pass legislation granting Permanent Normal Trade Relations (PNTR) status to China- a status currently renewed on an annual basis. Source: U.S. Library of Congress. Congressional Research Service. China and the World Trade Organization, by Wayne M. Morrison. CRS Report RS20139. Also, the author would like to thank Wayne Morrison for (continued...) Congressional Research Service + The Library of Congress CRS Report for Congress Received through the CRS Web

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