Global Policy Forum

By Elizabeth Olson

The World Trade Organization has set a new date, in early December, to try to complete China's entry into the organization. Negotiators plan to meet on Dec. 5 through 8 in the hope of sealing China's entry either by the end of this year or sometime early in 2001.

Before it can become a member, however, China must iron out agreements with its trading partners in a number of crucial areas, including intellectual property rights. Long Yongtu, the Chinese negotiator, insisted that the agreement would be wrapped up during 2000. "Given the kind of atmosphere and momentum we have generated, it's very likely," he said at the conclusion of last week's negotiating round on China's accession terms. Participants said the atmosphere, gloomy during the last round in September, was congenial and productive at the gathering, which took place from Wednesday to Friday.

"China already has one foot in the place," said the W.T.O.'s deputy director general, Paul-Henri Ravier. The amount of work still ahead, which includes synthesizing all of China's bilateral agreements into one comprehensive international accord, means, however, that the country might miss the goal of becoming a member by the end of the year. Mr. Ravier, who is chairman of the talks, and Mr. Long said there was agreement on texts for accords in two crucial areas to assure foreign companies that China was complying with the organization's rules. The first involves setting out rules for administering import tariffs, which cover the amount of goods that can be imported and the tariffs to be levied. The second accord covers procedures for independent judicial review of disputes involving foreign companies, providing explanations when import licenses are refused and uniform enforcement of the global trade rules across China. Besides intellectual property rights, other important areas, like agriculture and anti-dumping duties, must be settled. In Beijing, a United States assistant trade representative warned publicly last week that counterfeiting of products in China was "out of control." In the mid-1990's, the two powers went to the brink of a trade war over such piracy until China signed an agreement pledging to tackle the proliferation of knock- offs of brand-name products.

The country also has yet to complete agreements on banking, insurance and other commercial services, which require changes in its domestic legislation. Showing the pressure Beijing is under, a team of Chinese bankers recently showed up unannounced in Switzerland, asking for guidance from Swiss banking officials for help in revamping their banking laws. Diplomats were relieved that the end was near for China's 14-year pursuit of W.T.O. membership, a process that has been snarled in internal and international politics. No sooner did the United States Congress grant permanent normal trade status to China in September than the W.T.O. talks broke down in angry exchanges and accusations. Mr. Long, who is China's vice trade minister, complained that China was being asked to concede more in the trade arena than other developing countries.

In unusually blunt remarks, the former chairman of the talks urged the governments of member countries to re-examine negotiating positions before resuming talks. After his remarks, the United States trade representative, Charlene Barshefsky, and the European Union trade commissioner, Pascal Lamy, went separately to Beijing to jump- start the talks. Also helping to move things along was China's announcement that it had settled its differences over insurance licenses with the Europeans and completed bilateral talks with Bolivia, Costa Rica and Venezuela. That leaves Mexico the main country yet to conclude a nation-to-nation trade deal with China.

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