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China closer to WTO entry Accession by year end still a race of time
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CHINA and the United States announced on Saturday that both countries had reached consensus on farm subsidies and other remaining issues blocking China's bid to join the World Trade Organization (WTO).
The agreement reached in Shanghai during a meeting of the Asia-Pacific Economic Co-operation (APEC) forum last week clears the way for Washington to support China's bid at a meeting of WTO members on June 28.
“This has served to create important conditions for the 16th session of the China working group of the WTO to be held in Geneva at the end of this month, and for ending the substantive talks for China's accession to the WTO at an early date,” said Shi Guangsheng, China's foreign trade minister.
Officials released no details of the deal, but confirmed that Shi and US Trade Representative Robert Zoellick discussed farm subsidies, services such as distribution to retailers and import-export rights.
If other WTO members confirm the agreement at their meeting in Geneva, that would set the stage for China to join the world body in time for a key meeting of trade ministers in Qatar in November.
That meeting is expected to launch a new round of trade liberalization talks, following the failure of a meeting in Seattle in 1999 to agree on an agenda for negotiations.
Officials of both countries said earlier that the talks with China were positive, but neither side had indicated any consensus had been reached until Saturday.
A key sticking point had been China's insistence on being treated as a developing nation, which would let it provide farm subsidies equal to 10 per cent of its annual economic output. The limit for developed countries is five per cent.
Multilateral talks in Geneva on China's membership have stalled since January, largely because both countries couldn't find common ground.
Shi and Zoellick reached agreement in a series of meetings held during the APEC meeting in Shanghai last week.
To complete the membership process, China must show that its laws and policies are in line with WTO free-trade rules and that it has won the endorsement of other members.
China has obtained agreements from all members except Mexico, which is asking for stronger antidumping protections. But this hurdle seemed to be cleared when Mexican President Vicente Fox said in Beijing last week that his government hoped to reach agreement soon and that Mexico would not block China's accession even if no agreement will be reached between the two countries.
But some analysts warn it will still be a race for China to enter the WTO before the end of the year. They said even though China and the United States appear to have worked out their differences, the WTO must draft a complicated accession protocol that could take three to six months.
(SD-Agencies)
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