On her first trip to Beijing as U.S. Trade Representative, Susan Schwab tried to nudge China toward a larger role in the World Trade Organization and aired concerns the country has not lived up to the obligations to which it committed when it joined the global trading body in 2001.
During the eight-day trip that ended Tuesday and included stops in Singapore and Malaysia, Schwab tried to drum up support for reviving the WTO’s Doha Round trade talks, which collapsed last month after countries could not agree on how to lower barriers to agricultural trade.
Schwab met with China’s Commerce Minister, Bo Xilai, on Monday.
“The breakdown of the Doha Round trade talks late last month was a major disappointment for all who believe in the power of trade to promote economic development, to expand opportunities and to facilitate cooperation among nations,” said Schwab, in remarks prepared for a luncheon in Beijing Tuesday that was cosponsored by the American Chamber of Commerce in China and the U.S.-China Business Council.
Launched in 2001, the Doha talks are an effort to reduce tariffs levied on agricultural and industrial goods, such as textiles and apparel, as well as services, while also reducing the subsidies countries use to prop up key industries, which can distort global prices and trade and hinder industrial development in poor countries.
“Now is the time for China to play a greater role,” said Schwab. “China needs to reassure other countries that they can open their markets to Chinese products and services because Chinese markets will be open and welcoming to their products and services.”
A failed Doha Round also could lead to greater protectionism, said Schwab, pointing to several bills in the U.S. Congress that urge a “get-tough” stance with China aimed at the country’s trade and monetary policies by introducing tariff penalties.
Schwab, who took over as USTR in June, also reiterated the Bush administration’s stance the trade relationship with China lacks balance and durability.
“This disparity is due in part to China’s failure to honor certain commitments, including its failure to adequately enforce intellectual property rights, its efforts to protect and support certain domestic industries and its delay in fulfilling certain market-opening obligations,” she said.