WASHINGTON — A bill was introduced Thursday that would deny the low tariffs granted under China’s most-favored-nation trade status to goods made or exported by the Chinese government or military on the grounds that Beijing has not improved its human rights record.
Sponsored by Senate Majority Leader George Mitchell (D., Maine), House Majority Leader Richard Gephardt (D., Mo.), Rep. David Bonior (D., Mich.) and Rep. Nancy Pelosi (D., Calif.), the measure drew immediate opposition from retail lobbyists, who were on Capitol Hill arguing against the plan late Thursday afternoon.
“We have real concerns this is running counter to the President’s policy,” said Rob Hall, vice president, government affairs counsel for the National Retail Federation. Hall said the bill could jeopardize about 170,000 U.S. jobs dependent on trade if China decides to retaliate.
Retailers strongly supported President Clinton’s decision last month to uncouple China’s trade status from its human rights policies and to extend without reservation China’s MFN status.
None of the bill’s sponsors could gauge the amount of support it would have in the House or Senate.
Mitchell said the sanctions would affect about $5 billion of the $31 billion in exports the Chinese send yearly to the U.S.
The sanctions bill also would urge U.S. firms operating in China to adopt a voluntary code of conduct that follows international human rights principles; insures that employment of Chinese citizens is not discriminatory in terms of sex, ethnic origin or political beliefs; prohibits slave labor; preserves the rights of workers to bargain collectively and discriminates against mandatory political indoctrination on business premises.
Hall said retailers also objected to the idea of legislation setting a voluntary code of conduct because it could ultimately become mandatory.
In contrast, the President called on business to voluntarily adopt a code of principles for operating abroad but did not propose legislation.
Sen. Max Baucus (D., Mont.), chairman of the Senate Trade Subcommittee, called the bill a “serious mistake” in a Senate speech.
“It is foredoomed to failure,” Baucus said. “A majority in the Senate supports the President. With about 50 legislative days remaining, and health reform, GATT, welfare reform and much more left to do, we should concentrate on the people’s business rather than a debate with a foregone conclusion.”
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Baucus also noted that sanctioning goods made or exported by the Chinese government would burden the Customs Service by requiring it to determine which goods are of military origin, “perhaps causing the collapse of Customs’ existing efforts to stop imports of prison labor goods and textile transshipments.”