China Reaches Trade Agreement with EU

BEIJING, China (19 May 2000)--China and the European Union have reached a trade agreement that could open the doors to China's entry into the World Trade Organization (WTO). Though no specifics were released concerning the benefits to either party, the deal could lead to permanent low-tariff access to the US market for China. US Congress will debate the issue next week. EU negotiators believed an agreement with Beijing would sway wavering members of Congress into supporting China's permanent trading rights. The European Union has said that the landmark market-access agreement China reached with the United States in November met only 80% of Europe's needs. reports the AP. The EU wanted greater access to China's telecommunications, financial and automobile sectors and lower tariffs on gin, cognac and other items. China has been trying to join the WTO for the last 14 years and has set its sites on membership this year. The 15-member EU was the largest of six remaining WTO members yet to conclude the separate market-access agreements necessary for Beijing's membership. Chinese leaders see WTO membership as a way to secure needed export markets and foreign investment and force long-protected state industries to make capitalist reforms. (JW)