Trade Remedies and The U.S.-China Bilateral WTO Accession Agreement

The November 1999 U.S.-China bilateral agreement on China's accession to the World Trade Organization (WTO) addresses a range of U.S. foreign trade and investment concerns related to China's entry into the WTO. In particular, U.S. import-sensitive industries are wary of the impact from increased imports that might result from China's WTO membership. The bilateral agreement allows the United States to continue to use, at least temporarily, special trade remedy procedures against surges of imports and against dumped and subsidized imports from China that it has used since the two countries reestablished trade relations in 1980. These procedures are more favorable to import-sensitive industries than those normally used in trade with other established WTO members. They are viewed by some observers as a policy tool to cushion the potentially adverse impact of increased China trade on U.S. industries. Codification of the safeguard provision was included in H.R. 4444 , the legislation that granted China PNTR ( P.L. 106-286 ), and that was signed into law on October 10, 2000. This report examines the trade remedy provisions of the U.S.-China bilateral agreement in relation to the relevant U.S. trade laws and to WTO agreements and principles. It will also examine the potential impact of these provisions on U.S.-China trade and their legislative implications. For more information see CRS Issue Brief IB91121, U.S.-China Trade Issues . This report will be updated as events warrant.