DATE=5/15/2000
TYPE=CORRESPONDENT REPORT
TITLE=CHINA-EU-WTO (L)
NUMBER=2-262365
BYLINE=ROGER WILKISON
DATELINE=BEIJING
CONTENT=

VOICED AT:

INTRO:  China and the European Union have resumed 
talks in Beijing on China's accession to the World 
Trade Organization.  V-O-A correspondent Roger 
Wilkison reports the absence of a deal with the E-U is 
the only major obstacle to China's entry into the body 
that makes the rules for global trade.

TEXT:  E-U Trade Commissioner Pascal Lamy sat down for 
90 minutes with Chinese Foreign Trade Minister Shi 
Guangsheng Monday after calling for greater Chinese 
flexibility in the negotiations.  China has been 
reluctant to grant the E-U bigger concessions than it 
gave the United States in a market-opening deal last 
November.  But Brussels has insisted that the China / 
U-S deal only satisfies about 80 percent of its 
concerns.

Specifically, the E-U wants more concessions in 
telecommunications, financial services - including 
insurance - and automobiles.  Before leaving Brussels, 
Mr. Lamy said he would press China to allow foreign 
mobile-phone operators to take stakes of at least 50 
percent in joint ventures and indicated he would not 
budge from that stand.

Under the U-S / China deal, foreigners can take a 49 
percent stake in mobile phone services - but only 
after China has been a W-T-O member for five years.

As is the case with the U-S / China pact, any 
concessions Mr. Lamy may obtain from China would apply 
to all other W-T-O members.  If China and the E-U 
strike a deal this week, it could have an impact on a 
crucial upcoming vote in the U-S Congress.

As part of last year's U-S / China trade agreement, 
Washington must end its annual review of China's 
trading status and permanently grant Beijing the same 
low-tariff access to the U-S market that nearly every 
other country enjoys.  Otherwise, U-S firms will be 
unable to reap the benefits of the concessions 
obtained from China by U-S negotiators. 

Although the legislation is expected to pass in the 
Senate, members of the House of Representatives - 
concerned about a loss of U-S jobs and China's human 
rights situation - have expressed strong opposition to 
the bill.  The Clinton Administration, which has 
lobbied hard for the package, acknowledges that the 
vote, scheduled for next week, is too close to call.  
(Signed) 

NEB/RW/JO/KL 



15-May-2000 07:41 AM EDT (15-May-2000 1141 UTC)
NNNN

Source: Voice of America
.