Big deficit prompts U.S. to rethink policy
on trade
Miami Herald
BY MARK DRAJEM
Bloomberg News Service
February 15, 2006
WASHINGTON - The Bush administration Tuesday reiterated its concern about
the record trade deficit with China and said it will refocus its policies
toward the Asian nation, which will include the hiring at least a dozen new
people to help ensure China's compliance with trade rules.
China must open its market to more imports, crack down on the piracy of
copyrighted goods and curb subsidies to exporters in order to lower its record
trade surplus with the U.S., the U.S. Trade Representative's office in
Washington said in a 29-page review of trade policy toward China.
"Our bilateral trade relationship with China today lacks equity, durability
and balance in the opportunities it provides," U.S. Trade Representative Rob
Portman said in a statement before the start of a news conference. "The time
has come to readjust our trade policy with respect to China."
The trade office said much of its focus will involve:
Fair market access for telecommunications, financial services, healthcare
and direct-sales companies; subsidies; labor law; regulatory transparency; and
environmental protection.
New staff will need to be hired in Washington and Beijing, and improvements
made in gathering and reviewing trade data, the trade office said.
The details of the administration's new approach follows increasing
criticism from Democrats in Congress, labor unions and some small manufacturers
that the Bush administration hasn't done enough to curb what they call China's
unfair trading practices.
The United States logged a record $202 billion trade deficit with China last
year, accounting for more than a quarter of the overall U.S. trade gap, the
Commerce Department said Feb. 10.
"The enormous scope and scale of the changes that have occurred in China's
trading posture and in our bilateral trade relationship pose continual
challenges," the report said.
The Bush administration is trying to head off proposals in Congress to
impose punitive tariffs or import quotas on Chinese goods, proposals the
administration says would undermine the benefits of commercial engagement with
China. The administration at the same time is laying out specific changes the
Chinese should take to allow more U.S. exports and narrow the trade gap.
Many of the items listed in the report have been highlighted repeatedly by
the administration in the past year. By listing all in one document, the U.S.
increases pressure on China and signals to lawmakers that it's taking their
concerns to heart, an analyst said.
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