WASHINGTON-The Clinton administration progressed in getting more telecommunications and information technology products shielded from tariffs, but last week acknowledged problems persist in convincing China to open its market and hinted the United States was ready to consider retaliation.
“Our companies do not have market access that they need to have, and there are simply too many barriers,” said Commerce Secretary William Daley at a press conference prior to the 12th meeting of the U.S.-China Joint commission on Commerce and Trade here.
While U.S. wireless equipment manufacturers-like Motorola Inc. and Lucent Technologies Inc.-have made inroads into China’s huge emerging market, American firms generally have been denied access to China’s telecom service sector.
The United States is approaching a $60 billion trade deficit with China, something that is becoming a major political issue. Indeed, Undersecretary of Commerce David Aaron observed, “It may well be that trade is the most disturbing factor in the relationship.”
Daley said U.S. trade action against China is not imminent, though the matter could receive serious attention early next year.
The U.S. trade dispute with China is hurting China’s efforts to gain membership in the World Trade Organization.
Meanwhile, U.S. Trade Representative Charlene Barshefsky said a breakthrough in negotiations has paved the way for an agreement in early 1999 to eliminate tariffs on an expanded range of telecom and information technology equipment.
The package of products in ITA II, which builds on the Information Technology Agreement of 1996, includes rechargeable batteries for mobile phones and computers and other consumer electronic accessories and products.
ITA I covers $600 billion in worldwide trade of telecom and information technology goods.
“Commitments … in Geneva from participants accounting for more than 85 percent of world trade in information technology signals that we are on the road to concluding ITA II early next year,” said Barshefsky.
The Associated Press and Bureau of National Affairs Daily Report for Executives contributed to this report.
