U.S. keeps China-WTO report under wraps

WASHINGTON -- The Clinton administration will keep confidential a long-awaited report exploring what impact China's membership in the World Trade Organization would have on the U.S. economy.

That decision, coupled with the administration's moves to delay the report, underscores White House concern about airing any potential criticism of its push to get China into the Geneva-based trade body, policy experts say.

The report may stoke that criticism, since it will conclude that at least one U.S. industry -- textiles -- would "clearly be hurt" by China's WTO entry, according to an internal document from the report's author, the independent International Trade Commission, that was obtained by Bloomberg News.

Seattle, which will play host to the WTO Nov. 30 to Dec. 3, is far from the textile manufacturing centers, and is a center of trade with China.

All the major Seattle-area companies doing business with China support China's membership in the WTO, said Joe Borich, executive director of the Washington State China Relations Council.

Such support is not always without strings. Microsoft, for example, says it supports China's entry into the WTO under an agreement that shows respect for the rule of law and strong protection for intellectual property. But Chinese accession to the trade group is opposed by others, including unions.

AFL-CIO President John Sweeney opposes it, chiefly on the grounds that China does not recognize minimum labor standards and the right to organize independent unions.

Still, the administration has made WTO membership a cornerstone of its "constructive engagement" policy with China, saying it would force the government to lower tariffs and investment barriers and be a boon to U.S. companies.

Relations between the countries have been strained by NATO's bombing of the Chinese Embassy in Belgrade and allegations of Chinese stealing nuclear secrets. As a result, the WTO talks with China have collapsed, and the administration is eager to resume them.

The U.S. trade representative's office wouldn't comment on the details of the trade commission report or why it isn't being released publicly.

"It is confidential because negotiations are ongoing," said Amy Stilwell, a spokeswoman for the U.S. trade representative.

That position has irritated critics.

"What is the point of keeping it secret?" said Alan Tonelson, a research fellow at the U.S. Business and Industry Council, which represents small businesses.

Tonelson said the report -- which will be available to Congress but not the press -- should be released because China's WTO entry is "a major public policy debate."

The report by the International Trade Commission, an autonomous U.S. agency that measures the impact of trade on domestic industry, is due to be submitted to the administration next week.

While it's not unusual for such reports to be restricted to congressional viewing, the internal commission document, dated Jan. 27, said the office of the trade representative delayed its request for the report for almost two years, most likely out of concern it would affect the WTO talks.

"In each instance, a request (from the trade representative) seemed likely, but died for reasons that are not entirely clear, but probably were due to the reluctance to request a study that might damage negotiations," the document said.

While U.S. Trade Representative Charlene Barshefsky and other administration officials say a "commercially viable" WTO agreement with China would bolster U.S. industry, the report could undermine that position.