China Heads List of Problems for New Trade Official
|
|
 Associated Press Pirated DVD's being confiscated in a shop in Xian, China. Rob Portman, the new trade representative, vowed during his confirmation hearings to be tough on China and vigorously enforce trade laws. |
By ELIZABETH BECKER
Published: April 30, 2005
ASHINGTON, April 29 - Representative Rob Portman, Republican of Ohio, was sworn in as the new United States trade representative Friday after the Senate approved his nomination in the morning.
Popular with Democrats as well as Republicans, Mr. Portman's nomination was held captive for several days by Senator Evan Bayh, Democrat of Indiana, who was demonstrating his irritation over what he and other lawmakers consider the administration's ineffective trade relations with China.
With record trade deficits and mounting concern in Congress over China's handling of its currency as well as its violation of international trade laws, Mr. Portman promised lawmakers during his confirmation hearing last week that he would get tough with the Chinese and do a better job of enforcing trade laws.
The administration responded to some of that criticism Friday by releasing a report detailing what it said was China's continuing violation of intellectual property rights despite repeated public promises to rein in rampant pirating and counterfeiting.
But while the office of the United States trade representative said China's performance would land it on a special watch list, the administration stopped short of bringing a case against China to the World Trade Organization's dispute settlement panel.
In a rare sign of political agreement, Democrats and labor unions, some Republicans and many business organizations have demanded that the administration file suit before the global body as the only way to demonstrate to China that the United States is serious about these issues. The United States Chamber of Commerce says China's illegal trade practices cost American industry more than $200 billion a year.
The Senate Finance Committee wrote to President Bush on Friday afternoon urging him to take China to the W.T.O. if it is the only way to force Beijing to respect intellectual property rights. The lawmakers were especially scathing about China's decision to guarantee these rights at a level "appropriate for its own national situation."
Representative Benjamin L. Cardin of Maryland, who is the ranking Democrat on the House Ways and Means trade subcommittee, said in an interview that he was disappointed in the administration's decision.
"Putting China on a watch list means nothing," Mr. Cardin said. "The administration has to understand that Congress is serious and wants action on China."
Mr. Portman was sworn in at the White House at noon. He succeeds Robert B. Zoellick, who left the post a month ago to become deputy secretary of state.
"I look forward to taking on the challenge of opening markets for U.S. products and services, ensuring trade is fair by enforcing our trade laws and international rules, and promoting freedom and democracy through expanded trade," Mr. Portman said.
He immediately won praise from lawmakers and foreign trade officials who have been anxious to begin working with him. Peter Mandelson, the European Union's senior trade official, welcomed his confirmation and said, "We have a huge amount to work on together."
Mr. Portman will meet Mr. Mandelson next week in Paris, where they will discuss negotiations for a new global trade treaty that could require a reduction in farm subsidies in the United States and Europe.
A former international trade lawyer and a close friend of the president, Mr. Portman will need the full support of the White House to tackle the growing list of trade problems.
China is at the top of the list. Congress is in near revolt over China's refusal to alter its currency exchange rates, which lawmakers contend allow the Chinese to sell their exports cheaply, undercutting American goods and feeding the trade deficit.
The administration is also being pressed to stem the flow of cheap Chinese textiles that have flooded the United States market since Jan. 1 when a 30-year-old textile quota system, the Multi-Fiber Agreement, was removed. That pact had taken the place of others.
