The Eagle and the Dragon: The November 1999 US-China Bilateral Agreement and the Battle Over PNTR Harvard Case Solution & Analysis

December 11, 2001, China joined the World Trade Organization. Many say that in 1999, the US-China bilateral trade agreements, and vote in Congress to permanently establish normal trade relations with China have paved the way for China'' to the entry into the WTO. Although China is not a member of the WTO, the United States granted China most-favored-nation (MFN) since 1979. However, under U.S. law,'' China trade status requires annual renewal, which often become the focal point of protests in Congress on human rights, security, and the growing U.S. trade deficit with China. In order to support China'' with the entry into the WTO, the United States were to commit to non-discriminatory treatment by agreeing to make the most favored China'' with constant known as PNTR, or permanent normal trade status, thus abandoning the right to annual reviews. Vote in Congress led lobbying battle on Capitol Hill historic proportions. Why PNTR to pass? What role should trade agreements in promoting human rights, the strengthening of domestic reforms, promotion of the rule of law and the promotion of national security? As the US-China bilateral agreement and the PNTR vote with other key negotiations? What is the role of trade in development'' America's economic interests? (Revised August 2005) HKS Case Number 1771.0 "Hide
by Charan Devereaux, Robert Lawrence 43 pages. Publication Date: December 7, 2004. Prod. #: HKS476-PDF-ENG

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