Spats threaten China’s entry to the WTO

Date: 19/10/00

FEARS are growing that China's unresolved disputes with major trading blocs could prevent it from joining the World Trade Organisation until next year.

But EU experts claim a late entry on satisfactory terms would still benefit the Union and other WTO members. Their comments came as the Union, US and other trade powers try to resolve bilateral spats with China which threaten to derail their support for the country's accession to the WTO and trade diplomats at the organisation's headquarters in Geneva work on the broad terms for membership.

"The question is whether China is going to formally be a member of the WTO this year. If there is willingness to complete this in the next six to eight weeks, it can be done. With good will, there are not any subjects that we would be unable to agree upon," said one EU official. "It may be that the groundwork is completed this year, but formal membership does not happen until next year. But if China is a member of the WTO in 2001, then that would be a result."

Beijing appeared on course for rapid entry into the organisation after clinching bilateral deals with key members earlier this year. But doubts over the country's willingness to live up to its promises have prompted high-level diplomatic efforts to salvage the accords.

The Union's frustrations focus on two key issues: China's failure to allocate five of the seven licences it promised European insurance companies in May and concerns that EU firms may not get fair access to China's large-scale network for distributing goods around the country.

The US has also expressed concern about aspects of its deal with Beijing and officials say there are many 'multilateral' issues which have yet to be settled. These include the need for "transparency and independence" in the administrative tribunals which would oversee the country's procedure for licensing foreign selling services.

Fears are growing that China's unresolved disputes with major trading blocs could prevent it from joining the World Trade Organisation until 2001.