To Extend Nondiscriminatory Treatment (Normal Trade Relations Treatment) to the Products of the People's Republic of China

In simple terms

President George W. Bush issued a proclamation extending permanent normal trade relations (NTR) treatment to Chinese products, effective January 1, 2002. This implemented U.S. commitments under Public Law 106-286 following China's accession to the World Trade Organization on December 11, 2001, ending the annual waiver process required by section 402 of the Trade Act of 1974.

Federal Register Open PDF 67 FR 479

Record & deadlines

Dec 27, 2001Signed
Signed by the President
Jan 4, 2002FR published
Published in the Federal Register · 67 FR 479
Federal Register PDF
Jan 1, 2002
Nondiscriminatory treatment to products of China takes effect

Key directives

Extend nondiscriminatory treatment (normal trade relations treatment) to products of China
Make extension effective as of January 1, 2002
Determine that chapter 1 of title IV of the Trade Act of 1974 shall no longer apply to China

Prior policy

supersedeannual section 402 waivers of Trade Act of 1974 for China

What to expect

Immediate

Proclamation issued December 27, 2001
Termination of annual Jackson-Vanik waiver requirement for China

Near term (90d)

Normal trade relations treatment takes effect January 1, 2002

Long term

Permanent tariff structure for U.S.-China trade
Integration of China into WTO framework
Structural shift in U.S.-China trade relations

Risks & tensions

Congressional concern over human rights and labor conditions in China bypassed by permanent NTR
Potential for increased U.S. trade deficit with China
Domestic manufacturing competition from lower-cost Chinese imports
Ambiguity around enforcement of China's WTO commitments