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House debates China bill ahead of Cafta vote
Tuesday, July 26, 2005 4:58:16 PM
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WASHINGTON (AFX) - The road to ratification of a controversial trade pact with Central America may take a detour through Beijing

The House on Tuesday morning debated a Republican-backed piece of legislation designed to increase scrutiny of China's trade practices. But the bill faced sharp criticism from Democrats who charged that the legislation isn't tough enough

Meanwhile, backers of the Central American Free Trade Agreement, or Cafta, hope that the China legislation would help dilute wariness over trade issues

Rep. Phil English, R-Pa., agreed earlier this month to back Cafta after House leaders agreed to bring his China bill to the House floor. The package includes a provision that would allow the administration to hit China and other non-market economies with punitive tariffs on products that are produced with government subsidies. It also requires the Treasury Department to report every six months on China's currency practices and would boost spending on trade monitoring and enforcement by the office of the U.S. trade representative

Republican leaders brought the bill to the floor under a suspension of the rules - a procedure that limits debate and forbids amendments. Passage of bills on the so-called suspension calendar requires a two-thirds vote of the House. The roll call on the bill was delayed until later in the day

Democrats accused the GOP of seeking to ram a weak bill through the House simply to grease the path for approval of Cafta

"This legislation ... is about one thing and one thing only: providing political cover for those who are reluctant to embrace Cafta," said Rep. Richard Neal, D-Mass

House Ways and Means Committee Chairman Bill Thomas, R-Calif., charged that Democratic proposals included measures that would violate World Trade Organization rules

The administration, GOP officials and business lobbying groups have been working feverishly to build support for the Cafta agreement in the House. Lobbyists say GOP leaders remain a few votes short, but are closing the gap

The Central American pact faces almost unanimous opposition by Democrats, many of whom charge that the agreement has lackluster labor standards that will encourage the export of U.S. jobs

It has also faced opposition from a large handful of Republicans, particularly members from districts with large numbers of sugar producers or textile workers

The administration saw the gap narrow Monday, however, after three previously wavering textile-state Republicans - Bob Inglis of South Carolina and Spencer Bachus and Mike D. Rogers of Alabama - announced they would back Cafta

The trio was persuaded after the administration and House Republican leaders said they would move to ensure that the trade agreement is eventually changed to close a loophole that critics say would allow duty-free treatment of some Chinese textile products at the expense of U.S. firms

"We're just a couple of days from the House scheduled vote on this agreement and today's announcement is a much needed shot in the arm and gives us extra momentum," said U.S. Trade Representative Rob Portman on Monday night

This story was supplied by MarketWatch. For further information see www.marketwatch.com

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