Vote Against China, You Vote Against Beef

March 31, 2000

Members of Congress who vote against permanent normal trade relations with China are voting against cattle producers, says the National Cattlemen’s Beef Association. China easily could become the top market for U.S. beef exports, NCBA CEO Chuck Schroeder told the House Ways and Means Committee.

"If Congress fails (to approve PNTR), then U.S. beef producers will essentially be shut out of the China market, while other countries take advantage of its potential," he said.

Schroeder said exports accounted for less than 1% of U.S. beef production 20 years ago. That figures was about 10% last year "and will only get bigger." The increase comes from more promotion, market access to key markets and the demand for U.S. beef around the world.

He also advocated an improved dispute settlement process within the World Trade Organization. He suggested an escrow account or bonding requirement be established where a defending party would pay into the account at the time of an initial ruling.

"Currently there is no incentive for early settlement or compliance by the losing party, because the current system effectively rewards stall and delay tactics," Schroeder told the committee. He said the NCBA supports "carousel" retaliation in which a retaliation list is revised periodically.

"Without periodic changes to the list, there is little, if any internal political pressure from these entities to settle. If the list of affected commodities were subject to change on a random basis, countries and/or commodities could never be certain they had escaped targeting."