ExecutiveOrdersEO
Proc 7516ProclamationG.W. Bush · R Quiet signal

Proclamation 7516

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

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

Impact dates

  1. 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

Timeline

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
Proclamation 7516: To Extend Nondiscriminatory Treatment (Normal Trade Relations Treatment) to the Products of the People's Republic of China · Executive Orders