Without a doubt us business farmers and ranchers aim

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Without a doubt, U.S. business, farmers, and ranchers aim to export more to China. However, increased U.S. exports, whether to China or elsewhere, need to be in response to market forces and not undercut broader U.S. demands for less state intervention. Such an arrangement would be inconsistent with U.S. values and adopt a managed trade framework, more akin to the Chinese model. In the short-term, a large increase in exports to China would also likely mean the U.S. exporting less to other countries. China agreeing to purchase more U.S. goods would also likely violate China’s most favored nation (MFN) WTO commitment, as a decision to buy more U.S. energy or agriculture exports would mean purchasing less from other countries. Such an outcome would also disadvantage U.S. allies. The U.S. should also not make reducing the bilateral deficit a focus of the negotiations. For the reasons outlined above, the U.S. should focus on pushing for economic reform and more market access. The role for the WTO Despite the challenges the organization has had over the past few years, the WTO should play a central role in framing the issues at play in the U.S.-China trade dispute. As noted, the WTO is the only multilateral set of agreed upon rules and norms of behavior for assessing the impact of the Chinese economic model on international trade. Seeing the WTO in this way allows the U.S. to identify where China fails to comply with existing commitments as well as demonstrate where WTO rules are unable to discipline Chinese trade practice and where bilateral or unilateral action may be necessary. The administration made an important step in this direction in its re- cent report on China’s compliance with its WTO commitments. In that report the Administration advanced a broad claim that China made “representations that it was committed to increasing the market-orientation of its economy and trading system, reforming state-owned enterprises so that they operate independently and in accordance with market principles and introducing a pricing system that reflects supply and demand.” Here, the administration is going beyond legal 69 U.S. Chamber of Commerce and AmCham China. Priority Recommendations for U.S. China Trade Negotiations. January 16, 2019. . org/uploads/media/default/0001/10/cb7aaf550a515e8d6af75b1cee200b6531426ee1.pdf.
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The US-China economic relationship: A comprehensive approach 19 claims per se to express that China has not fulfilled “the expectations of Members” by acting inconsistently with the expectations that come with WTO membership. 70 As noted earlier, China reiterating its commitment to comply with its WTO Protocol of Accession should be a bilateral priority and its enforcement (outside a BIT) should be done through the WTO dispute settlement system. The U.S should also develop a broader portfolio of WTO cases against China on the issues of technology transfer, IP, and SOEs especially since, in most cases where China has lost a WTO cases, it has usually complied.
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