On Fri, 17 Mar 2000, Rakesh Bhandari wrote:
> Michael,
> What's the potential downside from Congressional rejection?
Under WTO rules, China could then prevent the US from enjoying the concessions granted to her European and Japanese competitors -- surely the last thing the US wants. China could do this legally, with WTO approval. But the US could not block China from enjoying the same terms as all other WTO members to our markets. We would be viewed by the WTO as the violator, not China.
> This way China understands that the US state can close off
> its market if US capital doesn't get what it is supposed to obtain
On the contrary. We couldn't do that unless we wanted to abandon the WTO.
> The US doesn't fear WTO sanctions against such unilateral actions
> since the WTO governing body seems to have to rule by consensus if its
> authority is not to collapse due to non obedience by its most powerful
> member.
Just so: the WTO would collapse. Supposedly not what the US wants to accomplish. But exactly what you'd like to accomplish, no? Seems like everyone's on the wrong side . . .
Michael
__________________________________________________________________________ Michael Pollak................New York City..............mpollak at panix.com