China trade bill may boost Iowa agriculture

Ryan Brown

Some ISU students from farming backgrounds could be affected by a new trade bill with China. China is one step closer to becoming a member of the World Trade Organization after the United States Senate overwhelmingly passed the China Bill last week. The bill now classifies China as a “most-favored trade” nation of the United States, expanding foreign trade for Iowa-grown crops. “The prices of our commodities, the corn and beans, are really, really low,” said Brent Swart, junior in agronomy. “This would help move our surplus. It would help the farm economy by opening up another foreign market.” Harvey Lapan, university professor of economics, said the China Bill allows China to be admitted into the WTO with limitations. He said China must modify and reduce tariffs from WTO-member countries. Lapan said opening up trade with China will produce more jobs in the export industries and lose some in import industries, but most of the jobs will just redirect themselves to other growing areas of the export industry. “[The China Bill] is beneficial for the farmers,” Lapan said. “It has a huge potential for markets in the U.S. and will even get better as China gets richer.” Both Iowa senators supported the bill, as did Iowa’s representatives, who passed a similar bill early this year. Representatives of Republican Sen. Chuck Grassley, chairman of the Senate’s international trade subcommittee, said he is enthusiastic about establishing ties with China. “Opening up permanent normal trade relations with China will foster a better understanding between the two nations and imprint the democratic principles of economic and political freedom to a billion Chinese consumers,” said Jill Kozeny, Grassley’s press secretary. The bill passed the Senate by a vote of 83-15, and it now goes on to President Clinton. If signed by the president, the bill could make the biggest foreign policy victory of this administration, said representatives of Sen. Tom Harkin, D-Iowa. “[Harkin] weighed the pros and cons to the issue,” said Shannon Tesdahl, Harkin’s press secretary. “It came down to China becoming a world power in the future, and it is a good opportunity to trade.” Tesdahl said Harkin waited until he knew it would be a good opportunity for Iowans and felt that this is only the start and a tremendous amount of work still remains unfinished. She said Harkin spoke with many labor unions opposing this bill, fearing that the United States may lose labor-intensive jobs to China. “Harkin says that he is very hopeful about China opening up to new ideas,” Tesdahl said.