While India has also secured what Indian commerce ministry officials call a "satisfactory deal," it must worry about China’s increased clout in the multilateral trading regime. Both US and Indian officials have expressed satisfaction at having secured Chinese commitment to what is called the "surge provision."
That is, China will monitor its exports to both these countries and ensure that there is no sudden ‘surge’ in exports. It is a kind of "voluntary export restraint," meant to calm fears about China’s subsidized export promotion not based on transparent market forces.
Speaking to the US Congress’ Ways and Means Committee, Treasury Secretary Larry Summers, Commerce Secretary William Daley, Agriculture Secretary Glickman and the US Trade Representative Charlene Barshevsky pooled their combined intellectual resources, with support from former Treasury Secretary Rubin, now an influential man on Wall Street, to convince the skeptics on Capitol Hill.
Expectations are that next week’s senate vote on PNTR will be narrowly won by the administration. If the vote is lost, USTR Barshevsky warned, the consequences could be catastrophic for US trade interests. If the vote is won, she declared with gravitas, the moment would be historic.
WTO: Enter the dragon - II
The impact of China’s entry on India
WTO: Enter the dragon - III
Is India capable of bearing pressure?
Share your thoughts on the issue
