February 14,2006

Grassley Weighing Options to Enhance U.S.-China Trade Relationship

M E M O R A N D U M

To: Reporters and Editors
Re: Top-to-bottom review of U.S.-China trade policy
Da: Tuesday, Feb. 14, 2006

Sen. Chuck Grassley, chairman of the Committee on Finance, with jurisdiction over
international trade, today made the following comment on the release of the top-to-bottom review
of U.S.-China trade policy by United States Trade Representative Rob Portman. According to the
United States Trade Representative’s Office, the report, “U.S.-China Trade Relations: Entering a
New Phase of Greater Accountability and Enforcement,” is the first comprehensive statement of U.S.
trade policy toward China since China joined the World Trade Organization in 2001. Grassley
expects to further explore the U.S.-China trade relationship during his Finance Committee hearing
this Thursday at 10:30 a.m. in 215 Dirksen Senate Office Building. The committee will hear
testimony on the Administration’s trade agenda for 2006. Ambassador Portman is scheduled to
testify.

“I welcome today’s report. There’s a growing impatience in Congress with China’s slowness
in addressing key issues, such as currency reform and the enforcement of intellectual property rights.
More and more, members are introducing legislation to deal with these and other issues. I’ve said
that I’ll refrain from endorsing any specific legislation on China until the results of the top-to-bottom
review are released. I’m in the process of evaluating various ideas to develop a comprehensive
legislative approach for enhancing our trade relations with China and the rest of the world. The topto-
bottom review will be an important resource for me as I consider the direction to take. The key
point is that China must live up to its commitments and to its responsibilities as a major beneficiary
of the global trading system. Any legislation that I endorse will be based on this guiding principle.
U.S. farmers, manufacturers, and service providers deserve to enjoy the full benefits of a mature
trade relationship with China.”

The USTR report is available at http://www.ustr.gov/.