December 13,2007

Baucus Sees Shortcomings, Progress in U.S.-China Talks

Chairman urges continued engagement and progress

Washington, DC – Today, Senate Finance Committee Chairman Max Baucus (D-Mont.)
reacted to initial results of this week’s Joint Commission on Commerce and Trade (JCCT) and Strategic Economic Dialogue (SED) talks in Beijing. The JCCT and the SED bring together senior officials from both countries to focus on immediate and longterm objectives on a range of issues, including international trade, import safety, innovation, and energy. The fourth meeting of the SED is scheduled for June 2008 in Washington, D.C.

“The results of the JCCT and SED reflect the state of U.S.-China ties. There are
some obvious shortcomings, some visible progress, and a great deal of potential if we
work hard and follow through.”

As part of the JCCT and SED talks, the United States and China signed Memoranda of
Understanding on food, feed, and medical device safety. China also agreed to permit
pork exports from six U.S. facilities, improve intellectual property rights protections, and
submit its initial offer to join the World Trade Organization’s Government Procurement
Agreement. Progress on financial services sector liberalization was less clear. The talks
yielded no apparent progress on opening China’s market to U.S. beef exports or
accelerating reform of China’s exchange rate regime.

“I’m disappointed by the lack of progress on beef, currency, and financial services.
I’m encouraged by progress on pork exports and import safety, and I will press for
real follow through in areas including intellectual property rights and government
procurement. Most importantly, we need to stay focused and engaged, and make
certain that America’s relationship with China works for our farmers, ranchers,
workers, and businesses.”

Baucus and Finance Committee Ranking Republican Member Chuck Grassley (R-Iowa)
wrote to Treasury Secretary Henry Paulson, Commerce Secretary Carlos Gutierrez, and
United States Trade Representative Susan Schwab on December 7, outlining expectations
for the JCCT and SED. To see the text of that letter, please visit the Finance Committee

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