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China Trade Makes Strange Bedfellows

The Democrat-Republican divide was replaced by an urban-rural split in determining how North Carolina's congressional delegation voted on extending permanent normal trade relations (PNTR) with China. The four members who voted for passage of the bill represent urban areas -- the Triangle, Charlotte and Hickory. The five Republicans and three Democrats who voted against PNTR mainly represent rural parts of the state or areas heavily dependent on textiles.

The House approved the legislation 237-197 on Thursday, with 164 Republicans and 73 Democrats in favor. Voting no were 57 Republicans, 138 Democrats and two Independents.
See how the entire House voted.

The measure now goes to the Senate, which is expected to take up the bill after Congress returns from its Memorial Day break. Sen. Jesse Helms strongly opposes it and Sen. John Edwards is undecided. The Senate is expected to concur in passage, handing President Clinton a major foreign policy victory.

Business leaders applauded House passage of the China trade bill, with the U.S. Chamber of Commerce calling the bipartisan vote "a victory of fact over fear and a historic win for the American economy and our national security." North Carolina supporters said normal trade relations with China would bring an economic windfall to the state by opening new markets for commodities and manufactured goods. China isn't one of North Carolina's major trading partners. The $254.2 million in goods we sold to China last year ranks it the state's 16th-largest foreign market.

Price and other supporters said the legislation will boost that total significantly by requiring China to slash tariffs on poultry, pork, tobacco and other commodities, as well as on such manufactured goods as chemical and pharmaceutical products, computers, telephones and other high-tech items. "This is potentially one of the most positive developments in years for North Carolina tobacco farmers," Cong. Bob Etheridge (D-2nd) said in a statement. "This is a big, big victory for our state's tobacco farmers and rural economies." Etheridge swung in favor of the trade bill after China dropped restrictions on tobacco imports.


How They Voted
(Statements explaining their votes are posted on some members' web pages linked below)
Yes
Cass Ballenger, R
Bob Etheridge, D
Sue Myrick, R
David Price, D

No

Richard Burr, R
Eva Clayton, D
Howard Coble, R
Robin Hayes, R
Walter Jones, R
Mike McIntyre, D
Charles Taylor, R
Melvin Watt, D


Ergonomics Update: OSHA will hold an informal public hearing on July 7 on the economic impact of its proposed ergonomics standard on state and local governments, the United States Postal Service and railroads. Public comments on these issues are due no later than June 22, 2000. While OSHA's ergonomics proposal addresses these workers, the original economic impact statement did not include these costs. Although OSHA does not cover state and local government workers, states that run their own OSHA programs (about half the states, including North Carolina) do and would cover workers within their jurisdictions. The supplemental economic analysis concludes that the ergonomics proposal would affect another 8.7 million workers in state and local government at more than 165,000 sites. OSHA estimates these workers experience about 175,000 musculoskeletal disorders (MSDs) each year. OSHA estimates that adding the three groups to its ergonomics proposal would raise the total net costs by nearly $420 million per year. The public hearing will be held July 7, beginning at 9:00 a.m., in the auditorium of the Francis Perkins Building, 200 Constitution Ave., N.W., Washington, D.C. 20210. Comments also can be transmitted electronically through OSHA's web site.

Hot Weather: The four-month period of January through April this year was the warmest January-April period on record in the United States in 106 years of record keeping, according to statistics calculated by National Oceanic and Atmospheric Administration scientists working from the world's largest statistical weather database. NOAA's National Climatic Data Center in Asheville holds data that spans through the entire 106 years of record keeping. The preliminary data indicate that nearly 70 percent of the country was much warmer than normal, while less than one percent of the country was much cooler than normal. The persistent warmth of the past eleven months has resulted in record warm ranks for several combinations of months ending in April 2000. These include each of the nine periods from February-April 2000, January-April 2000, back to June 1999-April 2000. The temperature value, at 44.3 degrees Fahrenheit, was .3 degrees over the second warmest January-April, which occurred in 1990.

SBA Revises SIC Codes:
The U.S. Small Business Administration (SBA) on Oct. 1 will adopt a new industrial classification system that more accurately reflects today's small business sector, especially the fast-growth technology area. It will serve as the basis for the agency's widely used small business size standards. The new system, known as the North American Industry Classification System (NAICS), reflects recent business development trends by listing a greater number of advanced technology and service industries than the current Standard Industrial Classification (SIC), which has been in use since the 1930s. The NAICS classification system now is used to compile business and trade statistics in the United States, Canada and Mexico. "The phenomenal growth of our national economy in recent years has created entire new industries, especially when measured by the technology sector," said SBA Administrator Aida Alvarez. "The SBA is adopting NAICS to keep current and more accurately classify our diverse economy. The benefits of this more precise classification will be shared by all, but particularly by those small businesses in these emerging industries.” Federal procurement officials and others use size standards to determine whether a business is large or small. Knowing the correct size standard can pave the way for a firm to receive contracts, research and development awards and financial or technical assistance reserved only for small businesses. Read more about the issue.

Airline Merger: United Airlines, the world's largest carrier, has agreed to acquire US Airways in an $11.6 billion deal that would create an airline with nearly twice the number of flights as its nearest competitor. US Airways is the dominant carrier at Charlotte Douglas International Airport and is a major carrier at Raleigh-Durham International Airport. United plans to keep US Airways' Washington-New York-Boston shuttle and enough slots at Reagan National to feed Washington-area passengers to US Airways international hubs in Pittsburgh, Philadelphia and Charlotte. The merger agreement was said to be an all-cash deal, with United paying $4.3 billion and assuming US Airways' debt of $1.6 billion. The rest of the $11.6 billion price tag involves assumption of aircraft leases. The newly merged airline would have hubs from coast to coast and about 6,500 daily flights, nearly double that of American Airlines. United is primarily an east-west airline, while US Airways primarily flies north-south routes. United said the acquisition would add 560 routes to its system.

Taylor and Taxes: Jackson County Tax Collector Beverly Buchanan has asked the U.S. House to garnishee the paycheck of Cong. Charles Taylor (R-11th) for $3,583.50 as payment for a delinquent property tax bill the county says he owes. Buchanan said Taylor owes the county $17,989.37 in taxes, going back to 1996, on six parcels totaling 628 acres. The money requested covers taxes on one of the parcels. Taylor declined comment. His lawyer, Robert Long, denied Taylor owes back taxes in Jackson County. The dispute involves Taylor's claim for a lower tax rate because his land is under active forest management.

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