COSCO EXPECTS SEABORNE TRADE BOOM AFTER WTO ACCESSION

    China Ocean Shipping Co. said that it expects a substantial increase in China’s seaborne trade once the country has joined the World Trade Organization.
    With the growth of the foreign trade, the country’s seaborne trade will rise by 8 to 10 percent a year, the Chinese shipping line said, predicting that China’s seaborne trade will increase from 383 million tons in 1998 to 656 million tons in 2005.
    COSCO stressed that the export of clothes will jump by 400 percent, electromechanical product exports will "increase dramatically" and agriculture imports will soar.
    "The automobile trade will grow dramatically, (with) 400,000 units forecasted (to) be traded in the first year after entering into WTO," a spokesman for COSCO said.
    So-called most favored nation treatment for China by over 100 member countries of the WTO would help to overcome tariff and non-tariff barriers and boost export volumes, especially the traditional textile industry and electromechanical industry, COSCO said.
    Concerning imports into China, WTO commitments would mean cuts in import tariffs from 25 percent to 9 percent for industrial goods. Ending of import quota would also mean that imports will increase on a large scale, COSCO said.
    COSCO expressed concerns about the opening up of the Chinese market to non-Chinese shipping companies and freight forwarders. In particular, COSCO-owned agency company Penavico would face new competition if the protected agency sector is opened up.
    Another change expected by COSCO after the WTO entry is that transshipment via Hongkong will decline dramatically, while direct vessel sailings across the Taiwan strait will increase.
    China’s accession to the international organization will be discussed at the forthcoming WTO ministerial meeting in Seattle on Nov. 30-Dec. 3.