China and US announced an agreement on Saturday on farm subsidies and other remaining issues blocking China's bid to join the WTO.
The agreement reached in Shanghai during a meeting of regional economic ministers this week clears the way for Washington to support China's bid at a meeting of WTO members June 28.
A key sticking point had been China's insistence on being treated as a developing nation.
Officials released no details of the deal, but confirmed that Chinese Trade Minister Shi Guangsheng and US Trade Representative Robert Zoellick discussed farm subsidies, services such as distribution to retailers and import-export rights.
If other members confirm the agreement at their meeting in Geneva, that would set the stage for China to join the WTO in time for a key meeting of trade ministers in Qatar in November.
That meeting is expected to launch a new round of trade liberalization talks, following the failure of a meeting in Seattle in 1999 to agree on an agenda for negotiations.
"China is clearly on the way into the WTO, and a strong supporter of the new WTO round," Zoellick said in comments released by his office after he returned to Washington.
A statement released by the US Embassy in Beijing said, "China and the US agree that we should now work together in Geneva to complete China's WTO accession."
DEFINING A DEVELOPING NATION
A key sticking point had been China's insistence on being treated as a developing nation, which would let it provide farm subsidies equal to 10 percent of its annual economic output. The limit for developed countries is 5 percent.
Multilateral talks in Geneva on China's membership have stalled since January, largely because Washington and Beijing couldn't find common ground.
Shi and Zoellick reached agreement in a series of meetings held during a conference of economic ministers of the Asia-Pacific Economic Cooperation forum in Shanghai this week. They met until 3 am on Friday to settle differences over the contentious issue of farm subsidies, according to a US trade official.
China insists that it should be treated as a developing country, with huge exports and fast-growing industries in computers and other high-tech fields. The United States, Australia and other agricultural exporters were under pressure from farmers to resist letting China keep the higher level. China has been trying for 14 years to join the WTO.
To complete the membership process, China must show that its laws and policies are in line with WTO free-trade rules and that it has won the endorsement of other member governments.
China has obtained agreements from all WTO members except Mexico, which is asking for stronger antidumping protections. Mexican President Vicente Fox, visiting Beijing this week, told President Jiang Zemin that his government hoped to reach agreement soon. The WTO has 141 members, with another 29 governments waiting to join.