[Senate Hearing 114-281]
[From the U.S. Government Publishing Office]
S. Hrg. 114-281
NOMINATIONS OF MARISA LAGO AND
W. THOMAS REEDER, JR.
=======================================================================
HEARING
before the
COMMITTEE ON FINANCE
UNITED STATES SENATE
ONE HUNDRED FOURTEENTH CONGRESS
FIRST SESSION
on the
NOMINATIONS OF
HON. MARISA LAGO, TO BE DEPUTY U.S. TRADE REPRESENTATIVE, WITH THE RANK
OF AMBASSADOR, OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE; AND W.
THOMAS REEDER, JR., TO BE
DIRECTOR, PENSION BENEFIT GUARANTY CORPORATION
__________
JULY 23, 2015
__________
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COMMITTEE ON FINANCE
ORRIN G. HATCH, Utah, Chairman
CHUCK GRASSLEY, Iowa RON WYDEN, Oregon
MIKE CRAPO, Idaho CHARLES E. SCHUMER, New York
PAT ROBERTS, Kansas DEBBIE STABENOW, Michigan
MICHAEL B. ENZI, Wyoming MARIA CANTWELL, Washington
JOHN CORNYN, Texas BILL NELSON, Florida
JOHN THUNE, South Dakota ROBERT MENENDEZ, New Jersey
RICHARD BURR, North Carolina THOMAS R. CARPER, Delaware
JOHNNY ISAKSON, Georgia BENJAMIN L. CARDIN, Maryland
ROB PORTMAN, Ohio SHERROD BROWN, Ohio
PATRICK J. TOOMEY, Pennsylvania MICHAEL F. BENNET, Colorado
DANIEL COATS, Indiana ROBERT P. CASEY, Jr., Pennsylvania
DEAN HELLER, Nevada MARK R. WARNER, Virginia
TIM SCOTT, South Carolina
Chris Campbell, Staff Director
Joshua Sheinkman, Democratic Staff Director
(ii)
C O N T E N T S
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OPENING STATEMENTS
Page
Hatch, Hon. Orrin G., a U.S. Senator from Utah, chairman,
Committee on Finance........................................... 1
Wyden, Hon. Ron, a U.S. Senator from Oregon...................... 4
ADMINISTRATION NOMINEES
Lago, Hon. Marisa, nominated to be Deputy U.S. Trade
Representative, with the rank of Ambassador, Office of the
United States Trade Representative, Washington, DC............. 6
Reeder, W. Thomas, Jr., nominated to be Director, Pension Benefit
Guaranty Corporation, Washington, DC........................... 8
ALPHABETICAL LISTING AND APPENDIX MATERIAL
Hatch, Hon. Orrin G.:
Opening statement............................................ 1
Prepared statement........................................... 19
Lago, Hon. Marisa:
Testimony.................................................... 6
Prepared statement........................................... 20
Biographical information..................................... 22
Responses to questions from committee members................ 32
Reeder, W. Thomas, Jr.:
Testimony.................................................... 8
Prepared statement........................................... 41
Biographical information..................................... 42
Responses to questions from committee members................ 46
Wyden, Hon. Ron:
Opening statement............................................ 4
Prepared statement........................................... 48
(iii)
NOMINATIONS OF HON. MARISA LAGO, TO BE
DEPUTY U.S. TRADE REPRESENTATIVE,
WITH THE RANK OF AMBASSADOR,
OFFICE OF THE UNITED STATES TRADE
REPRESENTATIVE; AND W. THOMAS
REEDER, JR., TO BE DIRECTOR, PENSION
BENEFIT GUARANTY CORPORATION
----------
THURSDAY, JULY 23, 2015
U.S. Senate,
Committee on Finance,
Washington, DC.
The hearing was convened, pursuant to notice, at 10:04
a.m., in room SD-215, Dirksen Senate Office Building, Hon.
Orrin G. Hatch (chairman of the committee) presiding.
Present: Senators Grassley, Crapo, Thune, Toomey, Wyden,
Cantwell, and Bennet.
Also present: Republican Staff: Chris Campbell, Staff
Director; Mark Prater, Deputy Staff Director and Chief Tax
Counsel; Everett Eissenstat, Chief International Trade Counsel;
Preston Rutledge, Tax Counsel; Rebecca Eubank, International
Trade Analyst; and Nicholas Wyatt, Tax and Nominations
Professional Staff Member. Democratic Staff: Joshua Sheinkman,
Staff Director; Jocelyn Moore, Deputy Staff Director; Michael
Evans, General Counsel; Elizabeth Jurinka, Chief Health Policy
Advisor; Kara Getz, Senior Tax Counsel; Jayme White, Chief
Advisor for International Competitiveness and Innovation;
Anderson Heiman, International Competitiveness and Innovation
Advisor; Tiffany Smith, Senior Tax Counsel; Elissa Alben,
International Trade Counsel; Ryan Carey, Press Secretary and
Speechwriter; Ernie Jolly, Fellow; and Rob Jones, Detailee.
OPENING STATEMENT OF HON. ORRIN G. HATCH, A U.S. SENATOR FROM
UTAH, CHAIRMAN, COMMITTEE ON FINANCE
The Chairman. The committee will come to order.
Good morning, and welcome to everybody to today's hearing
to consider pending nominations. Today we have before the
committee two nominees: Marisa Lago, who has been nominated to
serve as Deputy U.S. Trade Representative, and Thomas Reeder,
who has been nominated to be the Director of the Pension
Benefit Guaranty Corporation, or PBGC.
I want to welcome both of these nominees to the committee
and commend them for their willingness to serve. Ms. Lago, if
confirmed, you will be working during one of the most active
periods for U.S. trade policy in recent history.
After meeting with you, I believe you are a fine nominee,
and I feel confident that you are qualified to complete all the
tasks that lie ahead. I understand from the USTR that you will
not be responsible for any of the ongoing trade negotiations,
and I find it strange that the administration does not empower
its Deputy U.S. Trade Representatives, positions that have been
created by statute and are confirmed by the Senate, to manage
trade negotiations. However, that is a decision that the
President has apparently made, and I do not believe it should
impact your nomination.
However, as we conduct this nomination hearing,
negotiations to conclude the Trans-Pacific Partnership are
under way. I want to take a few minutes to outline my
expectations for a strong TPP. I want a strong TPP agreement,
and I would list five key components that I believe are
necessary to win sufficient support for the agreement in the
Senate.
First, strong intellectual property rights protections are
a critically important objective. Intellectual property is the
backbone of our modern economy, impacting large and small
businesses across America. In my home State of Utah, for
example, half a million jobs and 67 percent of our exports are
directly connected to intellectual property. That is why the
TPA law recently passed by Congress and signed by President
Obama requires that trade agreements meet the high standards
for IP protections found in U.S. law. I fully expect the TPP to
reflect these standards, including 12 years of regulatory data
protection for biologics, strong copyright and trademark
protections, prevention of trade secrets theft, and
transparency and procedural fairness for reimbursement
decisions relating to medical devices and pharmaceuticals.
Second, we need to ensure that U.S. investors receive the
same basic protections that we give to investors, foreign and
domestic, here at home. This includes maintaining strong
investor-state dispute settlement provisions that do not exempt
products or industries from coverage.
Third, TPP must provide real and comprehensive market
access opportunities for U.S. exporters. That means a
significant reduction and ultimately elimination of tariffs on
U.S. exports of goods, services, and of course, agricultural
products. Several parties to TPP are resisting our efforts to
open agricultural markets. Let me be clear. If our TPP partners
like Japan and Canada are not willing to open their markets to
our exports, the final agreement will never receive sufficient
support in Congress.
Fourth, TPP must also reflect the priorities set forth in
our TPA law regarding digital trade. This includes ensuring
foreign governments do not impede cross-border data flows and
eliminating forced localization requirements. These commitments
should apply broadly to all sectors, including financial
services and public telecommunications.
Finally, an increasingly difficult problem our exporters
face is unfair competition from state-owned enterprises. I want
American businesses to be able to compete anywhere in the
world, and it is essential for TPP to ensure that state-owned
enterprises, including those owned by sovereign wealth funds,
act on a commercial basis.
I expect that the administration will reach a TPP agreement
that meets these and other high standards outlined in our TPA
law. Of course, if it falls short, Congress retains the right
to reject the agreement or remove the expedited procedures, a
right it will readily embrace if necessary.
So as you can see, Ms. Lago, there are a lot of issues on
USTR's plate. I trust you will do your best to see that the
objectives I outlined here are met, and I do believe our Trade
Representative is working hard to do that as well.
Now I would like to take a few minutes to talk about Thomas
Reeder. For those who do not know, Mr. Reeder is a veteran of
this committee. He worked for Chairman Baucus. We want to
welcome you back to the committee.
Mr. Reeder, if confirmed, you will serve during one of the
most challenging periods the PBGC has ever faced. As you know,
this agency was established by the Employee Retirement Income
Security Act in 1974 to insure the pensions owed to employees
under private defined-benefit plans.
In the 40 years it has been in existence, the PBGC has
become a very important agency, insuring pensions for more than
1.5 million participants and nearly 4,700 failed single-
employer and
multiple-employer plans. For example, the PBGC made $5.6
billion in payments in fiscal year 2014 alone. But in some ways
this understates the challenges faced by the PBGC, particularly
when we are talking about multi-employer pension plans.
Last year, reports indicated that the deficits in PBGC's
single-employer pension insurance program were projected to
drop from more than $27 billion to just over $7 billion in
2023. However, the story for the multi-employer program was
altogether different, as those deficits are projected to
increase from around $8 billion to nearly $50 billion over the
next decade.
Late last year, as part of the so-called Cromnibus, at the
request of multi-employer pension plan managers, employers who
contribute to multi-employer pension plans, and many unions
representing employees, Congress passed the Multi-employer
Pension Reform Act. Now, this new law gives pension plan
trustees the power in extreme cases, and pursuant to
regulations published by the Treasury Department, to reduce
benefits in order to avoid plan insolvency and increased future
reductions.
So, as I have said before, this is a sobering moment for
the pension system. Beyond the hardships some retirees
inevitably will experience, it highlights both the challenge of
delivering on the promise of lifetime retirement income and the
stakes for retirees if the system fails.
So, Mr. Reeder, if confirmed--and I believe you will be--
you will have your work cut out for you. Once again, I want to
welcome both of our nominees today. I look forward to their
testimony. Even without that testimony, I intend to support
both of you through the committee and on to the floor.
[The prepared statement of Chairman Hatch appears in the
appendix.]
The Chairman. With that, let me now recognize our great
ranking minority member, Senator Wyden.
OPENING STATEMENT OF HON. RON WYDEN,
A U.S. SENATOR FROM OREGON
Senator Wyden. Thank you very much, Mr. Chairman. As you
know, we have a full plate, you and I, ahead of us.
The Chairman. We sure do.
Senator Wyden. I very much appreciate your making time for
the hearing, and you have made many points that I certainly
agree with today.
The Finance Committee has before it two nominees for vital
positions in the Federal Government. Marisa Lago is nominated
to be a Deputy U.S. Trade Representative at USTR. We welcome
you. And we welcome Mr. Tom Reeder, an alum of the Finance
Committee. He has been nominated to be the Director of the
Pension Benefit Guaranty Corporation.
As Deputy USTR, Ms. Lago will be responsible for a number
of critical trade issues, including improving labor conditions
and environmental protections maintained by our trading
partners, improving market access for American goods and
services, and implementing the recently passed African Growth
and Opportunity Act.
I am especially appreciative, Mr. Chairman, of your
highlighting congressional oversight of trade, which you and I
talked about with Chairman Ryan at great length in our
discussions, pointing out how important it is that these trade
agreements actually meet the negotiating objectives. I think
the fact that you have highlighted that is very welcome, and I
appreciate your doing it.
The fact is, USTR needs a full leadership team now more
than ever to take on the range of trade priorities before it.
As Ambassador Froman heads to Maui next week in an effort to
conclude the Trans-Pacific Partnership, he will need to deliver
on the priorities that members of Congress have here at home,
because they are the priorities of the American people.
For my part, that means ensuring that the TPP agreement
contains 21st-century provisions to promote digital goods in
the digital economy, provides an ambitious market-opening
opportunity for Made in America products, including dairy, and
contains strong enforceable rules on labor and the environment.
This is a particularly important point, Ms. Lago, because,
continually, those who have questioned the value of these trade
agreements are talking about how trade agreements are in some
way part of a race to the bottom. Chairman Hatch and I felt
very, very strongly that if we worked out those labor and
environmental provisions and made sure that they were
enforceable, this would mean that the United States was a force
for driving standards up.
Our argument was, if we walk off the playing field, you
bet, that invites a race to the bottom. But having the United
States on the playing field is a force for driving standards
up, and that is why your position is so important, and our
priority is those strong, enforceable rules on labor and
environment. In your position, you are going to play a key role
in ensuring that each of these priorities is realized.
Ms. Lago currently serves as Assistant Secretary at the
Treasury Department. There, she works to improve global market
access for American goods and services. Prior to joining
Treasury, Ms. Lago held a number of positions promoting
economic development in State and local governments and in the
private sector. She also served as the head of the Office of
International Development at the SEC.
As I noted, we are very pleased that Mr. Tom Reeder is
here, a graduate of the Senate Finance Committee staff, well-
known and admired by many here behind Chairman Hatch and me at
the dais. Tom served as Senior Benefits Counsel on the
committee for nearly 4 years and is well-known for not just his
knowledge, but his passion for pension and employee benefits,
and that has been invaluable during his years at the Finance
Committee.
He currently serves as Health Care Counsel at the IRS, and,
before joining the Finance Committee, Mr. Reeder served at the
Treasury Department in several different capacities. The
Pension Benefit Guaranty Corporation needs strong leadership to
tackle a number of difficult challenges, and I feel very
strongly that Mr. Reeder is the right person for this very
important job.
It is my hope that Mr. Reeder will be confirmed quickly so
he can take the reins of this agency at this critical time, as
noted by Chairman Hatch. The Pension Benefit Guaranty
Corporation insures the pension benefits of America's workers,
and, at a time when the agency is under financial stress,
employers are trending away from defined benefit plans, and the
Nation's savings remain low. These are just several of the
reasons why we need Mr. Reeder's extensive knowledge, his
integrity, and his leadership.
I also want to express my deep concern with several changes
to the rules that govern multi-employer pensions that
unfortunately were included in last year's omnibus package. The
changes which were negotiated behind closed doors rolled back a
major tenet of our pension law by allowing multi-employer plans
to cut the earned and vested pension benefits.
Let me emphasize, those pension benefits were earned. They
were vested, and they were cut. This change could impact
millions of workers around the country, and I am going to be
working very closely with Mr. Reeder to ensure that the rights
of our retired people are safeguarded. Thank you both for
joining us.
Mr. Chairman, I look forward to working closely with you on
this.
The Chairman. Well, thank you very much, Senator.
[The prepared statement of Senator Wyden appears in the
appendix.]
The Chairman. As I have said, we have two distinguished
nominees here today before us; first, Marisa Lago, who is
nominated to be a Deputy U.S. Trade Representative. Currently,
Ms. Lago serves in the Treasury Department as the Assistant
Secretary for International Markets and Development, where I
believe she is doing an excellent job. Before confirmation in
2010, you served a long career in State and Federal Government.
Your service and your willingness to continue serving are
commendable.
Now, Ms. Lago, if you could please introduce your family or
any folks you have with you here today, we would be happy to do
that.
Ms. Lago. Thank you, Chairman Hatch and Ranking Member
Wyden. I would like to take this opportunity to introduce my
husband, Ronald Finiw. He has been my constant support for the
41 years that we have been together. He is an architect who
specializes in designing institutional buildings, including
some here in Washington, DC.
The Chairman. Well, we are happy to have you here. I
appreciate you being here.
Mr. Reeder, if you would care to introduce who is with
you----
Mr. Reeder. Yes. I would like to introduce one of my
primary role models, my brother Joe Reeder, and I believe his
spouse is here as well, Kate Boyce. Both of them have been very
important to me in getting me to this point.
I would also like to introduce my parents-in-law, Guido and
Jewell Fenzi, who produced the other person I would like to
introduce, my spouse Ruth, whose patience, advice, and
sacrifice have led me to this point. Thank you.
The Chairman. We are glad to welcome all of you to the
committee today.
You have been a public servant in the executive branch at
Treasury and the IRS, and in the legislative branch on this
committee. As a public servant and as a tax lawyer, you have an
unsurpassed reputation for integrity and technical competence,
and I think a well-deserved reputation for working with
Senators and staff on both sides of the aisle.
I want everybody to know that I support you, and, if
confirmed, I trust that you will continue to work cooperatively
with Congress, the administration, and with all stakeholders in
the retirement community. So we are happy to have you, we are
happy to have members of your family here with you, and
friends. We welcome all of you to the committee.
We will now invite both of you to give your testimony. We
will start with you, Ms. Lago, first. Your full written
testimony will appear in the record, and, if you could keep it
to 5 minutes, we would appreciate it. But we will start with
you, Ms. Lago, and then we will turn to you, Mr. Reeder, as
soon as she is through.
STATEMENT OF HON. MARISA LAGO, NOMINATED TO BE
DEPUTY U.S. TRADE REPRESENTATIVE, WITH THE RANK OF AMBASSADOR,
OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE, WASHINGTON,
DC
Ms. Lago. Thank you again, Chairman Hatch and Ranking
Member Wyden. It is a tremendous privilege to be considered by
this committee as a nominee for Deputy U.S. Trade
Representative.
Considering the achievements of those who have served in
this position and also the urgency of our Nation's leadership
on trade, as both of you have emphasized, it is also humbling
to sit here before you today, and I am grateful to President
Obama and to Ambassador Froman for their confidence in me.
I have already introduced----
The Chairman. Can I just interrupt for a second? [To the
audience]: Please take the signs down, or we will have you
removed forcibly from the committee because you are blocking
the viewpoint of others as well. You have a right to feel the
way you do, but we are not going to have any demonstrations in
the committee.
Go ahead. Sorry to interrupt you.
Ms. Lago. Thank you. You have already given me the
opportunity to introduce my husband, but I would also like to
note two other people who have had a major influence on my
life. One is my mother, Maria Pita, who could not be here
today. She is a Spanish immigrant and proud American, and she
gave me the invaluable gift of raising me bilingually. I would
also like to recognize my late father, Louis Lago, who was the
child of Spanish immigrants and a World War II Navy veteran.
They instilled in me a thirst for learning and could not have
been more proud when I became my family's first college
graduate.
Now, my father was also a 30-plus-year civilian employee of
the Department of Defense, and he shared with me his pride in
being a public servant. It is a lesson that I have carried with
me through my career in Federal, State, and local government.
Throughout my time in government, regardless of the role, I
have seen firsthand the power of trade and investment to
improve lives. One example was in New York, where I headed the
State's Economic Development Authority and I was able to help
revitalize a decaying Brooklyn waterfront, a waterfront where
my grandfather had once worked on tugboats.
In my current role at Treasury, I have worked with the
World Bank and the regional development banks as they have
helped to increase poor women's access to capital. This allows
these women to build businesses to support communities, and,
over the long term, it creates export opportunities for U.S.
businesses, small and large.
President Obama and his team at USTR, with the support of
this committee and the full Congress in passing the three
recent trade bills, are pursuing the most ambitious trade
agenda in a generation. It is an agenda that is designed to
support more good jobs in the U.S., strengthen the middle
class, and build on the gains that we have made in recent
years.
Reaching agreements with 11 other countries in the Asia
Pacific region and the European Union's 28 member states is the
heart of the trade agenda. Once concluded, TPP and TTIP will
give the U.S. unfettered access to two-thirds of the global
marketplace.
The Obama administration is also pursuing landmark
agreements in Geneva that would eliminate tariffs for 90
percent of trade in information technology products and
environmental goods, as well as liberalized services trade with
75 percent of the world services market.
These agreements will support additional good-paying jobs
in those sectors where the U.S. has a competitive advantage.
These agreements provide an unparalleled opportunity for the
U.S. to continue shaping the rules of the road for the world
trading system.
However, if the U.S. does not adapt our trading system to
better reflect today's global economic realities, we risk
ceding leadership to other countries, countries that may not
share our interests and our values and that may pursue their
own regional initiatives with weaker standards for protecting
labor, the environment, and intellectual property.
The trade deals that our negotiators strike will level the
playing field for U.S. workers, farmers, ranchers, businesses,
and service providers. I understand full well, however, from my
vantage point at Treasury and my prior service at the
Securities and Exchange Commission, that our international
agreements require vigilant monitoring and enforcement.
The Obama administration has filed 19 complaints at the WTO
and has won every one of them. If confirmed, I will work to
ensure vigorous implementation and enforcement of all of our
multi-
lateral, regional, and bilateral agreements.
I must again thank this committee, and all of Congress, for
having passed a historic trade package. This is a critical step
that will allow us to conclude, and then enforce, high-standard
agreements to give middle-class workers the fair shot that they
deserve to compete and win in today's global economy. It will
open markets for businesses and innovators, and it will support
a prosperous future for millions throughout the developing
world.
These are ambitious goals, but as heirs to a long tradition
of American leadership on trade--leadership that has routinely
risen above party division to advance our Nation's interests
and values--we should aim for nothing less. Thanks to the
strong leadership of this committee, trade policy remains among
the most promising areas for bipartisan cooperation.
It would be an honor to help carry out the marching orders
that Congress has provided the Obama administration through the
TPA. I know that this committee and USTR have a long history of
partnership, and, if confirmed, I commit to maintaining that
same level of cooperation. Thank you.
The Chairman. Well, thank you. We appreciate your
willingness to serve and appreciate your long service in
government.
[The prepared statement of Ms. Lago appears in the
appendix.]
The Chairman. Mr. Reeder, we will take your testimony now.
STATEMENT OF W. THOMAS REEDER, JR., NOMINATED TO BE DIRECTOR,
PENSION BENEFIT GUARANTY CORPORATION, WASHINGTON, DC
Mr. Reeder. Mr. Chairman, Ranking Member Wyden, members of
the committee, thank you for the opportunity to discuss my
nomination today.
The Pension Benefit Guaranty Corporation continues to
endure challenging times. As alluded to by both the chairman
and ranking member, its fiscal year 2014 deficit increased to
$62 billion, up from $32 billion the year before.
While the single-employer program has improved
significantly, the multi-employer program has deteriorated.
Congress responded to this crisis with the enactment of the
Kline-Miller Multi-employer Pension Reform Act.
That act included tools to extend the solvency of the
multi-
employer program. PBGC and the Treasury and Labor Departments
have already provided much of the administrative framework and
guidance to make that law work as intended. If confirmed, one
of my highest priorities will be to work closely with Treasury
and the IRS, with the Department of Labor, and all
stakeholders, to make sure that that law is administered
fairly.
However, the Kline-Miller legislation has provided only a
year or two more of time. More has to be done in the multi-
employer system if we are to avoid insolvency of that system
within the next 10 years.
Of course, the issues at the PBGC are much more than the
deficit of the multi-employer program. The agency is
administering and providing assistance to plans that cover 1.5
million people, two-thirds of whom are already receiving
benefits. Pay-outs to retirees under these plans, as the
chairman indicated, amounted to $5.6 billion in fiscal year
2014, and PBGC manages investments of approximately $80
billion. If confirmed, I will work hard to ensure that the
agency continues to focus on its strategic goals of preserving
plans, protecting pensioners, paying timely and accurate
benefits, and maintaining high standards of stewardship and
accountability.
I am honored to be nominated for this position, and I am
eager to take on the challenge. I have devoted most of my
professional career to helping employers establish and maintain
retirement plans for their employees and helping individuals
achieve retirement security.
I believe my background has well prepared me for this role.
During my work in private practice and as an executive at the
Treasury Department, I gained a reputation for working
cooperatively with all the stakeholders in the employee
benefits arena, including employers, employee and retiree
groups, other agencies, and Congress. I have found that
retirement security is a high priority shared by leaders of
both political parties.
As has already been indicated, I was a staffer in the
employee benefits area in this committee. As such, I learned
firsthand the importance of agencies coordinating closely with
members and their staff, and I look forward to doing just that.
I want to hear your ideas and be responsive to your concerns
about the agency.
We need to find creative ways to involve more employees and
their employers in retirement preparedness, but, at a minimum,
we must devote ourselves to protecting the promise that has
already been made to employees for lifetime income from their
employers' pension plans.
In preparing for this confirmation process, I have learned
even more about the talent and professionalism of the staff at
the PBGC and their dedication to their responsibility of
protecting the pensions of more than 40 million Americans. If
confirmed, I would be honored to join them, and I look forward
to working with Congress and everyone who shares the goals of
the PBGC.
Thank you for the opportunity to appear before you today,
and I would look forward to hearing your views and your
questions. Thank you.
The Chairman. Thank you so much.
[The prepared statement of Mr. Reeder appears in the
appendix.]
The Chairman. I have some obligatory questions that I need
to ask all nominees, so if you can both listen carefully.
First, is there anything that either of you is aware of in
your backgrounds that might present a conflict of interest with
the duties of the office to which you have been nominated?
Mr. Reeder. No.
Ms. Lago. No.
The Chairman. All right.
Do you know of any reason, personal or otherwise, that
would in any way prevent you from fully and honorably
discharging the responsibilities of the office to which you
have been nominated?
Ms. Lago. No.
Mr. Reeder. No.
The Chairman. All right.
Do you agree, without reservation, to respond to any
reasonable summons to appear and testify before any duly
constituted committee of Congress, if you are confirmed?
Ms. Lago. Yes.
Mr. Reeder. Yes.
The Chairman. Finally, do you commit to provide a prompt
response in writing to any questions addressed to you by any
Senator of this committee?
Ms. Lago. Yes.
Mr. Reeder. Yes.
The Chairman. All right. I appreciate that.
Ms. Lago, if confirmed, I understand your portfolio will
include the western hemisphere. I must say, I am pretty
disappointed in the administration's trade policy in the
Americas, so you can take that for whatever it is worth. From
my perspective, the Americas just do not seem to be a priority.
And it is not just this administration, it is others as well.
So I am glad the President has finally decided to fill this
position at the Deputy USTR level, putting someone like you at
the helm of our trading relationship in the western hemisphere
with the political clout to make the region a priority.
If confirmed, what will you do to ensure that our trade
policy with the Americas is a priority, and what specific goals
would you like to see accomplished in the region during your
tenure as Deputy U.S. Trade Representative?
Ms. Lago. Thank you, Mr. Chairman, for focusing on the
Americas. It is a region with which I have been involved in
quite a number of my positions, including at Treasury, a region
that is a natural for heightened involvement for the U.S. It is
our closest hemisphere.
In looking at the Americas and the opportunities there, I
see a number of avenues. One would be continued focus on our
existing trade relationships, assuring that our trade partners
live up to their obligations but also working with those of our
trade partners in the region that are emerging economies to
make sure that they also are able to take advantage of the
trade relations that they have with the United States.
I think there are also other opportunities. As we look at
the Americas, it is hard to paint a continent as just one
entity. We see within Central America the need to address
challenges that were brought to the forefront with the migrant
children, the need to foster economic opportunity. Again, we
can do that, both under existing trade agreements and through
bilateral engagement.
There are economic powerhouses within the Americas, and I
speak particularly of the Pacific alliance countries of Mexico,
Colombia, Peru, and Chile. With those countries, I would hope
to build upon my existing relationships with their senior
government officials to explore further economic integration.
Another untapped potential is Brazil. Through the Treasury
Department, we already have a high-level economic dialogue, and
I would again hope to build upon the interest of the business
community in Brazil to heighten our economic engagement with
that country.
The Chairman. Well, thank you so much.
Mr. Reeder, one of the most difficult tasks at the PBGC is
calculating the correct pension amount for a retiree in a plan
that the PBGC has taken over and the correct amount of the plan
liabilities overall. We have heard that the PBGC is in the
process of reorganizing the department that performs this work
and the work of measuring the liabilities of plans that are
taken over by the PBGC. This department employs accountants,
actuaries, attorneys, and auditors, as well as utilizing
outside contractors.
Now, given that the reorganization has not been completed
yet, would you prefer to have some time after you become
Director, if confirmed, before the reorganization takes effect
to review the proposed changes and to be sure that you agree
with them?
Mr. Reeder. Thank you, Chairman Hatch. I have learned very
quickly during this confirmation process that, once I am
confirmed, assuming I am confirmed, everything will be on my
plate. I am fully aware of the reorganization plan that has
already started. I have not been fully briefed on it, but I do
know that it was undertaken in response to issues raised, not
the least of which were raised by the PBGC Inspector General.
I want to make sure that those issues are adequately
addressed. When coming on board, I do not know that I want to
derail the process, but I will certainly examine it and make
sure it is something I am on board with.
The Chairman. Well, thank you. My time is just about up, so
I think what I will do is turn to Senator Wyden at this point.
Senator Wyden. Thank you very much, Mr. Chairman.
I thank both of you for your service. Let me start with
you, Ms. Lago. Maybe we will have to have two rounds.
As you know, Ms. Lago, critics of past trade agreements
have often said that enforcing the trade laws gets a lot of lip
service. Suffice it to say, I thought they had a pretty valid
point during this kind of debate. The administration, to its
credit, has been moving to change this. I think, for example,
the rare earths decision is very good. I think obviously we
sought to do that in our bipartisan TPA bill--make some
fundamental changes. You have noted it in your statement this
morning. All of that is to the good.
But obviously, we have a lot more to do, so tell me in
particular, and sort of act as if you were responding to the
critics, how you are going to actually enforce the labor and
environmental laws so we get the standards up.
Because people just say, they have all these negotiating
objectives, but where are the teeth? Who is really going to
make sure, in an enforceable, aggressive way, that we enforce
the trade laws? Tell us how you are going to do that when you
are confirmed.
Ms. Lago. Thank you, Senator. Your focus on enforcement is
consistent with how I would approach the position, if
confirmed. As you are likely aware, I come from the Securities
and Exchange Commission, an enforcement agency.
I have worked as a compliance officer, and so I know that,
as important as negotiating a trade agreement is, as difficult
as it is to achieve congressional approval of a trade
agreement, there is a third, equally important phase which
starts once the trade agreement has been adopted, and that is
the implementation. I view implementation and enforcement as
being part of a spectrum.
One needs a variety of tools to make sure that our trade
agreements are implemented, that U.S. workers, U.S. businesses
receive the benefits by having our foreign counterparts live up
to their obligations. I think it starts with engagement with
our counterparts, not just walking away from the negotiating
table, but continuing to engage with our foreign counterparts.
It requires engagement with our domestic stakeholders,
because they will frequently be on the front lines of being
aware of those places where our trade agreements are or are not
working, and it involves, in appropriate cases, using an
arbitral or enforcement mechanism. We are fortunate in that TPA
has laid out very clear expectations with respect to labor and
the environment, and in particular making sure that these
provisions are binding and enforceable through the full gamut
of trade remedies, the same remedies that are available for
commercial provisions.
Turning to how I would do that, I would draw upon the way I
have approached my current position, which is that no single
agency has all of the answers. It would be extremely important
in looking to enforcement of our trade agreements to work with
our State Department, and in particular the embassies on the
ground in the countries of our trading partners, to work with
our Department of Labor, work with the Environmental Protection
Agency, the Department of Energy, USAID, and other agencies
that can bring their expertise to bear.
Second would be working with our stakeholders, our
stakeholders across the full gamut, from our businesses, to our
labor unions, to our NGOs, to our rich civil society
organizations, and obviously a key facet is going to be working
with the members of Congress, and this committee in particular.
Senator Wyden. I would like to go over this with you a
little bit more, because I think those are good principles, but
I still want to know more about how you are going to make the
judgment to send a really tough message. Because, when you
consult with stakeholders, that is good, I am glad we are doing
that, but what the stakeholders really need to hear is that
this time it is different. It is not just a consultation. It is
not a check-the-box kind of thing.
We are required to talk to them. They want to know, are we
going to be serious about bringing strong actions? We did that
with rare earths, and we have had other instances of
enforcement. Certainly my constituents have been the victims of
massive dumping in the solar area. The Chinese hacked into a
major employer in our area. We indicted them for it.
This is an example where, yes, I care a lot about it
because it is my workers, but I mostly care about it because
you cannot just talk about enforcement in the abstract. It has
to be real, and you have to be willing to go the distance. So I
am going to want to talk to you some more about it, and also I
will ask you, in writing, to tell me a bit more about your
priorities on digital goods and access to services in that
particular market, because Senator Cantwell and I come from a
part of the world that is responsible for a lot of good-paying,
high-skill jobs. I will ask you to furnish that in writing.
[The information appears in the appendix on p. 35.]
Senator Wyden. Mr. Reeder, I will get to you on the next
round.
Thank you, Mr. Chairman.
The Chairman. Thank you, Senator.
Senator Cantwell?
Senator Cantwell. Thank you, Mr. Chairman. I will try to be
brief so I can get to both of you, because I definitely view
you as two critical assets to the future of our country and the
future of economic opportunity for individual workers. So,
congratulations on both of your nominations.
Ms. Lago, how do we make sure that dairy products get
access to Japan and Canada, specifically, and how do we also
make sure that the human rights violations in Vietnam are
addressed?
And then to you, Mr. Reeder, I think my constituents, when
it comes to multi-employer pension plans, want to know, why do
we bail out big banks but we do not bail out the pension plans?
So, when I look at the priorities for tax reform and people who
want to reduce the corporate tax rate, I look at it and say,
what are we going to do to stabilize the massive disruption to
retirement savings that happened in relation to the economic
downturn?
If we think that we are somehow, as a Federal Government,
protected from that, we are not, because what is going to
happen is, millions of Americans who are not going to have
their retirement savings and are going to rely solely on Social
Security, are going to be left short, and then they are going
to end up depending on us for other benefits. So to me, I want
to hear your ideas about how we get investment in the pension
program to stabilize multi-
employer plans.
Ms. Lago. Thank you, Senator, for raising the issue about
market access, and in particular in the dairy sector. We are
engaged, through TPP, with both of these countries. Both of
them knew coming into the TPP negotiations that the expectation
was that they would need to provide meaningful market access. I
understand that USTR is continuing to engage with both
countries in these specific sectors and that these discussions
will continue, including this weekend and next week in Maui.
I understand that these are sensitive sectors for both
countries, but again, USTR has informed the countries--all of
the negotiating partners knew coming in--that these were areas
where there would have to be commercially meaningful market
access in order to conclude an agreement that could be brought
back to Congress.
Turning to the issue of Vietnam, the State Department is
the part of the U.S. Government that takes the lead on human
rights, but through TPP we have the opportunity to incentivize
Vietnam even further to bring them to the table to have the
discussion about their human rights, about their labor
practices. So that is an opportunity that we are continuing to
exploit.
Through TPP, we have the opportunity to shape the terms of
engagement in this region, to say what it is that we expect
with respect to transparency, governance, rule of law, labor
protections. So it is because of TPP that we are able to have
yet another opportunity to engage productively with Vietnam.
Senator Cantwell. Well, I want to make sure that just--I
had a chance to talk to President Abe about U.S. imports to
Japan, and so I just really want to make sure that on all these
sensitive products--wheat, beef, dairy--we keep fighting the
battle.
Mr. Reeder?
Mr. Reeder. Thank you for bringing that up, Senator
Cantwell. I wish I had an easy answer, because if there were an
easy answer, the steps would have already been taken. The
solution to the multi-employer problem right now is going to
involve some combination of factors or of steps that will
involve some kind of pain or some kind of difficult political
reality.
One is to reduce benefits. That unprecedented step was
taken in the last Congress, last year. I cannot sit here and
say that I would have voted for that, but it is the law, and
one of my objectives is to make sure that that is administered
as fairly as possible.
Another is to increase premiums that plans pay towards the
multi-employer system, and another one is to find money from
some other source to assist troubled multi-employer plans to--
--
Senator Cantwell. I like that idea.
Mr. Reeder. Well, the administration has a proposal to
address one of the most significantly troubled multi-employer
plans, the United Mine Workers' plan, by using amounts that are
available in another fund. I think that is worth exploration.
If that step were taken, I think we would be one step closer to
shoring up the----
Senator Cantwell. Well, I know my time has expired, Mr.
Chairman. Just, if you could help us in understanding the
Federal Government liability, not by yourself, but I am sure we
could work with other agencies and CBO to get our colleagues to
understand what happens when these plans collapse.
You can certainly ask people to do with less, but at the
same time, the retirement population that does not have enough
savings is coming at us, and that is going to end up being a
liability to the Federal Government.
So, before we give a bunch of money away to corporations
for tax breaks, we had better be figuring out what we are doing
about retirement savings for Americans. They did not get bailed
out, Wall Street did. Thank you.
Senator Wyden. I am glad to hear you would not have voted
for it either.
Mr. Reeder. I think I said, ``I cannot say I would have
voted for it.'' [Laughter.]
Senator Wyden. I like your answer. [Laughter.]
The Chairman. I like your qualification too. I thought it
was pretty good.
Thank you, Senator. Senator Thune?
Senator Thune. Thank you, Mr. Chairman.
Ms. Lago, I understand your portfolio will include small
business issues. We often overlook the benefits of trade to
small businesses when we talk about trade deals such as TPP or
TTIP. If confirmed, how will you help to raise awareness
regarding the benefits of trade to America's small businesses,
and do you agree that both Congress and the administration need
to do a better job of making sure that international trade is
not just about multinational corporations?
Ms. Lago. Thank you, Senator, for raising the issue of
small business. I think all are agreed that there is untapped
potential there. It is such a small percentage of our small and
medium-sized businesses that currently export.
When one looks at those small and medium-sized enterprises
that do export, a very high percentage of them export to only
one or two countries. So, I think that there is market
opportunity. If confirmed, I would intend to focus on outreach,
working with the small businesses directly through their trade
associations in raising awareness.
I think the other thing that is important is that, within
the trade agreements, within TPP, we are looking to address
some of the non-tariff barriers to trade. If one is a large
multinational, it may be far easier to deal with difficulties
in our trading partners' regulatory environment inefficiencies
and those non-tariff stumbling blocks.
So I do believe that, even in the structure of the trade
agreements, we can make it easier for small businesses. But of
course, if confirmed, I would want to reach out to make sure
that they are aware of the opportunities and that they have an
advocate within USTR.
Senator Thune. I think that would be great. I think there
is enormous untapped potential out there. I do think that it is
harder for small businesses because, for larger companies that
have the benefit of economies of scale and legal staffs and
people who can explore and get through all the regulatory and
sometimes other obstacles that exist, it is much easier.
I come from a State where we have a lot of small businesses
that I think have a lot of upside potential when it comes to
creating jobs and growing their businesses through trade, so I
hope that will be a focus, particularly with the new trade
agreements, should they ultimately go into effect. I think
there is a real window of opportunity there.
As you know, Congress recently passed and the President
signed into law an extension of the African Growth and
Opportunity Act, or AGOA. My understanding is that you also
have in your portfolio the responsibility over our trade
relationship with the African continent.
So the question is, what do you see as the major
impediments to expanded U.S. trade with that region? As the
middle class expands in Africa, what are the best opportunities
that you see for American businesses in Africa?
Ms. Lago. Thank you, Senator, for focusing on the
opportunities in Africa. For many years, Africa was viewed as a
continent where the major defining feature was aid, and, at
this point, we have an Africa with a large number of economies
that want to be seen as economic opportunities, as growth
opportunities. That is where AGOA and bilateral relationships
give us opportunities.
When we look at AGOA, the take-up by African countries is
not as high as it could be, and so I think it would be
important to work with the African nations themselves to make
sure that they are able to take advantage of Congress's
historic expansion of AGOA for 10 years.
If confirmed, I would also look to be working bilaterally
with countries, countries with which I already have strong
relationships from my current role at Treasury, as well as my
involvement with the World Bank and the African Development
Bank. I do think that another key to working in Africa is
working regionally.
Many of the economies are individually quite small and face
capacity issues, but there are strong regional associations
like the East African Community, and I think that working with
them, being able to provide technical capacity building, opens
up opportunities for U.S. exporters to look at Africa as an
area for growth.
Senator Thune. And it strikes me, having been there a few
times, that their economies could benefit enormously from the
technology, technical expertise, and things that we in our
country can provide.
I look specifically--because it is an area of great
importance to my State and region of the country--at
agriculture. I look at the enormous potential in Africa and
some of the obstacles that exist to them being able to lift
their economies and their standard of living through more
robust agricultural production and trading opportunities.
So I know that that is probably not something that you
would be specifically focused on, but there are a lot of
departments and agencies that we have in our government that I
would like to see more involved in that area and trying to
bring that economy along, because there is tremendous potential
there that could do so much to improve the lives of people on
the continent, and we need to be looking at those areas.
So, my time has expired. Thank you.
The Chairman. Thank you, Senator Thune.
Senator Grassley?
Senator Grassley. Yes. I have one question for each of you.
In your case, Ms. Lago, if you do not have an answer to this
question, you will not irritate me in any way, so do not make
up an answer. [Laughter.]
You have had a wide array of experiences from your various
jobs, from the private sector to the Department of
Transportation, so I am curious to know, what do you believe
will be the biggest challenges for U.S. exporters to overcome
in international markets over, let us say, the next 5 years?
Ms. Lago. Senator, that is a challenging question, but I
will take a stab at an answer, because I do think that the
challenge that all exporters and all businesses face is the
changing global environment, whether it is the emergence of
formerly poor countries into middle-income status and even
upper middle-income status, or whether it is the evolution in
technology and the fact that our economy today as we negotiate
TPP is very different from the economy, even at the time of our
most recent free trade agreements. So, it is dealing with the
impact of change across all of the dimensions.
I certainly applaud this committee and the Congress for, in
the TPA, recognizing that principal negotiating objectives had
to go beyond prior objectives and address issues of our
Internet economy, of our digital economy, to make sure that the
U.S. stays at the forefront of shaping the rules of the road
for that economy.
Senator Grassley. Mr. Reeder, I am going to quote to you
what previous Director Brad Belt wrote in a column last year in
which he argued it was necessary for Congress to make three
changes to current law, so I am really asking your thoughts on
these three changes. They include: (1) empowering the PBGC to
set its own premiums; (2) changing the PBGC board to include
financial market and pension experts rather than consisting of
secretaries of Labor, Treasury, and Commerce; and (3) granting
the PBGC greater authority to work with distressed multi-
employer and single-
employer plans.
So, what are your thoughts on those suggested changes?
Mr. Reeder. Well, on the first one, there is a proposal to
grant the board of the PBGC authority to set premiums and
allocate premiums. I think the proposal would establish very
strict criteria that would be determined by Congress and would
require input from all stakeholders. I think that is an idea
worth considering; however, I do recognize that it would be a
difficult thing to get enacted.
It was a proposal when I was a staffer here, and I do not
think it ever got to first base, so I am recognizing that it
would be very difficult politically for Congress to give that
authority to the PBGC or to the PBGC board. I should recognize
that the PBGC board is very different than PBGC, because it
would incorporate the Treasury Department, the Commerce
Department, and the Department of Labor.
As far as expanding the board, that is something that we
would certainly like to work with you on, coming up with ideas
and ramifications. It is not something I have thought about
before, so I do not have an answer.
Empowering the PBGC to work more closely with endangered
and failed retirement plans, I think that is something that has
previously been done by Congress, starting with the Pension
Protection Act in 2006, and then with the most recently enacted
MEPRA. I think Congress is doing that more and more. They are
giving the PBGC more tools to work with plans that are in
trouble. So the last item, I think, is actually being
addressed.
Senator Grassley. Thank you both. I yield back.
The Chairman. Well, thank you, Senator.
Senator Wyden has another question.
Senator Wyden. Just one last question, Mr. Chairman.
To fulfill the PBGC mission, Mr. Reeder, the agency has to
collect personal and financial data about millions of Americans
and thousands of companies. As you know, there has been an
onslaught of troubling security breaches, data security
breaches. What steps, in your view, would you pursue to make
sure that the agency can effectively safeguard both personal
data of retired persons and sensitive financial information
from plan sponsors?
Mr. Reeder. Thank you, Senator Wyden. As a Federal
employee, I am keenly aware of the problems that have arisen in
the past months. It is something that is of utmost importance
to me, and I know to the PBGC, just from having talked to them.
They are entrusted with lots of information from plan
participants and plan sponsors, and, in light of recent events,
protecting that information will be one of my top priorities at
PBGC.
I do believe that the Office of Management and Budget has
already issued directives to all agencies to check and evaluate
their technical requirements and their IT components, and I do
believe PBGC has gone through that process, and I think they
have done very well, but it is something that we all must
always be vigilant for. That personal information is something
that we absolutely must protect, and I will do whatever I can
to make that happen.
Senator Wyden. Thank you, Mr. Chairman.
The Chairman. Thank you.
I want to thank the nominees for appearing here today, and
I also want to thank the Senators who have participated. This
has been a good hearing, and you both are excellent candidates
for these positions.
Any questions for the record should be submitted by no
later than Monday, July 27th.
With that, this hearing is adjourned. We wish you both the
very best.
[Whereupon, at 11:02 a.m., the hearing was concluded.]
A P P E N D I X
Additional Material Submitted for the Record
----------
Prepared Statement of Hon. Orrin G. Hatch,
a U.S. Senator From Utah
WASHINGTON--Senate Finance Committee Chairman Orrin Hatch (R-Utah)
today delivered the following opening statement during a committee
hearing considering nominations for the Office of the United States
Trade Representative and the Pension Benefit Guaranty Corporation:
Today we have before the committee two nominees: Marisa Lago, who
has been nominated to serve as Deputy United States Trade
Representative, and Thomas Reeder, who has been nominated to be the
Director of the Pension Benefit Guaranty Corporation, or PBGC.
I want to welcome both nominees to the committee and commend them
both for their willingness to serve.
Ms. Lago, if confirmed, you will be working during one of the most
active periods for U.S. trade policy in recent history. After meeting
with you, I believe you are a fine nominee and I feel confident that
you are qualified to complete all the tasks that lie ahead.
I understand from USTR that you will not be responsible for any of
the ongoing trade negotiations. I find it strange that the
administration does not empower its Deputy U.S. Trade Representatives,
positions that have been created by statute and are confirmed by the
Senate, to manage trade negotiations. However, that is a decision that
the President has apparently made and I do not believe it should impact
your nomination.
However, as we conduct this nomination hearing, negotiations to
conclude the Trans-Pacific Partnership are underway. I want to take a
few minutes to outline my expectations for a strong TPP agreement, with
five key components that I believe are necessary to win sufficient
support for the agreement in the Senate.
First, strong intellectual property rights protections are a
critically important objective. Intellectual property is the backbone
of our modern economy, impacting large and small businesses across
America.
In my home state of Utah, for example, half a million jobs and 67
percent of our exports are directly connected to intellectual property.
That is why the TPA law recently passed by Congress and signed by
President Obama requires that trade agreements meet the high standards
for IP protections found in U.S. law. I fully expect the TPP to reflect
these standards, including 12 years of regulatory data protection for
biologics, strong copyright and trademark protections, prevention of
trade secrets theft, and transparency and procedural fairness for
reimbursement decisions relating to medical devices and
pharmaceuticals.
Second, we need to ensure that U.S. investors receive the same
basic protections that we give to investors--foreign and domestic--here
at home. This includes maintaining strong investor-state dispute
settlement provisions that do not exempt products or industries from
coverage.
Third, TPP must provide real and comprehensive market access
opportunities for U.S. exporters. That means significant reduction, and
ultimately elimination, of tariffs on U.S. exports of goods, services,
and, of course, agricultural products.
Several parties to TPP are resisting our efforts to open
agricultural markets. Let me be clear: If our TPP partners--like Japan
and Canada--are not willing to open their markets to our exports, the
final agreement will never receive sufficient support in Congress.
Fourth, TPP must also reflect the priorities set forth in our TPA
law regarding digital trade. This includes ensuring foreign governments
do not impede cross-
border data flows and eliminating forced localization requirements.
These commitments should apply broadly to all sectors, including
financial services and public telecommunications.
Finally, an increasingly difficult problem our exporters face is
unfair competition from state-owned enterprises. I want American
businesses to be able to compete anywhere in the world. It is essential
for TPP to ensure that state-owned enterprises--including those owned
by sovereign wealth funds--act on a commercial basis.
I expect that the administration will reach a TPP agreement that
meets these and other high standards outlined in our TPA law. Of
course, if it falls short, Congress retains the right to reject the
agreement or remove the expedited procedures, a right I will readily
embrace if necessary.
So, as you can see, Ms. Lago, there are a lot of issues on USTR's
plate. I trust you will do your best to see that the objectives I
outlined are met.
Now, I'd like to take a few minutes to talk about Thomas Reeder.
For those who don't know, Mr. Reeder is a veteran of this committee
and worked for Chairman Baucus.
Welcome back, Mr. Reeder.
If confirmed, you will serve during one of the most challenging
periods the PBGC has ever faced. As you know, this agency was
established by the Employee Retirement Income Security Act of 1974 to
insure the pensions owed to employees under private defined-benefit
plans. In the 40 years it has been in existence, the PBGC has become a
very important agency, insuring pensions for more than 1.5 million
participants in nearly 4,700 failed single-employer and multi-employer
plans.
For example, the PBGC made $5.6 billion in payments in FY 2014
alone.
But, in some ways, this understates the challenges faced by the
PBGC, particularly when we're talking about multi-employer pension
plans.
Last year, reports indicated that the deficits in PBGC's single-
employer pension insurance program were projected to drop from more
than $27 billion to just over $7 billion in 2023. However, the story
for the multi-employer program was altogether different, as those
deficits are projected to increase from around $8 billion to nearly $50
billion over the next decade.
Late last year, as part of the so-called Cromnibus, at the request
of multi-
employer pension plan managers, employers who contribute to multi-
employer pension plans, and many unions representing employees,
Congress passed the Multi-employer Pension Reform Act. This new law
gives pension plan trustees the power, in extreme cases and pursuant to
regulations published by the Treasury, to reduce benefits in order to
avoid plan insolvency and increased future reductions.
So, as I have said before, this is a sobering moment for the
pension system. And beyond the hardship some retirees inevitably will
experience, it highlights both the challenge of delivering on the
promise of lifetime retirement income and the stakes for retirees if
the system fails.
So, Mr. Reeder, if confirmed, you will have your work cut out for
you.
Once again, I want to welcome both of our nominees today, and I
look forward to their testimony.
______
Prepared Statement of Hon. Marisa Lago, Nominated to be Deputy U.S.
Trade Representative, With the Rank of Ambassador, Office of the United
States Trade Representative
Chairman Hatch, Ranking Member Wyden, Members of the Senate Finance
Committee, thank you for welcoming me here. It is a tremendous
privilege to be considered by this Committee as the nominee for Deputy
United States Trade Representative. Considering the achievements of
those who have served in this position and the urgency of our nation's
leadership on trade, it is also humbling to sit before you today. I am
grateful to President Obama and Ambassador Froman for their confidence
in me.
With your permission, I would like to introduce my architect
husband, Ronald Finiw, who joins me here today. As I've changed jobs
and moved between cities, Ron has been the constant, the love of my
life, and my unflagging supporter for the past 41 years.
I'd also like to recognize two other major influences in my life:
My mother, Maria Pita, a Spanish immigrant and proud American, who
gave me the gift of being raised bilingual;
And my late father, Louis Lago, child of Spanish immigrants and
World War II Navy veteran.
They instilled in me a thirst for learning, and burst with pride when I
became my family's first college graduate. As a 30-plus year civilian
employee of the Department of Defense, my father also shared his pride
in being a public servant--a lesson that has shaped my career in
federal, state and local government.
Throughout my time in government, I have seen first-hand the power
of trade and investment to improve lives. Whether it was in New York,
where as the President and CEO of the state's economic development
authority, I was able to help revitalize the decaying Brooklyn
waterfront where my grandfather had once worked on a tug boat. Or in my
current role at Treasury, where I have worked with the World Bank and
regional development banks to increase poor women's access to capital,
allowing them to build businesses and support communities--and, over
the long term, create export opportunities for U.S. businesses, small
and large.
President Obama and his team at USTR, with the support of this
Committee and the full Congress in passing the three recent trade
bills, are pursuing the most ambitious trade agenda in a generation, an
agenda that is designed to support more good jobs in the United States,
strengthen the middle class, and build on the gains that we have made
in recent years.
Agreements with 11 other countries in the Asia-Pacific region and
the European Union's 28 Member States are at the heart of this trade
agenda. Once concluded, the Trans-Pacific Partnership (TPP) and the
Transatlantic Trade and Investment Partnership (T-TIP) will give the
United States unfettered access to two-thirds of the global
marketplace.
The Obama Administration is also pursuing landmark agreements in
Geneva that would eliminate tariffs for 90 percent of trade in
information technology products and environmental goods, as well as
liberalize services trade with 75 percent of the world's services
market. These agreements will support additional good-paying jobs in
sectors where the United States has a competitive advantage.
These agreements provide an unparalleled opportunity for the United
States to continue shaping the rules of the road for the world trading
system. However, if the United States does not adapt our trading system
to better reflect today's global economic realities, we risk ceding
leadership to other countries--countries that may not share our
interests and our values, and that may pursue their own regional
initiatives with weaker standards for protecting labor, the environment
and intellectual property.
The trade deals that our negotiators strike will level the playing
field for U.S. workers, farmers, ranchers, businesses and service
providers. I understand full-well, however, from my vantage point at
Treasury and my prior service at the Securities and Exchange Commission
that our international agreements require vigilant monitoring and
enforcement. The Obama Administration has filed 19 complaints at the
WTO and we have won every one of them. If confirmed, I will work to
ensure vigorous implementation and enforcement of all of our
multilateral, regional, and bilateral agreements.
I must again thank this Committee and Congress for having passed a
historic trade package--Trade Promotion Authority (TPA), Trade
Adjustment Assistance, and the Trade Preference Extension Act. These
are critical steps that will allow us to conclude and enforce high-
standard agreements; give middle-class workers the fair shot that they
deserve to compete and win in today's global economy; open markets for
our small businesses and innovators; and support a prosperous future
for millions throughout sub-Saharan Africa, Central and South America,
the Caribbean, and the rest of the developing world.
These are ambitious goals, but as heirs to a long tradition of
American leadership on trade--leadership that has routinely risen above
party divisions to advance our nation's interests and values--we should
aim for nothing less. And thanks to the strong leadership of this
Committee, trade policy remains among the most promising areas for
bipartisan cooperation.
Delivering on these promises depends on close cooperation between
Congress and the Executive Branch. There will be no TPP and no T-TIP
without a strong partnership that begins here. Thankfully, with TPA in
hand, we have the framework for the strong partnership that our nation
needs to continue leading on trade.
It would be an honor to help to carry out the marching orders that
Congress has provided the Obama Administration through TPA. I know that
this Committee and USTR have a long history of partnership and, if
confirmed, I commit to maintaining that same level of cooperation.
Thank you again for the opportunity to appear before you today. I
am happy to answer any questions that you may have.
______
SENATE FINANCE COMMITTEE
STATEMENT OF INFORMATION REQUESTED
OF NOMINEE
A. BIOGRAPHICAL INFORMATION
1. Name (include any former names used): Lago, Maria Louise (AKA
Lago, Marisa)
2. Position to which nominated: Deputy United States Trade
Representative, with the rank of Ambassador
3. Date of nomination: November 12, 2014
4. Address (list current residence, office, and mailing addresses):
5. Date and place of birth: December 4, 1955; Brooklyn, NY
6. Marital status (include maiden name of wife or husband's name):
7. Names and ages of children:
8. Education (list secondary and higher education institutions, dates
attended, degree received, and date degree granted):
Educational Dates of
Institution Dates attended Degrees received degrees
Harvard Law School 9/1979-5/1982 J.D. cum laude 5/1982
Brown University 9/1977-12/1977 none n/a
(Graduate School;
Applied Math
Department)
The Cooper Union 9/1973-5/1977 B.S. Physics 5/1977
Morris Catholic 9/1969-6/1973 Diploma 6/1973
H.S. (estimate)
9. Employment record (list all jobs held since college, including the
title or description of job, name of employer, location of work, and
dates of employment):
Title: Assistant Secretary for International Markets
and Development
Employer: United States Department of the Treasury
Location: 1500 Pennsylvania Avenue NW, Washington, DC
20220
Dates: 2/10-present
Title: Acting United States Director of the European
Bank for Reconstruction and Development
Employer: United States Department of the Treasury
Location: 1500 Pennsylvania Avenue NW, Washington, DC
20220
Dates: 12/13-present
Note: Position is held simultaneously with my
position as Assistant Secretary
Title: President and CEO (9/08-6/09); Advisor (7/09-2/
10)
Employer: Empire State Development Corporation (ESDC)
Location: 633 Third Avenue, NY, NY 10017
Dates: 9/08-12/09
Title: Commissioner
Employer: New York State Department of Economic
Development
Location: 633 Third Avenue, NY, NY 10017
Dates: 9/08-6/09
Note: Position was held simultaneously with my
position as President and CEO of ESDC
Title: Global Head of Compliance
Employer: Citi Markets and Banking (Citigroup, Inc.;
Citigroup Global Markets, Inc.)
Location: 388 Greenwich Street, NY, NY 10013
Dates: 4/03-9/08
Title: Director of Global Workforce Development
Employer: Citigroup, Inc.
Location: 390 Park Avenue, NY, NY 10022
Dates: 8/01-3/03
Title: Director, Office of International Affairs
Employer: U.S. Securities and Exchange Commission
Location: 100 F Street, NE, Washington, DC 20549
Dates: 2/97-7/01
Title: Chief Economic Development Officer & Director,
Boston Redevelopment Authority
Employer: City of Boston
Location: One City Hall Square, Boston, MA 02201
Dates: 2/94-1/97
Note: The two positions were held simultaneously
Title: General Counsel
Employer: New York City Economic Development Corporation
(NYC EDC)
Location: 110 William Street, NY, NY 10038
Dates: 9/90-2/94
Title: Senior Vice President for Legal Affairs
Employer: New York City Industrial Development Agency
Location: 110 William Street, NY, NY 10038
Dates: 1991 (estimate)-2/94
Note: Position was held simultaneously with my
position as General Counsel of NYC EDC
Title: Junior Partner; Associate
Employer: Nutter, McClennen & Fish
Location: World Trade Center West, 155 Seaport
Boulevard, Boston, MA 0221O
Dates: 2/86-8/90 (Junior Partner, 1/88-8/90;
Associate, 2/86-12/87)
Title: Special Assistant to the Chairman
Employer: New York City Department of City Planning
Location: 22 Reade Street, NY, NY 10007
Dates: 10/83-12/85
Title: Law Clerk to the Honorable Hugh Bownes
Employer: U.S. Court of Appeals for the First Circuit
Location: James C. Cleveland Federal Building, 55
Pleasant Street, Concord, NH 03301
Dates: 9/82-8/83
Title: Summer Associate
Employer: Berle, Butzer, Kass & Case (now defunct law
firm)
Location: 45 Rockefeller Plaza, NY, NY 10111
Dates: 6/82-7/82 (estimate)
Title: Summer Associate
Employer: Cleary Gottlieb Steen & Hamilton LLP
Location: One Liberty Plaza, NY, NY 10006
Dates: 6/81-8/81 (estimate)
Title: Summer Research Assistant for Professor Lance
Liebman
Employer: Harvard Law School
Location: Harvard Law School, 1563 Massachusetts Ave.,
Cambridge, MA 02138
Dates: 6/80-8/80 (estimate)
Title: Actuarial Assistant
Employer: William M. Mercer
Location: 99 High Street, Boston, MA 02110
Dates: 2/78-8/79 (estimate)
10. Government experience (list any advisory, consultative, honorary,
or other part-time service or positions with Federal, State or local
governments, other than those listed above):
Member, Massachusetts Housing Partnership
Member, Clerk, Vice-Chairperson of Scituate (Massachusetts)
Planning Board
Member, Scituate (Massachusetts) Housing Partnership
Member, Scituate (Massachusetts) Fair Housing Committee
11. Business relationships (list all positions held as an officer,
director, trustee, partner, proprietor, agent, representative, or
consultant of any corporation, company, firm, partnership, other
business enterprise, or educational or other institution):
------------------------------------------------------------------------
Office held (if
Organization any) Dates
------------------------------------------------------------------------
Empire Stale Development Corporation President and 9/08-6/09
(ESDC) CEO
------------------------------------------------------------------------
Citigroup Managing 4/03-9/08
Director
------------------------------------------------------------------------
Citigroup Director 8/01-3/03
------------------------------------------------------------------------
Boston Redevelopment Authority Director 2/94-1/97
------------------------------------------------------------------------
New York City Economic Development General Counsel 9/90-2/94
Corporation
------------------------------------------------------------------------
New York City Industrial Development Senior Vice 1991 (est.)-2/
Agency President 94
------------------------------------------------------------------------
Nutter, McClennen & Fish Junior Partner 1/88-8/90
------------------------------------------------------------------------
12. Memberships (list all memberships and offices held in
professional, fraternal, scholarly, civic, business, charitable, and
other organizations):
------------------------------------------------------------------------
Office held (if
Organization any) Dates
------------------------------------------------------------------------
Cooper Union Engineering Advisory Member 11/98-2/10
Council
------------------------------------------------------------------------
NYC Investment Partnership Member, Board 3/09-6/09
of Directors
------------------------------------------------------------------------
Lower Manhattan Cultural Council Member, Board 4/06-8/08
of Directors
------------------------------------------------------------------------
Enterprise Foundation Member, 2002-2005
Advisory Board
------------------------------------------------------------------------
Hannah House Member, Board 1997-6/01
of Directors
------------------------------------------------------------------------
Women's Forum of Washington Member 1997-2001
(estimate)
------------------------------------------------------------------------
Massachusetts Women's Forum Member 1994-1997
------------------------------------------------------------------------
Fannie Mae Housing Impact Advisory Member 1995-1997
Council
------------------------------------------------------------------------
Boston Management Consortium Director 1995-1/97
------------------------------------------------------------------------
National Economic Development and Law Member, Board 1991-1994
Center; currently called the Insight of Directors
Center for Community Economic
Development
------------------------------------------------------------------------
Association of the Bar of the City of Member; 1991 (estimate)-
New York Committee on 1/94
Real Property
Law & Special
Committee on
Government
Counsel
------------------------------------------------------------------------
Massachusetts Housing Partnership Member 1990
------------------------------------------------------------------------
(Boston) Metropolitan Area Planning Member 1987-1990
Council (MAPC)
------------------------------------------------------------------------
(Boston) South Shore Coalition (an Member (87-90); 1987-1990
affiliate of MAPC) Clerk (88-89);
Vice-
Chairperson
(88-90)
------------------------------------------------------------------------
Scituate (Massachusetts) Planning Member (87-90); 1987-1990
Board Clerk (87-88);
Vice-
Chairperson
(88-90)
------------------------------------------------------------------------
Scituate (Massachusetts) Housing Member 1988-1990
Partnership and Scituate Fair Housing
Committee
------------------------------------------------------------------------
Boston Bar Association (BBA) Member; 1986-1990
Committee on P(estimate)
Real Property
Law,
Environmental
Committee, and
Special
Committee on
Minorities in
the Profession
------------------------------------------------------------------------
Lawyers Clearinghouse on Affordable Member 1987-1990
Housing and Homelessness (Joint P(estimate)
project of BBA & Massachusetts Bar
Association)
------------------------------------------------------------------------
Boston Law Firm Group; currently Representative 1986-1990
called the Boston Lawyers Group of the law P(estimate)
firm Nutter
McClennen &
Fish, my then-
employer
------------------------------------------------------------------------
Scituate (Massachusetts) Democratic Member 1988
Town Committee
------------------------------------------------------------------------
13. Political affiliations and activities
a. List all public offices for which you have been a candidate:
Scituate (Massachusetts) Planning Board; Member (87-90); Clerk
(87-88); Vice-Chair (88-90)
b. List all memberships and offices held in and services
rendered to all political parties or election committees during the
last 10 years:
None
c. Itemize all political contributions to any individual,
campaign organization, political party, political action committee, or
similar entity of $50 or more for the past 10 years:
Name Date Amount
Friends of Tom Carper 8/5/05 $2,000
Citigroup PAC--Federal 12/29/05 $5,000
Democratic Senatorial Campaign Committee 4/20/06 $2,500
Friends of Hillary 6/7/06 $1,000
Citigroup PAC--Federal 8/14/06 $5,000
Friends of Chris Dodd 1/2/07 $2,100
Rangel For Congress 3/30/07 $2,000
The Reed Committee 6/7/07 $500
Citigroup PAC--Federal 6/14/07 $5,000
The Reed Committee 6/21/07 $500
Friends of Max Baucus 9/14/07 $2,300
Hillary Clinton for President 10/5/07 $2,300
The Reed Committee 3/2/08 $2,300
Udall for Colorado 4/22/08 $500
Citigroup PAC--Federal 5/15/08 $208
Friends of Rahm Emanuel 5/30/08 $2,300
Citigroup PAC--Federal 5/30/08 $208
Citigroup PAC--Federal 6/15/08 $208
Citigroup PAC--Federal 6/30/08 $208
Friends of Gregory Meeks 7/2/08 $2,300
Citigroup PAC--Federal 7/15/08 $208
Obama for America 7/30/08 $1,000
Citigroup PAC--Federal 7/31/08 $208
Citigroup PAC--Federal 8/15/08 $208
Citigroup PAC--Federal 8/29/08 $208
Obama for America 8/31/08 $1,300
Citigroup PAC--Federal 9/15/08 $208
Democratic National Committee 11/13/08 $100
Deval Patrick for Governor 9/02/09 $500
Obama for America 12/31/11 $100
Obama for America 6/29/12 $1,000
Obama for America 10/2/12 $250
Presidential Inaugural Committee 8/1/13 $150
14. Honors and Awards (list all scholarships, fellowships, honorary
degrees, honorary society memberships, military medals, and any other
special recognitions for outstanding service or achievement):
------------------------------------------------------------------------
Description Dates (If applicable)
------------------------------------------------------------------------
The Cooper Union: Presidential 1996
Citation
------------------------------------------------------------------------
German Marshall Fund, Fellowship for 1989
International Environmentalists
------------------------------------------------------------------------
National Science Foundation: Honorable 1977
Mention
------------------------------------------------------------------------
The Cooper Union: Full tuition 1973-1977
scholarship for 4 years of
undergraduate education
------------------------------------------------------------------------
Sigma Pi Sigma (national physics honor 1976-1977 (estimate)
society)
------------------------------------------------------------------------
Morris Catholic High School: 1973
valedictorian
------------------------------------------------------------------------
15. Published writings (list the titles, publishers, and dates of all
books, articles, reports, or other published materials you have
written):
I have done my best to identify all of my published writings,
including through a review of personal files and searches of publicly
available electronic databases. Despite my searches, there may be other
materials I have been unable to identify, find, or remember.
U.S. Department of the Treasury blog post, 4/12/13.
``Opportunity for Youth is the Key to Haiti's Future''
U.S. Department of the Treasury blog post, 4/20/12. ``A Visit to
Rwanda's Land Husbandry, Water Harvesting, and Hillside Irrigation
Project''
U.S. Department of the Treasury blog post, 11/07/11. ``Women:
The Key to Development Solutions''
U.S. Department of the Treasury blog post, 09/21/11. ``The
Impact of the World Bank and Multilateral Development Banks on National
Security''
U.S. Department of the Treasury blog post, 12/29/10.
``Development Dividends: Emerging Africa''
Association of the Bar of the City of New York, Real Property
Committee, 1992. Seminar on ``Hazardous Materials Issues in Real Estate
Transactions: Negotiation of Commercial Documentation.'' Course
Materials: ``Environmental Clean-Ups: Who's Liable Now?''
Massachusetts Continuing Legal Education, 1990. Course
materials: ``Important New Developments in Wetlands and Waterways
Regulation.''
Massachusetts Continuing Legal Education, 1989. Course materials
published as ``Massachusetts Zoning Manual: Nonconforming Uses and
Structures.''
16. Speeches (list all formal speeches you have delivered during the
past 5 years which are on topics relevant to the position for which you
have been nominated):
I have done my best to identify all formal speeches relevant to
the position during the last 5 years, including through a review of
personal files and searches of publicly available electronic databases.
Despite my searches, there may be other materials I have been unable to
identify, find, or remember.
Remarks of Assistant Secretary Lago at the Seminar on the U.S.
Regulatory and Institutional Environment for Chinese Foreign Direct
Investment, September 25, 2013
Remarks of Assistant Secretary for International Markets and
Development Marisa Lago at the 2012 Caixin Summit, November 21, 2012
Assistant Secretary of the Treasury Marisa Logo Speaks to Chines
Companies about the United States Open Investment Policy and CFIUS,
November 15, 2012
Remarks by Assistant Secretary for International Markets and
Development Marisa Lago at the Annual Meeting of the African
Development Bank, May 31, 2012
Remarks by Assistant Secretary for International Markets and
Development Marisa Lago at the 53rd Annual Meeting of the Inter-
American Development Bank Group, March 19, 2012
Remarks by Assistant Secretary Marisa Lago on ``America's Continued
Commitment to Open Investment,'' November 14, 2011
Remarks by Assistant Secretary Marisa Lago to the Institute of
International Bankers, September 26, 2011
Remarks by Assistant Secretary Marisa Lago at a Georgetown University
and PwC Conference on ``Financial Institutions in the New Regulatory
Environment: Opportunities, Constraints, and Global Challenges,''
September 22, 2011
Written Testimony of the Treasury Assistant Secretary Marisa Lago
before the House Financial Services Subcommittee on International
Monetary Policy and Trade, September 21, 2011
Statement by U.S. Governor at the European Bank for Reconstruction and
Development's Twentieth Annual Meeting of the Boards of Governors, May
19, 2011
Statement by the U.S. Governor, Treasury Assistant Secretary Marisa
Lago, May 5, 2011
Assistant Secretary Marisa Lago's Remarks at Welcome Ceremony for U.S.-
China Initiative on City-Level Economic Cooperation, April 19, 2011
Remarks by Assistant Secretary Marisa Lago on International Financial
Regulatory Reform, April 12, 2011
U.S. Governor's Speech by Assistant Secretary Marisa Lago at the IDB
Annual Meeting 2011, March 28, 2011
Remarks by Assistant Secretary Marisa Lago to the Partnership to End
Hunger and Poverty in Africa's Annual Forum, March 1, 2011
Assistant Secretary for International Markets and Development Marisa
Lago Introductory Comments for Eurofi Panel Discussion of ``Prospects
of Future G-20 Discussions and Expected Impacts for the EU,'' September
30, 2010
Testimony of Marisa Lago, Assistant Secretary of the Treasury for
International Markets and Development before the Senate Foreign
Relations Committee and the House Ways and Means Committee, September
15, 2010
Assistant Secretary Marisa Lago Statement at the 45th Annual Meeting of
the Board of Governors of the African Development Bank, May 28, 2010
Prepared Statement by U.S. Governor Marisa Lago at the European Bank
for Reconstruction and Development's Nineteenth Annual Meeting of the
Boards of Governors, May 18, 2010
Assistant Secretary Lago's Statement Asian Development Bank 43rd annual
meeting Tashkent, Uzbekistan, May 3, 2010
Assistant Secretary Marisa Lago Address to the Plenary Session of the
Inter-
American Development Bank Annual Meeting, Cancun, Mexico, March 22,
2010
17. Qualifications (state what, in your opinion, qualifies you to
serve in the position to which you have been nominated):
Over the years, I have acquired broad experience in diverse
areas that will serve me well if confirmed as Deputy United States
Trade Representative. My areas of expertise include: international
economic diplomacy; national security; international development
assistance; international financial services regulation; international
financial services; federal, state and municipal governance and policy;
and leadership and management of large, complex initiatives and
organizations. Throughout my career I have maintained a strong
commitment to public service and community involvement.
U.S. Department of the Treasury: Assistant Secretary for International
Markets and Development
In my current position (2010 to present), I lead Treasury's role on the
Committee on Foreign Investment in the United States and direct
Treasury's portfolio on international development assistance, technical
assistance, international financial services regulation and trade in
financial services.
U.S. Securities and Exchange Commission: Director, Office of
International Affairs
From 1997 to 2001, I headed the Office of International Affairs for the
U.S. Securities and Exchange Commission. As the head of the office
responsible for all aspects of the SEC's international activities, I
played a key role in numerous international initiatives involving:
trade in financial services; international accounting standards;
regulation of financial conglomerates; corporate governance; securities
activities on the Internet; and enhancing financial regulation in off-
shore financial centers. I also represented the SEC with the securities
and banking regulators in both developed and emerging markets in
activities such as: negotiating Memoranda of Understanding with foreign
authorities; obtaining evidence from abroad and responding to foreign
requests for assistance; rendering advice concerning international
matters to SEC Commissioners and staff; coordinating international
initiatives with other SEC divisions, U.S. government agencies, and
foreign authorities; crafting proposals for legislative changes
relating to the SEC's international activities; and providing
international technical assistance.
Citigroup Markets and Banking: Global Head of Compliance
From 2003 to 2008, I was the Global Head of Compliance for Citigroup's
corporate and investment bank. While there, I was responsible for
compliance matters for Citigroup's Markets and Banking businesses
including: investment and corporate banking; sales and trading of
equities, fixed income, currencies and commodities; public finance; and
transaction services. I led a team of over 500 employees, located in
over 80 countries, with an annual budget in excess of $100,000,000. I
was a Member of the Citigroup Management Committee, and held Series 24
and 14 securities licenses.
Empire State Development Corporation: President and CEO
New York State Department of Economic Development: Commissioner
As the head of New York's chief economic development agency, I pushed
forward important small business initiatives, tourism programs,
industry retention negotiations and long-term development projects
including the revitalization of Erie Canal Harbor in Buffalo, the
expansion and renovation of the Jacob Javits Convention Center in
Manhattan, and the construction of Brooklyn Bridge Park.
Boston Redevelopment Authority: Director
City of Boston: Chief Economic Development Officer
As Boston's Chief Economic Development Officer from 1994 to 1997, I
headed the Boston Redevelopment Authority, which is responsible for
city planning, zoning, real estate development, and real estate
finance. I was also responsible for several other city agencies that
provided the city's public housing, affordable housing, neighborhood
development and job training. All together I managed 16 million square
feet (400 acres) of municipally owned land, 60,000 public housing
tenants (10% of the city population), 1,300 employees and a budget of
over $300,000,000.
New York City Economic Development Corporation: General Counsel
From 1990 to 1994, I was General Counsel of the New York City Economic
Development Corporation (EDC), a city-funded public benefit corporation
responsible for commercial, industrial and waterfront development. In
this role, I negotiated a retention deal to prevent out-of-state
relocation of commodities exchanges and leased city park land to the
U.S. Tennis Association for a new U.S. Open tennis stadium.
Other Experience
In the mid-1980s, I was Special Assistant to the Chairman of the New
York City Planning Commission. I began my legal career as a law clerk
to the Honorable Hugh. H. Bownes of the U.S. Court of Appeals for the
First Circuit. In the late 1980s, I became a Junior Partner in the Real
Estate Development and Finance Department of the Boston law firm,
Nutter McClennen and Fish. I earned a J.D. cum laude from Harvard Law
School in 1982, and a B.S. in physics from Cooper Union in 1977.
Throughout my career, I have been committed to outside civic
activities. These have included service on the Board of Directors of
the Lower Manhattan Cultural Council, the Advisory Board of the
Enterprise Foundation, the Housing Impact Advisory Council of Fannie
Mae, and the Board of Directors of the National Economic Development
and Law Center.
I am fluent in Spanish, which has been helpful in both my international
and domestic positions.
B. FUTURE EMPLOYMENT RELATIONSHIPS
1. Will you sever all connections with your present employers,
business firms, associations, or organizations if you are confirmed by
the Senate? If not, provide details.
No. I will continue the connections of my current government
position in my new government position if confirmed.
2. Do you have any plans, commitments, or agreements to pursue
outside employment, with or without compensation, during your service
with the government? If so, provide details.
No.
3. Has any person or entity made a commitment or agreement to employ
your services in any capacity after you leave government service? If
so, provide details.
No.
4. If you are confirmed by the Senate, do you expect to serve out
your full term or until the next Presidential election, whichever is
applicable? If not, explain.
Yes.
C. POTENTIAL CONFLICTS OF INTEREST
1. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated.
None.
2. Describe any business relationship, dealing or financial
transaction which you have had during the last 10 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated.
None.
3. Describe any activity during the past 10 years in which you have
engaged for the purpose of directly or indirectly influencing the
passage, defeat, or modification of any legislation or affecting the
administration and execution of law or public policy. Activities
performed as an employee of the Federal government need not be listed.
None.
4. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items. (Provide the Committee with two copies of any trust or other
agreements.)
In connection with the nomination process, I have consulted with
the Office of Government Ethics and the designated agency ethics
official to identify potential conflicts of interest. Any potential
conflicts of interest will be resolved in accordance with the terms of
an ethics agreement. I am not aware of any current potential conflicts.
5. Two copies of written opinions should be provided directly to the
Committee by the designated agency ethics officer of the agency to
which you have been nominated and by the Office of Government Ethics
concerning potential conflicts of interest or any legal impediments to
your serving in this position.
USTR's Designated Ethics Official has determined that I have no
potential conflicts of interest.
6. The following information is to be provided only by nominees to
the positions of United States Trade Representative and Deputy United
States Trade Representative:
Have you ever represented, advised, or otherwise aided a foreign
government or a foreign political organization with respect to any
international trade matter? If so, provide the name of the foreign
entity, a description of the work performed (including any work you
supervised), the time frame of the work (e.g., March to December 1995),
and the number of hours spent on the representation.
No.
D. LEGAL AND OTHER MATTERS
1. Have you ever been the subject of a complaint or been
investigated, disciplined, or otherwise cited for a breach of ethics
for unprofessional conduct before any court, administrative agency,
professional association, disciplinary committee, or other professional
group? If so, provide details.
No.
2. Have you ever been investigated, arrested, charged, or held by any
Federal, State, or other law enforcement authority for a violation of
any Federal, State, county or municipal law, regulation, or ordinance,
other than a minor traffic offense? If so, provide details.
No.
3. Have you ever been involved as a party in interest in any
administrative agency proceeding or civil litigation? If so, provide
details.
Yes. I believe that I have been a party, in my official capacity
only (and not as an individual), to lawsuits challenging the actions of
the following entities:
Empire State Development Corporation
New York State Department of Economic Development
Boston Redevelopment Authority
New York City Economic Development Corporation
Scituate Planning Board
The records of any such lawsuits are available from the general
counsel of each of these entities.
The following are the only times that I have been sued in my
personal capacity for activities related to my public service:
WHILE EMPLOYED BY THE BOSTON REDEVELOPMENT AUTHORITY:
------------------------------------------------------------------------
------------------------------------------------------------------------
Court: Proceeding: Role: Date filed:
Suffolk (Massachusetts) Civil action Defendant 5/1997
Superior Court Civil
Docket #SUCV97-02875C
------------------------------------------------------------------------
Comments:
The plaintiff alleged employment discrimination, interference with
constitutional rights, violation of Massachusetts Equal Rights Act and
intentional interference with advantageous relations. Case against
Marisa Lago was dismissed for failure to state a claim.
------------------------------------------------------------------------
Agency: Proceeding: Role: Date filed:
Massachusetts Commission Administrativ None Unknown
Against Discrimination e
(MCAD)
------------------------------------------------------------------------
Comments:
The plaintiff in the case above also filed a related administrative
claim with the Massachusetts Commission Against Discrimination (MCAD).
I have no further information about the MCAD claim, and believe that it
was dismissed.
------------------------------------------------------------------------
WHILE SERVING ON THE SCITUATE PLANNING BOARD:
------------------------------------------------------------------------
------------------------------------------------------------------------
Court: Proceeding: Role: Date filed:
Plymouth (Massachusetts) Civil action Defendant 1990 (est.)
Superior Court Civil
Docket C.A. #90-1761B
(Loretta E. Darien et al.
v. Thomas Bledsoe et al.)
------------------------------------------------------------------------
Comments:
The case was a challenge by the proponents of an animal shelter of the
action of the Scituate (Massachusetts) Planning Board (SPB) in denying
a site plan approval/special permit. The suit, which named both the SPB
and each individual SPB member, was dropped by the plaintiffs.
------------------------------------------------------------------------
The following are the only times that I have been a party in my
personal capacity:
IN MY PERSONAL CAPACITY:
------------------------------------------------------------------------
------------------------------------------------------------------------
Court: Proceeding: Role: Date filed:
Suffolk (Massachusetts) Civil action Plaintiff 10/1994
Superior Court Civil
Docket #94-5219
------------------------------------------------------------------------
Comments:
The case was a dispute regarding proposed development of land adjacent
to my then-home. I challenged the action of the Massachusetts
Department of Environmental Protection (DEP) in affirming the granting
of an Order of Conditions (0 of C) by the Scituate (Massachusetts)
Conservation Commission (SCC), acting as an arm of the Commonwealth of
Massachusetts under the Massachusetts Wetlands Protection Act. The
matter arose from the attempt of a speculator to build on an
unbuildable lot located adjacent to my then-home. Development permits
were denied (which was the result that I sought).
------------------------------------------------------------------------
Court: Proceeding: Role: Date filed:
Plymouth (Massachusetts) Civil action Plaintiff 12/1993
Superior Court Civil (est.)
Docket #93-0927B
------------------------------------------------------------------------
Comments:
This is a case related to the previous case. I believe that I was the
named plaintiff, but do not have records of this case. Also, I believe
that there may have also been related administrative proceedings before
the DEP, SCC and Scituate Buildings Department. I do not have records
of any such proceedings.
------------------------------------------------------------------------
Court: Proceeding: Role: Date filed:
US Tax Court Docket #33526- Civil action Defendant 1987 (est.)
87``S''
------------------------------------------------------------------------
Comments:
For the 1984 tax year, the IRS alleged a deficiency in my return (Joint
return with spouse). We challenged this determination. A decision
entered on June 6, 1988 found that there was no deficiency and no taxes
due.
------------------------------------------------------------------------
Court: Proceeding: Role: Date filed:
Unknown New York Court Civil action Plaintiff 1975 (est.)
------------------------------------------------------------------------
Comments:
Challenge (along with a number of my classmates who were then Physics
majors at Cooper Union) to the decision by Cooper Union to terminate
the Physics program. I believe that plaintiffs dropped the challenge.
------------------------------------------------------------------------
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? If so, provide details.
No.
5. Please advise the Committee of any additional information,
favorable or unfavorable, which you feel should be considered in
connection with your nomination.
None.
E. TESTIFYING BEFORE CONGRESS
1. If you are confirmed by the Senate, are you willing to appear and
testify before any duly constituted committee of the Congress on such
occasions as you may be reasonably requested to do so?
Yes.
2. If you are confirmed by the Senate, are you willing to provide
such information as is requested by such committees?
Yes.
______
Questions Submitted for the Record to Hon. Marisa Lago
Questions Submitted by Hon. Orrin G. Hatch
Question. One of the significant problems for U.S. services
companies working to expand into foreign markets and compete globally
is that an increasing number of governments are considering or imposing
data server localization requirements. In TPA, we required that the
Administration ``ensure that governments refrain from implementing
trade-related measures that impede digital trade in goods and services,
restrict cross-border data flows, or require local storage or
processing of data.'' This committee, in the report accompanying the
TPA bill, wrote that we expect U.S. negotiators to pursue protections
from foreign governments imposing data localization requirements for
all sectors, including financial services.
We are concerned that the administration continues to carve out
financial services from data server localization requirement
protections. If confirmed, will you ensure that all sectors, including
financial services, are protected against localization requirements?
Answer. The significant increase in localization barriers to trade
around the world is of serious concern to the Obama Administration. We
are advancing efforts to reduce and prevent the proliferation of
localization barriers to trade, including restrictions on data flows
and requirements to establish infrastructure domestically, through the
full range of bilateral, multilateral, and regional forums, including
the WTO, APEC, and the OECD. Trade agreements are an important means
for ensuring that the Internet and the commercial ecosystem it supports
remains open and can grow and thrive.
U.S. firms lead the world in IT innovation and maintain a
competitive advantage by being at the edge of that evolution, as both
users and suppliers of advanced technology. We recognize that it is a
significant burden for our companies to be forced to build data centers
in every market they serve: a burden in cost; reliability; and
flexibility. I understand that USTR has advanced new trade provisions
in TPP to address concerns related to data localization. In supporting
these objectives, we have been pressing for robust provisions in
financial services to allow financial services providers the
flexibility to transfer data abroad and engage in cross-border data-
processing. However, our financial regulators have raised strong
concerns about provisions that could hamper effective regulation and
supervision of financial markets and institutions by, for example,
limiting their ability to access books and records in a timely fashion.
The Administration's approach to financial services seeks to strike a
balance between our regulators' needs for access to supervisory
information and our companies' commercial interests in processing data
on a cross-border basis.
Question. I am very concerned about the state of intellectual
property rights protections around the world, including in developing
countries, I do not believe it serves these countries and the goal of
economic development to turn a blind eye to IPR violations. As you
know, the AGOA program explicitly lists the protection of intellectual
property among the eligibility criteria.
The reauthorization of AGOA Congress recently passed includes a
requirement that the administration conduct an out-of-cycle review of
South Africa's compliance with the program's eligibility criteria. I
remain concerned with the state of IPR protections in South Africa
after their release of a Draft Intellectual Property Policy that
includes a proposal for the inappropriate use of compulsory licensing.
While all the eligibility criteria are important, can you assure me
that, if you are confirmed, intellectual property protections will be
closely examined in this out-of-cycle review and in subsequent annual
reviews?
Answer. The Administration has consistently made clear to South
Africa that its continuing participation in AGOA depends on its ability
to eliminate barriers to U.S. trade and investment, including by the
protection of intellectual property, which ultimately will play a
central role in South Africa's ability to attract investment and allow
innovation to thrive. South Africa recently retracted its Draft
Intellectual Property Policy due to stakeholder concerns and has not
yet released a revised draft policy for public comment. However, we are
continuing to closely monitor intellectual property protections in
South Africa and, if confirmed, I will work to ensure that South Africa
complies with AGOA eligibility criteria, both within the context of the
out-of-cycle review and in subsequent reviews.
Question. Congress let the Andean Trade Preferences Program (ATPA)
expire in July 2013. At that time, Ecuador was the only remaining ATPA
beneficiary. Many in Congress felt then that Ecuador no longer deserved
special trade preferences given its very poor record in honoring its
international obligations, including the U.S.-Ecuador Bilateral
Investment Treaty; its crackdown on the independent press; and its lack
of cooperation with the United States in fighting narcotics, among
other reasons. Ecuador's record in these areas is worse today than it
was 2 years ago. And yet Ecuador is back before USTR seeking to expand
its GSP benefits to make up some of the trade preferences it lost when
ATPA expired. In my view, this would be trying to do an end run around
Congress.
Will you ensure that USTR rejects any attempt by Ecuador to expand
its GSP benefits to ensure that this end run does not succeed?
Answer. I understand that there are two GSP actions pending with
respect to Ecuador. First, the government of Ecuador submitted
petitions in 2012 to add 10 additional products to the GSP program for
all GSP beneficiary countries. These 10 products had previously entered
the United States duty-free under ATPA. The GSP subcommittee accepted
three of these product petitions for review: those covering fresh cut
roses, frozen broccoli, and preserved artichokes. Other interested
parties, including representatives of more than 20 U.S. companies and
organizations, also submitted comments in favor of adding these three
products to the GSP program.
With respect to the second GSP action, USTR accepted for review a
country practice petition to remove Ecuador from the GSP program due to
issues related to recognition and enforcement of arbitral awards. The
GSP Subcommittee's review of both petitions was halted when the GSP
program lapsed. However, with the recent reauthorization of the GSP
program, I understand that the GSP Subcommittee has resumed its review
of both petitions.
If confirmed, I will ensure that, before any recommendation is made
to the President on either issue involving Ecuador, USTR fully
considers the matter, including all comments received, to ensure that
the statutory criteria set by Congress for such reviews are followed.
Question. I requested a letter describing your portfolio if you are
confirmed by the Senate. From the very brief response I received, I
understand that you will be covering labor, environment, textiles,
small business, market access, and industrial competitiveness. I also
understand you will not be taking the role of lead negotiator in any of
the United States' ongoing negotiations.
Please explain what you anticipate your duties will be in each of
these areas.
Answer. In addition to the issues that you listed, if confirmed, I
expect to be responsible for trade and investment issues related to the
Western Hemisphere and Africa. With respect to all of the issues--
geographic and functional--within my portfolio, I will prioritize
effective implementation and enforcement of our existing agreements as
well as any new agreement approved by Congress. Having worked at the
Securities and Exchange Commission, I value effective enforcement and
fully understand the importance of ensuring that our trading partners
live up to the commitments that they have made in our trade agreements.
If confirmed, I will work closely with other U.S. agencies to take
a whole of government approach to monitoring our partners' compliance
with these commitments. I will also work closely with you and other
Members as we carry out this critical function, and will ensure that we
are coordinated with key stakeholders by seeking their input on an
ongoing basis.
Question. I am very pleased that the Congress has, at last,
reauthorized the Generalized System of Preferences (GSP) program. As
you know, this program provides tariff reductions for developing
countries and supports manufacturing in the United States.
The program is vital for the economies of many countries in the
Western Hemisphere that do not have trade agreements with the United
States. However, not all of the countries benefiting from the program
are living up to the standards in the program. For example, Argentina
has failed to live up to international arbitral awards regarding
defaulted debts.
How will you address issues in implementing the GSP program such as
this? Do you think it's appropriate for countries which are not living
up to the requirements of the GSP program to receive benefits?
Answer. All GSP beneficiary countries must live up to the statutory
country eligibility criteria, including the recognition and enforcement
of arbitral awards. If confirmed, I will continue to ensure that GSP
beneficiary countries adhere to the eligibility criteria. Where a
beneficiary country fails to meet them, the U.S. Trade Representative
would recommend that the President remove that country from the GSP
program, as was done with Argentina in 2012 and Bangladesh in 2013.
Regarding Argentina, in March 2012 President Obama suspended
Argentina's eligibility for trade benefits under the GSP program
because Argentina failed to enforce arbitral awards with respect to two
U.S. companies. Although the government of Argentina subsequently
reached a settlement with the two U.S. companies in October 2013, there
is currently no prospect of Argentina being considered for
reinstatement of GSP benefits because the World Bank has classified
Argentina as a ``high-income'' economy. Under the GSP statute,
countries that the World Bank classifies as ``high income'' may not be
considered for eligibility.
______
Questions Submitted by Hon. Ron Wyden
Question. Ms. Lago--you have a portfolio that includes labor and
environmental issues. As you may know, the TPA bill we recently enacted
directs USTR to obtain strong labor and environment rules in trade
agreements. But all things trade related are only as good as their
enforcement.
Please outline how you will ensure that our trading partners live
up to their obligations in these areas, and specifically the role that
you will play in ensuring that our TPP partners are in compliance with
their obligations.
Answer. The Obama Administration places a high priority on the
effective implementation and enforcement of all aspects of our trade
agreements, including those on labor and environment. In the TPP
context, the Administration insisted that labor and environment
obligations be included in the core text of the agreement and be
enforceable by the same procedures as commercial disputes. If
confirmed, I intend to ensure that USTR continues to make enforcement
of labor and environment rules a top priority. Having worked at the
Securities and Exchange Commission, I value effective enforcement and
fully understand the importance of ensuring that our trading partners
live up to the commitments that they have made in our trade agreements.
If confirmed, I will work closely with other U.S. agencies to take a
whole of government approach to monitoring our trading partners'
compliance with their commitments. I will also work closely with you
and other Members as we carry out this critical function, and will
ensure that we are coordinated with key stakeholders by seeking their
input on an ongoing basis.
Question. Ms. Lago--as Deputy USTR you will be in charge of the
Trade Representative's issues surrounding market access. I'm a big
believer in the transformational power of the Internet and think that
we should do everything we can to export our digital goods and
services--and our belief in free expression and the exchange of ideas.
Please discuss your priorities regarding digital goods and services
market access.
Answer. I see trade agreements as a vital means for ensuring that
the Internet and the commercial ecosystem it supports remain open and
can grow and thrive. Any meaningful trade agenda for the United States
must reflect our interests in the digital economy for both goods and
services. That is why USTR seeks to include a range of provisions in
ongoing trade negotiations, including TPP, T-TIP, and TiSA, aimed at
enhancing opportunities for digital trade. Chief among these are:
A ``negative list'' approach to services and investment (all
sectors are covered unless a trading partner negotiates to exclude a
sector or subsector), which is critical to promoting innovative and
fast-changing services such as Internet-based services;
A prohibition on imposing tariffs on content transmitted
electronically;
Non-discriminatory treatment of content distributed
electronically into markets of a trade partner;
An affirmative obligation to permit cross-border data flows; and
A prohibition on requiring the use of local computing facilities
for covered services.
The digital economy is an area of unparalleled strength for the
United States, but its continued growth, and contribution to U.S. jobs
and innovation depend deeply on a liberalized global environment. To
that end, I would note the agreement that USTR reached with more than
50 partners in Geneva earlier this month to eliminate tariffs on more
than 200 technology products. An expanded Information Technology
Agreement (ITA) will be the first major tariff-eliminating deal at the
WTO in 18 years and estimates from industry show that this breakthrough
could support up to 60,000 additional American jobs.
If confirmed, I will work to ensure that we strive to keep the
Internet as open as possible as a platform for commerce and the
exchange of ideas, both through trade initiatives that we pursue and
through vigilant enforcement of existing trade obligations.
Question. U.S. intellectual property law strikes a balance to
promote innovation, preserve free speech and support economic dynamism
on the Internet. As you may know, I have opposed policies that would
ossify the creative economy and censor the Internet. Many of our
foreign trading partners are still developing their legal frameworks
around intellectual property and the Internet. Technology and an open
Internet can be an economic boon, particularly to our developing
country partners in the Americas and Africa.
Will you commit to promoting balanced intellectual property,
including copyright, frameworks abroad that reflect all sides of U.S.
law and to ensuring that the Internet remains an equal opportunity
platform for free speech and economic growth, and how will you further
those goals?
Answer. Consistent with USTR's current engagement on IPR with our
trading partners, I will, if confirmed, promote strong and balanced IPR
protection and enforcement in a manner that reflects U.S. law. The U.S.
copyright system is an engine of free expression and a major building
block in the world economy. It plays a critical role in promoting and
disseminating American works of authorship, and the balance of rights
and exceptions and limitations achieved in U.S. law provides diverse
benefits for large and small businesses, consumers, authors, artists,
and workers in the information, entertainment, and technology sectors.
A robust copyright framework ensures that innovators and creators are
respected and that investments (both intellectual and financial) are
promoted. Such a framework also ensures that limitations and exceptions
provide an appropriate balance, and that enforcement measures are
effective.
______
Questions Submitted by Hon. Rob Portman
Question. As you may know, the Nicaragua Trade Preference Level
(TPL) expired at the end of last year and despite numerous pieces of
trade legislation being signed into law recently, TPL renewal was not
included. The Nicaragua TPL has enabled certain types of garments to be
competitively produced in the CAFTA-DR region. At the same time, the
special provision on woven trousers, which is part of the TPL, promotes
the use of U.S. made fabrics and has led to an increase of those
exports. Cintas, a company based in my home state of Ohio where it
employs nearly 3,500 people, has been an active user of this program
since it was enacted in 2006. The TPL's expiration has significantly
increased the cost of doing business there and has repealed the cost
competitiveness of using U.S. fabrics. Although there has been a short
term increase of exported fabrics, many believe this trend is not
likely to continue in the long term as this garment production will
likely move to Asia. Can you tell me when the U.S. intends to revive
this successful program? If not, can you justify why the U.S. is not
pursuing renewal of the special earned import allowance provision that
has provided vast benefits to U.S. uniform, apparel and fabric
companies and their employees?
Answer. It is my understanding that the Administration has not yet
taken a position on extending the Nicaragua one-for-one program. If
confirmed, I will work closely with you and other Members, as well as
all relevant stakeholders, on this important issue.
Question. As you may know, Congress recently passed Trade Promotion
Authority, which included two principal negotiating objectives calling
for U.S. negotiators to deal with currency manipulation by our
competitors. If confirmed, how will you prioritize dealing with
currency issues, in compliance with these negotiating objectives?
Answer. Addressing persistently undervalued exchange rates has been
a top priority for the Administration. Led by the Treasury Department,
which is responsible for currency issues, the Administration has worked
hard to promote a level global playing field by moving major economies
to market-determined exchange rate systems with transparent and
flexible exchange rates that reflect underlying economic fundamentals.
As you note, the negotiating objectives on currency in the Bipartisan
Congressional Trade Priorities and Accountability Act of 2015 are
designed to promote greater accountability of the currency policies of
our trading partners. With regard to addressing exchange rates in the
context of our trade initiatives, we will continue to engage with
Congress and our domestic stakeholders on how best to achieve our
policy objectives in this area.
______
Questions Submitted by Hon. Robert Menendez
Question. Ms. Lago, several of our current free trade partners in
Central America have raised concerns that if the final TPP includes
concessions requested by Vietnam regarding rules of origin and short
supply lists for textile and apparel, it will result in severe job
losses and potentially gut the textile and apparel industry in the
Western Hemisphere.
What plans, if any, does USTR have to ensure that CAFTA
countries and others in Central America are not negatively affected by
the TPP?
Will you commit to me to work with our trading partners in the
region to ensure that our trade relationships remain robust?
Answer. We have a strong relationship in textile and apparel trade
with the region. Our CAFTA-DR partners enjoy duty-free access to the
U.S. market for textiles and apparel today and provide the same access
to products of the United States. The United States and CAFTA-DR
countries also share a highly integrated textile and apparel supply
chain. This success has increased the competitiveness of the region's
producers. I understand that the United States' TPP textiles proposal
takes into account the importance of regional integration and business
relationships between CAFTA-DR and the United States. USTR has also
taken steps to ensure that our CAFTA-DR partners have the time and
opportunity to position themselves well to compete in the U.S. market,
for example by pursuing long tariff phase outs for our most sensitive
products and a yarn-forward rule of origin. If confirmed, I will work
with our CAFTA-DR partners to maximize use of the CAFTA-DR benefits
that are currently available in the textile and apparel sectors--as
well as other sectors--and to ensure that other factors that can
greatly effect regional competitiveness, such as high transportation
costs and lengthy customs processing times, are given priority
attention.
Question. Ms. Lago, I am extremely concerned with the policy this
administration has taken with the Cuban Government.
What are the administration's plans to expand trade with Cuba?
Is Cuba ready to implement the internationally recognized labor,
environment, and good governance standards necessary to be a
trustworthy trading partner of the United States?
Does Jackson-Vanik apply to Cuba? Does the Administration plan
to notify Congress of an intent to grant a waiver?
Answer. The U.S. trade embargo with Cuba remains in place. Most
transactions between the United States and Cuba continue to be
prohibited. There would be a number of steps necessary for complete
normalization of trade relations with Cuba were a decision be made to
move in this direction. Actions would also need to be taken at a wide
variety of levels: legislation by Congress, executive actions by the
President, and work with international organizations, bilaterally with
Cuba, and multilaterally at the World Trade Organization.
Question. Ms. Lago, as you know, my amendment to prohibit ``fast-
track'' procedures for trade agreements with countries ranked Tier 3 on
the State Department's Trafficking in Persons report was passed by both
houses of Congress and signed by the President last month. Tier 3
countries fail to meet the minimum standards to prosecute perpetrators
of human trafficking and to care for their victims.
Please describe the role of USTR in negotiating human rights
concerns with potential trading partners. For example was a Tier 3
country such as Malaysia chosen for TPP inclusion without direct
consultation with the Office of Trafficking in Persons?
Answer. While the promotion of human rights globally is a priority
for the entire Administration, the State Department is solely
responsible for drafting the annual Trafficking in Persons (TIP) report
and assigning countries to a specific ``tier.'' I understand that USTR
consults closely with the State Department, including the Office of
Trafficking in Persons, on the promotion of efforts to address human
trafficking within trade negotiations. In the Trans-Pacific Partnership
trade agreement, USTR is negotiating strong protections of
international labor rights with the 11 other countries, including
Malaysia. These protections will include specific obligations on forced
labor, and I understand that the Administration is discussing with
Malaysia the specific actions that it will need to take to fulfill
these obligations.
Question. Some people argue that trade and human rights are two
separate issues. Seems to me that trading with certain countries, like
Malaysia, where a significant number of employees in the tradeable
goods sector are in situations of forced labor demonstrates that direct
connection.
In your opinion, should we be granting privileged access to U.S.
markets to countries that consistently fail to protect victims of
modern slavery?
Answer. The United States requires the highest labor standards in
the world in its trade agreements, and once we have negotiated these
agreements, we enforce those rights vigorously. TPP is an opportunity
to set strong labor standards to uphold labor rights, level the playing
field for American workers, and raise conditions and living standards
for workers around the world. The Administration is working closely
with Malaysia and other TPP countries to agree on the specific reforms
that they will need to make in order to gain the benefits of TPP. In
addition to requiring our trading partners to reform their labor laws
and practices to meet these standards, we back up those obligations
with strong enforcement mechanisms in our trade agreements, including
trade sanctions. A key reason that countries are willing to make these
comprehensive and sometimes difficult reforms is precisely because of
the benefits of the trade agreement.
Question. USTR is tasked with negotiating our trade agreements and
if confirmed, you specifically will be working to raise and uphold the
labor standards in those agreements. However, once the deal is
ratified, it seems that USTR fails to follow through with the
implementation. I've heard from outside groups that funding for labor
technical assistance to implement previous trade agreements has
basically dried up.
Why should we expect that the TPP will be any different?
Please provide a current accounting of the labor rights programs
associated with our existing trade agreements: the agreements that
provide for them, the programs we are pursuing under those agreements,
and the level of funding for those programs.
Answer. I strongly agree that ensuring that sufficient technical
assistance is provided to our developing country trade partners is
critical for both the United States and our trade partners to fully
realize the benefits of our trade agreements. On labor issues, this is
particularly true since the labor rights standards in our most recent
trade agreements are the highest in the world and frequently require
our trading partners to undertake significant legal and institutional
reforms. The Administration has provided to our trade partners a wide
range of labor-related technical assistance that is tailored to the
issues the countries face.
These labor-related programs and technical exchanges are supported
by staff and resources primarily from the Department of Labor (DOL),
the Department of State (State), and the United States Agency for
International Development (USAID). While the United States engages our
trade partners on labor issues through a variety of means, currently
for countries with which the United States has a free trade agreement,
these agencies are supporting programs that address: freedom of
association in Bahrain (State), labor rights in Central America
(State), union capacity building in Central America (State), labor
rights in Colombia (DOL, State), child labor in Colombia (DOL), union
capacity building in Colombia (USAID), union capacity building in the
Dominican Republic (State), child labor in El Salvador (DOL), union
capacity building in Guatemala (USAID), factory mediation in Honduras
(State), union capacity building in Honduras (USAID), child labor in
Honduras (DOL), child labor in Jordan (DOL), freedom of association in
Jordan (State), labor standards in factories in Jordan (DOL), union
capacity building in Mexico (USAID), nondiscrimination in Mexico (DOL),
strengthening inspection and mediation in Morocco (DOL), fundamental
labor rights in Morocco (State), child labor in Morocco (DOL), labor
standards in factories in Nicaragua (DOL), freedom of association in
Oman (State), child labor in Panama (DOL), labor inspections in Peru
(DOL), child labor in Peru (DOL), and forced labor in Peru (DOL). If
confirmed, I will work with you to explore whether these programs are
sufficiently funded.
This demonstrates the comprehensive and targeted support that this
Administration continues to provide to our existing trade partners. I
understand that for TPP the Administration similarly expects to provide
support for implementation of the ambitious commitments that countries
are undertaking in order to ensure the obligations of our trade
agreements are met and that worker rights and working conditions
benefit from the reforms that countries are implementing.
Question. U.S. companies and workers lead the world in innovation
across many sectors, whether that's creating state-of-the-art
technologies that provide new platforms by which Americans and citizens
around the world can connect and share information, or benefiting
patients with medicines that improve and save lives. This innovation
environment is able to flourish based on the stability of our
intellectual property laws, which provide the appropriate balance to
encourage investment and research. And globally, the U.S. and other
countries have committed to international standards for patent issuance
so innovators are able to seek patents on their inventions through a
fair and reliable process.
Can you assure me that if confirmed you will continue to work to
encourage innovation and help protect U.S. industry abroad?
Answer. The USTR team is working around the globe to promote strong
and balanced IP protection and enforcement, which provide a critical
incentive for innovation. USTR continues to engage intensively to
advance the interest of U.S. innovators and creators globally and to
encourage enabling environments that include IPR, which is vital for
the development of new IP-intensive goods and services, including
innovative technologies, content, brands and medicines. If confirmed, I
will work to promote transparency, certainty and predictability in the
IP systems of our trading partners, including with respect to patents.
Question. Relying on a discriminatory legal doctrine used nowhere
else in the world, Canadian courts have invalidated patents on 19
innovative medicines for conditions like cancer, diabetes and high
blood pressure. These decisions are inconsistent with Canada's
international obligations and threaten investment in future cures. They
are harming an industry that supports nearly 3.4 million American jobs,
over 70,000 of which are in New Jersey.
If confirmed, what will you do to address and reverse the
serious and growing challenge posed by Canada's ``patent utility
doctrine'' before it does further damage?
Answer. I understand that USTR is engaged with Canada on this
important issues. If confirmed, I will press Canada to address concerns
about the lack of clarity and the impact of the patent utility
decisions of some Canadian courts. I will urge Canada to improve the
situation and clarify these standards for patent applicants and
holders.
______
Question Submitted by Hon. Richard Burr
Question. In 2009, the U.S. and EU reached the U.S./EU WTO
Agreement on Bananas. This Agreement was aimed at eventually ending the
WTO Banana dispute if the EU honored its commitments, including its
commitment in the Agreement not to discriminate against U.S. banana
service suppliers on licensing measures. It is my understanding that
the United States has not settled the Banana case because of a concern
that since 2009, Italy has been levying sizable, discriminatory
assessments against a U.S. banana service supplier for engaging in
licensing arrangements that were permitted and widely used under EU
law, including by EU-owned firms. It is also my understanding that the
European Commission has declined over the past 2 years to clarify its
position on this issue and USTR has consequently been reviewing how
best to ensure EU compliance under the 2009 Agreement. I appreciate
USTR's attention to this matter, which relates directly to the
effective enforcement of trade agreements. I would appreciate knowing
what specific steps, including under the 2009 Agreement, USTR intends
to take in the near term to uphold the Agreement and its numerous
successful WTO rulings in this dispute.
Answer. The United States in 2010 signed a bilateral agreement on
bananas with the EU, which entered into force on January 24, 2013. That
agreement was related to a banana tariff-cutting agreement the EU
concluded at the same time with a number of Latin American banana
exporting countries. Both agreements were designed to bring an end to
the longstanding bananas-related disputes then pending in the WTO. On
November 8, 2012, the EU and Latin American countries announced that
they had settled all bananas-related disputes and claims pending
between them.
I understand that USTR has been in frequent contact over recent
months with the affected supplier concerning the actions taken by
Italian customs authorities and related decisions taken by Italian
courts challenging the supplier's use of certain EU banana import
licenses under pre-2006 EU banana import regulations. I further
understand that the supplier has informed USTR that its use of import
licenses during the period in question was consistent with EU governing
regulations in effect at the time. USTR has been pressing the European
Commission to clarify its position on this matter and will continue to
do so.
______
Questions Submitted by Hon. John Cornyn
Question. Both the Colombia and the Peru trade promotion agreements
contain provisions calling for the negotiation of cumulation provisions
to facilitate regional integration.
What is the status of these discussions?
What steps will you take to ensure that these important
provisions are implemented as soon as possible?
Answer. As you note, there are regional cumulation provisions for
textiles and apparel within the United States--Colombia Trade Promotion
Agreement and the United States--Peru Trade Promotion Agreement. The
agreements provide that the Parties will enter into consultations to
discuss whether products of countries within the region should be
allowed to satisfy the rules of origin requirements of each agreement,
subject to relevant domestic legal requirements.
I understand that USTR has met several times with Peru and Colombia
to discuss the issue, most recently with Colombia on July 27-29, 2015.
USTR has noted that domestic procedures require full consultations with
affected stakeholders, as well as an amendment to each agreement and a
new implementation action by Congress, before cumulation could become
effective. I understand that USTR has also asked for data from Peru and
Colombia on products that would be affected by cumulation in order to
advance the discussions. If confirmed, I will consult closely with the
Governments of Colombia and Peru, domestic stakeholders, and Congress
on this important matter.
Question. This month marks the 10th anniversary of Congressional
approval of the CAFTA-DR.
What is the Administration's assessment of this trade agreement?
Answer. The CAFTA-DR has further integrated the region's already
highly integrated manufacturing and supply-chain network. Designed to
establish the legal and regulatory framework to build long-term growth
and prosperity, the CAFTA-DR has had a positive economic and
development impact on member countries. U.S. exports to Central America
and the Dominican Republic grew more than 84 percent from 2005 to 2014,
reaching $31.1 billion. U.S. imports from CAFTA-DR countries totaled
$28.4 billion in 2014, up 57% from 2005. And the intra-regional trade
among Central American countries and the Dominican Republic increased
by 87 percent between 2005 to U.S. $8.5 billion by 2014.
Foreign Direct Investment increased in all CAFTA-DR countries both
prior to and after the CAFTA-DR entered into force. Reported U.S.
foreign direct investment in CAFTA-DR countries (stock) was $7.4
billion in 2013, an increase of roughly $3.1 billion from the pre-
CAFTA-DR level of $4.3 billion in 2005.
In assessing the economic and commercial impact of the CAFTA-DR,
the importance of ensuring the effective implementation among countries
remains key. The CAFTA-DR provides the tools, framework and strong
incentives for regional economic integration. Ongoing monitoring and
enforcement, as well as technical support, will continue to strengthen
implementation of the CAFTA-DR and further expand the benefits of trade
to the region.
Question. Government officials in Central America have raised
concerns to me over the potential impact of the TPP on CAFTA-DR
countries, especially in the area of textiles and apparel.
What steps has the Administration taken in Central America to
keep this region and industry competitive?
Answer. We have a strong relationship in textile and apparel trade
with the region. Our CAFTA-DR partners enjoy duty-free access to the
U.S. market for textiles and apparel today and provide the same access
to products of the United States. The United States and CAFTA-DR
countries also share a highly integrated textile and apparel supply
chain. This success has increased the competitiveness of the region's
producers. I understand that the United States' TPP textiles proposal
takes into account the importance of regional integration and business
relationships between CAFTA-DR and the United States. USTR has also
taken steps to ensure that our CAFTA-DR partners have the time and
opportunity to position themselves well to compete in the U.S. market,
for example by pursuing long tariff phase outs for our most sensitive
products and a yarn-forward rule of origin. If confirmed, I will work
with our CAFTA-DR partners to maximize use of the CAFTA-DR benefits
that are currently available in the textile and apparel sectors--as
well as other sectors--and to ensure that other factors that can
greatly effect regional competitiveness, such as high transportation
costs and lengthy customs processing times, are given priority
attention.
Question. Given the 10-year extension of AGOA, and the continued
focus on TPP and TTIP, it is important that we don't forget our
neighbors in Central and South America, and our other non-TPP FTA
partners in the hemisphere. In Texas, we see the significant commercial
benefits of expanding trade with our neighbors--and our businesses
large and small benefit from expanded trade across the border and
throughout Central and South America.
What would you do as Deputy USTR to help ensure that textile and
apparel trade between the U.S. and our allies in the Western Hemisphere
remains strong and fosters new growth for U.S. exports?
Will you commit to work with me and this Committee to develop a
trade strategy for our region that will build off our current FTAs and
complement the efforts on TPP and TTIP?
Answer. Our non-TPP FTA partners in the Western Hemisphere--
Colombia, Costa Rica, the Dominican Republic, El Salvador, Honduras,
Guatemala, Nicaragua and Panama--all enjoy duty-free access to the U.S.
market for textiles and apparel today and provide the same access to
products of the United States. Textile and apparel products are a
significant part of our trade with these countries, and this success
has created supply chains that increase the competitiveness of the
region globally. If confirmed, I will work with our partners in the
region to maximize use of this preferential access and to ensure that
other factors that can greatly effect regional competitiveness, such as
high transportation costs and lengthy customs processing times, are
given priority attention.
If confirmed, I will work with you and others Members to deepen our
trade engagement in the Western Hemisphere. With five of the 12 TPP
countries located in the Western Hemisphere, I expect that the TPP,
once concluded and implemented, will set a new standard for trade
agreements in this hemisphere and beyond.
______
Prepared Statement of W. Thomas Reeder, Nominated to be Director,
Pension Benefit Guaranty Corporation
Mr. Chairman, Ranking Member Wyden, Members of the Committee, thank
you for the opportunity to discuss my nomination today.
The Pension Benefit Guaranty Corporation (PBGC) continues to endure
challenging times. Its fiscal year 2014 deficit increased to $62
billion, up from $36 billion the year before. While the single-employer
program has improved significantly, the multi-employer program's
deterioration has been driven by the declining financial position of a
few very large multi-employer plans.
Congress responded to the crisis in the multi-employer program with
the enactment of the Kline-Miller Multi-employer Pension Reform Act of
2014. That Act included several tools to extend the solvency of the
multi-employer program. PBGC and Treasury and Labor Departments have
already provided much of the administrative framework and guidance to
make that law work as intended. If confirmed, one of my highest
priorities will be to work closely with Treasury and the IRS, the
Department of Labor, and all stakeholders to ensure that new statute is
administered fairly. However, the Kline-Miller legislation has only
provided a year or two of time. Much more has to be done to prevent
insolvency of the multi-employer program within the coming 10 years and
the sooner the action is taken, the less disruptive it will be.
Of course the issues at PBGC are much more than the deficit of the
multi-
employer system. The agency is administering single-employer plans and
providing assistance to insolvent multi-employer plans that
collectively cover nearly 1.5 million Americans, two thirds of whom are
already receiving retirement benefits. Payouts to retirees under these
plans amounted to $5.6 billion in fiscal year 2014. And PBGC manages
investments of over $80 billion. If confirmed, I will work hard to
ensure that the agency continues to focus on its strategic goals of
preserving plans and protecting pensioners, paying timely and accurate
benefits, and maintaining high standards of stewardship and
accountability.
I am honored to be nominated for this position and am eager to take
on the challenge. have devoted most of my professional career toward
helping employers establish and maintain retirement plans for their
employees and helping individuals achieve retirement security. And I
believe my rich background of experiences has well prepared me for this
role. The PBGC's main purpose is to provide a safety net to continue
benefits for pension plan participants when companies can no longer
afford the program and to help plan sponsors keep their plans ongoing.
I was an attorney in private practice in the retirement arena for a
dozen years before entering public service. As such, I advised clients
on creating and operating pension plans. I gained an appreciation for
the fact that most employers want to help their employees prepare for
retirement. But this view is often offset, particularly with small
employers, by the uncertainty of funding a traditional defined benefit
pension plan and the perceived regulatory burden of starting and
maintaining a plan. I also gained first-hand knowledge of working with
government regulatory agencies in the pension area and an appreciation
for the talent and dedication of the staffs of each of the agencies.
Since my years in private practice, I played an active role in the
development and administration of retirement policy at the Department
of the Treasury. As a member of the Senior Executive Service there, I
gained a reputation for working cooperatively with all the stakeholders
in the employee benefits arena, including employers, employee groups,
other agencies, and Congress. I was at Treasury under three Presidents
and have found that retirement security is a high priority shared by
leaders in both political parties. I directed Treasury's successful
administration of several pension reform statutes, including the
Pension Protection Act of 2006 and the Worker, Retiree, and Employer
Recovery Act of 2008.
Following my experience at the Treasury Department, I was a senior
staffer in this Committee. I continued to work hard to bring people
together to face difficult issues head-on and find consensus solutions
to complex problems--solutions that respect all the stakeholders.
Having worked for the Finance Committee, I know the importance of
working with Congress. I look forward to working closely with you. I
want to hear your ideas and be responsive to your concerns about the
agency.
If confirmed to lead the PBGC, I would work with stakeholders and
staff to develop a workable consensus with respect to the agency's
policies and programs. Retirement security is essential. Defined
benefit plans are a better way to achieve it than defined contribution
plans and must be preserved. We need to find creative ways to involve
more employees and employers in retirement savings, but, at a minimum,
we must devote ourselves to protecting the promise that has already
been made to employees for lifetime income from their employers'
pension plans.
In preparing for this confirmation process, I have learned even
more about the talent and professionalism of the staff at the PBGC and
their dedication to their responsibility of protecting the pensions of
more than 40 million people. I believe I have the right experience and
capability to lead that agency toward even greater success in achieving
its mission.
If confirmed, I would be honored to join the professionals at PBGC
in working towards the goal of retirement security, and I look forward
to working with Congress and everyone who shares that goal.
Thank you for the opportunity to appear before you today. I look
forward to hearing your views and answering your questions.
______
SENATE FINANCE COMMITTEE
STATEMENT OF INFORMATION REQUESTED
OF NOMINEE
A. BIOGRAPHICAL INFORMATION
1. Name (include any former names used): William Thomas Reeder, Jr.
2. Position to which nominated: Director, Pension Benefit Guaranty
Corporation
3. Date of nomination: May 21, 2015
4. Address (list current residence, office, and mailing addresses):
5. Date and place of birth: October 27, 1950, El Paso, Texas
6. Marital status (include maiden name of wife or husband's name):
7. Names and ages of children:
8. Education (list secondary and higher education institutions, dates
attended, degree received, and date degree granted):
Mt. Vernon High School, Alexandria, VA (1968)
College of Liberal Arts, University of Texas at Austin (BA, 1972)
College of Education, University of Texas at Austin (BSEd, 1974)
Graduate School of Business, University of Texas at Austin (MBA,
1982)
School of Law, University of Texas at Austin (JD, 1987)
9. Employment record (list all jobs held since college, including the
title or description of job, name of employer, location of work, and
dates of employment):
Tax Examiner, Internal Revenue Service, Austin, TX (1973-1974)
High School Teacher, Crockett High School, Austin, TX (1974-1976,
1978-1984)
Volunteer, United States Peace Corps, Togo, West Africa (1976-
1978)
Honors Program Clerk, U.S. Department of Justice Tax Division,
Washington, DC, 1986
Associate, Akin, Gump, Strauss, Hauer and Feld, Washington, DC
(1987-1991)
Associate, Of Counsel, Partner, Paul, Hastings, Janofsky and
Walker, Washington, DC (1991-2000)
Attorney Advisor, Associate Benefits Tax Counsel, Deputy Benefits
Tax Counsel, and Benefits Tax Counsel, U.S. Department of the Treasury,
Washington, DC (2000-2009)
Senior Benefits Counsel, Senate Finance Committee, Washington, DC
(2009-2013)
Health Care Counsel, Internal Revenue Service, Washington, DC
(2013-Present)
10. Government experience (list any advisory, consultative, honorary,
or other part-time service or positions with Federal, State, or local
governments, other than those listed above):
None.
11. Business relationships (list all positions held as an officer,
director, trustee, partner, proprietor, agent, representative, or
consultant of any corporation, company, firm, partnership, other
business enterprise, or educational or other institution):
President, Tom and Ruth Fenzi Reeder Foundation, Alexandria, VA
(2001-Present)
12. Memberships (list all memberships and offices held in
professional, fraternal, scholarly, civic, business, charitable, and
other organizations):
------------------------------------------------------------------------
------------------------------------------------------------------------
Member, American Bar Association 1987-Present
------------------------------------------------------------------------
Member, DC Bar Association 1988-Present
------------------------------------------------------------------------
Member, State Bar of Texas 1987-Present (inactive status since
approx. 1990)
------------------------------------------------------------------------
Member, Hyde Park Neighborhood 1978-1987
Association
------------------------------------------------------------------------
Member, Friends of Togo 1987-Present
------------------------------------------------------------------------
Member, John Marshall Law School 2007-2011
LLM Program Advisory Board
------------------------------------------------------------------------
Member, DC Randonneurs 2005-Present
------------------------------------------------------------------------
Member, Randonneurs USA 2003-Present
------------------------------------------------------------------------
Member, Austin Cycling Association 1978-1987
------------------------------------------------------------------------
Member, League of American 1978-Present
Bicyclists (1979-1984: Texas State
Legislative Representative
(unpaid))
------------------------------------------------------------------------
13. Political affiliations and activities:
a. List all public offices for which you have been a candidate.
None.
b. List all memberships and offices held in and services
rendered to all political parties or election committees during the
last 10 years.
None.
c. Itemize all political contributions to any individual,
campaign organization, political party, political action committee, or
similar entity of $50 or more for the past 10 years.
Obama 2012 Presidential Campaign, $500
John Tester 2012 Senate Campaign, $500
Andrew Person Montana Delegate Campaign, $100
14. Honors and Awards (list all scholarships, fellowships, honorary
degrees, honorary society memberships, military medals, and any other
special recognitions for outstanding service or achievement):
Teacher of the Year, Crockett High School, 1983/84
Sord Scholar, University of Texas School of Business, 1980
(Academic Excellence)
Fellow, American College of Employee Benefits Counsel, 2008
Secretary's Honor Award, Department of the Treasury, 2005
Ken Gideon Award, Internal Revenue Service, 2007, 2008
15. Published writings (list the titles, publishers, and dates of all
books, articles, reports, or other published materials you have
written):
------------------------------------------------------------------------
------------------------------------------------------------------------
The Nondiscrimination Society for Hum. Winter 1992
Rules for Employee Resource Mgmt. Legal
Health and Welfare PReport
Plans: The Ghost of
Section 89?
------------------------------------------------------------------------
``Benefit Plans and BNA 1998
EEO,'' Chapter 8 of the
Equal Employment Law
Treatise Update
------------------------------------------------------------------------
Recent Developments in Journal of Pension Plans 1991
Plan Participant Loan and Compliance
Programs
------------------------------------------------------------------------
16. Speeches (list all formal speeches you have delivered during the
past 5 years which are on topics relevant to the position for which you
have been nominated):
I have made more than a dozen speeches in the past 5 years on
current topics in Employee Benefits at bar and other trade
associations. None of them were formal, and I do not have the text of
any of them.
17. Qualifications (state what, in your opinion, qualifies you to
serve in the position to which you have been nominated):
I believe my academic, legal, government, and legislative
experience described above, along with my professional reputation in
and out of government, qualify me well to lead the PBGC.
B. FUTURE EMPLOYMENT RELATIONSHIPS
1. Will you sever all connections with your present employers,
business firms, associations, or organizations if you are confirmed by
the Senate? If not, provide details.
Yes, except that I plan to continue work in funding and
administering our small charitable family foundation, in accordance
with the terms of the ethics agreement that I have entered into with
the Agency's Ethics Official and that has been provided to this
Committee.
2. Do you have any plans, commitments, or agreements to pursue
outside employment, with or without compensation, during your service
with the government? If so, provide details.
No.
3. Has any person or entity made a commitment or agreement to employ
your services in any capacity after you leave government service? If
so, provide details.
No.
4. If you are confirmed by the Senate, do you expect to serve out
your full term or until the next Presidential election, whichever is
applicable? If not, explain.
Yes.
C. POTENTIAL CONFLICTS OF INTEREST
1. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated.
I have consulted with the Agency's Ethics Officials to identify
potential conflicts of interest. Any potential conflicts of interest
will be resolved in accordance with the terms of the ethics agreement
that I have entered into with the Agency's Ethics Official and that has
been provided to this Committee. I am not aware of any potential
conflicts of interest.
2. Describe any business relationship, dealing or financial
transaction which you have had during the last 10 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated.
I am not aware of any such potential conflicts of interest.
3. Describe any activity during the past 10 years in which you have
engaged for the purpose of directly or indirectly influencing the
passage, defeat, or modification of any legislation or affecting the
administration and execution of law or public policy. Activities
performed as an employee of the Federal government need not be listed.
None.
4. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items. (Provide the Committee with two copies of any trust or other
agreements.)
Any potential conflicts of interest will be resolved in
accordance with the terms of the ethics agreement that I have entered
into with the Department's Designated Agency Ethics Official and that
has been provided to this Committee.
5. Two copies of written opinions should be provided directly to the
Committee by the designated agency ethics officer of the agency to
which you have been nominated and by the Office of Government Ethics
concerning potential conflicts of interest or any legal impediments to
your serving in this position.
To be provided.
6. The following information is to be provided only by nominees to
the positions of United States Trade Representative and Deputy United
States Trade Representative:
Have you ever represented, advised, or otherwise aided a foreign
government or a foreign political organization with respect to any
international trade matter? If so, provide the name of the foreign
entity, a description of the work performed (including any work you
supervised), the time frame of the work (e.g., March to December 1995),
and the number of hours spent on the representation.
D. LEGAL AND OTHER MATTERS
1. Have you ever been the subject of a complaint or been investigated
, disciplined, or otherwise cited for a breach of ethics for
unprofessional conduct before any court, administrative agency,
professional association, disciplinary committee, or other professional
group? If so, provide details.
No.
2. Have you ever been investigated, arrested, charged, or held by any
Federal, State, or other law enforcement authority for a violation of
any Federal, State, county or municipal law, regulation, or ordinance,
other than a minor traffic offense? If so, provide details.
No.
3. Have you ever been involved as a party in interest in any
administrative agency proceeding or civil litigation? If so, provide
details.
No.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? If so, provide details.
No.
5. Please advise the Committee of any additional information,
favorable or unfavorable, which you feel should be considered in
connection with your nomination.
None.
E. TESTIFYING BEFORE CONGRESS
1. If you are confirmed by the Senate, are you willing to appear and
testify before any duly constituted committee of the Congress on such
occasions as you may be reasonably requested to do so?
Yes.
2. If you are confirmed by the Senate, are you willing to provide
such information as is requested by such committees?
Yes.
______
Questions Submitted for the Record to W. Thomas Reeder, Jr.
Questions Submitted by Hon. Orrin G. Hatch
Question. Mr. Reeder, one of the most difficult tasks at the PBGC
is calculating the correct pension amount for retirees, and calculating
the correct amount of the plan liabilities overall, for plans that are
taken over by the PBGC from companies that go bankrupt. In addition,
the plan documents are complicated and the rules that govern PBGC
pension calculations are extraordinarily complex. We have heard over
the years from some airline pilots who worked for airlines that went
bankrupt about a pension calculation issue. It seems that pilots at the
time were required by federal aviation law to retire at age 60, but the
PBGC may have been required by pension law to treat their retirement
age as 65. Working together these two rules seem to have resulted in a
dramatic reduction in the amount of the pension calculation for the
pilots affected. As Director, if confirmed, you will of course have to
follow the law as written. But are willing to look at this situation
once you arrive at the PBGC and see if, by chance, anything in the law
might have been overlooked by the PBGC in the calculation of these
pilot pensions?
Answer. I am not fully aware of the details of this issue. My
understanding is that the authority to create new classes of guaranteed
benefits is linked to another provision of ERISA that requires
enactment of an additional, separate premium to fund them. As you know,
Congress sets premium rates by law and has not enacted a separate,
additional premium for this purpose. If confirmed, I will be happy to
analyze the details of this more carefully.
Question. Unlike the single-employer pension program, where the
PBGC takes over a plans assets and liabilities and actually administers
the plan of a bankrupt employer, in the multi-employer program the PBGC
essentially loans money to the insolvent multi-employer plan, and the
plan continues to administer the benefits. We have been told that in
the entire history of the PBGC, only one loan has ever been repaid. If
confirmed as Director, and in light of the serious problems presented
to the PBGC by multi-employer plans, would you be willing to consider
and perhaps propose to Congress alternative ways for the PBGC to
address insolvent multi-
employer plans?
Answer. I look forward to working with you and your staff,
Congress, and our Board to carefully consider alternatives.
______
Questions Submitted by Hon. Rob Portman
Question. My constituents in Ohio who have seen their pension plans
taken over by the PBGC report to me that they have a difficult time
getting accurate answers to questions about their pensions. If you are
confirmed will you commit to correcting this situation, improving the
training and accuracy of source materials used by those who represent
the PBGC to the public?
Answer. I strongly believe in the importance of providing high
quality service to the participants in the plans that have terminated
and have been transferred to PBGC. Timely, accurate administration of
benefits is at the core of PBGC's mission. If I am confirmed, I commit
to making sure that we have a motivated, high performing benefits
administration and payment organization that meets the needs of the
participants it serves.
Question. I have heard from many of my constituents regarding
lengthy delays by PBGC in order to calculate the final benefit
determinations for plan participants. I joined several colleagues from
Ohio in writing the Acting Director to request the status of final
benefit determinations for the Delphi Salaried Retirees. Previous
information provided by the PBGC indicated that there was a 2 year
delay in beginning the efforts to make a final benefit determination,
which was followed by an outside contractor working for 2 years before
being replaced by a new contractor. In the eyes of Ohioans waiting for
the resolution of this issue, this demonstrated a lack of urgency and a
lack of effort being made for participants in the plans that have been
trusteed by the PBGC. If you are confirmed, will you commit to making
PBGC more efficient as well as more transparent and responsive to
pension plan participants? How can we expedite the time it takes to
complete final benefit determinations, given that 6 years seem
unacceptably long for struggling families trying to make ends meet?
Answer. If confirmed I will do everything in my power to ensure
that PBGC will start sending final benefit determination letters to
Delphi Salaried plan participants in October of this year, as promised.
I understand that PBGC is on track to do so. As I stated above, if
confirmed, I am committed to making sure that we have a motivated, high
performing benefits administration and payment organization. I look
forward to working with the PBGC staff, the Board, and Congress in
finding ways to expedite the process of issuing final benefit
determination letters and maintaining high standards of quality.
Question. One of the most important goals of the PBGC, if not the
most important, should be accountability to the hundreds of thousands
of retirees in PBGC-trusteed plans. However, I am concerned that, in
the case of the Delphi Salaried Retirees Plan, which was terminated by
the PBGC more than 6 years ago, more than 20,000 participants and
retirees are still waiting for basic information regarding their Plan's
assets and liabilities. If you are confirmed, will you commit to
providing more transparency for retirees? Would you commit to providing
preliminary determinations of assets and liabilities, and actuarial
assumptions used to determine the need to terminate the plan, and then
follow up with final calculations and methodologies used to arrive at
them?
Answer. I agree that high quality service to participants and
accountability are at the core of PBGC's mission. As I noted above, if
confirmed, I will do everything in my power to ensure that PBGC will
start sending final benefit determination letters to the Delphi
Salaried plan participants in October of this year, as promised. I am
aware that PBGC has provided monthly updates to Delphi Salaried plan
participants on the status of actions needed to issue benefit
determinations. I look forward to working with you and other
stakeholders to explore other ways to improve transparency and enhance
the service PBGC provides to its customers.
______
Prepared Statement of Hon. Ron Wyden,
a U.S. Senator From Oregon
Today the Finance Committee has before it two nominees for vital
positions in the federal government: Marisa Lago, nominated to be a
Deputy United States Trade Representative at USTR, and Tom Reeder,
nominated to be the Director of the Pension Benefit Guaranty
Corporation.
As Deputy USTR, Ms. Lago will be responsible for a number of
critical trade issues, including improving labor conditions and
environmental protections maintained by our trading partners, improving
market access for American goods and services, and implementing the
recently-passed African Growth and Opportunity Act.
USTR needs a full leadership team now more than ever to take on the
range of trade priorities before it. As Ambassador Froman heads to Maui
next week in an effort to conclude the Trans Pacific Partnership, he
will need to deliver on the priorities of Members here at home.
For my part, that means ensuring that the TPP agreement contains
21st-century provisions to promote the digital economy, provides
ambitious market opening for Made in America products, including dairy,
and contains strong, enforceable rules on labor and the environment.
Ms. Lago will play a key role ensuring each of these priorities is
realized.
Ms. Lago currently serves as Assistant Secretary at the Treasury
Department, where she works to improve global market access for
American goods and services. Prior to joining Treasury, she held a
number of positions promoting economic development in state and local
governments and in the private sector. She also served as the head of
the Office of International Development at the SEC.
Also with us today is Tom Reeder, an alumnus of the Finance
Committee well-known and admired by Committee members and staff across
the board. Tom served as Senior Benefits Counsel on the Committee for
nearly 4 years, and his depth of knowledge and passion for pension and
employee benefits were invaluable to us all. He currently serves as
Health Care Counsel at the IRS, and before joining the Finance
Committee, Mr. Reeder served at the Treasury Department in numerous
capacities. The PBGC needs strong leadership to tackle a number of
difficult challenges, and I am confident Mr. Reeder is the right person
for the job.
It is my hope that Mr. Reeder will be confirmed quickly so he can
take the reins of the agency at a critical moment. The PBGC insures the
pension benefits of America's workers, and, at a time when the agency
is under financial stress, employers are trending away from defined
benefit pension plans, and the nation's savings rate remains low, Mr.
Reeder's policy acumen, integrity, and leadership will be needed.
I also want to take the time to express my deep concern with
several changes to the rules that govern multi-employer pensions that
were included in last year's omnibus package. The changes, which were
negotiated behind closed doors in the House of Representatives, rolled
back a major tenet of our pension laws by allowing multi-employer plans
to cut earned and vested pension benefits. This change could impact
millions of workers around the country. I plan to work with Mr. Reeder
to ensure that participants and retirees' rights are safeguarded.
Thank you both for joining us this morning, I look forward to
hearing from each of you.
[all]