[Congressional Record Volume 140, Number 79 (Tuesday, June 21, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: June 21, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                 THE GROWING TRADE AND BUDGET DEFICITS

  The SPEAKER pro tempore (Mr. Klein). Under a previous order of the 
House, the gentleman from Ohio [Mr. Brown] is recognized for 5 minutes.
  Mr. BROWN of Ohio. Mr. Speaker, the Commerce Department released 
monthly trade figures today. More bad news. In fact, a double dose of 
bad news. Exports are down, American goods sold abroad have gone down. 
Imports have gone up. America's trade imbalance with foreign countries 
is spiraling out of control. The trade deficit for April according to 
the Commerce Department is $8.4 billion. The April trade deficit means 
the loss of some 160,000 jobs. We are losing good-paying jobs in 
northeast Ohio, we are losing good-paying jobs throughout the United 
States. A $100 billion annual trade deficit means the loss of some 2 
million jobs.
  Mr. Speaker, $60 billion of that trade deficit has been with Japan, 
$25 billion of that trade deficit has been with China; 85 percent of 
our trade deficit are with those two countries in the Far East. For 
every $1 billion in trade deficit, some 19,000 American jobs are lost.
  Mr. Speaker, those are generally good-paying jobs. They are jobs in 
manufacturing where people make $10 and $12 and $15 an hour. They 
typically are not service jobs, they are typically production jobs, 
some of the best jobs that mean middle-class incomes and middle-class 
lifestyles and college degrees and purchases of homes for America's 
families.
  We are also seeing a continued decline in the trade surplus with 
Mexico. During the debate on the North American Free-Trade Agreement, 
proponents of NAFTA, proponents of that trade agreement with Mexico and 
Canada would brag that Mexico's trade surplus of some $6 billion and $7 
billion 2 and 3 years ago would grow and that that surplus we had with 
Mexico where we were selling more to Mexico than we were buying from 
Mexico would continue to grow and create American jobs.
  Mr. Speaker, in fact what has happened is the exact opposite. Where 
last month, actually in April, the trade surplus with Mexico shrunk to 
only $7 million and is moving in the wrong direction, so that there is 
a good chance we will, in fact, have a trade deficit with Mexico 
similar, maybe not to the same degree but similar to the trade deficits 
we have with China and Japan.
  Mr. Speaker, what does all that mean to the American family? American 
families are realizing the potential threat posed by budget deficits 
and trade deficits. But when we have that double threat of trade 
deficits and budget deficits, America's families are faced with higher 
interest rates for the purchase of homes, are faced with the continued 
pressure on the dollar, and in ultimately rising unemployment. In the 
end we risk losing the economic recovery that the administration has 
fought for and that many of us in Congress have fought for.
  The budget deficit, we have been generally successful, we are moving 
in the right direction. The budget deficit has come down, we have 
aggressively cut spending. We have ended programs. We have done a lot 
of the right things. Perhaps not quite far enough, but we have done a 
lot of positive things with the budget deficit. Unfortunately with the 
trade deficit we must do much, much more.
  We need jobs in Lorain, OH; in Newton Falls, OH; in Brunswick, OH; in 
Elyria, OH, in areas all over this country. We need an aggressive trade 
policy. It means standing up to the Japanese when they violate trade 
laws. It means standing up to the Chinese when they engaged in illegal 
dumping. It means standing up to those countries when they are not 
playing fair, when the playing field is not level.
  Mr. Speaker, we need fair trade, not free trade.

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