[Congressional Record Volume 141, Number 110 (Monday, July 10, 1995)]
[House]
[Pages H6706-H6708]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         EXTENDING MOST-FAVORED-NA- TION TREATMENT TO BULGARIA

  Mr. CRANE. Mr. Speaker, I move to suspend the rules and pass the 
bill--H.R. 1643--to authorize the extension of nondiscriminatory 
treatment--most-favored-nation treatment--to the products of Bulgaria.
  The Clerk read as follows:

                               H.R. 1643

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. CONGRESSIONAL FINDINGS AND SUPPLEMENTAL ACTION.

       (a) Congressional Findings.--The Congress finds that 
     Bulgaria--
       (1) has received most-favored-nation treatment since 1991 
     and has been found to be in full compliance with the freedom 
     of emigration requirements under title IV of the Trade Act of 
     1974 since 1993;
       (2) has reversed many years of Communist dictatorship and 
     instituted a constitutional republic ruled by a 
     democratically elected government as well as basic market-
     oriented reforms, including privatization;
       (3) is in the process of acceding to the General Agreement 
     on Tariffs and Trade (GATT) and the World Trade Organization 
     (WTO), and extension of unconditional most-favored-nation 
     treatment would enable the United States to avail itself of 
     all rights under the GATT and the WTO with respect to 
     Bulgaria; and
       (4) has demonstrated a strong desire to build friendly 
     relationships and to cooperate fully with the United States 
     on trade matters.
       (b) Supplemental Action.--The Congress notes that the 
     United States Trade Representative intends to negotiate with 
     Bulgaria in order to preserve the commitments of that country 
     under the bilateral commercial agreement in effect between 
     that country and the United States that are consistent with 
     the GATT and the WTO.

     SEC. 2. TERMINATION OF APPLICATION OF TITLE IV OF THE TRADE 
                   ACT OF 1974 TO BULGARIA.

       (a) Presidential Determinations and Extension of 
     Nondiscriminatory Treatment.--Notwithstanding any provision 
     of title IV of the Trade Act of 1974 (19 U.S.C. 2431 et 
     seq.), the President may--
       (1) determine that such title should no longer apply to 
     Bulgaria; and
       (2) after making a determination under paragraph (1) with 
     respect to Bulgaria, proclaim the extension of 
     nondiscriminatory treatment (most-favored-nation treatment) 
     to the products of that country.
       (b) Termination of Application of Title IV.--On and after 
     the effective date of the extension under subsection (a)(2) 
     of non discriminatory treatment to the products of Bulgaria, 
     title IV of the Trade Act of 1974 shall cease to apply to 
     that country.


[[Page H 6707]]

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Illinois [Mr. Crane] will be recognized for 20 minutes, and the 
gentleman from Florida [Mr. Gibbons] will be recognized for 20 minutes.
  The Chair recognizes the gentleman from Illinois [Mr. Crane].
  Mr. CRANE. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in strong support of H.R. 1643, which would 
extend permanent most-favored-nation [MFN] tariff treatment to the 
products of Bulgaria. This legislation, which was introduced by myself 
and the ranking member of the Ways and Means Subcommittee on Trade, Mr. 
Rangel, is noncontroversial and was reported out of the Ways and Means 
Committee by a voice vote on June 20.
  At present, Bulgaria's MFN status is regulated by title IV of the 
Trade Act of 1974, the provision of U.S. law which governs the 
extension of MFN tariff treatment to nonmarket economies. Bulgaria was 
first granted MFN treatment by the United States in 1991 under a 
Presidential waiver from the freedom of emigration requirements 
contained in the Trade Act of 1974. Since 1993, Bulgaria's MFN status 
has been renewed after the President has found the country to be in 
full compliance with the requirements stipulated in U.S. law.
  The political and economic circumstances in Bulgaria have changed 
considerably since the enactment of the Trade Act of 1974. The 
Communist dictatorship in Bulgaria has collapsed and a democratically 
elected government has taken office which has instituted basic market-
oriented principles, including privatization, in the Bulgarian economy.
  Normalizing United States trade relations with Bulgaria, as has been 
done of other Eastern European countries, by authorizing the removal of 
the application of title IV of the Trade Act of 1974, from Bulgaria 
will enhance our bilateral relations with that country and foster the 
economic development of the region by providing the business community 
with greater certainty with respect to Bulgaria's status under United 
States law.
  At the present time, Bulgaria is in the process of acceding to the 
World Trade Organization [WTO]. For this reason, the extension of 
permanent MFN tariff treatment to Bulgaria is also necessary in order 
for the United States to avail itself of all WTO rights vis-a-vis 
Bulgaria at the time of the country's accession to the agreement.
  The Congressional Budget Office has indicated that its baseline 
revenue projections assume that Bulgaria's MFN status will be renewed 
annually by the President. Therefore, enactment of H.R. 1643 will not 
affect projected Federal Government receipts.
  I urge my colleagues to support the passage of this legislation.
  Mr. Speaker, I reserve the balance of my time.
  Mr. GIBBONS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, again, the gentleman from Illinois, [Mr. Crane] has 
adequately explained this legislation. I will be brief.
  The trade subcommittee of the Committee on Ways and Means first 
visited Bulgaria as an official delegation in 1985. We were impressed 
then that Bulgaria was moving faster than most of the countries in the 
Eastern Bloc away from a centrally planned economy and toward a free 
and open economy. The evidence was clear then that that was their 
ultimate goal.
  Bulgaria, like most Eastern European countries, has had a tortured 
history, occupied by many different foreign powers over a long period 
of time, most recently occupied by the Germans during World War II and, 
prior to World War I, by the Turkish Government, the Ottoman Empire, 
for 500 or 600 years.
  They were abused greatly during their occupation, suffered a great 
deal, and have come out of it a wiser, but sadder nation.
  Mr. Speaker, we should grant to this country most-favored-nation 
treatment; in other words, ordinary trade treatment for a civilized 
country. It will help us. It will help them.
  Mr. Speaker, I reserve the balance of my time.
  Mr. CRANE. Mr. Speaker, I reserve the balance of my time.
  Mr. GIBBONS. Mr. Speaker, I yield such time as he may consume to the 
gentleman from Massachusetts [Mr. Frank].
  Mr. FRANK of Massachusetts. Mr. Speaker, I thank the very able 
ranking minority member for yielding time to me.
  I apologize for speaking a little bit out of order. If it is 4 
o'clock, it must be Bulgaria, which means I missed Cambodia. I admire 
the dispatch. I do not mean to get in the way of it. I think we 
sometimes take too long on things, but I did want to address a couple 
of words to the situation in Cambodia and, with the indulgence that the 
ranking minority member has given me, I will do that now.
  I was supportive of a letter that was sent by Lane Kirkland, 
president of the AFL-CIO, to the Government of Cambodia in which he 
makes some very cogent objections to the proposed labor law. The 
gentleman from Florida has quite correctly pointed out that most-
favored-nation treatment is a misnomer, since it does not mean that you 
are given preferential treatment.
  On the other hand, it is something which it is within our power to 
confer and you are better off with it than without it. And I do believe 
as a matter of course, we should now be doing everything we can to urge 
better labor laws among other things, better respect for working people 
in our trading partners as one way of preventing an erosion of the 
rights that have been gained by people here, in eastern Europe, and 
elsewhere.
  I do not oppose the Cambodia resolution, which is a good thing, since 
it is already over, but I do want to take the opportunity to have in 
the appropriate Record my concern. I have been told that the Cambodian 
Government has given assurances to Mr. Kirkland and others that they 
intend to correct the labor law that they are going to promulgate so 
that we will genuinely reflect the rights of workers to make their own 
choices and to advocate for their own rights.
  I would just note that many of us are supportive of the most-favored-
nation treatment for Cambodia on that assumption. I hope that by the 
next time it comes up, when it is time to be renewed, if it has to be, 
we will have that assurance.
  I thank the ranking minority member for yielding time to me.
  Mr. HOYER. Mr. Speaker, I rise today in support of H.R. 1643, 
extending most-favored-nation status to Bulgaria. Bulgaria has made 
great strides in the areas of human rights, foreign policy, economic 
reforms, and Jackson-Vanik requirements. MFN has been granted to 
Bulgaria since 1991 and this bill will continue Bulgaria's commitment 
to minority rights and a free market with permanent and unconditional 
most-favored-nation trade status.
  Mr. Speaker, since the fall of communism, Bulgaria has pledged 
progress toward democratic and economic reforms. They have met some 
significant barriers which have slowed the pace of some of these 
reforms, including a budget crisis and high inflation. It should be 
noted that much of the $8 billion debt is due to its commitment to 
participate in the UN embargo against Yugoslavia.
  Nonetheless, Mr. Speaker, human rights are respected in this diverse 
country of ethnic Bulgarians, Turks, Gypsies, and Bulgarian muslims. 
Ethnic Turks, in particular, have seen their situation improve 
considerably since the fall of communism and the Bulgarian Government 
has also displayed leadership in improving its traditionally rocky 
relations with Turkey. In virtually every area * * * freedom of 
movement, treatment of national minorities, and freedom of expression, 
Bulgaria has improved dramatically.
  In the former Yugoslavia, Bulgaria continues to work for a peaceful 
resolution and was the first country to recognize all of the former 
Yugoslav republics, including Macedonia. With a resolution of this 
nightmare if and when it ends, Bulgaria will see much improved economic 
conditions.
  Mr. Speaker, the future for Bulgaria is very bright. Their continued 
movement to a free market means a better standard of living for the 
Bulgarian people and improved relations with the United States. H.R. 
1643 is a major step in the right direction toward reaching this end 
and I urge its passage. Thank you.
  Mr. NEAL. Mr. Speaker, today we are voting on granting MFN to 
Cambodia. Cambodia did not have MFN in the past because they were under 
Communist rule. Over the past few years the country has had democratic 
elections, and the new government has made steps toward a market 
economy.
  I am concerned about granting MFN to Cambodia. This legislation 
provides Cambodia with permanent and unconditional MFN status. In my 
opinion, Cambodia needs to make 

[[Page H 6708]]
progress in two extremely important areas: Human rights and labor 
rights.
  Democracy and human rights are continually under attack in Cambodia. 
The Royal Cambodian Government is persecuting journalistic critics, 
expelling government opposition members of Parliament, and creating an 
atmosphere of fear to stifle those who would speak up for democracy.
  The granting of MFN does not mean Congress is not concerned about 
human rights violations. Congress will continue to monitor Cambodia's 
progress in this area.
  Cambodia has still not passed a labor law that meets international 
labor standards. At this time, freedom of association for workers is 
not guaranteed. The right to strike does not exist. In addition, there 
are no minimum labor standards.
  Recently, an opposition member of the Cambodia National Assembly, Sam 
Rainsy, was expelled from the assembly without a vote by the governing 
parties lead by the co-Prime Ministers. Also, there is a rumor other 
human rights supporters might be expelled.
  In recent months, the situation in Cambodia has not improved. I have 
raised these issues with USTR and the State Department and I will 
continue to follow them closely. We have to continue to monitor 
Cambodia and strongly encourage improvements.
  Mr. GIBBONS. Mr. Speaker, I yield back the balance of my time.
  Mr. CRANE. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Illinois [Mr. Crane] that the House suspend the rules 
and pass the bill, H.R. 1643.
  The question was taken.
  Mr. GIBBONS. Mr. Speaker, I object to the vote on the ground that a 
quorum is not present and make the point of order that a quorum is not 
present.
  The SPEAKER pro tempore. Pursuant to clause 5 of rule I and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.
  The point of no quorum is considered withdrawn.

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