[Congressional Record Volume 141, Number 142 (Wednesday, September 13, 1995)]
[Extensions of Remarks]
[Page E1772]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]



[[Page E 1772]]


               THE DEPARTMENT OF TRADE ESTABLISHMENT ACT

                                 ______


                             HON. TOBY ROTH

                              of wisconsin

                    in the house of representatives

                     Wednesday, September 13, 1995
  Mr. ROTH. Mr. Speaker, today I have introduced the Department of 
Trade Establishment Act.
  The idea of creating a Trade Department is not new. In fact, some of 
us have been working for years for a fundamental re-organization of our 
trade agencies. My own work on this issue began some 12 years ago.
  Our deepening trade deficit makes this issue urgent. Last year, we 
had a $166 billion merchandise trade deficit--the worst in our history. 
But this year, the merchandise deficit is headed toward $200 billion, 
$40 billion worse than last year. Yet, our economy has just been judged 
the most efficient in the world. Clearly, our current trade programs 
are inadequate.
  The weakness of our current trade organization is also reflected in 
the fact that exports account for barely 10 percent of our gross 
domestic product, lower than any of our major competitors. As our 
domestic economy matures and slows down, exports will be crucial to our 
future economic growth and strength.
  What we need is an across-the-board, government-wide consolidation 
and strengthening of our trade functions. We are spending about $3 
billion on 150 trade programs, spread among some two dozen trade 
agencies. As GAO testified before my Subcommittee on International 
Economic Policy and Trade last week, these trade functions are 
scattered, duplicated and uncoordinated. The result is inadequate to 
assist our exporters in today's global markets. Moreover, it is too 
costly.
  By contrast, our major trade competitors--Japan, Germany, France, and 
Korea--all have fully coordinated and streamlined trade ministries.
  Establishing a Trade Department is the right course, for three 
reasons. First, it would assure a government-wide consolidation of 
trade functions. Second, it would make our trade programs consistent 
and coherent. Third, it would give trade issues the proper attention 
and priority within our own Government and in our relations with other 
nations.
  Mr. Speaker, included with this statement is a brief summary of my 
bill. A section-by-section analysis is available in the office of the 
Subcommittee on International Economic Policy and Trade, room B-359 
Rayburn. In my judgment, this is the right framework to lead us into 
the 21st century as the most competitive trading nation in the world.
   Brief Summary Department of Trade Establishment Act Introduced by 
                         Congressman Toby Roth

       The Act establishes a Department of Trade to provide a 
     streamlined, coordinated and more effective trade 
     organization. It consolidates some two dozen federal trade 
     agencies and some 150 separate programs into a cohesive and 
     less costly structure.


                             key provisions

       (1) The Act establishes a Department of Trade and transfers 
     the existing trade-related functions of the Commerce 
     Department to the new department.
       Included are all the functions of the International Trade 
     Administration, the Bureau of Export Administration and the 
     Office of International Economic Policy.
       (2) The new Secretary of Trade is the President's chief 
     trade policy-maker and coordinator of the federal 
     government's trade-related activities.
       The Secretary chairs both of the key interagency trade 
     committees (the Trade Policy Committee and the Trade 
     Promotion Coordinating Committee), and serves as Chairman of 
     the Board of both the Export-Import Bank and the Overseas 
     Private Investment Corporation (OPIC).
       (3) The U.S. Trade Representative is retained as the chief 
     trade negotiator, in the Executive Office of the President.
       The Trade Representative reports to the President and 
     functions under the policy guidance of the President and the 
     Trade Secretary.
       Responsibility for administering trade sanctions, including 
     the Section 301 program, is transferred to the Department of 
     Trade.
       (4) The President is required to transfer and consolidate 
     all non-agricultural trade promotion functions from other 
     departments and agencies into the Trade Department.
       (5) After the government-wide consolidation, the President 
     is required to reduce overall spending on the consolidated 
     functions by 25 percent from the overall level of the 
     previously unconsolidated functions.
     

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