[Congressional Record Volume 142, Number 28 (Tuesday, March 5, 1996)]
[House]
[Pages H1673-H1675]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               MOST-FAVORED-NATION TREATMENT FOR BULGARIA

  Mr. CRANE. Mr. Speaker, I move to suspend the rules and pass the bill 
(H.R. 2853) to authorize the extension of nondiscriminatory treatment--
most-favored-nation treatment--to the products of Bulgaria.
  The Clerk read as follows:

                               H.R. 2853

       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 bilaterial 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 nondiscriminatory treatment to the products of Bulgaria, 
     title IV of the Trade Act of 1974 shall cease to apply to 
     that country.

  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].


                             general leave

  Mr. CRANE. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days within which to revise and extend their remarks 
on H.R. 2853.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Illinois?
  There was no objection.
  Mr. CRANE. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in strong support of H.R. 2853, 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 non-controversial and is identical to legislation that the 
House passed last year, H.R. 1643, by a voice vote. The House needs to 
take action on this important legislation again because the provisions 
on Bulgaria were not contained in the version of H.R. 1643 that was 
ultimately enacted.
  The reasons for the normalization of trade relations between the 
United States and Bulgaria through the passage of H.R. 2853 remain the 
same as they were at the time of the House's consideration of this 
issue last year. At present, Bulgaria's MFN status is regulated by 
title IV of the Trade Act of 1974, which is commonly referred to as the 
Jackson-Vanik amendment. Since 1993, Bulgaria has received MFN status 
after the President has found the country to be in full compliance with 
the freedom of emigration requirements contained in this provision of 
United States law.
  The political and economic circumstances in Bulgaria have changed 
considerably since the enactment of the Jackson-Vanik amendment, which 
was intended to address United States trade relations with nonmarket 
economies. In recent years, the Communist dictatorship in Bulgaria has 
collapsed and a democratically elected government has taken office 
which has implemented basic market-oriented principles, including 
privatization. Normalizing United States trade relations with Bulgaria, 
as has been done for

[[Page H1674]]

other East European countries, will enhance our bilateral relations 
with the country. Moreover, it will foster the economic development of 
Eastern Europe by providing the business community with greater 
certainty with respect to Bulgaria's status under United States law.
  At present, Bulgaria is also in the final stages of its negotiations 
to become a member of the World Trade Organization [WTO]. In this 
process, Bulgaria has presented a market access offer that would 
further open the Bulgarian economy to United States exports. For this 
reason, passage of H.R. 2853 is important in order for the United 
States to avail itself of all WTO rights in our trade relations with 
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 conditional MFN status will 
be renewed by the President in the future. Therefore, enactment of H.R. 
2853 will not affect projected Federal Government receipts.
  Mr. Speaker, I urge my colleagues to support the passage of this 
legislation, and I reserve the balance of my time.
  Mr. GIBBONS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, the gentleman from Illinois [Mr. Crane] has adequately 
explained this bill. I will not belabor the time. I had planned to do a 
little filibustering here, because I was waiting for the gentleman from 
Illinois [Mr. Hyde] to reach the floor, but he is already here, so I 
will not do the filibuster.
  I was going to point out at great length the strides Bulgaria has 
made since it has become a free nation. It has joined the family of 
nations very well, conducted itself as well as we can really expect, 
considering the tortuous history that this country has gone through.
  Mr. Speaker, I would like to commend all the people in Bulgaria for 
what they have done. I do not think it is widely known here in the 
Congress or widely known throughout the world, but Bulgaria has 
modernized its revenue collection system, and has adopted a very 
comprehensive value-added tax. Now, that is something that we are going 
to hear more about in our future around here, but the gentleman from 
Illinois is here, and I urge the adoption of this bill.
  Mr. Speaker, I yield back the balance of my time.
  Mr. CRANE. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, before we conclude this exchange on this important piece 
of legislation, I want to take this opportunity briefly to pay tribute 
to the former chairman of our Committee on Ways and Means and the man 
under whom I served when he was chairman of the Subcommittee on Trade. 
I refer, of course, to the gentleman from Florida [Mr. Gibbons].
  Mr. Speaker, I have often mentioned to folks that it was the 
Democratic party traditionally that embraced free trade, and it was the 
Republicans that tried to put the Great Wall of China around this 
country. In the post World War II era, our positions tended to shift 
somewhat, but not totally. It was, in fact, McKinley, a Republican, who 
imposed what at that point was the highest tariff in our history in 
1890. That brought on the panic of 1893.
  Grover Cleveland was reelected in 1892, and he got the tariffs 
lowered and he restored a stable economy again. He said in a State of 
the Union message at that time, when you put those walls around your 
country, you inflict the greatest injury on that man who earns his 
daily bread with the sweat of his brow. That was a profound truth that 
he uttered. But I have mentioned to many people that the gentleman from 
Florida, Sam Gibbons, is our Grover Cleveland, and he has faithfully 
stood on behalf of those free market principles, and has tried to 
advance them, and we have worked amicably on a bipartisan basis on all 
of these issues. His announcement of his retirement I deeply regret. He 
will be profoundly missed. I salute you, Sam, and thank you for your 
guidance.
  Mr. BEREUTER. Mr. Speaker, this Member rises in support of H.R. 2853, 
which would extend nondiscriminatory most-favored-nation treatment--
normal tariff status--to the export products of Bulgaria. This Member 
commends his colleagues from the Ways and Means Committee, especially 
the chairman of the committee, the distinguished gentleman from Texas 
[Mr. Archer], for bringing this legislation to the House floor. This 
Member would also commend the ranking minority member, the 
distinguished gentleman from Florida [Mr. Gibbons], who has recently 
announced his retirement and who will be sorely missed by this Member 
and all Members of this body.
  He is among the first Members of Congress who took a deep interest in 
the nations of Eastern and Central Europe even before these countries 
emerged from behind the Iron Curtain. This Member first visited 
Bulgaria in the early 1980's as part of a Gibbons-led trade delegation. 
His good counsel and knowledge about these countries has helped us 
facilitate our relations with those emerging democracies and active 
trading partners.
  Finally, this Member congratulates the chairman of the Ways and Means 
Trade Subcommittee, Mr. Crane, and the ranking minority member, Mr. 
Rangel, for their leadership on this important legislation. Their 
effort is appreciated by this Member.
  There are four major reasons that Bulgaria has earned most-favored-
nation status. First, Bulgaria has received MFN treatment since 1991 
through the waiver process, and has been found to be in compliance with 
the freedom of emigration requirements of the Trade Act of 1974. 
Second, Bulgaria has reversed many years of Communist dictatorship and 
has instituted a constitutional republic, a democratically elected 
government and basic market-oriented reforms. The Bulgarian people 
enjoyed their first direct Presidential elections in 1992. Third, 
Bulgaria is in the process of acceding to the World Trade Organization 
[WTO] and extension of unconditional MFN would enable the United States 
to avail itself of all rights under the WTO with respect to Bulgaria. 
Fourth, finally, Bulgaria has demonstrated a strong desire to build 
friendly relations with the United States and to cooperate fully with 
us on trade matters.
  In closing, Mr. Speaker, this Member reiterates his strong support 
for H.R. 2853 and urges his colleagues to join in this support.
  Mr. GILMAN. Mr. Speaker, I rise in support of H.R. 2853, a bill 
extending most-favored-nation trade status to Bulgaria.
  Bulgaria emerged from Communist dictatorship in November 1989, when 
Communist leader Todor Zhivkov was removed from power and the path was 
laid for the free elections that were later held in June 1990.
  Just as the other Eastern European countries that emerged from 
Communist dictatorship after 1989, Bulgaria has faced considerable 
challenges in transforming its economy and building a new foreign 
policy focused on integrating Bulgaria into European and trans-Atlantic 
institutions.
  Unfortunately, Bulgaria and the problems it faces have not often 
received sufficient attention from the international community.
  In fact, given the pressing problems elsewhere in the region--
particularly the conflicts in the nearby states of the former 
Yugoslavia--many have preferred to see Bulgaria as simply an oasis of 
stability in the otherwise turbulent Balkans, overlooking the fact that 
Bulgaria's economy has suffered from more than just the problems 
associated with transforming a Communist economy to one based on a 
market mechanism.
  The reality is that, in the last few years, Bulgaria's economy has 
been adversely affected by its observance of economic sanctions placed 
on two of its traditional trading partners by the international 
community.
  Since the early part of this decade, sanctions on Serbia and Iraq 
have resulted in considerable commercial losses for Bulgaria--losses 
Bulgaria has accepted as a member of the international community, but 
losses nonetheless.
  The United States has tried to assist Bulgaria in this difficult time 
with direct aid for political and economic reform and as a member of 
the G-24 group of nations coordinating aid for that country.
  It is now time, however, for us to try to do a little more to help 
Bulgaria and its people as they work to transform their economy and 
join in a new, modern, prosperous, and democratic Europe.
  I hope my colleagues will join in supporting this measure, which 
should help Bulgaria by providing it with most favored nation--or MFN--
trade status for its exports to the United States.
  Let us today voice our support for those positive steps that Bulgaria 
has taken since emerging from communism just a few short years ago, and 
urge it forward toward a prosperous and democratic future.
  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 Kentucky [Mr. Bunning] that the House suspend the rules 
and pass the bill, H.R. 2853.
  The question was taken.
  Mr. BUNNING of Kentucky. Mr. Speaker, I object to the vote on the

[[Page H1675]]

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, 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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