[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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