[Congressional Record Volume 142, Number 43 (Tuesday, March 26, 1996)]
[Senate]
[Page S2863]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BROWN (for himself, Mr. Simon, Mr. Grassley, and Mr. 
        Baucus):
  S. 1644. A bill to authorize the extension of nondiscriminatory 
treatment (most-favored-nation) to the products of Romania; to the 
Committee on Finance.


             romania most-favored-nation status legislation

  Mr. BROWN. Mr. President, I rise today with several of my 
distinguished colleagues, including Senator Paul Simon, Senator Chuck 
Grassley, and Senator Max Baucus, to introduce a historic measure, a 
bill to permanently restore nondiscriminatory treatment to the products 
of Romania. We are joined by Representatives Phil Crane, Sam Gibbons, 
and Barbara Kennelly in the House who are also introducing this same 
bill in that body today.
  On December 22, 1989, Romania emerged from years of brutal Communist 
dictatorship and began its careful journey toward democracy and free 
markets. By 1991, Romania had approved a new Constitution and elected a 
Parliament, laying a foundation for a modern parliamentary democracy. 
This year will mark the second nationwide Romanian Presidential 
election under the new Constitution.
  Romania's economic legacy of extreme centralization, an oppressive 
Communist government and a stifling bureaucracy gave it one of the 
longest paths to reach a functioning market economy of any of the 
emerging democracies of Central Europe. Nonetheless, according to the 
U.S. Department of Commerce, after many years of difficult work, much 
of the necessary legislative framework for a market economy is in 
place. Romania's economic reforms include the establishment of a two-
tier banking system, the introduction of a modern tax system, the 
freeing of most prices and elimination of most subsidies, the adoption 
of a tariff-based trade regime, and the privatization of nearly all 
Romanian agriculture and rapidly developing enterprises.
  As I witnessed on my recent visit to Romania, the economic changes 
are remarkable. Romania's private sector currently accounts for 45 
percent of gross domestic product, including more than 80 percent of 
agricultural property with 5 million. new landowners, more than half a 
million private firms, and 46,000 joint ventures with foreign capital.
  American investment in Romania doubled from 1993 to 1994 and doubled 
again in 1995, with total foreign investment of $1.6 billion as of 
December 31, 1995. Romanian exports to the United States are growing 
rapidly, increasing by 27 percent through the third quarter of 1995 
over the same period in 1994.
  All in all, Romania's progress in instituting democratic reforms and 
a free market economy has earned it a permanent extension of most-
favored-nation treatment. In addition, Romania has been found by 
President Clinton to be in full compliance with the freedom of 
emigration requirements under title IV of the Trade Act of 1974. As I 
found during my recent visit, Romania is clearly making significant 
progress in rejoining the West. I urge the support of my colleagues for 
the earliest consideration of this important measure.
                                 ______