[Congressional Record Volume 142, Number 55 (Thursday, April 25, 1996)]
[Extensions of Remarks]
[Pages E653-E654]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         GRANT PERMANENT MOST-FAVORED-NATION STATUS TO ROMANIA

                                 ______


                          HON. NORMAN D. DICKS

                             of washington

                    in the house of representatives

                        Thursday, April 25, 1996

  Mr. DICKS. Mr. Speaker, last month, our colleague, Phil Crane, 
chairman of the Trade Subcommittee, introduced legislation to grant 
permanent most-favored-nation status to the country of Romania. It is a 
bill that is overdue and I commend my colleague and the cosponsors of 
the legislation for taking this step.
  Of all the Eastern European nations journeying from a centrally 
planned economic system to that of a free market economy, Romania has 
had the longest road to travel. It suffered through 40 years of a 
Communist economic policy. Its 1989 revolution exposed the hollowness 
of that economic legacy, but it also exposed how deeply ingrained that 
way of thinking can become. Nevertheless, despite tremendous obstacles, 
Romania has not faltered in its attempt to join the Western economic 
community of nations.
  Romania is making the hard choices. It is taming inflation. Between 
1994 and 1995, the inflation rate was cut in half from 62 percent to 28 
percent. After selling off numerous state enterprises, at the cost of 
increased unemployment, Romania's rate of unemployment has shrunk from 
over 11 percent in 1994 to less than 9 percent in 1995.
  Romania's private sector has grown into a formidable economic force. 
Today, 45 percent of Romania's gross domestic product comes from the 
private sector. By the end of this year, estimates show that 70 percent 
of its GDP will be generated by thousands of entrepreneurs who finally 
have the opportunity to determine their own economic future.
  Romania is traveling a road that we in this country have encouraged 
by provisionally granting them MFN status. As a result, trade between 
our two nations has increased as United States exports take advantage 
of these new market opportunities, I review of Romania's economic 
policies, when coupled with its

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attempt at political democracy building, I believe that the prudent 
course of action for the United States is to make permanent a benefit 
we have granted Romania several times before. For these reasons, I urge 
my colleagues to support Chairman Crane's bills.

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