[Congressional Record Volume 142, Number 85 (Tuesday, June 11, 1996)]
[Extensions of Remarks]
[Page E1058]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               EXTENDING PERMANENT MFN STATUS TO ROMANIA

                                 ______


                           HON. AMO HOUGHTON

                              of new york

                    in the house of representatives

                         Tuesday, June 11, 1996

  Mr. HOUGHTON. Mr. Speaker, I rise in strong support of H.R. 3161, a 
bill to grant permanent most favored nation [MFN] status to Romania.
  I have to believe that Romania certainly meets the test for permanent 
MFN status. The administration has certified Romania on several 
occasions as meeting the freedom of emigration requirements under the 
Jackson-Vanik law.
  From what I understand, Romania has also fully implemented its 
obligations under its bilateral commercial agreements and is a founding 
member of the World Trade Organization [WTO]. In fact, Romania is the 
only United States trading partner that is a member of the WTO but 
still receiving conditional MFN status from the United States.
  By not granting permanent MFN to Romania, we really injure Romania 
and ourselves. Failure to act on this measure would deny United States 
firms their full rights under existing multilateral trade agreements, 
and would pose a continuing obstacle to the further development of 
Romania's economy and democratic institutions.
  This measure has been endorsed by a bipartisan group of House Members 
and has been vigorously supported by the administration. In response to 
a request for public comments by the House Ways and Means Committee, 
over 38 firms, associations, ethnic groups, and individuals--including 
several former United States Ambassadors to Romania--recommended swift 
passage of H.R. 3161.
  Moreover, in the past few days, both Houses of the Romanian 
Parliament passed resolutions endorsing the establishment of permanent 
MFN status between our two countries. A statement on the resolution 
that was passed by the Chamber of Deputies follows:

                  Statement of the Chamber of Deputies

                     (By Adrian Nastase, President)

       The members of the Chamber of Deputies have been pleased to 
     note that bills to authorize the extension of 
     nondiscriminatory (Most Favored Nation) treatment to the 
     products originating in Romania were introduced in the United 
     States Congress on March 26, 1996 (S. 1644 and H.R. 3161). 
     They appreciate that this initiative is of utmost importance 
     for the development of the Romanian-American relationship and 
     support the reform process and transition to market economy.
       Taking into account the significance of this major action 
     for the bilateral Romanian-American relationship, the members 
     of the Chamber of Deputies of Romania reaffirm that, after 
     the December 1989 Revolution, the majority of the main 
     political parties, whether represented or not in the 
     Parliament, have unequivocally favored a speedy integration 
     of Romania into the Euro-Atlantic economic, political and 
     security structures, particularly NATO and the EU.
       With a view to reaching this objective, the leadership of 
     the main Romanian parties agreed and reiterated, on various 
     occasions, the basic orientation and the main directions of 
     the Romanian foreign policy, to be promoted, in a consistent 
     manner, by the Government. The development of a privileged 
     partnership and alliance with the United States of America 
     remains one of the essential directions of the foreign policy 
     of Romania which enjoy the consensus of the majority of the 
     Romanian political parties.
       The consensus of the main parties represented in the 
     Romanian Chamber of Deputies with respect to this priority of 
     the entire foreign policy of Romania was eloquently expressed 
     in the statements made by the leaders of the aforementioned 
     parties in 1993, when Romania was conditionally granted the 
     Most Favored Nations status by the United States.
       The evolution recorded in the commercial Romanian-American 
     exchanges in the two years and a half elapsed since the re-
     extension of the MFN status have fully confirmed the 
     soundness of this measure. In 1994 and 1995 Romania's exports 
     to the United States reached an annual level close to $200 
     m., nearly 2.8 times higher than the level recorded in 1993, 
     while the amount of the imports of American commodities 
     increased from $373 m. to $465 m. in 1994. In 1995, the 
     amount of imports from the United States was $392 m.
       The re-extension of the Most Favored Nations status has 
     stimulated the American investment in Romania, reaching at 
     present $144.5 m., as compared to only $72 m. in 1993.
       Granting permanent MFN status will provide significant 
     incentive for US companies to increase their investment in 
     Romania and make the United States the largest trading 
     partner of Romania.
       The members of the Romanian Chamber of Deputies appreciate 
     the fact that the United States ranks among the most 
     important investors in Romania, along with Germany, South 
     Korea and Italy.
       The significant increase in the Romanian-American 
     commercial exchanges and in the American investment will 
     support the advancement of the economic activities in 
     Romania, will encourage the transition to market economy and 
     the speeding up of the process of privatisation of the state 
     enterprises, contributes to the emergence of new mutually 
     beneficial business.
       At present, the firm resolve to develop close cooperation, 
     partnership and alliance with the United States and, in 
     connection to this, the belief that Romania is entitled to 
     benefit of MFN permanent status are fully shared by the 
     leading political parties and the Romanian people.
       Under these circumstances, the view that granting MFN 
     permanent status would influence the national election in 
     Romania is not in accordance with our perception on this 
     issue.
       The members of the Romanian Chamber of Deputies have 
     reaffirmed the political will of the parties represented in 
     the Parliament to further develop the democracy and market 
     economy and to ensure that this year elections are free and 
     fair. They urge the members of the United States Congress to 
     continue and to conclude the procedures aiming at granting 
     the Most Favored Nation status to Romania, as soon as 
     possible. The permanent extension of MFN is in Romania's 
     national interest and it is granted to Romania and not to any 
     political party.
       The Romanian Chamber of Deputies considers that granting 
     permanent Most Favored Nation status now would better serve 
     the interests of the Romanian society, the political 
     stability in the country as well as the strengthening of the 
     bilateral relationship with the United States.
       The members of the Romanian Chamber of Deputies take their 
     opportunity to convey to the U.S. Congressmen the best wishes 
     for success in their endeavors.
       This Statement has been approved by the Chamber of Deputies 
     at its session of May 23, 1996.

   Mr. Speaker, I hope all of my colleagues will support the effort to 
grant permanent MFN status to Romania.

                          ____________________