[Congressional Record Volume 143, Number 87 (Friday, June 20, 1997)]
[Extensions of Remarks]
[Pages E1284-E1285]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                      FREE TRADE AND THE G8 SUMMIT

                                 ______
                                 

                           HON. BOB SCHAFFER

                              of colorado

                    in the house of representatives

                         Friday, June 20, 1997

  Mr. BOB SCHAFFER of Colorado. Mr. Speaker, I rise today to alert my 
colleagues to

[[Page E1285]]

the upcoming challenges and opportunities of the G8 Summit in Denver. 
Anticipating the economic boost from this week's G8 Summit, Denver area 
merchants hope to rake in big revenues from the thousands of visitors 
expected. Yet how well Colorado fulfills its role as gracious host will 
be but one measure of the State's achievement during the historic 
event.
  More important than the short-term economic surge associated with the 
summit, success in advancing the Nation's trade objectives will have a 
far greater impact on Colorado's long-term economy and job growth. 
Among the leaders assembled, the most pivotal exchange to watch is the 
one between President Clinton and Japanese Prime Minister Hashimoto.
  Hashimoto's visit will highlight the close alliance the United States 
and Japan have established throughout the cold war years, and maintain 
today. However, while United States interests remain tightly linked 
with those of Japan on many fronts, such as containment of North Korea, 
the Hashimoto visit may serve as a springboard for talks on other 
issues that divide us.
  Despite the close ties we have forged, the bilateral relationship 
between the United States and Japan has been marred by a series of 
ongoing trade disputes that are of major concern to United States 
interest--especially the interests of Colorado.
  Specifically, the United States Trade Representative is challenging 
30 years of Japan's Government-supported market barriers that have 
prevented, and continue to prevent international competitors from 
gaining fair access to the Japanese market for consumer film and paper 
products. The massive array of evidence reveals for the first time, an 
elaborate system designed to exclude foreign competitors from Japanese 
markets.
  So what does film and paper have to do with Colorado? In a word, 
Kodak. Eastman Kodak Co. employs over 2,700 people in northern 
Colorado. Their photographic products are sold all over the world.
  Much of what Kodak sells overses is manufactured at their plant in 
Windsor, CO. where Kodak exports color paper and medical x-ray film 
directly to Japan. Expanding this market share would certainly create 
more jobs in Colorado and expand economic prosperity.
  One year ago, the United States Government determined that Japan has 
engaged in unreasonable trade practices in the lucrative market. Rather 
than retaliating directly, the United States filed a case with the 
newly formed World Trade Organization [WTO]. The case is regarded as 
the most comprehensive well-documented trade case in history--the 
resolution of which could substantially change the way America does 
business with Japan. The case is expected to be decided in October, 
this year.
  For those of us who are WTO skeptics, the episode is the first real 
test of the panel's capacity to address structural and access barriers. 
The precedent that could be set might have a profound impact on 
literally hundreds of Colorado-based exporters seeking broader markets 
in Japan.
  George M.C. Fisher, Kodak CEO expressed optimism about the case 
against Japanese protectionism. ``We believe that the WTO, upon 
examination of the evidence, will conclude that the laws and measures 
exacted by the Government of Japan to restrict foreign competition in 
its consumer photographic produce market, are inconsistent with the 
country's international obligations under the GATT,'' he said. ``The 
ramifications of this historic case are potentially of landmark 
proportions,''
  Still, it is unfortunate that Kodak must go to such exhausting 
lengths to gain fair market access in Japan. An assertive United States 
President would have dealt more firmly with Japan rather than defer the 
Kodak case to the WTO as Clinton chose to do.
  If Prime Minister Hashimoto is any less stubborn, the G8 meeting 
right here in Colorado might prove to be the perfect place to announce 
the loosening of trade restrictions, to allow greater competition in 
the Japanese market, to allow Japanese consumers the advantage of lower 
prices, and to shore up the otherwise good relationship between the 
United States and Japan. It would be a Kodak moment, that all of 
Colorado could take to the bank.

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