[Congressional Record Volume 143, Number 135 (Thursday, October 2, 1997)]
[Extensions of Remarks]
[Page E1904]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page E1904]]
                             TRADE FAIRNESS

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                     HON. RANDY ``DUKE'' CUNNINGHAM

                             of california

                    in the house of representatives

                      Tuesday, September 30, 1997

  Mr. CUNNINGHAM. Mr. Speaker, golf was not invented in the United 
States. But the United States leads the world in the manufacturing of 
quality golf clubs. Golfers know that most of these manufacturers are 
headquartered in California, predominantly in Carlsbad in my 
congressional district. They dominate this $2-billion industry because 
they lead in research and development of new materials that improve the 
performance, durability, and appearance of golf clubs. Major American 
investments have been made in the research, development, design, and 
manufacture of golf clubs, components, and their materials.
  To remain competitive, these companies at times source components, 
such as golf club heads, offshore. Their high-paying research and 
design and final manufacturing operations remain here in the United 
States. Modern quality domestic golf clubs undergo precision operations 
involving many skilled U.S. technicians, using leading edge assembly 
and test equipment here in the United States.
  Unfortunately, the prosperity of American employers is threatened and 
disrupted by arbitrary or capricious country of origin marking rules 
and regulations. These have been adopted and proposed by the U.S. 
Customs Service. They include the NAFTA marking regulations, the 
proposed marking regulations, and ultimately the Uruguay round country 
of origin changes scheduled for implementation in several years. The 
U.S. golf club industry has been able to cope with U.S. Customs 
regulations prior to implementation of the NAFTA marking rules. But the 
new country of origin marking requirements have become real trade and 
economic barriers. Contrary to their stated purpose, the new 
requirements are less understandable, more subjective, and more 
burdensome than previous marking requirements.
  The marking problems can be resolved by recognizing that the process 
of final manufacturing of golf clubs in the United States is clearly a 
substantial transformation. Unlike golf clubs of the past, the final 
manufacturing of modern golf clubs is a high-precision, multi-step 
process by skilled U.S. technicians requiring significant attention to 
detail. They use laser-guided equipment and highly sensitive scales to 
determine the weights of individual components and final clubs. Any 
slight variance causes the rejection of a club that does not meet 
company or industry swingweight standards.
  The U.S. golf club manufacturing industry is a significant domestic 
employer that deserves to be treated fairly by trade laws. New and 
Proposed country of origin marking requirements simply fail to 
recognize the technological progress this industry has made, at the 
demand of golfers everywhere. By enacting legislation that reflects 
current industry practices, we restore trade fairness to the U.S. golf 
club industry, preserve good American jobs, and enhance our trade 
competitiveness.

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