[Congressional Record Volume 144, Number 101 (Friday, July 24, 1998)]
[Extensions of Remarks]
[Pages E1424-E1425]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          THE GROWING U.S. TRADE DEFICIT WITH CHINA AND JAPAN

                                 ______
                                 

                        HON. WILLIAM O. LIPINSKI

                              of illinois

                    in the house of representatives

                         Friday, July 24, 1998

  Mr. LIPINSKI. Mr. Speaker, I rise today to speak about our rapidly 
growing trade deficit with China and Japan and to strongly urge the 
Administration to take stronger measures to lower foreign trade 
barriers to American goods and services.
  China and Japan are this nation's largest deficit trading partners. 
In 1997, our respective trade deficits with China and Japan were $53 
billion and $58.6 billion. That's a combined deficit of over $110 
billion. Needless to say, but nevertheless an important issue to 
emphasize, the massive trade deficits with Japan and China costs us 
billions of dollars of exports and tens of thousands--even hundreds of 
thousands of jobs.
  The Administration bears a large part of the blame by deferring to 
our deficit trading partners during negotiations instead of being more 
aggressive in promoting fair trade agreements that advance the 
interests of American workers. It's not as if the Administration does 
not have the tools to force foreign nations to open up their markets. 
They do. Section 301 of the Trade Act of 1974 comes to mind. It just 
seems to me that they lack the will and initiative. Do they even care 
about the great American middle class, or are they just pandering for 
political posturing?
  I strongly believe with all of my heart that the Administration can 
do more to open up foreign markets, especially with our largest deficit 
trading partners: China and Japan. Section 301 is a powerful tool in 
our arsenal. Congress gave it to the executive branch, but this 
Administration has been extremely reluctant to

[[Page E1425]]

use it. Since this Administration came into office in 1992, not once 
has a Section 301 investigation been initiated against China despite 
the overwhelming evidence of massive trade barriers to American 
products.
  Back in 1991, the Bush Administration initiated a Section 301 case 
against China. We pushed, and China blinked. Since then, however, China 
has consistently failed to follow through with their obligations 
outlined in the agreement. It's time to pull out Section 301 again, 
because American jobs and American working families are at stake here. 
It's time to stop talking about the problem and time to start doing 
something about the problem.

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