[Congressional Record Volume 145, Number 72 (Tuesday, May 18, 1999)]
[Senate]
[Page S5487]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DODD:
  S. 1065. A bill to authorize negotiation for the accession of Chile 
to the North American Free Trade Agreement, to provide for Fast Track 
Consideration and for other purposes; to the Committee on Finance.


                      CHILE FAST TRACK ACT OF 1999

 Mr. DODD. Mr. President, nearly five years ago, a bipartisan 
majority of this body ratified the North American Free Trade Agreement. 
Since then the promises of new jobs, increased exports, lower tariffs 
and a cleaner environment have all come true. In other words, Mr. 
President, NAFTA has succeeded despite the predictions of some that 
America could not compete in today's global economy.
  With the success of NAFTA as a backdrop, it is now time to move 
forward and expand the free trade zone to other countries in our 
hemisphere. To help accomplish that important goal, I am introducing 
legislation today which will authorize and enable the President to move 
forward with negotiations on a free trade agreement with Chile.
  Chile, Mr. President, is surely worthy of membership in NAFTA. In 
fact, Chile already signed a free trade agreement with Canada in 1996. 
Today, the Chilean economy is growing at a healthy annual rate of more 
than 7 percent. Chile is noted for its concern for preserving the 
environment and has put in place environmental protections that are 
laudable. Chile's fiscal house is in order as evidenced by a balanced 
budget, strong currency, strong foreign reserves and continued inflows 
of foreign capital, including significant direct investment.
  Chile has already embraced the ideals of free trade. Last January, 
the Chilean tariff on goods from countries with which Chile does not 
yet have a free trade agreement fell from 11 percent to 10 percent. 
That tariff is scheduled to continue to fall gradually to 6 percent in 
2003. While some goods are still assessed at a higher rate, the United 
States does a brisk export business to Chile, sending approximately 
$4.5 billion in American goods to that South American nation. That 
represents 25 percent of Chile's imports. That $4.5 billion in exports 
represents thousands of American jobs across the nation. Furthermore, 
the United States currently runs a trade surplus of nearly $3 billion 
per year.
  Our firm belief in the importance of democracy continues to drive our 
foreign policy. After seventeen years of dictatorship, Chile returned 
to the family of democratic nations following the 1988 plebiscite. 
Today, the President and the legislature are both popularly elected and 
the Chilean armed forces effectively carry out their responsibilities 
as spelled out in Chile's Constitution. American investment and trade 
can play a critical role in building on Chile's political and economic 
successes.
  It is unrealistic to think that the President will be able to 
negotiate a free trade agreement without fast track authority. Nor 
should we ask Chilean authorities to conduct negotiations under such 
circumstances. Therefore, the bill I am introducing today will provide 
him with a limited fast track authority which will apply only to this 
specific treaty. I believe that fast track is key to enabling the 
President to negotiate the most advantageous trade agreements, and 
should therefore be re-authorized. At this point, however, there are 
stumbling blocks we must surmount before generic fast track can be re-
authorized. Those stumbling blocks should not be allowed to stand in 
the way of free trade with Chile.
  Naysayers claim that free trade prompts American business to move 
overseas and costs American workers their jobs. They will tell you that 
America, the nation with the largest and strongest economy, the best 
workers and the greatest track record of innovation cannot compete with 
other nations.
  Mr. President, the past five and a half years since we ratified NAFTA 
have proven them wrong. Today, tariffs are down and exports are up. The 
environment in North America is cleaner. Most importantly, NAFTA has 
created 600,000 new American jobs all across the nation.
  The successes of NAFTA are an indication of the potential broader 
free trade agreements hold for our economy. Furthermore, trade and 
economic relationships foster American influence and support our 
foreign policy. In other words, Mr. President, this bill represents new 
American jobs in every state in the nation, a stronger American economy 
and greater American influence in our own Hemisphere. Mr. President, I 
urge my colleagues to support this bill.
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