[Congressional Record Volume 147, Number 26 (Thursday, March 1, 2001)]
[Senate]
[Page S1741]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       TRADE AGREEMENT COMPLIANCE

  Mr. BAUCUS. Mr. President, yesterday, I led a group of 11 Senators in 
urging President Bush to ensure that there will be full funding for the 
Commerce Department's International Trade Administration efforts to 
make sure that our Nation's trade agreements are fully implemented and 
followed by our trading partners. In the days leading up to the 
President's budget proposal, we were seriously concerned by reports 
that there would be deep cuts in this program. Although it appears that 
the fiscal 2002 budget does not include cuts, we continue to be 
concerned that anyone would even consider such a damaging move.
  This Nation has had a serious problem over the past two decades with 
many of our most important trading partners who have not complied with 
commitments made in trade agreements. The Japanese record, for example, 
of compliance with trade agreements is poor. We have brought disputes 
against the European Union at the WTO, and won those cases, yet the EU 
still does not comply with its obligations. China has presented major 
problems in implementing agreements on intellectual property rights 
protection and on market access, and China's entry into the WTO will 
bring new and even more difficult challenges to our efforts to ensure 
compliance.
  It is critical that our Government agencies have the resources they 
need to monitor compliance, and then to take the actions necessary to 
enforce the commitments made by other nations. Shortchanging those 
agencies means shortchanging the American farmer, rancher, worker, and 
business owner. Further, when our trading partners fail to comply with 
a trade agreement, it corrupts the negotiating process and leads to a 
loss of confidence in the entire trading system. We cannot allow that 
to happen.
  Therefore, we 11 Senators are calling on the President to ensure that 
the Department of Commerce, USTR, and other agencies responsible for 
trade agreement compliance are fully funded to ensure that our trading 
partners follow the rules that they have agreed to follow.
  I ask unanimous consent that the letter we sent to the President be 
printed in the Record.
  There being no objection, the letter was ordered to be printed in the 
Record, as follows:
                                                February 28, 2001.
     President George W. Bush,
     The White House,
     Washington, DC.
       Dear Mr. President: Over the past twenty years, the United 
     States has negotiated hundreds of bilateral, regional and 
     multilateral trade agreements. Unfortunately, the record of 
     compliance by many of our trading partners is woefully 
     inadequate. In the case of Japan, for example, the American 
     Chamber of Commerce in Japan has concluded that barely half 
     of our major bilateral trade agreements were fully or mostly 
     successful. China's imminent accession to the WTO gives us an 
     unprecedented challenge in ensuring compliance with their new 
     commitments to open and liberalize the Chinese market.
       In order to rebuild the consensus on trade in this country, 
     it is imperative that we demonstrate, to our businesses and 
     to our citizens, that the agreements we have concluded 
     produce results. Agreements without full compliance debase 
     the entire trade negotiating process. Ensuring compliance 
     must be a top priority for the United States.
       Therefore, we are distressed by recent reports that the 
     proposal for fiscal 2002 funding for the Commerce 
     Department's International Trade Administration will not 
     provide sufficient resources for compliance activities. 
     Congress provided significant new funding to USTR and the 
     International Trade Administration to increase their 
     compliance capabilities in fiscal 2001. It would be a serious 
     mistake to reduce our government's ability to ensure that 
     trade agreements fulfill their goals and that our 
     manufacturers, farmers and ranchers, service providers, and 
     exporters benefit.
       We urge you to ensure full budgetary support for these 
     critically important compliance efforts.
           Sincerely,
         Max Baucus, Jeff Bingaman, Blanche L. Lincoln, Dick 
           Durbin, Dianne Feinstein, Ted Kennedy, Byron L. Dorgan, 
           Bob Graham, Max Cleland, Jack Reed, Patty Murray.

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