[Congressional Record Volume 147, Number 38 (Wednesday, March 21, 2001)]
[Senate]
[Page S2668]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DODD:
  S. 586. 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.
  Mr. DODD. Mr. President, I rise today to reintroduce legislation I 
authored last year to enable the President to admit Chile into NAFTA. 
Nearly 6 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 clearer environment have 
all been realized. In other words, Mr. President, NAFTA has succeeded 
despite the predictions of some that America could not compete in 
today's global economy.
  As I said last year, with the success of NAFTA as a backdrop, it is 
now high time to move forward and expand the free trade zone to other 
countries in our hemisphere. To help accomplish that important goal, my 
legislation will authorize and enable the President to move forward 
with negotiations on a free trade agreement with Chile.
  President Bush has stated time and again that he wants to increase 
ties with Latin America and more fully engage our neighbors to the 
South. Western Hemisphere trade ministers are planning to develop a 
draft proposal for a Free Trade Area of the Americas at their 
ministerial meeting in Buenos Aires in April. This draft will then be 
considered by Western Hemisphere leaders at the third Summit of the 
Americas in Quebec City at the end of that month. I hope that this 
summit bears fruit. Indeed, I have been working toward a free trade 
agreement of the Americas for many years. We should quickly take the 
first step toward economic integration with our Southern neighbors by 
including Chile, who has been in negotiations to join NAFTA since early 
January, in our North American trade agreement.
  Chile is surely worthy of membership in NAFTA. In fact, Chile has 
already signed a free trade agreement with Canada in 1996. And, in 
addition, Chile has also put in place a free trade agreement with 
Mexico. After a brief slowdown last year, today the Chilean economy is 
growing at a healthy annual rate of more than 6 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.
  In addition, Chile has already embraced the ideals of free trade. 
Since 1998, the Chilean tariff on goods from countries with which Chile 
does not yet have a free trade agreement has fallen from 11 percent to 
8 percent. That tariff is scheduled to continue to fall by a point a 
year until it reaches 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 $3.6 billion in American goods 
to that South American nation. That represents 24 percent of Chile's 
imports. That $3.6 billion in exports represents thousands of American 
jobs across the Nation.
  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 mandated in Chile's Constitution. American investment and trade cay 
play a critical role in building on Chile's political and economic 
successes.
  It is unrealistic to think that the President will have the ability 
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 
President Bush 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.
  The past 6\1/2\ 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 710,000 new 
American jobs all across the Nation.
  The many 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, this bill represents new American jobs 
in every state in the nation, a stronger American economy and greater 
American influence in our own Hemisphere. I urge my colleagues to 
support this bill.
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