[Congressional Record Volume 147, Number 49 (Thursday, April 5, 2001)]
[Senate]
[Pages S3540-S3541]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. SNOWE (for herself and Mr. Kerry):
  S. 714. A bill to urge the United States Trade Representative to 
pursue the establishment of a small business advocate within the World 
Trade Organization, and for other purposes; to the Committee on 
Finance.
  Ms. SNOWE. Mr. President, I rise today to introduce legislation 
designed to promote export opportunities for our nation's small 
businesses.
  Nationwide, an estimated 13 to 16 million small businesses account 
for over 99 percent of all employers. They also employ over 50 percent 
of the workforce, and account for virtually all of the new jobs being 
created. Maine, in particular, is a state with a historical record of 
self-reliance and small business enterprise. Of the roughly 37,000 
employers, about 97 percent are small firms. Maine also boasts an 
estimated 73,000 self-employed persons. Surveys credit small businesses 
with virtually all of the new job creation in the state as well.
  In addition, small firms played a central role in the latest economic 
expansion. From 1992 to 1996, for example, small firms created 75 
percent of the new jobs, up 10.5 percent, while large company 
employment grew only 3.7 percent. In the trade arena, according to the 
U.S. Small Business Administration, SBA, the number of small U.S. firms 
engaged in exporting has tripled since 1987, and over the past five 
years, the dollar value of small business exports has grown 300 
percent. Small business now accounts for 31 percent of the value of 
U.S. exports. Overall, 97 percent of all exporters are small 
businesses, with the most dramatic export growth among companies 
employing less than 20 people. Firms engaged in international trade are 
20 percent more productive, and employee wages are 15 percent higher in 
firms that trade as compared to firms that do not engage in trade. 
These firms are also 9 percent less likely to go bankrupt, and 
experience 20 percent greater job growth than non-traders.
  Despite these impressive statistics, less than one percent of U.S. 
small businesses are engaged in international trade-related business 
activities. That is why I believe so strongly that there is substantial 
export potential in the small business community that has yet to be 
fully realized.
  Small and medium-sized businesses are the fastest growing segment of 
the international business community. However, many report that their 
interests have not been given sufficient attention by our international 
trade negotiators. In addition, small businesses often cannot afford to 
maintain in-house international trade expertise to resolve complex 
trade problems. Small business advocacy groups often lack political 
influence in foreign markets, which hinders solving problems outside of 
the legal process. Small firms often do not have the sales volume to 
overcome the costs of trade barriers and substantial overhead expenses 
in international transactions.
  With these concerns in mind, in January, I introduced the Small 
Business Enhancement Act of 2001, which contains a provision to 
establish the position of Assistant United Trade Representative for 
Small Business. I believe that this important step would ensure that 
small businesses have a seat at the table when international trade 
agreements are being negotiated.
  The measure I am introducing today takes this concept one step 
further by expressing the sense of the Senate that the United States 
Trade Representative, USTR, should pursue the establishment of a small 
business advocate within the World Trade Organization, WTO, as a matter 
of U.S. policy.
  Because the WTO is the principal international organization for rules 
governing world-wide international trade, it has the potential to 
address a range of global trade issues of concern to small businesses 
in the U.S. In addition, it stands to reason that better coordination 
is needed between small business support and advocacy agencies around 
the world and small firms and trade associations.

[[Page S3541]]

  My bill requires the USTR to pursue the establishment of a small 
business advocate at the WTO in order to safeguard the interests of 
small firms and represent those interests in trade negotiations and 
disputes. It also directs the USTR to submit a report to Congress on 
the steps taken to establish this advocate.
  I hope this legislation will provide a foundation for small 
businesses during the next round of WTO negotiations. I look forward to 
working with the Senate Small Business Committee and the Senate Finance 
Committee as we work to ensure that U.S. businesses enjoy the full 
benefits of international trade.
                                 ______