[Congressional Record Volume 147, Number 59 (Thursday, May 3, 2001)]
[Senate]
[Pages S4237-S4238]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    U.S.-JORDAN FREE TRADE AGREEMENT

  Mr. BAUCUS. Mr. President, I rise today in the Senate to offer a way 
out of the stalemate we have on trade policy.

[[Page S4238]]

  The trade agenda facing our nation is a long and important one: 
Approval of the U.S.-Jordan Free Trade Agreement and the U.S.-Vietnam 
Bilateral Trade Agreement; renewal of the Generalized System of 
Preferences and the Andean Trade Preferences Act; a fully revised and 
improved Trade Adjustment Assistance program; completion of 
negotiations on bilateral free trade agreements with Chile and 
Singapore; active negotiations on the Free Trade Area of the Americas.
  But, despite a strong feeling in the Congress that we need to 
continue the aggressive pursuit of trade liberalization and market 
opening around the world, we have made no progress at all this year. 
There are several hold-ups.
  First, we need to determine how to deal with the issues of trade-
related environmental standards and internationally recognized core 
labor principles in trade agreements. Second, we need to reach 
agreement on America's trade priorities and our trade negotiating 
objectives. And, third, we have to determine how we will deal with the 
numerous elements of the trade agenda.
  The key to breaking loose this logjam and allowing us to start to 
build a consensus on trade lies with the U.S.-Jordan Free Trade 
Agreement. This was negotiated during the Clinton Administration, 
although it was completed too late to secure Congressional action last 
year. This agreement has wide support in the Congress, in the 
Administration, and throughout the country. I am confident that, once 
formally endorsed by the Administration, it will sail through easily. 
Yet the delay in approval continues because it has been linked to the 
rest of the trade agenda and the unresolved issues I mentioned a moment 
ago.
  We need to delink Jordan from the rest of our trade agenda. It is a 
good, solid trade agreement. Jordan is a key partner of the United 
States in the search for peace in the Middle East. This agreement will 
strengthen our relationship with Jordan, demonstrate how important we 
considered King Hussein, and now consider King Abdullah, in the peace 
process, and complete the set of free trade agreements that already 
apply to Israel and the Palestinian Authority.
  Majority Leader Lott summarized this eloquently when he wrote to 
President Bush:

       Jordan has been a reliable partner of the United States and 
     has played an important role in America's efforts to achieve 
     a lasting peace in the Middle East. The United States-Jordan 
     Free Trade Agreement is an important and timely symbol of 
     this critical relationship.

  This agreement serves America's vital national interest.
  The Jordan FTA contains provisions in which both our countries agree 
not to relax environmental or labor standards in order to enhance 
competitiveness. For the first time, these provisions are in the main 
body of the agreement. Although there has been some controversy about 
that, I think the issue has been put to rest, especially after King 
Abdullah explained to us during his recent visit about how difficult it 
would be to open up the text of the agreement.
  The controversy over the Jordan FTA now centers around one phrase: If 
there is no resolution at the end of the dispute settlement process, 
``the affected Party shall be entitled to take any appropriate and 
commensurate measure.'' This includes trade sanctions, and therein lies 
the problem. Many Democrats welcome this because it puts enforcement of 
trade-related labor and environmental commitments on a par with other 
trade commitments. Many Republicans object because they believe trade 
sanctions should not be used in the case of labor or environmental 
disputes.
  So, let me make my proposal.
  The ``appropriate and commensurate'' phrase is flexible enough to 
encompass a variety of measures, including trade sanctions, fines, cuts 
in aid programs, and a variety of other options. Let's move ahead with 
the Jordan FTA as negotiated. We Democrats will note that the Jordan 
FTA is a breakthrough in how it addresses labor and environment. We 
will also note that ``appropriate and commensurate measure'' includes 
trade sanctions, without requiring them. After all, in our trade 
negotiations throughout the world, sanctions, of any kind, are the very 
last resort, and we work hard to avoid their imposition. And remember 
that trade sanctions in the context of the Jordan FTA simply means 
removing some of the concessions we make in the agreement itself.
  Across the aisle, Republicans can also correctly note that 
``appropriate and commensurate measure'' does not require trade 
sanctions in the case of a dispute over trade-related labor or 
environmental issues. The President will decide what is an 
``appropriate and commensurate measure.''
  In other words, we will agree to take enforcement measures 
appropriate to the circumstances. This is not the best outcome, but it 
is a way to get past the current paralysis in trade policy. It would 
allow us to move forward on an agreement of strategic importance to the 
United States. It would demonstrate flexible and creative thinking on 
both sides. It would move us to work toward a compromise that can 
garner broad bipartisan support.
  And, let's be honest with ourselves. Given the very small volume of 
trade with Jordan, the very large strategic significance of our 
relationship with Jordan, and the importance Jordanians place on this 
free trade agreement, it is highly unlikely that any Administration, 
Democrat or Republican, present or future, will be forced to impose 
trade sanctions on Jordan. Disputes are likely to be settled amicably, 
as they have been with Israel which has a similar free trade agreement 
with the United States.
  Several weeks ago, I introduced legislation to implement the U.S.-
Jordan Free Trade Agreement. The bill is a simple one. It merely gives 
the President authority to reduce tariffs with Jordan, outlines rules-
of-origin requirements, deals with safeguards provisions, and eases 
non-immigrant visa requirements for Jordanian business people. It does 
not even mention ``appropriate and commensurate measures.'' U.S. law 
would not be changed at all by this phrase.
  Let's pass this bill. Let's create the U.S.-Jordan free trade area. 
And let's get on with the business of working together to develop a 
consensus on how we move forward on a lengthy and important national 
trade agenda.

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