[Congressional Record Volume 147, Number 166 (Tuesday, December 4, 2001)]
[Extensions of Remarks]
[Pages E2198-E2199]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                            TRADE PROMOTION

                                 ______
                                 

                         HON. MICHAEL G. OXLEY

                                of ohio

                    in the house of representatives

                       Tuesday, December 4, 2001

  Mr. OXLEY. Mr. Speaker, this week, the House is scheduled to vote on 
Trade Promotion Authority legislation. Granting the President this 
authority once again is one of the most important actions that we can 
take to strengthen the U.S. economy and promote global prosperity. The 
attack on the World Trade Center was a symbolic assault on the free and 
open capital markets that underpin development throughout the world. By 
approving TPA, we can reaffirm our commitment to a free and open 
international global economy that will lift living standards across the 
world. I commend to your attention this Wall Street Journal article of 
November 29 by the Chairman and Chief Executive Officer of Goldman 
Sachs, Henry Paulson, Jr., entitled ``Congress Should Put Trade on the 
Fast Track.''


[[Page E2199]]



              Congress Should Put Trade on the Fast Track

                       (By Henry M. Paulson, Jr.)

       The House of Representatives will soon vote on the question 
     of granting the president Trade Promotion Authority, also 
     known as fast-track approval. Some in Congress have argued 
     that now is not the time to take up legislation that has 
     encountered such fierce protectionist opposition in recent 
     years. But in the wake of the terrorist attacks of Sept. 11 
     and the current economic slowdown, it is all the more 
     important that Congress move quickly to approve this vital 
     measure.
       This bipartisan action would inspire confidence in global 
     capital markets. It would allow America to be seen as 
     continuing to lead the open trade and globalization that has 
     been so vital to the prosperity of both developed and 
     developing countries. And it would send a powerful message 
     that the president and Congress speak with one voice, and are 
     committed to advancing freer trade as part of the war on 
     terror. Indeed, approval of TPA would signal that the U.S. is 
     not only seeking a military coalition, but an economic one.
       The benefits of trade hardly need illuminating. America's 
     exports accounted for approximately one-third of our 
     extraordinary economic growth over the past decade, and 
     exports now support over 12 million American jobs (nearly 
     three million more than a decade ago). Jobs supported by 
     exports typically pay 13% to 18% more than comparable 
     employment.
       Trade brings real economic benefits to the U.S. The North 
     American Free Trade Agreement, and the completion of the 
     previous round of trade negotiations (the Uruguay Round), now 
     generate annual income gains of $1,300 to $2,000 for the 
     average American family of four. Trade is also fundamental to 
     economic growth in the developing world. A recent World Bank 
     study shows that nations open to trade grow 3.5 times faster 
     than nations closed to trade. The recent experience of 
     countries such as South Korea, China and Chile underscore 
     that trade is a pathway to prosperity.
       Trade is a two-way street, and imports also benefit the 
     U.S. They provide consumers with more choices and lower 
     prices on a wide variety of goods. Imports also force our 
     industries to constantly improve and innovate in order to 
     remain competitive with foreign exporters.
       I confess to being a bit mystified by all of the 
     controversy about extending such a common-sense power to the 
     president. TPA simply says that when the executive branch 
     completes negotiations on a trade agreement and submits it to 
     Congress for approval, that Congress cannot amend the 
     agreement. It must simply vote yes or no.
       This is standard procedure in other types of negotiations. 
     Union negotiators don't reach agreements with management and 
     then allow all their members to amend and debate. And as I 
     know from 27 years in investment banking, mergers and 
     acquisitions would never be consummated if, once negotiated, 
     rather than being sent to a corporate board of directors for 
     approval, they were sent to be restructured.
       The most obvious aspect of the war on terror is clearly 
     military action. But we can't forget the economic component, 
     and primarily the gains we reap from globalization. Let's not 
     forget that it continues to be those countries most closed to 
     trade that are prime breeding grounds for terrorists. 
     Moreover, to truly wage and win this war, our political unity 
     and military power must be fortified by the strength of our 
     economies.
       Those economies are increasingly at risk. Global prosperity 
     is threatened not only by the specter of terrorism itself, 
     but by the slump that was deepending before the Sept. 11. 
     Worse, it is during periods of economic distress that 
     pressure to revert to economic nationalism and protectionism 
     are the greatest. This is a recipe for disaster, and it must 
     be resisted through bold and decisive action.
       The two necessary actions are clear; a fiscal, consumer-
     oriented stimulus package and TPA. Congress is well on its 
     way to passing a stimulus package, and should take care to 
     keep it directed at consumers. Although trade won't provide 
     the sort of immediate boost to the economy that a stimulus 
     package will, trade will have greater long-term impact.
       While each of the previous five presidents has been granted 
     this authority, it lapsed in 1994. During the seven years the 
     U.S. has been without this trade authority, other countries 
     have moved ahead without us. Since 1990, the European Union 
     completed negotiations on 20 free trade agreements, and is 
     currently negotiating 15 more. Mexico now has eight 
     agreements with 32 countries. Today out of 130 preferential 
     trade agreements and investment agreements in the world, the 
     U.S. is a party to only three.
       This means our exporters encounter higher tariffs--if not 
     closed markets--in other countries. Our own consumers face 
     higher prices and fewer choices. And the U.S. sits on the 
     sidelines as the rules of the game are set on everything from 
     e-commerce to agriculture.
       Passing TPA is the first, all-important step to restoring 
     U.S. leadership. It will allow us to move quickly on several 
     fronts. We can complete negotiations for free trade 
     agreements with Chile and Singapore, build vital support for 
     the proposed Free Trade Area of the Americas and, most 
     important, lead a drive for a new round of global trade 
     negotiations.
       The stakes are enormous and there has never been a time in 
     our recent history when American leadership has been needed 
     more. TPA can be a key part of that leadership, building 
     confidence in the global marketplace by clearly signaling 
     that the process of globalization will continue with renewed 
     vigor. It will enhance our economic position in the world and 
     strengthen our national security. The time for Congress to 
     act is now.

     

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