[Congressional Record Volume 148, Number 26 (Monday, March 11, 2002)]
[Senate]
[Page S1733]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LUGAR:
  S. 2005. A bill to authorize the negotiation of free trade agreement 
with the Republic of the Philippines, and to provide for expedited 
congressional consideration of such an agreement; to the Committee on 
Finance.
  Mr. LUGAR. Madam President, I rise today to introduce the Philippine 
Free Trade Act of 2002.
  My bill provides President Bush with the authority to engage the 
Republic of the Philippines in negotiations on a free-trade agreement, 
and if an accord is forthcoming, to have it considered by Congress 
under ``fast-track'' conditions.
  The political and economic histories of the United States and the 
Philippines have long been intertwined. Immediately following the end 
of World War II, with the help and protection of the United States, the 
Philippine economy soared. In the mid-1980's when the circumstances 
surrounding the Marcos regime threatened to destabilize the country and 
subvert democracy in his election campaign against Corazon Aquino, the 
United States once again provided strong support. I was a member of a 
delegation of American election observers who voiced strong concerns 
over the conduct of the election and provided support for the rightful 
winner, Mrs. Aquino. Ultimately she was awarded the presidency and her 
administration brought greater civil liberties and freedom to the 
Philippine people and an even stronger relationship with the United 
States.
  A free trade agreement with the Republic of the Philippines would 
hold special economic significance for the United States. United States 
exports to the Philippines totaled more than $22.7 billion in the year 
2000. The Philippines ranks as the 19th largest export market for 
American goods. The United States is the largest foreign investor in 
the Philippines with some $3 billion in investments and 24 percent of 
the foreign direct investment stock as of the end of the year 2000. 
Both nations would benefit greatly from the elimination of tariffs and 
increased economic transparency that would come with a free-trade 
agreement.
  The Philippine economy has enjoyed a mixed history of growth and 
development since the end of World War II. Growth immediately after the 
war was rapid, but slowed over time. The Philippines went from being 
one of the wealthiest nations in Asia to one of the poorest. Broad 
economic reforms designed to spur business growth and foreign 
investment met with success through most of the early and mid-1990s. 
Under the leadership of President Ramos the Philippines secured 
ratification of the Uruguay Round agreement and membership in the World 
Trade Organization.
  The Philippines was not as severely affected by the Asian financial 
crisis as most of its neighbors but it continue to face economic 
challenges. Exports continue to grow but at slower rates. Despite 
continued slow growth, long-term prospects remain promising. The pace 
of economic reform is expected to accelerate under President Gloria 
Macapagal-Arroyo's leadership. Specifically, it is hoped that progress 
in electronic commerce, banking reform, and securities regulation will 
improve the investment and business climate.
  President Arroyo was the first foreign head of state to pledge her 
country's strong support for the United States in the aftermath of 
September 11. The Philippines, she said, is prepared to ``go every step 
of the way'' with the United States. The U.S. was provided with the use 
of Filipino ports and airfields to support military operations in 
Afghanistan. President Arroyo defined Philippine national interests by 
linking the struggle against international terrorism with the struggle 
against the Abu Sayyaf within the Philippines.
  The Philippines has proven to be a strong and steadfast ally in the 
war on terrorism. I am pleased that American and Filipino troops are 
working side by side to eliminate the threat posed terrorists linked to 
al Quaeda.
  I believe a free-trade agreement with the Philippines would make 
significant contributions to the economies of both countries and 
strengthen our diplomatic and security relationships. It will ensure 
the continuance of open dialogue, peace of mind, and security between 
our two nations.
  It is my hope that the United States and the Philippines will soon 
begin the process of constructing a free-trade agreement. There is much 
work to do and success will not come easily or quickly. But I believe 
increased free trade is the next step in this close and vitally 
important relationship.

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