[Congressional Record Volume 150, Number 51 (Tuesday, April 20, 2004)]
[Extensions of Remarks]
[Pages E550-E551]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   INTRODUCTION OF THE AMERICAN WORKERS AND MANUFACTURERS SUPPORT ACT

                                 ______
                                 

                          HON. JOHN B. LARSON

                             of connecticut

                    in the house of representatives

                        Tuesday, April 20, 2004

  Mr. LARSON of Connecticut. Mr. Speaker, many of my colleagues and I 
have been watching with great interest the nightly news report on Lou 
Dobbs Tonight entitled ``Exporting America.'' The series has 
highlighted the disturbing trend of good paying American jobs that are 
being sent overseas. In the past three years, more than 2.8 million 
Americans employed in manufacturing have lost their jobs. Because each 
manufacturing job supports two non-manufacturing positions; that means 
at least 8.4 million people have been affected, directly or indirectly, 
because of the loss of American manufacturing to overseas companies. 
Despite these job losses, over 16 million Americans are still employed 
in the manufacturing sector. Additionally, manufacturing contributes 
roughly 17 percent of our nation's gross domestic product, provides 71 
percent of our exports, and funds 67 percent of our nation's research 
and development investment. As these numbers indicate, manufacturing is 
the backbone of our economy and action must be taken to protect and 
create jobs here at home and stem the tide of American manufacturing 
jobs moving overseas.
  Current free trade policies have enticed many large corporations and 
retailers to take

[[Page E551]]

advantage of cheap foreign-made goods. I was dismayed when the Chairman 
of the President's Council of Economic Advisors, only months ago, 
stated that companies outsourcing American jobs overseas is a ``good 
thing.'' While these policies can lead to a temporary boost for a 
sector of the economy, most notably in the retail sector, in the long 
run their implications can be detrimental to American workers. I doubt 
that any Americans who are out of work because their job went overseas 
believe that outsourcing is a good thing. We must protect the jobs we 
have and create others to fill the void left by the jobs that have been 
lost.
  An even more dangerous result of these policies is the threat to our 
national security when vital defense-related products are made in 
foreign countries. The ever shifting geopolitical landscape could leave 
the source of critical components of our defense systems in the hands 
of a nation unsympathetic to the United States. Manufacturers are also 
major customers of information and communications technology. Many 
electronics components are now manufactured only outside the United 
States. For example, the wire industry is nearly nonexistent. If our 
manufacturing base continues to erode, the effects will be devastating, 
not only in terms of individual job losses, but also in terms of the 
ripple effects that will be felt throughout our economy and our 
national security.
  In response to this disturbing trend, I worked with business and 
labor leaders to craft the American Workers and Manufacturers Support 
Act. This legislation is an eight-point plan which lays out pragmatic 
steps designed to secure our manufacturing economic base, protect jobs, 
and help grow the manufacturing sector here at home.
  First, we must end the threat to our national security by 
strengthening the Buy American Act to ensure that the federal 
government supports domestic companies and domestic workers by buying 
American-made goods. The bill would strengthen the existing Act by 
applying its provisions to the new Department of Homeland Security and 
by tightening existing waivers. It would also require that information 
be provided to Congress and to the American people about how often the 
provisions of this Act are waived by Federal departments and agencies.

  Second, we must enforce existing trade agreements. This bill 
establishes a Congressional Trade Office to provide Congress with 
independent, nonpartisan, neutral trade expertise and monitor 
compliance with major, bilateral, regional, and multilateral trade 
agreements. The Office will also observe and evaluate dispute 
settlement deliberations and selected trade negotiations.
  Third, we must stop the manipulation of currency exchange rates. 
Several nations have for years intervened aggressively in currency 
markets to maintain their national currencies at artificially low 
values relative to the U.S. dollar. The result is the gradual decline 
of manufacturing in the U.S. and job losses in manufacturing. This bill 
would give a ninety day deadline for the Administration to negotiate an 
end to the currency devaluation by countries such as China that 
severely undervalue their currency. If these bilateral negotiations 
fail, the legislation requires the President to utilize powers he 
already possesses under U.S. and international law to file legal action 
to halt these practices and recover damages for U.S. manufacturers.
  Fourth, we must enable American consumers to make informed choices 
about purchasing American made goods. This bill charges the Department 
of Commerce with studying the feasibility and impact with regards to 
costs to manufacturers and consumers of enacting laws requiring all 
products retailing at more than $15 to state clearly on the labels the 
percentage of components made in the United States.
  Fifth, we must invest American dollars in America. This bill brings 
the U.S. into compliance with World Trade Organization regulations and 
protects U.S. manufacturing jobs. It repeals the Foreign Sales 
Corporation/Extraterritorial Income (FSC/ETI) tax provisions that 
provide a partial tax exemption for U.S. exports. These provisions have 
caused the European Union to threaten retaliatory tariffs because the 
WTO has ruled that these tax exemptions are prohibited export 
subsidies. The bill also provides transitional relief to companies 
currently receiving the FSC/ETI benefit, and provides permanent tax 
relief to make U.S. companies more competitive in the global market, 
resulting in an increase in U.S. manufacturing and U.S. manufacturing 
jobs.
  Sixth, we need to stop pitting big American manufacturers against 
small ones. Large manufacturers and retailers know that smaller 
companies have difficulty competing within the current trade structure, 
and sometimes they use questionable tactics in trying to obtain 
favorable prices. One such practice is to place a large contract order 
to get a favorable price then to cancel the contract after only a 
portion of the goods are provided. This bill charges the Secretary of 
Commerce with setting up an investigative unit to look into these 
practices, establishing guidelines to address abuses and a unit to 
allow small manufacturers to confidentially report their complaints.
  Seventh, we must ensure the flow of qualified manufacturing workers. 
This bill includes preparation of students for manufacturing jobs under 
the Advanced Technological Education Program and increases funding for 
the program. Additionally, it provides funding for the Manufacturing 
Skills Standards Council, which sets performance standards to certify 
job skills for manufacturing workers.
  Finally, the eighth step is to support America's small manufacturers. 
This bill creates a new Undersecretary within the Department of 
Commerce to oversee the new Manufacturing and Technology Administration 
created by the bill. This office would be tasked with supervising the 
National Institutes of Standards and Technology; National Technical 
Information Service; and a new policy analysis office named Office of 
Manufacturing and Technology Policy. Additionally it would conduct 
manufacturing and technology policy analysis to improve United States 
industrial productivity, manufacturing capabilities, and innovation. It 
would also be tasked with identifying manufacturing and technology 
needs, problems and opportunities within and across industrial sectors. 
It would propose and support studies and policy experiments, in 
cooperation with other federal agencies, to determine the effectiveness 
of measures for improving United States manufacturing capabilities and 
productivity. Finally, it would encourage and assist the creation of 
centers and other joint initiatives by State or local governments, 
regional organizations, private businesses, institutions of higher 
education, nonprofit organizations, Federal laboratories to encourage 
technology transfer, to encourage innovation, and to promote an 
appropriate climate for investment in technology-related industries.
  If our manufacturing base continues to erode, the effects of 
individual job losses on our economy and national security will be 
devastating. In conclusion, I urge my colleagues to join me in 
supporting this legislation.

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