[Congressional Record Volume 151, Number 8 (Tuesday, February 1, 2005)]
[Senate]
[Pages S735-S737]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               TRADE MISSION TO NEW ZEALAND AND AUSTRALIA

  Mr. BAUCUS. Mr. President, I rise to share some observations on my 
recent

[[Page S736]]

trade mission to Australia and New Zealand.
  In May 2004, the United States and Australia signed a historic free-
trade agreement. That agreement went into force on January 1, 2005, 
lowering trade barriers and opening new markets for goods, services, 
and agriculture.
  This agreement opens the door to a greater relationship with one of 
the most vibrant and promising economies in the world.
  For Australia, it offers integration with the world's largest 
economic power. For the United States, it offers a link to an 
Australian market that has one of the highest standards of living in 
the world--and one of the few large economies with whom the U.S. enjoys 
a trade surplus.
  Further benefits will accrue to U.S. exporters from using Australia 
as a platform for more efficient access to Asian markets.
  Australia has for years pursued a strong policy of economic 
engagement in the Asia-Pacific region. It has completed, or is 
currently negotiating, trade agreements with several key countries in 
the region. This network of trade relationships will increase the value 
of the free trade agreement to U.S. exporters and investors in 
Australia.
  The free-trade agreement further cements the relationship between the 
United States and one of its strongest allies in the world. Australia 
is a major partner with the U.S. in global antiterrorism efforts. It is 
a significant partner in Iraq.
  It is also one of our most important partners within the WTO. As a 
leader of the Cairns Group, a loose association of major agriculture 
exporting countries, Australia has been a reliable ally in our fight 
for reform of global agriculture markets.
  I believe in economic engagement and in trade. Reducing barriers and 
opening markets creates opportunities and jobs. It helps spread the 
values of democracy and international cooperation.
  But the benefits of trade do not come without challenges. In the case 
of Australia, it is our agriculture sector that was initially concerned 
about the challenges a free trade agreement might pose. This is 
particularly true in Montana, where agriculture makes up about one half 
of the State's economy.
  That is why I worked hard to make sure the United States-Australia 
Free-Trade Agreement was a good deal for the United States and a good 
deal for Montana. By working with negotiators from both Governments, I 
was able to include strong provisions that leveled the playing field 
for Montana's agriculture industry in the deal, while also assuring 
Montana's businesses access to tremendous new market opportunities.
  With a strong deal in place, it was a good time to see for myself 
what new opportunities are available in Australia and to start making 
the free-trade agreement work for Montana.
  Joining me were a group of nine Montana business and agriculture 
leaders--representing the full range of our State's economy, including 
manufacturing, agriculture, tourism, and services. They were: Montana 
Chamber of Commerce president Webb Brown, from Helena; Greg Dumontier 
of St. Ignatius, general manager of S & K Technologies; David Cameron 
of Bozeman, a rancher and retired biologist with Montana State 
University; Steve Holland, director of the Montana Manufacturing 
Extension Center in Bozeman; Fraser McLeay, senior manager with the 
Montana World Trade Center in Missoula; Lillian Ostendorf of 
Powderville, State Women's Committee chair with the Montana Farm 
Bureau; Mike Overstreet of Billings, chairman of the board and vice 
president of international relations for Corporate Air; Jeff Ruffner of 
Butte, senior vice president and general manager with MSE Technology 
Applications; and Kathy Brown, property manager with Project Management 
in Helena.
  Also joining the delegation were several representatives of some of 
our largest national companies with operations in Australia and the 
Asia-Pacific region. They were: David Beier, senior vice president for 
global government affairs for Amgen, Inc.; Lionel Johnson, vice 
president and director, International Government Affairs, for 
Citigroup, Inc.; Thomas Quinn, partner with the law firm Venable, 
representing U.S. Tobacco; and Elizabeth Schwartz, vice president for 
legislative affairs for the Boeing Company.
  The goal of our trade delegation was to meet with business and 
government leaders, build relationships, find opportunities, and 
discuss solutions to common challenges. We met with great success.
  A highlight of the visit was a meeting of the entire delegation with 
Australian Prime Minister John Howard at Parliament House in Canberra.
  I was very pleased to have the opportunity to personally thank Prime 
Minister Howard for working with me to address Montana's interests in 
the free-trade agreement. We also explored ways Australia and the 
United States can work together to advance our mutual interests in the 
World Trade Organization, the Asia-Pacific Economic Forum, and the 
Asia-Pacific region.
  In Sydney, members of the delegation were able to benefit from the 
experience of AmCham members doing business in Australia and of the 
U.S. Commercial Service. Many participated in individual business 
meetings with counterparts or potential customers in Sydney, Melbourne, 
and Brisbane.
  Our thanks go out to the U.S. Embassy and Consulate staffs in 
Canberra, Sydney, and Melbourne for all their hard work making this 
such a productive and meaningful trip for me and for each member of the 
delegation. I particularly want to thank U.S. Ambassador to Australia 
J. Thomas Schieffer for his hospitality and assistance.
  I also thank Australian Ambassador to the United States Michael 
Thawley and his staff in Washington for all their help in making the 
trip such a success.
  During the negotiations of the United States-Australia Free-Trade 
Agreement, Ambassador Thawley and Adam McCarthy from his staff made 
several trips to Montana. They met with our state officials, business 
and agriculture groups, and were able to contribute to their own 
negotiators' sensitivity to Montana's goals in the negotiations. The 
results were, I believe, in the best interests of both Montana and 
Australia.
  I am excited about future prospects for trade and cooperation with 
Australia. Australia is a large market for American manufactured goods 
and services and promises to become an even larger one. For example, 
Australia is fast becoming a major market for Montana's growing high 
tech and services industries, including medial products, environmental 
consulting, and engineering.
  In addition, from Montana's perspective, one of the most important 
aspects of the new trade agreement goes beyond its market access 
provisions: it is Australia's commitment to support the United States 
in its efforts to negotiate disciplines on state trading enterprises in 
the WTO Doha Round.
  State trading enterprises like the Canadian Wheat Board and the 
Australian Wheat Board give agricultural producers in those countries 
unfair advantages when competing with our world class Montana 
agricultural products in global markets.
  I also used the visit as an opportunity to promote cooperation 
between Australia and the United States on a broader range of 
multilateral and regional trade and economic issues.
  Australia and the United States have a mutual interest in promoting a 
broad vision of Asia-Pacific economic integration. We are both Pacific 
powers, but not Asian.
  If we neglect our ties with Asia, we risk a narrow Asian economic 
integration that deprives our businesses of the most preferential 
access to these growing markets. I challenged the Government and the 
private sector in Australia to be our partners in broadening that 
vision.
  Our trade efforts also led us to New Zealand. While not as big a 
country as Australia, New Zealand is an important trading partner for 
the United States. In 2003, merchandise trade between the two countries 
exceeded $4 billion. There was an additional $2 billion in trade in the 
service sector.
  Exports of Montana products to New Zealand increased more than 
sevenfold over the last 5 years. Equally important to Montana, New 
Zealand kept a cool head and did not overreact to the recent BSE scare 
with a ban on U.S. beef--a major product in my State and critical to 
our economy.
  More importantly, New Zealand is a vital piece in the Asian puzzle. 
Just as

[[Page S737]]

with our relationship with Australia, an enhanced commercial 
relationship between the United States and New Zealand would offer yet 
another platform for increased exports to the growing markets in places 
like China, Thailand, Taiwan, and Malaysia.
  That is why I have long been an advocate for closer economic ties 
between our countries. In fact, back in 2001, I introduced legislation 
to authorize fast-track consideration of a free-trade agreement with 
New Zealand.
  The New Zealand Government has been actively pursuing a free-trade 
agreement with the United States for several years. Up until recently, 
they have been rebuffed by the Bush Administration for reasons having 
nothing to do with the potential economic merits of such an agreement.
  I disagree with that approach. I believe that trade agreements should 
be pursued or not pursued primarily on the basis of their economic 
merit.
  I thought it was time to allow the Government of New Zealand to make 
its case. And so I brought my trade delegation to New Zealand to meet 
with Government officials and business representatives, to explore 
market opportunities, and to build new relationships.
  As in Australia, a highlight of the visit was my meeting with New 
Zealand Prime Minister Helen Clark. Prime Minister Clark and I 
discussed prospects for a bilateral free-trade agreement and also 
exchanged views on how the United States and New Zealand can cooperate 
on regional and multilateral trade issues.
  I told the Prime Minister that I think a free-trade agreement between 
the United States and New Zealand makes sense--so long as it is the 
right agreement. And the Australia Free-Trade Agreement--with its 
strong protections for Montana agriculture--is the right model to 
follow.
  Australia and New Zealand share a common market. For that reason, it 
would have made sense to include New Zealand in the United States-
Australia Free-Trade Agreement in the first place.
  The Administration settled for 80 percent of the Australia-New 
Zealand market, when it could have had 100 percent. But that is in the 
past, and Prime Minister Clark and I agreed that we need to look 
forward.
  During my visit, I was also privileged to meet, along with members of 
my delegation, with New Zealand's Minister of Agriculture and Trade 
Negotiations Jim Sutton and Minister of Foreign Affairs and Trade Phil 
Goff. I appreciate the useful and wide-ranging discussions that we 
shared.
  In New Zealand, the trade delegation was able to visit several 
cutting-edge agricultural facilities, including a revolutionary robotic 
milking station, an advanced agricultural research station, and an 
agricultural technology incubator. Many of the Montanans who 
participated in the trip have gone home with new ideas that will help 
them both emulate and compete with their New Zealand counterparts.
  My sincere thanks go out to our hosts, the Government of New Zealand, 
for their great hospitality. I also thank the U.S. Embassy and 
Consulate staffs in Wellington and Auckland for all their hard work 
putting together a fantastic schedule for a whirlwind 2-day visit. I 
particularly want to thank U.S. Ambassador to New Zealand Charles 
Swindells for his advice and assistance.
  Finally, I thank New Zealand Ambassador to the United States John 
Wood as well as Ian Hill and Janette Malcolm from the New Zealand 
Embassy in Washington for all their help in making the trip such a 
success.
  After all the government meetings, tours of agricultural facilities, 
and discussions with business groups, I came away believing that the 
right free-trade agreement with New Zealand makes sense for the United 
States and makes sense for Montana.
  Like Australia, New Zealand is a strong market for American 
manufactured goods and services. Like Australia, New Zealand can serve 
as a launching pad for reaching Asian markets. And New Zealand is a 
developed country with a strong legal system, which sets the stage for 
a high-standards agreement.
  You may not guess this, but from Montana's standpoint, New Zealand is 
a more important market, relatively speaking, than it is for the United 
States as a whole. While New Zealand is the United States' 49th largest 
trading partner, it is one of Montana's top 25 export markets--not far 
behind Malaysia, and more important than Thailand or the Philippines.
  That doesn't mean it would be easy. I know that negotiating a free-
trade agreement with New Zealand would raise sensitive issues for 
Montana's farmers and ranchers, several of whom joined me on the trip. 
But I also know that facing difficult trade issues pays off in the end.
  That is because--in the end--trade means jobs.
  There are tremendous opportunities in the Australia and New Zealand 
markets awaiting those Americans intrepid enough to seek them out. 
Increased trade will generate jobs and good-paying ones at that.
  I want Montana to participate in and benefit from an enhanced trading 
relationship with these countries.
  Yet, in a more general sense, these enhanced relationships are about 
openness.
  While historians like to talk about the past 100 years as the 
``American Century,'' Americans are anxious about the challenges facing 
our country. We wonder whether our children and grandchildren will 
enjoy the same standard of living we have known.
  Faced with this uncertainty, some Americans look at the Pacific Rim 
and see danger. They see the rise of China's and Asia's economic 
prowess as a threat to American prosperity.
  But we have never been a nation that succeeds only by the economic 
failure of others.
  We used the Marshall Plan to help pull Europe out of economic 
distress--and have benefited enormously. We believed that capitalism 
would win the Cold War--and it did.
  Now China, Vietnam, Russia, and others are beginning the transition 
to a free market economy. This is a positive development--not one to 
fear.
  To me, the challenge is elementally about whether we will meet the 
future with open minds and open arms, or whether we will turn inward 
and seek shelter from the inevitable storms that change always brings.
  America has never shied away from engagement with the rest of the 
world. We have been successful because we are confident, innovative, 
positive, and open. We can only lose our place in the world if we 
forget who we are and forget how we got here in the first place.
  That is why I will continue to work for an open trade policy. It is 
why I will continue to fight hard for Montana's place in the world.
  It is also why I think it is so important to take these trade 
missions abroad. In the past couple of years, I have led missions to 
Cuba, Japan, China, and Thailand. This time, we went to Australia and 
New Zealand.
  Every trip has brought success. Each trip has opened doors for 
Montana business. And discovering the potential in any market or 
relationship ultimately is what makes trade work for Montana, as well 
as for the United States.

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