[Congressional Record Volume 151, Number 45 (Friday, April 15, 2005)]
[Senate]
[Pages S3748-S3749]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. STABENOW (for herself, Mr. Graham, and Mr. Bayh):
  S. 817. A bill to amend the Trade Act of 1974 to create a Special 
Trade Prosecutor to ensure compliance with trade agreements, and for 
other purposes; to the Committee on Finance.
  Ms. STABENOW. Mr. President, I rise to introduce a bill on behalf of 
myself and Senators Graham and Bayh.
  This bill would create an ambassador-level position within the office 
of the U.S. Trade Representative entitled: Special Trade Prosecutor. 
This individual would be appointed by the President and confirmed by 
the Senate, with the authority to ensure compliance with trade 
agreements to protect our manufacturers against unfair trade practices.
  In practical terms, this prosecutor will have the authority to 
investigate and recommend prosecuting cases before the World Trade 
Organization and under trade agreements to which the United States is a 
party.
  Why this bill? At this time?
  We have an Executive Branch that is organized in such a way as to 
make prosecution of unfair trade cases unlikely at best. When you 
couple this with the fact that our government has sat idle as our 
domestic manufacturing base has eroded due to unfair trade practices, 
it becomes very clear that we have put our manufacturers in an 
impossible situation.
  Under the current structure of the office of the U.S. Trade 
Representative, we are asking our Trade Representative to do too much. 
Quite simply, the office is not able to deliver.
  The current structure demands that they negotiate trade agreements 
with foreign nations and simultaneously enforce other agreements with 
those same countries--all without damaging the U.S.'s ability to 
negotiate the next trade deal.
  It's not working. And, while significant portions of our trade 
imbalances are not caused by lax enforcement, much of it is.
  In February, the Department of Commerce reported that the merchandise 
trade deficit reached a record level of $666.2 billion in the 2004, a 
21.7 percent increase since 2003.
  If we can address any portion of this deficit we must do it. This 
bill represents a straight-forward, common-sense solution.
  There are many U.S. industries facing unfair trade practices and this 
bill represents an institutional change that will allow the U.S. to 
thoroughly and vigorously investigate and prosecute these cases.
  For instance, China is a textbook case of how a foreign government 
has used a network of illegal subsidies and government interventions in 
order to destroy foreign competition, both in the United States as well 
as in many other countries.
  According to the U.S. China Economic and Security Commission, these 
actions have gone virtually unchallenged by the U.S. government, 
despite the fact that China's actions are in clear violations of both 
U.S. trade law and WTO rules.
  These ``anti-competitive actions by China's government include 
currency manipulation (estimated to provide as much as a 40 percent 
subsidy for Chinese exporters), illegal direct government subsidies of 
its money losing state-owned textile and apparel sectors, illegal 
export tax rebates (13 percent) and the deliberate extension of

[[Page S3749]]

billions of dollars in non-performing (``free money'') loans by China's 
central banks in order to award a competitive advantage against foreign 
competition.''
  The Commission goes on to say that ``in the case of China, the 
dramatic increase in subsidies has caused Chinese prices to drop by an 
average of 58 percent over the past two years in those product areas 
where quotas have been removed. As a result, China has gained a near 
monopoly share in these products over the last 24 months, taking 60 
percent of the market.''
  However, the U.S. government has failed to file any complaints at the 
WTO, despite the Chinese government's repeated and widespread 
violations of WTO rules.
  Our government's inaction is costing us millions of American jobs, 
crippling our manufacturing sector, distorting trade and investment 
patterns globally, and leaving hundreds of millions of Chinese workers 
vulnerable and mistreated.
  Let me give you a concrete example of the violations that are 
occurring.
  Counterfeit automotive products are a big problem in my home State of 
Michigan. Not only does it kill American jobs, but it has the potential 
to kill Americans as cheap shoddy automotive products replace 
legitimate ones of higher-quality.
  The American automotive parts and components industry looses an 
estimated $12 billion in sales on a global basis to counterfeiting.
  And, we don't even keep statistics on the potential loss of life.
  As many have said, we should understand that, if left unchecked, 
penetration by counterfeit automotive products, as well as other 
manufactured goods, has the potential to undermine the public's 
confidence and trust in what they are buying. We can't let that happen.
  In Michigan, we lost 51,000 manufacturing jobs between 1989 and 2003 
due to China's unfair trade practices, according to the Economic Policy 
Institute.
  Unfortunately, the plant closings continue in Michigan and around the 
Nation. Over the past three months we see example after example of the 
damage a ``wait and see'' attitude has on workers in this country.
  We should not be shirking our responsibilities to enforce trade 
rules. This Bill helps us reverse the course upon which we find 
ourselves--it helps us save American jobs.
  I believe in trade and the benefits it can have for our 
manufacturers, farmers, and other industries. But, we need to have fair 
trade first and foremost.
  A Special Trade Prosecutor would have the power to stand up for our 
manufacturers and farmers and make sure that other countries are 
holding up their end of their trade agreements.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 817

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. CREATION OF SPECIAL TRADE PROSECUTOR.

       (a) Establishment of Position.--Section 141(b)(2) of the 
     Trade Act of 1974 (19 U.S.C. 2171(b)(2)) is amended to read 
     as follows:
       ``(2) There shall be in the Office 3 Deputy United States 
     Trade Representatives, 1 Chief Agricultural Negotiator, and 1 
     Special Trade Prosecutor. The 3 Deputy United States Trade 
     Representatives, the Chief Agricultural Negotiator, and the 
     Special Trade Prosecutor shall be appointed by the President, 
     by and with the advice and consent of the Senate. As an 
     exercise of the rulemaking power of the Senate, any 
     nomination of a Deputy United States Trade Representative, 
     the Chief Agricultural Negotiator, or the Special Trade 
     Prosecutor submitted to the Senate for its advice and 
     consent, and referred to a committee, shall be referred to 
     the Committee on Finance. Each Deputy United States Trade 
     Representative, the Chief Agricultural Negotiator, and the 
     Special Trade Prosecutor shall hold office at the pleasure of 
     the President and shall have the rank of Ambassador.''.
       (b) Functions of Position.--Section 141(c) of the Trade Act 
     of 1974 (19 U.S.C. 2171(c)) is amended by adding at the end 
     the following new paragraph:
       ``(6) The principal function of the Special Trade 
     Prosecutor shall be to ensure compliance with trade 
     agreements relating to United States manufactured goods and 
     services. The Special Trade Prosecutor shall have the 
     authority to investigate and recommend prosecuting cases 
     before the World Trade Organization and under trade 
     agreements to which the United States is a party. The Special 
     Trade Prosecutor shall recommend administering United States 
     trade laws relating to foreign government barriers to United 
     States goods and services. The Special Trade Prosecutor shall 
     perform such other functions as the United States Trade 
     Representative may direct.''.
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