[Congressional Record Volume 151, Number 159 (Tuesday, December 13, 2005)]
[Senate]
[Pages S13507-S13508]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
UNITED STATES-BAHRAIN FREE TRADE AGREEMENT IMPLEMENTATION ACT
Mr. FRIST. Mr. President, I ask unanimous consent that the Senate
proceed to the immediate consideration of H.R. 4340, the Bahrain Free
Trade Agreement. I ask unanimous consent that all time be yielded back.
The PRESIDING OFFICER. Without objection, it is so ordered.
The clerk will report the bill by title.
The legislative clerk read as follows:
A bill (H.R. 4340) to implement the United States-Bahrain
Free Trade Agreement.
There being no objection, the Senate proceed to consider the bill.
Mr. FRIST. Mr. President, the Bahrain free-trade agreement is a very
important agreement that reflects in this post-9/11 environment the
recommendation that had been made in terms of facilitating trade to
nations such as Bahrain. I am delighted we were able to both debate it
earlier today and ultimately pass this important free-trade agreement.
Mr. REID. Mr. President, I reluctantly oppose the legislation
implementing the U.S.-Bahrain Free Trade Agreement. I have nothing
against expanded trade with Bahrain, and I know that there is plenty in
this FTA that is appealing to the U.S. business community. However,
this agreement is another example of the misplaced priorities in the
Bush administration's flawed trade policy, which can best be described
as a policy of ``fiddling while Rome is burning.''
If you were to ask Americans to list their top trade priorities, I
think they would suggest the following: dealing with the enormous trade
deficit, on pace to exceed $700 billion this year; addressing the rise
of China; meeting the challenges of outsourcing and globalization;
enforcing our existing agreements and rules for fair trade; and perhaps
global negotiations in the World Trade Organization. A trade agreement
with Bahrain would be nowhere near the top of the list; it probably
would not even be on the list at all.
Yet, here we are, with the Bahrain FTA as the big trade item to close
out the year. The U.S. has a trade deficit with China that is on pace
to exceed $200 billion this year--more than a quarter of the entire
U.S. trade deficit. Last year, China passed the U.S. as the largest
exporter of high-tech information technology and communications
products. There is no doubt that the rise of China presents an
extraordinary challenge to the United States. Yet, the Bush
administration has essentially no policy dealing with China's currency
manipulation and the accompanying U.S. indebtedness to the government
of China, rampant piracy of U.S. intellectual property, WTO violations,
forced technology transfer requirements, and industrial policy in areas
critical to the U.S. like semiconductors and automobiles.
Instead, we have the Bahrain FTA, which involves .03 percent of total
U.S. trade.
The Bush administration has proposed no policies in the face of
outsourcing and the revolution of globalization to ensure that America
keeps good-paying jobs and remains the most competitive economy in the
world. They basically say, ``Don't Worry, Be Happy.''
Instead, the U.S. uses the scarce resources of the U.S. Trade
Representative to negotiate an FTA with Bahrain, which has an economy
one-tenth-of-one percent the size of the U.S. economy.
When it comes to enforcing our current agreements, the Bush
administration has been asleep at the wheel. While the Clinton
administration brought on average 11 WTO cases per year to knock down
foreign barriers to U.S. exports, the Bush administration has filed
fewer than three cases per year.
Instead, they have focused their energies on negotiating an FTA which
is so small that the independent ITC has stated, ``the effect of the
FTA on total U.S. exports is likely to be minimal.''
Meanwhile, the WTO negotiations have delayed and floundered. Ironic
may not be the right word, but it is a fitting testament to this
administration's skewed priorities that Senators are stuck in
Washington debating the Bahrain FTA this week, and so were not able to
travel to Hong Kong to provide oversight on the WTO negotiations--which
could have an impact thousands of times larger than a trade agreement
with Bahrain.
Looking at the merits of the Bahrain FTA in isolation, let me note
that I applaud the Government of Bahrain. It has been a good U.S. ally
and is an important moderate Arab and Islamic country. I wish the
people of Bahrain well and hope that the U.S. and Bahrain will continue
to enjoy good relations, including trading relations. I also note that
there are many good provisions in this agreement to ensure protection
for U.S. intellectual property rights, to prevent expropriations of
U.S. investments, to reduce barriers to U.S. exports, and to expand the
access of U.S. service providers to Bahrain's market.
It is regrettable, though, that the Bush administration followed its
flawed model in this FTA. In short, the interests of the business
community are taken care of, but the interests of the average American
are not. I certainly understand that many of the businesses that care
about these FTAs make important contributions to the U.S. economy and
are a critical source of employment, exports, and innovation. I value
those contributions and think for the most part the chapters and
provisions of the FTA important to the U.S. business community make
sense. What I do have a problem with, however, is the fact that our
trade agreements provide short shrift to areas of interest to human
beings, including workers' rights and environmental protection.
When it comes to transparency in government regulation,
telecommunications regulation, financial services regulation, other
services regulation,
[[Page S13508]]
and e-commerce, we include provisions that force our trading partners
to change their laws. When it comes to protection for intellectual
property rights, our trade agreements have provisions that force our
trading partners to adopt some of the highest levels of IP protection
in the world. In each case, if a country violates the rules in the FTA,
it is subject to trade sanctions.
Yet, when it comes to respect for the most basic, internationally-
recognized worker rights and respect for the environment, our trade
agreements say, ``You don't need to change your laws, just enforce
whatever you have.'' If our trading partners violate even this weak
rule, then they pay a fine; and the fine gets turned around and given
right back to them. Somehow, trade sanctions imposed to vindicate the
interests of business are just ``tough enforcement,'' but trade
sanctions for worker rights or the environment are ``protectionism.''
Worse, our FTAs would allow a country to weaken its laws related to
workers' rights and the environment, and the United States would have
absolutely no effective recourse. If Bahrain turns around and allows
child labor, or turns around and prohibits its guest workers in export
industries from joining unions, then the best the U.S. can do is seek
consultations with Bahrain. This is a step back from what the Clinton
administration negotiated, which would have allowed the U.S. to pursue
full dispute settlement on all of the labor provisions in the FTA. It
is also a step back from existing U.S. trade preferences programs,
which allow the U.S. to impose sanctions on countries that are not
adequately protecting basic workers rights.
What is it about worker rights and environmental protection that
warrants this disparate treatment? The same people who argue that these
provisions do not belong in trade agreements bemoan U.S. labor
standards and environmental rules, arguing that they hurt U.S.
competitiveness and add to our trade deficit. It is absurd and
dishonest to say on the one hand that these rules affect competition,
and then on the other that they do not belong in an agreement that is
designed to set the terms of competition.
I want to take a moment to acknowledge the good work done by
Democrats in the other chamber, who pushed and pushed and got Bahrain
to agree to make important reforms to its labor laws to bring them into
conformity with internationally-recognized standards. And, to its
credit, USTR agreed to monitor Bahrain's implementation and enforcement
of these changes as part of the FTA. I applaud the efforts of these
congressmen. Their hard work on this and other FTAs should shame anyone
who has tried to discredit their cause by calling it protectionist or
xenophobic. I regret that I will not be joining them in support of this
agreement, however. The bottom line is that this agreement does not
contain binding, enforceable rules that treat respect for workers'
rights and the environment on the same footing as respect for corporate
interests, so I will oppose it.
Separately, I want to address Bahrain's boycott against Israel. For
decades now, the United States has had a policy to oppose the Arab
League boycott against Israel. There is an entire office in the
Department of Commerce tasked with implementing this anti-boycott
policy. Congress has also directed USTR to ``vigorously oppose'' WTO
admission for countries that engage in the boycott. In my view, it is
an implicit corollary of this latter rule that the U.S. should not
enter into bilateral trade agreements with countries that participate
in the boycott.
Bahrain continues to participate in the boycott, however. To its
credit, Bahrain has terminated participation in the secondary and
tertiary aspects of the boycott. And, Bahrain has stated in a letter to
USTR that ``the Kingdom of Bahrain recognizes the need to dismantle the
primary boycott of Israel and is beginning efforts to achieve that
goal.'' That said, it is worth noting that even the primary boycott can
hurt U.S. producers. The primary boycott prohibits imports with Israeli
content. So, U.S. companies that use Israeli inputs could be barred
from exporting a mostly U.S.-made product to Bahrain.
USTR and supporters of this agreement argue that the quoted statement
constitutes a binding commitment by Bahrain to eliminate the primary
boycott. I hope they are correct, but I am not so sure. First, the
lower house of Bahrain's parliament--the only democratically elected
body in Bahrain's national government--recently voted resoundingly to
keep the boycott in place. Second, it is not as clear as I would like
that the statement at issue has the character of a legal obligation
rather than a statement of unilateral intent. While I hope that Bahrain
has officially committed itself to eliminating the primary boycott
against Israel once and for all, there is certainly no way for the U.S.
to bring an enforcement action against Bahrain if it fails to do so.
I think the antiboycott policy we have had in place for decades now
is the correct one. We should not be entering into trade agreements--
whether bilaterally or through the WTO--with countries that enforce the
boycott against Israel--primary, secondary or tertiary. It is
disturbing to me that the Bush administration has been quietly moving
away from this policy--here in the FTA today, as well as in its support
for Saudi Arabia's WTO accession this week.
The PRESIDING OFFICER. The question is on the third reading and
passage of the bill.
The bill (H.R. 4340) was ordered to a third reading, was read the
third time, and passed.
Mr. FRIST. I ask unanimous consent that the motion to reconsider be
laid upon the table, and I move to lay that motion on the table.
The motion to lay on the table was agreed to.
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