[Congressional Record Volume 157, Number 152 (Wednesday, October 12, 2011)]
[House]
[Pages H6804-H6812]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
UNITED STATES-PANAMA TRADE PROMOTION AGREEMENT IMPLEMENTATION ACT
The SPEAKER pro tempore. Pursuant to clause 1(c) of rule XIX, further
consideration of the bill (H.R. 3079) to implement the United States-
Panama Trade Promotion Agreement will now resume.
The Clerk read the title of the bill.
The SPEAKER pro tempore. One hour of debate remains on the bill. The
gentleman from Michigan (Mr. Camp), the gentleman from Michigan (Mr.
Levin), and the gentleman from Ohio (Mr. Kucinich) each will control 20
minutes.
The Chair recognizes the gentleman from Michigan (Mr. Camp).
Mr. CAMP. I yield 2 minutes to the distinguished gentleman from
Washington (Mr. Hastings).
(Mr. HASTINGS of Washington asked and was given permission to revise
and extend his remarks.)
[[Page H6805]]
Mr. HASTINGS of Washington. Mr. Speaker, I rise today in strong
support of the pending trade agreements, all three trade agreements,
with Colombia, South Korea, and Panama.
In my home State of Washington, where one in three jobs is dependent
on international trade, we understand the importance of expanding
foreign markets for economic success. There is no question, Mr.
Speaker, that these agreements will increase jobs. Let me give you an
example on a parochial basis in my district. Today, potato growers and
processors face an 18-percent tariff when sending their product to
South Korea. This agreement will end the tariff immediately, allowing
our growers to fairly compete in this very important market.
It is critical to my constituents that we act now on all three of
these trade agreements. Let me be parochial again, Mr. Speaker. Apple
sales in Colombia dropped 48 percent last year because Chile had duty-
free access to the Colombian market while my growers in my State did
not--in fact, they had a 15-percent tariff. The passage of this
agreement is expected to increase apple sales by 250,000 boxes a year,
allowing us to regain a market share or at least to compete on a level
playing field.
As our economy is struggling to recover, I encourage all of my
colleagues to act now to support all three of these trade agreements
because all three of these trade agreements will expand an opportunity
for our economy to grow, and especially, Mr. Speaker, the diverse
agriculture economy I have in central Washington.
I thank the gentleman for yielding.
Mr. LEVIN. I yield 2 minutes to the gentleman from Texas (Mr.
Doggett), a member of our committee.
Mr. DOGGETT. While this agreement, based upon the flawed framework of
the Bush-Cheney administration, offers no model for the future with
regard to workers or environmental protection, I am supporting today's
measure because of a successful response to a longstanding concern that
I have had, that is, Panama's status as a notorious tax haven, a place
where taxpayers who refuse to pay their fair share of the cost of our
national security and vital public services could go to hide their
assets and dodge taxes.
About 2 years ago, Senator Carl Levin and I urged the administration
to postpone the approval of this trade agreement until Panama first
signed a Tax Information Exchange Agreement, where we could get
information about assets hidden there and for Panama to change its laws
regarding bank secrecy and other matters to assure that this agreement
was meaningful. Panama has now met these conditions.
For the first time ever, we can obtain information from the
Panamanian Government on U.S. taxpayers who have Panamanian assets or
income. Though the Treasury Department should have secured a stronger
automatic information exchange similar to the one we have with Canada
and 24 other countries--and I would much prefer also to see an actual
record of Panamanian compliance--we need to accept this as a victory in
the fight against offshore tax cheats. This would not have been
possible had it not been for the strong Panamanian desire to get the
trade agreement approved.
By also agreeing to 12 other exchange agreements on tax information,
Panama was recently removed from the OECD gray list of tax havens. Now
we must ensure that Panama's newfound openness and transparency does
not end with approval of today's agreements.
I support this trade agreement, knowing that while it could have been
much better, the dangers have been mitigated with an agreement that has
a very modest scope.
Mr. KUCINICH. Mr. Speaker, I yield myself 1 minute.
The rights of workers, which have increasingly come under attack in
this country, are also at risk under these NAFTA-style trade
agreements.
In Panama a 2010 State Department Human Rights Report notes that
``the government lacked sufficient mechanisms to ensure that laws
prohibiting employer interference in unions and protecting workers from
employer reprisals were adequately enforced.''
So the government lacked sufficient mechanisms to make sure that they
were adequately enforced. We shouldn't be entering into a trade
agreement with a country that has yet to demonstrate its ability to
uphold international standards for labor rights and financial
regulation.
Panama's track record on fulfilling its promises is clear: Just as it
failed to adequately address its status as a tax haven wonderland, it
has failed in its promise to adequately protect its workers.
Mr. CAMP. Mr. Speaker, I yield 2 minutes to a distinguished member of
the Ways and Means Committee, the gentleman from Kentucky (Mr. Davis).
Mr. DAVIS of Kentucky. I thank both Chairman Camp and Chairman Brady
for their leadership on the pending trade agreements with Colombia,
Panama, and South Korea. All three countries have seen incredible
transformation take place over the last generation, especially Panama
and Colombia.
{time} 1410
In the last 25 years, they have revolutionized their economies.
They've revolutionized socially, and their democracies are robust.
I rise in support of the pending trade agreement with Panama and
encourage my colleagues to support passage of this important agreement.
It's critical, not just to our economy but also for our national
security. Passage of this agreement will mark renewed U.S. engagement
with the region, while countering anti-Americanism and China's
increasing economic prominence in South America.
Additionally, the U.S. is the largest user of the Panama Canal and
works closely with the Panamanian government to ensure the safety of
the canal itself and to enhance regional, maritime, and port security.
For this critical asset alone and maintaining that relationship, it
would be essential to passing this agreement.
I'd like to comment on one other aspect of security that's been
enhanced in all three trade agreements, and that's the security of
intellectual property rights. These agreements, all three of them,
Korea, Panama, and Colombia, make significant improvements to IPR
protections for U.S. companies. In all categories of intellectual
property rights, U.S. companies will be treated no less favorably than
companies in the partner countries. That's a great step forward.
The agreements establish tough penalties for piracy and
counterfeiting. They include state-of-the-art protection for U.S.
trademarks. The agreements include enhanced protection for copyrighted
work and, ultimately, the agreements include stronger protections for
patent and trade secrets.
As we look at the changing demographics of the world and the face of
relationships, it is important that we turn our eyes to the south and
to the east, strengthening our ties with Latin America and with South
America, strengthening our ties with Asian democracies and republics
through the Korean Free Trade Agreement. What we're doing with Panama,
Colombia, and Korea is critical to our future, to our children's
future.
I strongly urge passage of the Panama Free Trade Agreement. It's a
great step forward. It's a great step in our alliance.
Mr. LEVIN. I yield 5 minutes to a member of our committee, the
distinguished gentleman from Massachusetts (Mr. Neal).
Mr. NEAL. I thank the gentleman from Michigan for the nice words of
introduction.
Mr. Speaker, the U.S.-Panama Free Trade Agreement is an example of
how to do a trade agreement right. This agreement will improve the U.S.
trade surplus, emphasis on the word surplus, with Panama, and help with
U.S. job creation and economic growth. And thanks to the FTA, Panama
has brought its labor laws up to international standards and addressed
Panama's status as a tax haven.
Let's start with economics. In Massachusetts, which exported a total
of over $8 billion worth of merchandise in 2010, the total number of
jobs created in my district supported by exports is over 26,000.
New exports help to support new jobs, and that's why I support the
Panamanian free trade agreement. Panama is one of the fastest growing
economies in Latin America. This FTA will eliminate tariffs and other
barriers to U.S.
[[Page H6806]]
exports, promote economic growth, and expand trade between our two
countries.
For example, most goods from Panama currently enter the U.S. duty-
free, whereas U.S. exporters face import duties in Panama ranging from
5 to over 35 percent. This FTA will level the playing field by
eliminating Panama's import duties on U.S. goods. As a result, U.S.
passenger vehicle exports are expected to increase by 43 percent, and
machinery exports are expected to increase by 14 percent.
Furthermore, Panama is currently free to discriminate against U.S.
suppliers in government procurement, including the ongoing $5.25
billion Panama Canal expansion project. The FTA will require Panama to
treat U.S. suppliers the same as Panamanian suppliers. There is going
to be an explosion of opportunity with the opening of the Panama Canal
after its expansion.
Now let's go to labor rights. Over the course of several years, House
Democrats, myself included, have identified a variety of deficiencies
in Panama's labor laws, and we insisted that the Panamanian FTA not be
considered until those issues were addressed. In April of this year,
Panama's President signed into law the last remaining changes needed to
bring Panamanian laws into compliance with labor obligations of this
agreement.
Furthermore, when we took the majority in 2007, House Democrats
insisted that the FTA be negotiated or renegotiated to include the May
10 agreement. Among other things, the FTA was renegotiated to require
Panama to comply with international labor standards and key
international environmental agreements. Labor rights, environmental
concerns, human rights. We insisted that those be undertaken, and we
were told at one time that the agreement offered had to be all or
nothing. House Democrats changed that with our insistence on those
basic issues.
Now let me highlight how Panama has addressed its tax haven issue.
And I would submit to you today there is no Member of this House that
has a stronger credential on cracking down on tax havens than I do. I
have stayed at it through the course of a career, and we've had some
success, with more guaranteed to come.
In 2000 the OECD listed Panama as a tax haven, but since that time,
Panama has worked to adopt international standards of transparency and
effective exchange of information. In 2010, the U.S. and Panama entered
into a tax information exchange agreement, and this past July the OECD
placed Panama on its white list of countries who have substantially
implemented international standards for exchange information. These are
substantial advancements.
This would not have been possible without Democrats in this House who
insisted that the FTA not be submitted to Congress until the tax haven
issue was addressed. This FTA is a better agreement because House
Democrats insisted on those basic human rights issues.
There is no question but labor agreements, human rights agreements,
and environmental agreements have been included because of work that
the minority in the House has done. And at the same time, we understand
that these trade agreements are not necessarily panaceas. But by and
large, the ones that I know that I've supported over a career, and some
I've opposed, have had a net impact on economic growth.
These are very difficult issues for Members of this body to
undertake. But we argue that the genius of opportunity is what Steve
Jobs promoted through much of his life, with many setbacks along the
way. But understand that many of the products that Steve Jobs and his
genius succeeded in implementing ensure that people across the globe
use those products today, and I think this an example of those
opportunities.
Mr. CAMP. Mr. Speaker, I yield myself such time as I may consume.
I would just say, this agreement will create new market access for
U.S. exporters of consumer and industrial products. Over 87 percent of
our exports to Panama will become duty-free immediately, with the
remaining tariffs to be phased out that are left over a 10-year period.
This will cut by more than half the average 8 percent tariff that our
exporters face.
This will provide U.S. firms with an advantage over major competitors
from Europe and Asia. And because Panama recently signed an agreement
with the EU, our advantage is dependent on having our agreement enter
into force immediately. So it's not just about what the U.S. and Panama
are doing in a vacuum; it's about what the rest of the world is doing
as well.
As I said, there are key export sectors that get immediate duty-free
treatment: aircraft, construction equipment, fertilizers, medical and
scientific equipment. This levels the playing field for our exporters
versus importers from Panama, and this agreement will create new
opportunities for our farmers and ranchers.
More than half of the current U.S. farm exports to Panama will become
duty-free immediately. It gives our U.S. farmers an advantage over our
EU and Canadian competitors. Our exports in agriculture to Panama now
face a 15 percent average tariff. Our exports of pork, rice, soybeans
and wheat, and most fresh fruit will receive immediate duty-free
treatment, while our competitors in Asia and Europe will continue to
face tariffs on those commodities as high as 90 percent. And that's why
you've seen great support, both bipartisan, for this agreement. The
American Farm Bureau estimates that the increase in farm exports to
Panama alone could increase our agricultural exports by $46 million a
year.
Obviously, this agreement also provides our access to Panamanian
services markets. It will give our U.S. service firms market access,
national treatment, regulatory transparency, and that is going to be
very helpful as we continue to try to grow our economy and create jobs
here in the United States.
{time} 1420
I would agree with my friend from Massachusetts, Panama has improved
their tax transparency; and because of the cooperation, adoption of the
Tax Information Exchange Agreement, as well as other numerous double
taxation treaties that I won't repeat that he referenced, they have
been removed by the OECD from the so-called ``gray list'' to join
countries such as the United States that meet internationally-agreed-to
tax standards.
So by almost any measure, this agreement is positive, and it is
something that we should strongly support.
I reserve the balance of my time.
Mr. KUCINICH. Mr. Speaker, I yield myself 4 minutes.
Public Citizen is an organization that dedicates itself to an
impartial economic analysis of trade agreements. They looked at the
Panama trade agreement, and here's what they came up with. They said
that it includes extreme foreign investor privileges and offshoring
protections and their private enforcement in international tribunals.
It includes limits on financial and other service sector regulation, a
ban on Buy America procurement preferences, limits on environmental
safeguards and imported food and product safety and limits on drug
patent rules that limit generics.
The AFL-CIO is one of the most important workers' organizations in
the history of this country. They've analyzed the Panama free trade
agreement, and here's what they have said. They've said it's the wrong
trade model at the wrong time. Instead of helping workers here or in
Panama, it rewards a country that has a history of repressing labor
rights and has achieved much of its economic growth by making it easy
for money launderers and tax dodgers to hide their income from
legitimate authorities.
Moreover, this agreement, which was negotiated by the previous
administration, contains too many flawed trade policies of the past,
rather than laying out a new and progressive vision for the future.
President Obama should not waste valuable time and effort advancing
this inadequate agreement, but should instead focus on effective job
creation measures, including currency reform, infrastructure
investment, and robust training and education, and reforming our trade
model so that it strengthens labor rights protections for all workers,
safeguards domestic laws and regulations, and promotes the export of
goods, not jobs.
The AFL-CIO noted that due to the small size of Panama's economy, the
[[Page H6807]]
economic impact of the Panama free trade agreement is likely to be
small. Panama's gross domestic product is tiny in comparison to that of
the United States, and Panama accounted for less than \1/2\ of 1
percent of total U.S. exports in 2010. Thus, any demand for U.S. goods
and services is likely to be minuscule. This is simply not an agreement
that will substantially increase net exports or create American jobs.
While the Panama FTA contains--and we have to say it contains--
improved labor and environmental provisions, these provisions need to
be further strengthened, and our government needs to invest more
resources and energy in more consistent enforcement across the board;
and President Obama should work to further improve the labor,
environment, investment, financial services and government procurement
provisions contained in the Panama free trade agreement to build a new
trade model for the future.
The AFL-CIO also pointed out another thing, Mr. Speaker. They said
that Panama is not a part of any meaningful U.S. jobs plan. Even the
Obama administration is not selling the Panama free trade agreement as
a job-creating measure. Panama's economy is so small that the U.S.
International Trade Commission was unable to quantify any job-creation
effects of the Panama free trade agreement.
While economists routinely predict that trade agreements between the
U.S. and developing countries will create jobs and improve our trade
imbalances, the fact is that these rosy predictions repeatedly fail to
pan out. The current U.S. approach to trade agreements has tended to
destroy jobs, not create them.
Mr. CAMP. I yield 2 minutes to the distinguished gentleman from New
Mexico (Mr. Pearce).
Mr. PEARCE. Thank you, Mr. Chairman.
Mr. Speaker, I rise today in support of the three free trade
agreements that we are considering today. Free trade is good for
America. These agreements will increase our products flowing to other
countries that currently get to send their products for free here. We
live in a world where products flow freely around the world. It's time
for us to get American jobs to produce some of those goods moving
abroad.
I would note that the President has asked us to pass pieces of his
legislation, his jobs-creating legislation. I would compliment the
chairman that we've waited 2\1/2\ years to get this particular proposal
from the administration, and in less than 9 days, now we have it on the
floor of the House. We're serious about doing the things to fix the
economy. While the President lectures us, he fails to follow through on
regulatory relief and tax relief. He fails to follow through on those
things which would actually create jobs.
So we in the House appreciate the opportunity to vote on these
particular bills today, because it is our way of saying that we will
agree with the President when he's right, and we'll steadfastly
disagree with him when he's wrong. We've got many areas that we can
move forward together on, and I would recommend that the President come
and sit down with us, come back to this floor of the House and sit and
discuss with us the way to move forward instead of pushing a plan that
says ``my way or the highway.''
We have generally a great threat from American Government on American
jobs. The overregulation is killing jobs in the electrical utility
field, it's killing jobs in oil and gas, and it's killing jobs in
manufacturing. We can protect workers, we can protect the environment,
and we can protect species and create jobs simultaneously. It is up to
us, the policymakers, to find those balance points and to move forward
with commonsense legislation that will effect these.
Mr. LEVIN. Mr. Speaker, I yield 2 minutes to another member of our
committee, Mr. Kind of Wisconsin.
(Mr. KIND asked and was given permission to revise and extend his
remarks.)
Mr. KIND. Mr. Speaker, I rise in strong support of the Panama trade
agreement, as well as the Colombia and South Korea agreements before us
today. And in the matter of Panama, to Panama's credit and to Panama's
Parliament's credit, they realize that in order for this trade
agreement to be fully considered by the Congress, they had to make
improvements in regards to the tax havens of their country. And as the
chairman of the Ways and Means Committee pointed out, they did that.
They took that additional step removing them from the ``Gray List'' of
tax havens internationally.
But that brings me to the larger point. When President Obama took
office, I believe he inherited three pretty good trade agreements at
his desk negotiated by the previous administration; but he knew that
they could be improved upon, which they immediately set out to do. And
to the credit of many members of the Ways and Means Committee,
especially the chairman and the ranking member both from Michigan, and
the tireless efforts they put into improving these trade agreements, we
finally reached the point where we could get back in the game.
At just 4 percent of the world's population, we have to be engaged
with a proactive trade agenda; but the last time we had a trade
agreement before this Congress has been roughly 6 years ago while other
nations have been moving on with bilateral and multilateral agreements.
That's too long when we have a floundering economy. Not that these
trade agreements are going to be the panacea to rapid and significant
job growth, but they will be helpful. In fact, countries like Panama
and Colombia have virtually duty-free access to our country's markets
already.
So the question is whether or not we want to try to level the playing
field for our workers, for our businesses, and for the jobs being
created here in the United States. And in the specific case of Panama,
tariff reductions will be significant that will lead to further job
growth in both the manufacturing, the service and the agricultural
sectors alone.
But I commend the Obama administration and the team at the USTR led
by Ambassador Kirk with the work they did in improving this Panama
trade agreement, along with Colombia and South Korea, putting them in a
position where there can be bipartisan support, and more importantly,
to get us back into the arena of active trade which will help create
jobs here at home.
{time} 1430
Mr. KUCINICH. I yield 3 minutes to the distinguished gentlelady from
Maine, a champion of workers' rights, Ms. Pingree.
Ms. PINGREE of Maine. I thank my colleague and friend from Ohio for
yielding me this time.
Mr. Speaker, I rise today in opposition to the proposed trade
agreement. The Panama free trade agreement is structured exactly like
NAFTA, a trade policy that resulted in the loss of millions of
manufacturing jobs all over America. In Maine alone, we have lost
31,000 manufacturing jobs since NAFTA was ratified in 1994. In addition
to manufacturing jobs, it has hurt our agricultural and fishing
sectors, and has had a huge impact on the economy of our State.
I have a perfect example. Steve White of Brewer, Maine, comes to
mind. He worked in a factory for 22 years, making components that were
used by GM, Ford, and Chrysler. Now those parts are being made in
Mexico. Steve wrote this in the Bangor Daily News:
``We were given the opportunity, if we wished, to travel to Mexico
and further train our replacements. My coworkers who went said that the
conditions for the Mexican workers were very poor and far below the
American standard. The pay rate was very low, and they would work long
hours every day of the week.''
Here we are today, voting on three more trade agreements that could
have the same devastating consequences for American jobs. Why would we
do this at a time when we desperately need these jobs right here in the
United States?
This week, in addition to the three free trade agreements, we will
also vote on the extension of Trade Adjustment Assistance, a program
that was created for those adversely affected by trade agreements. For
several years and for probably many more, we have and will spend
millions of dollars retraining people who have been put out of work by
misguided trade agreements.
[[Page H6808]]
And for what? So that big companies can get a better deal on cheap
labor and loose environmental standards in other countries?
What our workers want today, what the people in my State, the State
of Maine, want are jobs, not readjustment assistance, not retraining,
not some idea of another job to come in the future. They want a job
today. They don't want these trade agreements, and they don't want to
lose any more jobs in our State.
Mr. Speaker, America has a long history of supporting our hardworking
families, but this policy does not invest in our workforce. It is not
what is right for America's future, and I cannot support it.
Mr. CAMP. I yield 3 minutes to the distinguished chair of the Trade
Subcommittee, the gentleman from Texas (Mr. Brady).
Mr. BRADY of Texas. I thank the chairman for yielding time.
I first want to thank Chairman Camp and Speaker Boehner for insisting
that the White House submit the Panama trade agreement along with those
of Colombia and Korea to ensure that we open all three markets equally
to American farmers, manufacturers, service, and technology companies.
But for your work, we would not be here today.
This agreement is long overdue. As families know, the world has
changed. It's not simply enough to buy American; we have to sell
American all throughout the world. Panama is a dynamic new market for
America with almost 9 percent a year in economic growth--far stronger
than our own. Panama is important to our manufacturers in America, it's
important to our farmers, it's especially important to our service
companies because so much of Panama's economy matches up beautifully
with America's economy. With the expansion of the Panama Canal, you're
going to see increased cargo at our ports, increased jobs along our
coasts, and lower prices in products in America as well.
Critics will say, Panama is too small an economy. Why do we bother?
In this dismal economy in America, every sale, every job counts. From
Europe to Canada, to Thailand, to Singapore, and many more, our
competitors negotiate sales agreements with Panama because they know
those customers matter.
Critics say, Panama is a tax haven. Why are we doing this agreement?
But those simply aren't the facts. They also often say that labor
rights aren't what they ought to be.
Panama has passed more than a dozen labor laws that dramatically
commit to raising the standard of labor protections in that country.
They have passed tax information agreements with America and with other
countries around the world, so much so that they are now considered in
standing on tax transparency equal to the United States.
This is a valued ally in a strong and growing part of the world that,
frankly, has waited far too long. It is embarrassing that it has taken
4 years to bring this agreement to the floor. But today it is here.
Today, we will signal we are going to open those markets, that we are
going to strengthen our ties, and that we are going to pass this sales
agreement with Panama.
Mr. KUCINICH. Mr. Speaker, I ask unanimous consent that the gentleman
from Maine (Mr. Michaud) be permitted to manage the remainder of the
time.
The SPEAKER. Without objection, the gentleman from Maine will control
the time.
There was no objection.
Mr. LEVIN. Mr. Speaker, I now yield 3 minutes to another
distinguished member of our committee, the gentleman from New Jersey
(Mr. Pascrell).
Mr. PASCRELL. Mr. Speaker, Panama will be the only trade deal that I
will vote for because they import very little to the United States in
the first place. More importantly, this allows for, as I see it, new
opportunities for the U.S. gulf and east coast ports. Over 60 percent
of the goods shipped through the canal sail to or from the United
States. I think they've corrected what needed to be corrected. There is
no indication of a loss of American jobs, and I think that's what we
should be all about.
As for Colombia, I don't know how anyone could stand in front of the
American people and say that Colombia is making progress in terms of
stopping the concerted, conspiratorial effort, proven time and time
again, of the murder of trade unionists in that country. In fact, there
have been no convictions in 94 percent of the cases from 1986 to 2010--
6 percent of convictions. I don't know how anybody could stand on this
floor, Mr. Speaker, and compare the system of justice there to the
system of justice of the United States. Some have suggested, well, we
have murders here in this country, too. Of course there are. This is an
absolute disgrace. We've lost our soul on this deal, no question about
it.
Also, a number of multinational companies didn't want the China
currency fixed because it doesn't help their big businesses and their
purposes. So let's come to the crux of the issue:
If we'd have put together all the promises that were made to the
American workers for the past 25, 30 years on trade deals, we would be
very, very disappointed. This deal has come a long way, perhaps, since
the last administration, but neither party is privy to perfection here.
This is not a one-party rap.
I've read every one of these deals as much as I could, and there are
good aspects of the deal, but let's take, for instance, that the United
States International Trade Commission does not believe this bill will
create jobs. Let me repeat that over and over again.
The SPEAKER. The time of the gentleman has expired.
Mr. LEVIN. I yield the gentleman an additional 30 seconds.
Mr. PASCRELL. In fact, the updated report they provided to Congress
contains a very specific disclaimer that is not an official estimate.
When are we going to stop the hemorrhaging of American jobs? It is
part of what we've gone through, both parties, but more importantly,
the entire Nation, over the last 4 or 5 years.
Every trade deal does not mean that there are jobs created in this
country. In fact, 90 percent of the trade deals have led to a lessening
of jobs in the United States of America. So you can't have high hopes,
and you don't have the evidence to show it. Let's bring jobs here to
this country.
{time} 1440
Mr. BRADY of Texas. I yield 2 minutes to the chairman of the
Agriculture Committee and a champion of new markets, the gentleman from
Oklahoma (Mr. Lucas).
Mr. LUCAS. Mr. Speaker, I rise to voice my support for this free
trade agreement with Panama.
Trade agreements open market access to our farmers and ranchers,
which brings in valuable income and creates jobs. In my home State of
Oklahoma, agricultural exports support more than 10,000 jobs. Across
the country, agriculture exports support more than 1 million jobs
total. Those jobs aren't confined to the farm either. They stretch
across a variety of industries, including processing, manufacturing,
and transportation.
In fact, for every dollar of farm products that we export, we add
another $1.31 to our economy from those nonfarm industries. That's why
it's so important to continue opening markets for American agricultural
products.
More than 60 percent of our agricultural exports to Panama face some
sort of duty or tariff. Those tariffs average 15 percent; but they can
be as high as 70 percent on meat, 90 percent on grain, and a staggering
260 percent on poultry. Meanwhile, more than 99 percent of Panama's
farm exports enter the U.S. duty free.
So this agreement will not only create new opportunities for
America's farmers and ranchers but it levels the playing field for our
exporters. As soon as this agreement is implemented, more than half of
our farm exports will become duty free. So we can expect to see
immediate opportunities once this agreement is in force.
America's farmers, ranchers, processors, manufacturers and shippers
can all benefit from those opportunities. Let's help them expand their
businesses and create more jobs. Let's pass this agreement.
Mr. MICHAUD. Mr. Speaker, I yield 2 minutes to the gentlewoman from
Ohio (Ms. Kaptur).
Ms. KAPTUR. I thank the gentleman from Maine for yielding.
[[Page H6809]]
Mr. Speaker, I am proud to stand here today voicing the concerns of
America's workers and rise in opposition to the Panama free trade
agreement, as well as the South Korean and Colombian.
Like many others, in terms of Panama, I have expressed concerns about
Panama's long history of being a tax haven. Supporters of this NAFTA-
style trade deal claim that the Tax Information and Exchange Agreement,
or TIEA, that Panama ratified in April of this year wiped away decades
of secrecy as a tax haven there. We've been told that Panama's recent
removal from the OECD's gray list indicates that it's a fresh start.
Well, I ask, when have the promises made in other NAFTA-style trade
deals that have brought us these trade deficits since NAFTA was first
signed, when have they ever made good on their agreements?
Public Citizen notes that the 2001 Panama tax agreement, called TIEA,
includes a major exception, a major exception that allows Panama to
reject specific requests if it's contrary to the public policy of
Panama. Now, that's an interesting concept for a country that derives a
significant national income from activities related to being a tax
haven.
Time has proven those who oppose these NAFTA-type trade accords
correct. They have all been job losers.
Otherwise, America would have a trade balance, but we have a half a
trillion dollar trade deficit. Sure we might sell a few more pork chops
and a few more soybeans. But, you know what, overall America loses
almost all of its GDP growth simply because the growing trade deficit
just squashes down the opportunity for job creation in our country.
We've seen millions and millions of jobs outsourced.
Let me say a word about the U.S.-Korea trade agreement. It's modeled
after NAFTA too; and, again, it's one of these copy-cat agreements. In
the last decade alone, these agreements have cost Americans over 6
million jobs, 55,000 plants have been lost, so many outsourced. I mean,
what world do you live in if you don't even understand what's happening
with job outsourcing to our country between our borders from Atlantic
to Pacific.
The SPEAKER pro tempore (Mrs. Emerson). The time of the gentlewoman
has expired.
Mr. MICHAUD. I yield the gentlelady 1 additional minute.
Ms. KAPTUR. I thank the gentleman.
I'm from northern Ohio. Just to clarify what this means for one of
America's lodestar industries, here's a little graph that shows how
many Korean cars are coming into the United States today, over half a
million.
This little dot here represents what the U.S. is selling into the
Korean market right now: 7,450 of our cars in that market versus over
half a million of their cars sold here. This agreement basically says
maybe America could sell 75,000 cars--but there's no guarantee, no
guarantee--and if you go to Korea today, you see less than 5 percent of
the cars on their streets are from anywhere else in the world. So, you
think they're going to be reciprocal?
Theirs is a closed market. When is America going to stand up in its
trade policies to state-managed capitalism in these other countries and
give our workers and our companies an even break? All this deal says is
we might sell--it doesn't say must sell--it says we might sell up to
75,000 cars in that economy, but they're already eating our lunch.
The Economic Policy Institute estimates this agreement will cost us
another 159,000 net jobs. And you know, Mr. Speaker, I sure hope they
don't come out of Ohio again. I hope they come out of the districts of
every single person here who's going to vote for this agreement and
cause more job hemorrhaging to this economy.
Mr. LEVIN. I yield 2 minutes to the gentleman from Utah (Mr.
Matheson).
Mr. MATHESON. I thank the gentleman from Michigan for yielding me
some time.
Madam Speaker, I find that sometimes when we talk about issues around
here, we hear the same thing we've heard for years and years and years,
and sometimes that's a good thing.
But sometimes it's also important to acknowledge that the world is
changing. Things are happening. Globalization is a mixed bag,
globalization creates opportunities, but it also creates a lot of
challenges. As policymakers, what we need to do is look for where we
can best position this country to compete in that changing environment.
I rise in support of all three of these agreements, and I will tell
you what's going on compared to years ago. The rest of the world's
moving on. The rest of the world is opening markets to each other, and
U.S. products and U.S. opportunities are being limited by that
phenomenon.
For example, in Colombia, 2008, the United States was responsible for
46 percent of all the goods coming into Colombia. But what happened
after 2008? Well, Colombia entered into bilateral trade agreements with
Argentina and with Brazil, and just 2 short years later, in 2010, the
U.S. only had 20 percent of the products that were being shipped into
Colombia. That's a pretty big drop. About 25 percent of all the
materials coming into that country, the U.S. used to have that market
and then we lost it.
We should seek out the fairest deals, the best deals for this
country; but we should not be in denial for what's going on in the rest
of the world. We should not be in denial about markets opening up
elsewhere and the U.S. sitting on its hands and doing nothing.
Now, mind you, in the case of Colombia, in particular, it's already
had an opportunity for markets in the U.S. due to the Caribbean Basin
Initiative. Their goods have been coming here duty free for years. We
have an opportunity now to level that playing field.
So I encourage my colleagues to recognize where we are in 2011 and
the circumstances we are in and what other countries in the world are
doing to respond to the opportunities presented by globalization and
dealing with mitigating the problems. I encourage you to vote for all
three of these trade agreements.
Mr. BRADY of Texas. I yield myself 10 seconds.
I would point out in manufacturing we actually run a trade surplus
with our trading partners, including NAFTA, selling much more products
there. It's our trade deficit with our nontrade agreement partners that
we have troubles with. Panama is a surplus for America.
I now yield 2 minutes to a key member of the Ways and Means
Committee, who has helped lead the freshman class in opening new
markets and finding new customers, the gentleman from New York (Mr.
Reed).
{time} 1450
Mr. REED. Madam Speaker, I rise today in strong support of all three
free trade agreements we will be voting on this evening. This is a
great day. We are talking about, with the passage of these free trade
agreements, approximately 250,000 new jobs across America. Those are
new jobs that will put families back to work. They'll put roofs over
their heads, put food on their tables, and allow them to enjoy the
American Dream.
I rise in particular in regards to the U.S.-Panama agreement. Some of
my colleagues, Madam Speaker, have argued that free trade has forced a
lot of our manufacturing and industrial jobs to go overseas. Well, one
of the facts of the circumstances can be illustrated by what's going on
with U.S.-Panama. Right now our goods, as they go into Panama, face up
to a 260 percent tariff at its borders. Yet the imports coming from
Panama to America, because of the Caribbean Basin Initiative and the
Caribbean Basin Trade Partnership Act, come to us duty free. That is an
uneven playing field.
What these free trade agreements do, in my humble opinion, is even
the playing field so that American workers can compete on an equal and
level playing field. And if that is the case, I'm confident that the
American worker and American families will always win in that
competition. So I strongly support these trade agreements.
It's amazing to me that it has taken 5 years to get these agreements
to this Chamber; but rather than point fingers at who caused what and
what the reasons for those delays were, I always will look to the
future. And what these agreements will represent is a step in the right
direction of getting America back in a position where it competes in
[[Page H6810]]
the world market and once again rises up and says we are the strongest,
we are the best, and we will create 250,000 new jobs.
Mr. LEVIN. I yield 2\1/2\ minutes to a new parent who is bringing a
picture of his new son with him to the podium, Mr. Polis of Colorado.
Mr. POLIS. I thank the gentleman from Michigan.
Today I am pleased to see that Congress is finally focused on
America's top priority, jobs. As economic experts from across the
ideological spectrum have made clear, these trade agreements with
Panama, Colombia, and South Korea will create jobs for Americans. In
fact, the White House has said these deals will create 70,000 new jobs
for Americans at a time when we need them. That's why I intend to vote
for all three agreements.
I'm also going to vote ``yes'' because these trade pacts will help
put money back in the pockets of hardworking Americans. By lifting the
aggressive tariffs on many commonly purchased clothing and household
items, we can cut the prices of essentials that every family needs.
Tariffs are essentially like a sales tax on imported goods, and like
sales taxes in many States, they're regressive.
Most U.S. imports today come into this country duty free, but a small
amount of items that many Americans use, like sneakers and clothing and
other household items, come with a tariff that's much higher than many
luxury items. For example, a pair of fancy Italian loafers has a tariff
of only 8.5 percent, but a pair of affordable sneakers that moms and
dads buy for their kids when they're heading back to school carry a
tariff that increases their price by 50 percent. Thrifty cotton and
polyester work shirts carry a 16 and 32 percent tariff, but a silk
Armani shirt comes with only a 1 percent tariff. Not only are these
regressive tariffs hard on the middle class, but they hurt American
businesses.
Many businesses in my district can expand their operations and hire
more workers with these three trade agreements. For example, in my
district alone, four businesses that export electronics, building
materials, and foods pay hundreds of thousands of dollars in tariffs
just to the Colombian Government. That translates into jobs in my
district.
Most importantly, as the gentleman from Michigan mentioned, as a new
father, I think about the kind of world I want my son to grow up in. I
want a world that reduces barriers between ideas, between people, and
between the flow of goods and services so that we can fully embrace our
brothers and sisters in Colombia, our brothers and sisters in South
Korea, our brothers and sisters in Panama and, indeed, across the world
to build a common greatness of humanity that manifests itself
economically through the flow of goods and services, culturally, and of
course to better establish the greatness of global culture.
Congress should pass these three trade agreements. I'm proud to
support all three of these job-creating free trade agreements. I
compliment President Obama on his leadership for bringing these deals
before us, and I encourage my colleagues to vote ``yes'' to create jobs
in America.
Mr. BRADY of Texas. Madam Speaker, I would like to inquire as to how
many speakers we have remaining, if I may.
Mr. MICHAUD. I have one more, plus I will be closing.
Mr. LEVIN. I will close on our side.
Mr. BRADY of Texas. We have two more and then closing.
At this time I would like to yield 1 minute to the gentleman from New
Jersey (Mr. Frelinghuysen), the chairman of the Energy and Water
Subcommittee for Appropriations.
(Mr. FRELINGHUYSEN asked and was given permission to revise and
extend his remarks.)
Mr. FRELINGHUYSEN. I thank the chairman for yielding.
Madam Speaker, I rise in strong support of the three free trade
agreements with Panama, Colombia, and South Korea. Frankly, it is about
time they have come to the House for action. Studies have shown that
further delays on these three trade agreements would put 380,000
American jobs at risk; whereas, passing them will create over a quarter
of a million new jobs and add $13 billion to our gross domestic
product.
The latest data shows 130,000 jobs in New Jersey depend on
international trade. Of these, 50,000 are manufacturing jobs.
Approximately one out of every six manufacturing jobs in New Jersey is
directly related to global trade. We need more activity on the trade
export agenda, and these free trade agreements will produce many, many
hundreds of thousands of jobs. We need to get about it. Let's act on
it. I strongly support it.
Mr. MICHAUD. Madam Speaker, may I inquire how much time remains on
all sides?
The SPEAKER pro tempore. The gentleman from Maine has 9\1/2\ minutes
remaining, the gentleman from Michigan has 3 minutes remaining, and the
gentleman from Texas has 3\3/4\ minutes remaining.
Mr. MICHAUD. I now would like to yield 3 minutes to the gentleman
from Oregon (Mr. DeFazio).
Mr. DeFAZIO. The United States of America has failed trade policies.
They are unlike any other in the world. And I guess the question before
this body today should be: Will these trade policies create jobs? The
answer is yes. Will they create jobs in America? The answer is no.
Like all the other free trade agreements we've entered into, these
are designed to benefit multinational companies seeking cheap labor and
fewer restrictions in terms of the environment and labor protections
and other things overseas. That's what these are about. They're also
about transshipment of goods with the low content requirement in Korea.
Yeah, goods will be cheaper. Made in China, maybe made by slave labor
in North Korea, those will be really cheap.
American consumers who don't have jobs will benefit from this. No,
American consumers would benefit a heck of a lot more if their
neighbors had jobs, if they had jobs and if our kids had a future.
Passing more of these free trade agreements, which has led to this sea
of red ink, isn't going to fix the problem.
Directly before us now is Panama. Now, Panama has a very interesting
economy, mostly bolstered by being a tax haven and money laundering
center. Now, the agreement that we're voting on doesn't prohibit that,
but there's a separate agreement entered into by the administration
that will go into effect a year from now. It doesn't require an
automatic exchange of tax information between the U.S. and Panama,
unlike other countries where we have these sorts of agreements. We must
know what we want and submit detailed information to Panama, and Panama
might or might not honor that request; i.e., we submit a request for
drug money laundering. They say, ``You have to be more specific.''
``Name the drug money people's deposits.''
``Well, we can't do that.''
``All right. Forget about it.''
We can name them. Good. But then Panama says they won't give us the
information if it is contradictory to their public policy; i.e., the
way they make a living, by being the largest Western Hemisphere haven
for the laundering of drug money, as a tax haven, and also terrorist
money in recent cases. We're going to facilitate that with this
agreement.
Somehow, a country with 3.5 million people, about the same size as my
State but a much lower income per capita, has 400,000 corporations
domiciled there, almost one for every Panamanian.
{time} 1500
No, these aren't really domiciled there. They're very conveniently
avoiding our laws and the laws of other advanced nations around the
world.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. MICHAUD. I yield the gentleman an additional 30 seconds.
Mr. DeFAZIO. As I said yesterday on Colombia, the noted economist
Joseph Stiglitz says that our agriculture--yes, we'll get a few
agriculture jobs--will displace traditional agriculture in Colombia,
causing huge disruptions in that country, driving people to produce
more coca. But don't worry. Right next door, the Colombian drug lords
will be able to deposit their money and not have to worry about the
U.S. finding out about it--right next door in Panama. How convenient.
This is really a great series of trade agreements.
[[Page H6811]]
Mr. BRADY of Texas. Madam Speaker, I am proud to yield 1 minute to a
freshman lawmaker who represents a region of Texas where international
trade means jobs, the gentleman from Texas (Mr. Canseco).
Mr. CANSECO. I rise in strong support of the Panama free trade
agreement. Like the Colombian agreement, this agreement has been
pending for far too long. And I thank the leadership of Chairmen Brady,
Dreier, and Camp.
At a time when unemployment is hovering above 9 percent, the Panama
free trade agreement will be a welcome shot in the arm to help the U.S.
economy. The International Trade Commission's analysis shows that the
Panama agreement will boost U.S. exports to Panama for key products
between 9 percent and 145 percent. This will mean thousands of new jobs
here at home. The Commerce Department has estimated that every $1
billion in exports creates 6,000 new jobs.
This agreement will benefit all sectors of the American economy, from
agricultural to financial services to manufacturing. It does so by
leveling the playing field for American exporters who currently face
tariffs of up to 260 percent while Panama exports face virtually no
tariffs in the United States.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. BRADY of Texas. I yield the gentleman an additional 15 seconds.
Mr. CANSECO. Fundamentally, this agreement is about the economic
freedom of the American people to be able to have a wide array of
choices and pay less for those choices because of the power of trade
and competition.
Mr. MICHAUD. Madam Speaker, is the chairman prepared to close?
Mr. BRADY of Texas. Yes, I am.
Mr. MICHAUD. I yield myself the balance of my time.
The SPEAKER pro tempore. The gentleman from Maine is recognized for
up to 6 minutes.
Mr. MICHAUD. On the House floor today, we are considering three trade
agreements: the FTA with Korea, which manipulates its currency; the FTA
with Colombia, the labor unionist murder capital of the world; and the
FTA with Panama, which has one of the smallest populations in Latin
America.
At a time of 9 percent unemployment, why are we even considering
these trade agreements? We should not be advancing the failed NAFTA-
style trade policy when millions of Americans are still out of work.
Instead, we should be considering legislation that will create jobs
here at home.
The American people were pretty clear in 2008 when they voted for
hope and change, and they were even clearer in 2010 when they voted in
a new generation of lawmakers to set Washington straight. Both times,
Americans voted against the inside-the-beltway perspective and for
Representatives and a President they thought would take the country in
a different direction. Both times, despite these signals from the
American people, the White House and Congress have ignored them, and
Washington remains as beholden to Wall Street and as detached from Main
Street as ever.
In a poll done by NBC and the Wall Street Journal last year, the
majority of Americans said that they thought the FTAs had been bad for
the country. Given that they're so unpopular, why on Earth would the
President send these agreements up to Congress right now? Well, you
only have to look at the President's economic advisers to find out.
Since elected, the President has surrounded himself with advisers
from Wall Street banks, with CEOs from companies that don't pay taxes,
and with staffers who pushed the NAFTA-style trade agreement under
Clinton. Those advisers don't bring fresh perspectives to the White
House. They bring more of the same corporate priorities that have
caused the current and previous White House administrations to turn a
blind eye while the big banks played roulette with our pensions and
mortgages and then asked for a taxpayer bailout.
The Panama free trade agreement is another example of Washington's
corporate priorities. Panama's GDP is about $25 billion. That's about
the same GDP as the city of Portland, Maine. The entire country has a
population of 3.4 million. We have three times as many people in the
United States on unemployment lists alone. And this agreement does
nothing for those 14 million Americans without jobs.
Panama simply isn't a significant market opportunity for U.S.
exports, and this FTA won't do anything to reduce our 9 percent
unemployment. But the big companies and the big banks want it, so
President Obama is going to give in to the Washington elites once
again.
The working people and the middle class don't want these trade
agreements--not with Panama, not with Korea, and not with Colombia.
They want good-paying jobs that allow them to provide for their
families. They want a government to pass laws to help get the economy
going again. They don't want another NAFTA-style trade agreement, and
they definitely don't want any more Wall Street-centric, beltway-based
policies from the White House or Congress. They want Washington to wake
up and they want the hope and change that they voted for. How much
clearer could the American people be? They want policies written by
citizens, not by chief executives. They want leaders to listen to town
halls, not wealthy tycoons. They want change, not more of the same.
I call on my colleagues who were sent here in 2010 with a mandate of
change to work with me. Vote against these trade deals, which will cost
us more than $7 billion. I call on my colleagues on the Democratic side
to remember we have always been the party of the working people. We
must vote against these NAFTA-style trade agreements. These agreements
are unjust to the American people.
I urge a ``no'' vote on all three of these trade agreements.
I yield back the balance of my time.
Mr. LEVIN. I yield myself the balance of my time.
The SPEAKER pro tempore. The gentleman from Michigan is recognized
for up to 3 minutes.
Mr. LEVIN. First, let me speak as someone who opposed, actively, the
NAFTA agreement and led the effort in this House in opposition to
CAFTA. This is, in terms of worker rights, the opposite of NAFTA and
CAFTA. What this does is to embody the basic international worker
rights enforceable in the trade agreement. Peru was the breakthrough,
and Panama continues along that pioneering path.
Secondly, on Panama, why are we here? Panama acted to change its
labor laws before we voted, as was true for Peru. We pointed out the
deficiencies in their laws and I discussed them with the previous
administration in Panama. But neither it nor the Bush administration
was willing to make sure action occurred.
{time} 1510
Now those changes have been made as to companies less than 2 years.
Those changes have been made in terms of the economic processing zones,
and they have prohibited bypassing unions by direct negotiations with
non-unionized workers--unfortunately, not true in Colombia. Look, on
the tax haven, they signed the TIEA. We asked them to do that, and
that's precisely what they have done.
In terms of investment, this bill strengthens the present status quo
in terms of investment protections for the United States communities.
So, in a word, we have a bill before us that meets the requirements
that we set out when we said to the Bush administration, we will not
take up Panama until changes have been made. Those changes have now
indeed been made in terms of worker rights, in terms of strengthening
investment, in terms of ending Panama as a tax haven. Those changes
having been made, I urge support of this FTA.
I yield back the balance of my time.
Mr. BRADY of Texas. Madam Speaker, to close, I am proud to yield the
balance of my time to a champion for job creation in America, the
majority leader of the House, Mr. Cantor.
The SPEAKER pro tempore. The gentleman from Virginia is recognized
for up to 2\1/2\ minutes.
Mr. CANTOR. I thank the gentleman from Texas.
Madam Speaker, our current economic environment has left millions of
Americans without the hope of a brighter future. The constant threat of
tax increases and the continued threat
[[Page H6812]]
of excessive regulations coming from this administration sends the
wrong signal to our entrepreneurs, our investors, and our small
business people, the very people we need to create jobs. It sends the
signal that America is not open for business. And there is a sense that
we may be falling behind other nations in the global marketplace.
We face big challenges, but America has always stood up when times
were tough. We are a country of entrepreneurs and innovators. Madam
Speaker, it is time to energize our small businesses and job creators
and get the economy growing again.
When House Republicans released our plan for America's job creators,
we outlined our ideas to get our economy back on track, to promote an
environment for job creation, and to ensure America remains the land
for opportunity without raising taxes or adding to the deficit. And
part of that plan was passage of the free trade agreements with
Colombia--yes, Panama, and yes, South Korea.
But our support for passing these agreements is not new. On December
22, 2009, I, along with other House Republican leaders, wrote to
President Obama outlining what we called the ``No Cost Jobs Plan.'' In
that letter, we noted that passage of these trade agreements would,
according to experts, increase exports by 1 percent. That 1 percent
increase in exports equates to a quarter of a million new jobs. We
noted in our letter that the only thing standing in the way of creating
those jobs was for the President to submit the trade agreements to
Congress for approval. Since then, we have repeatedly called on the
President to move forward with these agreements so we can clear the way
for thousands of new jobs and create an environment for economic
growth. Nearly 2\1/2\ years later, on October 3, the President finally
submitted all three agreements.
I am glad that the administration has recognized the importance of
expanding market access for American companies, both small and large.
As majority leader, I introduced all three agreements the very same day
the President submitted them, and I am pleased today that the House
will approve all three agreements.
By moving forward on these agreements, Madam Speaker, we will help
manufacturers in my home State of Virginia and those across the country
increase exports and increase production. The more manufacturers
produce, the more workers they need, and that means more jobs.
Our action today is proof that when we look for common ground and
work together, we can produce results. I'd also like to note that
today, Madam Speaker, the House is acting on another bill that is part
of the President's jobs plan. The House will pass the VOW Act, the
Veterans Opportunity to Work Act, to help our soldiers and veterans
with the challenges of reentering the workforce.
Madam Speaker, there is no more time to waste. We have said over and
over again that we should not let our differences get in the way of
producing results, and we want to find common ground so that we can
work together to improve the economy. I hope today's action will
encourage the Senate and the President to join us in helping to pass
these trade agreements and other pro-growth measures to help the
American people get back to work.
The SPEAKER pro tempore. All time for debate has expired.
Pursuant to House Resolution 425, the previous question is ordered on
the bill.
The question is on the engrossment and third reading of the bill.
The bill was ordered to be engrossed and read a third time, and was
read the third time.
The SPEAKER pro tempore. The question is on the passage of the bill.
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Mr. BRADY of Texas. Madam Speaker, on that I demand the yeas and
nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further
proceedings on this question will be postponed.
____________________