[Congressional Record Volume 162, Number 113 (Wednesday, July 13, 2016)]
[Senate]
[Pages S5088-S5089]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SENATE CONCURRENT RESOLUTION 47--EXPRESSING SUPPORT FOR FOSTERING
CLOSER ECONOMIC AND COMMERCIAL TIES BETWEEN THE UNITED STATES AND THE
UNITED KINGDOM FOLLOWING THE DECISION OF THE PEOPLE OF THE UNITED
KINGDOM TO WITHDRAW FROM THE EUROPEAN UNION
Mr. HATCH (for himself, Mr. McConnell, Mr. Coats, Mr. Cornyn, Mr.
Thune, Mr. Roberts, Mr. Blunt, Mr. Enzi, Mr. Scott, and Mr. Grassley)
submitted the following concurrent resolution; which was referred to
the Committee on Finance:
S. Con. Res. 47
Whereas the United States and the United Kingdom are allies
with a long tradition of working in close cooperation to
support one another's mutual interests;
Whereas the United Kingdom is the world's fifth largest
economy and one of the most important trading and economic
partners of the United States;
Whereas expanding United States trade with the United
Kingdom has the potential to benefit American businesses,
farmers, ranchers, workers, and consumers;
Whereas a strong and economically vibrant United Kingdom
capable of supporting global economic growth and promoting
shared Anglo-American economic principles is in the national
interest of the United States;
Whereas the voluntary exchange of goods and services among
citizens of nations helps provide global economic stability,
especially in times of economic uncertainty;
Whereas the United States also continues to support the
member states of the European Union and seeks the further
enhancement of economic and commercial ties between the
United States and the European Union, including through the
conclusion of a high-standard Transatlantic Trade and
Investment Partnership; and
Whereas orderly and cooperative negotiations between the
United Kingdom and the European Union that uphold the
fundamental bases for trade and investment between the United
Kingdom and the European Union are in the mutual interest of
the United States, the United Kingdom, and the member states
of the European Union: Now, therefore, be it
Resolved by the Senate (the House of Representatives
concurring), That Congress--
(1) calls upon the President to consult with the Senate and
the House of Representatives to consider opportunities to
promote further economic and commercial activity and
cooperation between the United States and the United Kingdom,
including by way of a trade agreement between the United
States and the United Kingdom;
(2) calls upon the President to invite the United Kingdom
to begin discussions towards establishing the basis for
negotiations for a trade agreement between the United States
and the United Kingdom;
(3) recalls that section 103(d) of the Bipartisan
Congressional Trade Priorities and Accountability Act of 2015
(19 U.S.C. 4202(d)) directs the President to commence
negotiations covering tariff and nontariff barriers to United
States trade where the President determines that such
negotiations are feasible and timely and would benefit the
United States;
(4) recalls further that section 102 of the Bipartisan
Congressional Trade Priorities and Accountability Act of 2015
(19 U.S.C. 4201) sets forth the negotiating objectives of the
United States, and that the Senate and the House of
Representatives expect that these congressionally-mandated
negotiating objectives will be achieved in any United States
trade agreement;
(5) urges the President, throughout discussions with the
United Kingdom and in close consultation with the Senate and
the House of Representatives, to determine whether
negotiation of a trade agreement with the United Kingdom
would be likely to achieve the negotiating objectives
established by the Bipartisan Congressional Trade Priorities
and Accountability Act of 2015 and, if such negotiation would
be likely to achieve such objectives, to commence
negotiations towards a trade agreement with the United
Kingdom as soon as appropriate;
(6) expresses support for enhanced economic and commercial
ties between the United States and the European Union,
including through the conclusion of a high-standard
Transatlantic Trade and Investment Partnership;
(7) notes that the continued movement of goods, services,
and capital between the United Kingdom and the European Union
is important to American businesses invested in Europe and
the United States economy generally; and
(8) calls upon the European Union and the United Kingdom to
work constructively to achieve a climate for trade and
investment that is mutually beneficial and productive.
Mr. HATCH. Mr. President, I would like to take a few minutes to talk
about a resolution that I am submitting today regarding the importance
of the trade and investment relationship between the United States and
the United Kingdom. I also would like to discuss our Nation's
international trade policy more broadly, including our interest in
negotiating and entering into trade agreements that satisfy the high
standards that the Congress outlined in the Trade Promotion Authority,
or TPA, statute we enacted last year.
Last month, the U.K. voted to withdraw from the European Union. The
formal withdrawal process is at its beginning stages, and the U.K. and
the EU have many issues to resolve as they work out their future
political and economic relationship. I am optimistic that these issues
will be resolved constructively, and that the U.K. and the EU will
achieve a trade and investment climate that is mutually beneficial and
productive and that supports the continuation of the United States'
close diplomatic, economic, and commercial ties with both the U.K. and
the EU.
Throughout this process, the U.S. must continue to show strong
support for the important and longstanding relationship that our
country enjoys with the U.K. That relationship is rooted in democratic
principles, a similar culture and a common language, a strong
commitment to peace and security, and close and open economic and
commercial ties. The U.S. and the U.K. have a long tradition of working
together to support one another's mutual interests, and the U.K.'s
decision to withdraw from the EU should not jeopardize that tradition.
In fact, the special relationship between our two countries must be
fortified as the U.K. navigates the process of withdrawing from the EU.
It is in that spirit that I propose this resolution, which highlights
the importance of the political, economic, and commercial relationship
between the U.S. and the U.K., and calls upon the administration to
consult with the Congress to examine ways to promote further economic
and commercial activity and cooperation between our two countries,
including through the negotiation of a high-standard trade agreement at
the appropriate time.
The U.K. is the world's fifth largest economy and one of the United
States' most important economic partners. Expanding U.S. trade with the
U.K. would result in major benefits to both American and British
businesses, workers, producers, and consumers. Furthermore, a
strengthened economic partnership between the U.S. and the U.K. would
produce important geopolitical benefits that are in our national
interest.
As such, the resolution calls upon the President to consult with the
Congress regarding opportunities to further economic and commercial
activity and cooperation between the U.S. and the U.K., including
considering a trade agreement between our two countries. However--and
let me emphasize this point--as with any trade agreement negotiated by
this administration or the next, any future trade agreement between the
U.S. and the U.K. must adhere to the high standards outlined in the
recently enacted TPA law, which established very specific objectives
regarding the negotiation of trade agreements. Any future trade
agreement with the U.K. needs to satisfy those objectives in order to
qualify for TPA procedures.
Now that I have spoken about the importance of the trade and
investment relationship between the U.S. and the U.K., I would like to
speak about the importance of the trade and investment relationship
between the United States and the European Union. While this resolution
proposes stronger economic and commercial ties with the
[[Page S5089]]
U.K., it does the same for the EU. To be clear, the U.K.'s decision to
withdraw from the EU should not jeopardize or weaken our country's
relationship with the U.K., nor should it jeopardize or weaken our
country's relationship with the EU. Both the U.K. and the EU are
important diplomatic and economic partners of the United States.
As such, the resolution proposes stronger economic and commercial
ties between the U.S. and the EU, including through the conclusion of a
high-standard Transatlantic Trade and Investment Partnership, T-TIP,
agreement. Coincidentally, our trade negotiators are in Europe this
week for the 14th round of T-TIP negotiations.
I would like to take a few moments to discuss Congress's expectations
for T-TIP and to highlight areas of particular concern.
T-TIP presents an excellent opportunity for both the U.S. and the
EU--the world's two largest economies--to strengthen our already robust
economic relationship. That relationship is one of the most extensive
and complex in the world. Together, our economies account for
approximately half of world GDP and nearly one third of worldwide
trade. Annual U.S.-EU trade amounts to hundreds of billions of dollars,
and our two markets already are deeply integrated and relatively open.
Nonetheless, opportunities exist for the U.S. and the EU to expand
trade and investment by further reducing barriers and modernizing the
rules that govern such trade and investment. But in order for T-TIP or
any similar trade agreement to reach its full potential, it must
reflect an unprecedented level of commitment--by both the EU and the
Obama administration.
T-TIP also presents an excellent opportunity for the U.S. and the EU
to work together to help set high standards for the world. If the
agreement does not meet a high standard, then the rest of the world
will take notice. In order to qualify as a high-standard agreement, T-
TIP--just like any potential trade agreement between the U.S. and the
U.K.--must satisfy the standards outlined in the TPA statute. If the
agreement does not satisfy those standards, then it will face enormous
difficulty in the Congress.
To do this, T-TIP must address several difficult areas. I will
highlight only a few such areas and issues today, while noting that
many others exist.
First, the agreement must have provisions that provide strong market
access for agricultural products, including through the elimination of
discriminatory geographical indication practices and unjustified
sanitary and phytosanitary standards.
Second, the agreement must be comprehensive and not exclude any
products or economic sectors from the negotiations. Of particular
concern are services. The agreement should not broadly exempt future
services or specifically exempt other types of services, including
audiovisual services or financial services. In particular, both the
market access and the regulatory scope of the agreement should address
financial services.
Third, a valid and passable T-TIP agreement must reflect the highest
standards of protection for intellectual property rights. Moreover, any
outcome on intellectual property must not jeopardize our country's
ability to achieve high levels of intellectual property protection in
other markets or in other negotiations.
Finally, T-TIP must address barriers to digital trade, including
discriminatory treatment of digital products and barriers that inhibit
the free flow of digital data, such as forced data localization
policies. In short, the agreement must ensure that all products,
services, and technologies are given the chance to compete in the
marketplace.
T-TIP is intended to be a model for the world, so we must get it
right.
The resolution that I'm introducing today notes the importance of
economic cooperation among the U.S., the U.K., and the EU, and
highlights the mutual benefits to be achieved through such cooperation.
In particular, the resolution calls upon the EU and the U.K. to work
constructively to achieve a climate for trade and investment that is
mutually beneficial and productive; and it notes that the continued
movement of goods, services, and capital between the U.K. and the EU is
important not only to the U.K. and the EU, but also to American
businesses invested in Europe and the U.S. economy generally. The U.S.,
the U.K., and the EU will all benefit as our countries work together to
become economically stronger and more geopolitically secure.
Finally, I would like to say a few words regarding the Trans-Pacific
Partnership, or TPP, agreement. I fought hard to secure TPA, in large
part, so that this administration would have the ability to secure a
strong TPP agreement. However, in a few important areas, TPP falls
short. I am committed to working with the administration to help to
improve on those shortcomings. In the meantime, it is essential that
the administration begin to work with our TPP partners to develop
meaningful country-specific implementation commitments.
During a hearing held by the Senate Finance Committee earlier this
year, members of the Committee heard assessments from American
exporters and stakeholders about the implementation of past free trade
agreements. It is an unfortunate fact that the Obama administration has
allowed free trade agreements to enter into force before ensuring that
our partners have taken all steps necessary to comply with their
obligations under the agreements. It is clear that more confidence
regarding effective implementation of trade agreements will be
necessary before the Congress approves TPP.
Moreover, as our TPP partners begin their domestic implementation
processes, concerns are growing that the measures that our trading
partners intend to take to implement TPP fall short of what is required
by the agreement. Failure by our trading partners to fully and
faithfully implement their TPP obligations threatens to reduce the
value of the agreement for U.S. businesses, workers, farmers, ranchers,
and consumers.
That is why it is essential that the Obama administration now work to
reach country-specific plans identifying the changes that our trading
partners must and will make to their laws, regulations, and practices
in order to meet their key TPP obligations. These country-specific
implementation commitments would provide a valuable tool for resolving
shortcomings and ambiguities in the agreement, while helping to build
confidence in the Congress that TPP will be implemented fully and
faithfully by our trading partners. Put simply, these country-specific
implementation commitments can be an essential component to developing
the political support necessary for the Congress to pass TPP
implementing legislation.
During the 114th Congress, we have successfully enacted a number of
strong trade policies that reflect and advance our national interest.
T-TIP and TPP negotiations represent important opportunities for the
administration to use the tools provided by Congress to help American
businesses, workers, and consumers to benefit from trade. We must
remain vigilant to ensure that our trade objectives are met and hold
the administration accountable for achieving the goals that the
Congress has established. At the same time, we need to look toward the
future.
The resolution that we are submitting today is designed to reinforce
our support for strong, market-opening agreements and to remind this
and future administrations that the Congress is, and will remain, an
active participant in formulating U.S. trade policy.
I urge all of my colleagues to join me in supporting this important
resolution.
____________________