[Congressional Record Volume 165, Number 119 (Tuesday, July 16, 2019)]
[Senate]
[Page S4830]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                                TREATIES

  Mr. McCONNELL. Madam President, speaking of economic growth and 
development, the Senate will soon turn our attention to a number of 
bilateral tax treaties with important U.S. trading partners. We have 
these kinds of agreements in place to reduce tax evasion, tax 
avoidance, and unfair double taxation of U.S. citizens and businesses 
who conduct businesses overseas. The four we will consider this week 
are agreements with Spain, Switzerland, Japan, and Luxembourg.
  The U.S. Government and each of these foreign governments have 
painstakingly negotiated updates to existing agreements about how 
certain kinds of commerce would be taxed and which country will tax 
them. In short, Senate ratification of these protocols would mean less 
confusion, more certainty, and, often, fewer taxes for U.S. job 
creators--and, by the way, a simpler rule book for overseas investors 
who want to invest their money here. Fairer treatment for our own 
American job creators and more enticement for foreign investment to 
head to our country--that is what we would call a win-win.
  We are talking about a serious economic impact. In addition to the 
four countries we are tackling this week, there are three more nations 
with tax treaties pending which I know the administration is continuing 
to work on with the Foreign Relations and Finance Committees to 
finalize work on these remaining agreements.
  Combined, these seven foreign countries invest more than $1.2 
trillion in the United States. That is more than $1 trillion in foreign 
investment and, by some estimates, hundreds of thousands of U.S. jobs 
are tied up, either directly or indirectly, in trade with these 
countries.
  These trading relationships touch all 50 States. Every one of my 
colleagues is familiar with communities that benefit from the foreign 
investment. For my part, that includes thousands of workers in 
Kentucky.
  One major manufacturer with ties to Spain employs 1,500 people in my 
State. It accounts for more than one third of all the stainless steel 
produced in the United States every year. Over the three decades it has 
operated in Carroll County, the surrounding communities benefited from 
more than $60 million in tax revenue.
  That is just one of many job creators in my home State, and it is far 
from the only one with a serious interest in seeing these measures get 
across the finish line. From consumer goods makers to industrial 
suppliers, Kentucky continues to welcome job-creating investment from 
around the world.
  I think practically every American is familiar with Hot Pockets, a 
culinary staple of busy families, workers, and college students 
everywhere. But not everyone knows that, as of several years ago, every 
single Hot Pocket is cooked in Mount Sterling, KY. The facility employs 
more than 1,000 Kentuckians. The parent company is Nestle, based in 
Switzerland. So there are not only hard-working Kentuckians but also a 
lot of hungry consumers across the country who can understand why we 
need to keep our international trade in sync.
  Passing these agreements will help every State to keep up the 
economic momentum. It will reinforce the international trade that is so 
essential to our economic success and help stave off further trade 
disruptions. I urge all of our colleagues to join me in voting for 
these this week.

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