[Congressional Record (Bound Edition), Volume 145 (1999), Part 17]
[Extensions of Remarks]
[Page 24304]
[From the U.S. Government Publishing Office, www.gpo.gov]


[[Page 24304]]

                     U.S. TRADE DEFICIT RISES AGAIN

                                 ______
                                 

                        HON. WILLIAM O. LIPINSKI

                              of illinois

                    in the house of representatives

                       Wednesday, October 6, 1999

  Mr. LIPINSKI. Mr. Speaker, on September 21, the U.S. Department of 
Commerce issued its regular report on the U.S. trade deficit for the 
month of July. It should be no surprise to many of my colleagues in 
this chamber that the deficit has risen again. It has, in fact, grown 
to $25.2 billion, a 2.4 percent increase from June.
  The U.S. deficit set new records with Japan, China, and Western 
Europe. Foreign products flood our shores, an there's nothing being 
done. In 1998, the U.S. trade deficits with China and Taiwan accounted 
for nearly one-third of the total U.S. trade deficit. The deficit with 
China alone skyrocketed from $3.5 billion in 1988 to nearly $60 billion 
in 1998, and Taiwan is consistently one of our top ten deficit trading 
partners.
  Nobody seems to notice or care about this problem. Foreign trade 
becomes a larger and larger portion of our economy. Exports plus 
imports represent over twenty percent of the U.S. gross domestic 
product. We ignore it at our own peril. Most economists argue that the 
trade deficits do not matter. I strongly disagree. Even Alan Greenspan, 
Chairman of the Federal Reserve, said, ``unless reversed, our growing 
international imbalances are apt to create significant problems for our 
economy.''
  Consequently, huge bilateral trade deficits means lost trading 
opportunities and ultimately means lost American jobs. While rosy 
unemployment figures hide the fact that over the last year 422,000 
Americans lost good-paying manufacturing job to workers overseas, 
families continue to labor to make ends meet in low-paying service 
sector jobs.
  While I recognize the fact that the U.S. Trade Representative has 
done much to improve market access, I strongly believe we can still 
make significant gains. Consider we have one of the largest markets in 
the world. Every nation wants to sell their product to us, and we must 
more effectively utilize this leverage. It comes down to a simple 
proposition. If foreign nations don't let us fairly sell American 
products in their markets, we shouldn't let them sell their products in 
America. We're only asking for what is fair. We're only asking for a 
level playing field, and we're not even getting that.
  This is a real problem, and I submit that with most problems, there 
is usually a simple solution.
  Mr. Speaker, I call upon the U.S. Trade Representative to step up 
efforts to tear down those tariff and non-tariff trade barriers that 
impede American exports to those nation, especially China and Taiwan. 
By opening up those huge consumer markets to American products, we can 
do so much for American workers. Open up those markets, level the 
playing field, increase American exports, and create American jobs. 
It's as simple as that.

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