[Congressional Record (Bound Edition), Volume 145 (1999), Part 6]
[Senate]
[Pages 7626-7627]
[From the U.S. Government Publishing Office, www.gpo.gov]




                    INTERNATIONAL TRADE AND FINANCE

  Mr. BAUCUS. Mr. President, I rise to note that this week the world's 
finance ministers and central bank presidents have gathered in 
Washington for the annual meeting of the World Bank and the 
International Monetary Fund. I suspect that Secretary of the Treasury 
Rubin reminded us last week that, despite the hype about the end of the 
world's financial crisis, we are just at the starting point of making 
those structural changes necessary to put the globe back on a solid 
growth path.
  Obviously, it is critical to repair the global financial system, and 
Secretary Rubin has been the leader in this with excellent ideas. But 
there is a whole other piece, which we can't ignore; that is, the need 
to maintain and expand an open trading system. Take a look at some 
troubling trade statistics released last week.
  First, the United States merchandise trade deficit in February hit an 
all-time record--over $19 billion. Imports into the United States are 
growing faster now than at any time in the last four years. 
Furthermore, American exports are lower than they were just one year 
ago. And remember that one billion dollars in exports equals about 
12,000 jobs.
  Japan and China seem to be in a race to see who will have the largest 
deficit with us. Japan's trade deficit with the United States in 
February was over $5 billion, while China's was a little under $5 
billion.
  There is more. Another troubling statistic was the World Trade 
Organization announcement that last year the world's exports grew only 
3.5 percent. That compares to a 10.5 percent growth rate in 1997. And 
they expect the growth of world trade to slow down even further this 
year.
  Third, and this is even worse news, while imports into North America 
were up 10.5 percent, our exports from North America, which means 
mainly the United States, rose only 3 percent last year. That is, 
imports rose three and a half times faster than exports.
  All this means that the world economy is surviving by exporting a lot 
to us while importing less and less.
  Why is this?
  A major reason is that our economy is so much stronger today than any 
others. This is due to American economic strength and competitiveness, 
as well as to the global financial turmoil that has hurt so many of our 
trading partners.
  But another significant reason for the growing trade deficit is the 
continuing discrepancy between the openness of our market versus the 
openness of others. It is true that once the world emerges from the 
financial crisis and global recovery begins to kick in, these numbers 
will change somewhat. However, the trade barriers that existed prior to 
the start of the global financial crisis are still there today and will 
still be there tomorrow.
  If Secretary Rubin and other financial leaders succeed in their 
efforts, foreign economies will pick up later this year or next. We 
should see an increase in our exports as those economies need American 
capital goods and start buying more consumer products. But, economic 
recovery overseas does not mean that trade barriers will disappear. We 
must deal aggressively with barriers to our goods and services to take 
advantage of this opportunity for greater export growth.
  That is why we must always keep market opening and trade 
liberalization on the top of our national agenda, aggressively 
negotiating new agreements, insisting on full implementation of 
existing agreements, and repairing those aspects of our trade law that 
are not working.
  Our farmers, manufacturers, and service providers are the most 
efficient in the world. They must have the same freedom to do business 
overseas that foreign businesses have in our country. And it is the 
duty of the Congress and the Administration to ensure that those 
opportunities exist.
  We have all been pretty frustrated by the European Union's 
unwillingness to abide by WTO decisions on beef and bananas. In fact, 
Europe's reaction to the WTO beef hormone decision is to become even 
more protectionist. We have also been frustrated by Japan's 
unwillingness to implement its trade agreements with the United States. 
A recent study concluded that Japan was implementing fewer than one-
third of those agreements.
  One possible bright side to this picture, however, lies in the WTO 
negotiations with China. USTR, USDA, and other agencies have done 
yeoman's work over the past month. I hope the agreements made thus far 
with China hold together and the negotiations underway can bring it to 
a conclusion. We have an opportunity to expand significantly American 
exports in many sectors--agriculture, manufacturing, and services, for 
example. Another example of this is the Pacific Northwest wheat 
agreement, which has been a problem

[[Page 7627]]

for us in the Pacific Northwest. China now agrees that we will be able 
to sell our Pacific Northwest wheat to China.
  Mr. President, I firmly believe that opening markets is profoundly 
important for our national well-being. But it requires persistent, 
aggressive, high-level attention at all levels of our government. I 
will do everything in my power to ensure that this is done.
  Mr. President, I yield the floor and suggest the absence of a quorum.
  The PRESIDING OFFICER (Mr. Hutchinson). The clerk will call the roll.
  The legislative assistant called the roll.
  Mr. TORRICELLI. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.

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