[Congressional Record (Bound Edition), Volume 146 (2000), Part 9]
[Extensions of Remarks]
[Page 12377]
[From the U.S. Government Publishing Office, www.gpo.gov]


[[Page 12377]]

                          EXTENSIONS OF REMARKS

WITHDRAWING APPROVAL OF UNITED STATES FROM AGREEMENT ESTABLISHING WORLD 
                           TRADE ORGANIZATION

                                 ______
                                 

                        HON. ROBERT A. UNDERWOOD

                                of guam

                    in the house of representatives

                         Friday, June 23, 2000

  Mr. UNDERWOOD. Mr. Speaker, I rise in strong opposition to this 
resolution. To even consider that the United States should leave the 
WTO would be tantamount to a jockey jumping off his horse in the middle 
of the race. The United States became a major industrial power at the 
tail end of the 19th Century. By the end of the Second World War, the 
United States was the world economy, providing aid to war tom Europe 
and Asia. Since that time, the U.S. has recognized the intrinsic 
strategic importance of remaining powerfully engaged in the global 
economy. With this in mind it is rather irresponsible for us to be 
considering this resolution at all.
  To be sure, I do not agree with every WTO decision. Last Fall, the 
WTO panel issued a final report that subsidies for Foreign Sales 
Corporations under U.S. tax laws violated the WTO Subsidies Agreement. 
U.S. negotiators have since worked in good faith on a proposal to 
retain many of the tax benefits of the FSC structure, while 
establishing a new structure which would be responsive to the European 
Union's challenge.
  I am pleased that the U.S. Treasury Department is moving forward 
despite the recent rejection by the European Union of its proposal by 
submitting its proposal to Congress in order to meet the October 1 
deadline set by the WTO to comply with its ruling.
  However, I simply want to express my concern on the manner in which 
the U.S. export sector has dealt with the U.S. territories that 
currently benefit from FSCs. That is, the U.S. territories seem to be 
an afterthought as U.S. companies reap $3.6 billion in tax benefits 
annually. In Guam, there are around 211 FSC licensees, 
generating,around $170,000 to the Government of Guam.
  I have conveyed my concerns to Chairman Archer and Representative 
Rangel and I am pleased that they will work with the U.S. territories 
as this proposal moves through Congress. I hope that the Administration 
and the U.S. exporting industry extends to the U.S. territories the 
same consideration as U.S. strategy on this important issue continues.]
  Mr. Speaker, I am deeply concerned about international labor rights, 
worker health and safety concerns, foreign environmental standards, and 
the convoluted and secret rules and procedures of the WTO. But, Mr. 
Speaker, none of these urgent areas will get any attention if we pull 
out of the WTO. As we saw from the protests at the WTOs 3rd Ministerial 
Conference in Seattle there are many concerns regarding the policies 
and practices of the organization that seriously need to be addressed. 
Even President Clinton agrees that there are many reforms that are 
needed to the WTO in order that it include greater protection for 
foreign laborers and the environment.
  Nevertheless, in order for the U.S. to reform the WTO, it has to be a 
part of it. The Council of Economic Advisors has noted that since 1994, 
approximately one-fifth of U.S. economic growth has been linked to 
exports. As the world's largest exporter, the United States is the 
country that gains the most from an open multilateral trading system.
  What this body should do is work on a resolution that creates an 
agenda for the Administration, which comprehensively articulates all 
the attendant concerns that Congress has regarding the WTO. This 
constructive approach would no doubt be a more useful instrument of 
policy than this current attempt at isolationism.
  Mr. Speaker, I will close by quoting the Ways & Means Committee 
report on this resolution, which I support: ``H.J. Res. 90 is dangerous 
and illogical, because it would isolate the United States from this 
system and damage our leadership in the international economy, thereby 
undermining U.S. national economic and security interests.''

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