[Congressional Record (Bound Edition), Volume 148 (2002), Part 4]
[Senate]
[Pages 4503-4504]
[From the U.S. Government Publishing Office, www.gpo.gov]




                       TRADE PROMOTION AUTHORITY

  Mr. HATCH. Mr. President, I want to speak on a subject that is very 
important to the American public--the importance of free trade and how 
free markets can help the United States and the worldwide economy.
  By working together to create and foster a free market atmosphere, we 
can help all nations that actively promote and participate in 
international trade to improve the economic futures of their citizens. 
This is good economic policy and good international relations.
  As the ranking Republican member on the International Trade 
Subcommittee and as a member of the Intelligence Committee, I can tell 
you that international trade has long been one of the most important 
foreign policy tools of the United States.
  Trade was a key component of our post-World War II international 
political and economic strategy. For more than 50 years, international 
trade contributed to stability and economic growth throughout the 
world. It helped lift the nations of Europe and Asia out of the ruins 
of World War II. And it helped millions of Americans experience 
unprecedented prosperity here at home.
  A large part of the reason that the Berlin Wall fell was the 
difference in economic performance and promise between a centralized 
command and central economy and free markets. International trade can 
play a similar role at the beginning of the 21st century. But, the 
United States must lead the way.
  I am pleased that the administration, led by President Bush, Commerce 
Secretary Don Evans, and our United States Trade Representative Bob 
Zoellick, has helped launch a new round of international trade talks. 
We all have an interest in making the next World Trade Organization 
ministerial succeed. I believe that success can only be enhanced if the 
Congress passes legislation on Trade Promotion Authority.
  In my view, the prospects of favorable progress in the next 
ministerial will increase if the United States signals to the world 
that--even while we undertake an unprecedented military mission against 
terrorism--we will continue to give our trade agenda a very high 
priority.
  Although there are some members of Congress who might think 
otherwise, I believe that the new round of trade negotiation is clearly 
in our national interest.
  Trade creates jobs--both at home and abroad. Trade can also help 
promote political stability in many regions of the world. It is in our 
national interest to foster free trade.
  Let's look at the facts. Ninety-six percent of the world's consumers 
live outside our borders. Based on that fact alone, the United States 
would be foolish not to pursue a vigorous trade agenda. But let me go 
on. Exports accounted for about 30 percent of U.S. economic growth over 
the last decade, representing one of the fastest growing sectors in our 
economy. Almost 97 percent of exporters are small or medium-sized 
companies and, as my colleagues are aware, small businessmen are the 
engine of job growth.
  In fact, almost 10 percent of all U.S. jobs--an estimated 12 million 
workers--now depend on America's ability to export to the rest of the 
world. Export-related jobs typically pay 13 percent to 18 percent more 
than the average U.S. wage.
  There are many reasons to believe that the best is yet to come in 
this dynamic sector. Economists predict that there could be a 33 
percent reduction in worldwide tariffs on agricultural and industrial 
products in the next WTO trade round. This action alone could inject an 
additional $177.3 billion into the American economy in the next 10 
years.
  I strongly support congressional passage for Trade Promotion 
Authority legislation this year. TPA will provide a measure of 
certainty to our trading partners that any agreement reached with USTR 
will receive timely congressional consideration and will not die a slow 
death by amendment.
  As part of granting this fast track authority, Congress naturally 
will expect extensive consultation and notification procedures.
  Success in passing TPA will require a close partnership between the 
executive and legislative branches of our government. The Constitution 
grants Congress the authority to promote international commerce. 
However, the Constitution also gives the President the responsibility 
to conduct foreign policy. Thus, the very nature of our Constitution 
requires a partnership between the executive and legislative branches 
of Government in matters of international trade negotiations. That is 
what the trade promotion authority bill is all about--a partnership 
between the executive and legislative branches of government to enable 
U.S. consumers, workers and firms to be effectively represented at the 
negotiating table. And, I might add, farmers as well.
  In my opinion, TPA is an essential tool for sound trade expansion 
policy, a tool we have been without since its expiration in 1994. For 
over a decade, the United States has too often sat on the sidelines 
while other nations around the world continued to form trade 
partnerships and lucrative market alliances. The lack of fast track has 
put the United States at a disadvantage during trade negotiations.
  As we come out of the economic slowdown, U.S. efforts to expand trade 
alliances around the world can help accelerate the economic recovery we 
are all hoping for. TPA can help put wind back into the sails of U.S. 
trade policy.
  Without Trade Promotion Authority, the United States is not the only 
loser. Since trade agreements must be mutually advantageous, workers in 
countries that were not able to complete agreements with the United 
States are also injured. Global economic growth is a tide that will 
lift many boats.
  Trade can be a win-win situation. There will always be criticisms 
that one side bested the other in any negotiation. Sometimes you come 
out a little ahead. Sometimes not. One thing is clear: If there is no 
trade agreement--both sides will lose out on opportunities for their 
citizens.
  Last year, the United States exported more than $780 billion in goods

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and services to more than 200 foreign markets. In fact, exports 
provided more than one-quarter of all economic growth in America. Jobs 
can be created in agriculture, high technology, manufacturing, 
financial services and other industries. We know this to be true.
  Free trade is not just a matter of economics. It is a fundamental 
aspect of American foreign policy. Through trade our values are 
reflected abroad and citizens of developing nations have the 
opportunity to teach us about their culture and we can all discuss 
shared values.
  As President Bush stated in his address on trade issues on April 4:

       Fearful people build walls around America. Confident people 
     make sure there are no walls.
       . . . I am confident. I'm confident in America products, 
     I'm confident in American entrepreneurs, I'm confident in the 
     American worker, I'm confident in the American know-how, I'm 
     confident in America's farmers, I'm confident in America's 
     ranchers. We need to be a trading nation.

  I could not agree more with the President. Market-opening trade pacts 
with developing nations not only present an opportunity for the United 
States to increase American sales of U.S. goods and services abroad, 
they also can serve as a catalyst to bring stability and prosperity to 
economically stagnant nations of the world.
  America's engagement in world affairs and trade can project to our 
strengths and values. Vigorous efforts to forge free trade alliances 
between the United States and developing countries will help to foster 
respect for the rule of law, competition and free-market principles in 
the developing world.
  As Majority Leader Daschle noted in a floor speech on March 21 in 
support of Trade Promotion Authority legislation:

       Expanding trade also offers national security and foreign 
     policy benefits because trade opens more than new markets. 
     When it is done correctly, it opens the way for democratic 
     reforms. It also increases understanding and interdependence 
     among nations, and raises the cost of conflict.

  I think that Senator Daschle makes a compelling point. We need to 
keep up strong, international economic leadership and help more nations 
become prosperous. Trade can help us create new jobs, both at home and 
abroad, and help change the conditions that breed poverty and 
instability overseas.
  TPA is also good for Utah. The fact is that TPA can help bring new 
jobs into Salt Lake City and across my State. Here are the facts: trade 
has benefitted my home State of Utah. For example Utah's manufacturers 
produced and exported $2.52 billion worth of manufactured items to 164 
countries around the world. In fact, an estimated 61,400 Utah jobs are 
trade dependent and one in every six manufacturing jobs in Utah--
approximately 20,300 jobs--are tied to exports. Furthermore, the bulk 
of international trade and export in Utah benefits small and medium 
sized companies. About 80 percent of Utah's 1,894 companies that export 
are small and medium sized businesses. Our record is good, but we can 
do even better.
  TPA is good for America. The passage of TPA improves the quality of 
life for American consumers by providing a greater choice of goods at 
better prices. Past agreements have benefitted the typical family of 
four an estimated $1,300 to $2,000 a year. Future agreements stand to 
save Americans thousands more every year. TPA also builds on previous 
market-opening successes such as the North American Free Trade 
Agreement that generates $1.2 million a minute in trade for American 
exporters.
  While we have important foreign policy goals that can be advanced 
through a rigorous program with respect to international trade, let us 
not forget Tip O'Neill's famous observation: ``All politics is local.''
  So, for both economic and foreign affairs considerations, I am 
hopeful that before our work is completed this fall, we will have taken 
up the bill that the Finance Committee approved--by the overwhelming 
margin of 18-3 I might add--and send it forward to the President for 
his signature.
  The Finance Committee has done its work. I want to commend Chairman 
Baucus and ranking Republican member Grassley for leading the way for 
this bipartisan achievement. I also want to recognize the efforts of 
Senators Bob Graham and Frank Murkowski for their important 
contribution to achieving this consensus.
  I urge the majority leader and Republican leader to act in a way that 
will advance American interests abroad by bringing the TPA bill up for 
debate and action.
  I recognize that the reality is that the Senate will in all 
likelihood also act favorably on Trade Adjustment Assistance 
legislation--TAA--or the TPA bill will stall. So be it. I am for both 
TPA and TAA in any order, tied or untied. But let me be clear, I am not 
for a loaded up TAA bill with health care provisions.
  Let's get the job done for the American people. My constituents from 
firms like Geneva Steel need assistance to cushion their loss of jobs 
lost through trade. But in addition to TAA, we need TPA to open new 
markets for the workers of Utah and others throughout the United 
States.
  Now is the time for the Senate to take up and pass Trade Promotion 
Authority. Now is the time.
  The longer we wait to come together on fast track authority--
authority that will undoubtedly provide billions of dollars to our 
economy through increased trade--means the longer that American 
families will have to endure a less than optimal economy. As the 
President noted ``Every day we go by without the authority is another 
day we are missing opportunities to help our economy, to help our 
workers, to help our country, to relate to our friends around the 
world.'' President Bush is right on target.
  In closing, I urge passage of the Trade Promotion Authority 
legislation. It is my hope that the majority leader will give us a date 
certain when the Senate will have the opportunity to act on this 
important legislation. I hope that we pass TPA before Memorial Day.

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