[Public Papers of the Presidents of the United States: George H. W. Bush (1992, Book I)]
[April 23, 1992]
[Pages 632-636]
[From the U.S. Government Publishing Office www.gpo.gov]



Remarks to the Forum of the Americas

April 23, 1992
    Please be seated. And David, thank you, sir. And thank you for your 
really vital work in rallying the private sector and congressional 
support for the North American free trade agreement, for the Enterprise 
for the Americas Initiative. And let me say to his many friends here 
that David's personal involvement has been a major factor in the success 
we've enjoyed so far with both of these significant initiatives. And I 
also want to pay my respects to another old friend, Ambassador George 
Landau of the Americas Society, and Antonio Del Valle of the Business 
Council of Latin America, and Tom d'Aquino of the Business Council on 
National Issues. And I am grateful for all your leadership.
    I understand also--and I can't see too well out here with these 
bright lights--that somewhere out there sits an old friend, a former 
colleague at the United Nations who went on to greater heights than 
being an ambassador there, an old friend, Javier Perez de Cuellar, is 
with us. And I am just delighted that he could be here. And I just wish 
I could see him. Javier? There he is.
    And may I particularly welcome all of our guests from south of the 
Rio Grande, leaders from both the public and the private sectors. I see 
several ambassadors here and many others that are in the Government 
sector but so many from the private sector. And we salute you for your 
leadership. And let me just say this: Public or private, from the United 
States, we are glad to be your partners.
    And I can't think, really, of a more important moment than now to 
convene again this Forum of the Americas. Over the last 3 years, we've 
seen our world literally transformed: the Berlin Wall torn down and

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Germany peacefully unified, the people of Eastern Europe and the Soviet 
Union liberated from communism, and South Africa's historic vote to 
reject apartheid. And we've seen Arab neighbors negotiating for the 
first time face to face with Israel, and a worldwide coalition under the 
banner of the United Nations stand up and turn back Iraqi aggression 
against Kuwait. And there's been a profound change with meaning for 
every man, woman, and child on the face of the Earth. And we have 
drastically reduced--and this is one I take great pleasure in having 
been a small part of--we have drastically reduced the threat of nuclear 
war.
    And just today, the United States took steps to facilitate trade in 
high technology goods, an initiative made possible by the changed 
strategic environment and the peaceful rebirth of freedom in the 
formerly Communist lands. We relaxed trade restrictions on exports that 
served us well during the cold war era but are no longer necessary in 
our new world. And our actions today will eliminate requirements for 
thousands of export licenses, including many that affected computers, 
one of our strongest export earners. Trade covered today by today's 
deregulation amounts to about $2.5 billion.
    Here in our own hemisphere, the Americas have launched an era of 
far-reaching and hopeful change. We've made history, all of us. We're 
well on our way to creating something mankind has never seen, a 
hemisphere wholly free and democratic, with prosperity flowing from open 
trade.
    From Mexico City to Buenos Aires, that vision is becoming a reality. 
For the first time in many years, more private capital is flowing into 
the Americas for new investments than is flowing out. In country after 
country, the hyperinflation that literally devastated the region's 
economies, particularly its poor, has been halted. In nearly every 
nation, real growth has returned. A growing number of nations are taking 
advantage of the Brady plan, an important initiative of our 
administration designed to reduce the debt burden on our neighbors and 
set the stage for the renewal of growth. Barriers to trade and 
investment are coming down. Go to the financial centers of the world, 
and you'll get the same message: One of the most exciting regions for 
investment is Latin America.
    Alongside this economic revolution, we have witnessed and played a 
vital role to shape a political revolution just as powerful. Two years 
after we initiated Operation Just Cause, Panama has replaced the 
repression of the Noriega era with freedom and democracy. In El 
Salvador, after 12 years of civil war, our consistent efforts have 
brought peace. In Nicaragua, we succeeded in our goal of restoring peace 
and democracy through free elections. And throughout Central America, 
civilian presidents hold office, and the principle of consent of the 
governed is now firmly established. And in South America, Chile and 
Paraguay have rejoined the community of democracies.
    This peaceful revolution throughout the Americas did not happen by 
accident. It is the work of a new generation of courageous and committed 
democratic leaders with whom we have worked closely in pursuit of common 
goals, those leaders supported by this dynamic private sector that is so 
beautifully represented here tonight.
    The new spirit was demonstrated in June of last year, when the OAS 
General Assembly passed a resolution designed to strengthen the 
international response to threats to democracy. Consolidating this 
revolution will not be easy; we understand that. Millions of people in 
our hemisphere are still mired in poverty and political alienation. 
Recent events in Haiti, Venezuela, and Peru remind us that democracy is 
still fragile and faces continued dangers. In all our nations, powerful 
special interests cling to old ideas and privileges, promote 
protectionism. They resist expanded trade.
    For the diehards, for Castro's totalitarian regime, for those in the 
hemisphere who would turn the clock back to military dictatorship, for 
the stubborn holdouts for economic isolation, I want to make one point 
clear: Hundreds of millions of Latin Americans share a faith in human 
freedom and opportunity. And I stand with them. And as long as I am 
President of this great country, the United States will devote its 
energies to the true and lasting liberation of the people of the Western 
Hemisphere.

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    Sharing the democratic spirit makes a difference on every issue we 
care about. Democracy's rebirth led Argentina and Brazil to join hands 
to halt the spread of nuclear arms. Democracy energized Brazil to slow 
deforestation of the Amazon rain forest. Democracy gave Argentina the 
will to stop the Condor ballistic missile program financed by Libya and 
Iraq. Colombia's democracy is leading the fight against the drug trade 
and working to restore its economic vitality. The restored democracy in 
Panama has passed tough new laws to combat money laundering, and it's 
working to renew its importance as an East-West trade corridor.
    Make no mistake: Political and economic freedom are linked; they are 
inseparable. And just as people have a God-given right to choose who 
will govern them, they also must be free to make their own economic 
choices. When we lift barriers to economic freedom within and among our 
countries, we unleash powerful forces of growth and creativity.
    Before I leave office I want manufacturers in Cleveland to enjoy 
virtually the same access to markets in Monterrey as they now have in 
Minneapolis. And with new technologies, creators of services in Denver 
may be able to tap markets in Santiago as readily as those in Chicago. 
I'll work to assure that Government protection and excessive regulation 
don't stand in their way. To do this, we'll have to overcome the stunted 
vision of some special interests. And I am determined that we can and 
will do exactly that.
    I've made it a top priority to conclude a free trade agreement 
designed to remove all tariffs on trade between the United States, 
Canada, and Mexico. This agreement will build on our historic free trade 
agreement with Canada. The success of the agreement with Canada 
demonstrates how free trade can benefit all concerned.
    We cannot achieve this breakthrough by equivocating between the 
status quo protectionists and the movement for freedom and change. Some 
suggest that we can hide in a cocoon of protection and pretend still to 
benefit from the fresh air of competition. Well, if there's ever an 
audience that understands this, you and I know that is simply wrong-
headed. Our economic future must not depend on those who pay lip service 
to free trade but full service to powerful special interests. We cannot 
have it both ways.
    In our own War for Independence, those who took this kind of stand 
were known as the ``summer soldiers.'' And they wanted the glory of the 
revolution without showing the gumption to stand for freedom even in 
tough times. Our stand is clear; my stand is clear: Open trade is vital 
to this country, to the United States, and every bit as vital as 
domestic reforms to renew our system of education, health care, 
Government, and administration of justice.
    A free trade area comprising the United States, Mexico, and Canada 
would be the largest market in the entire world: 360 million consumers 
in a $6 trillion, $6 trillion economy. Mexico--and I salute its 
President, its business people here tonight--Mexico is among the fastest 
growing national markets for U.S. exports today. And over the last 3 
years alone, American merchandise exports to Mexico have increased by 
two-thirds, two-thirds. Our exports of autos, auto parts, 
telecommunications equipment to Mexico have doubled. And while members 
of this audience may be aware of this, I doubt it is widely known in the 
United States that two-thirds of all imports into Mexico come from the 
United States.
    It's not just the border States that profit from this growth. During 
my Presidency, 45 of our 50 States have increased their exports to 
Mexico. Our top 10 exporters to Mexico today include Michigan, Illinois, 
New York, Louisiana, Pennsylvania, Florida, and Ohio, as well as Texas, 
California, and Arizona, those border States.
    Trade with Mexico already supports hundreds of thousands of U.S. 
jobs. And just as an example: Thousands of good jobs in Warren, Ohio, 
and Rochester, New York, depend on sister plants in Mexico to keep their 
products competitive. A North American free trade agreement would create 
thousands more. It would create competitive efficiencies and economies 
of scale that will help American companies compete in world markets.
    Free trade with Canada and Mexico will make all of us winners in 
economic endeavor, but our relationship goes well beyond

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trade. We share borders that span the continent. We're linked by 
centuries-old ties of family and culture. I share a warm friendship with 
Prime Minister Brian Mulroney of Canada, whom I consult frequently. I 
count President Carlos Salinas also as a dear friend. And he and I have 
been promoting the ``spirit of Houston'' ever since our summit meeting 
just after both of us were elected in 1988. And both President Salinas 
and Prime Minister Mulroney are bold and imaginative leaders, and I am 
committed to working with them to forge enduring friendship among our 
countries based on open trade, cooperation, and mutual respect.
    Now, you may have heard some suggest that politics will dictate 
delaying the North American free trade agreement until after the 
election. Well, let me say this: These voices are not speaking for me. 
The time of opportunity is now. I have instructed our negotiators to 
accelerate their work. I believe we can conclude a sound, sensible deal 
before the election. I want to sign a good agreement as soon as it is 
ready. And there will be no delay because of American politics.
    Now, to other friends here let me say this: The North American free 
trade agreement is only a beginning. Our Enterprise for the Americas 
Initiative already has made noteworthy progress to open markets, expand 
investment flows, reduce official debt, and strengthen the environment 
throughout the hemisphere.
    The Enterprise for the Americas Initiative reflects a revolution in 
thinking. Through this initiative, the United States is not seeking to 
impose our ideas on our neighbors. Rather, our program is designed to 
empower them to succeed with free market economic reforms they've chosen 
on their own, ideas developed in Latin America for Latin Americans.
    The courageous Latin American leaders who are reforming their 
economies and breaking down barriers to trade and investment need our 
support. And they are the true liberators of our era. True success will 
mean opening up statist systems formerly rigged to protect wealthy 
elites and closed to working people and the poor. Free market reforms 
will banish burdensome regulations that now prevent the urban poor from 
starting new businesses or campesinos from gaining access to credit and 
title to their land. Economic reform must also include honest 
government. Corruption is the enemy of both growth and democracy. New 
investment will flow only where the rule of law is secure, the courts 
are fair, and bidding processes are open to all.
    To support reformers, to realize the hopeful new vision in Latin 
America, the United States Congress must meet its responsibility. I 
asked Congress to take long overdue action, to invest $310 million in 
this fiscal year under the Enterprise for the Americas Initiative. With 
this, we could write off more than $1 billion in the hemisphere's 
official debts and generate millions of dollars to preserve the 
environment. But regrettably, Congress has refused to approve any funds 
for this purpose. Congress apparently doesn't believe in return on 
investment, but I do. And our truckers and railroad people do. And our 
auto and electronics makers do, as do our environmental engineers and 
many, many more.
    I have helped persuade our allies in Europe and Japan to contribute 
nearly two-thirds of a $1.5 billion fund to help Latin American 
reformers. This fund, administered by the Inter-American Development 
Bank, would help people privatize old state enterprises at the grass 
roots, with job retraining and small business loans. But Congress has 
refused to vote a penny for the U.S. share. I will keep on fighting for 
these vital programs of the Enterprise for the Americas Initiative until 
Congress demonstrates the vision and fortitude to provide the support 
they deserve. And if we can invest in the transformation of Eastern 
Europe and the old Soviet Union, and we must do so, then we can and must 
invest in the efforts of our closest neighbors on their peaceful road to 
true liberation and prosperity.
    The United States' economic destiny is linked to Latin America's. No 
army of protectionists can change that. When Latin America suffered its 
debt crisis of the early eighties, 1980's, we suffered through a 
corresponding drop in trade. We did. If you don't believe me, ask 
Caterpillar workers

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from Illinois or employees from Cessna in Kansas. Ask them if they 
suffered when our best customers in Latin America were in crisis.
    With the rise of democracy and economic reform, U.S. exports to 
Latin America have surged by nearly one-third in just 2 years, from $49 
billion in 1989 to $63 billion in 1991. This is a much faster rate of 
growth than for our exports to Asia or Europe. It points to the fact 
that a stable, prosperous Latin America is a natural market for United 
States goods and services. Strengthening our neighbors' economies will 
result in more exports and more good jobs for people in the United 
States.
    When any of us speak with our friends outside the Western 
Hemisphere, we need to assure them as clearly as possible there is 
nothing exclusionary in our vision of open trade and economic 
integration in our hemisphere. Our aim is simply to lower barriers to 
economic freedom within and among the nations of the Western Hemisphere, 
not, I repeat, not to create any barriers between ourselves and the 
nations of Africa, Europe, and Asia. All of our aims are consistent with 
the global policies of GATT.
    And I would just like to commend the superb leadership of Arthur 
Dunkel, GATT's Director General, who spoke to you earlier today. And I 
want to assure you I urgently want to open up global markets through 
success with the Uruguay round. We all, all of us from whatever country 
in the Western Hemisphere, have a stake, a big stake, in a successful 
conclusion of the Uruguay round of the GATT.
    And if the equivocators and the protectionists and the pleaders for 
the special interests want to debate this, bring them on. I will take 
the case for increased trade to the people in every corner of the United 
States of America. And I will make this abundantly clear: Free trade 
means more exports, more investment, more choices, more jobs for 
Americans. Our great country is the number one exporter in the world, 
over $422 billion last year. Imagine that, $422 billion. And we intend 
to pursue trade policies to keep that growth up now and in the future. 
And we will knock down barriers wherever we find them to open markets, 
for instance, for our computer software, movies, books, and 
pharmaceuticals. We will fight hard against protectionism both at home 
and abroad.
    And five centuries ago, a man of courage and vision set sail from 
Europe searching for new trade routes and opportunities. And he defied 
the timid counsel of those who said the Earth was flat. Christopher 
Columbus' voyage to the Americas transformed human history. Columbus was 
an entrepreneur, and the risk he took 500 years ago continues to pay off 
abundantly today. And today, we still have to combat the flat-Earth 
mentality, the mind-set that urges us to barricade our borders against 
competition, to shut off the free exchange of food and machinery and 
skills and ideas.
    But the future does not belong to the status quo. It is the legacy 
of people like yourselves, people with far-sighted vision and then a 
spirit of enterprise. The future awaiting the Americas is a time of 
rediscovery, a time for empowering the poor through new investment, 
trade, and growth, a time for cultural renewal. Our efforts and the 
efforts of millions of citizens of the Americas can achieve new gains 
for honest, democratic, limited government. And together, we can usher 
in a new order of peace, a new time of prosperity, both animated by 
personal freedom.
    Thank you all very much for what you are doing to strengthen free 
trade in this hemisphere. And let me say again how grateful I am to 
David and the other leaders of this wonderful organization for 
vitalizing and getting that private sector involved in all of these 
decisions. It is an absolutely essential ingredient if we are going to 
succeed in a course that is mutually beneficial.
    Now, I heard you were having broccoli for dinner, so I'm out of 
here. Many, many thanks. And may God bless you all.

                    Note: The President spoke at 8 p.m. at the Sheraton-
                        Washington Hotel. In his remarks, he referred to 
                        David Rockefeller, chairman of the Americas 
                        Society.