[Weekly Compilation of Presidential Documents Volume 32, Number 16 (Monday, April 22, 1996)]
[Pages 657-661]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Remarks on Trade With Japan and the Recess Appointment of the Secretary 
of Commerce and the Nomination of the OMB Director

April 12, 1996

    Thank you very much. Mr. Vice President, Ambassador Kantor, Senator 
Levin and Congressman Levin, all the distinguished leaders from the auto 
industry and Mr. J.C. Phillips from the UAW, and to Jim Hill, all the 
people here from the agencies that are part of our Nation's economic 
team that really worked so hard to achieve these results. I welcome all 
of you here.
    I want to thank you for what you said, Jim. I am a car guy. I was 6 
years old the first time I crawled underneath a 1952 Buick in my 
father's tiny dealership in Hope, Arkansas, population 6,000, and I 
never quite got over it. And one of the things that I promised myself I 
would do if I ever got a chance to have an impact on it was to give the 
American automobile industry the chance to be rewarded for its 
willingness to compete. And that is what we have worked hard to do in 
this administration.
    I just saw something--Mickey Kantor and I walked outside, along with 
the Vice President, Mr. Panetta, and I saw something I never thought I 
would live to see. And just 4 years ago, if you had told me that I would 
see it, I'm not sure I would have believed it--right-hand drive American 
models made by American workers in American plants bound for Japan; a 
Ford Taurus, a GM-built Cavalier, a Chrysler Neon built for the Japanese 
market where consumers are now freely buying tens of thousands more 
American cars than ever before. These new exports, as others have said, 
are the results of efforts by our car makers and our economic team. We 
have worked to expand our trade on fair terms not only with Japan but 
with others throughout the world. These exports show what we can do when 
we truly work together and when others work with us in a spirit of 
cooperation and mutual benefit.
    The boost in sales is tremendous news for American workers, for our 
auto and auto parts manufacturers, for our strong relationship with 
Japan. I also want to say it is good news for the people of Japan. When 
I first went to Japan in 1993, I said to the Japanese people what I will 
have the opportunity to reiterate in just a couple of days: We have no 
more important bilateral relationship. We are bound together in our 
support for democracy and freedom and for the security of freedom-loving 
peoples in Asia and now elsewhere as Japan has shouldered bigger and 
bigger burdens to help us all pursue the goals that we share. We also 
know that if we have a free and open trading relationship with them, it 
will help their economy, it will give their consumers more choices, and 
it will help both nations to be more competitive as we hurtle our way 
forward into the 21st century.
    Just 3 years ago our ties were strained by a trading relationship 
not beneficial to our Nation. The trade wasn't working, but the ties 
weren't working either. Today our relationship is working better for 
both of us. There's a lot to be done. In a big and complex relationship 
like ours there will always be a lot to be done. But we are 
strengthening and deepening our relationship. It is now a powerful force 
for creating opportunity, for advancing democracy, and for improving the 
quality of life in both our countries.
    I also want to say that, as Ambassador Kantor said earlier, I 
believe that the right kind of trade is critical for our Nation's 
future. I believe the position of the United States must always be that 
we favor open trade. We are not afraid to compete. We believe we can 
win. But if we're going to live in a world where we want others to raise 
their standard of living to our level, and we no longer control anything 
like the percentage of the gross national product we did at the

[[Page 658]]

end of World War II, then, fine, we'll compete, and we'll help others to 
advance. But we expect the same access to foreign markets that we give 
foreign producers to ours. It is a simple rule and one we have followed. 
It is a critical part of our economic strategy.
    When I became President job growth was slow, the deficit was 
exploding, more than twice as high as it is now. We did two things. We 
put in place an economic strategy, lowered the deficit, cut it in half 
in 4 years, get interest rates down, increase investments in education 
and training, in research and technology, reform and shrink and make 
more effective the National Government, and expand trade on terms both 
free and fair. That strategy has been implemented by a national economic 
team, the first time we ever had a fully functioning National Economic 
Council to parallel our National Security Council, to integrate, plan, 
and implement the economic strategies of this country and to work in 
full partnership with the private sector.
    We now have 8\1/2\ million more jobs than we had just 3 years ago. 
And I might say, of the G-7 countries, that's more than 8 million more 
than the other six nations combined. We have the lowest combined rates 
of unemployment and inflation in 27 years. And trade has been critical 
to that; as Ambassador Kantor said, 200 separate agreements--20 with 
Japan alone, now 21. Our exports are at an all-time high, our auto 
producers now leading the world.
    Even more important, we have a framework agreement in our 
relationship with Japan which establishes a comprehensive system for 
dealing with problems that inevitably arise between two great nations. 
As a result, our exports there are up over 30 percent; in the areas 
covered by the agreements, up 85 percent. Today, exports to Japan 
support more than 800,000 good-paying American jobs, including 150,000 
new ones since 1992. Most of these are good, high-wage jobs because jobs 
tied to exports on average pay 15 percent above the national average 
wage. We are, therefore, in expanding our trade to an all-time high--a 
full third in the last 3 years--slowly helping to change the wage 
picture that has bedeviled so many American workers who think that 
they'll work harder and harder and never get a raise.
    In 1992, 6 percent of our new jobs were in high-wage industries. In 
1995, almost 60 percent of our new jobs were in high-wage industries. 
This strategy will work. It is not a miracle; it will not work 
overnight. It plainly depends for its success primarily on the 
willingness of American workers and American business leaders to work 
together, to be competitive, to be productive. But it will work. This 
report shows the difference this approach will make.
    Last year we reached a landmark agreement that increased our access 
to the Japanese market for autos and for auto parts. One of the many 
legacies of our friend Secretary Ron Brown was the establishment with 
Ambassador Kantor of a team to monitor and enforce the agreement. This 
report shows that since the agreement was signed, sales of American-made 
autos have increased by more than a third. Sales of American-made cars, 
trucks, and vans rose more than 225 percent between 1992 and 1995, 
including over 58,000 Big Three cars exported from the U.S. just last 
year. In the first 2 months of this year, our people sold one-third more 
autos to Japan than in the same period last year. So the movement is all 
in the right direction.
    In auto parts, exports over the last 3 years up 60 percent, to $1.6 
billion last year. Now, to give you one example of the evidence that 
this agreement and its faithful implementation and your work has made, 
Tenneco Automotive of Houston spent 25 years attempting to break into 
the Japanese market. Now their Monroe shock absorbers will be sold in 
almost 7,500 Japanese shops.
    These developments are part of the rebirth of our auto industry, an 
industry that lost 49,000 jobs in the 4 years before I took office and 
has gained about 80,000 in the 3 years since. Because of the partnership 
between labor and management, for the first time in 15 years, last year 
the United States auto industry again was number one in the world. So 
again, let me thank the representatives of the Big Three, the many auto 
parts producers, and all the workers who have worked so hard to make our 
belief in this economic strategy a reality.
    The Big Three will be introducing 17 new right-hand models for the 
Japanese market

[[Page 659]]

in the next 2 years. To those of us who have any memory of this, it 
seems almost inconceivable. But you always believed you could compete 
with anybody, anywhere, as long as you had a level playing field. I 
still believe that. I know we're right. And I know all Americans will be 
very proud of these results.
    Let me just say one other thing about the trade issue. I'm happy 
about the debate in America on trade today, but I sometimes think it 
falls into two camps which don't reflect the real world. There are 
people who say, well, America has got a lot of folks who haven't gotten 
a raise in a long time, and we may be creating a lot of jobs but there 
are people who are losing jobs. Well, that's true. But it is also true 
everywhere in the world. It is not true that the answer is to put a wall 
up around America and walk away from our obligations and our 
opportunities to compete and win. If we did that, we would pay a 
terrible price.
    Then there are others who say, well, we ought to be for free trade, 
but we shouldn't worry so much about all these specific agreements and 
all these details. We shouldn't have governments negotiating this, we 
ought to just sort of get out of the way and see what happens and hope 
for the best. We tried it that way and it didn't work out very well.
    Both of those arguments are wrong. Neither reflects an understanding 
of how the real world works. The right policy is to be for free and fair 
trade. The right governmental action is to support a genuinely 
competitive marketplace, help to create it, and then get out of the way. 
That is the proper policy. If we put up walls, what would happen to the 
jobs of the people who make cars in plants like the Chrysler plant in 
Belvidere, Illinois, or Fords in Atlanta or Chevrolets in Lorain, Ohio, 
that produce those right-hand drive vehicles we just saw? On the other 
hand, if we didn't want to hold others to the same standards we expect 
to meet in world competition, what would happen to all the jobs of the 
people who would not be able to stand against the kind of unfair 
practices we have seen practiced in the past?
    We made a good start in the auto industry. The Japanese have 
proceeded in good faith. I think it's been good for them as well as us. 
I hope that we will see the day when these policies will be the law of 
the world, when the World Trade Organization, because of GATT, really 
will have an integrated world trading system. I hope we will see the day 
when we will see these kinds of benefits in dealing with all of Asia, 
all of Latin America, all of Europe, all of Africa, all of the countries 
that were formerly part of the communist bloc.
    But I know this: These people in the auto industry have proved that 
our policy works. I thank you, Senator Levin and Congressman Levin, for 
your work. I want to thank all the people in our administration, the 
economic team and, most of all, I want to thank the workers and the 
managers in the auto industry for proving that we're doing the right 
thing.
    Now, before I close let me just make one more announcement. We could 
not have done what we did here if we hadn't had a vision not only of the 
economic policy we wanted to pursue, but also of how we wanted to pursue 
it. We put together an economic team for the first time in the history 
of this Government that really functions. I can't imagine why it had 
never been done before, but it hadn't.
    There were a lot of different power centers in the Federal 
Government allegedly making economic policy. We decided to change that. 
We had a good strategy, good teamwork, and good players. We didn't have 
a better player than the late Secretary of Commerce Ron Brown. Nobody 
was more determined that American workers and companies would get a fair 
shake around the world, and his extraordinary efforts are a model for us 
all.
    He memorized--as I said at his memorial service the other day, he 
made every Department of Commerce employee memorize a one-sentence 
mission statement that ought to be the mission of everybody in our 
Government: Our mission is to ensure economic opportunity for every 
American.
    Well, we still have to do that, and I don't want to miss a beat. And 
I am determined that we will continue on the work that Ron Brown was 
engaged in the last day of his life. So today I am proud to announce 
that I intend to appoint Ambassador Mickey Kantor to be the next 
Secretary of Commerce. And

[[Page 660]]

I will send his nomination to the Senate promptly.
    This is not an easy time for the people at the Commerce Department, 
but they will do fine. And I think that we need to send a clear signal 
to the rest of America and to the world that we don't intend to miss a 
beat. We have got a strategy, we have got a team, it's working, and 
we're going forward with it.
    No Trade Representative has ever amassed a record of achievement 
that surpasses Mickey Kantor's in the last 3\1/2\ years: GATT, NAFTA, 
200 separate agreements, enforcement, the consequences that flowed from 
it. But frankly, it hasn't been easy. If you think that you have been to 
something tough, you ought to sit in those trade negotiations day-in and 
day-out, and then when you finish one, be told to get on an airplane to 
fly halfway around the world and get in the middle of another one.
    I have heard Mickey say a thousand times he was 6 foot 4 and blond-
headed when he came to work here. [Laughter] He and Ron Brown used to 
joke, you know, that they were the Alphonse and Gaston of our economic 
team. Mickey was the bad cop; Ron was the good cop. I thought we ought 
to give him the chance to be a good cop for a change. [Laughter] And I 
want to thank him for his service.
    I also want to announce that I will ask his principal deputy, 
Charlene Barshefsky, who has been a brilliant negotiator for our 
country, to serve as acting U.S. Trade Representative. She has been a 
deputy there since I took office. She has been our chief trade 
negotiator in Latin America and in Asia. She is not here today because 
she is on her way back from a trade mission. And I have gone to many 
places and had world leaders ask me who she was because they virtually 
got tears in their eyes after 4 or 5 hours of trying to outmaneuver her. 
[Laughter] So I want to thank her in her absence.
    Finally, I want to make one more announcement. In just a few days we 
will have another very important vacancy in our economic team, one that 
has been critical to the success of our plans to being able to cut the 
deficit in half and continue to invest in America's priorities, and that 
is the Director of the Office of Management and Budget. I have been very 
blessed to have two outstanding Directors, and I gave them both other 
jobs.
    Leon Panetta is now serving with great distinction as the White 
House Chief of Staff and longs for the days when he used to have that 
other job. [Laughter] Alice Rivlin will soon be moving on to become the 
Vice Chair of the Federal Reserve Board, and therefore the object of our 
complaints whenever the economy is not growing as we think it should. 
[Laughter] And so there is, or soon will be, a vacancy at the Office of 
Management and Budget. And I am pleased to announce today that I intend 
to nominate as the next director, Franklin D. Raines.
    Frank Raines has had extensive experience in Government and in the 
private sector. He worked at OMB and on the domestic policy staff under 
President Carter. Since 1991, he has served in the very important 
position of vice chair of the Federal National Mortgage Association, 
Fannie Mae. He knows the world of finance, he respects the bottom line. 
He also understands, I know from our work in the transition and from a 
conversation we had just yesterday, the very real, human impact the work 
of the budget has on the American people, and the opportunities they 
will or will not have to make the most of their own lives. So I am very 
proud to ask him to join our team.
    I, frankly, was a little surprised that he was willing to leave that 
incredibly lucrative position--how shall I say it. [Laughter] So I told 
Frank when he came here that he was about to join the ranks of Bob Rubin 
and Mickey Kantor and a number of other successful people who came into 
this administration to help save the middle class, and when they leave 
they'll be part of it. [Laughter]
    As you might imagine, this has been a profoundly moving and 
difficult week for all of us in our political family. Mickey Kantor and 
I were particularly close to Ron Brown; we loved him very much. I am 
doing what I think is the right thing to do today for the economic 
interests of America's business and for the future of all those workers 
who deserve the opportunity that is set out in the Commerce Department's 
mission statement. I've known Mickey Kantor a very long time. Ex- 

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cept for the color of their skins, the careers that he and Ron Brown had 
are remarkably parallel over a long period of time. And if he does as 
well at Commerce as he did at the trade office, we are in very good 
hands indeed.
    I also want to thank Frank Raines for proving once again that this 
country is full of patriotic Americans who love their country, who are 
willing to serve, and who are willing to make real, tangible sacrifices 
to serve, because the work of democracy, the work of citizenship is what 
makes the rest of this country move and go.
    I thank them both, and I'd like to ask if each, in their turn, 
they'd like to come up and just make a few remarks. First, Mickey 
Kantor.

Note: The President spoke at 2:40 p.m. in the East Room at the White 
House. In his remarks, he referred to J.C. Phillips, chairman, United 
Auto Workers Local 882, and Jim Hill, Atlanta plant manager, Ford Motor 
Co. This item was not received in time for publication in the 
appropriate issue.