Grassley Urges Implementation of Trade Agreements This Fall
Grassley Urges Implementation of Trade Agreements This Fall
Statement of Senator Chuck Grassley
The Congressional Trade Agenda
September 10, 2007
Thank you all for being here today. During the August recess, I spent some time thinking about how
to jumpstart congressional movement on one of my legislative priorities, which is the trade agenda.
As you know, this year began with the Democrats demanding additional provisions in our trade
agreements before they would agree to implement them. After lengthy negotiations, the
Administration agreed to a compromise that the House Democratic leadership announced with much
fanfare on May 10th. Since then, our trade agreements with Peru, Colombia, Panama, and South
Korea have been renegotiated to reflect this compromise. Yet, here we are, four months to the day,
and the 110th Congress still hasn't implemented a single trade agreement.
I decided to invite representatives from the business and agricultural communities, as well as the
Administration, to gather here today for three reasons. First, I want to make clear that
implementation of our trade agreements with Peru, Colombia, and Panama, remains a top priority
for me. Our agreement with South Korea is important, too, but implementation is on hold until the
Korean government fully conforms its regulation of trade in beef products to internationally-
recognized standards. The focus for the foreseeable future is on our trade agreements with Latin
America. Second, I want to walk through the many reasons why we should implement each of these
trade agreements. And third, I want to invite the Administration representatives to express the extent
to which implementation of these trade agreements is a priority for the President. I'll also take this
opportunity to comment briefly on the renewal of trade promotion authority and our trade
adjustment assistance programs.
Whether you focus on the benefits of these agreements for our trading partners, or the benefits for
the United States, the fact is, implementation will advance our mutual interests. The story is pretty
much the same each time the International Trade Commission studies the effects of implementing
one of our trade agreements. Our exports increase, the exports of our trading partner increase, and
overall there is a net reduction in the U.S. trade deficit. For those critics in Congress of our mounting
trade deficits, here's one way to make a difference vote for implementation of these trade
agreements. We have an open economy and often provide duty-free access to imports under our
unilateral trade preference programs. Our trade agreements turn that one-way access into a two-way
street, so our exporters have equal opportunities.
And our trading partners benefit in significant ways as well. Countries with export-led economic
growth grow faster than economies with more stagnant exports. Increased access to imports often
lowers prices and increases choices for consumers. A trade agreement with the United States is also
an important signal that increases the confidence of foreign investors. It fosters enhanced respect
for the rule of law. And it strengthens our relationship with an important ally. This is particularly
important when it comes to Latin America, which is now at a crossroads.
Some governments in the region, such as in Venezuela, Bolivia, and Ecuador, are consolidating
political power, expropriating industries or otherwise disregarding investor rights, and distancing
themselves from the United States. In the case of Peru, Colombia, and Panama, it is quite the
opposite. These governments are demonstrating a commitment to market liberalization and to
strengthening their economic and political relations with the United States.
Now it's up to Congress, and we cannot fail to act. We need to demonstrate that the United States
stands by its friends. To signal otherwise by not implementing our Latin American trade agreements
would be extremely detrimental to our national interests in the region. It would empower leaders like
Hugo Chavez who are antagonistic to the United States. And it would disillusion the people of Peru,
Colombia, and Panama, who view the United States with friendship. Instead, we must act to
strengthen our friendships and support our allies. We must act to expand economic opportunities and
increase prosperity. And we must act to foster increased political as well as economic stability in
Latin America. The most immediate way to accomplish these objectives is to implement our pending
trade agreements.
I accepted the May 10th compromise because, even with those changes, I believe it remains in our
national interest to implement these trade agreements. I appreciate the fact that Chairman Baucus
scheduled a committee hearing on the Peru trade agreement for tomorrow morning. I hope we can
quickly follow that up with informal committee consideration of draft implementing legislation. I
want to complete the implementation process during this work period so that we can turn to our
agreements with Colombia and Panama before the end of the year.
Unfortunately, I suspect that there are some who are not yet persuaded of the need to conclude the
implementation process this year. I will do my best to make that case. And I hope that the
Administration will lend its voice in this effort as well. I'm grateful that Ambassador Schwab,
Secretary Gutierrez, and Secretary Johanns have agreed to join us today, and I'll turn to them in a
moment.
Let me briefly touch on the expiration of trade promotion authority and the need to renew our trade
adjustment assistance programs. During the coming weeks, our trade negotiators are going to work
hard to salvage the Doha Round negotiations in the World Trade Organization. I hope that they
succeed in bringing back an ambitious agreement that will provide meaningful market access
opportunities for our farmers, manufacturers, and service providers. But I remain skeptical that we
can get a final deal without ensuring that it will be put to an up-or-down vote in the United States
Congress. To do that, we need to extend trade promotion authority. Otherwise, we'll cede our
international leadership on trade.
We also need to reauthorize our trade adjustment assistance programs. I'm working on legislation
to do that, and I know other members are as well. We'll probably need to extend the current
programs for a few months in order to give Congress a more realistic timeframe for moving new
authorizing legislation. I'm committed to this effort to ensure that these programs operate properly
to meet the needs of trade-impacted workers.
I'll turn now to Ambassador Schwab, who will be followed by Secretary Gutierrez and Secretary
Johanns. If there is time remaining at the end, we can take some questions from the business
representatives.
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