Statements on Introduced Bills and Joint Resolutions
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS -- (Senate - March 10, 2005)
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By Ms. COLLINS (for herself, Mr. Bayh, Mr. Burr, Mr. Santorum, Mr. Schumer, Mr. DeWine, Mr. Durbin, Mrs. Dole, Mr. BYRD, Ms. Mikulski, Mr. Graham, Mr. Lieberman, Mr. Pryor, Mrs. Lincoln, Mr. Rockefeller, Mr. Baucus, and Mr. Lott):
S. 593. A bill to amend title VII of the Tariff Act of 1930 to provide that the provisions relating to countervailing duties apply to nonmarket economy countries; to the Committee on Finance.
Ms. COLLINS. Mr. President, our Nation's manufacturers and their employees can compete against the best in the world, but they cannot compete against nations that provide huge subsidies and other unfair advantages to their producers. I hear from manufacturers in my State time and time again whose efforts to compete successfully in the global economy simply cannot overcome the practices of illegal pricing and subsidies of nations such as China. The results of these unfair practices are lost jobs, shuttered factories, and decimated communities.
Consider this one example. The American residential wood furniture industry has experienced devastating losses due to surges of unfairly priced furniture imports from China. According to the U.S. Bureau of Labor, 34,700 jobs, or 28 percent of the workforce, have been lost in the U.S. furniture industry since 2000. One furniture manufacturer in Maine, Moosehead Manufacturing, was forced to eliminate a quarter of its employees due to the unfair market conditions it faces.
Unfairly priced imports from China are a leading cause in these job losses. China's wooden bedroom furniture exports to the U.S., which amounted to just $169 million in 1999, reached an estimated $1.2 billion in 2003. By subsidizing investments in furniture manufacturing facilities, China is exploiting the U.S. market to the benefit of its producers and putting our employees at an unfair advantage.
This is why I am introducing the ``Stopping Overseas Subsidies Act,'' a bill I introduced in the 108th Congress. I am pleased to be joined by my good friend and colleague from Indiana, Senator BAYH, who has worked closely with me on this legislation. This bill revises current trade remedy laws to ensure that U.S. countervailing duty laws apply to imports from non-market economies, such as China.
Our Nation's trade remedy laws are intended to give American industries and their employees relief from the effects of illegal trade practices. Unfortunately, some countries in the world choose to cheat instead of compete fairly. In these cases, U.S. industries can file petitions under U.S. trade remedy laws for relief. Under current Commerce Department practice, however, U.S. industries competing with these unfairly advantaged foreign producers can file an anti-subsidy petitions against any market economy--such as Canada or Chile--but not against a non-market economy such as China. As a result, those countries, such as China, that subsidize their industries the most heavily and cause the most injury to U.S. industries and workers are exempt from the reach of American anti-subsidy laws.
It is time that this was changed. It is simply not fair to prevent U.S. industries from seeking redress from these unfair trade practices because our trade remedy laws are outdated.
Over the past two decades, there have been significant economic changes in many of the countries classified as non-market economies. This is particularly true in China, one of our largest trading partners and the country with which the United States currently runs its largest trade deficit.
Beginning in the early 1980's and continuing today, China has undertaken major economic reforms. Today, China's economy is not completely state-controlled. Government price controls on a wide range of products have been eliminated. Many enterprises and even entire industries have been allowed to operate and compete in an economic system that has elements of a free market. And, of course, China has taken steps toward fully integrating into the global trading system by joining the World Trade Organization and by working toward the establishment of a modern commercial, financial, legal, and regulatory infrastructure.
The problem is not China's economic liberalization and modernization. The problem is this: now that China has the capacity to be a key international economic player, the country has repeatedly refused to comply with standard international trading rules and practices. And these violations include the use of subsidies and other economic incentives that are designed to give its producers an unfair competitive advantage.
Perhaps the most glaring subsidy comes in the form of currency manipulation. By keeping the Chinese yuan pegged to the U.S. dollar at artificially low levels, the Chinese undervalue the prices of their exports. Not only does this practice provide their producers with a price advantage, but also it violates International Monetary Fund and WTO rules. The Chinese government also reimburses many enterprises for their operating losses and provides loans to uncreditworthy companies.
Currently, U.S. industries have no direct recourse to combat these unfair practices. They instead must rely upon government-to-government negotiations or on the dispute settlement processes of international organizations such as the WTO. While these channels might eventually lead to relief, it usually takes years to see results--and by that time, that industry could already be decimated.
Unfair market conditions cannot continue to cause our manufacturers to hemorrhage jobs. No state understands this more than my home state of Maine. According to a recent study by the National Association of Manufacturers, on a percentage basis, Maine lost more manufacturing jobs in the previous three years than any other state. This is why organizations such as the Maine Forest Products Council and the Maine Wood Products Association have strongly endorsed my proposal.
The Stopping Overseas Subsidies bill is a bipartisan, bicameral bill that has a broad range of support across many industries and geographical areas. A companion bill is being introduced today in the House by Representatives Phil English of Pennsylvania and Artur Davis of Alabama. Last year, the Senate bill had eighteen cosponsors.
I am proud that over twenty organizations and a number of private companies, representing a range of industries, have endorsed this bill. Some of these organizations include: The American Forest & Paper Association, the National Council of Textile Organizations, the Printing Industries of America, the Steel Manufacturers Association, and the Catfish Farmers of America. Of particular note, the National Association of Manufacturers has endorsed this bill and has listed it as one of its top trade agenda items in 2005.
In addition, the United States Economic and Security Review Commission, a bipartisan organization established by Congress in 2000 to provide recommendations to Congress on the relationship between the United States and China, has endorsed the goals of this bill. In its annual report to Congress in June 2004, the Commission stated, ``U.S. policy currently prevents application of countervailing duty laws to nonmarket economy countries such as China. This limits the ability of the United States to combat China's extensive use of subsidies that give Chinese companies an unfair competitive advantage. The Commission recommends that Congress urge the Department of Commerce to make countervailing duty laws application to nonmarket economies. If Commerce does not do so, Congress should pass legislation to achieve the same effect.''
U.S. industries don't want protection--they want fair competition. Illegal subsidies distort fair competition, regardless of the economic system in which they are used. Our legislation simply levels the playing field by allowing anti-subsidy petitions to be brought against non-market economies in addition to market economies.
Countries such as China want to have all the benefits of engaging in international trading institutions and systems and continue to cheat on the system with no penalties. It is time these countries were held to the same standards as other countries around the world. I ask you to join me in supporting the SOS bill to ensure that all countries are held accountable for their trade practices.
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Ms. COLLINS. Mr. President, as the Senate co-chair of the Bipartisan Task Force on Alzheimer's Disease, I am pleased to join Senators BOND and MIKULSKI in introducing the Ronald Reagan Alzheimer's Breakthrough Act of 2005.
Alzheimer's is a devastating disease that takes a tremendous personal and economic toll on both the individual and the family. As someone whose family has experienced the pain of Alzheimer's, I know that there is no more helpless feeling than to watch the progression of this dreadful disease. It is an agonizing experience to look into the eyes of a loved one only to receive a confused look in return.
Ronald Reagan had a profound effect on our Nation in many ways during his Presidency. But what many of us will remember most is the grace and dignity with which he and his wife Nancy faced the final battle against Alzheimer's--the one campaign they knew he wouldn't win.
Ironically, it was President Reagan who first drew national attention to Alzheimer's disease when he launched a national campaign against the disease some 22 years ago. In 1983, President Reagan proclaimed November as National Alzheimer's Disease Month. In his proclamation, President Reagan said: ``The emotional, financial and social consequences of Alzheimer's disease are so devastating that it deserves attention. Science and clinical medicine are striving to improve our understanding of what causes Alzheimer's disease and how to treat it successfully. Right now, research is the only hope for victims and their families.''
An estimated 4.5 million Americans have Alzheimer's disease, more than double the number in 1980. Moreover, Alzheimer's disease costs the United States more than $100 billion a year, primarily in nursing home and other long-term care costs. This figure will only increase exponentially as the baby boom generation ages. As the baby boomers move into the years of highest risk for Alzheimer's disease, a strong and sustained research effort is our best tool to slow down the progression and prevent the onset of this terrible disease.
Our investments in Alzheimer's disease research have begun to pay dividends. Effective treatments for Alzheimer's disease and a possible vaccine are tantalizingly within our grasp. Moreover, if scientists can find a way to delay the onset of this devastating disease for even five years, our Nation will save at least $50 billion in annual health and long-term care costs and an incalculable amount in human suffering.
If we are to keep up the momentum we have established, we must increase our investment in Alzheimer's disease research. Millions of Americans, including the families of Alzheimer patients, are profoundly grateful for our historic accomplishment of doubling funding for biomedical research at the National Institutes of Health. We have made tremendous progress, but more must be done. The bill we are introducing today therefore doubles the authorization levels for Alzheimer's research at the NIH from the current funding level of $700 million to $1.4 million.
In addition to increasing funding for research, our bill provides much needed support for Alzheimer's patients and their families by increasing funding for the National Family Caregiver Support Program and by providing a tax credit of up to $3,000 to help families meet the costs of caring for a loved one with long-term care needs.
The Ronald Reagan Alzheimer's Breakthrough Act of 2005 will serve as a living tribute to President Reagan and will offer hope to all of those suffering from the disease today. It is now time for Congress to pick up the banner and pass this important legislation, and I urge all of my colleagues to sign on as cosponsors.
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