Congressional Record United States Th of America PROCEEDINGS and DEBATES of the 108 CONGRESS, SECOND SESSION

E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 108 CONGRESS, SECOND SESSION

Vol. 150 WASHINGTON, THURSDAY, JULY 22, 2004 No. 103—Book II House of Representatives PRIVILEGED REPORT ON RESOLU- PERMISSION FOR COMMITTEE ON Sec. 104. Consultation and layover provi- TION DIRECTING SECRETARY OF SCIENCE TO HAVE UNTIL 5 P.M., sions for, and effective date of, STATE TO TRANSMIT DOCU- AUGUST 27, 2004, TO FILE RE- proclaimed actions. Sec. 105. Administration of dispute settle- MENTS RELATING TO TREAT- PORT ON H.R. 3551, SURFACE ment proceedings. MENT OF PRISONERS AND DE- TRANSPORTATION RESEARCH Sec. 106. Arbitration of claims. TAINEES IN IRAQ, AFGHANISTAN AND DEVELOPMENT ACT OF 2004 Sec. 107. Effective dates; effect of termi- AND GUANTANAMO BAY Mr. BOEHLERT. Mr. Speaker, I ask nation. unanimous consent that the Com- TITLE II—CUSTOMS PROVISIONS Ms. HARRIS, from the Committee on mittee on Science may have until Au- Sec. 201. Tariff modifications. International Relations, submitted a gust 27, 2004, at 5 p.m. to file the fol- Sec. 202. Additional duties on certain agri- privileged report (Rept. No. 108–631) on lowing report: H.R. 3551, Surface Trans- cultural goods. Sec. 203. Rules of origin. the resolution (H. Res. 699) directing portation Research and Development Sec. 204. Enforcement relating to trade in the Secretary of State to transmit to Act of 2004. textile and apparel goods. the House of Representatives docu- The SPEAKER pro tempore. Is there Sec. 205. Regulations. ments in the possession of the Sec- objection to the request of the gen- TITLE III—RELIEF FROM IMPORTS retary of State relating to the treat- tleman from New York? Sec. 301. Definitions. There was no objection. ment of prisoners and detainees in Subtitle A—Relief From Imports Benefiting Iraq, Afghanistan, and Guantanamo f From the Agreement Bay, which was referred to the House UNITED STATES-MOROCCO FREE Sec. 311. Commencing of action for relief. Sec. 312. Commission action on petition. Calendar and ordered to be printed. TRADE AGREEMENT IMPLEMEN- TATION ACT Sec. 313. Provision of relief. Sec. 314. Termination of relief authority. f Mr. THOMAS. Mr. Speaker, pursuant Sec. 315. Compensation authority. to House Resolution 738, I call up the Sec. 316. Confidential business information. PRIVILEGED REPORT ON RESOLU- bill (H.R. 4842) to implement the Subtitle B—Textile and Apparel Safeguard Measures TION REQUESTING PRESIDENT United States-Morocco Free Trade Agreement, and ask for its immediate Sec. 321. Commencement of action for relief. TO TRANSMIT DOCUMENTS RE- Sec. 322. Determination and provision of re- LATING TO TREATMENT OF consideration. The Clerk read the title of the bill. lief. PRISONERS OR DETAINEES IN The text of H.R. 4842 is as follows: Sec. 323. Period of relief. Sec. 324. Articles exempt from relief. IRAQ, AFGHANISTAN OR GUAN- H.R. 4842 TANAMO BAY Sec. 325. Rate after termination of import Be it enacted by the Senate and House of Rep- relief. Mr. HUNTER, from the Committee resentatives of the United States of America in Sec. 326. Termination of relief authority. Congress assembled, Sec. 327. Compensation authority. on Armed Services, submitted a privi- SECTION 1. SHORT TITLE; TABLE OF CONTENTS. Sec. 328. Business confidential information. leged report (Rept. No. 108–632) on the (a) SHORT TITLE.—This Act may be cited as SEC. 2. PURPOSES. resolution (H. Res. 689) of inquiry re- the ‘‘United States-Morocco Free Trade The purposes of this Act are— questing the President and directing Agreement Implementation Act’’. (1) to approve and implement the Free (b) TABLE OF CONTENTS.—The table of con- certain other Federal officials to trans- Trade Agreement between the United States tents for this Act is as follows: and Morocco entered into under the author- mit to the House of Representatives Sec. 1. Short title; table of contents. ity of section 2103(b) of the Bipartisan Trade not later than 14 days after the date of Sec. 2. Purposes. Promotion Authority Act of 2002 (19 U.S.C. the adoption of this resolution docu- Sec. 3. Definitions. 3803(b)); ments in the possession of the Presi- TITLE I—APPROVAL OF, AND GENERAL (2) to strengthen and develop economic re- dent and those officials relating to the PROVISIONS RELATING TO, THE lations between the United States and Mo- AGREEMENT rocco for their mutual benefit; treatment of prisoners or detainees in Sec. 101. Approval and entry into force of (3) to establish free trade between the 2 na- Iraq, Afghanistan, or Guantanamo Bay, the Agreement. tions through the reduction and elimination which was referred to the House Cal- Sec. 102. Relationship of the Agreement to of barriers to trade in goods and services and endar and ordered to be printed. United States and State law. to investment; and Sec. 103. Implementing actions in anticipa- (4) to lay the foundation for further co- tion of entry into force and ini- operation to expand and enhance the benefits tial regulations. of such Agreement.

b This symbol represents the time of day during the House proceedings, e.g., b 1407 is 2:07 p.m. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor.

H6615

VerDate jul 14 2003 02:05 Jul 24, 2004 Jkt 029060 PO 00000 Frm 00001 Fmt 4634 Sfmt 0634 E:\CR\FM\K22JY7.100 H22PT2 H6616 CONGRESSIONAL RECORD — HOUSE July 22, 2004 SEC. 3. DEFINITIONS. action by any department, agency, or other SEC. 105. ADMINISTRATION OF DISPUTE SETTLE- In this Act: instrumentality of the United States, any MENT PROCEEDINGS. (1) AGREEMENT.—The term ‘‘Agreement’’ State, or any political subdivision of a State, (a) ESTABLISHMENT OR DESIGNATION OF OF- means the United States-Morocco Free on the ground that such action or inaction is FICE.—The President is authorized to estab- Trade Agreement approved by Congress inconsistent with the Agreement. lish or designate within the Department of under section 101(a)(1). Commerce an office that shall be responsible SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPA- for providing administrative assistance to (2) HTS.—The term ‘‘HTS’’ means the Har- TION OF ENTRY INTO FORCE AND monized Tariff Schedule of the United INITIAL REGULATIONS. panels established under chapter 20 of the States. Agreement. The office may not be considered (a) IMPLEMENTING ACTIONS.— (3) TEXTILE OR APPAREL GOOD.—The term to be an agency for purposes of section 552 of (1) PROCLAMATION AUTHORITY.—After the ‘‘textile or apparel good’’ means a good list- title 5, United States Code. date of the enactment of this Act— ed in the Annex to the Agreement on Tex- (b) AUTHORIZATION OF APPROPRIATIONS.— (A) the President may proclaim such ac- tiles and Clothing referred to in section There are authorized to be appropriated for tions, and 101(d)(4) of the Uruguay Round Agreements each fiscal year after fiscal year 2004 to the (B) other appropriate officers of the United Act (19 U.S.C. 3511(d)(4)). Department of Commerce such sums as may States Government may issue such regula- TITLE I—APPROVAL OF, AND GENERAL be necessary for the establishment and oper- tions, ations of the office under subsection (a) and PROVISIONS RELATING TO, THE AGREE- as may be necessary to ensure that any pro- MENT for the payment of the United States share vision of this Act, or amendment made by of the expenses of panels established under SEC. 101. APPROVAL AND ENTRY INTO FORCE OF this Act, that takes effect on the date the chapter 20 of the Agreement. THE AGREEMENT. Agreement enters into force is appropriately SEC. 106. ARBITRATION OF CLAIMS. (a) APPROVAL OF AGREEMENT AND STATE- implemented on such date, but no such proc- The United States is authorized to resolve MENT OF ADMINISTRATIVE ACTION.—Pursuant lamation or regulation may have an effec- to section 2105 of the Bipartisan Trade Pro- any claim against the United States covered tive date earlier than the date the Agree- by article 10.15.1(a)(i)(C) or article motion Authority Act of 2002 (19 U.S.C. 3805) ment enters into force. and section 151 of the Trade Act of 1974 (19 10.15.1(b)(i)(C) of the Agreement, pursuant to (2) EFFECTIVE DATE OF CERTAIN PROCLAIMED the Investor-State Dispute Settlement pro- U.S.C. 2191), Congress approves— ACTIONS.—Any action proclaimed by the (1) the United States-Morocco Free Trade cedures set forth in section B of chapter 10 of President under the authority of this Act the Agreement. Agreement entered into on June 15, 2004, that is not subject to the consultation and with Morocco and submitted to Congress on layover provisions under section 104 may not SEC. 107. EFFECTIVE DATES; EFFECT OF TERMI- NATION. July 15, 2004; and take effect before the 15th day after the date (a) EFFECTIVE DATES.—Except as provided (2) the statement of administrative action on which the text of the proclamation is pub- in subsection (b), the provisions of this Act proposed to implement the Agreement that lished in the Federal Register. and the amendments made by this Act take was submitted to Congress on July 15, 2004. (3) WAIVER OF 15-DAY RESTRICTION.—The 15- effect on the date the Agreement enters into (b) CONDITIONS FOR ENTRY INTO FORCE OF day restriction in paragraph (2) on the tak- force. THE AGREEMENT.—At such time as the Presi- ing effect of proclaimed actions is waived to dent determines that Morocco has taken (b) EXCEPTIONS.—Sections 1 through 3 and the extent that the application of such re- this title take effect on the date of the en- measures necessary to bring it into compli- striction would prevent the taking effect on ance with those provisions of the Agreement actment of this Act. the date the Agreement enters into force of (c) TERMINATION OF THE AGREEMENT.—On that are to take effect on the date on which any action proclaimed under this section. the Agreement enters into force, the Presi- the date on which the Agreement termi- (b) INITIAL REGULATIONS.—Initial regula- dent is authorized to exchange notes with nates, the provisions of this Act (other than tions necessary or appropriate to carry out the Government of Morocco providing for the this subsection) and the amendments made the actions required by or authorized under entry into force, on or after January 1, 2005, by this Act shall cease to be effective. this Act or proposed in the statement of ad- of the Agreement with respect to the United TITLE II—CUSTOMS PROVISIONS ministrative action submitted under section States. 101(a)(2) to implement the Agreement shall, SEC. 201. TARIFF MODIFICATIONS. SEC. 102. RELATIONSHIP OF THE AGREEMENT TO to the maximum extent feasible, be issued (a) TARIFF MODIFICATIONS PROVIDED FOR IN UNITED STATES AND STATE LAW. within 1 year after the date on which the THE AGREEMENT.— (a) RELATIONSHIP OF AGREEMENT TO UNITED Agreement enters into force. In the case of (1) PROCLAMATION AUTHORITY.—The Presi- STATES LAW.— any implementing action that takes effect dent may proclaim— (1) UNITED STATES LAW TO PREVAIL IN CON- on a date after the date on which the Agree- (A) such modifications or continuation of FLICT.—No provision of the Agreement, nor ment enters into force, initial regulations to any duty, the application of any such provision to any carry out that action shall, to the maximum (B) such continuation of duty-free or excise person or circumstance, which is incon- extent feasible, be issued within 1 year after treatment, or sistent with any law of the United States such effective date. (C) such additional duties, shall have effect. as the President determines to be necessary (2) CONSTRUCTION.—Nothing in this Act SEC. 104. CONSULTATION AND LAYOVER PROVI- or appropriate to carry out or apply articles shall be construed— SIONS FOR, AND EFFECTIVE DATE 2.3, 2.5, 2.6, 4.1, 4.3.9, 4.3.10, 4.3.11, 4.3.13, 4.3.14, (A) to amend or modify any law of the OF, PROCLAIMED ACTIONS. and 4.3.15, and Annex IV of the Agreement. United States, or If a provision of this Act provides that the (2) EFFECT ON MOROCCAN GSP STATUS.—Not- (B) to limit any authority conferred under implementation of an action by the Presi- withstanding section 502(a)(1) of the Trade any law of the United States, dent by proclamation is subject to the con- Act of 1974 (19 U.S.C. 2462(a)(1)), the Presi- unless specifically provided for in this Act. sultation and layover requirements of this dent shall terminate the designation of Mo- (b) RELATIONSHIP OF AGREEMENT TO STATE section, such action may be proclaimed only rocco as a beneficiary developing country for LAW.— if— purposes of title V of the Trade Act of 1974 (1) LEGAL CHALLENGE.—No State law, or (1) the President has obtained advice re- on the date of entry into force of the Agree- the application thereof, may be declared in- garding the proposed action from— ment. valid as to any person or circumstance on (A) the appropriate advisory committees (b) OTHER TARIFF MODIFICATIONS.—Subject the ground that the provision or application established under section 135 of the Trade to the consultation and layover provisions of is inconsistent with the Agreement, except Act of 1974 (19 U.S.C. 2155); and section 104, the President may proclaim— in an action brought by the United States for (B) the United States International Trade (1) such modifications or continuation of the purpose of declaring such law or applica- Commission; any duty, tion invalid. (2) the President has submitted to the (2) such modifications as the United States (2) DEFINITION OF STATE LAW.—For purposes Committee on Finance of the Senate and the may agree to with Morocco regarding the of this subsection, the term ‘‘State law’’ in- Committee on Ways and Means of the House staging of any duty treatment set forth in cludes— of Representatives a report that sets forth— Annex IV of the Agreement, (A) any law of a political subdivision of a (A) the action proposed to be proclaimed (3) such continuation of duty-free or excise State; and and the reasons therefor; and treatment, or (B) any State law regulating or taxing the (B) the advice obtained under paragraph (4) such additional duties, business of insurance. (1); as the President determines to be necessary (c) EFFECT OF AGREEMENT WITH RESPECT TO (3) a period of 60 calendar days, beginning or appropriate to maintain the general level PRIVATE REMEDIES.—No person other than on the first day on which the requirements of reciprocal and mutually advantageous the United States— set forth in paragraphs (1) and (2) have been concessions with respect to Morocco pro- (1) shall have any cause of action or de- met has expired; and vided for by the Agreement. fense under the Agreement or by virtue of (4) the President has consulted with such (c) CONVERSION TO AD VALOREM RATES.— congressional approval thereof; or Committees regarding the proposed action For purposes of subsections (a) and (b), with (2) may challenge, in any action brought during the period referred to in paragraph respect to any good for which the base rate under any provision of law, any action or in- (3). in the Tariff Schedule of the United States

VerDate jul 14 2003 23:57 Jul 23, 2004 Jkt 029060 PO 00000 Frm 00002 Fmt 4634 Sfmt 0634 E:\CR\FM\A22JY7.057 H22PT2 July 22, 2004 CONGRESSIONAL RECORD — HOUSE H6617 to Annex IV of the Agreement is a specific or More than 10 percent 30 percent of the ex- (2) REQUIREMENTS.—A good described in compound rate of duty, the President may but not more than cess of the applica- paragraph (1)(B)(ii) is an originating good substitute for the base rate an ad valorem 40 percent of the ble NTR (MFN) only if the sum of— rate that the President determines to be trigger price. rate of duty over (A) the value of each material produced in equivalent to the base rate. the schedule rate the territory of Morocco or the United of duty. States, or both, and SEC. 202. ADDITIONAL DUTIES ON CERTAIN AGRI- More than 40 percent 50 percent of such ex- (B) the direct costs of processing oper- CULTURAL GOODS. but not more than cess. ations performed in the territory of Morocco (a) DEFINITIONS.—In this section: 60 percent of the or the United States, or both, (1) AGRICULTURAL SAFEGUARD GOOD.—The trigger price. is not less than 35 percent of the appraised term ‘‘agricultural safeguard good’’ means a More than 60 percent 70 percent of such ex- value of the good at the time the good is en- good— but not more than cess. tered into the territory of the United States. (A) that qualifies as an originating good 75 percent of the trigger price. (c) CUMULATION.— under section 203; More than 75 percent 100 percent of such (1) ORIGINATING GOOD OR MATERIAL INCOR- (B) that is included in the U.S. Agricul- of the trigger price. excess. PORATED INTO GOODS OF OTHER COUNTRY.—An tural Safeguard List set forth in Annex 3–A originating good or a material produced in of the Agreement; and (3) EXCEPTIONS.—No additional duty shall the territory of Morocco or the United (C) for which a claim for preferential treat- be assessed on a good under this subsection States, or both, that is incorporated into a ment under the Agreement has been made. if, at the time of entry, the good is subject good in the territory of the other country (2) APPLICABLE NTR (MFN) RATE OF DUTY.— to import relief under— shall be considered to originate in the terri- The term ‘‘applicable NTR (MFN) rate of (A) subtitle A of title III of this Act; or tory of the other country. (B) chapter 1 of title II of the Trade Act of duty’’ means, with respect to an agricultural (2) MULTIPLE PROCEDURES.—A good that is 1974 (19 U.S.C. 2251 et seq.). safeguard good, a rate of duty that is the grown, produced, or manufactured in the ter- (4) TERMINATION.—The assessment of an ad- lesser of— ritory of Morocco or the United States, or ditional duty on a good under this subsection (A) the column 1 general rate of duty that both, by 1 or more producers, is an origi- would have been imposed under the HTS on shall cease to apply to that good on the date on which duty-free treatment must be pro- nating good if the good satisfies the require- the same agricultural safeguard good en- ments of subsection (b) and all other applica- tered, without a claim for preferential tariff vided to that good under the Tariff Schedule of the United States to Annex IV of the ble requirements of this section. treatment, on the date on which the addi- Agreement. (d) VALUE OF MATERIALS.— tional duty is imposed under subsection (b); (5) TARIFF-RATE QUOTAS.—If an agricultural (1) IN GENERAL.—Except as provided in or safeguard good is subject to a tariff-rate paragraph (2), the value of a material pro- (B) the column 1 general rate of duty that quota under the Agreement, any additional duced in the territory of Morocco or the would have been imposed under the HTS on duty assessed under this subsection shall be United States, or both, includes the fol- the same agricultural safeguard good en- applied only to over-quota imports of the lowing: tered, without a claim for preferential tariff good. (A) The price actually paid or payable for treatment, on December 31, 2004. (6) NOTICE.—Not later than 60 days after the material by the producer of such good. (3) F.O.B.—The term ‘‘F.O.B.’’ means free the date on which the Secretary of the (B) The freight, insurance, packing, and all on board, regardless of the mode of transpor- Treasury assesses an additional duty on a other costs incurred in transporting the ma- tation, at the point of direct shipment by the good under this subsection, the Secretary terial to the producer’s plant, if such costs seller to the buyer. shall notify the Government of Morocco in are not included in the price referred to in (4) SCHEDULE RATE OF DUTY.—The term writing of such action and shall provide to subparagraph (A). ‘‘schedule rate of duty’’ means, with respect the Government of Morocco data supporting (C) The cost of waste or spoilage resulting to an agricultural safeguard good, the rate of the assessment of additional duties. from the use of the material in the growth, duty for that good set out in the Tariff SEC. 203. RULES OF ORIGIN. production, or manufacture of the good, less Schedule of the United States to Annex IV of (a) APPLICATION AND INTERPRETATION.—In the value of recoverable scrap. the Agreement. this section: (D) Taxes or customs duties imposed on (5) TRIGGER PRICE.—The ‘‘trigger price’’ for (1) TARIFF CLASSIFICATION.—The basis for the material by Morocco, the United States, a good means the trigger price indicated for any tariff classification is the HTS. or both, if the taxes or customs duties are that good in the U.S. Agricultural Safeguard (2) REFERENCE TO HTS.—Whenever in this not remitted upon exportation from the ter- List set forth in Annex 3–A of the Agreement section there is a reference to a heading or ritory of Morocco or the United States, as or any amendment thereto. sub-heading, such reference shall be a ref- the case may be. (6) UNIT IMPORT PRICE.—The ‘‘unit import erence to a heading or subheading of the (2) EXCEPTION.—If the relationship between price’’ of a good means the price of the good HTS. the producer of a good and the seller of a ma- (b) ORIGINATING GOODS.— determined on the basis of the F.O.B. import terial influenced the price actually paid or (1) IN GENERAL.—For purposes of this Act price of the good, expressed in either dollars payable for the material, or if there is no and for purposes of implementing the pref- per kilogram or dollars per liter, whichever price actually paid or payable by the pro- unit of measure is indicated for the good in erential tariff treatment provided for under the Agreement, a good is an originating good ducer for the material, the value of the ma- the U.S. Agricultural Safeguard List set terial produced in the territory of Morocco forth in Annex 3–A of the Agreement. if— (A) the good is imported directly— or the United States, or both, includes the (b) ADDITIONAL DUTIES ON AGRICULTURAL (i) from the territory of Morocco into the following: SAFEGUARD GOODS.— territory of the United States; or (A) All expenses incurred in the growth, (1) ADDITIONAL DUTIES.—In addition to any (ii) from the territory of the United States production, or manufacture of the material, duty proclaimed under subsection (a) or (b) into the territory of Morocco; and including general expenses. of section 201, and subject to paragraphs (3), (B)(i) the good is a good wholly the growth, (B) A reasonable amount for profit. (4), (5), and (6) of this subsection, the Sec- product, or manufacture of Morocco or the (C) Freight, insurance, packing, and all retary of the Treasury shall assess a duty on United States, or both; other costs incurred in transporting the ma- an agricultural safeguard good, in the (ii) the good (other than a good to which terial to the producer’s plant. amount determined under paragraph (2), if clause (iii) applies) is a new or different arti- (e) PACKAGING AND PACKING MATERIALS AND the Secretary determines that the unit im- cle of commerce that has been grown, pro- CONTAINERS FOR RETAIL SALE AND FOR SHIP- port price of the good when it enters the duced, or manufactured in Morocco, the MENT.—Packaging and packing materials United States is less than the trigger price United States, or both, and meets the re- and containers for retail sale and shipment for that good. quirements of paragraph (2); or shall be disregarded in determining whether (2) CALCULATION OF ADDITIONAL DUTY.—The (iii)(I) the good is a good covered by Annex a good qualifies as an originating good, ex- additional duty assessed under this sub- 4–A or 5–A of the Agreement; cept to the extent that the value of such section on an agricultural safeguard good (II)(aa) each of the nonoriginating mate- shall be an amount determined in accord- rials used in the production of the good un- packaging and packing materials and con- ance with the following table: dergoes an applicable change in tariff classi- tainers have been included in meeting the re- fication specified in such Annex as a result quirements set forth in subsection (b)(2). If the excess of the The additional duty of production occurring entirely in the terri- (f) INDIRECT MATERIALS.—Indirect mate- trigger price over is an amount equal tory of Morocco or the United States, or rials shall be disregarded in determining the unit import to: both; or . price is: (bb) the good otherwise satisfies the re- whether a good qualifies as an originating Not more than 10 0. quirements specified in such Annex; and good, except that the cost of such indirect percent of the trig- (III) the good satisfies all other applicable materials may be included in meeting the re- ger price. requirements of this section. quirements set forth in subsection (b)(2).

VerDate jul 14 2003 02:05 Jul 24, 2004 Jkt 029060 PO 00000 Frm 00003 Fmt 4634 Sfmt 0634 E:\CR\FM\A22JY7.057 H22PT2 H6618 CONGRESSIONAL RECORD — HOUSE July 22, 2004

(g) TRANSIT AND TRANSSHIPMENT.—A good (ii) general expenses of doing business that good or used to operate equipment and build- shall not be considered to meet the require- are either not allocable to the good or are ings; ment of subsection (b)(1)(A) if, after expor- not related to the growth, production, or (E) gloves, glasses, footwear, clothing, tation from the territory of Morocco or the manufacture of the good, such as administra- safety equipment, and supplies; United States, the good undergoes productive salaries, casualty and liability insur- (F) equipment, devices, and supplies used tion, manufacturing, or any other operation ance, advertising, and sales staff salaries, for testing or inspecting the good; outside the territory of Morocco or the commissions, or expenses. (G) catalysts and solvents; and United States, other than unloading, reload- (2) GOOD.—The term ‘‘good’’ means any (H) any other goods that are not incor- ing, or any other operation necessary to pre- merchandise, product, article, or material. porated into the good but the use of which in serve the good in good condition or to trans- (3) GOOD WHOLLY THE GROWTH, PRODUCT, OR the growth, production, or manufacture of port the good to the territory of the United MANUFACTURE OF MOROCCO, THE UNITED the good can reasonably be demonstrated to States or Morocco. STATES, OR BOTH.—The term ‘‘good wholly be a part of that growth, production, or man- the growth, product, or manufacture of Mo- (h) TEXTILE AND APPAREL GOODS.— ufacture. rocco, the United States, or both’’ means— (1) DE MINIMIS AMOUNTS OF NONORIGINATING (5) MATERIAL.—The term ‘‘material’’ (A) a mineral good extracted in the terri- MATERIALS.— means a good, including a part or ingredient, tory of Morocco or the United States, or (A) IN GENERAL.—Except as provided in that is used in the growth, production, or subparagraph (B), a textile or apparel good both; (B) a vegetable good, as such a good is pro- manufacture of another good that is a new or that is not an originating good because cer- different article of commerce that has been tain fibers or yarns used in the production of vided for in the HTS, harvested in the territory of Morocco or the United States, or grown, produced, or manufactured in Mo- the component of the good that determines rocco, the United States, or both. the tariff classification of the good do not both; (C) a live animal born and raised in the ter- (6) MATERIAL PRODUCED IN THE TERRITORY undergo an applicable change in tariff classi- OF MOROCCO OR THE UNITED STATES, OR fication set out in Annex 4–A of the Agree- ritory of Morocco or the United States, or both; BOTH.—The term ‘‘material produced in the ment shall be considered to be an originating territory of Morocco or the United States, or good if the total weight of all such fibers or (D) a good obtained from live animals raised in the territory of Morocco or the both’’ means a good that is either wholly the yarns in that component is not more than 7 United States, or both; growth, product, or manufacture of Morocco, percent of the total weight of that compo- (E) a good obtained from hunting, trap- the United States, or both, or a new or dif- nent. ping, or fishing in the territory of Morocco ferent article of commerce that has been (B) CERTAIN TEXTILE OR APPAREL GOODS.—A or the United States, or both; grown, produced, or manufactured in the ter- textile or apparel good containing elas- (F) a good (fish, shellfish, and other marine ritory of Morocco or the United States, or tomeric yarns in the component of the good life) taken from the sea by vessels registered both. that determines the tariff classification of or recorded with Morocco or the United (7) NEW OR DIFFERENT ARTICLE OF COM- the good shall be considered to be an origi- States and flying the flag of that country; MERCE.— nating good only if such yarns are wholly (G) a good produced from goods referred to (A) IN GENERAL.—The term ‘‘new or dif- formed in the territory of Morocco or the in subparagraph (F) on board factory ships ferent article of commerce’’ means, except as United States. registered or recorded with Morocco or the provided in subparagraph (B), a good that— (C) YARN, FABRIC, OR GROUP OF FIBERS.—For United States and flying the flag of that (i) has been substantially transformed purposes of this paragraph, in the case of a country; from a good or material that is not wholly textile or apparel good that is a yarn, fabric, (H) a good taken by Morocco or the United the growth, product, or manufacture of Mo- or group of fibers, the term ‘‘component of States or a person of Morocco or the United rocco, the United States, or both; and the good that determines the tariff classi- States from the seabed or beneath the seabed (ii) has a new name, character, or use dis- fication of the good’’ means all of the fibers outside territorial waters, if Morocco or the in the yarn, fabric, or group of fibers. tinct from the good or material from which United States has rights to exploit such sea- it was transformed. (2) GOODS PUT UP IN SETS FOR RETAIL bed; (B) EXCEPTION.—A good shall not be consid- SALE.—Notwithstanding the rules set forth (I) a good taken from outer space, if such in Annex 4–A of the Agreement, textile or ered a new or different article of commerce good is obtained by Morocco or the United by virtue of having undergone simple com- apparel goods classifiable as goods put up in States or a person of Morocco or the United sets for retail sale as provided for in General bining or packaging operations, or mere di- States and not processed in the territory of lution with water or another substance that Rule of Interpretation 3 of the HTS shall not a country other than Morocco or the United be considered to be originating goods unless does not materially alter the characteristics States; of the good. each of the goods in the set is an originating (J) waste and scrap derived from— (8) RECOVERED GOODS.—The term ‘‘recov- good or the total value of the nonoriginating (i) production or manufacture in the terri- ered goods’’ means materials in the form of goods in the set does not exceed 10 percent of tory of Morocco or the United States, or individual parts that result from— the value of the set determined for purposes both; or (A) the complete disassembly of used goods of assessing customs duties. (ii) used goods collected in the territory of into individual parts; and (i) DEFINITIONS.—In this section: Morocco or the United States, or both, if (B) the cleaning, inspecting, testing, or (1) DIRECT COSTS OF PROCESSING OPER- such goods are fit only for the recovery of other processing of those parts that is nec- ATIONS.— raw materials; (A) IN GENERAL.—The term ‘‘direct costs of (K) a recovered good derived in the terri- essary for improvement to sound working processing operations’’, with respect to a tory of Morocco or the United States from condition. good, includes, to the extent they are includ- used goods and utilized in the territory of (9) REMANUFACTURED GOOD.—The term ‘‘re- able in the appraised value of the good when that country in the production of remanufac- manufactured good’’ means an industrial imported into Morocco or the United States, tured goods; and good that is assembled in the territory of as the case may be, the following: (L) a good produced in the territory of Mo- Morocco or the United States and that— (i) All actual labor costs involved in the rocco or the United States, or both, exclu- (A) is entirely or partially comprised of re- growth, production, or manufacture of the sively— covered goods; good, including fringe benefits, on-the-job (i) from goods referred to in subparagraphs (B) has a similar life expectancy to, and training, and the costs of engineering, super- (A) through (J), or meets similar performance standards as, a visory, quality control, and similar per- (ii) from the derivatives of goods referred like good that is new; and sonnel. to in clause (i), (C) enjoys a factory warranty similar to (ii) Tools, dies, molds, and other indirect at any stage of production. that of a like good that is new. materials, and depreciation on machinery (4) INDIRECT MATERIAL.—The term ‘‘indi- (10) SIMPLE COMBINING OR PACKAGING OPER- and equipment that are allocable to the rect material’’ means a good used in the ATIONS.—The term ‘‘simple combining or good. growth, production, manufacture, testing, or packaging operations’’ means operations (iii) Research, development, design, engi- inspection of a good but not physically in- such as adding batteries to electronic de- neering, and blueprint costs, to the extent corporated into the good, or a good used in vices, fitting together a small number of that they are allocable to the good. the maintenance of buildings or the oper- components by bolting, gluing, or soldering, (iv) Costs of inspecting and testing the ation of equipment associated with the or packing or repacking components to- good. growth, production, or manufacture of a gether. (v) Costs of packaging the good for export good, including— (11) SUBSTANTIALLY TRANSFORMED.—The to the territory of the other country. (A) fuel and energy; term ‘‘substantially transformed’’ means, (B) EXCEPTIONS.—The term ‘‘direct costs of (B) tools, dies, and molds; with respect to a good or material, changed processing operations’’ does not include (C) spare parts and materials used in the as the result of a manufacturing or proc- costs that are not directly attributable to a maintenance of equipment and buildings; essing operation so that— good or are not costs of growth, production, (D) lubricants, greases, compounding ma- (A)(i) the good or material is converted or manufacture of the good, such as— terials, and other materials used in the from a good that has multiple uses into a (i) profit; and growth, production, or manufacture of a good or material that has limited uses;

VerDate jul 14 2003 23:57 Jul 23, 2004 Jkt 029060 PO 00000 Frm 00004 Fmt 4634 Sfmt 0634 E:\CR\FM\A22JY7.057 H22PT2 July 22, 2004 CONGRESSIONAL RECORD — HOUSE H6619

(ii) the physical properties of the good or (c) ACTION WHEN INFORMATION IS INSUFFI- shall transmit a copy of any petition filed material are changed to a significant extent; CIENT.—If the Secretary of the Treasury de- under this subsection to the United States or termines that the information obtained Trade Representative. (iii) the operation undergone by the good within 12 months after making a request for (2) PROVISIONAL RELIEF.—An entity filing a or material is complex by reason of the num- a verification under subsection (a)(1) is in- petition under this subsection may request ber of processes and materials involved and sufficient to make a determination under that provisional relief be provided as if the the time and level of skill required to per- subsection (a)(2), the President may direct petition had been filed under section 202(a) of form those processes; and the Secretary to take appropriate action de- the Trade Act of 1974 (19 U.S.C. 2252(a)). (B) the good or material loses its separate scribed in subsection (d) until such time as (3) CRITICAL CIRCUMSTANCES.—Any allega- identity in the manufacturing or processing the Secretary receives information sufficient tion that critical circumstances exist shall operation. to make a determination under subsection be included in the petition. (j) PRESIDENTIAL PROCLAMATION AUTHOR- (a)(2) or until such earlier date as the Presi- (b) INVESTIGATION AND DETERMINATION.— ITY.— dent may direct. Upon the filing of a petition under sub- (1) IN GENERAL.—The President is author- (d) APPROPRIATE ACTION DESCRIBED.—Ap- section (a), the Commission, unless sub- ized to proclaim, as part of the HTS— propriate action referred to in subsection (c) section (d) applies, shall promptly initiate (A) the provisions set out in Annex 4–A and includes— an investigation to determine whether, as a Annex 5–A of the Agreement; and (1) publication of the name and address of result of the reduction or elimination of a (B) any additional subordinate category the person that is the subject of the duty provided for under the Agreement, a necessary to carry out this title consistent verification; Moroccan article is being imported into the with the Agreement. (2) denial of preferential tariff treatment United States in such increased quantities, (2) MODIFICATIONS.— under the Agreement to— in absolute terms or relative to domestic (A) IN GENERAL.—Subject to the consulta- (A) any textile or apparel good exported or production, and under such conditions that tion and layover provisions of section 104, produced by the person that is the subject of imports of the Moroccan article constitute a the President may proclaim modifications to a verification referred to in subsection (a)(1) substantial cause of serious injury or threat the provisions proclaimed under the author- regarding compliance described in subsection thereof to the domestic industry producing ity of paragraph (1)(A), other than provisions (a)(2)(A); or an article that is like, or directly competi- of chapters 50 through 63 of the HTS, as in- (B) a textile or apparel good for which a tive with, the imported article. cluded in Annex 4–A of the Agreement. claim has been made that is the subject of a (c) APPLICABLE PROVISIONS.—The following (B) ADDITIONAL PROCLAMATIONS.—Notwith- verification referred to in subsection (a)(1) provisions of section 202 of the Trade Act of standing subparagraph (A), and subject to regarding a claim described in subsection 1974 (19 U.S.C. 2252) apply with respect to any the consultation and layover provisions of (a)(2)(B); and investigation initiated under subsection (b): section 104, the President may proclaim— (3) denial of entry into the United States (1) Paragraphs (1)(B) and (3) of subsection (i) modifications to the provisions pro- of— (b). claimed under the authority of paragraph (A) any textile or apparel good exported or (2) Subsection (c). (1)(A) as are necessary to implement an produced by the person that is the subject of (3) Subsection (d). agreement with Morocco pursuant to article a verification referred to in subsection (a)(1) (4) Subsection (i). 4.3.6 of the Agreement; and regarding compliance described in subsection (d) ARTICLES EXEMPT FROM INVESTIGA- (ii) before the end of the 1-year period be- (a)(2)(A); or TION.—No investigation may be initiated ginning on the date of the enactment of this (B) a textile or apparel good for which a under this section with respect to any Mo- Act, modifications to correct any typo- claim has been made that is the subject of a roccan article if, after the date on which the graphical, clerical, or other nonsubstantive verification referred to in subsection (a)(1) Agreement enters into force, import relief technical error regarding the provisions of regarding a claim described in subsection has been provided with respect to that Mo- chapters 50 through 63 of the HTS, as in- (a)(2)(B). roccan article under this subtitle. cluded in Annex 4–A of the Agreement. SEC. 205. REGULATIONS. SEC. 204. ENFORCEMENT RELATING TO TRADE IN SEC. 312. COMMISSION ACTION ON PETITION. TEXTILE AND APPAREL GOODS. The Secretary of the Treasury shall pre- (a) DETERMINATION.—Not later than 120 (a) ACTION DURING VERIFICATION.— scribe such regulations as may be necessary days (180 days if critical circumstances have (1) IN GENERAL.—If the Secretary of the to carry out— been alleged) after the date on which an in- Treasury requests the Government of Mo- (1) subsections (a) through (i) of section vestigation is initiated under section 311(b) rocco to conduct a verification pursuant to 203; with respect to a petition, the Commission article 4.4 of the Agreement for purposes of (2) amendments to existing law made by shall make the determination required under making a determination under paragraph (2), the subsections referred to in paragraph (1); that section. the President may direct the Secretary to and (b) APPLICABLE PROVISIONS.—For purposes take appropriate action described in sub- (3) proclamations issued under section of this subtitle, the provisions of paragraphs section (b) while the verification is being 203(j). (1), (2), and (3) of section 330(d) of the Tariff conducted. TITLE III—RELIEF FROM IMPORTS Act of 1930 (19 U.S.C. 1330(d) (1), (2), and (3)) (2) DETERMINATION.—A determination SEC. 301. DEFINITIONS. shall be applied with respect to determinations and findings made under this section as under this paragraph is a determination— In this title: if such determinations and findings were (A) that an exporter or producer in Mo- (1) MOROCCAN ARTICLE.—The term ‘‘Moroc- made under section 202 of the Trade Act of rocco is complying with applicable customs can article’’ means an article that qualifies 1974 (19 U.S.C. 2252). laws, regulations, procedures, requirements, as an originating good under section 203(b) of (c) ADDITIONAL FINDING AND RECOMMENDA- or practices affecting trade in textile or ap- this Act or receives preferential tariff treat- TION IF DETERMINATION AFFIRMATIVE.—If the parel goods; or ment under paragraphs 9 through 15 of arti- determination made by the Commission (B) that a claim that a textile or apparel cle 4.3 of the Agreement. under subsection (a) with respect to imports good exported or produced by such exporter (2) MOROCCAN TEXTILE OR APPAREL ARTI- of an article is affirmative, or if the Presi- or producer— CLE.—The term ‘‘Moroccan textile or apparel dent may consider a determination of the (i) qualifies as an originating good under article’’ means an article that— Commission to be an affirmative determina- section 203 of this Act, or (A) is listed in the Annex to the Agreement tion as provided for under paragraph (1) of (ii) is a good of Morocco, on Textiles and Clothing referred to in sec- section 330(d) of the Tariff Act of 1930) (19 is accurate. tion 101(d)(4) of the Uruguay Round Agree- U.S.C. 1330(d)), the Commission shall find, (b) APPROPRIATE ACTION DESCRIBED.—Ap- ments Act (19 U.S.C. 3511(d)(4)); and and recommend to the President in the re- propriate action under subsection (a)(1) in- (B) is a Moroccan article. cludes— port required under subsection (d), the (3) COMMISSION.—The term ‘‘Commission’’ (1) suspension of liquidation of the entry of amount of import relief that is necessary to means the United States International Trade any textile or apparel good exported or pro- remedy or prevent the injury found by the Commission. duced by the person that is the subject of a Commission in the determination and to fa- verification referred to in subsection (a)(1) Subtitle A—Relief From Imports Benefiting cilitate the efforts of the domestic industry regarding compliance described in subsection From the Agreement to make a positive adjustment to import (a)(2)(A), in a case in which the request for SEC. 311. COMMENCING OF ACTION FOR RELIEF. competition. The import relief recommended verification was based on a reasonable sus- (a) FILING OF PETITION.— by the Commission under this subsection picion of unlawful activity related to such (1) IN GENERAL.—A petition requesting ac- shall be limited to that described in section goods; and tion under this subtitle for the purpose of ad- 313(c). Only those members of the Commis- (2) suspension of liquidation of the entry of justing to the obligations of the United sion who voted in the affirmative under sub- a textile or apparel good for which a claim States under the Agreement may be filed section (a) are eligible to vote on the pro- has been made that is the subject of a with the Commission by an entity, including posed action to remedy or prevent the injury verification referred to in subsection (a)(1) a trade association, firm, certified or recog- found by the Commission. Members of the regarding a claim described in subsection nized union, or group of workers, that is rep- Commission who did not vote in the affirma- (a)(2)(B). resentative of an industry. The Commission tive may submit, in the report required

VerDate jul 14 2003 23:57 Jul 23, 2004 Jkt 029060 PO 00000 Frm 00005 Fmt 4634 Sfmt 0634 E:\CR\FM\A22JY7.057 H22PT2 H6620 CONGRESSIONAL RECORD — HOUSE July 22, 2004 under subsection (d), separate views regard- this section is greater than 1 year, the Presi- section, terminate under subsection (a), if ing what action, if any, should be taken to dent shall provide for the progressive liberal- the President determines that Morocco has remedy or prevent the injury. ization of such relief at regular intervals consented to such relief. (d) REPORT TO PRESIDENT.—Not later than during the period in which the relief is in ef- SEC. 315. COMPENSATION AUTHORITY. the date that is 30 days after the date on fect. For purposes of section 123 of the Trade which a determination is made under sub- (d) PERIOD OF RELIEF.— Act of 1974 (19 U.S.C. 2133), any import relief section (a) with respect to an investigation, (1) IN GENERAL.—Subject to paragraph (2), provided by the President under section 313 the Commission shall submit to the Presi- any import relief that the President provides shall be treated as action taken under chap- dent a report that includes— under this section may not be in effect for ter 1 of title II of such Act. (1) the determination made under sub- more than 3 years. SEC. 316. CONFIDENTIAL BUSINESS INFORMA- section (a) and an explanation of the basis (2) EXTENSION.— TION. for the determination; (A) IN GENERAL.—Subject to subparagraph Section 202(a)(8) of the Trade Act of 1974 (19 (2) if the determination under subsection (C), the President, after receiving an affirm- U.S.C. 2252(a)(8)) is amended in the first sen- (a) is affirmative, any findings and rec- ative determination from the Commission tence— ommendations for import relief made under under subparagraph (B), may extend the ef- (1) by striking ‘‘and’’; and subsection (c) and an explanation of the fective period of any import relief provided (2) by inserting before the period at the end basis for each recommendation; and under this section if the President deter- ‘‘, and title III of the United States-Morocco (3) any dissenting or separate views by mines that— Free Trade Agreement Implementation members of the Commission regarding the (i) the import relief continues to be nec- Act’’. determination and recommendation referred essary to remedy or prevent serious injury to in paragraphs (1) and (2). and to facilitate adjustment by the domestic Subtitle B—Textile and Apparel Safeguard (e) PUBLIC NOTICE.—Upon submitting a re- industry to import competition; and Measures port to the President under subsection (d), (ii) there is evidence that the industry is SEC. 321. COMMENCEMENT OF ACTION FOR RE- the Commission shall promptly make public making a positive adjustment to import LIEF. such report (with the exception of informa- competition. (a) IN GENERAL.—A request under this sub- tion which the Commission determines to be (B) ACTION BY COMMISSION.—(i) Upon a peti- title for the purpose of adjusting to the obli- confidential) and shall cause a summary tion on behalf of the industry concerned that gations of the United States under the thereof to be published in the Federal Reg- is filed with the Commission not earlier than Agreement may be filed with the President ister. the date which is 9 months, and not later by an interested party. Upon the filing of a SEC. 313. PROVISION OF RELIEF. than the date which is 6 months, before the request, the President shall review the re- (a) IN GENERAL.—Not later than the date date any action taken under subsection (a) is quest to determine, from information pre- that is 30 days after the date on which the to terminate, the Commission shall conduct sented in the request, whether to commence President receives the report of the Commis- an investigation to determine whether ac- consideration of the request. sion in which the Commission’s determination under this section continues to be nec- (b) PUBLICATION OF REQUEST.—If the Presi- tion under section 312(a) is affirmative, or essary to remedy or prevent serious injury dent determines that the request under sub- which contains a determination under sec- and to facilitate adjustment by the domestic section (a) provides the information nec- tion 312(a) that the President considers to be industry to import competition and whether essary for the request to be considered, the affirmative under paragraph (1) of section there is evidence that the industry is making President shall cause to be published in the 330(d) of the Tariff Act of 1930 (19 U.S.C. a positive adjustment to import competi- Federal Register a notice of commencement 1330(d)(1)), the President, subject to sub- tion. of consideration of the request, and notice section (b), shall provide relief from imports (ii) The Commission shall publish notice of seeking public comments regarding the re- of the article that is the subject of such de- the commencement of any proceeding under quest. The notice shall include a summary of termination to the extent that the President this subparagraph in the Federal Register the request and the dates by which com- determines necessary to remedy or prevent and shall, within a reasonable time there- ments and rebuttals must be received. the injury found by the Commission and to after, hold a public hearing at which the SEC. 322. DETERMINATION AND PROVISION OF facilitate the efforts of the domestic indus- Commission shall afford interested parties RELIEF. try to make a positive adjustment to import and consumers an opportunity to be present, (a) DETERMINATION.— competition. to present evidence, and to respond to the (1) IN GENERAL.—If a positive determina- (b) EXCEPTION.—The President is not representations of other parties and con- tion is made under section 321(b), the Presi- quired to provide import relief under this sumers, and otherwise to be heard. dent shall determine whether, as a result of section if the President determines that the (iii) The Commission shall transmit to the the reduction or elimination of a duty under provision of the import relief will not pro- President a report on its investigation and the Agreement, a Moroccan textile or ap- vide greater economic and social benefits determination under this subparagraph not parel article is being imported into the than costs. later than 60 days before the action under United States in such increased quantities, (c) NATURE OF RELIEF.— subsection (a) is to terminate, unless the in absolute terms or relative to the domestic (1) IN GENERAL.—The import relief (includ- President specifies a different date. market for that article, and under such con- ing provisional relief) that the President is (C) PERIOD OF IMPORT RELIEF.—Any import ditions as to cause serious damage, or actual authorized to provide under this section with relief provided under this section, including threat thereof, to a domestic industry pro- respect to imports of an article is as follows: any extensions thereof, may not, in the ag- ducing an article that is like, or directly (A) The suspension of any further reduc- gregate, be in effect for more than 5 years. competitive with, the imported article. tion provided for under Annex IV of the (e) RATE AFTER TERMINATION OF IMPORT (2) SERIOUS DAMAGE.—In making a deter- Agreement in the duty imposed on such arti- RELIEF.—When import relief under this sec- mination under paragraph (1), the Presi- cle. tion is terminated with respect to an article, dent— (B) An increase in the rate of duty imposed the rate of duty on that article shall be the (A) shall examine the effect of increased on such article to a level that does not ex- rate that would have been in effect, but for imports on the domestic industry, as re- ceed the lesser of— the provision of such relief, on the date on flected in changes in such relevant economic (i) the column 1 general rate of duty im- which the relief terminates. factors as output, productivity, utilization of posed under the HTS on like articles at the (f) ARTICLES EXEMPT FROM RELIEF.—No capacity, inventories, market share, exports, time the import relief is provided; or import relief may be provided under this sec- wages, employment, domestic prices, profits, (ii) the column 1 general rate of duty im- tion on any article that— and investment, none of which is necessarily posed under the HTS on like articles on the (1) is subject to an assessment of addi- decisive; and day before the date on which the Agreement tional duty under section 202(b); or (B) shall not consider changes in tech- enters into force. (2) has been subject to import relief under nology or consumer preference as factors (C) In the case of a duty applied on a sea- this subtitle after the date on which the supporting a determination of serious dam- sonal basis to such article, an increase in the Agreement enters into force. age or actual threat thereof. rate of duty imposed on the article to a level SEC. 314. TERMINATION OF RELIEF AUTHORITY. (b) PROVISION OF RELIEF.— that does not exceed the lesser of— (a) GENERAL RULE.—Subject to subsection (1) IN GENERAL.—If a determination under (i) the column 1 general rate of duty im- (b), no import relief may be provided under subsection (a) is affirmative, the President posed under the HTS on like articles for the this subtitle with respect to a good after the may provide relief from imports of the arti- immediately preceding corresponding sea- date that is 5 years after the date on which cle that is the subject of such determination, son; or duty-free treatment must be provided by the as described in paragraph (2), to the extent (ii) the column 1 general rate of duty im- United States to that good pursuant to that the President determines necessary to posed under the HTS on like articles on the Annex IV of the Agreement. remedy or prevent the serious damage and to day before the date on which the Agreement (b) PRESIDENTIAL DETERMINATION.—Import facilitate adjustment by the domestic indus- enters into force. relief may be provided under this subtitle in try to import competition. (2) PROGRESSIVE LIBERALIZATION.—If the pe- the case of a Moroccan article after the date (2) NATURE OF RELIEF.—The relief that the riod for which import relief is provided under on which such relief would, but for this sub- President is authorized to provide under this

VerDate jul 14 2003 23:57 Jul 23, 2004 Jkt 029060 PO 00000 Frm 00006 Fmt 4634 Sfmt 0634 E:\CR\FM\A22JY7.057 H22PT2 July 22, 2004 CONGRESSIONAL RECORD — HOUSE H6621 subsection with respect to imports of an ar- The Chair recognizes the gentleman b 1615 ticle is an increase in the rate of duty im- from California (Mr. THOMAS). We Democrats truly believe that we posed on the article to a level that does not Mr. THOMAS. Mr. Speaker, I yield exceed the lesser of— should have a bipartisan approach to myself such time as I may consume. (A) the column 1 general rate of duty im- these types of issues and that there are posed under the HTS on like articles at the (Mr. THOMAS asked and was given certain principles we think should be time the import relief is provided; or permission to revise and extend his re- in all trade agreements, and that is (B) the column 1 general rate of duty im- marks.) that you protect American jobs and posed under the HTS on like articles on the Mr. THOMAS. Mr. Speaker, it is with that you provide for basic inter- day before the date on which the Agreement great pleasure that I rise today in enters into force. national labor standards in these strong support of H.R. 4842, which will agreements, and you do no harm. SEC. 323. PERIOD OF RELIEF. implement the United States-Moroccan (a) IN GENERAL.—Subject to subsection (b), There are certain provisions here the import relief that the President provides Free Trade Agreement. This Free that deal with intellectual rights that under subsection (b) of section 322 may not, Trade Agreement is comprehensive, it we really approve of, but we also be- in the aggregate, be in effect for more than is solid, and it will benefit American lieve that we should never allow our- 3 years. workers across the spectrum, including selves to deprive people of medicine (b) EXTENSION.— farmers, consumers, businesses, and that they may need for their health (1) IN GENERAL.—Subject to paragraph (2), therefore the United States economy. the President may extend the effective pe- and, indeed, for their life. Morocco has been since the inception riod of any import relief provided under this The gentleman from Michigan (Mr. of this country and is today an impor- subtitle for a period of not more than 2 LEVIN) has worked very, very hard to tant strategic partner of the United years, if the President determines that— make certain that we on the Demo- States. This agreement will enhance (A) the import relief continues to be nec- cratic side do not unilaterally just say essary to remedy or prevent serious damage and in fact solidify our economic rela- out of hand that if we do not find the and to facilitate adjustment by the domestic tionship. Not only will this agreement language we want that we will not be industry to import competition; and advance our relationship with Morocco, supporting the bill. Indeed, we are (B) there is evidence that the industry is but it serves as a cornerstone to assist making a positive adjustment to import more concerned with having language the President’s broader initiative to competition. that all civilized and industrialized create a Middle East free trade area by (2) LIMITATION.—Any relief provided under countries would want to have as a the year 2013. this subtitle, including any extensions there- standard that can be reached with the of, may not, in the aggregate, be in effect for The United States has entered into United States on international health. more than 5 years. additional agreements, Morocco, Bah- Mr. Speaker, because of that, I ask SEC. 324. ARTICLES EXEMPT FROM RELIEF. rain. We have entered into trade and unanimous consent to yield the bal- The President may not provide import re- investment framework agreements ance of my time to the gentleman from lief under this subtitle with respect to any with Kuwait, Yemen, Qatar, the United article if— Michigan (Mr. LEVIN), the distin- Arab Emirates, Oman, and Saudi Ara- (1) the article has been subject to import guished senior member of the Sub- bia. Many of these countries have ex- relief under this subtitle after the date on committee on Trade, and that he be al- pressed interest in moving forward and which the Agreement enters into force; or lowed to yield time as he sees fit. (2) the article is subject to import relief negotiating a free trade agreement under chapter 1 of title II of the Trade Act of similar to the Moroccan agreement. The SPEAKER pro tempore (Mr. 1974. Mr. Speaker, this is a long overdue GILCHREST). Is there objection to the SEC. 325. RATE AFTER TERMINATION OF IMPORT day, but it has arrived, and I am request of the gentleman from New RELIEF. pleased to say that the Senate has al- York? When import relief under this subtitle is There was no objection. terminated with respect to an article, the ready acted on this legislation, and rate of duty on that article shall be the rate when the House concludes its business Mr. THOMAS. Mr. Speaker, it is my that would have been in effect, but for the on this bill it will be sent to the Presi- pleasure to yield such time as he may provision of such relief, on the date on which dent for his signature, and this is a consume to the gentleman from Illi- the relief terminates. marvelous way to end this portion of nois (Mr. CRANE), the chairman of the SEC. 326. TERMINATION OF RELIEF AUTHORITY. the 108th Congress. Subcommittee on Trade. No import relief may be provided under Mr. Speaker, I reserve the balance of Mr. CRANE. Mr. Speaker, I thank this subtitle with respect to any article after the date that is 10 years after the date on my time. the chairman for yielding me time. which duties on the article are eliminated Mr. RANGEL. Mr. Speaker, I yield 30 Mr. Speaker, I am quite pleased that pursuant to the Agreement. minutes to the gentleman from Ohio the United States and the Kingdom of SEC. 327. COMPENSATION AUTHORITY. (Mr. BROWN) and ask unanimous con- Morocco have reached agreement on a For purposes of section 123 of the Trade sent that he be allowed to yield time as bilateral free trade agreement. Mo- Act of 1974 (19 U.S.C. 2133), any import relief he sees fit. rocco has long been a key ally in the provided by the President under this subtitle The SPEAKER pro tempore. Is there Middle East. As many have noted, Mo- shall be treated as action taken under chapter 1 of title II of such Act. objection to the request of the gen- rocco was the first country to recog- SEC. 328. BUSINESS CONFIDENTIAL INFORMA- tleman from New York? nize our sovereignty; and in 1786 we TION. There was no objection. signed the U.S.-Morocco treaty of The President may not release information Mr. RANGEL. Mr. Speaker, I yield peace and friendship, which remains which is submitted in a proceeding under myself such time as I may consume. the longest unbroken treaty in our Na- this subtitle and which the President con- First, I would like the record to re- tion’s history. siders to be confidential business information unless the party submitting the con- main clear that in my opinion the gen- Once implemented, this treaty agree- fidential business information had notice, at tleman from California stole the elec- ment will be the second of its kind be- the time of submission, that such information in Florida, and I just want to get tween the U.S. and a moderate Muslim tion would be released, or such party subse- that out of the way. ally, following our trade agreement quently consents to the release of the infor- But having said that, I think that with the Kingdom of Jordan. mation. To the extent a party submits con- this agreement that we reach today This is an important strategic agree- fidential business information to the Presi- gives us an opportunity to see what we dent in a proceeding under this subtitle, the ment. While we have had a long-stand- party also shall submit a nonconfidential could be doing, especially as it relates ing diplomatic relationship with Mo- version of the information, in which the con- to international treaty agreements, if rocco, the U.S.-Morocco FTA cements fidential business information is summarized we attempt to work together. the economic relationship between our or, if necessary, deleted. The government of Morocco has been countries. Two-way trade between the The SPEAKER pro tempore. Pursu- friendly to the United States for years, U.S. and Morocco is significant, at ant to House Resolution 738, the gen- and it is a developing country that has nearly $1 billion per year. The United tleman from California (Mr. THOMAS) strived to have a relationship between States exported over $465 million to and the gentleman from New York (Mr. organized labor and to work to improve Morocco last year, with a trade surplus RANGEL) each will control 1 hour. the quality of life for its workers. of over $79 million.

VerDate jul 14 2003 23:57 Jul 23, 2004 Jkt 029060 PO 00000 Frm 00007 Fmt 4634 Sfmt 0634 E:\CR\FM\A22JY7.057 H22PT2 H6622 CONGRESSIONAL RECORD — HOUSE July 22, 2004 This FTA will eliminate trade bar- Some on the other side, including the year of the Clinton administration rep- riers, lower tariffs, and provide in- Subcommittee on Trade ranking mem- resented a step forward in free trade creased market access for U.S. compa- ber, the gentleman from Michigan (Mr. policy, recent free trade agreements nies. By knocking down trade barriers LEVIN), and the Committee on Ways provide a template to purposely and in Morocco and in the rest of the world, and Means ranking member, the gen- purposefully circumvent labor and en- we can help support even more Amer- tleman from New York (Mr. RANGEL), vironmental laws. ican jobs. In fact, the International have raised thoughtful questions with To make matters worse, USTR and Trade Commission estimates that regard to various provisions contained its pharmaceutical allies are now in- trade between our countries should in this agreement. I think we have cluding language in each trade agree- double once this agreement is imple- worked well together to address these ment in front of this body to ban re- mented. concerns, and I am pleased that we importation in all agreements they ne- This is a strong agreement for all have their support. While we may con- gotiate. The Morocco Free Trade sectors of the U.S. economy. Under its tinue to disagree on certain issues, Agreement is the latest example of this terms, over 95 percent of U.S. exports there is a lot of common ground from trade, we call it, devolution. of consumer and industrial goods to which to work, and I look forward to Last week we voted on the U.S.-Aus- Morocco will become duty free imme- continuing to work with them to pass tralia FTA. While Australian workers, diately. This follows the high stand- important trade agreements. to be sure, enjoy the benefits of good ards set by recently passed trade agree- Unfortunately, I am sure that a labor laws and the enforcement of ments with Singapore, Chile, and Aus- small group on the other side who do those laws, the precedent was the tralia. This is important for U.S. man- oppose free trade may come to the same. Labor and environmental protec- ufacturers. House floor today and argue that this tions were given short shrift in the This is also a strong agreement for agreement is inadequate in certain re- core text of the agreement, while the services sector of our economy, spects. USTR focused on ensuring the gold whether it be telecommunications, e- I would ask my colleagues to not be standard for the pharmaceutical indus- commerce for digital commerce, or new fooled by this rhetoric, which we hear try. opportunities for U.S. financial institu- It is almost as if the U.S. Govern- every time when we contemplate trade tions. The agreement also contains ment dispatched the USTR again to agreements. We heard it last week dur- state-of-the-art intellectual property protect the big drug companies in this ing debate on our Australian Free provisions, including commitments in country. It is no surprise, with the rest Trade Agreement, a country with trademarks, copyrights and patents, as of the record in this body and in this which we have a $9 billion trade sur- well as tough penalties for piracy and administration in protecting the drug plus; we heard it during debate 1 year counterfeiting. Taken together, these companies on every single issue pos- ago regarding Chile and Singapore; and provisions continue a trade policy that sible. best helps U.S. business compete in a I am sure we will hear it today with re- But Morocco is not Australia, and I global marketplace. gard to Morocco, a country with which have significant concerns about labor Mr. Speaker, the Farm Bureau we have a trade surplus. and working conditions there. Like strongly supports this agreement, Please do not be fooled. This discom- Singapore and Chile, the labor provi- which covers all agricultural products, fort has less to do with the provisions sions in the Morocco FTA are inten- because for every $1 in increased im- of this agreement than it does their tionally unenforceable. Violations of ports from Morocco, U.S. farmers can dislike of free trade generally. core labor standards cannot be taken expect $10 in increased exports to Mo- Mr. Speaker, the vast majority of to dispute resolution. The commitment rocco. In 2003, the United States had a Members on both sides of the aisle to enforce domestic labor laws is sub- trade surplus in agricultural products think differently. The American people ject to remedies weaker than those with Morocco of about $82 million, with know that millions of American jobs available for commercial disputes. exports of over $152 million. The Farm are dependent upon free trade. U.S. Again, the commercial part of the Bureau estimates that this agreement products exported to Morocco cur- agreement is always better, if you will, could increase U.S. agricultural ex- rently face an average tariff of more than the labor part of the agreement, ports to over $450 million by 2015, tri- than 20 percent. This FTA will give because of this body’s and this admin- pling our current exports. Further- American businesses exporting to Mo- istration’s low regard for worker more, because Morocco’s agreement rocco a leg up to compete as they com- rights. with the European Union does not in- pete with the European Union. That This violates the negotiating objec- clude agriculture, this FTA should give means better, higher-paying jobs here tive of Fast Track that equivalent rem- American farmers a competitive ad- at home. Perhaps that is why the U.S.- edies should exist for all parts of the vantage over our EU counterparts. Morocco FTA passed the Committee on agreement. Some have questioned whether labor Ways and Means by a 26 to 0 vote on Further, the ‘‘enforce your own laws’’ laws in Morocco are adequate. To that Tuesday and passed the Senate by an standard allows countries the oppor- end, I would like to point out that the overwhelming vote of 85 to 13 yester- tunity to rewrite and weaken their U.S.-Morocco FTA, like all of our trade day. I look forward to another strong, labor laws to attract investment and agreements, requires Morocco to en- bipartisan vote today. seems to be a magnet for corporate in- force domestic labor laws in accord- Mr. Speaker, I would like to empha- terests all over the world to lobby ance with the bipartisan guidance pro- size my strong support for this agree- those legislatures and those congresses vided by the Congress in Trade Pro- ment and my appreciation to the ad- and parliaments to weaken their own motion Authority. ministration and Members on both labor law, because they are not inter- Furthermore, in anticipation of a sides of the aisle for their efforts in national labor organization standards. U.S.-Morocco FTA, the Moroccan gov- completing it. Today we will vote on the U.S.-Mo- ernment, business community, and Mr. THOMAS. Mr. Speaker, I yield rocco Free Trade Agreement con- labor force, working together in a tri- the balance of my time to the gen- taining the same flawed policies on partite manner, found consensus in tleman from Illinois (Mr. CRANE) and labor and on the environment and on passing a comprehensive new labor law ask unanimous consent that he control reimportation. The same provisions in earlier this year that is consistent with the time. Morocco are in the Central America ILO standards. Accordingly, the agree- The SPEAKER pro tempore. Is there Free Trade Agreement. This agreement ment language creating an obligation objection to the request of the gen- does not look much different from to effectively enforce one’s laws is, in tleman from California? CAFTA. So for those of you, and I essence, the same as an enforceable There was no objection. think it is pretty clear a majority of ILO standard in this agreement. I, for Mr. BROWN of Ohio. Mr. Speaker, I the Bush administration would have one, applaud Morocco for its efforts in yield myself such time as I may con- brought that agreement up this sum- overhauling its labor laws in anticipa- sume. mer, those of you voting ‘‘no’’ on tion of completing this important Mr. Speaker, while the Jordan Free CAFTA, you are really voting for a trade agreement. Trade Agreement passed in the last pretty similar agreement on Morocco.

VerDate jul 14 2003 23:57 Jul 23, 2004 Jkt 029060 PO 00000 Frm 00008 Fmt 4634 Sfmt 0634 E:\CR\FM\K22JY7.103 H22PT2 July 22, 2004 CONGRESSIONAL RECORD — HOUSE H6623 Every free trade template brought b 1630 tlewoman from California (Ms. before this House is, as Yogi Berra used Thus, even if Congress changes U.S. LOFGREN). to say, like deja vu all over again. law and the new law were somehow in- Ms. LOFGREN. Mr. Speaker, this First, the Medicare bill passed this consistent with the agreement, that trade agreement that we are consid- year specifically prohibited the U.S. new law would trump the agreement. ering today contains provisions that Government from negotiating lower The agreement cannot prevent Con- essentially mimic the Digital Millen- drug prices for America’s seniors and gress from allowing drug reimporta- nium Copyright Act, a law that is cur- consumers. That was one this Congress tion. rently being litigated and whose scope and this Bush administration gave to The drug reimportation debate in is as yet unclear. The DMCA, while in- the drug industry. Then the pharma- Congress has focused on changes to the tended to protect the interests of copy- ceutical industry punished American Federal Food, Drug and Cosmetic Act right holders, may also endanger the consumers by restricting the volume of that would be necessary to allow drug rights and expectations of consumers. drug inventories in Canada to prevent reimportation, such as changing its There is substantial reason to believe importation to the U.S. Then the U.S. provision that only the original manu- that the DMCA is having an adverse Trade Representative and the adminis- facturer may reimport a drug. There is impact on technological innovation. tration included language in the Aus- nothing in the Morocco FTA or the im- There are a lot of cases on appeal, and tralia Free Trade Agreement that en- plementing bill that addresses the Fed- I think ultimately this body is going to ables pharmaceutical companies to eral Food, Drug and Cosmetic Act for have to sort through the DMCA so that prevent prescription drug reimporta- this requirement. we do not kill and stifle technological tion to the detriment of American con- Mr. Speaker, I yield 2 minutes to our innovation. sumers. Again, another bouquet from distinguished colleague, the gentleman The FCC is now based on the DMCA, this Congress and the Bush administra- from Florida (Mr. SHAW). asserting the right to preapprove every tion to the drug industry. Mr. SHAW. Mr. Speaker, I thank the product that moves data in the United I do not think the connection is any- chairman for yielding me this time, States. It sounds a little bit like the thing but obvious when you look at the and I rise in strong support of the old Stalinist regime. I think we are United States-Morocco Free Trade amount of money the drug industry has going to have to revisit that, and I am Agreement pending before us here in given to the Republican Party, given to concerned about the provisions in this this Chamber today. Republican leadership, and given to act. This agreement will provide 95 per- However, I have been reassured by President Bush. cent of consumer and industrial prod- the Trade Representative as well as the Now similar provisions contained in ucts in bilateral trade become duty- Secretary of Commerce that the inser- last year’s Singapore FTA and in the free immediately upon entering into tion of this provision in these types of upcoming CAFTA are in the Morocco this important, historic agreement. trade agreements will not prevent the FTA bill that will be voted on. Though The chairman has already indicated Congress from doing what ultimately Morocco is not on the list of countries that the Senate has passed this bill and we are going to have to do, which is to today covered by pending drug legisla- it will go right from this Chamber to stop the technological stranglehold tion, the importation provisions in this the President’s desk for signature. that we have placed on that sector of FTA prove this is a precedent, it was in I strongly concur with Ambassador the economy, such as TiVo that we Australia, now it is in this, that the Bob Zoellick when he stated, ‘‘Our read about today, which the FCC is USTR plans to extends this to all fu- agreement with Morocco is not just a now asserting that they get to decide ture trade agreements. single announcement, but a vital step what TiVo gets to innovate. There is broad support in this House, in creating a mosaic of United States So based on those representations, I there is even broader support among free trade agreements across the Mid- am going to certainly vote for this seniors and among consumers, because dle East and North Africa.’’ agreement today. Certainly, my dis- they are not getting campaign con- This agreement sends a strong mes- trict in the heart of the Silicon Valley tributions from the drug industry, for sage to this particular region of the needs to export, especially at a time lowering drug prices and for allowing world. This agreement enables fair and when 35 percent of the households say Americans to purchase safe, affordable free trade between long-standing allies. someone in their home has been out of In fact, Morocco and the United States drugs from other developed nations. work for more than 3 months since signed a Treaty of Peace and Friend- I urge my colleagues to oppose the January of 2001, when Mr. Bush became ship in 1786. The Kingdom has continu- administration’s back-door effort again President. to close drug reimportation through ously provided military and diplomatic At the same time, I call on Congress trade negotiations. It is important to support for United States foreign oper- to show some leadership to the rest of overcome attempts by free trade pro- ations, and this partnership is solid the world by amending the DMCA to ponents to reduce this debate to a and it is respected. make sure that we protect the rights of I congratulate President Bush and choice between free trade and no trade, copyright holders, but that we also do his Majesty, King Mohammed VI, on and frame the discussion around prior- not stifle innovation. ities affected by irresponsible trade this historic Free Trade Agreement. I would like to point out to the gen- Mr. Speaker, I will insert into the policy, labor protections, the environ- tleman on the other side of the aisle RECORD the letters from the Trade Rep- ment, and affordable pharmaceutical that was speaking about prescription resentative, the Secretary of Com- access for all nations. drugs and associate myself with the re- merce, and an article I have written on This is not a debate on whether one marks of the chairman concerning this this subject. supports trade; this is a debate on matter, this House has passed now on EXECUTIVE OFFICE OF THE PRESI- whether one supports responsible two occasions a bill that said that if DENT, THE UNITED STATES TRADE trade. I urge my colleagues to oppose the Food and Drug Administration can REPRESENTATIVE, this irresponsible trade agreement. Washington, DC, June 17, 2003. certify that drugs from various coun- Hon. ZOE LOFGREN, Mr. Speaker, I reserve the balance of tries, namely Canada, are what they my time. House of Representatives, are and they are pure and they are not Washington, DC. Mr. CRANE. Mr. Speaker, I yield my- counterfeit, that they can be imported. DEAR CONGRESSWOMAN LOFGREN: Thank self such time as I may consume. Under the Clinton administration they you for your recent letter regarding the Mr. Speaker, concerns about the con- said they could not certify that. Under Singapore and Chile Free Trade Agreements, sistency of any future drug reimporta- the Bush administration they said they specifically the provisions that reflect the tion provisions with this free trade cannot certify that. I think clearly we U.S. Digital Millennium Copyright Act agreement are hypothetical. The agree- (DMCA). I am pleased that my staff had the are going in that direction, but that opportunity to brief you on our FTA nego- ment has no force under U.S. law ex- has absolutely nothing to do with the tiations, including on the provisions that ad- cept to the extent that Congress passes bill that is before us. dress copyright protection in the digital age. an implementing bill to change U.S. Mr. LEVIN. Mr. Speaker, it is my I would like to address your remaining con- law. pleasure to yield 2 minutes to the gen- cerns.

VerDate jul 14 2003 23:57 Jul 23, 2004 Jkt 029060 PO 00000 Frm 00009 Fmt 4634 Sfmt 0634 E:\CR\FM\K22JY7.104 H22PT2 H6624 CONGRESSIONAL RECORD — HOUSE July 22, 2004 In the Trade Act of 2002, Congress man- ments was to encourage our trading partners nology provides sufficient protection. If dated that we seek provisions that reflect a to provide for strong protection and enforce- you’re not on the FCC’s pre-approved list, standard of protection similar to that found ment of intellectual property rights, which you can’t sell your product. in U.S. law and that provide strong protec- is especially important in the modern digital So what does this mean to you and me? It tion for new and emerging technologies and trade environment. could mean that future consumer electronics new methods of transmitting and distrib- Although many of our trading partners al- and computing products will never come to uting products embodying intellectual prop- ready belong to the World Trade Organiza- market. In our digital world, the FCC is not erty. To that end, we have included provi- tion Agreement on Trade-Related Aspects of only targeting television sets. Computers, sions in our FTAs that reflect the historic Intellectual Property Rights, the World In- DVRs and handheld devices can handle and precedent setting standards for intellec- tellectual Property Organization (WIPO) flagged content. Indeed, any future device tual property protection set forth in the Copyright Treaty, and the WIPO Perform- capable of handling digital content could po- DMCA. We firmly believe that this legisla- ances and Phonograms Treaty, FTAs build tentially be covered. tion is evidence of Congressional leadership on that foundation. The Singapore and Chile Do we want the FCC wielding veto power internationally and should be a model for FTAs will ensure that authors and owners of over a new Apple computer, Palm handheld how governments strike the correct balance copyrighted works made available in digital or Motorola cell phone? Of course not. This between copyright holders and the interests form receive commensurate protection, country’s technological leadership is rooted of society in the digital age. thereby strengthening trade relations with in our ability to quickly adapt and innovate, Our FTA provisions that reflect the DMCA these countries. They also provide a frame- words that are not often used to describe the were developed in close consultation with work of certainty around which companies federal government. the same major domestic stakeholders that can begin to build legitimate businesses for The FCC’s plan sounds a little like the old worked with Congress to forge the balance in the enjoyment of creative works. Soviet Union. And we know how well cen- the DMCA. As you may be aware, these I also would like to take the opportunity tralized state control worked for them. groups have recently reiterated their support to respond to specific issues raised in your That’s why Congress never gave the FCC the for our FTAs to Members of Congress and to letter. You expressed concern that the incor- power to dictate the design of new computers me. While reflecting the balance in the poration of provisions based on the Digital or consumer electronics devices. In fact, in the Digital Millennium Copy- DMCA, our FTA provisions merely distill the Millennium copyright Act (DMCA) in the right Act, Congress specifically disavowed key principles of U.S. legislation; they do Singapore and Chile FTAs may have an ad- such mandates. Apparently, the FCC never not replicate every detail. This is the ap- verse impact on technological innovation. I got the message. Instead, the FCC believes proach we take throughout the text of the believe, however, that strong protection and that its ancillary authority over broad- Agreement when reflecting U.S. standards. enforcement of intellectual property rights casting extends to every product that brush- We take this approach, in part, because we in FTAs facilitate the expansion of trade and recognize and support, as with all provisions es up against digital television. To justify investment in digital technologies and prod- their absurd conclusion, the commissioners of U.S. law, the Congressional prerogative to ucts, thereby advancing the interests of all adopt further amendments as may be deemed even argue that they have the authority to parties to the FTAs. regulate these industries because Congress appropriate in the future. You also expressed concern about the bal- I fully understand that the DMCA has never said they couldn’t. ance of interests reflected in both the DMCA The main problem with this or any other stimulated a vigorous debate in America as and the Singapore and Chile FTAs. As you well as in Congress and that there are legis- government mandate is that they are rooted are aware, in enacting the DMCA, Congress in the present. It is impossible to predict lative proposals to amend the DMCA to ad- worked hard to achieve a balance among the where American ingenuity will take us. We dress what may be unintended consequences various groups with interests in the legisla- should do everything we can to foster this arising from its implementation. Although tion, including copyright owners, users, and ingenuity, not put up roadblocks that will at this time there does not appear to be Internet service providers, that also met the only place our inventors at a competitive widespread support in Congress, or the na- international obligations set forth in the disadvantage. tional community at large, for substantially WIPO treaties. That balance is reflected in The FCC’s attempt to become the self- revising the existing, fundamental balance the Singapore and Chile FTAs. If the Con- anointed gatekeeper to future innovation struck by the DMCA, we are quite confident gress amends the DMCA in the future, the will undoubtedly benefit the small consor- that our FTA provisions are sufficiently FTAs should then be reviewed for consist- tium of companies with approved tech- broad to encompass amendments that Con- ency with the amended DMCA. nologies. But it will also diminish the incen- gress may adopt in the future that remain I believe that the U.S. free trade agree- tive to bring new technologies to market, within the overall balance struck in the ments with Singapore and Chile are mile- hurt consumers who have bought pre-flag de- DMCA. Moreover, the DMCA itself provides stones in progress toward strong protection vices, and set a dangerous precedent for gov- for a periodic administrative rule-making and enforcement of intellectual property ernment mandates on technology. procedure to review the effect of the DMCA rights protection for the digital age. I hope That’s not to say that the broadcast flag on users’ ability to make certain non-in- that my comments have helped you to decide proposal should not be discussed. If Congress, fringing uses and to create additional exemp- in favor of supporting the Singapore and not the FCC, decides that the broadcast flag tions to allow for such uses—a carve-out Chile FTAs. is necessary, then it should examine ways to echoed in the FTA provisions. If you have any further questions, please implement the flag without stifling innova- As I believe my staff clarified during their feel free to contact me or Brenda Becker, As- tion and competition. For example, vol- briefing, we have not had the opportunity to sistant Secretary for Legislative and Inter- untary, non-proprietary standards that pre- examine H.R. 1066 and H.R. 107 in detail and governmental Affairs, at (202) 482–3662. serve interoperability could be set by inter- have not opined on the extent to which these Sincerely, national non-governmental bodies. proposals are consistent with our FTAs. DONALD L. EVANS. The real goal should not be to slow down What my staff did indicate, which I want to innovation, but to find ways for broadcasters reiterate here, is that the Administration [From San Jose Mercury News, Nov. 17, 2003.] to get paid when they deserve payment. has sought to reflect faithfully a standard of FCC RULE COULD HARM TECH INNOVATION Mr. CRANE. Mr. Speaker, I yield 4 protection for intellectual property similar to that contained in U.S. law as instructed (By Zoe Lofgren) minutes to the gentleman from Penn- by Congress, but in no way to require a The Federal Communications Commission sylvania (Mr. ENGLISH), who is cochair change in U.S. law. Legislative proposals recently gave itself unprecedented powers to of the Morocco Caucus. that do not fundamentally alter the existing keep new television sets, digital video re- Mr. ENGLISH. Mr. Speaker, I thank overall balance struck in U.S. law, and that corders, handheld devices, third-generation the gentleman for yielding me this comply with all existing international obli- cell phones and even computers out of the time. gations regarding intellectual property, will hands of American consumers. Mr. Speaker, today we are consid- also comply with our FTAs. How? The FCC issued new rules on the so- ering landmark legislation to imple- called ‘‘broadcast flag,’’ a proposal first put I hope this information is helpful to you. ment the U.S.-Morocco Free Trade Sincerely, forth by the Motion Picture Association of Agreement, and delve deeper into the ROBERT B. ZOELLICK. America purportedly to encourage broadcasters to offer more digital programming. bonds of friendship with the Kingdom THE SECRETARY OF COMMERCE, The broadcast flag is a single bit of data of Morocco. Just 4 days ago, we marked Washington, DC, June 5, 2003. added to the digital television shows beamed exactly 217 years of official relations Hon. ZOE LOFGREN, out across the country. By itself, the bit does with Morocco, the longest unbroken House of Representatives, nothing. Instead, the meat of the new rule diplomatic relationship in the exist- Washington, DC. requires every future device capable of play- ence of the United States. While the DEAR REPRESENTATIVE LOFGREN: Thank ing these shows to recognize the flag and in- you for your letter expressing your concerns clude built-in technologies that prevent furthering of our positive ties with Mo- regarding the Singapore and Chile Free them from being pirated. rocco is certainly an important goal, Trade Agreements (FTAs). One of the impor- But here’s the kicker. Under the new rules, this FTA really stands on its own as a tant negotiating objectives of these agree- the FCC gets to decide if a particular tech- benefit to our economy.

VerDate jul 14 2003 23:57 Jul 23, 2004 Jkt 029060 PO 00000 Frm 00010 Fmt 4634 Sfmt 0634 E:\CR\FM\A22JY7.066 H22PT2 July 22, 2004 CONGRESSIONAL RECORD — HOUSE H6625 The U.S.-Morocco Free Trade Agree- Mr. Speaker, I believe the passage of $10, $15 an hour, have unions, protect ment was negotiated over a period of a this FTA will be a significant achieve- the environment, when I can go to Mo- year and a half and, once implemented, ment in moving toward a stronger rocco, I can go to China, and big money will be truly a win-win for both of our trade policy for the United States, and interests in this country, with the help countries. This is, in my view, an FTA on the strength of that, I urge all of my of the Republican leadership, is going which contains the best market access colleagues to join me in supporting to make it easier for me to go abroad. package of any FTA that has been ne- this FTA. What is happening to this economy is gotiated with a developing country. Mr. BROWN of Ohio. Mr. Speaker, I an outrage in terms of the needs of our I believe it has the potential to serve yield 4 minutes to the gentleman from kids. The U.S. Department of Labor as a model for future free trade agree- Vermont (Mr. SANDERS). has projected that 7 out of the 10 fast- ments with developing countries, par- Mr. SANDERS. Mr. Speaker, I thank est-growing jobs in the next 10 years ticularly because of tough provisions my friend from Ohio for yielding me are going to pay low wages, require a to enforce intellectual property rights. this time. high school degree, with minimal bene- The Morocco Free Trade Agreement Let me begin by saying I am prepared fits. We are losing our manufacturing contains the most advanced intellec- to yield time to any proponent of this base. In the last 3 years, 2.7 million tual property chapter in any FTA ne- bill who can tell me what the minimum good-paying manufacturing jobs gone. gotiated thus far. It contains language wage is in Morocco. I heard that it has Now they are taking our information that not only commits Morocco to gone up. What is it, 20 cents an hour, 30 technology jobs to India. Gone. And fight piracy, but to fight piracy on cents an hour? What is the minimum what is going to be left for our kids? products that are potentially coming wage in Morocco? Well, Wal-Mart is doing very well; through as transshipment. I am prepared to yield time if anyone Burger King is doing very well. Is that Morocco is a natural market for who is supporting this bill will tell me what we want for our kids? Why are we many American companies, and a Free if Morocco is a democratic society. We selling out the middle class of this Trade Agreement will bring both coun- heard about workers’ rights. My under- country? Why are we allowing cor- tries closer together for mutual ben- standing is that it is an hereditary porate America to go abroad? efit. monarchy where the legislature there Well, I would suggest that we should The International Trade Commission could be abolished at any time by the look at the campaign contributions has also determined that U.S. exports King. Does anybody want to respond to that come in to this institution from to Morocco are likely to increase dra- that? I am waiting. I hear no response. corporate America. No, let us have matically, by $740 million, while im- A few minutes ago, Mr. Speaker, we trade that is fair, not this trade agree- ports from Morocco are likely to in- were told that gay marriage was going ment. crease by nearly $200 million after full to destroy the fabric of American soci- Mr. CRANE. Mr. Speaker, I yield my- implementation of the Free Trade ety. Well, I will tell my colleagues self such time as I may consume. Agreement. what is going to destroy the fabric of The new Morocco labor law is a sig- The major reason for the anticipated American society: pieces of legislation nificant improvement over existing increase in U.S. exports is due to the like this that are wiping out the mid- labor laws and regulations. The law fact that on day one of this agreement, dle class of this country, are lowering raises the minimum employment age 95 percent of tariffs on industrial and our standard of living, are making the from 12 to 15 to combat child labor, re- consumer goods will be eliminated. Mo- gap between the rich and the poor grow duces the work week from 48 to 44 rocco has demonstrated consistently wider. hours with overtime rates payable for its commitment to being a fair and re- I would yield again to my friends who additional hours, and calls for a peri- sponsible trading partner. They have are pushing this bill if they will tell me odic review of the Moroccan minimum taken steps to guarantee the security whether they agree with Thomas wage. of foreign investment in Morocco, and Donohue, the President of the U.S. have enacted sweeping labor laws to Chamber of Commerce, who several b 1645 protect their workers and to improve weeks ago urged, urged American com- Effective July 1, 2004, the minimum women’s rights. These negotiations panies to outsource, urged American wage in Morocco will increase by 10 were a catalyst for Morocco moving companies to throw our workers out on percent. Morocco did this to make forward with a modernizing labor code. the street and go to China or Morocco. itself a more attractive FTA partner. Moreover, workers in Morocco have Will any proponents of this legisla- Mr. Speaker, I yield 2 minutes to the the right to associate, collectively bar- tion tell me that they disagree with gentleman from Texas (Mr. BRADY). gain, and to strike. The new labor law Mr. Donohue? I yield time to anybody Mr. BRADY of Texas. Mr. Speaker, I also improved worker safety, raised the who says they disagree with Mr. thank the chairman for yielding me minimum wage, and created additional Donohue, the chairman of the Chamber the time and for his leadership on this safeguards on child labor, all core obli- of Commerce. I do not hear it. issue. gations of the U.S.-Morocco Free Trade In other words, the proponents of this I hope the American public was lis- Agreement, including labor and envi- bill are telling us that they think it is tening carefully to our friend and col- ronmental provisions, which are sub- a good idea that Americans workers league from Vermont. What he said ject to the dispute settlement provi- are thrown out on the street, lose de- was what tears apart the fabric of sions of the agreement, and the agree- cent paying jobs, and are forced to America is to allow our farmers to sell ment includes strong enforcement compete in a race to the bottom more of their corn to Morocco. He mechanisms, including the ability to against desperate people all over the made the point that our farmers who suspend trade concessions or establish world who are working for pennies an are trying to sell more corn to Mo- monetary assessments. hour. rocco, because they buy a lot of it, our This agreement deepens America’s Mr. Speaker, what is happening in farmers who grow wheat and sell more dialogue with the Middle East and our society today is that while produc- of it will sell more of it to Morocco, North Africa, and builds upon the free tivity increases, while technology ex- that that is bad for America, that com- trade agreements already reached with pands, the reality is that the middle panies in Texas, from workers, from Israel and Jordan. class is shrinking and the average petro chemical plants, our computer The U.S.-Morocco Free Trade Agree- American worker is working longer manufacturing plants, our chemical ment, in my view, is an essential part hours for lower wages. There are a lot plants, hard-working workers who are of the puzzle in moving forward to of reasons for that, but certainly one of trying to build more products to sell strengthen our trade relationships with the reasons is that our working class, overseas to Morocco, that this will tear our trading partners, establish strong- our middle class is being asked to com- apart the fabric of America. er, more enforceable trade agreements, pete against desperate people in Mo- I think it is just the opposite. The and establish over time a level playing rocco, in China, all over this world. problem we have is that there are too field in which American companies and And American corporations are saying, many American-need-not-apply signs American workers can thrive. why should I pay an American worker around this world. We are not able to

VerDate jul 14 2003 23:57 Jul 23, 2004 Jkt 029060 PO 00000 Frm 00011 Fmt 4634 Sfmt 0634 E:\CR\FM\K22JY7.106 H22PT2 H6626 CONGRESSIONAL RECORD — HOUSE July 22, 2004 sell our products and our goods and our which began well over 200 years ago, FTA is in the best agriculture interest services across the world. American where Morocco was the first country to of the United States. Number two, the workers are the most productive. Our recognize the newly independent FTA will give us market access for products are great. We need a chance United States of America. Morocco businesses. And, three, it meets the to sell them to customers throughout today remains one of the United labor and environmental standards set the world, and what this agreement States’ closest political allies in the out in the Trade Promotion Act. does is make sure that we are given a war against terror and a steadfast In the area of agriculture, it means, fair chance to sell the great products friend in advancing peace in the Middle for example, that we are going to have that we build. East. an estimated triple increase in our ex- In Texas we are the fourth largest ex- And it is for these reasons I urge all ports to Morocco. In the area of indus- porting State to Morocco, $23 million of my colleagues to support the U.S.- trial products, it is suggested that our of goods and services: ag products, pe- Morocco Free Trade Agreement. This is greater market access will be very im- troleum products, chemical products, a solid agreement that promotes our portant. More than 95 percent of the bi- processed foods, computers and elec- commercial interests and contains im- lateral trade industrial products will tronics. All made by Texas workers portant provisions on agriculture, become duty-free immediately upon who want to sell their products over- labor, and intellectual property. entry into force of this agreement. And seas, but we are blocked. This agree- Mr. CRANE. Mr. Speaker, let me first in the third area, as I mentioned, it ment opens those markets for all work- congratulate the former speaker for his does meet the labor and environmental ers, because that is their future, to sell presentation and what he had to say. standards. more products to whoever can afford to Mr. Speaker, I yield 3 minutes to the Moreover, Morocco recently passed a do that. gentleman from Nebraska (Mr. BEREU- comprehensive new labor law that And as Americans, we know that un- TER). meets international labor organiza- less we open these markets, if we just (Mr. BEREUTER asked and was tional core labor standards, including agree to sell to ourselves, to allow Eu- given permission to revise and extend right of workers to strike. rope to sell to these markets, Asia to his remarks.) In conclusion, this is a very good step Mr. BEREUTER. Mr. Speaker, I rise sell to these markets, South America for the United States. It is very good in strong support of this legislation. I to sell to these markets, our prosperity for our bilateral relations, and I would thank the chairman for yielding me is in danger. This is a great agreement say finally that the Mediterranean time. for American workers, and I strongly Group of the NATO Parliamentary As- There are a number of economic rea- support it. sembly, I happen to be the president, sons why this FTA is very much in the Mr. LEVIN. Mr. Speaker, I yield 3 recently visited Morocco, and as a re- national interest of the United States, minutes to the gentleman from New sult of that visit, by unanimous action but I want to focus a few comments on York (Mr. MEEKS). in the standing committee, we decided the diplomatic or foreign policy rea- Mr. MEEKS of New York. Mr. Speak- to upgrade Morocco from observer sta- sons. The FTA with Morocco is in our er, I thank the gentleman for yielding tus to an associate member status be- Nation’s interest because it will begin me this time. cause of the significant progress they Passage of this agreement stands to to implement the President’s vision for are making in democracy in their par- greatly benefit the United States of a U.S.-Middle East free trade area. I liament. America, which enjoys a consistent also believe it is important to support For all of these reasons, I urge strong yearly trade surplus with Morocco, to- the economic reform that is going on support of the legislation. taling over $1.5 billion from 1992 to in Morocco, a nation where Islam has 2003. This agreement is a high-stand- deep roots and which occupies a leader- Mr. BROWN of Ohio. Mr. Speaker, I 1 ard, comprehensive one that will elimi- ship position in the Arab world. yield 3 ⁄2 minutes to the gentleman nate tariff and nontariff barriers to As mentioned frequently here, Amer- from Ohio (Mr. STRICKLAND). trade. ican friendship in Morocco extends Mr. STRICKLAND. Mr. Speaker, here In fact, the agreement represents the back to the beginning of our Republic. we go again contemplating the passage best industrial and consumer goods We have the longest-standing friend- of another free trade agreement before market access package of any U.S. ship treaty with that country of any in we have done the basic reforms that we FTA with a developing nation. The the world. The enactment of the FTA need to do to protect the American agreement also levels the playing field legislation with Morocco is a vitally company, the American workers, the for U.S. businesses, farmers, and work- important part of the process of boost- American community. ers vis-a-vis European competitors, ing economic reform inside the King- The truth is we need a moratorium who have for far too long enjoyed a dom of Morocco. In addition, this FTA on any further trade agreements until competitive advantage over the United helps further link the Middle East into we reach a political consensus in this States suppliers of goods, services, and the global economic system and spur country about what those agreements agricultural products. The agreement economic growth and investment. are going to be like. will also serve as a key building block These closer commercial links with our For example, there is such inconsist- toward the establishment of a broader key allies such as Morocco are criti- ency in the decisions we make in this Middle East free trade area. cally important to the region of the body. Are people aware that we cannot Through this FTA, Morocco also sets world. And hear this: this legislation go visit Cuba as free American citi- an important example throughout the makes it less likely, less likely that zens? And the administration has just developing world of the benefits of jobs and businesses will move to Mo- recently decided that those who live in trade liberalization and strategic im- rocco, not more likely. this country with relatives in Cuba can portance of high-standard rules that It is also vital to point out that Mo- only go there every 10 years to visit should govern trade. In this respect, rocco has recently undertaken a diplo- their loved ones. Why? Well, because the FTA includes the best of intellec- matic offensive designed to improve its Cuba is a communist country. Fidel tual property rights protections nego- relations with its neighbors to settle a Castro is an authoritarian dictator. tiated to date by the United States. 3-decade-old Saharan conflict. It is also And, yet, we are encouraging free trade In addition, the Moroccan govern- stepping up its antiterrorism coopera- with China. We want our citizens to ment has used the FTA negotiating tion with the U.S. and with Algeria. travel to China. We want our compa- process to strengthen its own laws, par- And recently, it was designated as a nies to invest in China. ticularly with respect to the status of major non-NATO ally. That should en- The last time I knew or heard, China women and labor rights, two measures able it to get the requisite assistance was a communist country, it was au- which distinguish Morocco from many and cooperation to strengthen our re- thoritarian, it was a country that rou- of its Arab neighbors. gional and bilateral relationship. tinely violates human rights, puts Finally, this FTA is historic. It is a Mr. Speaker, for economic or export those of religious faith in prison. Why historic milestone in the United States reasons, there are three primary rea- the inconsistency? Why the inconsist- and Morocco bilateral relationship, sons why this is a good step for us. This ency?

VerDate jul 14 2003 23:57 Jul 23, 2004 Jkt 029060 PO 00000 Frm 00012 Fmt 4634 Sfmt 0634 E:\CR\FM\K22JY7.109 H22PT2 July 22, 2004 CONGRESSIONAL RECORD — HOUSE H6627 Now, my friends talk about how we Mr. PITTS. I yield to the gentleman During his tenure the former Sec- are going to sell all of the wheat, agri- from Illinois. retary of State Baker proposed a plan cultural products to Morocco. Those Mr. CRANE. The Committee on Ways that both parties accepted at first, and who like these free trade agreements and Means’ report states the clear cov- the Moroccans accepted the plan, but enjoy talking about all of the products erage of the free trade agreement. ‘‘The as soon as the people of Western Sa- we are going to export. They never talk committee notes that the FTA will hara accepted they withdrew their sup- about all the products that are being cover trade with and investment in the port, and I am deeply concerned that flooded, poured into this country. territory of Morocco as recognized by the Moroccan government, as pat- Every day that passes, this country has the United States, which does not in- terned, will use this agreement with a $1.5 billion trade deficit, every day, clude the Western Sahara.’’ help from friends in France and others $1.5 billion. Mr. PITTS. I thank the chairman for to attempt to increase its exploitation I have here a copy of the economic that clarification. of the resources. report of the President. He submitted The following is a letter from USTR I just want to clarify the statement this and transmitted it to Congress in making clear that we do not support about the people of Western Sahara. February of this year. His signature is Morocco’s claim over the Western Sa- Earlier today someone said that the on this economic report. I think that hara and the FTA does not recognize or Sahrawis are terrorists. I take excep- makes him responsible for what is in- include the Western Sahara. tion to this remark, as the people of side it. EXECUTIVE OFFICE OF THE PRESI- Western Sahara, and like many others On page 25 of that report under a sec- DENT, THE UNITED STATES TRADE in North Africa and the Middle East, tion titled ‘‘International Trade and REPRESENTATIVE, have actually tried to peacefully solve Finance’’ are these words: ‘‘When a Washington, DC, July 20, 2004. the conflict. The State Department good or a service is produced at lower Hon. JOSEPH R. PITTS, cost in another country, it makes sense House of Representatives, does not consider the people of Western to import it rather than to produce it Washington, DC. Sahara to be terrorists. It is a domestically.’’ DEAR CONGRESSMAN PITTS: Thank you for misstatement. It is wrong. It is unpro- I read it again for those who may your letter of July 19, 2004, concerning our ductive in our fight against terrorism have thought they were unable to be- Free Trade Agreement (FTA) with Morocco to suggest that they are, and our own and the status of Western Sahara. lieve their ears. In the President’s eco- State Department does not believe the The Administration’s position on Western people of Western Sahara are terror- nomic report to the Nation are these Sahara is clear: sovereignty of Western Sa- words: ‘‘When a good or a service is hara is in dispute, and the United States ists. produced at lower cost in another fully supports the United Nations’ effort to Secondly, I visited there. I visited country, it makes sense to import it resolve this issue. The United States and the refugee camps. I know the people. rather than to produce it domesti- many other countries do not recognize Mo- They are not terrorists. Members of cally.’’ roccan sovereignty over Western Sahara and this House should go to the refugee I ask Mr. Don Evans, Secretary of have consistently urged the parties to work camps. They should see the terrible Commerce, reported to be one of the with the United Nations to resolve the con- malnutrition of the people, the lack of President’s closest personal friends, if flict by peaceful means. health care, the refugee camps. If they The FTA will cover trade and investment he would give me a list of the products in the territory of Morocco as recognized would visit the refugee camps they that cannot be produced at lower cost internationally, and will not include Western would know that the information fed in another country, a country like Sahara. As our Harmonized Tariff Schedule to them by supporters is inaccurate. China where they use slave labor, makes clear, for U.S. Customs purposes, the Mr. Chairman, I am voting for the where they violate human rights. We United States treats imports from Western FTA because there is protection for the need to wake up in this country. The Sahara and Morocco differently. Nothing in people and resources of Western Sahara American people need to demand that the FTA will require us to change this prac- and because I believe the free trade the President and those of us who serve tice. The Administration will draft the proc- will help the people of Morocco and in this Chamber put their needs first. lamation authorized in the legislation imple- those of surrounding countries. Mr. CRANE. Mr. Speaker, I yield to menting the FTA (H.R. 4842) to provide preferential tariff treatment for goods from the The following is a series of items the gentleman from Pennsylvania (Mr. territory of Morocco. Preferential tariff that would make clear that this agree- PITTS) for the purpose of engaging in a treatment will not be provided to goods from ment should not be abused by Morocco colloquy. Western Sahara. to profit off of land that it has no le- Mr. PITTS. Mr. Speaker, I would like I hope this letter addresses your question gitimate claim to. to thank the gentleman from Cali- regarding the FTA and the status of Western WESTERN SAHARA—ADVISORY OPINION OF 16 fornia (Chairman THOMAS) as well for Sahara. I encourage you to support the FTA. OCTOBER 1975 his leadership on the U.S.-Morocco It will create economic opportunities for INTERNATIONAL COURT OF JUSTICE Free Trade Agreement. I am a free U.S. manufacturing and service firms, workers, and farmers, and will support economic In its Advisory Opinion which the General trader and believe that free trade helps Assembly of the United Nations had re- our Nation and the nations of the reforms and foreign investment in Morocco. Thank you again for your letter. Please quested on two questions concerning West- world. However, I am deeply concerned feel free to contact me should you have fur- ern Sahara, the Court, about the issue of Western Sahara, and ther questions. With regard to Question I, ‘‘Was Western I have had concerns that the U.S. need- Sincerely, Sahara (Rio de Oro and Sakiet El Hamra) at ed to make clear that this free trade ROBERT B. ZOELLICK. the time of colonization by Spain a territory agreement covers only the belonging to no one (terra nullius)?’’, Mr. CRANE. Mr. Speaker, I yield 2 —decided by 13 votes to 3 to comply with internationally- and the U.S.-recog- minutes to the gentleman from Penn- nized borders of Morocco and does not the request for an advisory opinion; sylvania (Mr. PITTS). —was unanimously of opinion that West- include the disputed territory of West- Mr. PITTS. Mr. Speaker, thank you ern Sahara (Rio de Oro and Sakiet El Hamra) ern Sahara. It is my understanding for your leadership. at the time of colonization by Spain was not that the language in the conference re- While trade is a vital component to a territory belonging to no one (terra port makes clear that the free trade strengthening with the greater Middle nullius). agreement does not cover resources, With regard to Question II, ‘‘What were the East, promoting the spread of democ- goods, services, or any other entity re- legal ties between this territory and the racy is even more so. The Sahrawi are lated to trade that originates in West- Kingdom of Morocco and the Mauritanian a peaceful pro-Western, pro-democracy ern Sahara. entity?’’, the Court I would ask the gentleman, does the people. They want the international —decided by 14 votes to 2 to comply with community, including the U.N. Secu- the request for an advisory opinion; U.S.-Morocco Free Trade Agreement —was of opinion, by 14 votes to 2, that cover trade with the disputed territory rity Council and the United States, to uphold its commitment to a free and there were legal ties between this territory of Western Sahara? and the Kingdom of Morocco of the kinds in- transparent referendum for self-deter- b 1700 dicated in the penultimate paragraph of the mination, and it is unacceptable that Advisory Opinion; Mr. CRANE. Mr. Speaker, will the Morocco has been allowed to prevent —was of opinion, by 15 votes to 1, that gentleman yield? that vote from taking place. there were legal ties between this territory

VerDate jul 14 2003 23:57 Jul 23, 2004 Jkt 029060 PO 00000 Frm 00013 Fmt 4634 Sfmt 0634 E:\CR\FM\K22JY7.110 H22PT2 H6628 CONGRESSIONAL RECORD — HOUSE July 22, 2004 and the Mauritanian entity of the kinds indi- questions submitted are framed in terms of Question I: ‘‘Was Western Sahara (Rio de Oro cated in the penultimate paragraph of the law and raise problems of international law. and Sakiet El Hamra) at the Time of Col- Advisory Opinion. They are in principle questions of a legal onization by Spain a Territory Belonging to The penultimate paragraph of the Advisory character, even if they also embody ques- No One (terra nullius)?’’ Opinion was to the effect that: tions of fact, and even if they do not call (paras. 75–83 of Advisory Opinion) The materials and information presented upon the Court to pronounce on existing For the purposes of the Advisory Opinion, to the Court show the existence, at the time rights and obligations. The Court is accord- the ‘‘time of colonization by Spain’’ may be of Spanish colonization, of legal ties of alle- ingly competent to entertain the request. considered as the period beginning in 1884, giance between the Sultan of Morocco and Propriety of Giving an Advisory Opinion when Spain proclaimed its protectorate over some of the tribes living in the territory of (paras. 23–74 of Advisory Opinion) the Rio de Oro. It is therefore by reference to Western Sahara. They equally show the ex- Spain put forward objections which in its the law in force at that period that the legal istence of rights, including some rights review would render the giving of an opinion concept of terra nullius must be interpreted. lating to the land, which constituted legal incompatible with the Court’s judicial char- In law, ‘‘occupation’’ was a means of peace- ties between the Mauritanian entity, as un- acter. It referred in the first place to the fact ably acquiring sovereignty over territory derstood by the Court, and the territory of that it had not given its consent to the otherwise than by cession or succession; it Western Sahara. On the other hand, the Court’s adjudicating upon the questions sub- was a cardinal condition of a valid ‘‘occupa- Court’s conclusion is that the materials and mitted. It maintained (a) that the subject of tion’’ that the territory should be terra information presented to it do not establish the questions was substantially identical to nullius. According to the State practice of any tie of territorial sovereignty between that of a dispute concerning Western Sahara that period, territories inhabited by tribes or the territory of Western Sahara and the which Morocco, in September 1974, had in- peoples having a social and political organi- Kingdom of Morocco or the Mauritanian en- vited it to submit jointly to the Court, a pro- zation were not regarded as terrae nullius: in tity. Thus the Court has not found legal ties posal which it had refused: the advisory ju- their case sovereignty was not generally con- of such a nature as might affect the applica- risdiction was therefore being used to cir- sidered as effected through occupation, but tion of General Assembly resolution 1514 cumvent the principle that the Court has no through agreements concluded with local (XV) in the decolonization of Western Sahara jurisdiction to settle a dispute without the rulers. The information furnished to the and, in particular, of the principle of self-de- consent of the parties; (b) that the case in- Court shows (a) that at the time of coloniza- termination through the free and genuine ex- volved a dispute concerning the attribution tion Western Sahara was inhabited by peo- pression of the will of the peoples of the Ter- of territorial sovereignty over Western Sa- ples which, if nomadic, were socially and po- ritory. hara and that the consent of States was al- litically organized in tribes and under chiefs For these proceedings the Court was com- ways necessary for the adjudication of such competent to represent them; (b) that Spain posed as follows: President Lachs; Vice- disputes; (c) that in the circumstances of the did not proceed upon the basis that it was es- President Ammoun; Judges Forster, Gros, case the Court could not fulfill the require- tablishing its sovereignty over terrae Bengzon, Petreń, Onyeama, Dillard, Ignacio- ments of good administration of justice with nullius: thus in his Order of 26 December 1884 Pinto, de Castro, Morozov, Jimeńez de regard to the determination of the facts. The the King of Spain proclaimed that he was Arećhaga, Sir Humphrey Waldock, Nagendra Court considers (a) that the General Assem- taking the Rio de Oro under his protection Singh and Ruda; Judge ad hoc Boni. bly, while noting that a legal controversy on the basis of agreements entered into with Judges Gros, Ignacio-Pinto and Nagendra over the status of Western Sahara had arisen the chiefs of local tribes. Singh appended declarations to the Advisory during its discussions, did not have the ob- The Court therefore gives a negative an- Opinion; Vice-President Ammoun and Judges ject of bringing before the Court a dispute or swer to Question I. In accordance with the Forster, Petreń, Dillard, de Castro and Boni legal controversy with a view to its subse- terms of the request for advisory opinion, ‘‘if appended separate opinions, and Judge Ruda quent peaceful settlement, but sought an ad- the answer to the first question is in the neg- a dissenting opinion. visory opinion which would be of assistance ative’’, the Court is to reply to Question II. In these declarations and opinions the in the exercise of its functions concerning Question II: ‘‘What Were the Legal Ties of This judges concerned make clear and explain the decolonization of the territory, hence the Territory with the Kingdom of Morocco and their positions. legal position of Spain could not be com- the Mauritanian Entity?’’ Course of the Proceedings promised by the Court’s answers to the ques- (paras. 84–161 of Advisory Opinion) (paras. 1–13 of Advisory Opinion) tions submitted; (b) that those questions do The meaning of the words ‘‘legal ties’’ has The Court first recalls that the General not call upon the Court to adjudicate on ex- to be sought in the object and purpose of res- Assembly of the United Nations decided to isting territorial rights; (c) that it has been olution 3292 (XXIX) of the United Nations submit two questions for the Court’s advi- placed in possession of sufficient information General Assembly. It appears to the Court sory opinion by resolution 3292 (XXIX) and evidence. that they must be understood as referring to Spain suggested in the second place that adopted on 13 December 1974 and received in such legal ties as may affect the policy to be the questions submitted to the Court were the Registry on 21 December. It retraces the followed in the decolonization of Western Sa- academic and devoid of purpose or practical subsequent steps in the proceedings, includ- hara. The Court cannot accept the view that effect, in that the United Nations had al- ing the transmission of a dossier of docu- the ties in question could be limited to ties ready settled the method to be followed for ments by the Secretary-General of the established directly with the territory and the decolonization of Western Sahara, name- United Nations (Statute, Art. 65, para. 2) and without reference to the people who may be ly a consultation of the indigenous popu- the presentation of written statements or found in it. At the time of its colonization lation by means of a referendum to be con- the territory had a sparse population that letters and/or oral statements by 14 States, ducted by Spain under United Nations aus- including Algeria, Mauritania, Morocco, for the most part consisted of nomadic tribes pices. The Court examines the resolutions the members of which traversed the desert Spain and Zaire (Statute, Art. 66). adopted by the General Assembly on the sub- Mauritania and Morocco each asked to be on more or less regular routes, sometimes ject, from resolution 1514 (XV) of 14 Decem- reaching as far as southern Morocco or re- authorized to choose a judge ad hoc to sit in ber 1960, the Declaration on the Granting of the proceedings. By an Order of 22 May 1975 gions of present-day Mauritania Algeria or Independence to Colonial Countries and Peo- other States. These tribes were of the Is- (1.C.J. Reports 1975, p. 6), the Court found ples, to resolution 3292 (XXIX) on Western that Morocco was entitled under Articles 31 lamic faith. Sahara, embodying the request for advisory Morocco (paragraphs 90–129 of the Advisory and 68 of the Statute and Article 89 of the opinion. It concludes that the decolonization Opinion) presented its claim to legal ties Rules of Court to choose a person to sit as process envisaged by the General Assembly with Western Sahara as a claim to ties of judge ad hoc, but that, in the case of Mauri- is one which will respect the right of the sovereignty on the ground of an alleged im- tania, the conditions for the application of population of Western Sahara to determine memorial possession of the territory and an those Articles had not been satisfied. At the their future political status by their own uninterrupted exercise of authority. In the same time the Court stated that those con- freely expressed will. This right to self-deter- view of the Court, however, what must be of clusions in no way prejudged its views with mination, which is not affected by the re- decisive importance in determining its an- regard to the questions referred to it or any quest for advisory opinion and constitutes a swer to Question II must be evidence directly other question which might fall to be de- basic assumption of the questions put to the relating to effective display of authority in cided, including those of its competence to Court, leaves the General Assembly a meas- Western Sahara at the time of its coloniza- give an advisory opinion and the propriety of ure of discretion with respect to the forms tion by Spain and in the period immediately exercising that competence. and procedures by which it is to be realized. preceding. Morocco requests that the Court Competence of the Court The Advisory Opinion will thus furnish the should take account of the special structure (paras. 14–22 of Advisory Opinion) Assembly with elements of a legal character of the Moroccan State. That State was Under Article 65, paragraph 1, of the Stat- relevant to that further discussion of the founded on the common religious bond of ute, the Court may give an advisory opinion problem to which resolution 3292 (XXIX) al- Islam and on the allegiance of various tribes on any legal question at the request of any ludes. to the Sultan, through their caids or sheiks, duly authorized body. The Court notes that Consequently the Court finds no compel- rather than on the notion of territory. It the General Assembly of the United Nations ling reason for refusing to give a reply to the consisted partly of what was called the Bled is suitably authorized by Article 96, para- two questions submitted to it in the request Makhzen, areas actually subject to the Sul- graph 1, of the Charter and that the two for advisory opinion. tan, and partly of what was called the Bled

VerDate jul 14 2003 02:07 Jul 24, 2004 Jkt 029060 PO 00000 Frm 00014 Fmt 4634 Sfmt 0634 E:\CR\FM\A22JY7.058 H22PT2 July 22, 2004 CONGRESSIONAL RECORD — HOUSE H6629 Siba, areas in which the tribes were not sub- entity therefore did not have the character Since a 1991 cease-fire, successive U.N. ini- missive to him; at the relevant period, the of a personality or corporate entity distinct tiatives aimed at ending a dispute which areas immediately to the north of Western from the several emirates or tribes which dates from 1975, and asserting the Sahrawis’ Sahara lay within the Bled Siba. comprised it. The Court concludes that at right to ‘‘self-determination,’’ have failed. As evidence of its display of sovereignty in the time of colonization by Spain there did Advocates of independence for Western Sa- Western Sahara, Morocco invoked alleged not exist between the territory of Western hara stress the territory’s mineral wealth, acts of internal display of Moroccan author- Sahara and the Mauritanian entity any tie with the phosphate mine at Boukra near ity, consisting principally of evidence said to of sovereignty, or of allegiance of tribes, or Laayoune, and possible offshore oil reserves. show the allegiance of Saharan caids to the of simple inclusion in the same legal entity. But the Boukra mine is loss-making and Sultan, including dahirs and other docu- Nevertheless, the General Assembly does not subsidized by the Office Cherifien des ments concerning the appointment of caids, appear to have so framed Question II as to Phosphates’ more important phosphate pro- the alleged imposition of Koranic and other confine the question exclusively to those duction near Khouribga, according to offi- taxes, and acts of military resistance to for- legal ties which imply territorial sov- cials. It is fishing that generates new jobs eign penetration of the territory. Morocco ereignty, which would be to disregard the and export earnings. Western Sahara fish also relied on certain international acts said possible relevance of other legal ties to the products now account for up to seven percent to constitute recognition by other States of decolonization process. The Court considers of Morocco’s total export earnings of 85.6 bil- its sovereignty over the whole or part of that, in the relevant period, the nomadic lion dirhams ($9.80 billion). Western Sahara, including (a) certain trea- peoples of the Shinguitti country possessed Morocco declined to renew a fishing accord ties concluded with Spain, the United States rights, including some rights relating to the with the European Union which until the and Great Britain and Spain between 1767 lands through which they migrated. These late 1990s had allowed foreign boats into Mo- and 1861, provisions of which dealt inter alia rights constituted legal ties between West- roccan waters. It has instead spent heavily with the safety of persons shipwrecked on ern Sahara and the Mauritanian entity. since then on port infrastructure in Western the coast of Wad Noun or its vicinity, (b) cer- They were ties which knew no frontier be- Sahara, as though consolidating its hold on tain bilateral treaties of the late nineteenth tween the territories and were vital to the the territory. and early twentieth centuries whereby Great very maintenance of life in the region. Like all other businesses in Western Sa- Britain, Spain, France and Germany were Morocco and Mauritania both laid stress hara, the sardine canning businesses, and said to have recognized that Moroccan sov- on the overlapping character of the respec- plants processing octopus for Japanese din- ereignty extended as far south as Cape tive legal ties which they claimed Western ner tables, pay no taxes except for payroll Bojador or the boundary of the Rio de Oro. Sahara to have had with them at the time of contributions. Having considered this evidence and the colonization (paragraphs 153–160 of the Advi- They also benefit from the subsidies in the observations of the other States which took sory Opinion). Although their views appeared prices of fuel, power and water with which part in the proceedings, the Court finds that to have evolved considerably in that respect, Morocco woos its southern-most subjects, neither the internal nor the international the two States both stated at the end of the who account for less than two percent of the acts relied upon by Morocco indicate the ex- proceedings that there was a north apper- kingdom’s 29.6 million population. istence at the relevant period of either the taining to Morocco and a south appertaining Local investors are often Sahrawi notables existence or the international recognition of to Mauritania without any geographical void who see the territory’s future with Rabat legal ties of territorial sovereignty between in between, but with some overlapping as a rather than the Polisario and who play a Western Sahara and the Moroccan State. result of the intersection of nomadic routes. prominent role in the local economy. A little Even taking account of the specific structure The Court confines itself to noting that this over a generation ago, the Sahrawis’ life- of that State, they do not show that Morocco geographical overlapping indicates the dif- style revolved around camel and goat displayed any effective and exclusive State ficulty of disentangling the various relation- rearing. Fish did not figure at all in the activity in Western Sahara. They do, how- ships existing in the Western Sahara region Sahrawi diet and even today few Sahrawis ever, provide indications that a legal tie of at the time of colonization. work directly with fish. allegiance existed at the relevant period be- For these reasons, the Court (paragraphs But among new investors, the favorable tween the Sultan and some, but only some, 162 and 163 of the Advisory Opinion) gives the conditions for businesses can sometimes en- of the nomadic peoples of the territory, replies indicated on pages 1 and 2 above. courage over-hasty decisions. through Tekna caids of the Noun region, and [From Reuters News Service, Jan. 13, 2004] OCTOPUS FOR THE JAPANESE they show that the Sultan displayed, and SARDINES AND SOVEREIGNTY IN WESTERN was recognized by other States to possess, Lining the walls of the conference room in SAHARA some authority or influence with respect to the Laayoune governor’s headquarters, those tribes. (By Eileen Byrne) photos showed a visit to Western Sahara by The term ‘‘Mauritanian entity’’ (para- LAAYOUNE, WESTERN SAHARA.—On trawlers Morocco’s King Mohammed. graphs 139–152 of the Advisory Opinion) was at the quayside near Laayoune, the main Some 40 men, and one woman wrapped in first employed during the session of the Gen- city in Moroccan-controlled Western Sahara, the colored veil worn in Western Sahara, lis- eral Assembly in 1974 at which resolution the crew unload sardines in wicker baskets tened to Morocco’s Fisheries Minister Taieb 3292 (XXIX), requesting an advisory opinion thrown from hand to hand. Rhafes. He had flown down from Rabat to ex- of the Court, was adopted. It denotes the cul- The traditional baskets are misleading, be- plain why he was extending a ban on octopus tural, geographical and social entity within cause the yield of sardines, octopus and fishing. which the Islamic Republic of Mauritania squid from the Western Saharan ports of With him were representatives of Moroc- was to be created. According to Mauritania, Laayoune, Boujdour and Dakhla has come to can banks whose loans to local investors had that entity, at the relevant period, was the represent more than 60 percent of Morocco’s encouraged a proliferation of octopus-freez- Bilad Shinguitti or Shinguitti country, a dis- total annual fisheries yield of almost one ing plants around Dakhla, from a handful in tinct human unit, characterized by a com- million tons. With sovereignty over the 1997 to 90 in 2003. The octopuses have been al- mon language, way of life, religion and sys- Western Sahara still in dispute, this is a po- most wiped out by over-fishing, the minister tem of laws, featuring two types of political litically significant catch. explained. It takes only three months to authority: emirates and tribal groups. The uncertainty about the future of this have an octopus-freezing plant up and run- Expressly recognizing that these emirates vast, mainly desert territory in the north- ning, said an official. and tribes did not constitute a State, Mauri- west corner of Africa puts a dampener, for At Laayoune port, the fishermen are not tania suggested that the concepts of ‘‘na- now, on investment in tourism for winter Sahrawis, but come from Moroccan ports tion’’ and of ‘‘people’’ would be the most ap- sun-seekers, officials in Laayoune admit. further north—Agadir, Essaouira and Safi. A propriate to explain the position of the But against the backdrop of diplomatic spontaneous movement of sardines south- Shinguitti people at the time of coloniza- stalemate, as the United Nations strives for wards, traced by Morocco’s fisheries research tion. At that period, according to Mauri- a solution to the dispute between Morocco institute, the INRH, coincided with the de- tania, the Mauritanian entity extended from and the Polisario separatist movement, Mo- velopment of infrastructure in the Western the Senegal river to the Wad Sakiet El rocco is keen to show that the regional econ- Sahara. The fishermen followed the fish Hamra. The territory at present under Span- omy is developing apace. southwards, bringing their expertise with ish administration and the present territory The fishing sector is one area where the them. of the Islamic Republic of Mauritania thus authorities can point to significant growth, Moroccan officials have no separate figures together constituted indissociable parts of a always under the firm guiding hand of the for employment among Sahrawis and non- single entity and had legal ties with one an- central government. Sahrawis. ‘‘There are no two communities other. SOUTHERN-MOST SUBJECTS here,’’ only Moroccan citizens, Laayoune The information before the Court discloses Claiming Western Sahara as its historic Governor Mohamed Rharrabi told Reuters. that, while there existed among them many ‘‘southern provinces,’’ Morocco controls With the sea-faring culture far-removed ties of a racial, linguistic, religious, cultural most of the territory. from the traditional Sahrawi lifestyle, it and economic nature, the emirates and many The Polisario movement, based across the seems fishing will provide only some of the of the tribes in the entity were independent border in Algeria, sees the future of the area jobs needed in the Laayoune region, where in relation to one another; they had no com- as an independent state, governed by its Sa- unemployment at the last census was 40 per- mon institutions or organs. The Mauritanian haran Arab inhabitants, known as Sahrawis. cent among 20 to 24 year-olds.

VerDate jul 14 2003 02:07 Jul 24, 2004 Jkt 029060 PO 00000 Frm 00015 Fmt 4634 Sfmt 0634 E:\CR\FM\A22JY7.060 H22PT2 H6630 CONGRESSIONAL RECORD — HOUSE July 22, 2004

DENMARK DOES NOT RECOGNISE MOROCCAN Following a one-year extension, KMG’s resources has inherited an exclusive offshore SOVEREIGNTY ON WESTERN SAHARA connaissance permit will expire on 29 Octo- PSC from AIM-listed Fusion Oil & Gas fol- [From Sahara Press Service (SPS), June 22, ber. However, its tenure is contested by the lowing a recent take-over, while Wessex is 2004] Sahrawi independence militia, which has under increasing pressure after retaining its long fought for sovereign control, stirring exclusive study licence from Rabat. COPENHAGEN—Danish Government, does international controversy over the licencing After expending $600 million on peace- not ‘‘recognise Moroccan sovereignty on regime imposed by Rabat. keeping efforts, the UN system is tiring of Western Sahara’’, declared Danish Minister Fellow UK consultancy Robertson Re- the Western Sahara crisis, with UN Special for Foreign Affairs, Mr. Per Stig Mφller, in search International (RRI) is also poised to Envoy James Baker resigning in frustration response to a question he answered before of complete survey work in Western Sahara, de- last month. his Parliament, according to close sources to spite question marks over the legitimacy of The UN’s new representative, Alvaro de the Saharawi representation to Denmark. UK corporate involvement in what the UK Soto, said this week that he would pursue Answering a question asked by Danish government calls a ‘‘non-self governing ter- the same policy as Baker, suggesting no new Member of the Parliamentary group ritory’’ where it says sovereignty remains to ideas to break the deadlock were on the Enhedslisten (Union list, in English), Mr. be determined under UN auspices. For its table. Soern Soendergaard, the Minister for For- part, RRI said it is not directly contracted eign Affairs asserted that his Government to Rabat. [From afrol News, July 12, 2004] ‘‘does not recognise Moroccan sovereignty on Confirmation of RRI’s involvement comes Western Sahara’’, considering Moroccan NORWEGIAN INDUSTRY TO EXPLOIT SAHRAWI hard on the heels of a campaign launched by FISH RESOURCES presence on the territory as illegal and unac- Western Sahara support groups across Eu- Norwegian officials are in the process of ceptable. rope against exploration and production promoting Norwegian investments in the Regarding the peace plan, elaborated by companies doing business at the behest of booming fisheries industry in Moroccan-oc- UN Secretary General’s former Personal Rabat. φ Envoy, James Baker, Mr. M ller affirmed Kerr-McGee, Total and TGS-Nopec were cupied Western Sahara, despite protests by that this plan remains applicable, recalling blasted for jumping the gun on a fragile Sahrawi officials. The fisheries industry is that it ‘‘is accepted by Polisario Front and peace process in which the UN has sought the dominant economic sector in the terri- the neighbouring countries and is unani- diplomatic consensus ahead of a referendum tory, promoting new Moroccan settlements mously adopted by Security Council in its on self-determination for the Sahrawi peo- here. Norwegian capital and knowledge is to resolution 1495’’. ple. help this development. Finally, the Head of Danish diplomacy re- Activists’ primary target of late has been According to information made available iterated ‘‘the support of Denmark of the ef- UK-registered Wessex Exploration, which to afrol News, the Norwegian Ambassador in forts paid by UN’s Secretary General and his was recently invited to Rabat to finalise a Morocco, Arne Aasheim last week was on a former Personal Envoy aimed at reaching a preliminary but open-ended deal to analyse three-day visit to El Aaiun, the capital of just and lasting solution to the conflict’’, in onshore data ahead of an exploration push the Western Sahara territory. Here, he had Western Sahara conforming to international outlined by Moroccan state oil company meetings with the Moroccan authorities gov- legality and by implementing UN’s resolu- managing director Amina Benkhadra. erning the occupied territory and representations. Wessex has been warned that ‘‘its reputa- tives of the fisheries sector. [From Sahara Press Service (SPS), June 24, tion would suffer’’ if it did not back off or Sources wanting to remain anonymous 2004] negotiate with the Sahrawi authorities. told afrol News that the primary focus in In the meantime, several UK parliamentar- these meetings was on how Norwegian com- GERMAN PDC/CSU CALLS TO IMMEDIATE ians have moved to seek clarification of the panies could strengthen their foothold in the SETTLEMENT OF WESTERN SAHARA CONFLICT UK government’s position on British compa- booming Moroccan fisheries industry, which BERLIN.—The parliamentary group of Ger- nies doing business in Western Sahara. Con- mainly is based in the occupied territory. man Christian Democrat Party (PDC/CSU) in cerned MPs led by the Labour Party’s David Morocco has been singled out as a golden op- Bundestag (Parliament), called on Thursday Drew, want to pin down Whitehall on its at- portunity for Norway’s many companies op- to an immediate settlement of Western Sa- titude. erating in the fisheries sector. hara’s conflict, exhorting international com- Drew will shortly table a parliamentary Norway is one of Europe’s leading fisheries munity to pay more efforts in defending question seeking greater clarity. Drew now nations, also regarding the larger definition Saharawi people’s ‘‘right to self-determina- speaks for the Western Sahara Support of the industry, including the construction tion’’. Group and two Conservative MPs are ex- of fisheries vessels, fishing technology and In a communique´ publicised on Thursday, pected to join existing members before they fish processing and distribution technology. of which SPS received a copy, PDC/CSU par- resurface as a parliamentary force. Morocco, on the other hand, during the liamentary Group’s spokesperson, Dr. Chris- The UK Foreign Office insists sovereignty last years has singled out the fisheries indus- tian Ruck, asserted that ‘‘Western Sahara in Western Sahara remains undetermined as try as one of its most promising sectors for conflict’s settlement tolerates no more long as UN calls to resolve the crisis via the economic development. After refusing to delays’’, calling international community to so-called Baker Peace Plan remain renew a fisheries agreement with the Euro- pay more efforts in defending Saharawi peo- unheeded. ‘‘We want to push the UK to pro- pean Union in 1999, Moroccan authorities are ple’s ‘‘right to self-determination’’. mote the Plan so that Morocco withdraws. It now promoting the establishment of a large UN Secretary General’s former Personal should also tell British companies that they national fleet of fishing vessels, fish proc- Envoy, James Baker’s resignation ‘‘may should not get involved in Western Sahara at essing plants and an export infrastructure. push to failure’’ the peace plan for self-deter- this time while the UN mandate remains Since 2001, approximately euro 150 million mination of Saharawi people, though this unimplemented,’’ said Drew. have been invested into the sector annually. plan constitutes ‘‘a reasonable compromise The Foreign Office currently has no prob- The controversial bit of Morocco’s boom- to realise peace in this region’’, deplored the lem with companies winning reconnaissance ing fisheries industry is that it is mostly spokesperson. or E&P licences from Rabat, so long as the based on the rich fisheries resources off the Thus, the international community is practical effect complies with constraints cost of occupied Western Sahara. According called to ‘‘prove to the people of this region, laid down by the UN Legal Office on ‘‘dis- to international law, an occupying state is who is still suffering this old aging conflict, regarding the rights’’ of the Sahrawi people. obliged to manage the renewable resources that its right to self-determination remains This means Kerr-McGee and Total can use of the territory it occupies. However, reve- a priority for the international community’’, TGS-Nopec and Fugro to shoot seismic as nues from these resources are to be chan- which should also defend UN’s principles and long as rigs are not deployed to confirm or nelled into the development of the people of international law, so as to reach a peaceful produce oil finds. the territory. settlement to this problem, concluded the Meanwhile, the acquisition of strategically In the case of Western Sahara, the reve- communique´. important seismic data for Rabat as the li- nues of the exploitation of the territory’s re- [From Upstream Online & Hardcopy, July 2, censor remains legal under the ‘‘look but sources however do not go to the inter- 2004] don’t touch’’ interpretation of both UK and nationally recognised representatives of the US governments. However, a UK official said Sahrawis—the exiled Polisario government— SVITZER FEELS HEAT IN WESTERN SAHARA that ‘‘we’d have to revisit this opinion if ac- but instead to the strengthening of Moroc- (By Barry Morgan) tivity got this far. There is no official en- co’s occupation of the territory. Almost the Fugro affiliate Svitzer has just completed dorsement’’. entire work force of the fisheries sector in a marine survey on Kerr-McGee’s Boujdour ‘‘Right now, our view is that UK companies Western Sahara is of Moroccan origin and acreage off the disputed territory of Western going into Western Sahara are on their own the sector’s growth is promoting more Mo- Sahara. and we cannot link them to the Department roccan settlements in the occupied territory. Based in Norfolk in the UK, Svitzer is the of Trade & Industry or offer the support of While the Norwegian government gen- latest company to attract brickbats from ac- any other government mechanisms,’’ the erally has defended the case of the Sahrawis tivists determined to persuade industry play- source added. in their conflict with Morocco, this has not ers not to sign deals with Morocco, which oc- Two UK-registered companies presently been the case in the important fisheries sec- cupies the territory and claims its resources. stand on both sides of the fence. Sterling Re- tor. Mr Aasheim’s predecessor at Norway’s

VerDate jul 14 2003 23:57 Jul 23, 2004 Jkt 029060 PO 00000 Frm 00016 Fmt 4634 Sfmt 0634 E:\CR\FM\A22JY7.074 H22PT2 July 22, 2004 CONGRESSIONAL RECORD — HOUSE H6631 Rabat Embassy, Ole Kristian Holthe, since the Polisario Representative in Washington in charge of executive departments for terms 2000 has been an active and passionate pro- told afrol News today that his government of four years. The legislative authority shall moter of Norwegian investments in Moroc- considers ‘‘any transaction between the oc- be vested in an Assembly, the members of co’s booming fisheries sector, non-regarding cupying power with any other entity or gov- which shall be directly elected by voters for the location of these investments. ernment as completely illegal at the eyes of terms of four years. The judicial authority In February 2002, Ambassador Holthe met international law, and we do condemn any shall be vested in such courts as may be nec- with the society for Norwegian Maritime Ex- attempt to strengthen the Moroccan occupa- essary, the judges of which shall be selected porters (NME) in Haugesund, informing tion.’’ from the National Institute for Judicial about that access to ‘‘the Moroccan market We are disappointed because traditionally, Studies but shall be from Western Sahara. is something that is happening now.’’ He es- the Norwegians government has been in sup- Such courts shall be the authority on terri- pecially emphasised on the large number of port of the peoples’ right to self-determina- torial law. To be qualified to vote for mem- fishing vessels that Moroccan authorities tion all over Africa and in particular in bers of the Assembly, a person must be 18 were ordering in an international tender. Western Sahara, added Mr Said. ‘‘This is years or older and either (i) a continuous Explaining that Morocco is ‘‘the most sta- uncharacteristic coming from the represent- resident of the territory since 31 October ble Arab country oriented towards the ative from a government known for its 1998, or (ii) a person listed on the repatri- West,’’ Mr Holthe added that the problems defence of human rights and the right of self- ation list as of 31 October 2000. surrounding Western Sahara should not en- determination.’’ 4. All laws passed by the Assembly and all danger Norwegian investments. ‘‘Norwegian Mr Said further said that the Polisario decisions of the courts referred to in para- authorities may consider that [official] Nor- considered a UN legal opinion issued in 2001, graph 3 above must respect and comply with wegian trade promotion devices should not regarding oil exploration in Western Sahara the constitution of the Kingdom of Morocco, be involved in investments [in Western Sa- to be of relevance in this case. The legal particularly with respect to the protection of hara], but my opinion is that, as long as one opinion concluded that Morocco had no right public liberties. All elections or referenda re- enters as a partner in the fisheries indus- to act on behalf of Western Sahara and mar- ferred to in this agreement shall be con- try—and looks at this geographically—then ket its resources, according to Mr Said. ducted with all appropriate guarantees and it should be safe.’’ Unfortunately, afrol News was not able to in keeping with the Code of Conduct agreed According to research done by the Norway- gather reactions from Norwegian authori- to by the parties in 1997, except where to do based international fisheries media ties. The Norwegian Embassy in Rabat did so would be inconsistent with the terms ‘IntraFish’, Norwegian authorities already in not answer phone calls from afrol News nei- hereof. 2002 were financially aiding exporters to get ther on Friday nor today, while spokes- 5. Neither the Kingdom nor the executive, a foothold in Morocco; including the occu- person Cathrine Andersen at the Norwegian legislative, or judicial bodies of the Author- pied territories. This included aid by the Ministry of Foreign Affairs refused to supply ity of Western Sahara referred to above may Norwegian government’s agency guaran- afrol News with a direct phone number to unilaterally change or abolish the status of teeing export financing and the Scandina- Ambassador Aasheim, claiming the Ministry Western Sahara. Any changes or modifica- vian Investment Bank. At least kroner 30 had ‘‘no other information’’ on how to get in tions of this agreement has to be approved million (euro 4 million) were available to fi- contact with its Rabat Embassy. by the Executive and the Assembly of West- nance Norwegian exports to Morocco’s fish- ern Sahara. The status of Western Sahara FRAMEWORK AGREEMENT ON THE STATUS OF will be submitted to a referendum of quali- eries sector. WESTERN SAHARA (BAKER PLAN I) These government efforts have already fied voters on such date as the parties hereto ANNEX I OF SG REPORT S/2001/613 OF 20 JUN 01 produced several Norwegian investments in shall agree, within the five year period fol- Western Sahara. In October 2002, the Nor- The authority in Western Sahara shall be lowing the initial actions to implement this wegian company Finsam announced it was as follows: agreement. To be qualified to vote in such a constructing an ice producing plant in 1. The population of Western Sahara, referendum a voter must have been a full ‘‘Laayoune, Morocco’’—which translates into through their executive, legislative and judi- time resident of Western Sahara for the pre- El Aaiun in Western Sahara. This ice plant is cial bodies shall have exclusive competence ceding one year. 6. The Secretary-General of the United Na- mainly producing ice for fish landed in El over local governmental administration, ter- tions will offer his mediation and good of- Aaiun. ritorial budget and taxation, law enforce- Other Norwegian investments in the occu- ment, internal security, social welfare, cul- fices to assist the two parties hereto in the pied territory’s fishery sector include the ture, education, commerce, transportation, implementation or interpretation of this company Selfa Arctic, which is ‘‘con- agriculture, mining, fisheries and industry, agreement. 7. The parties agree to implement this structing modern coastal fisheries in Mo- environmental policy, housing and urban de- agreement promptly and request the assist- rocco;’’ Simrad, which delivers marine elec- velopment, water and electricity, roads and ance of the United Nations to this end. tronics to Morocco, including to its ‘‘Moroc- other basic infrastructure. 2. The Kingdom of Morocco will have ex- can retailer in Laayoune;’’ Astia Holdings, [From the Christian Science Monitor, Mar. clusive competence over foreign relations which exports fishing vessels and equipment 26, 2004] to Morocco; and Furuno, which sells elec- (including international agreements and SAHARA REFUGEES FORM A PROGRESSIVE tronic navigation equipment in Morocco. conventions) national security and external SOCIETY Ambassador Holthe’s indiscrete promotion defence (including determination of borders, of Norwegian export opportunities in West- maritime, aerial or terrestrial and their pro- LITERACY AND DEMOCRACY ARE THRIVING IN AN ern Sahara however became too much for tection by all appropriate means) all matters UNLIKELY PLACE Norwegian authorities. Already in November relating to the production, sale, ownership (By John Thorne) 2002, Foreign Minister Jan Petersen in- or use of weapons or explosives and the pres- TINDOUF, ALGERIA.—A dozen women recline structed his Rabat Ambassador to write an ervation of the territorial integrity against on the steps of the main girls’ school in the official letter to companies investing in secessionist attempts whether from within Saharawi refugee camps, their pastel robes Western Sahara and inform them about the or without the territory. In addition, the like blots of water-color on the whitewashed political risk and ethical problems. flag, currency, customs, postal and tele- cement. When the door opens and the head- According to information given to afrol communication systems of the Kingdom mistress emerges, the women suddenly leap News, however, Ambassador Holthe smooth- shall be the same for Western Sahara. With up and crowd around her, clamoring. They ened the wording in the letter he sent out to respect to all functions described in this are mothers seeking places for their daugh- Norwegian companies, saying that the Em- paragraph (2) the Kingdom may appoint rep- ters in the already-crowded school. bassy could see no limits in international resentatives to serve it in Western Sahara. The Saharawi women are among the most law regarding investments in Western Sa- 3. In Western Sahara the executive author- liberated of the Muslim world, and their sta- hara. In 2003, Mr Holthe was replaced and ity shall be vested in an Executive, who shall tus is characteristic of the well-organized, sent to the Norwegian Embassy in Iran for be elected by a vote of those individuals who egalitarian society that has developed in the reasons unknown to afrol News. have been identified as qualified to vote by refugee camps over the past three decades. Since that, Ambassador Aasheim has in- the Identification Commission of the United For all their bleakness, the Saharawi camps herited the complex question of Norwegian Nations Mission for the Referendum in West- boast a representative government, a 95 per- investments in Western Sahara. As far as ern Sahara, and whose names are on the cent literacy rate, and a constitution that afrol News has been able to establish, the United Nations provisional voter lists (com- enshrines religious tolerance and gender Norwegian Embassy in Rabat has not low- pleted as of 30 December 1999) without giving equality. ered its profile regarding this promotion effect to any appeals or other objections. To The Saharawis are the Arab nomads of since Mr Aasheim’s appointment. Last qualify as a candidate for Executive, one Western Sahara, bound together by their week’s official promotion trip by the Ambas- must be an individual who has been identi- Yemeni ancestry and their dialect, sador to El Aaiun is probably the first ever fied as qualified to vote as aforesaid and Hassaniya, which remains close to classical investment promotion trip to the occupied whose name is on said provisional voter lists. Arabic. For centuries, they roamed the terri- territories by any Norwegian government of- The Executive shall be elected for a term of tory with their camels and goats, sometimes ficial. four years. Thereafter, the Executive shall trading with Spanish colonizers, and became It therefore came as a shock to the be elected by majority vote of the Assembly. known as ‘‘blue men’’ for the indigo robes Polisario exile government. Mouloud Said, The Executive shall appoint administrators they wear.

VerDate jul 14 2003 23:57 Jul 23, 2004 Jkt 029060 PO 00000 Frm 00017 Fmt 4634 Sfmt 0634 E:\CR\FM\A22JY7.063 H22PT2 H6632 CONGRESSIONAL RECORD — HOUSE July 22, 2004 When Spain abandoned Western Sahara in vails, not the extremes. That means respect and women alike, educated their children 1975, Morocco invaded and drove the for others, whether for the faith or their and let it be known that all they want to do Saharawis into neighboring Algeria. Trading ideas.’’ is live in peace with those around them. their camels for Land Rovers, they fought a This credo finds ample use in the Their congressional friends in the United guerrilla war under the leadership of the Saharawis’ recent conversion to a united States include people such as Sens. Jim Polisario Front, an independence movement, democratic government. Following their Inhofe (R-Okla.) and Edward Kennedy (D- until the UN brokered a ceasefire in 1991. flight from Western Sahara, they quickly Mass.) and Reps Joe Pitts (R-Pa.), Mark Since then, the promised vote on independ- saw that overcoming the desert and the Mo- Green (R-Wis.) and Donald Payne (D-N.J.), ence has been stalled by disagreement over roccan Army meant forsaking old tribal loy- but so far few of their colleagues and vir- who should be allowed to participate. alties. ‘‘What’s most important is that we tually no one in the Bush administration or EQUALITY Saharawis hang together, so we highlight the media seem to share their concerns. stories that promote unity among us,’’ says This is in spite of the fact that virtually Meanwhile the Saharawi refugees, num- Minister of Culture Miriam Salek, who everyone agrees the Saharawi are right. The bering some 160,000, have clung on in camps works with the Ministry of Education and International Court of Justice in 1975 ruled amid the flat, stony wastes near the town of the Saharawi Youth Organization to keep Morocco had no right to the land seized, but Tindouf, in southwest Algeria. Subsisting on alive Saharawi folklore and history. the king of Morocco ignored the ruling and foreign aid—chiefly rice, bread, and a few the United Nations sought a referendum in DEMOCRACY root vegetables—most suffer from chronic which the people of the region could vote on malnutrition. Their settlements consist al- In 1976, the Polisario proclaimed, and more whether they wanted to be ruled by their co- most wholly of adobe huts and dusty canvas or less became, the Saharawi Arab Demo- lonial masters or by leaders of their own tents, appearing from afar as brown smudges cratic Republic. Although a government-in- choosing. on the slightly lighter brown desert. exile, it is recognized by 75 countries, and Meanwhile, the United States stood by si- ‘‘Women built these camps,’’ says Menana the UN formally considers Western Sahara lent as our Moroccan ally consolidated con- Mohammed, deputy secretary-general of the an occupied territory. trol over the region to become the last colo- Union of Saharawi Women. When the Tier upon tier of elected officials make up nial power on the African continent. Saharawis arrived at Tindouf, most of the the camp government, from the national par- Publicly, of course, the Moroccans de- men had stayed behind as soldiers. ‘‘You’ll liament down to neighborhood councils. clared that they too believed in self-deter- still find women doing all kinds of work, in- Saharawis are avid voters, and many partici- mination, but marched hundreds of thou- cluding leading,’’ Ms. Mohammed adds. pate in local civil service—even if it’s merely sands of Moroccans into the region and de- While most of the top brass are men, the taking a twice-weekly shift on the trash declared that if there was to be a vote, these minister of culture is a woman. Women hold tail, or helping dole out rations. folks should be allowed to vote too. The one fourth of the seats in the Saharawi par- This could be the blueprint for an inde- Saharawi and the United Nations balked at liament, and they make up most of the civil pendent Western Sahara, and there is a gen- this baldfaced attempt to stuff the ballot service, including teachers, nurses, and doc- eral sense of pride and excitement among the boxes, but finally appointed former U.S. Sec- tors. Saharawis for their new society. ‘‘This has retary of State James Baker as a special ‘‘These days our chief concern is edu- worked so far, what we have here,’’ says one envoy to work something out. Baker eventu- cation,’’ says Mohammed. All young young daira (district) councilman, ‘‘and it ally came up with a ‘‘compromise’’ plan that Saharawis learn Spanish as well as Arabic, should still work in Western Sahara. We would grant the vote to enough Moroccans and some attend universities in Spain, Cuba, built this on the hope of the people, and I to give them a majority if they stuck to- and Algeria through the sponsorship of those don’t think they’ll want to change.’’ gether and suggested a period of autonomy countries’ governments. But as the years drag on, many fear they within Morocco followed by a vote to decide ‘‘In the camps, we had to be both sexes, be- will never have the chance to find out. Their whether the region would go its own way. cause the men were all away fighting,’’ says smoothly running camps and refusal to re- To everyone’s surprise, the Sahrawi ac- Mohammed. There is an old Saharawi say- sort to terrorism keep them out of the public cepted the ‘‘Baker Plan.’’ They know they ing, she says, that rings especially true consciousness, relieving pressure on the UN can’t survive in the camps forever and sus- today: ‘‘A tent is raised on two poles: a man to push for a quick settlement to the 29- pect that more than a few of the Moroccans and a woman.’’ The Saharawis’ traditionally year-old conflict. ‘‘We have been landless for who will vote might welcome the chance to tough, wandering lifestyle has always made so long,’’ laments Tellib Helli Embarik, an escape the tender mercies of their king. The them regard husband and wife as equal lead- old tribal leader. ‘‘I don’t know if the UN is Moroccans immediately rejected the plan an- ers of the household. just waiting for us to disappear or what!’’ nouncing that they will never accept any INDIVIDUALISM scheme that includes the possible loss of the [From the Hill, July 13, 2004] It has also begotten an individualistic ap- territory they have grabbed. proach to Islam. While most Muslims tend to DESERTING THE BAKER PLAN The United Nations doesn’t know what to stress the importance of the Islamic commu- (By David Keene) do, and Baker has thrown up his arms and re- nity, ‘‘the Saharawis believe that religion is President Bush likes to talk about nur- signed. The king’s only real ally in the a very personal issue,’’ says Mouloud Said, turing democracy within the Muslim world, United Nations is France, but it’s our silent the Polisario’s representative in the United but he’s doing little for the pro-Western acceptance of whatever he wants do to that States. ‘‘It’s a personal relationship between Muslims of the Western Sahara whose future has allowed him to thumb his nose at the the human being and his Creator. This is the rests in his hands. world. Everyone knows that as long as King mentality of the nomadic society.’’ If you don’t know much about the plight of Mohammed VI can keep the United States in Mosques are conspicuously absent from the these people, you aren’t alone. They have line, he will remain intransigent. camps, in large part because the Saharawis been languishing in refugee camps in western During the king’s visit to Washington last ‘‘don’t believe that to speak to God, you Algeria for nearly 30 years and will remain week, President Bush supposedly brought up need a fancy place,’’ explains Mr. Said. there until the United States stops playing the Baker Plan, but one wonders if he Saharawis seldom pray in groups save on chief enabler to Moroccan government that pressed very hard. He has, after all, said important Muslim holidays, and view even invaded and seized their country when it was nothing about the Saharawi in public and these ceremonies as purely optional. For freed from colonial rule by Spain in the ’70s. done everything from declaring Morocco a some, this is a welcome escape-hatch from I’ve visited the camps, and to suggest that ‘‘major non-NATO ally’’ to leading the the religion’s bloodier rituals. the people who inhabit them live under charge for a U.S.-Moroccan Free Trade ‘‘Each person has his own Islam,’’ says harsh conditions is to speak euphemistically. Agreement to give the King the impression Zorgan Laroussi, a translator in the camps The Western Saharan or Saharawi peoples that we aren’t about to do anything at all who chose not to attend the mass slaughter tried to resist the Moroccans, but hundreds about the way he acts in his own neighbor- of camels for the feast of al-Eid al-Fitr, of thousands of them were forced to flee to hood. which marks the end of Ramadan. His broth- Algeria before a U.S.-equipped Moroccan Meanwhile, the Saharawi hang on, praying er-in-law Salek did go, and relishes explain- army determined to seize their land. Today for the day when an American president who ing the ritual’s finer points while the two more than 300,000 of them survive as best talks about democracy and justice will come men and their families share a dish of grilled they can, unable to see their relatives or to their aid. hindquarters. visit their homeland. Saharawis are equally welcoming of other Realizing they didn’t have the capability [From the Washington Times, July 9, 2004] religions. ‘‘There is an almost continuous to defeat Morocco on the battlefield, the BEYOND DIPLOMATIC NICETIES presence of church groups from all over the Saharawi faced a choice. They could fall on (By Joseph Pitts and Donald Payne) world—in particular the U.S.—in the the asymmetric warfare of the terrorist, sur- This week, His Majesty, King Mohammed camps,’’ says Said. ‘‘Every year for the last render or turn to the international commu- of Morocco is in Washington to tout the four years, there has been a joint prayer at nity. They perhaps rather naively chose the newly signed US.-Morocco Free Trade Agree- Easter.’’ latter course and went to the United Nations ment and to bask in his nation’s newly chris- ‘‘Tolerance is not something new, but it’s and the World Court seeking justice. tened status as a ‘‘major non-NATO ally’’. something [Saharawi leaders] encourage,’’ he Meanwhile, they’ve built a functioning de- While we do not oppose free trade or estab- says. ‘‘In a tolerant society, the center pre- mocracy that guarantees equal rights to men lishing stronger allies, we would do well to

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look past the diplomatic niceties that sur- right of self-determination to a peaceful, A. THE STATUS OF WESTERN SAHARA UNDER round such trips. His Majesty’s country ille- democratic people. MOROCCAN ADMINISTRATION gally occupies a swath of land in West Africa When the president meets with King Mo- 5. A Spanish protectorate since 1884, Span- known as Western Sahara. His government hammed this week, he should not ignore His ish Sahara was included in 1963 in the list of has promised the people of Western Sahara, Majesty’s opposition to democracy in the NonSelf-Governing Territories under Chap- the Sahrawi, a vote to determine their own Western Sahara. The spread of freedom is ter XI of the Charter (A/5514, Annex III). Be- future. More than a decade later, that vote central to our mission as a nation. This is ginning in 1962, Spain as administering has yet to occur. ever more important as the administration Power transmitted technical and statistical Powerful friends in Europe and here in works to spread democracy in Islamic na- information on the territory under Article 73 Washington have helped His Majesty’s gov- tions. (e) of the Charter of the United Nations. This ernment postpone this vote and consolidate Unlike many others in the Middle East and information was examined by the Special control over the country The Moroccan gov- North Africa, the Sahrawis have chosen a Committee with Regard to the Implementa- ernment says its colonial rule over Western peaceful path to democracy. We owe the tion of the Declaration on the Granting of Sahara ensures its ‘‘territorial integrity’’ democratic people of Western Sahara no less Independence to Colonial Countries and Peo- and preserves stability in the region. But than the support we have given others in ples (‘‘Special Committee’’). In a series of this idea is simply divorced from reality on their fight for independence—the right to General Assembly resolutions on the Ques- the ground. have a say in their own future. tion of Spanish/Western Sahara, the applica- During trips to the country, we have When Congress considers the US.-Morocco bility to the territory of the Declaration on learned the Sahrawis are peaceful, pro-West- free trade agreement, it should seriously the Granting of Independence to Colonial ern and pro-democracy. In short, despite liv- consider how it will aid His Majesty’s at- Countries and Peoples (General Assembly ing under an illegitimate colonial power, tempt to exploit an area to which he has no resolution 1514 (XV), was reaffirmed. they have established a deep-rooted culture legitimate claim. Ignoring Western Sahara 6. On 14 November 1975, a Declaration of of democracy, capable of supporting a viable will put a vote for Sahrawis further out of Principles on Western Sahara was concluded state. They have their own elected leaders, reach. in Madrid between Spain, Morocco and Mau- The time has come to abandon empty many of them women. They have provided ritania (the Madrid Agreement), whereby the promises and hollow rhetoric in favor of a education and equal rights to all their citi- powers and responsibilities of Spain, as the free, fair, and transparent referendum for the zens—men and women. administering Power of the territory, were The only stability a sovereign, democratic Sahrawis. This is the only way to build a transferred to a temporary tripartite admin- Western Sahara disrupts is a status quo de- peaceful, democratic future for Western Sa- istration. The Madrid Agreement did not hara and the entire region. fined by tyranny. The King will deny this. transfer sovereignty over the territory, nor Official Washington will ignore it. But it is LETTER DATED 29 JANUARY 2002 FROM THE did it confer upon any of the signatories the the truth. UNDER-SECRETARY-GENERAL FOR LEGAL AF- status of an administering Power—a status From 1884 until 1975, Western Sahara was a FAIRS, THE LEGAL COUNSEL, ADDRESSED TO which Spain alone could not have unilater- Spanish colony. Upon Spain’s withdrawal, THE PRESIDENT OF THE SECURITY COUNCIL ally transferred. The transfer of administra- Morocco invaded. The Sahrawis have fought 1. In a letter addressed to me on 13 Novem- tive authority over the territory to Morocco a lonely battle for liberation ever since, ber 2001, the President of the Security Coun- and Mauritania in 1975, did not affect the many suffering in the refugee camps that dot cil requested, on behalf of the members of international status of Western Sahara as Algerian sand dunes. The U.N. International the Security Council, my opinion on ‘‘the le- Non-Self-Governing Territory. Court of Justice ruled Morocco’s claim to gality in the context of international law, 7. On 26 February 1976, Spain informed the Western Sahara was illegitimate. Morocco including relevant resolutions of the Secu- Secretary-General that as of that it had terminated its presence in Western Sahara and ignored the ruling. rity Council and the General Assembly of the In 1991, Morocco accepted the U.N.-bro- United Nations, and agreements concerning relinquished its responsibilities over the Ter- kered cease-fire promising the Sahrawis a Western Sahara of actions allegedly taken ritory, thus leaving it in fact under the administration of both Morocco and Mauri- referendum for national self-determination. by the Moroccan authorities consisting in tania in their respective controlled areas. Moroccan officials moved tens of thousands the offering and signing of contracts with following the withdrawal of Mauritania from of their own citizens to Western Sahara, at- foreign companies for the exploration of the Territory in 1979, upon the conclusion of tempting to stack the vote in its favor. In mineral resources in Western Sahara’’. 2. At my request, the Government of Mo- the Mauritano-Sahraoui agreement of 19 Au- 1997, the United Nations asked former U.S. gust 1979 (S/13504, Annex I), Morocco has ad- rocco provided information with respect to Secretary of State James Baker to help im- ministrated the territory of Western Sahara two contracts, concluded in October 2001, for plement the referendum. Morocco continued alone. Morocco however, is not listed as the oil-reconnaissance and evaluation activities to balk. administering Power of the territory in the in areas off-shore Western Sahara, one be- The U.N.’s voter identification commis- United Nations list of Non-Self-Governing sion, using agreed-upon criteria, set out to tween the Moroccan ‘‘Office National de Territories, and has, therefore, not trans- identify the eligible voters. After years of Recherches et d’Exploitations Petrolieres’’ mitted information on the territory in ac- interviews with each, the U.N. in January (ONAREP) and the United States oil-com- cordance with Articles 73 (e) of the United 2000 published the provisional list of voters, pany Kerr Mc-Gee du Maroc Ltd., and the Nations Charter. rejecting the majority of Moroccan appli- other between ONAREP and the French oil 8. Notwithstanding the foregoing, and cants. Morocco—fearing it would lose the company TotalFinaElf E&P Maroc. Con- given the status of Western Sahara as a Non- upper hand—reneged on its commitment to cluded for an initial period of 12 months, Self-Governing Territory, it would be appro- the referendum. both contracts contain standard options for priate for purposes of the present analysis to To break the impasse, Mr. Baker sub- the relinquishment of the rights under the have regard to the principles applicable to mitted a compromise plan to the Security contract or its continuation, including an the powers and responsibilities of an admin- Council in July 2003. The plan included a ref- option for future oil contracts in the respec- istering Power in matters of mineral re- erendum for the Sahrawis and gave Moroc- tive areas or parts thereof. source activities in such a Territory. cans who settled in Western Sahara through 3. The question of the legality of the con- B. THE LAW APPLICABLE TO MINERAL RESOURCE 1999 the right to vote, making them the ma- tracts concluded by Morocco off-shore West- ACTIVITIES IN NON-SELF-GOVERNING TERRI- jority of the electorate. Convinced a peaceful ern Sahara requires an analysis of the status TORIES of the territory of Western Sahara, and the solution was possible, the leading Sahrawi 9. Article 73 of the United Nations Charter status of Morocco in relation to the Terri- political group—the POLISARIO Front—re- lays down the fundamental principles appli- luctantly accepted the terms of Mr. Baker’s tory. As will be seen, it also requires an cable to Non-Self-Governing Territories. plan. Its gesture was never reciprocated. Mo- analysis of the principles of international Members of the United Nations who assumed rocco, supported by France, rejected the law governing mineral resource activities in responsibilities for the administration of Baker Plan from the outset. Non-Self-Governing Territories. these territories have whereby recognized As this battle rages, Sahrawis suffer. The 4. The law applicable to the determination the principle that the interest of the inhab- Moroccan government continues to imprison of these questions is contained in the United itants of these territories are paramount, Sahrawi activists, exploit the natural re- Nations Charter, in General Assembly reso- and have accepted as a sacred trust the obli- sources of Western Sahara, and prohibit for- lutions, pertaining to decolonization, in gen- gation to promote to the utmost the well- eign journalists from transmitting the truth eral, and economic activities in Non-Self- being of the inhabitants of these territories. to the outside world, as evidenced by the re- Governing Territories, in particular, and in Under Article 73 (e) of the Charter, they are cent expulsion of several Danish reporters. agreements concerning the status of Western required to transmit regularly to the Sec- The U.N. has spent more than $600 million Sahara. The analysis of the applicable law retary-General for information purposes sta- to maintain this dreadful status quo. Succes- must also reflect the changes and develop- tistical and other information of a technical sive U.S. administrations, Republican and ments which have occurred as international nature relating to economic, social, and edu- Democrat, have walked a fine line on this law has been progressively codified and de- cational conditions in the territories under issue. Morocco is a longstanding ally. How- veloped, as well as the jurisprudence of the their administration. ever, alliance with powerful nations should International Court of Justice and the prac- 10. The legal regime applicable to Non- not provide the cover to ignore international tice of States in matters of natural resource Self-Governing Territories was further devel- commitments and deny the basic human activities in Non-Self-Governing Territories. oped in the practice of the United Nations

VerDate jul 14 2003 23:57 Jul 23, 2004 Jkt 029060 PO 00000 Frm 00019 Fmt 4634 Sfmt 0634 E:\CR\FM\A22JY7.079 H22PT2 H6634 CONGRESSIONAL RECORD — HOUSE July 22, 2004 and, more specifically, in the Special Com- of peoples and nations to use and dispose of the return of its investment, Spain laid no mittee and the General Assembly. Resolu- the natural resources in their territories in claim to benefit from the proceeds (A/10023/ tions of the General Assembly adopted under the interest of their national development Rev.1, p. 52) the agenda item ‘‘implementation of the and well-being, was established in General 19. The exploitation of uranium and other Declaration on the Granting of Independence Assembly resolution 1803 (XVII) of 14 Decem- natural resources in Namibia by South Afri- to Colonial Countries and Peoples’’, called ber 1962. It has since been reaffirmed in the ca and a number of Western multinational upon the administering Powers to ensure 1966 International Covenants on Economic, corporations was considered illegal under that all economic activities in the Non-Self- Social and Cultural Rights and on Civil and Decree No. 1 for the Protection of the Nat- Governing Territories under their adminis- Political Rights, as well as in subsequent ural Resources of Namibia, enacted in 1974 tration do not adversely affect the interests General Assembly resolutions, most notably, by the United Nations Council for Namibia, of the peoples of such territories, but are in- resolution 3201 (S–VI) of 1 May 1974, ‘‘Dec- and was condemned by the General Assembly stead directed to assist them in the exercise laration on the Establishment of a New (GA res. 36/51 of 24 November 1981, and 39/42 of their right to self-determination. The As- International Economic Order’’, and Resolu- of 5 December 1984). The case of Namibia, sembly also consistently urged the admin- tion 3281 (XXIX) containing the Charter of however, must be seen in the light of Secu- istering Powers to safeguard and guarantee Economic Rights and Duties of States. While rity Council resolution 276 (1979) of 30 Janu- the inalienable rights of the peoples of these the legal nature of the core principle of ‘‘per- ary 1970, which declared that the continued territories to their natural resources, and to manent sovereignty over natural resources’’, presence of South Africa in Namibia was ille- establish and maintain control over the fu- as a corollary to the principle of territorial gal and that consequently all acts taken by ture development of those resources (GA res sovereignty or the right of self-determina- the Government of South Africa were illegal 35/118 of 11 December 1980; 52/78 of 10 Decem- tion, is indisputably part of customary inter- and invalid. ber 1997; 54/91 of 6 December 1999; 55/147 of 8 national law, its exact legal scope and impli- 20. The case of East Timor under the December 2000; and 56/74 of 10 December 2001). cations are still debatable. In the present United Nations Transitional Administration 11. In the resolutions adopted under the context, the question is whether the prin- in East Timor (UNTAET) is unique in that, item ‘‘Activities of foreign economic and ciple of ‘‘permanent sovereignty’’ prohibits while UNTAET is not an administering other interests which impede the Implemen- any activities related to natural resources Power within the meaning of Article 73 of tation of the Declaration on the Granting of undertaken by an administering Power (cf. the United Nations Charter, East Timor is Independence to Colonial Countries and Peo- para. 8 above) in a Non-Self-Governing Terri- still technically listed as a Non-Self-Gov- ples in territories under Colonial Domina- tory, or only those which are undertaken in erning Territory. By the time UNTAET was tion’’, the General Assembly reiterated that disregard of the needs, interests and benefits established in October 1999, the Timor Gap ‘‘the exploitation and plundering of the ma- of the people of that territory. Treaty was fully operational and concessions rine and other natural resources of colonial had been granted in the Zone of Cooperation C. THE CASE LAW OF THE INTERNATIONAL COURT and Non-Self-Governing Territories by for- by Indonesia and Australia, respectively. In OF JUSTICE eign economic interests, in violation of the order to ensure the continuity of the prac- relevant resolutions of the United Nations, is 15. The question of natural resource exploi- tical arrangements under the Timor Gap a threat to the integrity and prosperity of tation by administering Powers in Non-Self- Treaty, UNTAET, acting on behalf of East these Territories’’ and that ‘‘any admin- Governing Territories was brought before Timor, concluded on 10 February 2000, an Ex- istering Power that deprives the colonial the International Court of Justice in the change of Letters with Australia for the con- people of Non-Self-Governing Territories of Case of East Timor (Portugal v. Australia) tinued operation of the terms of the Treaty. the exercise of their legitimate rights over and the Case Concerning Certain Phosphate Two years later, in anticipation of independ- their natural resources . . . violates the sol- Lands in Nauru (Nauru v. Australia). In nei- ence, UNTAET, acting on behalf of East emn obligations it has assumed under the ther case, however, was the question of the Timor, negotiated with Australia a draft Charter of the United Nations’’ (GA res. 48/46 legality of resource exploitation activities in ‘‘Timor Sea Arrangement’’ which will re- of 10 December 1992 and 49/40 of 9 December Non-Self-Governing Territories conclusively place the Timor Gap Treaty upon the inde- 1994). determined. pendence of East Timor. In concluding the 12. In an important evolution of this doc- 16. In the Case of East Timor, Portugal ar- agreement for the exploration and exploi- trine, the General Assembly in resolution 50/ gued that in negotiating with Indonesia an tation of oil and natural gas deposits in the 33 of 6 December 1995, drew a distinction be- agreement on the exploration and exploi- continental shelf of East Timor, UNTAET, tween economic activities that are detri- tation of the continental shelf area of the on both occasions, consulted fully with rep- mental to the peoples of these territories and Timor Gap, Australia had failed to respect resentatives of the East Timorese people, those directed to benefit them. In paragraph the right of the people of East Timor to per- who participated actively in the negotia- 2 of that resolution, the General Assembly manent sovereignty over its natural wealth tions. and resources, and the powers and rights of affirmed ‘‘the value of foreign economic in- E. CONCLUSIONS vestment undertaken in collaboration with Portugal as administering Power of East Timor. In the absence of Indonesia’s partici- 21. The question addressed to me by the Se- the peoples of Non-Self-Governing Terri- curity Council namely, ‘‘the legality . . . of tories and in accordance with their wishes in pation in the proceedings, the International Court of Justice concluded that it lacked ju- actions allegedly taken by the Moroccan au- order to make a valid contribution to the thorities consisting in the offering and sign- socio-economic development of the Terri- risdiction. 17. In the Nauru Phosphate Case, Nauru ing of contracts with foreign companies for tories’’. This position has been affirmed by claimed the rehabilitation of certain phos- the exploration of mineral resources in West- the General Assembly in later resolutions phate lands worked out before independence ern Sahara,’’ has been analysed by analogy (GA res. 52/72 of 10 December 1997; 53/61 of 3 in the period of the Trusteeship administra- as part of the more general question of December 1998; 54/84 of 5 December 1999; 55/38 tion by Australia, New Zealand and the whether mineral resource activities in a of 8 December 2000; and 56/66 of 10 December United Kingdom. Nauru argued that the Non-Self-Governing Territory by an admin- 2001). istering Power is illegal, as such, or only if 13. The question of Western Sahara has principle of permanent sovereignty over natural resources was breached in cir- conducted in disregard of the needs and in- been dealt with by both the General Assem- terests of the people of that territory. An bly, as a question of decolonization, and by cumstances in which a major resource was depleted on grossly inequitable terms and its analysis of the relevant provisions of the the Security Council as a question of peace United Nations Charter, General Assembly extraction involved the physical reduction of and security. The Council was first seized of resolutions, the case law of the International the land. Following the Judgment on the the matter in 1975, and in resolutions 377 Court of Justice and the practice of States, Preliminary Objections, the parties reached (1975) of 22 October 1975 and 379 (1975) of 2 No- supports the latter conclusion. vember 1975 it requested the Secretary-Gen- a settlement and a Judgment on the merits 22. The principle that the interests of the eral to enter into consultations with the par- was no longer required. peoples of Non-Self-Governing Territories ties. Since 1988, in particular, when Morocco D. THE PRACTICE OF STATES are paramount, and their well-being and de- and the Frente Polisaro agreed, in principle, 18. In the recent practice of States, cases of velopment is the ‘‘sacred trust’’ of their re- to the settlement proposals of the Secretary- resource exploitation in Non-Self-Governing spective administering Powers, was estab- General and the Chairman of the OAU, the Territories have, for obvious reasons, been lished in the Charter of the United Nations political process aiming at a peaceful settle- few and far apart. In 1975, the United Nations and further developed in General Assembly ment of the question of Western Sahara has Visiting Mission to Spanish Sahara reported by resolutions on the question of de- been under the purview of the Council. For that at the time of the visit, four companies colonization and economic activities in Non- the purposes of the present analysis, how- held prospecting concessions in off-shore Self-Governing Territories. In recognizing ever, the body of Security Council resolu- Spanish Sahara. In discussing the exploi- the inalienable rights of the peoples of Non- tions pertaining to the political process is tation of phosphate deposits in the region of Self-Governing Territories to the natural re- not relevant to the legal regime applicable Bu Craa with Spanish officials, the Mission sources in their territories, the General As- to mineral resource activities in Non-Self- was told that the revenues expected to ac- sembly has consistently condemned the ex- Governing Territories and for this reason is crue would be used for the benefit of the Ter- ploitation and plundering of natural re- not dealt with in detail in the present letter. ritory, that Spain recognized the sovereignty sources and any economic activities which 14. The principle of ‘‘permanent sov- of the Saharan population over the Terri- are detrimental to the interests of the peo- ereignty over natural resources’’ as the right tory’s natural resources and that, apart from ples of these territories and deprive them of

VerDate jul 14 2003 23:57 Jul 23, 2004 Jkt 029060 PO 00000 Frm 00020 Fmt 4634 Sfmt 0634 E:\CR\FM\A22JY7.085 H22PT2 July 22, 2004 CONGRESSIONAL RECORD — HOUSE H6635 their legitimate rights over their natural re- 1. Exhaustive pre-identification of the ap- be able to cite one or more family mem- source. It recognized, however, the value of plicants and their sub-fractions: bers already counted or identified, and give economic activities which are undertaken in It emerges from the daily activity reports their numbers. accordance with the wishes of the peoples of from the ethnic workshops forwarded by convince the Moroccan Cheikh who will those territories, and their contribution to yourself that, unfortunately, only a small then convince the Identification Commis- the development of such territories. number of Walis and Governors (see list at- sion. 23. In the Cases of East Timor and Nauru, tached to this circular) have an exact knowl- Full mastery of these elements implies the International Court of Justice did not edge of the tribes and sub-fractions relevant preliminary training of the applicant in his pronounce itself on the question of the legal- to their respective commands, and have con- prefecture or province of origin and 2 or 3 ity of economic activities in Non-Self-Gov- sequently been able to provide the Ministry days of fine tuning with the Moroccan erning Territories. It should be noted, how- of the Interior with statistical data on the Cheikh before the identification session. ever, that in neither case was it alleged that applicants that conforms to the information 3. Responsibilities of the Cheikh and the mineral resource exploitation in such terri- in the central index. Observer: tories was illegal per se. In the Case of East The others are invited immediately to As specified in the document attached to Timor, the conclusion of an oil exploitation produce their data on the tribes and sub- this circular, concerning ‘‘verification of eli- agreement was allegedly illegal because it fractions and on the number of applicants gibility’’ of applicants, the Cheikh’s main was not concluded with the administering present in their respective commands and mission with MINURSO is to testify that the Power (Portugal); in the Nauru Case, the il- held ready to be summoned at any time to applicant fulfils one of the five identification legality allegedly arose because the mineral MINURSO’s Identification Centres. criteria defined by the United Nations Peace resource exploitation depleted unnecessarily It goes without saying that an incomplete Plan. or inequitably the overlaying lands. knowledge of the sub-fractions and their To this end, it is necessary for the Cheikh 24. The recent State practice, though lim- numbers in a prefecture or province results to meet at least once with the Observer and ited, is illustrative of an opinio juris on the in underestimation of the real population of the applicants from each sub-fraction to be- part of both administering Powers and third applicants, so that an insufficient number of come amply acquainted with the latter in States: where resource exploitation activi- these is being trained and taken to the Iden- preparation for the identification session. A ties are concluded in Non-Self-Governing tification Centres, contrary to the objective list, in Arabic, of the applicants from his Territories for the benefit of the peoples of of my earlier instructions. sub-fraction should be supplied to the these territories, on their behalf, or in con- The Walis and Governors concerned will Cheikh. To facilitate contact between the appli- sultation with their representatives, they therefore, on receipt of this circular, require cants and the Cheikh of their fraction, the are considered compatible with the Charter their information technology units to con- Observer teams will be tripled to enable obligations of the administering Power, and tact the central information technology them to follow the identification operation in conformity with the General Assembly service to arrange immediate presentation of at the same time as preparing the appli- resolutions and the principle of ‘‘permanent the province’s or prefecture’s data on the sovereignty over natural resources’’ en- cants. sub-fractions and their numbers. In the identification session the Cheikh shrined therein. 2. Preparation of applicants for identifica- 25. The foregoing legal principles estab- should appear credible and convincing and tion: lished in the practice of States and the should not restrict himself to recognizing As specified in my previous circulars, the United Nations pertain to economic activi- the applicant, but seek to support and defend basis for the summoning and identification ties in Non-Self-Governing Territories, in him as well. He should listen closely to the of applicants by MINURSO is the form filled general, and mineral resource exploitation, applicant’s declaration and give active, rea- out by them in 1994, on which the in particular. It must be recognized, how- soned and coherent testimony in support of computerised data-banks used by this mis- ever, that in the present case, the contracts the applicant’s answers. sion and by the Ministry of the Interior for oil reconnaissance and evaluation do not He should have perfect knowledge of the itself are both based. entail exploitation or the physical removal applicant, his lineage and his links with the Each applicant is registered and can be of the mineral resources, and no benefits sub-fraction and region. sought through his form number. The form have as of yet accrued. The conclusion is, He should relate this in a clear and con- contains the applicant’s main details and therefore, that, while the specific contracts vincing manner to the Identification Com- those of his father and mother, in addition to which are the subject of the Security Coun- mission to elicit a positive verdict from it. all the elements that specify which identi- cil’s request are not in themselves illegal, if 4. Role of the Instructors fication criterion, out of the five criteria de- further exploration and exploitation activi- Close contact between the Instructor, the fined by the United Nations Peace Plan, is ties were to proceed in disregard of the inter- Cheikh and the Observer is essential to train likely to be fulfilled by the applicant. ests and wishes of the people of Western Sa- the Cheikh, teach him the identification The applicant must also have perfect hara, they would be in violation of the inter- process and the five eligibility criteria, raise knowledge at least of the contents of the national law principles applicable to mineral his awareness, motivate him and remove any said form. However, when this document resource activities in Non-Self-Governing complexes he may have about the MINURSO does not reflect the applicant’s real situa- Territories. Commission. tion, he should not be imprisoned by it but At least one full-day session involving the HANS CORELL, should seek to make it easy for the Identi- Observer, the Instructor, the Cheikh and the Under-Secretary for legal Affairs, fication Commission to recognise key ele- applicants from the sub-fraction is necessary The Legal Counsel. ments, such as: to coordinate, evaluate and plan their com- the birthplaces of the applicant and his im- mon action. KINGDOM OF MOROCCO, mediate family (father, mother, children). For each ethnic sub-fraction, it is proposed MINISTRY OF INTERIOR, SECRETARIATE, the seasonal pasture zones frequented in that a group of applicants from the Southern Rabat, January 22, 1998. the Sahara by the applicant or his family. Provinces who have already been identified, From: The Minister of State for the Interior. landmark dates in relation to the birth of along with qualified cadres from these prov- To: All Walis and Governors of the King- the applicant and his immediate family (fa- inces, should be formed to help with the dom’s Prefectures and Provinces. ther, mother, children) in the Sahara. training programme of applicants from the Object: Training workshops for applicants the lineage of the applicant and his imme- Northern Provinces. for identification for the referendum to diate family and kinship with a known These applicants should identify the best- confirm the Moroccanness of the Sahara. Sahrawi family. known and most widely distributed parts of This circular results from examination of the history of the applicant’s tribe and their lineage and make them known to the the daily activity reports on the ethnic family. Identification Commission. workshops, forwarded by yourselves, and geography of the region in which they In the same context, applicants from the from remarks, suggestions and proposals lived and travelled. Northern Provinces who are of Sahrawi ori- made by the Moroccan party’s Observers in Lastly, there is a need to inculcate the ap- gin should be integrated with their respec- the light of seven weeks of identification, plicant with a psychological stance enabling tive tribes to familiarize themselves with some twenty weeks from the end of this op- him to: certain details that may help facilitate their eration. demystify the identification operation and identification. The results of identification having so far the MINURSO commission. Nevertheless, in cases where applicants in fallen short of the necessary level, owing in be motivated and aware of the stakes in this category are certain of their Sahrawi or- part, certainly, to evidence from the the referendum. igin but have acquired the culture of North- Chyoukh representing the other party which have confidence in himself and be self-as- ern Morocco, those concerned should defend is often negative, but also owing to the sured. their Moroccan personality while providing manifestly insufficient preparation of our overcome shyness and diffidence and speak convincing proofs of their Sahrawi origin. applicants, you are invited to pay the closest loudly and clearly. Lastly, agents of the authorities, notables, attention to this briefing and supervise per- learn in advance, from applicants already young people and women should be mobilized sonally, in accordance with my earlier in- identified as belonging to the same subfrac- in support of this operation. structions, the strict application of the fol- tion, what questions the Identification Com- A special unit is to be established for pre- lowing measures: mission is asking. paring the Chyoukh, and a system set up to

VerDate jul 14 2003 23:57 Jul 23, 2004 Jkt 029060 PO 00000 Frm 00021 Fmt 4634 Sfmt 0634 E:\CR\FM\A22JY7.088 H22PT2 H6636 CONGRESSIONAL RECORD — HOUSE July 22, 2004 train the Instructors and the Chyoukh in, for that the area of Western Sahara was menting the FTA (H.R. 4842) to provide pref- example: justly and peacefully resolved. It would erential tariff treatment for goods from the the identification process. territory of Morocco. Preferential tariff the five criteria. have been a lever we could have used to get them to resolve this. treatment will not be provided to goods from the role of the Chyoukh. Western Sahara. the technical arrangements. The U.N. has said you should have an I hope this letter addresses your question Finally, deserving Chyoukh are to be en- election and they just never quite get regarding the FTA and the status of Western couraged and treated with respect. around to having it for 25 years. Sahara. I encourage you to support the FTA. In conclusion, the next twenty weeks are I am really pleased, however, that It will create economic opportunities for of determining importance for the outcome the chairman of the House Committee U.S. manufacturing and service firms, work- of the referendum to confirm the ers, and farmers, and will support economic Moroccanness of the Sahara, whose result on Ways and Means and the ranking reforms and foreign investment in Morocco. depends on your immediate action to apply member, the gentleman from New York Thank you again for your letter. Please integrally all the instructions you have been (Mr. RANGEL), have worked with me to feel free to contact me should you have fur- given on this subject, which I invite you insert language into the official com- ther questions. once again to execute rigorously in liaison mittee documents to indicate that in Sincerely, with the central Governors concerned, who no way does the free trade agreement ROBERT B. ZOELLICK. are required to keep me regularly informed. cover trade investment in the Western DRISS BASRI, Mr. CRANE. Mr. Speaker, I yield 2 Sahara. minutes to the gentlewoman from Con- The Minister of State for the Interior. The issue is this: If you drill oil in necticut (Mrs. JOHNSON). Mr. LEVIN. Mr. Speaker, I yield 4 the Western Sahara and the Moroccans Mrs. JOHNSON of Connecticut. Mr. minutes to the gentleman from Wash- take it into Morocco, is it then eligible Speaker, I thank the gentleman for ington (Mr. MCDERMOTT), a colleague for tariff-free dealings with the United and friend from the Committee on yielding me time. States? And the answer should be no, One of the earlier speakers called for Ways and Means. and there should really never have (Mr. MCDERMOTT asked and was a moratorium on trade agreements. been a trade agreement until that legal There is nothing that we could do that given permission to revise and extend claim was relinquished or we had some his remarks.) would hurt American workers more sort of agreement on all of this. than a moratorium. Mr. MCDERMOTT. Mr. Speaker, the What we do have is a letter which the Over the last few years Europe has President and his Trade Representative gentleman from Pennsylvania (Mr. consummated about 36 bilateral trade say that the U.S.-Morocco free trade PITTS) inserted in the RECORD. I sus- agreements in this part of the world, agreement is a good idea because it pect I have one very similar to his but and we have consummated about three. will strengthen our economic ties with he will insert it also in the RECORD. I Now, when they create a trade agree- moderate, I emphasize moderate, Mus- will include a letter from the Trade ment with a bilateral agreement with lim countries. Representatives saying that in dealing one of these countries, what they are Well, first of all, two-way trade flow with Morocco we are dealing with Mo- doing is socking in product standards between the United States and Mo- rocco as understood by the United Na- that advantage their products and dis- rocco is around a billion dollars a year. tions and the United States, and we are advantage our products. Morocco is a tiny economy with little not using this as a kind of end-around When we write a free trade agree- economic significance. The U.S. Com- to go out and get more oil. ment with one of these countries it is merce Department indicated the trade One wonders why did we go to Mo- entirely different. That is why coun- agreement will have a negligible im- rocco? What is it about Morocco? It is tries like to work with us. It is com- pact on trade and negligible impact on a little tiny country, very little trade prehensive. It includes all products and our economies. with us. What is being done here that it is fair, transparent and modern, and Furthermore, while I recognize that really needs to be done? King Mohammed VI has made great I think we need to protect the indige- I commend Morocco for not only its strides recently, particularly with re- nous people of the Sahrawi who live in commitment to develop its economy in gard to the rights of women, we should Western Sahara. They need to have the a way in which everyone benefits and not forget two very important issues. protection from this United States everyone prospers, but to have evi- One, Morocco is a monarchy and the reaching in and taking their resources denced that commitment by changing king is deemed the country’s religious by the back door. I thank the chairman their labor law in preparation for this leader. This FTA is really about for bringing this issue to the floor. free trade agreement. I think that is strengthening ties with moderate mon- very commendable. EXECUTIVE OFFICE OF THE PRESI- They changed their labor law to raise archies; Jordan, Bahrain and others DENT, THE UNITED STATES TRADE have preceded it. REPRESENTATIVE the minimum employment age, to re- There are dozens of Muslim countries Washington, DC, July 20, 2004. duce the number of hours in a work- that are vibrant democracies, Egypt, Hon. JIM MCDERMOTT, week, to call for periodic review of the that we should have chosen to pursue House of Representatives, Moroccan minimum wage, to improve trade agreements before we chose Mo- Washington, DC. health and safety regulations, and I am rocco. DEAR CONGRESSMAN MCDERMOTT: Thank skipping over a lot of details, to guar- But, two, the way in which Morocco you for your letter of July 19, 2004, con- antee the right of association and col- has handled the Western Sahara is cerning our Free Trade Agreement (FTA) lective bargaining. They looked at the with Morocco and the status of Western Sa- really a stain on their nation. In 1975, hara. world standards of how you should when the Western Sahara went free The Administration’s position on Western treat your workforce and they changed from Spain, the Moroccans moved in Sahara is clear: sovereignty of Western Sa- their laws to make those standards immediately and said this is our coun- hara is in dispute, and the United States their standards. try. It is a very, very wealthy country fully supports the United Nations’ efforts to They are moving. They are devel- in natural resources. Both oil is being resolve this issue. The United States and oping. Europe is trading with them drilled for by Kerr McGee and other many other countries do not recognize Mo- twice as many dollars worth of product roccan sovereignty over Western Sahara and American and British companies, and have consistently urged the parties to work as we are in America. This free trade the fishing industry off the coast is with the United Nations to resolve the con- agreement will change that and ensure very proficient. flict by peaceful means. American jobs, creating new ones as So before signing an agreement with The FTA will cover trade and investment well. them, with a nation that has been oc- in the territory of Morocco as recognized Mr. BROWN of Ohio. Mr. Speaker, I cupying a territory to which it has no internationally, and will not include Western yield 4 minutes to the gentlewoman legal claim for 25 years, a nation that Sahara. As our Harmonized Tariff Schedule from Ohio (Ms. KAPTUR). has erected a 2,000-kilometer wall to makes clear, for U.S. Customs purposes, the Ms. KAPTUR. Mr. Speaker, I rise in United States treats imports from Western keep the inhabitants of Western Sa- Sahara and Morocco differently. Nothing in opposition to this Moroccan so-called hara from fleeing, with a country that the FTA will require us to change this prac- free trade agreement and ask the ques- has no respect for the right of self-de- tice. The Administration will draft the proc- tion, why has the United States as a re- termination, we should have ensured lamation authorized in the legislation imple- sult of these free trade agreements

VerDate jul 14 2003 02:07 Jul 24, 2004 Jkt 029060 PO 00000 Frm 00022 Fmt 4634 Sfmt 0634 E:\CR\FM\A22JY7.090 H22PT2 July 22, 2004 CONGRESSIONAL RECORD — HOUSE H6637 over the last 20 years amassed the larg- ican workers are losing jobs in this have with a country in the Middle est trade deficit in the United States country so we can provide them with East, and it would be another corner- history? They have told us when transitional assistance here at home. stone of U.S. free trade efforts in this NAFTA was passed we would have a This agreement has no adjustment pro- region. Achieving free trade and inte- trade balance. We would in fact have visions. grating this region into the global hundreds of thousands of new jobs in One of the interesting provisions in economy is of critical concern to the this country. this bill deals with Chapter 11. It guar- United States. What have we got? We have got the antees that if investors get in trouble Economically, socially, this region largest trade deficit with Mexico we in Morocco—such as, what if terrorists faces enormous problems, enormous di- have ever had, the largest trade deficit do some things over there we do not lemmas. Inequality in many Middle with Canada we have ever had, and an like—this agreement protects their pri- Eastern countries has grown. It has not outwash of jobs from the United States vate risk through government. Even diminished in recent decades. to Mexico, over 900,000 jobs and count- our own constitution does not do that Political, economic, and social sys- ing, nearly a million jobs. NAFTA did on investment. Investors get a good tems are intertwined and appear closed not work. deal in this agreement, workers do not. to those in the outside world. For those Then they said, well, let us sign the Let me address one of the other un- who are not already a part of the sys- China Free Trade Agreement. Boy, usual aspects of this agreement. It tem, improvement in their lives is only that will really be great. We will bring changes the wording of the provisions a distant dream. democracy to China. What have we that deal with agriculture and food In July 2002, the United Nations De- got? We have got the largest growing safety from being ‘‘equal to’’ to what is velopment Program released a report trade deficit in the history of the called ‘‘equivalency’’. Who is going to with some discouraging statistics. Mid- United States with China. Every day define equivalency on food safety and dle Eastern regional growth over the companies are closing in this country, how it is different from ‘‘equal to’’? Or last 2 decades has been the lowest in moving more production to China who is going to define equivalency on the world except for sub-Saharan Afri- where wages are what? Ten cents an prescription drugs? What it does is it ca. Labor productivity has been on the hour, 20 cents an hour. puts us on a downward path compared decline since 1960. 65 million people are The gentleman from Vermont (Mr. to the high standards we have set in illiterate. One of every two women can SANDERS) asked the opposition here, this country for our own food and drug neither read nor write. Ten million what is the minimum wage in Mo- safety. children are not in school. Unemploy- rocco? Nobody stood up. Do you know This is a bad deal. It is a bad deal ment has reached 15 percent with many what it is? Eighty cents, 80 cents an economically. It is a bad deal politi- areas experiencing much higher rates. hour in Morocco. cally. In view of our standing in the The Middle East cannot be healthy What makes you think if we pass an- Muslim and Arab world, this is a bad socially or politically so long as its other NAFTA-like trade agreement, deal. It does not promote democracy. economies are in crisis. The United this time with Morocco, are we going I encourage my colleagues in this States has a strong interest in helping to make it any better? This is no dif- body to vote no on this NAFTA-like ex- to stimulate the economies and pro- ferent than what we have had. In fact, pansion that now aims to include Mo- mote stability in the region. it is more of the same and even worse. rocco. Now, the U.S.-Morocco free trade Our trade balance with Morocco is Mr. CRANE. Mr. Speaker, I yield my- agreement cannot by itself solve the going down. Now, I think this agree- self such time as I may consume. deep and widespread economic and so- ment with Morocco has nothing to do Mr. Speaker, I appreciate the gentle- cial inequalities which permeate this with trade. It has everything to do woman’s comments, but we are dis- region, but the U.S.-Morocco free trade with the Sahara and with oil relation- cussing the U.S.-Morocco FTA, which agreement is a step in helping one ships along the western side, and that passed the Committee on Ways and country in this region deepen its inte- is a whole other story not for this de- Means by a vote of 26 to nothing. In ad- gration into the world trading system bate. But why would we want to sign a dition, we have a trade surplus with and reach its aspirations for develop- free trade agreement with a kingdom? Morocco. Trade with Morocco creates ment. Why would we want to empower a mon- jobs. The projections are right now Passing this agreement will help this archy which this will do? You cannot that over the next decade our exports North African country develop and have free trade with a country that is will triple in the agricultural sector practice a system of the rule of law not free. Look at Saudi Arabia, where alone, and the Trade Adjustment As- that will have implications far beyond the majority of terrorists came from. sistance Program already provides ben- trade and the commercial sector. That is a kingdom. Why would we want efits to anyone adversely effected by I urge my colleagues to support this to empower those who hold assets in trade, and there is no need for a new agreement. It is more than just an undemocratic countries? That is ex- program. agreement. It symbolizes our efforts, actly what this agreement will do with Mr. Speaker, I yield 3 minutes to the the efforts of the United States, to in- Morocco. gentleman from Arizona (Mr. KOLBE). tegrate this country and this region in This agreement is worse than Mr. KOLBE. Mr. Speaker, just to cor- partnership with shared aspirations NAFTA. NAFTA’s labor and environ- rect the record, and I am sure the gen- and expectations. mental provisions are a joke anyway. tlewoman misspoke, the United States I thank the gentleman for yielding They are just side agreements with no does not have a free trade agreement me time. teeth. This agreement has nothing, let with China. We have normal trade rela- Mr. LEVIN. Mr. Speaker, I yield 3 me repeat, this has nothing to do with tions but no free trade agreement with minutes to the gentleman from Massa- labor or environment. It does not have China. chusetts (Mr. NEAL), another distin- anything like the Jordanian trade guished member of the Committee on agreement which made a step toward b 1715 Ways and Means. labor and the environment. Further, Mr. Speaker, I do rise in support of (Mr. NEAL of Massachusetts asked this agreement blocks the reimporta- this U.S.-Morocco free trade agreement and was given permission to revise and tion of prescription drugs as the Aus- and thank the gentleman from Illinois extend his remarks.) tralian agreement did. for his leadership on this. Mr. NEAL of Massachusetts. Mr. This agreement provides for the pri- Today, I am not going to talk about Speaker, I want to commend the gen- vatization of public services, more the merits of the agreement. I think tleman from Michigan (Mr. LEVIN). He outsourcing of our service jobs in this there are plenty of them; but instead, I does a terrific job with the gentleman country. There are no adjustment pro- want to point out what I think this from Illinois (Mr. CRANE) on a bipar- visions in this agreement for workers agreement means in the context of U.S. tisan basis to ensure that every opin- who lose their jobs. In fact, in the old policy for the broader Middle East. ion is heard on the Subcommittee on NAFTA agreement, they now do not This agreement would be the second Trade over at the Committee on Ways even want to count how many Amer- free trade agreement that we would and Means. I think oftentimes that is

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why we have the final product that we tleman from Ohio (Mr. BROWN) has 141⁄2 we can build an economic bridge with do. minutes remaining. Morocco and the Middle East. Let me use this opportunity, Mr. Mr. CRANE. Mr. Speaker, I yield 3 Mr. BROWN of Ohio. Mr. Speaker, I Speaker, to explain why I will be vot- minutes to the distinguished gentle- yield myself such time as I may con- ing in favor of this bilateral free trade woman from Washington (Ms. DUNN), a sume. agreement between the United States member of the Committee on Ways and I am a little puzzled by this debate. I and Morocco, even though there are Means. heard my friend from Texas talk about several aspects of the agreement that Ms. DUNN. Mr. Speaker, I want to all the great promises of free trade and trouble me. thank the gentleman from Illinois how these trade agreements are going My chief disappointment with the (Chairman CRANE) and the gentleman to mean so much to our farmers and to agreement is that, once again, the ad- from California (Chairman THOMAS) our workers and to our businesses. I ministration refused to specifically re- and our ranking members of the Com- have heard the gentleman from Illinois quire our trading partner to abide by mittee on Ways and Means for moving (Mr. CRANE) say some of the same the five most basic internationally rec- this free trade agreement so effectively kinds of things, but I guess I am puz- ognized labor standards. through the committee process and zled because I have heard that through- The International Labor Organiza- onto the floor so that before we break out my entire 12 years in Congress. tion has identified those principles as for August recess we can express our I have heard every trade agreement the right to associate and bargain col- support for this agreement. that comes to the floor, so many lectively, and prohibitions on forced I do rise in support of the U.S.-Mo- speakers say over and over and over labor, discrimination and child labor. rocco free trade agreement, Mr. Speak- again that if we pass these trade agree- Instead of assuring these minimal er. This is our second trade agreement ments, we are going to have more jobs, protections for foreign workers, our re- with an Arab country. With our trade we are going to do more exports, we are cent trade agreements have imposed a agreement with Morocco, along with going to have our balance in trade; and different standard. They require our those of Israel, Jordan, and Bahrain, look what has happened in the last 12 partners to enforce whatever labor we are working to improve economic years. laws exist in that particular country, opportunities in North Africa and in Our trade deficit when I came to this regardless of how lax those laws might the Middle East. Congress was about one-fourth of what be. While the Moroccan economy is it is today. We import $1.5 billion more While I strongly believe that this is much smaller than ours, it remains a every day than we export. George Bush, the wrong negotiating tack as a gen- key export market for the United Senior, said for every $1 billion of eral matter, in the specific case of Mo- States and for my home State. In a trade, either export or import, it was rocco, the country’s labor laws more State where approximately one in equivalent to somewhere in the vicin- than surpass international minimum three jobs is now related to trade, it is ity of 14 or 15 or 16,000 jobs. Well, we standards; and by all accounts, it ap- not surprising that Washington State have almost a $500 billion trade deficit. pears that the government is making a was the top exporter to Morocco with Do the math. That is an awful lot of genuine and conscientious effort to over $112 million in 2003. lost jobs. work with unions, workers, and em- By eliminating 95 percent of the tar- When we pass these trade agree- ployers to bolster its worker protec- iffs immediately on United States ments, we continue to hemorrhage tions even further, including the right manufactured goods, we are improving jobs. We continue to have job loss. We to strike. The labor provisions of this the competitiveness of our businesses continue to lose manufacturing jobs. agreement are not perfect, but they in Morocco. Of the $465 million total One out of six manufacturing jobs in represent a workable starting point. United States exported from Morocco my State has been lost since George Although this agreement is not what last year, nearly 29 percent, or $134 Bush took office. We have lost 165 jobs I would ideally like to see, it rep- million, was due to aerospace products. every day of the Bush administration. resents an important first step. Fun- It is very important to the Northwest, So the answer to that is let us do damentally, I believe that the U.S. can where so many jobs are directly or in- more of what we have already been improve its international standing and directly affected by our aerospace in- doing, let us do more tax cuts for the its national security by expanding dustry. In fact, Boeing aircraft domi- wealthiest people in society, hoping trade and strengthening its relation- nate Royal Air Morac’s fleet with a po- that maybe some of it will trickle ships with moderate Muslim countries. tential of 17 more planes on order. down to more jobs, and let us do more Unfortunately, more and more Muslim This agreement will also strengthen trade agreements which ship jobs over- voices are calling for boycotts of the intellectual property rights standards seas? People in our communities say United States and its products. That for patents, for trademarks and for these trade agreements are not work- makes it all the more critical for us to copyrights so that our high-tech indus- ing. reach out to those who are eager to tries are protected in our digital econ- China, entry of China in WTO; form a partnership with us. omy. Higher standards, however, are NAFTA; Singapore, Chile, Australia, Over the long term, I believe that not enough unless there is a commit- Morocco, these trade agreements are agreements with nations such as Mo- ment for better enforcement of these not translating into more jobs, and rocco are mutually beneficial from an standards. people at home know that. In spite of economic standpoint. They also rep- For this reason, I am very pleased what people in this institution say, in resent an opportunity to help mend with Morocco’s commitment to better spite of how people in this institution international relations that have en- enforcement of intellectual property vote, the fact is we continue to lose dured a great deal of strain over the rights, such as increasing criminal pen- manufacturing jobs in this country. We last several years. alties for piracy and for counterfeiting. have lost millions of jobs in this Bush Mr. Speaker, this agreement could be This is a very good agreement for our administration, and then we turn better. Certainly I would have nego- agricultural community. It eliminates around and do the same thing over and tiated it differently, but it will pave duties on our products, and it liberal- over and over. We make the same the way for progress in a region that is izes quotas on critical commodities. It promises over and over and over and critically important to the United also ensures that United States com- the results are the same. When we will States, and so it does have my support. modities will have equivalent access to ever learn? Mr. CRANE. Mr. Speaker, can the any other trade agreements that Mo- Mr. Speaker, I reserve the balance of Chair tell me how much time we have rocco negotiates with any other coun- my time. remaining. try. If Morocco gives another country Mr. CRANE. Mr. Speaker, I yield my- The SPEAKER pro tempore (Mr. better market access on agricultural self such time as I may consume. OSE). The gentleman from Illinois (Mr. products, our farmers get the same I think it is important for everyone CRANE) has 29 minutes remaining. The benefits. to understand that we have a trade sur- gentleman from Michigan (Mr. LEVIN) Mr. Speaker, I ask my colleagues to plus at the current time with Morocco. has 16 minutes remaining. The gen- support this trade agreement so that The projections are, though, that with

VerDate jul 14 2003 23:57 Jul 23, 2004 Jkt 029060 PO 00000 Frm 00024 Fmt 4634 Sfmt 0634 E:\CR\FM\K22JY7.117 H22PT2 July 22, 2004 CONGRESSIONAL RECORD — HOUSE H6639 this free trade agreement we will have ror, the most important aspect, long- dle East. That is a very, very impor- a very dramatic increase in our ex- term vision of that war on terror is im- tant goal. ports, especially our exports in the ag- proving our understanding and our re- Mr. LEVIN. Mr. Speaker, I yield 3 ricultural community with that dra- lations with moderate Muslim coun- minutes to the gentleman from New matic drop in tariff barriers that have tries, with the Arab world. This accom- York (Mr. CROWLEY). struck our access there, but we are plishes this. Mr. CROWLEY. Mr. Speaker, I thank making progress, dramatic progress. We have 10 TIFAs in place, 10 trade the gentleman for yielding me this Mr. Speaker, I yield 5 minutes to the and investment framework agreements time. gentleman from Wisconsin (Mr. RYAN), in place, throughout the Gulf, through- I rise in support of this free trade our distinguished colleague on the out Northern Africa, to engage in disagreement between the United States committee. cussion and dialogue with those coun- and Morocco. It has been a pleasure for Mr. RYAN of Wisconsin. Mr. Speaker, tries to help bring them up to the rules me to work not only with the gen- I thank the gentleman for yielding me of democracy, rules of free enterprise, tleman from Michigan (Mr. LEVIN), the time. I will just briefly pause and say, enforceable contracts, the rule of law, gentleman from New York (Mr. RAN- having a surplus with Morocco actually women’s right to vote, open societies. GEL), the gentleman from New York helps us with our trade deficit surplus (Mr. MEEKS), the gentleman from b 1730 figure because it adds to the surplus Washington (Mr. SMITH), the gen- side of it. This is what these trade agreements tleman from California (Mr. DOOLEY) Mr. Speaker, I would like to pause produce. So not only do we produce and others from our side, but also with for a moment and thank those who trade agreements like this Moroccan Members from the other side of the made this possible. I would like to agreement, which is good for jobs in aisle, the gentleman from Pennsyl- thank those negotiators at the U.S. America, we produce political reforms vania (Mr. ENGLISH), the gentleman Trade Representative who worked long by engaging in a partnership with from Missouri (Mr. BLUNT), the gen- and hard hours with the Moroccans to those in the Middle East who want de- tleman from Virginia (Mr. CANTOR), make this agreement possible. I would mocracy and want openness. Because of and the gentleman from California like to thank our committee chairman, these agreements and because of the (Chairman THOMAS) in making this bill the gentleman from California (Mr. role we play in the world, we serve as a reality today on the floor. THOMAS); our subcommittee chairman, a catalyst to getting these countries to As a Member who supports free trade the gentleman from Illinois (Mr. open their societies. and fair trade, and as a member of the CRANE); and also I would like to thank Here is one example with the Moroc- Subcommittee on the Middle East and the gentlewoman from Washington can agreement. Because of this trade Central Asia on the Committee on (Ms. DUNN), who spearheaded this agreement, Morocco passed a great International Relations, I was happy to through committee and here in Con- piece of legislation in their constitu- work with Members to develop this leg- gress. This is a great product. This is a tion and their law for labor standards. islation, which goes beyond being just great thing. They have been trying to do this for 20 a trade bill and morphing into a for- Now, specifically, why is this bene- years. For 20 years labor groups in Mo- eign policy tool. ficial to our constituents? Why is this rocco have been trying to get the right Morocco has been a strong ally and good for America? to collectively bargain, a shorter work- friend of the United States since we de- Well, number one, manufacturing, a week, better laws to protect against clared our independence, and this very important sector to our economy child labor. Those things are the law of agreement will continue to strengthen especially in my home State of Wis- the land in Morocco because of this our long-standing relationship. This consin. This is a great deal for manu- agreement. free trade agreement with Morocco will facturing. This gets rid of the tariffs on So what we are doing with this broad immediately eliminate duties on 95 our manufacturing goods going to Mo- initiative, through trade investment percent of nontextile industrial im- rocco. framework agreements, which lead to ports, which will be the best market Number two, and even more impor- these free trade agreements like we access the U.S. enjoys with a devel- tant, agriculture. For every $1 of im- have with Jordan and Bahrain and now oping nation. ports we take from Morocco in im- Morocco, what this accomplishes is Besides the economic benefits from ports, we export $10. This is a great bringing these nations into a partner- the implementation of this free trade agreement for agriculture, especially ship of democracy, of freedom, of open- agreement, it also has spurred our since the Europeans, who enjoy a 50 ness and prosperity. That is how we friends in Morocco to create a com- percent higher trade flow advantage end up improving the lives of people in prehensive new labor law which just with Morocco than we have at the the Middle East, and that at the end of went into effect this past June. The present time, do not have an agree- the day, and I am going to make this Moroccan new labor law raises the ment with Morocco on agriculture. Let connection, is how we make sure that minimum employment age, reduces the me say it another way. Morocco and young men and women who are suscep- workweek with overtime rates, im- Europe trade a lot with each other, 50 tible to the likes of al-Qaeda, who grow proves worker health and safety regu- percent more than we do with Morocco. up in tyrannical countries with lives lations, addresses gender equity, and That is going to change with this where they have no hope and no place promotes employment of the disabled. agreement, thankfully; but the Euro- to put their creative energies and turn This labor law also guarantees rights peans do not have an agriculture agree- to the likes of al-Qaeda, now have hope of association and collective bar- ment with Morocco. We will, and that in the countries where they did not gaining. I believe we can credit this means we will sell even more agricul- have them before. movement in terms of improvement of tural products to Morocco. That is a Now young people in these countries labor standards in Morocco to hopes by great thing. who are opening up their systems, Morocco of agreement on this trade We have a trade surplus with Mo- bringing democracy, bringing open so- agreement. rocco. They are a great trading part- cieties, they have hope. They have a Morocco has been a stabilizing force ner. This is good for jobs. It is good for place to channel their energies. This in the Middle East, and this agreement manufacturing. It is good for agri- will be one if we improve our relation- will help Morocco to continue on the culture; but Mr. Speaker, there is a ship, our cultural understanding, our path of moderation. In fact, Morocco broader vision here. There is a broader dialogue, and, yes, our trade with these has been a good friend to one of our purpose for all of this. countries. strongest allies, Israel. Morocco has This is part of the President’s MEFTI The Moroccan trade agreement is a the largest population of Jews outside plan. This is part of the Middle Eastern perfect example of this vision. I urge of Israel in the Middle East and has Free Trade Initiative. What is that ini- Members to pass this trade agreement. played an important role in trying to tiative? That initiative is to recognize It is good for jobs, it is good for Ameri- stabilize the current situation by con- we need to play a constructive role in cans, it is good for Moroccans, and it is tinuing to play a role as a critical back the Middle East; that in the war on ter- good for our foreign policy in the Mid- channel for communications among

VerDate jul 14 2003 23:57 Jul 23, 2004 Jkt 029060 PO 00000 Frm 00025 Fmt 4634 Sfmt 0634 E:\CR\FM\K22JY7.118 H22PT2 H6640 CONGRESSIONAL RECORD — HOUSE July 22, 2004 Israel, the Arab world, and the United with Mexico before we signed NAFTA. This bill, however, speaks to the States. I think when we get ourselves into issue of labor concerns. I am delighted At the core of this trade initiative is these trade agreements the argument in 2003 Morocco undertook a major so- the belief that through economic op- is we have a trade surplus but things cial dialogue involving the government portunity and partnership with the are going to change, and we need to of Morocco and talked about adopting United States and Israel the goal of look at that here. and did adopt in fact major labor law peace in this region can be furthered. I What I cannot understand today, not reforms in July 2003 which reflected a support this free trade agreement be- only with this agreement but the legis- common agreement and was endorsed tween the United States and Morocco, lation that passed out of this House by all groups. Standards of labor treat- and I urge Members to vote for final earlier, is what are the priorities? We ment and the elimination of child labor passage. are trying to strip the Supreme Court laws has been the result of these nego- Mr. CRANE. Mr. Speaker, I yield my- of their power that was given to them tiations, as well as the recognition of self such time as I may consume. by the Constitution. We are going off the right to associate and participate Mr. Speaker, I commend the gen- on another trade agreement here. In in labor unions. Morocco made anti- tleman from New York (Mr. CROWLEY) Ohio, we just lost 14,000 more jobs just union and other forms of discrimina- for his outstanding commitment in in the month of June. The unemploy- tion illegal, providing strong penalties this effort to advance our free trade re- ment rate in Ohio went from 5.6 per- against such conduct, creating a legal lations and to advance the civilized cent to 5.8 percent. What are the prior- obligation to engage in collective bar- values that free trade causes. He has ities of this Congress? gaining. done outstanding work in that effort, In every single trade agreement that And yes, Mr. Speaker, let me also say and I commend him. I thank his col- has been passed by this Congress, there that this particular treaty also recog- leagues on his side of the aisle for their has been a promise that has been made nizes in the fight against HIV/AIDS strong bipartisan support on this im- along with it. We say we are going to that we have the ability for the govern- portant bill. open up markets, we are going to ex- ment of Morocco to buy generic drugs. Mr. Speaker, the administration port, and we are going to trade. And as I would hope as we look at treaties, as strongly supports H.R. 4842, which will we get rid of those low-paying jobs, we we look at labor agreements that deal approve and implement the U.S.-Mo- are going to invest in education, we are in trade, as we look at formulating rocco Free Trade Agreement, as signed going to make sure our country is com- trade agreements in the future, Mo- by the United States and Morocco on petitive, and we are not living up to rocco as a developing nation is a very June 15, 2004. that part of the bargain. good standard by which to answer the The U.S.-Morocco FTA advances U.S. We have 59,000 engineers which grad- Members’ questions about the sizable economic interests and meets the nego- uated from this country in 2001, and loss of manufacturing jobs and other tiating principles and objectives set over 200,000 that graduated from China. jobs around America. I too believe that out by the Congress in the Trade Act of If we do not fix the problem we have we need job creation, the creation of 2002. The FTA will benefit the people of with our Pell Grants, our student manufacturing jobs, and we need to in- loans, No Child Left Behind in the the United States and Morocco and il- vest in the workforce of America. lustrate to other developing countries State of Ohio alone is underfunded for I believe that this strong trade agree- the advantages of more open markets $1.5 billion for one school year, we can- ment will allow us to show the people for trade and investment. not keep trading and not educating. of Morocco how to develop their eco- The FTA provides for increased ac- That is the problem with these trade nomic infrastructure, to be the con- cess for American farmers, workers and agreements. If we are going to compete sumers of our products here in the businesses to Morocco’s markets. Pur- in a global economy, we have to invest United States as we improve our trade suant to the agreement, Morocco will in our students or we are going to lose to balance with them. We want to de- the middle class in the United States of provide strong protection for intellec- crease the trade imbalance and in- America. tual property, ensure that rules on crease the amount of exports to Mo- Mr. CRANE. Mr. Speaker, I reserve electronic commerce are nondiscrim- the balance of my time. rocco and help it to become an eco- inatory, and provide U.S. firms access Mr. LEVIN. Mr. Speaker, I yield 3 nomic engine that will receive our to covered government procurement minutes to the distinguished gentle- products from the United States. When opportunities on the same basis that woman from Texas (Ms. JACKSON-LEE). that occurs, I am prepared to support a Moroccan firms enjoy. Ms. JACKSON-LEE of Texas. Mr. trade agreement such as this, and I rise The U.S.-Morocco FTA provides a Speaker, I thank the gentleman from to support the Morocco trade agree- significant opportunity to encourage Michigan for yielding me this time. ment. economic reform and development in a Mr. Speaker, I listened to the debate Mr. Speaker, I rise today to support H.R. moderate Muslim nation and is an im- and I fully agree with Members from 4842, the ‘‘United States-Morocco Free Trade portant step in implementing the States like Ohio that have been dev- Agreement Implementation Act.’’ Mr. Speaker, President’s plan for a broader U.S.- astatingly impacted by trade bills that having traveled to Africa, I have seen the Middle East Free Trade Area. It also have not worked. value when U.S. trade markets are opened to sets a strong example of the benefits of It is unusual for me to extend myself this part of the world. Morocco is an important open trade and democracy. Opening on trade bills and provide my support, ally in a region that needs our support. I sup- markets is part of the President’s six- but as I have looked at this particular port the long-term goal of increasing free trade point plan for continuing to strengthen trade bill let me congratulate the ne- with Africa and its surrounding neighbors. This America’s economy and to create more gotiators. They have gone more than legislation will build stronger and more effec- opportunities for American farmers, the extra mile. I have always said that tive commercial relationships in a region of the workers and businesses. where we can help developing nations, world where economic hope is unfortunately Mr. Speaker, I reserve the balance of and particularly those in Africa that I non-existent, developing nations like Morocco my time. have worked with over the time of my need our partnership. Mr. BROWN of Ohio. Mr. Speaker, I years in Congress, this is an important Mr. Speaker, one of my strong issues is the yield 2 minutes to the gentleman from step we are making. worldwide fight against the deadly pandemic: Ohio (Mr. RYAN). I cite in this trade bill some very in- the HIV/AIDS virus. In August of 2003, the Mr. RYAN of Ohio. Mr. Speaker, I teresting factors. First of all, I am U.S. led the work towards a WTO consensus thank the gentleman for yielding me gratified there are no immigration as- that allows poor countries without domestic this time. pects to this bill because I oppose de- drug production capacity to issue compulsory A couple of points I would like to finitively any immigration issues on licenses to import drugs needed to combat make as we are having this debate. this bill because the immigration sys- diseases such as HIV/AIDS, malaria, tuber- One, we hear that there currently is a tem in this Nation is broken and we culosis and other infectious epidemics. The trade surplus with Morocco, but we must fix it in a way that is fair and Morocco FTA will not affect that country’s abil- have to look back just a few years and balanced to all those who come to this ity to take measures necessary to protect pub- remember that we had a trade surplus country to seek opportunity. lic health or to use the WTO solution to import

VerDate jul 14 2003 23:57 Jul 23, 2004 Jkt 029060 PO 00000 Frm 00026 Fmt 4634 Sfmt 9920 E:\CR\FM\K22JY7.120 H22PT2 July 22, 2004 CONGRESSIONAL RECORD — HOUSE H6641 drugs. This agreement ensures that govern- U.S. investors in Morocco a basic set of sub- much they have skyrocketed in the 3 ment marketing-approval agencies will not stantive protections that Moroccan investors in years since President Bush has, I was grant approval to patent-infringing pharma- the United States currently enjoy under the going to say turned a blind eye to drug ceuticals. U.S. legal system. industry abuses but really actually As far as the agreement is concerned, Mo- This agreement fully meets the labor objec- fronted for and assisted in drug indus- rocco has agreed to establish tariff-rate quotas tives set out by the Congress in TPA. Labor try abuses. for beef that grow over time, providing signifi- obligations are part of the core text of the One more example of that is all of cantly increased access to the important mar- Agreement. Each government reaffirms its ob- these trade agreements, what happened ket in high-quality beef. In this respect, the ligations as members of the International with the Australia Free Trade Agree- U.S. will have superior access over the Euro- Labor Organization (ILO), and commits to ment, how it would for all intents and pean Union, and virtually every one else, as strive to ensure that its domestic laws provide purposes block reimportation, that is, well. This legislation levels the playing field for labor standards consistent with internation- our ability, American consumers’ abil- between U.S. wheat producers and the EU, ally recognized labor principles. The Agree- ity to buy prescription drugs from an- though the transition to parity is longer than I ment makes clear that it is inappropriate to other country, to get drugs at half or a prefer. weaken or reduce domestic labor protections third or a fourth of their price. We are We should welcome Morocco into the larger to encourage trade or investment. now seeing the same in the Morocco network of U.S. free trade partners. The Each government will be required to effec- bill. Agreement provides benefits for businesses tively enforce its own domestic labor laws, and But let us kind of scratch the surface wishing to supply services cross-border (for in- this obligation is enforceable through the a little and what you will find, Mr. stance, by electronic means) as well as busi- Agreement’s dispute settlement procedures. Speaker, is in April, United States nesses wishing to establish a presence locally Procedural guarantees in the Agreement re- Trade Rep, Ambassador Zoellick, gave in the other country. Strong and detailed dis- quire each government to provide access for Assistant U.S. Trade Representative ciplines on regulatory transparency supple- workers and employers to fair, equitable and for Southeast Asian public affairs, ment the Agreement’s cross-cutting trans- transparent labor tribunals or courts. Ralph Ives, additional responsibilities parency provisions. The Agreement includes a cooperative as the Assistant U.S. Trade Rep for In this agreement, Morocco will allow U.S.- mechanism to promote respect for the prin- pharmaceutical policy. He was the based firms to supply insurance on a cross- ciples embodied in the ILO Declaration on chief negotiator in the Australia FTA, border basis (through electronic means) for Fundamental Principles and Rights at Work, which included these provisions we key markets including reinsurance, reinsur- and compliance with ILO Convention 182 on talked about which, of course, benefit ance brokerage, and, subject to a two-year the Worst Forms of Child Labor. the pharmaceutical industry. phase-in, marine, aviation and transport (MAT) In closing, I support the Moroccan Free Now, Mr. Speaker, we hear that this insurance and brokerage. Morocco also will Trade Agreement. same Mr. Ives, who I said was the chief Australia FTA negotiator on pharma- allow U.S.-based firms to offer services cross- b 1745 border to Moroccans in areas such as finan- ceutical interests on behalf of the Bush cial information and data processing, and fi- Mr. BROWN of Ohio. Mr. Speaker, I administration, we find out next nancial advisory services. yield myself the balance of my time. month he will leave USTR to become Of further benefit to U.S. insurance sup- Mr. Speaker, one of the things I have vice president of AdvaMed, a medical pliers, Morocco will phase-out certain manda- noticed in these debates on these trade supply company. We have also learned tory reinsurance cessions and expedite the in- issues is there is one common thread. that Claude Burke, another negotiator troduction of insurance products. Each govern- There are many, but there is one really for U.S. taxpayers, paid by our government commits that users of the telecom net- thick common thread that is woven ment, a Bush appointee for intellectual work will have reasonable and nondiscrim- through all these trade agreements, in property rights, has already left and inatory access to the network, thereby pre- not just these trade agreements but now is working for another drug com- venting local firms from having preferential or that is perhaps woven through much of pany, working for Abbott Labs. ‘‘first right’’ of access to telecom networks. what this Congress has done in the last So this revolving door of the drug in- U.S. phone companies will have the right to 3 years, during the Bush years, and dustry where the drug industry gives interconnect will former monopoly networks in that is whatever the drug industry money to President Bush, President Morocco at non-discriminatory, cost-based wants, whatever the pharmaceutical Bush then helps the drug industry, rates. U.S. firms seeking to build a physical companies want. then these people who are working for network in Morocco will have non-discrimina- We know the drug industry is the taxpayers negotiate a good deal for the tory access to key facilities, such as telephone most profitable industry in America by drug company, then leave and come switches and submarine cable landing sta- a factor of three or four times in profit- back and work for the drug industry. Is tions. ability over other Fortune 500 indus- there no shame with this crowd, with This agreement is important because Mo- tries. We also know the drug industry my Republican friends who have front- rocco is an emerging market at the crossroads has 600-plus lobbyists, more than one ed for this drug industry that is fleec- of Europe, Africa, and the Middle East. It im- per Member. We also know the drug in- ing the American public and with the ports $11 billion in products each year. Cur- dustry has given more money to Presi- administration? That is one issue. rently, U.S. products entering Morocco face an dent Bush, tens of millions of dollars, The other, Mr. Speaker, is why do we average tariff of more than 20 percent, while and to Republican leadership than any pass a trade agreement when we see Moroccan products are only subject to an av- other industry. And we know they have the same story repeated over and over erage 4 percent duty in the United States. gotten their way. and over? We just turn the calendar Each government will prohibit bribery, in- They wrote the Medicare bill, we back, rewind the clock, and we see it cluding bribery of foreign United States offi- know that, with the insurance indus- over and over again. We see speaker cials, and establish appropriate criminal pen- try. We know they have begun to try to after speaker come to this floor and alties to punish violators. This Agreement es- dry up drug supplies in Canada, pre- make all kinds of promises. We have a tablishes a secure, predictable legal frame- scription drugs, so that Americans trade surplus in Morocco, so we ought work for U.S. investors operating in Morocco. have more difficulty going to Canada to pass a trade agreement. Just like we All forms of investment will be protected to get drugs. We know that the FDA, had a trade surplus with Mexico, we under the Agreement, such as enterprises, once one of the best agencies in the passed NAFTA; and now we have a $25 debt, concessions, contracts and intellectual Federal Government, has been co-opted billion a year, plus-plus-plus, trade def- property. U.S. investors will enjoy in almost all by the drug industry so that on issue icit. circumstances the right to establish, acquire after issue they take the drug indus- They promise more agricultural ex- and operate investments in Morocco on an try’s side rather than the public safety ports. They promise more American equal footing with Moroccan investors, and or the consumers’ side. And most im- jobs. They promise more business for with investors of other countries. portantly, I do not know that Members American companies. They promise Pursuant to the Trade Promotion Authority on the other side of the aisle are quite more exports of American products. Act of 2002 (TPA), the Agreement draws from aware of this, but certainly the public But look what happens. In my State in U.S. Legal principles and practices to provide is aware at how high drug prices, how the last 3 years, we have lost one out of

VerDate jul 14 2003 23:57 Jul 23, 2004 Jkt 029060 PO 00000 Frm 00027 Fmt 4634 Sfmt 0634 E:\CR\FM\A22JY7.123 H22PT2 H6642 CONGRESSIONAL RECORD — HOUSE July 22, 2004 six manufacturing jobs. Does that that this will pass with bipartisan sup- talk to you about the pharmaceutical provi- mean these trade agreements with port. Not complete. But I want it clear sions in the Free Trade Agreement, and Mexico, with WTO in China, with Mo- that there has been these last 3 years about how the Government of Morocco is rocco, with Australia, with Chile, with no basic bipartisan consensus on trade. meeting the health needs of its citizens. Singapore, does that mean these trade The Government of Morocco has a well-de- That has been true of the big issues. veloped health system, including a com- agreements are working? There is no We fought out TPA here, and it passed prehensive public health program. For exam- evidence that they are working. We narrowly. CAFTA was negotiated on a ple, free medical care, including medicines, continue to hemorrhage jobs. We now narrow basis without adequate bipar- is available through our hospitals. Morocco’s have a $450 billion trade deficit, $1.5 tisan participation. The same has been health care policy includes a strong empha- billion trade deficit every day. So our true today of the FTAA. sis on generic drugs. answer is, boy, let’s do more of the The failure of this administration to Morocco has not needed to engage in emer- same because that must be working. build a bipartisan consensus, a strong gency measures such as compulsory licens- It is clearly not working. We have bipartisan foundation, to renew that ing or parallel imports. In fact, there is a well-developed domestic pharmaceutical in- lost jobs during the Bush administra- foundation that once existed here, I tion, the first President since Herbert dustry in Morocco, producing also generics, think, has handicapped discussions and in 2000, well in advance of the Free Trade Hoover to have a net loss of jobs. So within the WTO. We cannot make the Agreement and completely independent of it, what are we going to do? We are going tough decisions relating to negotia- Morocco decided to bar parallel imports. to keep pursuing the same economic tions in the WTO that affect American In addition, as a separate, but quite impor- policy we have had the last 3 years, workers, businesses, farmers and oth- tant matter, the Government of Morocco is more tax cuts for the most privileged ers except on the basis of a strong bi- strongly committed to and has agreed to the people in society, maybe some of it will partisan foundation. We do not have it. highest-standard intellectual property rights trickle down into economic growth. provisions in the Free Trade Agreement. The Secondly, we on the Democratic side Government of Morocco believes that effec- Clearly that has not worked. More together, all of us, reject the use of one trade agreements, like Morocco, like tive intellectual property right protection agreement as a model for others. For will play a vital role in the continued eco- Australia, like NAFTA, like China, example, we have discussed core labor nomic development of our country. more trade agreements. That has not standards. Where labor laws in a coun- The pharmaceutical provisions in the Free worked because we continue to hemor- try are essentially adequate, as was Trade Agreement were carefully considered rhage jobs. We continue to ship jobs true of Jordan, the standard enforce- in Morocco. They were discussed in detail overseas. your-own-laws, which was the basic with all parties. All sectors of our health Maybe, just maybe, Mr. Speaker, standard in Jordan, can work; but it system were involved, including the pharmaceutical industry. The discussions also in- since none of that seems to have will not work in cases where laws are worked, maybe we ought to try some- cluded the members of the civil society in very inadequate. So that is why we Morocco. thing different. Maybe we ought to Dems essentially in unison reject the have a trade agreement that does not The Government of Morocco achieved in CAFTA that was negotiated. We sup- this agreement full flexibility to meet our sell out to the drug industry. Maybe we port a Central American Free Trade nation’s health concerns. In particular, the ought to have a trade agreement with Agreement, but one that is different Government of Morocco believes the agree- enforceable labor and environmental than was negotiated. ment fully preserves its right to issue a com- standards, international labor organi- So the basic issue, therefore, is not, pulsory license in the event that this should zation standards. Maybe we ought to prove necessary. as some in the majority have stated, have a trade agreement that puts The Agreement does bar ‘‘parallel im- whether one is for or against free American workers first, that puts the ports’’ in 1.5.9.4. However, as described trade, for or against expanded trade. It environment first, that puts food safe- above, the Government of Morocco already is whether the terms of expanded trade ty first, that puts American consumers bans ‘‘parallel imports.’’ In addition, the will be shaped to benefit all and not Government of Morocco believes that in the of prescription drugs first. Maybe, just just a few. We do not assume that ex- event that it faced a situation where ex- maybe, we ought to put a hold on these panded trade is automatically positive traordinary action was required, it could trade agreements that continue to ship all around. meet the needs of its people through a com- jobs overseas and, instead, pass some- That is why when this agreement pulsory license. thing that works for American con- The Government of Morocco considered came up, we raised two issues. One of sumers, that works for American work- carefully the data exclusivity provisions in them related to core labor standards. ers, that works for our communities, the agreement. We do not believe that they There was reform. We wanted to know and that works for the United States of present any risk to our ability to meet the America. the facts about those reforms. We health needs of our citizens. Mr. Speaker, I yield back the balance wanted to know the realities within Under the Agreement, a compulsory license does not override obligations to pro- of my time. Morocco. We wanted to know whether it was more or less like Jordan and not vide data exclusivity under 15.10.1 and 2. The Mr. LEVIN. Mr. Speaker, I yield my- Government of Morocco believes it is un- self the balance of my time. more or less like Central America. And so we dug into the facts. We likely that a situation would ever arise When we discussed the rule, I went where data exclusivity would be a barrier to over some of the benefits of this agree- made it clear to the Moroccan govern- the issuance of a compulsory license. If such ment, those relating to manufacturing ment that we cared, and I must say I an event did occur, the Government of Mo- goods, and we have been deeply hurt in think it is because Democrats have rocco believes that an accommodation could the manufacturing area in the United been raising these issues perhaps more be reached with the owner of the data. States these last 3 years. This agree- than any other factor that the Moroc- The Government of Morocco supports the ment should open up Morocco to more can government undertook some re- Paragraph 6 solution of the Doha Declara- goods made in America. I referred to forms, and we received back a commu- tion. The Free Trade Agreement does not re- nication from the government of Mo- strict our ability to export under the Para- the agricultural area. This agreement graph 6 solution of the Doha Declaration. To does open up the Moroccan market to rocco. I submit for printing in the the specific, 15.9.6 does not create a barrier agricultural goods produced in the RECORD the letter that was sent to us to exports under the Paragraph 6 solution of United States of America. It will also and the three other letters referred to the Doha Declaration. liberalize the service areas that are im- during the debate on the rule. The June 15, 2004 side letter between our portant for our development. And there The material referred to is as follows: two countries addresses the ability to amend is reference to intellectual property EMBASSY OF THE the Free Trade Agreement, responsive to safeguards. KINGDOM OF MOROCCO, amendments to the WTO Agreement on I want to spend a few minutes now Washington, DC, July 19, 2004. Trade-Related Aspects of Intellectual Prop- talking about the broader perspective HON. SANDY LEVIN, erty Rights. Under the Agreement, the Gov- Rayburn House Office Building, ernment of Morocco believes it can consult here, the perspective, I think, with House of Representatives. immediately to amend the Agreement re- which we must look at trade agree- DEAR REPRESENTATIVE LEVIN: I deeply ap- sponsive to any WTO amendments. Under ments and expanded trade. preciate the opportunity to work with you the Agreement, it is not required to wait for First, there has been some reference on the U.S.-Morocco Free Trade Agreement. there to be an application in dispute of the here to bipartisanship, and it is true In particular, I appreciate the opportunity to Agreement.

VerDate jul 14 2003 23:57 Jul 23, 2004 Jkt 029060 PO 00000 Frm 00028 Fmt 4634 Sfmt 0634 E:\CR\FM\K22JY7.126 H22PT2 July 22, 2004 CONGRESSIONAL RECORD — HOUSE H6643 I look forward to keep working with you. trade agreements (FTAs) that could affect Which country sought inclusion of this Sincerely, the availability of affordable drugs in devel- provision? AZIZ MEKOUAR, oping countries. In particular, we are con- If Morocco or the United States eliminated Ambassador. cerned about the impact of restrictions on the exclusive right of a patent holder to im- parallel imports and about marketing exclu- port a patented product, would either be in EMBASSY OF THE sivity requirements for pharmaceuticals in- violation of Article 15.9.4? KINGDOM OF MOROCCO, cluded in the Morocco FTA. Our concern re- MARKET EXCLUSIVITY AND RELATED Washington, DC, July 14, 2004. lates to two points. PROVISIONS Hon. SANDY LEVIN, First, it appears that some of the provi- Article 15.10.1 of the U.S.-Morocco FTA re- Rayburn House Office Building, sions contradict, both explicitly and in spir- quires that both countries prevent the use of Washington, DC. it, commitments made by the United States data submitted to support an application for DEAR CONGRESSMAN LEVIN: I have deeply in the World Trade Organization in both the marketing approval (e.g., approval from the appreciated the continuing opportunity to November 2001 Declaration on the TRIPS Food and Drug Administration (FDA)) for a work with you on the U.S. Morocco Free Agreement and Public Health (the Doha Dec- new pharmaceutical chemical product with- Trade Agreement. In particular, I welcome laration) and the September 2003 Implemen- out the consent of the person submitting your interest in our nation’s labor law, spe- tation of Paragraph 6 of the Doha Declara- such data, for a period of five years from the cifically the comprehensive reforms, passed tion on the TRIPS Agreement and Public date of approval. In layman’s terms, this last year. Health (the Paragraph 6 Decision). Section means that if a company submits data to I want to address through this letter some 2101(b)(4)(C) of the Trade Act of 2002 (Trade meet FDA-type safety and efficacy stand- of the issues that have been highlighted in Promotion Authority or TPA) directs the ards, and obtains marketing approval based conversations with you and your staff. Under Administration to respect the Doha Declara- on that data, other companies cannot obtain Moroccan law, it is illegal to fire an indi- tion, necessarily including subsequent agree- regulatory approval based on those data for vidual because they are a member of a labor ments related to that Declaration. five years. Given the cost of generating such organization or have engaged in labor orga- Second, we are concerned that the FTA’s data, this provision operates effectively as a nizing. To fire someone on these grounds restrictions on obtaining regulatory ap- grant of market exclusivity in virtually all would be arbitrary under the 2003 law and proval for drugs, including drugs that are al- cases, including in cases where the drug is would make available the full remedies pro- ready off-patent, are likely to increase prices off patent. Article 15.10.2 appears to allow an vided under that law. in the Moroccan market. These restrictions, additional three years of marketing exclu- Under Moroccan law, it is illegal to refuse described below, could undermine the avail- sivity for new uses of an already-approved to hire an individual because they are a ability of generic versions of drugs to treat pharmaceutical product. Article 15.10.3 remember of a labor organization or have en- serious health problems, including HIV/ADS, quires both countries to extend patents gaged in labor organizing. It is also illegal to that are widespread in many, if not most, de- where there is a delay in the marketing ap- refuse to rehire or extend the contract of an veloping countries. Moreover, any increase proval process. individual for these reasons. in the price of drugs in a developing country The provisions described above appear to Section 473 is a provision in the 2003 Labor like Morocco will be borne by consumers be- be based on 1984 amendments to U.S. law Law and the provision’s intent is to ensure cause most developing countries have large known as the Hatch-Waxman Act. The objec- that labor representatives do not undermine rural, uninsured, and poor populations who tives of the Hatch-Waxman Act were to ac- the traditional labor organizations. The gov- pay out-of-pocket for drugs. celerate and increase the availability of ge- ernment intends to implement this provision In discussions with your staff and in recent neric drugs in the United States while bal- to achieve that goal, consistent with the testimony before the Committee on Ways ancing the need for continued investment in new drugs. As you are aware, the Hatch-Wax- core provisions of the ILO. and Means, we understand that your office is The right to strike is protected in the Mo- of the view that the FTA does not interfere man Act was necessary because prior to 1984, roccan constitution. Further clarification of with a country’s efforts to ensure broader ac- U.S. law made it extremely difficult and ex- pensive to bring a generic version of a phar- these rights is underway. The government of cess to medicines. We request that you ex- maceutical product to market, even after a Morocco is committed to protecting the plain that view to us in writing, and in par- patent expired. This was because prior to the right to strike in conformance with the ticular, by responding to the questions out- 1984 changes, a company seeking marketing International Labor Organization’s core lined below. We have focused on Chapter 15 approval for a copy of an already-approved principles. In particular, the government of of the U.S.-Morocco FTA, because it may be considered by Congress in the coming weeks. drug had to generate its own data to support Morocco will not use Article 288 of our penal its FDA application. The cost of generating RESTRICTIONS ON PARALLEL IMPORTATION code against lawful strikers. those data effectively precluded second en- Concerning the questions regarding Labor Article 15.9.4 of the U.S.-Morocco FTA re- trants from entering the market. (First en- Representatives, employers have the obliga- quires both countries to recognize the exclu- trants were able to offset the cost for generation to organize the elections for the labor sive right of a patent holder to import a pat- tion of the data because they enjoyed patent representatives. Employers cannot vote in ented product, at least where the patent protection.) The Hatch-Waxman Act allowed these elections and are not able to choose holder has restricted the right to import by second entrants to rely on data submitted by labor representatives. Only employees can contractual means. In practical terms, this first entrants, thereby reducing costs and vote and elect freely the labor representa- provision means that neither Morocco, nor speeding introduction of generic versions of tives. for that matter, the United States, may drugs to the U.S. market. In exchange for al- Employees can join freely the Union of allow parallel imports of patented pharma- lowing second entrants to ‘‘piggy-back’’ off their own choice. Unions designate their rep- ceutical products from the other country, or first entrants, first entrants were given a pe- resentatives within the companies. where a national of the other country owns riod of market exclusivity, even for drugs On the ILO involvement, Morocco has al- the patent. that are off-patent. ways worked with ILO. For instance, ILO as- With respect to Morocco, which is a devel- The Hatch-Waxman Act’s provisions on sisted Morocco to write the Labor Code of oping country, this provision appears to market exclusivity were part of a com- 2003 and the new law on child labor. Morocco, limit one of the flexibilities identified in the promise necessary to ensure that the U.S. as in the past, will continue to ask the sup- Doha Declaration for increasing access to regulatory structure was updated to facili- port of ILO and work with this organization medicines, and accordingly, it appears to tate the entry of generic drugs into the U.S. in all labor issues such as new laws and will contradict the direction in section market. Most developing countries already ask its help in providing assistance for the 2102(b)(4)(c) of TPA. Specifically, the Doha have robust generic markets, in large part implementation of the current rules. Declaration reaffirmed that the TRIPS because they already allow producers of ge- I look forward to continuing to work with Agreement provides flexibility for WTO neric versions of drugs to obtain regulatory you on these issues and any others of poten- Members to take measures to protect public approval based on data submitted by first ap- tial concern. Nevertheless, I wanted to get health, including ‘‘promot[ing] access to plicants or based on prior approval. In light back to you in a timely manner on the key medicines for all.’’ One of the key flexibili- of that fact, and given that innovative drug issues addressed in this letter. ties identified in the Doha Declaration is the companies largely develop drugs for devel- Sincerely, right of each country to determine for itself oped country markets and conduct the nec- AZIZ MEKOUAR, whether to allow parallel imports. essary tests to get marketing approval in Ambassador. Does Article 15.9.4 of the Morocco FTA pre- those markets regardless of whether they are vent Morocco from allowing parallel imports given market exclusivity in low-income de- CONGRESS OF THE UNITED STATES, of a patented pharmaceutical product? veloping countries, what is the rationale for HOUSE OF REPRESENTATIVES, Given that the Doha Declaration explicitly including these provisions? Washington, DC, July 15, 2004. confirms the right of each country to retain Please describe the circumstances under Hon. ROBERT B. ZOELLICK, flexibility in allowing parallel imports of which the three additional years of mar- U.S. Trade Representative, drugs as one way of meeting the public keting exclusivity described in Article 15.10.2 Washington, DC. health needs of its citizens, please explain would apply. DEAR AMBASSADOR ZOELLICK: We are writ- why the provision was included given that Neither Article 15.10.1 or 15.10.2 on mar- ing to express our ongoing concern about TPA directs the Administration to respect keting exclusivity appear to allow for reli- sections of recently negotiated U.S. free the Doha Declaration? ance on previously submitted data or prior

VerDate jul 14 2003 23:57 Jul 23, 2004 Jkt 029060 PO 00000 Frm 00029 Fmt 4634 Sfmt 0634 E:\CR\FM\A22JY7.091 H22PT2 H6644 CONGRESSIONAL RECORD — HOUSE July 22, 2004 approval during the period of market exclu- quirements.’’ This provision appears to pre- willing to engage in an exchange of letters sivity absent consent of the first applicant. clude Morocco from exporting generic with the Government of Morocco memori- The Doha Declaration reaffirmed the right of versions of patented pharmaceutical prod- alizing such an understanding? countries to use flexibilities under the ucts for any reason other than use in obtain- We appreciate your prompt response to TRIPS Agreement, such as compulsory li- ing marketing approval because that is the these questions. censes. A compulsory license allows someone only exception noted. Sincerely, other than the patent holder to produce and If that is the case, the provision would CHARLES B. RANGEL, sell a drug under patent. It is not clear to us seem to curtail Morocco’s ability to act as Ranking Democrat, why the grant of a compulsory license would an exporter of pharmaceutical products to Committee on Ways override a grant of market exclusivity, as least-developed and other countries under and Means. provided in Articles 15.10.1 and 15.10.02. (We the Paragraph 6 Decision. Specifically, the JIM MCDERMOTT, note that there is no exception to protect Paragraph 6 Decision allows countries to ex- Member, Committee on the public.) Please describe how the market port drugs produced under a compulsory li- Ways and Means. exclusivity provisions in Article 15.10.1 and cense to least-developed countries or to SANDER LEVIN Article 15.10.2 relate to Morocco’s ability to countries that lack pharmaceutical manu- Ranking Democrat, issue a compulsory license. facturing capabilities. Were the provisions to Subcommittee on Where a compulsory license has been constrain Morocco’s ability to export under Trade, Committee on issued, may a Party automatically deem the Paragraph 6 Decision, the United States Ways and Means. that the first applicant has consented to reli- could be accused of backtracking on commit- HENRY A. WAXMAN, ance on the data or prior approval for the ments that have been made. Ranking Democrat, drug produced under the compulsory license? Please explain whether this Article pro- Committee on Gov- If the patent and test-data were owned by hibits Morocco from allowing the export of ernment Reform. different entities, does a compulsory license generic versions of patented pharmaceutical result in legal ‘‘consent’’ by both the patent products for purposes other than ‘‘meeting EXECUTIVE OFFICE OF THE PRESI- holder and the data owner for use of the pat- market approval requirements.’’ If it does DENT, OFFICE OF THE UNITED ented material and the test data? not, please explain in detail how you came to STATES TRADE REPRESENTATIVE, When the drug is off patent, and a Party that conclusion. Washington, DC, July 19, 2004. wishes to permit marketing for a second en- If this provision does in fact limit Moroc- Hon. SANDER M. LEVIN, trant, what mechanism exists in the FTA to co’s ability to allow the export of generic House of Representatives, allow for an exception to the provisions on versions of patented pharmaceutical prod- Washington, DC. market exclusivity? ucts, please explain how Morocco could serve DEAR CONGRESSMAN LEVIN: Thank you for Is a grant of market exclusivity pursuant as an exporting country to help least-devel- your letter of July 15, 2004, regarding certain to Articles 15.10.1 and 15.10.2 considered an oped and other countries address public provisions of the intellectual property chap- ‘‘investment’’ with respect to Chapter 10 of health needs under the Paragraph 6 Decision. ter of the U.S.-Morocco Free Trade Agree- the agreement? If so, would an abridgement (Exporters under the Paragraph 6 Decision ment (FTA). of the period of market exclusivity con- are exporting to meet the health needs of an I have addressed each of your specific ques- stitute a compensable expropriation under importing country, not merely to obtain tions below. As a general matter, for the rea- Chapter 10? marketing approval.) sons also set forth below, the FTA does not Article 10.6.5 of the FTA appears to clarify Does Article 15.9.6 allow export of a generic conflict with the Doha Declaration on the that any act of patent infringement carried version of a patented drug to get marketing TRIPS Agreement and Public Health or oth- out by a Party in the issuance of a compul- approval in a third country (i.e., other than erwise adversely, affect access to medicines sory license in accordance with the TRIPS the United States or Morocco)? (Article 15.9.6 in Morocco. The FTA does not require Mo- does not constitute a compensable expropria- states that ‘‘the Party shall provide that the rocco to change its policies with respect to tion. Issuance of a compulsory license, how- product shall only be exported outside its any of the flexibilities noted in the Doha ever, is only one aspect of the process of get- territory for purposes of meeting marketing Declaration. Furthermore, we believe that this FTA can advance Morocco’s ability to ting a drug to market. Does the clarification approval requirements of that Party.’’) in Article 10.6.5 also ensure that other meas- address public health problems, both by put- SIDE LETTER TO THE AGREEMENT ting in place incentives to develop and bring ures taken by a government to ensure that a The Morocco FTA includes an exchange of new medicines to market quickly and by drug on which a compulsory license has been letters dated June 15, 2004, between the Gov- raising standards of living more broadly. issued can be lawfully marketed (e.g., a ernments of Morocco and the United States. The experience of Jordan under the U.S.- grant of marketing approval to a generic or The letters appear intended to clarify the re- Jordan FTA is illuminating. The United second producer before the period of mar- lationship between the intellectual property States and Jordan signed the FTA in 2000, keting exclusivity has expired) will not con- provisions of the FTA and the ability of Mo- during the prior Administration, and we stitute compensable expropriations? If not, rocco and the United States to take meas- worked with Congress to enact that agree- is there another provision in the agreement ures to protect the public health. ment in 2001. The U.S.-Jordan FTA contains that would ensure that such measures do not The letters address two issues. First, the a strong intellectual property chapter that constitute expropriations? letters state that the intellectual property covers, for example, data protection, one of Article 15.10.3 requires that a patent term provisions in the FTA ‘‘do not prevent the the issues highlighted in your letter. Jordan be extended where there is a delay in the reg- effective utilization’’ of the Paragraph 6 De- has witnessed a substantial increase in phar- ulatory approval process. The provision does cision. Second, the letters state that if the maceutical investment, creating new jobs not state whether delays attributable to the TRIPS Agreement is amended on issues re- and opportunities. In addition, Jordan has applicant (e.g., failure to provide adequate lated to promotion of access to medicines, approved 32 new innovative medicines since data) mitigate against extension. Article and that either the United States or Morocco 2000—a substantial increase in the rate of ap- 15.9.8, the comparable provision for extension takes action in conformity with such amend- proval of innovative drugs, helping facilitate of a patent term because of a delay in the ments, both countries will ‘‘immediately Jordanian consumers’ access to medicines. patent approval process, makes clear that consult in order to adapt [the intellectual The Jordanian drug industry has even begun delays attributable to the patent applicant property provisions of the FTA] as appro- to develop its own innovative medicines. should not be considered in determining priate in light of the amendment.’’ This is an example of how strong intellectual whether there is a delay that gives rise to On the Paragraph 6 Decision, please ex- property protection can bring substantial the need for an extension. Why was similar plain how the statement that the FTA does benefits to developing and developed coun- language not included in Article 15.10.3? not ‘‘prevent the effective utilization’’ is not tries together. Is Morocco, or for that matter the United merely rhetorical. Please be specific as to Your specific questions with respect to the States, required by the FTA to extend a pat- why you believe the provisions in the FTA U.S.-Morocco FTA are addressed below. ent term where there is a delay in the regu- do not preclude Morocco from acting as an PARALLEL IMPORTATION latory approval that is attributable to the importer or exporter of drugs under the 1. Does Article 15.9.4 of the Morocco FTA applicant? Paragraph 6 Decision, including how the prevent Morocco from allowing parallel im- BOLAR-TYPE PROVISIONS THAT LIMIT EXPORT FTA’s provisions related to market exclu- ports of a patented pharmaceutical product? Article 15.9.6 of the U.S.-Morocco FTA ap- sivity can be waived if Morocco acts in ei- Article 15.9.4 of the FTA reflects current pears to allow a person other than a patent ther capacity. Moroccan law and therefore does not require holder to make use of a patent in order to On the issue of consultation, do the letters Morocco to do anything it does not already generate data in support of an application mean that both Parties agree to amend the do. The FTA also reflects existing U.S. law. for marketing approval of a pharmaceutical FTA as soon as possible to reflect access to Both Morocco and the United States already product (e.g., approval from the FDA). How- medicines amendments to the TRIPS Agree- provide patent owners with an exclusive ever, Article 15.9.6 also states that if expor- ment? Will the United States refrain from right to import patented products, including tation of the product using the patent is al- enforcing provisions of the FTA that con- pharmaceuticals but also all other types of lowed, exportation must be limited to ‘‘pur- travene the TRIPS Agreement amendments patented products. Many innovative indus- poses of meeting marketing approval re- while the FTA is being amended? Is USTR tries and their employees in the United

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States—from the high tech and pharma- MARKET EXCLUSIVITY proval for the drug in Morocco. Without data ceuticals sectors to sectors covering chemi- 5. The Hatch-Waxman Act’s provisions on protection, innovative producers will be less cals and agricultural inputs, and on to engi- market exclusivity were part of a com- likely to enter the Moroccan market in the neering and manufacturing—benefit from promise necessary to ensure that the U.S. first place because, once they obtain ap- this long-standing protection in U.S. patent regulatory structure was updated to facili- proval, generic producers may capture most law. tate the entry of generic drugs into the U.S. of the market. The data exclusivity provi- 2. Given that the Doha Declaration explic- market. Most developing countries already sions of the FTA can thus provide an impor- itly confirms the right of each country to re- have robust generic markets, in large part tant incentive for innovators to enter the tain flexibility in allowing parallel imports because they already allow producers of ge- market, which may in turn expand the po- of drugs as one way of meeting the public neric versions of drugs to obtain regulatory tential universe of generic drugs in Morocco. health needs of its citizens, please explain approval based on data submitted by first ap- As noted above, this is the development we why the provision was included given that plicants or based on prior approval. In light are seeing in Jordan, to the benefit of Jordan TPA directs the Administration to respect of that fact, and given that innovative drug consumers. the Doha Declaration? companies largely develop drugs for devel- 6. Please describe the circumstances under Providing patent owners with an exclusive oped country markets and conduct the nec- which the three additional years of mar- import right is consistent with Article 28.1 of essary tests to get marketing approval in keting exclusivity described in Article 15.10.2 the TRIPS Agreement, which states that those markets regardless of whether they are would apply. The question seems to imply that the basic patent owners have the exclusive right to given market exclusivity in low-income de- five year term of protection for data sub- make, use, sell, offer for sale, and import veloping countries, what is the rationale for mitted to obtain approval of new chemical products covered by their patents. U.S. law, including these provisions? entities may be extended to eight years. This developed through a long line of Supreme In negotiating the U.S.-Morocco FTA and is not correct. There is no circumstance in Court and lower court cases, has recognized other recent FTAs, USTR has been mindful which the FTA requires that an innovator this right for over a hundred years. The of the guidance provided in the Trade Act of receive a data protection period longer than TRIPS Agreement more precisely articu- 2002, which directs USTR to seek to lated the exclusive import right, and, when five years for new chemical entities. ‘‘ensur[e] that the provisions of any multi- The three year period of protection reflects implementing TRIPS in the Uruguay Round lateral or bilateral trade agreement gov- Agreements Act, Congress amended the pat- a provision in U.S. law, which relates to new erning intellectual property rights that is information that is submitted after a prod- ent law by providing for such a right ex- entered into by the United States reflect[s] a pressly in the statute. uct is already on the market (for example, standard of protection similar to that found because the innovator is seeking approval for At the same time, however, the TRIPS in United States law.’’ We understand the ra- a new use of an existing product). In that sit- Agreement also allows countries to choose to tionale of this guidance is to help protect uation, at least in cases where the origina- permit ‘‘international exhaustion’’ without and create high-paying jobs in leading Amer- tion of this new data involves considerable challenge under WTO dispute settlement. ican businesses. As a developed economy, it effort, the FTA requires that the person pro- International exhaustion would allow par- is understandable that U.S. workers will be viding the new data gets three years of pro- allel imports. The Doha Declaration affirms increasingly employed in higher value (and tection for that new data relating to that this approach, and states that ‘‘[t]he effect better paid) innovative and productive jobs. new use. This three year period only applies of the provisions in the TRIPS Agreement On the basis of Congress’ direction, the to the new data for the new use; it is not that are relevant to the exhaustion of intel- United States sought to include provisions added to the exclusivity period for any data lectual property rights is to leave each mem- that reflect U.S. law, including with respect previously submitted. ber free to establish its own regime for such to the protection of data. For example, if a new chemical entity is exhaustion without challenge, subject to the The protection of clinical test data has given marketing approval, the data sup- MFN and national treatment provisions of long been a component of trade agreements porting that approval is protected for five Articles 3 and 4.’’ negotiated by U.S. Administrations with years. After that time, generic producers Importantly, neither the TRIPS Agree- both developed and developing countries. may rely on the data to obtain approval for ment nor the Doha Declaration require WTO Data protection provisions were included, for a generic version of the drug for the use sup- members to adopt an international exhaus- example, in many past trade agreements, in- ported by the original data. If a new use is tion rule; they merely recognize that coun- cluding the U.S.-Jordan FTA and the U.S.- subsequently discovered for the chemical en- tries may do so without challenge. WTO Vietnam Bilateral Trade Agreement—both tity, and the health authority approves the members are free to exercise their sovereign negotiated by the prior Administration after new use based on new data, then the origi- right to choose an alternative policy. As the passage of the law to which you refer. nator of the new data is entitled to three noted, the United States does not permit Such provisions were included in NAFTA, years of protection for that data. During parallel imports. Morocco also decided in too. They are in all recent FTAs, including that time, however, generics can continue to 2000, well before the FTA negotiations, not the U.S.-Singapore FTA and the U.S.-Chile produce and market the drug for the original to permit parallel imports. The fact that the FTA. Data protection provisions have also use. FTA reflects principles already present in been included in many bilateral intellectual 7. Neither Article 15.10.1 or 15.10.2 on mar- both Parties’ laws does not in any way lessen property agreements. keting exclusivity appear to allow for reli- our commitment to the Doha Declaration. In The TRIPS Agreement itself requires pro- ance on previously submitted data or prior fact, in previous FTA negotiations with de- tection of clinical test data against unfair approval during the period of market exclu- veloping countries that do not have parallel commercial use. While the United States sivity absent consent of the first applicant. import restrictions in their domestic law protects data to obtain approval for new The Doha Declaration reaffirmed the right of (e.g., Central America, Chile, and Bahrain), chemical entities for five years, other coun- countries to use flexibilities under the the final negotiated texts do not contain pro- tries provide different terms. The EU, for ex- TRIPS agreement, such as compulsory li- visions on parallel importation. ample, protects such data for 6–10 years. censes. A compulsory license allows someone 3. Which country sought inclusion of this Implicit in the question, however, appears other than the patent holder to produce and provision? to be an assumption that data protection is sell a drug under patent. It is not clear to us This provision is a standard component of disadvantageous for developing countries why the grant of a compulsory license would the U.S. draft text, which USTR staff has like Morocco. Yet, protection of data actu- override a grant of market exclusivity, as presented to Congress for review and com- ally has the potential of facilitating and ac- provided in Articles 15.10.1 and 15.10.2. (We ment on numerous occasions. Morocco read- celerating access to medicines. As recognized note that there is no exception to protect ily accepted the proposal, without objection, in Chapter 15 of the FTA (footnotes 12 and the public.) Please describe how the market and noted during the negotiations that Mo- 13), Morocco does not currently approve ge- exclusivity provisions in Article 15.10.1 and roccan patent law, like U.S. law, already neric versions of medicines based on approv- Article 15.10.2 relate to Morocco’s ability to provided patentees with an exclusive impor- als granted in other countries. As a result, issue a compulsory license. tation right. today a generic producer wishing to sell The Doha Declaration recognizes that the 4. If Morocco or the United States elimi- pharmaceuticals in Morocco may obtain ap- TRIPS Agreement allows countries to issue nated the exclusive right of a patent holder proval only if an innovative producer first compulsory licenses to address public health to import a patented product, would either obtains approval in Morocco or if the generic problems. The U.S.-Morocco FTA is fully be in violation of Article 15.9.4? producer invests the significant money and consistent with this principle. It contains no It would depend on the details of the par- time necessary to recreate the data itself. provisions with respect to compulsory licens- ticular legislation. A change in U.S. law After an innovative producer obtains ap- ing, leaving the flexibilities available under would, however, affect many other innova- proval in Morocco, a generic producer may WTO rules unchanged. tive sectors that rely on patents besides the rely on such data to obtain approval for its In the negotiation of the U.S.-Morocco pharmaceutical sector. Many U.S. tech- generic product. FTA, both parties recognized the importance nology, manufacturing, and other innovative Therefore, under existing Moroccan law, of protecting public health. Your questions businesses—as well as Members of Congress— generic manufacturers in Morocco cannot pertain to whether provisions of Chapter 15 urge us regularly to vigorously safeguard obtain marketing approval for a generic drug (which is the Intellectual Property Rights U.S. patents and the jobs they help create. until an innovator has first obtained ap- chapter) might affect this common interest.

VerDate jul 14 2003 23:57 Jul 23, 2004 Jkt 029060 PO 00000 Frm 00031 Fmt 4634 Sfmt 0634 E:\CR\FM\A22JY7.091 H22PT2 H6646 CONGRESSIONAL RECORD — HOUSE July 22, 2004 To address this type of concern, the United compensable expropriation of an ‘‘invest- 30 and WTO rules on compulsory licensing. States and Morocco agreed to a side letter on ment’’ under Chapter Ten is a fact-specific Morocco may, for example, allow export of public health in which both Parties stated issue that would have to be resolved on the generic versions of patented drugs by issuing their understanding that ‘‘[t]he obligations merits of a particular case. It is worth not- a compulsory license in accordance with the of Chapter Fifteen of the Agreement do not ing, however, that Article 10.6.5 provides TRIPS/health solution agreed last August in affect the ability of either Party to take nec- that the expropriation provision of Chapter the WTO. essary measures to protect public health by Ten does not apply to the issuance of com- 16. If this provision does in fact limit Mo- promoting access to medicines for all, in par- pulsory licenses or to the limitation of intel- rocco’s ability to allow the export of generic ticular concerning cases such as HIV/AIDS, lectual property rights to the extent that versions of patented pharmaceutical prod- tuberculosis, malaria, and other epidemics such action is consistent with the intellec- ucts, please explain how Morocco could serve as well as circumstances of extreme urgency tual property chapter (Chapter Fifteen). A as an exporting country to help least-devel- or national emergency.’’ The Parties also determination concerning the consistency of oped and other countries address public stated that ‘‘Chapter Fifteen does not pre- an action with Chapter Fifteen would be in- health needs under the Paragraph 6 Decision. vent the effective utilization of the TRIPS/ formed by the side letter. (Exporters under the Paragraph 6 Decision health solution’’ reached in the WTO last 12. Article 10.6.5 of the FTA appears to are exporting to meet the health needs of an year to ensure that developing countries clarify that any act of patent infringement importing country, not merely to obtain that lack pharmaceutical manufacturing ca- carried out by a Party in the issuance of a marketing approval). pacity may import drugs. Therefore, if cir- compulsory license in accordance with the As noted in the response to Question 15, cumstances ever arise in which a drug is pro- TRIPS does not constitute a compensable ex- the FTA does not limit Morocco’s ability to duced under a compulsory license, and it is propriation. Issuance of a compulsory li- make use of the TRIPS/health solution necessary to approve that drug to protect cense, however, is only one aspect of the agreed last August to export drugs under a public health or effectively utilize the process of getting a drug to market. Does the compulsory license to developing countries TRIPS/health solution, the data protection clarification in Article 10.6.5 also ensure that that cannot produce drugs for themselves. provisions in the FTA would not stand in the other measures taken by a government to 17. Does Article 15.9.6 allow export of a ge- way. ensure that a drug on which a compulsory li- neric version of a patented drug to get mar- 8. Where a compulsory license has been cense has been issued can be lawfully marketing approval in a third country (i.e., issued, may a Party automatically deem keted (e.g., a grant of marketing approval to other than the United States or Morocco)? that the first applicant has consented to reli- a generic or second producer before the pe- (Article 15.9.6 states that ‘‘the Party shall ance on the data or prior approval for the riod of marketing exclusivity has expired) provide that the product shall only be ex- drug produced under the compulsory license? will not constitute compensable expropria- ported outside its territory for purposes of As explained above, if the measure de- tions? If not, is there another provision in meeting marketing approval requirements of scribed in the question is necessary to pro- the agreement that would ensure that such that Party.’’) tect public health, then, as explained in the measures do not constitute expropriations? Morocco can get marketing approval in a side letter, the FTA would not stand in the See response to Question 11. third country to allow export of a generic way. 13. Article 15.10.3 requires that a patent version through the issuance of a compul- 9. If the patent and test-data were owned term be extended where there is a delay in sory license for export, consistent with WTO by different entities, does a compulsory li- the regulatory approval process. The provi- rules. Article 15.9.6 does not interfere with cense result in legal ‘‘consent’’ by both the sion does not state whether delays attrib- that result. patent holder and the data owner for use of utable to the applicant (e.g., failure to pro- SIDE LETTER the patented material and the test data? vide adequate data) mitigate against exten- See previous response. 18. On the Paragraph 6 Decision, please ex- sion. Article 15.9., the comparable provision plain how the statement that the FTA does 10. When the drug is off patent, and a Party for extension of a patent term because of a wishes to permit marketing for a second en- not ‘‘prevent the effective utilization’’ is not delay in the patent approval process, makes merely rhetorical. Please be specific as to trant, what mechanism exists in the FTA to clear that delays attributable to the patent allow for an exception to the provisions on why you believe the provisions in the FTA applicant should not be considered in deter- do not preclude Morocco from acting as an market exclusivity? mining whether there is a delay that gives A patent is designed to protect one type of importer or exporter of drugs under the rise to the need for an extension. Why was Paragraph 6 Decision, including how the intellectual property work, i.e., an inven- similar language not included in Article tion. Protection of data is intended to pro- FTA’s provisions related to market exclu- 15.10.3? sivity can be waived if Morocco acts in ei- tect a different type of work, i.e., undis- The Parties did not find it necessary to ther capacity. closed test data that required significant specifically address the issue of how to han- time and effort to compile. The fact that one There are no provisions in the FTA related dle delays attributable to an applicant for to compulsory licensing, which means that it type of intellectual property protection for a marketing approval in the context of data product has expired, should not lead as a does not limit in any way Morocco’s ability protection. As with numerous other provi- to issue compulsory licenses in accordance matter of course to the conclusion that all sions, the Parties retain the flexibility to ad- other intellectual property rights attached with WTO rules, including TRIPS Article 31 dress such details in their implementation of and the TRIPS/health solution. With respect to the same product should also expire. The the FTA, provided that they comply with the same is true in other areas of intellectual to other rules included in Chapter 15, includ- basic obligation. ing data protection, the side letter states property. For example, a single CD may en- 14. Is Morocco, or for that matter the that the FTA does not ‘‘prevent the effective compass several intellectual property rights United States, required by the FTA to ex- utilization of the TRIPS/health solution.’’ As related to the music, the performer and the tend a patent term where there is a delay in stated in the side letter, the letter con- record company. These rights may expire at the regulatory approval that is attributable stitutes a formal agreement between the different times. The fact that the copyright to the applicant? Parties. It is, thus, a significant part of the attached to the sound recording has expired, The FTA preserves flexibility for the Par- interpretive context for this agreement and should not mean that the composer or per- ties to address the issue of delays attrib- not merely rhetorical. According to Article former loses the copyright it has. As you utable to an applicant for marketing ap- 31 of the Vienna Convention on the Law of know, this principle is important to a broad proval through their domestic laws and regu- Treaties, which reflects customary rules of range of U.S. creative and innovative indus- lations. tries, including the entertainment sector, treaty interpretation in international law, America’s second largest export business. BOLAR PROVISIONS the terms of a treaty must be interpreted ‘‘in However, as indicated in the side letter, if 15. Please explain whether this Article pro- their context,’’ and that ‘‘context’’ includes a circumstance arose, such as an epidemic or hibits Morocco from allowing the export of ‘‘any agreement relating to the treaty which national emergency, that could only be ad- generic versions of patented pharmaceutical was made between all the parties in connec- dressed by granting a second entrant mar- products for purposes other than ‘‘meeting tion with the conclusion of the treaty.’’ keting approval notwithstanding the data marketing approval requirements.’’ If it does 19. On the issue of consultation, do the let- protection rights of the originator of the not, please explain in detail how you came to ters mean that both Parties agree to amend data, the FTA would not stand in the way. that conclusion. the FTA as soon as possible to reflect access 11. Is a grant of market exclusivity pursu- No, it does not. The Article dealing with to medicines amendments to the TRIPS ant to Articles 15.10.1 and 15.10.2 considered the ‘‘Bolar’’ exception to patent rights only Agreement? Will the United States refrain an ‘‘investment’’ with respect to Chapter 10 deals with one specific exception. It does not from enforcing provisions of the FTA that of the Agreement? If so, would an occupy the field of possible exceptions, and contravene the TRIPS Agreement amend- abridgement of the period of market exclu- thus does not prevent Morocco from allowing ments while the FTA is being amended? Is sivity constitute a compensable expropria- the export of generic versions of patented USTR willing to engage in an exchange of tion under Chapter 10? pharmaceutical products for purposes other letter with the Government of Morocco me- The definition of an ‘‘investment’’ in the than ‘‘meeting marketing approval require- morializing such an understanding? FTA includes, inter alia, ‘‘intellectual prop- ments’’ when permitted by other exceptions. The United States would, of course, work erty rights.’’ Whether an abridgement of the For example, Morocco has the right to allow with Morocco to ensure that the FTA is data protection obligation gives rise to a exports where consistent with TRIPS Article adapted as appropriate if an amendment to

VerDate jul 14 2003 23:57 Jul 23, 2004 Jkt 029060 PO 00000 Frm 00032 Fmt 4634 Sfmt 0634 E:\CR\FM\A22JY7.091 H22PT2 July 22, 2004 CONGRESSIONAL RECORD — HOUSE H6647 the TRIPS Agreement were adopted to en- But there were two provisions that Mr. THOMAS. Mr. Speaker, my assure access to medicines. The only amend- could restrict the access of citizens of sumption is that the closing remarks ment currently being contemplated with re- Morocco to prescription medicines. We on the part of the ranking member of spect to TRIPS involves translating the are talking about people whose health the Trade Subcommittee was an en- TRIPS/health solution from last August into is at stake. We are talking about the a formal amendment. The United States has dorsement. It sounded as though we no intention of using dispute settlement to spread of AIDS. We are talking about began with an extremely flawed prod- challenge any country’s actions that are in the spread of other ailments and other uct and, through their efforts, they accordance with that solution. In fact, Can- diseases. And the question became were successful in righting the ship so ada passed legislation recently that would whether anything in this FTA would that we could actually have a mini- allow it to export drugs in accordance with restrict the government of Morocco mally decent document. I wonder the TRIPS/health solution. The United from having access for their citizens to where they were when President Clin- States reached an agreement with Canada these prescription medicines. That ac- ton wanted fast track, their President, just last Friday, July 16, to suspend parts of cess was assured in the Doha Declara- NAFTA to ensure that Canada could imple- and three quarters of them voted tion. And so there followed a letter against providing the President. ment the solution without running afoul of from us on the Democratic side to NAFTA rules. So when we listen to the remarks, we In closing, let me emphasize that we appre- USTR; and here is what was said, their really have to put it, one, in context ciate the importance of the U.S. commit- understanding of the provisions includ- and then appreciate that intensity or ment to the Doha Declaration on the TRIPS ing the side letters: outlandishness does not equal votes. Agreement and Public Health and the global ‘‘If circumstances ever arise in which And when I close shortly, take a look effort to ensure access to medicines in devel- a drug is produced under a compulsory at the votes in terms of who is for and oping countries to address acute public license and it is necessary to approve health problems, such as AIDS, malaria and who is against. the drug to protect public health or ef- But I do want to spend just 1 minute tuberculosis. The United States played a fectively utilize the TRIPS/health solu- leading role in developing these provisions, analyzing the level of the content and tion, the date of protection provisions the direction of the debate. The rank- including enabling poor countries without in the FTA would not stand in the domestic production capacity to import ing member from New York began this way.’’ drugs under compulsory licenses. We also discussion by indicating that I stole They also said, USTR, in interpreting successfully called for giving Least Devel- the election in Florida. That certainly oped Countries an additional ten years, from what was in this FTA: ‘‘If the measure described in the question is necessary was an appropriate beginning on a de- 2006 until 2016, to implement TRIPS rules re- bate on a Free Trade Agreement with lated to pharmaceuticals. These accomplish- to protect public health, then, as ex- ments offer a significant solution to the con- plained in the side letter, the FTA Morocco. I would probably classify it flicts we encountered on taking office in would not stand in the way.’’ as silly, but that is the level of debate 2001. They also said: ‘‘This side letter con- that we often engage in. And it is just At the same time, as Congress has directed stitutes a formal agreement between a pleasure to allow the rest of the us, the Administration has worked on mul- the parties. It is thus a significant part country to understand the level at tiple fronts to strengthen the value inter- of the interpretive context for this which exchanges are made not only in nationally of America’s innovation economy. agreement and not merely rhetorical.’’ committee but on the floor when we These efforts have included stronger intel- try to engage in a serious discussion. lectual property protection rules and en- In a word, the government of Mo- forcement so as to assist U.S. businesses and rocco has the flexibility to assure the I heard an indication that people workers, and encourage ongoing innovation health of its citizens under the Doha were interested in jobs, and, of course, that benefits U.S. consumers. Declaration. I will talk about the gentleman from Ohio and his diatribe in a minute. Our FTAs are but one component of the b 1800 Administration’s broader efforts to achieve You missed the boat on the jobs these objectives, and complement efforts un- Because of our efforts to clarify what issue. That was the jobs growth tax dertaken in other fora. Our FTAs not only do was going on in terms of core labor bill. It has had a major positive effect not conflict with the objectives expressed in standards and conditions in Morocco on jobs. You were ‘‘no’’ on that one as the Doha Declaration but reinforce those ob- and because of our efforts in the re- well. We have got 46 of the 50 States ex- jectives and facilitate efforts to address pub- sponse of USTR on prescription medi- lic health problems. panding. Unemployment is down in all cines, we feel that this agreement regions of the country. This is the fast- Sincerely, should be approved. JOHN K. VERONEAU, est growth in the last 20 years. And General Counsel. However, our questions serve notice based upon your debating style, at that This is what was said in this letter: that we should be very sensitive in the point I would pause and parentheti- ‘‘The government of Morocco is com- future in how we shape trade agree- cally say even including the Clinton mitted to protecting the right to strike ments. We should not assume there is years so that we can understand that in conformance with the International no need to shape expanded trade. We the mention of Bush in every other Labor Organization’s core principles. have made it clear it is essential that sentence and in a negative way was In particular, the government will not we do so, and it is under that kind of clearly focused on the Free Trade structure, it is within that perspective, use 288 of our penal code against lawful Agreement and had nothing to do with that I suggest that we approve this strikers.’’ attempting to influence an election. agreement between our two nations, I do think that our inquiry, I do We have got 1.5 million jobs, con- with whom there are very significant think the responsible discussions that tinuing to grow, and they will continue were held with the Moroccan govern- relationships. Mr. Speaker, I yield back the balance to grow right through the election. ment and their officials indicated that, But I want to especially focus on the of my time. in practice, the labor standards within Mr. CRANE. Mr. Speaker, I yield my- other gentleman from Ohio (Mr. RYAN) Morocco essentially meet the ILO self such time as I may consume. because at some point we cannot allow standards. I want to first commend our col- statements made on the floor of the We next raised the issue of prescrip- leagues on the other side of the aisle on House to stand when they are so out- tion medicines. We did not assume the Committee on Ways and Means for rageously false. The statement referred more trade would automatically ben- guaranteeing unanimous commitment to legislation that we were considering efit everybody, including our citizens to passage of our Free Trade Agree- earlier, and the statement was that and also the citizens of Morocco. On re- ment with Morocco and look forward what we did denied what the Constitu- importation, we do not like the lan- to working with them in the future. tion provides. I would urge everyone at guage the way it was inserted there, Mr. Speaker, I yield the balance of some time, and especially certain the general language on patent protec- my time to the distinguished gen- Members, to look at the Constitution tion. However, reimportation from Mo- tleman from California (Chairman and turn to Article III, the judicial ar- rocco has never been suggested in any THOMAS). ticle, and look at Section 2. And I will of the legislation introduced; and so I (Mr. THOMAS asked and was given just read it briefly, referring to the ju- think for this purpose, for this bill, it permission to revise and extend his re- dicial branch: ‘‘In all cases affecting is not an issue. marks.) Ambassadors, other public ministers

VerDate jul 14 2003 23:57 Jul 23, 2004 Jkt 029060 PO 00000 Frm 00033 Fmt 4634 Sfmt 0634 E:\CR\FM\A22JY7.091 H22PT2 H6648 CONGRESSIONAL RECORD — HOUSE July 22, 2004 and consuls, and those in which a State Sahara. The U.S., as well as the international has demonstrated its commitment to working shall be party, the Supreme Court shall community, does not recognize Morocco’s with us and raising its own standards; the new have original jurisdiction. In all the sovereignty over Spain’s former colony. Mo- labor rights laws enacted last year are a good other cases before mentioned, the Su- rocco has steadfastly refused any efforts by example. But I want to strongly urge the preme Court shall have appellate juris- the United Nations to permit a free and fair USTR to show more care and attention to the diction, both as to law and fact, with referendum on self-determination for the individuality of nations as we move forward, such exceptions, and under such regu- Sahrawi people of Western Sahara. We particularly as it relates to institutional reforms lations as the Congress shall make.’’ should not permit Morocco to use the agree- and the protection of human rights. The Congress was exercising its con- ment to further its illegal occupation of West- Mr. STARK. Mr. Speaker, time sure flies stitutional function in indicating that ern Sahara. when you’re having fun. Just last week I ex- areas of appellate jurisdiction were not I urge the administration to take these con- pressed serious misgivings about the U.S.- to be examined by the court, and it ab- cerns seriously and to implement a free trade Australian Free Trade Agreement (FTA), not- solutely floors me, well, I guess it does agreement that does not violate the sov- ing, among other problems, that it set a bad not based upon the other statements ereignty and rights of the people of Western precedent for future trade bills. Those con- made by those on the other side of the Sahara. cerns are confirmed today by this bill. The aisle, that not only apparently they do Mr. CARDIN. Mr. Speaker, I rise today to U.S.-Morocco FTA is a bad agreement that not know the Constitution, but they voice a significant concern with regard to the protects U.S. pharmaceutical manufacturers actually invoke it in a totally false proposed Free Trade Agreement between the while ignoring labor standards and the way on the floor of the House of Rep- United States and Morocco. While this is a healthcare needs of Moroccan citizens. resentatives. concern specific to Morocco, it highlights a I warned you last week that a vote for the So what I would really urge Members broader issue that I and many of my col- Australian FTA was a vote against prescription to do is not pay any attention to what leagues share in regard to the pace and ‘‘indi- drug reimportation, and it’s true again today. was said necessarily on the other side viduality’’ of the many bilateral FTAs being ne- We cannot continue to allow USTR to include of the aisle but take a look at the vote gotiated by the USTR. intellectual property provisions in FTAs that for this particular measure. H.R. 4842 Reviewing the February 25, 2004 State De- undermine Congress’s ability to provide afford- certainly deserves the overwhelming partment Country Report on Human Rights for able prescription drugs through reimportation. majority support of this House. I be- Morocco, I came across several issues. The True, we aren’t going to be importing drugs lieve it will be bipartisan. And, please, report highlights a series of human rights from Morocco any time soon, but what hap- we will take away from this particular abuses in Morocco and I believe these unac- pens in the next FTA, and the one after that? bill on the floor the fact that the vote ceptable practices need to be a priority of the It should be clear by now that the USTR is was bipartisan even if the rhetoric is United States as it builds and strengthens its merely a shill for the pharmaceutical industry, not and at times not just silly but long-standing ties with Morocco. engaged in nothing more than closing the door I was greatly concerned with an issue that downright, flat-out wrong. to drug reimportation at the request of the Ad- comes up several times in the report. To Mr. KUCINICH. Mr. Speaker, the U.S.-Mo- ministration. quote one sentence: ‘‘The judiciary lacked rocco free trade agreement is bad for Amer- Unfortunately, the Morocco agreement independence and was subject to government ica. doesn’t stop at undermining the debate over influence and corruption.’’ As I assume we can The agreement prohibits the importation of reimportation. In fact, it goes much further by all agree, the lack of an independent judiciary lower cost pharmaceuticals, and delays the limiting access to potentially life saving drugs and corruption are significant, fundamental availability of lower cost generic drugs by cre- in Morocco. Because the agreement limits par- barriers to the development of a sound, grow- ating new patent-like protections for drug regu- allel importation, if a pubic health emergency ing trade relationship. latory data. Together, these measures will As the Ways and Means Committee consid- breaks out, Morocco cannot import affordable maintain high prescription drug prices in the ered this agreement I asked representatives of drugs from neighboring countries if a U.S. U.S. the USTR about this fundamental issue. They country manufacturers the drug. The agreement contains a side letter permit- had no comment and promised to follow-up Once again, the pharmaceutical industry ting Morocco to ignore enforcement of its labor with me. I want to thank Chairman THOMAS for has used the administration and a free trade laws with no penalty whatsoever. Under this for seconding my concerns at the markup and agreement to protect its profits, without any loophole, American employers and workers also seeking a response. The USTR has concern for global health. If Morocco has a under U.S. labor law could be at a disadvan- made available to me the American Bar Asso- public health crisis, it would be forced to pur- tage if actual conditions in Morocco are so lax ciation report on the state of Morocco’s judicial chase drugs from U.S. manufacturers instead as to create a much cheaper business envi- system, citing some hope for reform. of getting immediate access to the same ronment. My impression is that the state of the judici- drugs from nearby countries. The U.S. phar- The agreement prohibits the preferences for ary in the Kingdom of Morocco and corruption maceutical industry has been gouging prices government contracts to be given for: employ- in commerce are issues that received little at- here in America for years; just think what they ing U.S. workers, using recycled materials, tention as the USTR negotiated this agree- can do to prices when a developing country is paying prevailing or living wages. Furthermore, ment. That should not be the case. Bilateral in crisis. no criminal record of tax evasion, endangering FTAs are a means to address issues such as You would think one provision limiting ac- the lives of workers, or pollution can disqualify these with key trade partners and strengthen cess to drugs in Morocco would be victory a company for a government contract. the basis for trade relations. An independent enough for the pharmaceutical manufacturers, These flaws are not necessary for trade be- judiciary is essential to sound, long-term trade but this industry just does not stop. Also in- tween nations. They are, however, elements in relations. As well, corruption in many foreign cluded in the FTA are limits on the use of test an anti-consumer, anti-worker, anti-environ- nations has long been a concern of the United data and market exclusivity provisions that ment and anti-democratic agenda. For these States; one where we have long set a high could raise the price of drugs in Morocco and reasons, I oppose the U.S.-Morocco free trade standard and required our businesspeople to further limit access. agreement. operate on an ethical basis. Because the FTA limits test data usage and Mr. TOWNS. Mr. Speaker, while I intend to I understand the USTR’s current interest in creates 5 years of market exclusivity, the intro- vote for the Morocco Free Trade Agreement, pursuing a large number of bilateral agree- duction of generic drugs in the Moroccan mar- I want to stress to the administration how im- ments to advance trade around the world— ket will be substantially delayed. When portant it is to respect the report language on particularly as our more broad based talks and generics are not available, prices increase— ‘‘Western Sahara’’ which was included in this negotiations on global agreements have along with manufacturers’ profits—and poorer bill by my colleague, the gentleman from stalled. That being said, quantity should not citizens have less purchasing power to obtain Washington, Mr. MCDERMOTT. This language supplant quality in agreements. Our goals in life saving drugs. reflects the sentiment voiced in a recent bipar- each of our trade agreements should remain There is also the strong possibility that tisan letter to the U.S. Trade Representative, high and be targeted to the situation in each these data and exclusivity provisions will fur- Robert Zoellick. nation. I am concerned in this agreement we ther tie the hands of the Moroccan govern- Under no circumstances should the U.S. have not met our highest goals and lost an ment during a public health emergency. The proceed with the implementation of a free opportunity. FTA and side letter are amazingly vague on trade agreement that does not categorically Reluctantly, I intend to support this FTA be- whether Morocco can engage in compulsory li- exclude the terrority known as the Western cause I believe the government of Morocco censing of otherwise patented drugs during a

VerDate jul 14 2003 23:57 Jul 23, 2004 Jkt 029060 PO 00000 Frm 00034 Fmt 4634 Sfmt 9920 E:\CR\FM\K22JY7.131 H22PT2 July 22, 2004 CONGRESSIONAL RECORD — HOUSE H6649 health crisis. Here again, the pharmaceutical benefit from drawback, and these high quality trade agreement providing another nation with manufacturers will do anything to make sure jobs could be adversely affected by eliminating more favorable market access for agriculture, they are the monopoly power, even when lives or restricting drawback. In my own home State our FTA automatically obtains the same level are at stake. of Louisiana, drawback and duty deferral pro- of access as the other nation. This will ensure Today we vote on nothing less than the fu- grams provide substantial benefits to local in- America’s competitiveness against other nature course of domestic and international phar- dustries, allowing them to compete on a level tions seeking to enter the Moroccan market. maceutical policies. USTR will continue to use playing field in the global market. Drawback I believe the geopolitical reasons for estab- trade agreements to limit our ability to import and deferral prevents outsourcing and saves lishing this free trade agreement with another affordable pharmaceuticals from other coun- U.S. manufacturing and jobs. As long as the Muslim nation in a volatile region overcomes tries. It is also clear that future negotiations programs provide a competitive advantage in the few deficiencies inherent in the agreement, are going to limit drug access in other coun- production and sales for U.S. manufacturers particularly with regard to textiles. Because of tries so that U.S. pharmaceutical manufactur- and exporters, they will assist in preventing the small amount of trade between our two ers can make even more money abroad. U.S. jobs from moving offshore. countries, any potential adverse impact should These are bad policies, and we should not let Drawback makes a significant difference to be minimized. However, this administration the Administration continue to implement them U.S. companies at the margin when exporting cannot continue to count on this Member’s by slipping them into free trade agreements. to our FTA partners where they compete support for other trade agreements if it is not I am also concerned that USTR has once against foreign producers that either have sub- willing to stand up for even stronger labor and again failed to include core labor standard re- stantially lower costs of production or enjoy environmental standards and better protec- quirements in a free trade agreement. USTR low or zero import duty rates. This export pro- tions for America’s fragile textile industry. should not continue to use the ‘‘enforce your motion program is one of the last WTO-sanc- I ask my colleagues to support this agree- own laws’’ standard in FTAs without devel- tioned programs that provide a substantial ad- ment. oping countries. I understand Morocco is mov- vantage to U.S. companies participating in the The SPEAKER pro tempore (Mr. ing in the right direction in terms of labor export market. The application of these pro- OSE). All time for debate has expired. rights, but there is no reason this FTA should grams to U.S. manufacturers and exporters Pursuant to House Resolution 738, not have held them to the core labor stand- should not be restricted in future free trade the bill is considered read for amend- ards developed by the International Labour agreements that we negotiate with our trading ment, and the previous question is or- Organization (ILO). The ILO standards ensure partners. dered. workers’ human rights and their right to orga- We need to work hard to complete free The question is on the engrossment nize and strike. We cannot have acceptable trade agreements that provide as many com- and third reading of the bill. free trade without a level playing field, and petitive advantages as we can to U.S. manu- The bill was ordered to be engrossed these standards are the key to ensuring trade facturers competing in the global market, en- and read a third time, and was read the between the U.S. and other countries is both courage growth in U.S. exports, and create third time. free and fair. U.S. jobs. The SPEAKER pro tempore. The This is a bad free trade agreement that sets Mr. ETHERIDGE. Mr. Speaker, I rise today question is on the passage of the bill. a bad precedent for all future trade negotia- to announce my support for H.R. 4842, legis- The question was taken; and the tions. We cannot continue to let the adminis- lation implementing a free trade agreement Speaker pro tempore announced that tration make health policy without Congres- with the nation of Morocco. the ayes appeared to have it. sional input, and we surely would not let the For more than two centuries, Morocco has Mr. CRANE. Mr. Speaker, I object to pharmaceutical industry have their way just been a steadfast friend to the United States. the vote on the ground that a quorum because of their large campaign donor status. Few Americans would guess that Morocco is not present and make the point of We also cannot ignore workers’ rights by al- was the first nation to extend recognition to order that a quorum is not present. lowing trade partners to enforce their own the new American nation on December 20, laws when those laws do not meet inter- 1777. Morocco is also one of only six Muslim The SPEAKER pro tempore. Evi- national labor standards. nations to be designated as a ‘‘major non- dently a quorum is not present. I urge my colleagues to vote against the NATO ally.’’ So it is only fitting that we estab- The Sergeant at Arms will notify ab- U.S.-Morocco Free Trade Agreement. lish a free trade agreement with such a long- sent Members. Mr. JEFFERSON. Mr. Speaker, I strongly time friend and supporter. Pursuant to clauses 8 and 9 of rule support the Morocco Free Trade Agreement Under this FTA, more than 95 percent of bi- XX, this 15-minute vote on the passage and believe it will promote domestic growth in lateral trade between our countries will be of H.R. 4842 will be followed by 5- manufacturing and exports. I look forward to duty-free from the first day of implementation. minute votes, as ordered, on sus- seeing this agreement enacted into law. I also North Carolina exports to Morocco are gen- pending the rules and adopting House support, thank and congratulate the United erally small, valued at just more than 8 million Concurrent Resolution 436; and House States Trade Representative and staff in ne- dollars. Morocco is my state’s 80th biggest ex- Concurrent Resolution 418. gotiating the inclusion of full duty drawback port market with tobacco products, chemical The vote was taken by electronic de- and duty deferral rights for U.S. manufactur- manufacturing, and transportation equipment vice, and there were—yeas 323, nays 99, ers, exporters and workers in this FTA. Free being our top three exports. not voting 12, as follows: trade agreements should include no language However, North Carolina stands to gain [Roll No. 413] that eliminates or otherwise restricts the appli- much from increased access to this new mar- YEAS—323 cation of duty drawback and duty deferral pro- ket, especially in the field of agriculture. Tariffs Abercrombie Boehlert Chabot grams to U.S. manufacturers and exporters. on key North Carolina products like soybeans Ackerman Boehner Chandler The language in the Singapore, Australia, and processed poultry products will be cut sig- Akin Bonilla Chocola Allen Bonner Clay Israel and Jordan FTAs and in the CAFTA, for nificantly. One significant provision in this Bachus Bono Clyburn example, have no such restrictive language agreement is that Morocco has agreed to ac- Baird Boozman Cole and we should continue to model future agree- cept U.S. inspection standards for poultry. Baker Boswell Cooper ments after these FTAs. This issue is of sig- Phony sanitary and phytosanitary restrictions Ballenger Boyd Cox Bartlett (MD) Bradley (NH) Cramer nificant importance to many U.S. manufactur- on U.S. exports have long been a hallmark of Barton (TX) Brady (TX) Crane ers and exporters, including those in my home international trade. Having Morocco accept our Bass Brown (SC) Crenshaw State of Louisiana. inspection regime will go along way to improv- Beauprez Brown-Waite, Crowley Duty drawback and duty deferral programs Becerra Ginny Cubin ing access to that market. Bell Burgess Culberson reduce production and operating costs by al- According to an analysis by the American Bereuter Buyer Cummings lowing our manufacturers and exporters to re- Farm Bureau Federation, this agreement is Berkley Calvert Cunningham cover duties that were paid on imported mate- expected to result in a 10 to 1 gain for the Berman Camp Davis (AL) Biggert Cantor Davis (CA) rials when the same or similar materials are U.S. agricultural sector. Within the next 10–11 Bilirakis Capito Davis (FL) exported either whole or as a component part years, the U.S. should expect to increase agri- Bishop (GA) Capps Davis (TN) of a finished product. Duty drawback positively cultural exports to Morocco by $225 million. Bishop (NY) Cardin Davis, Jo Ann affects nearly $16 billion of U.S. exports each What’s more, the FTA includes a provision Bishop (UT) Carson (OK) Davis, Tom Blackburn Carter Deal (GA) year. Additionally, nearly 300,000 U.S. jobs giving U.S. agriculture an ‘‘automatic up- Blumenauer Case DeGette are directly related to exported goods that grade.’’ Should Morocco negotiate another Blunt Castle DeLay

VerDate jul 14 2003 23:57 Jul 23, 2004 Jkt 029060 PO 00000 Frm 00035 Fmt 4634 Sfmt 0634 E:\CR\FM\A22JY7.131 H22PT2 H6650 CONGRESSIONAL RECORD — HOUSE July 22, 2004 DeMint Kennedy (RI) Ramstad Holt Murtha Serrano Carson (OK) Hefley Millender- Deutsch Kilpatrick Rangel Hostettler Myrick Sherman Carter Hensarling McDonald Diaz-Balart, L. Kind Regula Hunter Nadler Slaughter Case Herger Miller (FL) Diaz-Balart, M. King (IA) Rehberg Jackson (IL) Napolitano Solis Castle Herseth Miller (MI) Dicks King (NY) Renzi Jones (NC) Oberstar Spratt Chabot Hill Miller (NC) Dingell Kingston Reyes Kanjorski Olver Stark Chandler Hinchey Miller, Gary Dooley (CA) Kline Reynolds Kaptur Owens Strickland Chocola Hinojosa Miller, George Doolittle Knollenberg Rodriguez Kildee Pallone Taylor (MS) Clay Hobson Mollohan Lantos Pascrell Dreier Kolbe Rogers (KY) Taylor (NC) Clyburn Hoeffel Moore Duncan LaHood Larson (CT) Pastor Rogers (MI) Thompson (MS) Coble Hoekstra Moran (KS) Dunn Lampson Lee Payne Cole Moran (VA) Rohrabacher Tierney Holden Edwards Langevin Ros-Lehtinen Lipinski Peterson (MN) Conyers Murphy Vela´ zquez Holt Ehlers Larsen (WA) Ross Markey Pombo Cooper Murtha Visclosky Honda Emanuel Latham Rothman Marshall Rogers (AL) Costello Musgrave Wamp Hooley (OR) Engel LaTourette Roybal-Allard McGovern Rush Cox Hostettler Myrick McIntyre Waters English Leach Royce Ryan (OH) Cramer Houghton Nadler McNulty Sabo Waxman Eshoo Levin Ruppersberger Crane Hoyer Napolitano Etheridge Michaud Sa´ nchez, Linda Wilson (SC) Lewis (CA) Ryan (WI) Crenshaw Hulshof Neal (MA) Everett Lewis (GA) Miller (NC) T. Woolsey Ryun (KS) Crowley Hunter Nethercutt Fattah Lewis (KY) Miller, George Sanders Wu Sanchez, Loretta Cubin Hyde Neugebauer Feeney Linder Mollohan Schakowsky Sandlin Culberson Inslee Ney Ferguson LoBiondo Saxton Cummings Isakson Northup Flake Lofgren NOT VOTING—12 Schiff Cunningham Israel Norwood Foley Lucas (KY) Cannon Greenwood Lowey Schrock Davis (AL) Issa Nunes Forbes Lucas (OK) Carson (IN) Kirk Meehan Scott (GA) Davis (CA) Istook Nussle Ford Lynch Collins Kleczka Paul Scott (VA) Davis (FL) Jackson (IL) Oberstar Fossella Majette Gephardt Kucinich Quinn Sensenbrenner Davis (IL) Jackson-Lee Obey Franks (AZ) Maloney Sessions Davis (TN) Olver Frelinghuysen Manzullo ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE (TX) Shadegg Davis, Jo Ann Jefferson Ortiz Frost Matheson Shaw The SPEAKER pro tempore (Mr. Davis, Tom Osborne Gallegly Matsui Jenkins Shays BASS) (during the vote). Members are Deal (GA) John Ose Garrett (NJ) McCarthy (MO) Sherwood DeFazio Otter Gerlach McCarthy (NY) advised 2 minutes remain in this vote. Johnson (CT) Shimkus DeGette Johnson (IL) Owens Gibbons McCollum Shuster Delahunt Oxley Gilchrest McCotter b 1832 Johnson, E. B. Simmons DeLauro Pallone Gillmor McCrery Johnson, Sam Simpson Ms. CORRINE BROWN of Florida, DeLay Pascrell Gingrey McDermott Jones (NC) Skelton DeMint Pastor Gonzalez McHugh and Messrs. BARRETT of South Caro- Jones (OH) Smith (MI) Deutsch Payne Goodlatte McInnis Kanjorski Smith (NJ) lina, RUSH, BURTON of Indiana and Diaz-Balart, L. Pearce Gordon McKeon Kaptur Smith (TX) BUTTERFIELD changed their vote Diaz-Balart, M. Pelosi Goss Meek (FL) Keller Smith (WA) Dicks Pence Granger Meeks (NY) from ‘‘yea’’ to ‘‘nay.’’ Kelly Snyder Dingell Peterson (MN) Graves Menendez So the bill was passed. Kennedy (MN) Souder Doggett Peterson (PA) Green (WI) Mica Kennedy (RI) Stearns The result of the vote was announced Dooley (CA) Petri Gutknecht Millender- Kildee Stenholm as above recorded. Doolittle Pickering Hall McDonald Kilpatrick Stupak Doyle Pitts Harman Miller (FL) f Kind Harris Miller (MI) Sullivan Dreier King (IA) Platts Hart Miller, Gary Sweeney Duncan King (NY) Pombo Tancredo CELEBRATING 10 YEARS OF MA- Dunn Pomeroy Hastings (WA) Moore JORITY RULE IN REPUBLIC OF Kingston Hayworth Moran (KS) Tanner Edwards Kleczka Porter Hefley Moran (VA) Tauscher SOUTH AFRICA Ehlers Kline Portman Tauzin Emanuel Price (NC) Hensarling Murphy The SPEAKER pro tempore. The un- Knollenberg Herger Musgrave Terry Emerson Kolbe Pryce (OH) Herseth Neal (MA) Thomas finished business is the question of sus- Engel LaHood Putnam Hill Nethercutt Thompson (CA) pending the rules and agreeing to the English Lampson Radanovich Eshoo Rahall Hinojosa Neugebauer Thornberry concurrent resolution, H. Con. Res. 436, Langevin Hobson Ney Tiahrt Etheridge Lantos Ramstad Evans Rangel Hoeffel Northup Tiberi as amended. Larsen (WA) Everett Regula Hoekstra Norwood Toomey The Clerk read the title of the con- Larson (CT) Farr Rehberg Honda Nunes Towns Latham current resolution. Fattah Renzi Hooley (OR) Nussle Turner (OH) LaTourette The SPEAKER pro tempore. The Feeney Reyes Houghton Obey Turner (TX) Leach Ferguson Reynolds Hoyer Ortiz Udall (CO) question is on the motion offered by Lee Filner Rodriguez Hulshof Osborne Udall (NM) the gentleman from Iowa (Mr. LEACH) Levin Flake Rogers (AL) Hyde Ose Upton Lewis (CA) that the House suspend the rules and Foley Rogers (KY) Inslee Otter Van Hollen Lewis (GA) agree to the concurrent resolution, H. Forbes Rogers (MI) Isakson Oxley Vitter Lewis (KY) Fossella Rohrabacher Israel Pearce Walden (OR) Con. Res. 436, as amended, on which the Linder Issa Pelosi Walsh Frank (MA) Ros-Lehtinen yeas and nays are ordered. Franks (AZ) Lipinski Ross Istook Pence Watson This will be a 5-minute vote. LoBiondo Jackson-Lee Peterson (PA) Watt Frelinghuysen Rothman The vote was taken by electronic de- Frost Lofgren Roybal-Allard (TX) Petri Weiner Lucas (KY) Jefferson Pickering Weldon (FL) vice, and there were—yeas 422, nays 0, Gallegly Royce Garrett (NJ) Lucas (OK) Ruppersberger Jenkins Pitts Weldon (PA) not voting 12, as follows: Lynch John Platts Weller Gerlach Rush [Roll No. 414] Gibbons Majette Ryan (OH) Johnson (CT) Pomeroy Wexler Maloney Johnson (IL) Porter Whitfield Gilchrest Ryan (WI) YEAS—422 Gillmor Manzullo Ryun (KS) Johnson, E. B. Portman Wicker Markey Johnson, Sam Price (NC) Wilson (NM) Abercrombie Berman Brady (TX) Gingrey Sabo Aderholt Berry Brown (OH) Gonzalez Marshall Sa´ nchez, Linda Jones (OH) Pryce (OH) Wolf Matheson Keller Putnam Wynn Akin Biggert Brown (SC) Goode T. Alexander Bilirakis Brown, Corrine Goodlatte Matsui Sanchez, Loretta Kelly Radanovich Young (AK) McCarthy (MO) Kennedy (MN) Rahall Young (FL) Allen Bishop (GA) Brown-Waite, Gordon Sanders Andrews Bishop (NY) Ginny Goss McCarthy (NY) Sandlin McCollum NAYS—99 Baca Bishop (UT) Burgess Granger Saxton Bachus Blackburn Burns Graves McCotter Schakowsky Aderholt Burton (IN) Emerson Baird Blumenauer Burr Green (TX) McCrery Schiff Alexander Butterfield Evans Baker Blunt Burton (IN) Green (WI) McDermott Schrock Andrews Capuano Farr Baldwin Boehlert Butterfield Grijalva McGovern Scott (GA) Baca Cardoza Filner Ballenger Boehner Buyer Gutierrez McHugh Scott (VA) Baldwin Coble Frank (MA) Barrett (SC) Bonilla Calvert Gutknecht McInnis Sensenbrenner Barrett (SC) Conyers Goode Bartlett (MD) Bonner Camp Hall McIntyre Serrano Berry Costello Green (TX) Barton (TX) Bono Cannon Harman McKeon Sessions Boucher Davis (IL) Grijalva Bass Boozman Cantor Harris McNulty Shadegg Brady (PA) DeFazio Gutierrez Beauprez Boswell Capito Hart Meek (FL) Shaw Brown (OH) Delahunt Hastings (FL) Becerra Boucher Capps Hastings (FL) Meeks (NY) Shays Brown, Corrine DeLauro Hayes Bell Boyd Capuano Hastings (WA) Menendez Sherman Burns Doggett Hinchey Bereuter Bradley (NH) Cardin Hayes Mica Sherwood Burr Doyle Holden Berkley Brady (PA) Cardoza Hayworth Michaud Shimkus

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