E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 109 CONGRESS, FIRST SESSION

Vol. 151 WASHINGTON, THURSDAY, JUNE 30, 2005 No. 90—Part II Senate DOMINICAN REPUBLIC-CENTRAL ter of process and substance, in pro- pass—legislation that would address AMERICA-UNITED STATES FREE tecting workers’ rights and interests. these issues. That is the reason I will TRADE AGREEMENT IMPLEMEN- My colleague, Senator BINGAMAN, men- be voting against CAFTA when it TATION ACT—Continued tioned some of those concerns. comes up later today. I recognize that we should not kid The PRESIDING OFFICER. The Sen- There are real problems in the agree- ourselves into believing that voting ator from Illinois is recognized. ment itself. It fails to uphold the prin- against free-trade agreements will stop Mr. OBAMA. Mr. President, I ask for ciples set out in previous trade agree- globalization, especially agreements approximately 10 minutes. ments that say we must give equal pro- like CAFTA, where the countries in- Mr. BINGAMAN. Mr. President, may tection to the rights of workers and volved have combined economies one- I ask my colleague to yield for a unani- the rights of commercial interests. But sixth the size of the State of Illinois. mous consent request? CAFTA, while encouraging the protec- Globalization is not someone’s polit- tion of commercial rights, does less to Mr. OBAMA. I yield for that purpose. ical agenda. It is a technological revo- Mr. BINGAMAN. Mr. President, I ask protect labor rights than some of the lution that is fundamentally changing agreements that we have already unanimous consent that the order of the world’s economy, producing win- speakers be as follows: Senator OBAMA, passed. So there is a sense that we may ners and losers along the way. The be going backward instead of forward. 15 minutes from the time of Senator question is not whether we can stop it, Nor does CAFTA do much in the way of DORGAN; Senator BROWNBACK, 15 min- but how we respond to it. It is not enforcing environmental standards in utes from Senator GRASSLEY’s time; whether we should protect our workers these countries. Senator COLEMAN, 15 minutes from from competition, but what can we do I recognize that no piece of legisla- Senator GRASSLEY’s time; Senator to fully enable them to compete tion is perfect, and if it were just these CORZINE, 10 minutes from Senator DOR- against workers all over the world. GAN’s time; and Senator BURR, for 10 That brings me to the problem. So provisions, perhaps I could do what my minutes from Senator GRASSLEY’s far, America has not effectively an- colleague from New Mexico has done time. swered these questions, and American and obtain a letter of agreement from The PRESIDING OFFICER. Without workers are suffering as a result. I the White House, indicating they will objection, it is so ordered. meet these workers all across Illinois— try to address some of these problems. The Senator from Illinois. workers whose jobs moved to Mexico or But the real problem is more than Mr. OBAMA. Mr. President, as the China and are now competing with CAFTA. It goes beyond the four cor- previous speaker, I rise to speak on the their own children for jobs that pay $7 ners of this piece of legislation. The Central American Free Trade Agree- an hour and offer no health or pension real problem is what is missing, gen- ment. benefits. In town meetings and union erally, from our prevailing policy on I have thought long and hard about halls, I have tried to tell these workers trade and globalization: meaningful as- this agreement, and I come to the floor the truth—that the jobs they have lost sistance for those who are not reaping predisposed to support free trade. In are not coming back; that globaliza- the benefits of trade, and a plan to the end, I believe that expanding trade tion is here to stay; and that they are equip American workers with the skills and breaking down barriers between going to have to train more and learn and support they need to succeed in the countries is good for our economy and more to get the new jobs of the future. 21st century. for our security, for American con- I don’t mind delivering that message. So far, almost all of our energy and sumers and American workers. But when these same workers ask me almost all of these trade agreements On the margins, I recognize that exactly how are they going to get their are about making life easier for the CAFTA, although a relatively modest training and their education, and when winners of globalization, while we do trade agreement by the standards of they ask what will they do to pay for nothing for those who find their lives the U.S. economy, would benefit farm- their health care bills in the interim, getting harder as a consequence of ers in Illinois as well as agricultural and how will they deal with lower trade liberalization. In 2004, nearly and manufacturing interests across the wages and the general sense of finan- 150,000 workers were certified as having country. The language in the agree- cial insecurity that seems to be grow- lost their jobs due to trade and were ment is also optimal with respect to in- ing every single day, I cannot look thus eligible for trade adjustment as- tellectual property and telecommuni- them in the eye and tell them honestly sistance—and that number doesn’t cations, issues that are of particular that their Government is doing a single count the janitors and cafeteria work- interest when it comes to trade with thing about these problems. ers who may have lost their jobs. other countries, such as China. Unfor- Since I have arrived in the Senate, I Senator WYDEN and others have tried tunately, CAFTA falls short, as a mat- haven’t seen us debate—much less to encourage the Administration to

∑ This ‘‘bullet’’ symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor.

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VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00001 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7698 CONGRESSIONAL RECORD — SENATE June 30, 2005 modernize this assistance and expand globalization into a single trade agree- Mr. BROWNBACK. Mr. President, on it to displaced service workers, but the ment. But what I do expect—and I said this beautiful day in Washington, DC, Administration refuses to help on this this directly to the President when I we are about to create some great op- issue. met with him in the White House on portunities for Kansas farmers, Kansas But even beyond displaced workers, this matter—is that we at least have, manufacturers, and opportunities of our failure to respond to globalization on a parallel track, an effort to deal hope for people in Central America. is causing a race to the bottom that with the losers in globalization, our That is to me what this CAFTA bill means lower wages and stingier health displaced communities and displaced represents. I do not want to oversell it. and retiree benefits for all Americans. workers. We must not only look after I do not think it should be oversold. I It is causing a squeeze on middle-class profits and shareholders, but also those do not think it is a panacea for democ- families who are working harder but folks who are adversely affected by racy building or opportunity in Central making even less and struggling to trade. Lower prices are good and im- America. I do not think it is a panacea stay afloat in this new economy. portant, but we also have to make sure for all my farmers and manufacturers I recognize the soundness of the eco- that jobs exist that provide people the in the State of Kansas. But I do think nomic argument that free trade re- opportunity to raise a family. it is a little more good in the world, a duces overall prices in this country. Mr. President, in order to compete, little more good for opportunities for But as one downstate worker told me every single one of us is going to have people in the United States, lowering during a recent visit back in Illinois: to work more, think more, train more. tariffs and trade barriers in our neigh- ‘‘It doesn’t do me much good if I am I am not afraid of global competition, borhood, in this region of the world, a paying a dollar less on a t-shirt, but I and I don’t think a single American little more good and opportunity for don’t have a job.’’ worker is afraid of it. We cannot insu- economic chances and opportunities in So now we have to choose. It is a late ourselves from all of the disloca- Central America and the Dominican choice that is bigger than CAFTA and tions brought about by free trade, and Republic, chances that do not exist bigger than our trade agreements. It is most of the workers don’t expect Wash- today, chances that are not doing well one that America has faced time and ington to do so. On my side of the aisle, today in Central America, chances that time again in our history, and we have we cannot resort to protectionist lan- are hurting the spread of democracy, responded. To ease our transition from guage over the long term if we are, in free societies, even in our own hemi- an agricultural to an industrial econ- fact, going to be looking toward the fu- sphere. omy, we set up the public school sys- ture of America. We have the talent I was troubled recently when I read a tem, busted up monopolies, and al- and the brain power to continue to lead poll published by one of the major lowed workers to organize. To help us the world in this challenging new cen- newspapers in this country. The poll emerge from the Great Depression, we tury, but now we need the political was asking people in Central and South regulated the market, created unem- will. Now we need a national commit- America would they give up their de- ployment insurance, and provided all ment. And that, so far, is what appears mocracy if their economy would grow. workers access to a secure retirement. to be lacking on Capitol Hill. In other words, if a dictator comes in At the end of World War II, we grew In America, we have always and can produce economic reform and the largest middle class in history by furthered the idea that everybody has a opportunity where you would have a providing our returning heroes with a stake in this country, that we are all in growing economy instead of the stag- chance to go to college and own their it together, and that everybody de- nant situation you are in today, would own homes. serves a shot at opportunity. The im- you give up democracy? Now we face the same choice. We are balance in this Administration’s poli- A surprisingly large number of people at the same juncture today. We have to cies, as reflected in the CAFTA debate, said yes. I suppose in their hierarchy of decide whether we are going to sit idly fails to provide American workers with needs, what they were looking at is: by and do nothing while American their shot at opportunity. It is time we Look, democracy is great, but what I workers continue to lose out in this gave them that shot. need right now is a job, what I need new world, or if we will act to build a I yield back my time. right now is income for my family, community where—at the very least— (Applause in the Gallery.) what I need right now is to be able to everybody has a chance to work hard, The PRESIDING OFFICER. Expres- pay my bills and send my kids to get ahead, and reach their dreams. sions of approval or nonapproval are school. If I have to give up this other If we are to promote free and fair not permitted in the Senate Chamber. right to do that, I am willing to look at Who yields time. The Senator from trade—and we should—then we have to it. make a national commitment to pre- North Dakota is recognized. I was very troubled by that poll. I Mr. DORGAN. Mr. President, how pare every child in America with the have relatives traveling to Central much time remains? education they need to compete; to America talking with me in return The PRESIDING OFFICER. The Sen- make sure college is affordable for ev- about the troubling aspects of what ator from North Dakota has 1 hour 32 erybody who wants to go; to provide they are seeing in the willingness to minutes remaining. meaningful retraining and wage insur- Mr. DORGAN. How much time re- give up democracy and the fragility of ance so that even if you lose your job, mains for the Senator from Montana democracy in our own hemisphere be- you can train for another; to make and also on the majority side? cause of a lack of economic oppor- sure worker retraining helps people The PRESIDING OFFICER. There re- tunity. without getting them caught up in a mains 1 hour 11 minutes for the Sen- I think as well a lot of this is because bureaucracy; that such training helps ator from Montana, 5 hours 20 minutes of the juggernaut China is today, more service workers as well as manufac- for the Senator from Iowa. than we solve by CAFTA. CAFTA is a turing workers; and that it encourages Mr. DORGAN. Mr. President, it little more good. CAFTA is a positive people to reenter the workforce as soon would seem to me the Senator from step in the right direction for those de- as possible. Iowa would want to use some time at mocracies to build economies and for We also have to figure out a way to this point. I suggest the absence of a opportunities for us in this country. It tell workers that no matter where you quorum and ask that the time run is not opportunities for everybody. work or how many times you switch against the Senator from Iowa. There will be winners and some losers, jobs, you can take your health care and The PRESIDING OFFICER (Mr. COR- as there are in trade agreements, be- your pension with you always, so you NYN). The clerk will call the roll. cause on the basis of a trade agree- have the flexibility to move to a better The legislative clerk proceeded to ment, each country does what they do job or start a new business. call the roll. best and then you trade goods back and All of this is possible. It is not going Mr. BROWNBACK. Mr. President, I forth. Overall, the economy is lifted. to be easy, and it is not going to be ask unanimous consent that the order There are people who are dislocated quick. I don’t expect the Administra- for the quorum call be rescinded. and harmed in these processes. tion to try to shoehorn all the solu- The PRESIDING OFFICER. Without Overall, there is a betterment of soci- tions to the displacements caused by objection, it is so ordered. eties, cultures, and opportunities. That

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00002 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 30, 2005 CONGRESSIONAL RECORD — SENATE S7699 is what I think overall will take place trend lines. I have learned enough over and said: We want to reform, we want with CAFTA. the years to not rely upon these as to grow our economies and strengthen I do believe we have an extra issue money in the bank because factors democracy. that is at risk and is rewarded by come in to play—sanitary issues enter CAFTA is important. Democracy in CAFTA, and that is democracy build- the picture, and we have recently been Central America is still fragile. Pov- ing in our hemisphere. I do not think it wrestling with BSE. Those all are erty is endemic. There is weakening can be put forward too lightly. major factors. Still, it points to a posi- enthusiasm for democracy. Pressures While I do not think people in Cen- tive trend line. are already present in Nicaragua. That tral America will say, OK, I am going As the Nation’s top wheat exporter is what we have. to rejoice with the passing of CAFTA, and with State farm cash receipts of We have to be realistic about that this is going to solve all my prob- $1.3 billion, Kansas wheat producers CAFTA. It alone is not going to ensure lems, I do think it will remove a great will benefit from CAFTA. Grain sup- democracy or prosperity in Central deal of hope if this does not pass. It pliers will benefit from zero tariffs im- America, but it will put in place build- will certainly have a negative impact mediately on wheat in all six coun- ing blocks for economic growth in the in Central America if it does not pass, tries, as well as some processed grain future. It will help these nations com- and I think we have to look at that as products. pete with the face of a rising China well. Again, the American Farm Bureau and, perhaps most of all, CAFTA is a Everybody has heard the numbers economic analysis of CAFTA estimates political message that the United until I am sure they are blue in the that Kansas will increase wheat ex- States recognizes how far these nations face. The U.S. tariff regime is one of ports to the six countries by $8 million have come and stands shoulder to the lowest in the world, 3 percent. For per year. Again, this is after full imple- shoulder with our democratic hemi- a State such as mine, Kansas, having mentation of CAFTA. That is some spheric neighbors. That is important. open markets is vital for the expor- time in the future. Its economic anal- I try to guide myself at times by the tation of agricultural commodities. ysis could well be off, but it shows a physicians’ adage, which is, ‘‘Do no The aircraft industry is also dependent generally positive trend line—small harm.’’ Up until 2 days ago as I looked upon an export market. So additional but positive. That is why I say a little at CAFTA, it did harm. It did harm to liberalization should benefit our pro- more good in the world for my pro- an industry that is very important to ducers. ducers. me in Minnesota. I represent probably About one-third, or $3 billion in farm I conclude by saying, as we continue the largest production of sugar beets in cash receipts out of a total of $9 billion to fight this global war on terrorism, the country. People say: You are pro- of gross farm income in Kansas comes we must continue to spread democracy tectionist of an industry. It is not from exports. Kansas ranks sixth in the and hope throughout the world. Engag- about an industry, it is a matter of Nation for States with the greatest ing in free trade practices and policies 40,000 moms and dads whose economic share of agricultural exports. Move- helps improve relationships with other livelihood is dependent on what hap- ment toward freer economies is helpful countries and improves the standard of pens with sugar. There is $2 billion a in doing that. I want to focus briefly in the time I living in these developing countries. year injected into that economy in have on a couple of specific products Helping to improve other countries’ that region, and that is important. As my colleagues know, yesterday that will benefit my State. As I men- standard of living will result in a more tioned, we have a heavy agricultural hopeful society and a more peaceful the Agriculture Committee chairman, export industry. Agricultural exports world. SAXBY CHAMBLISS from Georgia, and I support some 47,000 jobs in Kansas. I Certainly we have learned over the secured a commitment from the White think, in this particular case, we have years that democracies are far easier House to address the serious concerns a decent chance of expanding more ag- and better for us to deal with. If we can we had regarding CAFTA and sugar. ricultural exports. help strengthen democracy, particu- Chairman CHAMBLISS—I don’t think Beef is our largest section of the ag- larly in our hemisphere, by this pas- they grow a lot of sugar beets in Geor- ricultural economy of my State. We sage, minor as it might be as a positive gia. In fact, I was expecting by the end are the second largest beef exporter in point, that is a good and hopeful sign of that negotiation that there would be the country. As I mentioned, it pro- and something we should do. a peach-to-ethanol program coming out vides the single largest source of cash I support CAFTA, and I urge my col- of that arrangement, but that did not receipts in agriculture in my State at leagues to vote in favor of passage of happen. over $5.6 billion. We believe CAFTA the CAFTA trade agreement. Chairman CHAMBLISS made it very will help the cattle industry. Mr. President, I yield the floor. clear that he is going to protect the Pork producers, who add about $252 The PRESIDING OFFICER. The Sen- farm bill, see the continuation of the million to Kansas annually, will also ator from Minnesota. farm bill which is set to expire in 2007. benefit from the trade agreement. Mr. COLEMAN. Mr. President, I rise As we looked at CAFTA as we nego- Current import tariffs on U.S. beef in support of CAFTA. There are a lot of tiated, it would have violated the farm exports is as high as 30 percent in some reasons to support this trade agree- bill in that it had the prospect of hav- of these countries. Duties on the prod- ment. I came to this decision, by the ing sugar from CAFTA countries enter- ucts most important to the U.S. beef way, in the last couple of days. ing this country, if it reaches a certain industry—prime and choice cuts— As chairman of the Subcommittee on level and goes over that—I will not get would be eliminated immediately in Western Hemisphere, Peace Corps, and into the technicalities of the sugar pro- these Central American countries. Narcotics Affairs of the Foreign Rela- gram—one sees the collapse of the I don’t want to paint that again as a tions Committee, I understand how sugar program. One sees sugar forfeited panacea because I don’t think there is pivotal CAFTA is on U.S. foreign pol- to the Government, prices falling, eco- going to be a large initial export. There icy goals, not just in Central America nomic disaster for those involved in is not a large market of that cut ini- but Latin America and the Caribbean. the sugar industry. tially, although there is market oppor- There are folks in Latin America look- So Chairman CHAMBLISS showed tunity. ing at this agreement and what we do great leadership and great courage in The American Farm Bureau Federa- with it. I think they are going to judge saying he was not going to support tion economic analysis of CAFTA esti- us as to whether we are committed to CAFTA because it had this hole in the mates that Kansas will increase meat strengthening this hemisphere, com- agreement that would in the end per- exports to the six countries by $130 mitted to strengthening the democ- haps amount to a violation of provi- million per year on the full implemen- racies that are now in Central Amer- sions of the farm bill. He stood firm. tation. That full implementation has a ica. There have been decades of civil Together, then, with a number of our very long window to it, 2024. This is war. We have democracies flourishing other colleagues, both in the House and some period to come. in Central America. Every President in the Senate, he had a series of discus- These are economic analyses which those countries was democratically sions with the administration, with the are useful to use to generally show elected. These leaders have come to us sugar industry, and got a commitment.

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00003 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7700 CONGRESSIONAL RECORD — SENATE June 30, 2005 Again, I want to thank Chairman The commitment has been made. The Without it, the Red River Valley has CHAMBLISS, who stood with those of us commitment stands. It is through the zero protection from NAFTA, zero pro- who represent sugar, though that was length of the farm bill. The farm bill tection, obviously, from CAFTA which not a personal thing. It was simply the goes for another 3 years, but if it we are talking about today, zero pro- right thing to do. That is the way he should be extended—and I think it tection from future trade agreements. operates, with good Georgia common should be—the White House commit- Again, under NAFTA alone there is sense and that incredible Georgia ment is also extended. some discussion of perhaps 900,000 tons strength. The bottom line is this: Not only do of Mexican sugar pouring in over the The commitment we have from the we prevent CAFTA from breaking the border the next couple of years. With- administration pledges to ensure that farm bill limit on sugar imports, but out this protection, without this com- the maximum sugar import cap estab- we prevent NAFTA and all future trade mitment, prices would tank and the lished under the 2002 farm bill will agreements from breaking the farm U.S. sugar policy would be placed in se- never be violated through the life of bill cap as well. rious jeopardy. That keeps me up at this farm bill. So that magic level of In addition, what we do—and I think night. That worries me. 1.532 million tons that we call short this is so critically important—is lay I am going to sleep a little easier tons is not going to be violated. This the ground for the long-term future of knowing that my farmers are protected commitment was made in the context the U.S. sugar industry which lies not with this commitment. That is what of CAFTA, but the commitment is not just in production in the United we have then, this 3-year window to limited to CAFTA and that is impor- States—because we do not export sugar turn all the attention and energy we tant. During the course of our discus- to other countries; it is for domestic had to focus on the past on putting our sions, we became aware that other consumption—but production to fuel fires toward creating a positive solu- things were going on regarding sugar, our country through renewable fuels tion and a future for this industry. that under NAFTA we were facing a right alongside corn and soybeans. That is my choice. That is the future situation in which resolving a high That is the future. that I choose. fructose corn syrup issue that involves This country is beginning to under- That said, let me be very clear about the ability for us to bring more of that stand that we simply cannot deal with something, and I want to lay this on into Mexico, the result would have the continuing increase in imports of the line, kind of talk as we look to the been more Mexican sugar coming into foreign crude. A barrel of oil is $60. A future. Two years ago, I said sugar the United States and, again, then price of a gallon of gas is $2.30, $2.40, should not be included in these bilat- going over this level and triggering the $2.50, $2.70. We have our own oilfields, eral regional agreements. We would not collapse of the program. and there are cornfields, soybean fields, have these discussions, if that was the In the end, as I stood there working and sugar fields, beet and cane. They case. Just as domestic support for for my sugar growers and those whose are providing an opportunity—we have every other American farmer is not in- livelihoods depend on sugar, I wanted sugar now on the path. cluded in these kinds of agreements, to make sure our folks were held harm- I know many of my sugar farmers sugar was not asking for anything spe- less by CAFTA. We got that commit- and cooperatives do not agree with me cial. The fact is, sugar should not be ment from the administration. We on this commitment, do not agree with included in these agreements because wanted to make sure they were held me on this solution. I respect that. the distortions in a global sugar mar- harmless by the impact of what is hap- What we have is a concern that they ket cannot be addressed fairly in any pening with NAFTA. We got a commit- would much rather see a permanent so- other setting other than WTO. This has ment to hold them harmless during the lution. We have permanent solutions to be addressed on a global perspective; course of this farm bill. now with corn into ethanol and soy- otherwise, what we have is little bits Then we were concerned about other beans into ethanol. These are dedicated and pieces come in. Ultimately, we trade agreements that are being nego- folks. They sat at the table the whole flood this country without dealing with tiated at this time. There are discus- time. what is happening in this global envi- sions with Panama, discussions with One of the critics of this proposal or ronment. Thailand, all of which could have had commitment that I have, and I take it Europeans have a lot more protective the same effect of reaching that max- seriously, said, this is a Band-Aid on a interests and support they provide for imum sugar import cap and violating gaping wound. I would say to my their sugar growers than what we face and causing a collapse of the program. friends at American Crystal, at Minn- right here. So every sugar-producing We wanted to be held harmless for Dak, at Southern Minnesota, and other country in the world subsidizes and that, our sugar growers did, and we got cooperatives and other places through- supports this industry, which is why them that commitment. out the country that, in fact, there is a American sugar farmers, who are Under this agreement any sugar im- gaping wound; that the sugar industry among the top third in efficiency, need ports above the current cap established is one that is right now in a fragile a strong U.S. sugar policy to stand by the farm bill, whether under place. I would argue that rather than a with them. CAFTA, NAFTA, or any other trade Band-Aid, this is a tourniquet; that for We did what is right in the Aus- agreement, would be denied entry into 3 years we stop the bleeding; for 3 years tralian agreement, which is why it the United States altogether unless an we then will be able to begin to develop passed so quickly. For some reason, equivalent amount of U.S. sugar is con- a nascent sugar-to-ethanol industry; this common sense did not show verted into ethanol or other nonfood that we then get ourselves to focus on through when CAFTA was negotiated. uses with at least 109,000 tons—and the next farm bill and try to make sure Again, the good news is in the near that is what we would have gotten we have a program that has greater term we have a commitment from this from NAFTA—being converted to eth- permanence, that has greater long- White House to hold the U.S. sugar anol under a pilot program run by the term security so the kids in Fisher and program harmless not only under USDA. Hallock and throughout, certainly. CAFTA but under NAFTA and any fu- In addition, we received a commit- Western Minnesota can go to school ture trade agreements. ment to begin a study on the long-term with moms and dads not worrying At the end of the day, let me say that promise of the sugar-to-ethanol pro- about their jobs. I am talking not just I share the disappointment of those in gram. That promise is real. I was in farmers but truckers and factory work- the sugar industry who want some- Brazil not too long ago. Fifty percent ers and seed dealers and implement thing more permanent, but I do feel I of all the new cars in Brazil run on eth- dealers. The list goes on and on. Up and have to grab hold of the possible when anol. Those cars are manufactured— down Main Street, sugar makes a posi- the optimal seems to be out of reach. I the largest manufacturer is General tive mark on communities throughout think politically it would be easy for Motors, an American manufacturer, my State. So, for me, this is worth me to just cast a ‘‘no’’ vote, just say to and all the ethanol in Brazil is done by fighting for. It is worth defending. my producers the industry does not sugar. So we know the rest of the world That is what I believe we have done like this and kick the can down the does it. We can do it here. with this commitment. road. Then, if 900,000 tons of NAFTA

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00004 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 30, 2005 CONGRESSIONAL RECORD — SENATE S7701 sugar gets dumped in, I can maybe pre- own way represents, in a very strong year. Furthermore, the Secretary com- tend that it is just enough to be angry, manner, the constituents who sent mitted to holding the sugar program just enough to say why did we not do them here. Nobody has represented harmless for the next 21⁄2 years, to the something. their constituents better over the last completion of this farm bill, from any The easy thing is not always the several weeks relative to this issue of harmful effects of CAFTA, of NAFTA, right thing to do. Sometimes when one CAFTA, and particularly the sugar and of any other trade agreement that is dealing with friends, they have to be issue, like NORM COLEMAN has. may be negotiated during the interim told they are wrong. Sometimes leader- Senator COLEMAN has been a true ad- period. ship is letting people know that we vocate for the interests of his State. Mr. President, I ask unanimous con- have to go to a certain place even if They need to erect a big sugar beet for sent the Secretary’s letter be printed they do not yet see the righteousness him and call it the Senator COLEMAN in the RECORD. of going there. Memorial back in Minnesota. There being no objection, the mate- The right place to be is to have this I rise today to support the Domini- rial was ordered to be printed in the insurance policy, to have protection can Republic-Central America Free RECORD, as follows: from CAFTA, from NAFTA, from fu- Trade Agreement or DR–CAFTA. Ear- THE SECRETARY OF AGRICULTURE, ture trade agreements, and really im- lier this year, I expressed opposition to Washington, DC, June 29, 2005. Hon. SAXBY CHAMBLISS, portant, get us involved in the sugar- DR–CAFTA since a provision in the Chairman, Committee on Agriculture, Nutrition to-ethanol industry. agreement violates a part of the 2002 and Forestry, Russell Building, Wash- Last comment: I listened as I sat in farm bill. ington, DC. the Presiding Officer’s chair to a lot of As chairman of the Senate Agri- Hon. BOB GOODLATTE, debate. I heard so many of my col- culture Committee, I have a responsi- Chairman, House Agriculture Committee, Long- leagues today saying we have to be bility to the agricultural community worth Building, Washington, DC. doing more for Central America, except to ensure Congress fulfills the commit- DEAR CHAIRMAN CHAMBLISS AND CHAIRMAN ments that we made to farmers and GOODLATTE: The purpose of this letter is to the one thing Central Americans say provide assurance that the Dominican Re- they want and need most. It reminds ranchers back in 2002 when we nego- public-Central America-United States me of a joke we have in Minnesota tiated the farm bill and when it was (CAFTA–DR) Free Trade Agreement will not about the Scandinavian guy who loved passed by the House, by the Senate, interfere with our ability to operate the his wife so much he almost told her. and signed into law by the President. sugar program in a way that provides the I listened to my friends across the My specific concern centered on a full benefit to domestic growers through the aisle and they tell me they care so provision that severely impacts the im- remainder of the Farm Security and Rural plementation of the farm bill by in- Investment Act of 2002. much, and we have to be doing more, The Farm Bill contains a sugar ‘‘import but they do not want to do anything. creasing sugar imports into the United trigger’’ of 1,532 million short tons which if They want to protect the workers, States. exceeded precludes the use of domestic mar- those in Central America, give them We grow very little sugar in my keting quotas and thus could prevent the economic opportunity. Listen to their State. This is not a parochial interest program from being operated on a ‘‘no net elected leaders who say this is impor- to me. Senator COLEMAN is right, per- cost’’ basis as required by the law. tant rather than lamenting what we haps I should have negotiated a peach, Since the U.S. Government already is obli- tobacco, or cotton ethanol provision in gated under international agreements to im- should have done or could have done port annually 1.256 million short tons, there but did not do. here. My whole point in this matter is is some concern that annual imports from We have an opportunity to do some- that we have to maintain the integrity NAFTA, CAFTA, and other trade agreements thing, and that is what we are doing. In of the farm bill. It could just as easily in addition to this amount could exceed the the end, my decision was only made in have been a corn issue, wheat issue, or Farm Bill trigger and thus jeopardize oper- the last couple of days because the con- a peanut issue, but it just happened to ation of the program. However, the Charter cern about sugar has been so great. be sugar. This could potentially result Act of the Commodity Credit Corporation in exceeding the import trigger pro- (CCC) provides additional tools required to Maybe it is the dad on me who focuses preclude that eventuality. not so much on the ones who are doing vided for in the farm bill. In the event I determine that sugar im- well but the ones who need a little Exceeding the import trigger is of ut- ports will exceed the current Farm Bill trig- help. Our friends in sugar needed a lit- most concern because it is designed to ger, appropriate steps will be taken to ensure tle help after this agreement was nego- manage domestic supplies and ensure the program is not put at risk. As Secretary tiated. We provided that help. the program operates at a no net cost of Agriculture, I have the authority to pre- Doing that, I can then stand with all to the U.S. taxpayer. The DR–CAFTA clude the actual entry of imported sugar into could compromise that trigger when the domestic sweetener market by making the other producers in my State: the payments to exporters and direct purchase of commodity groups, the cattlemen, the combined with existing commitments the sugar for restricted (nonfood) use, in- corn growers, the soybean growers, the to Mexico under the North American cluding ethanol. It would be my intention to pork producers, the businesses, the Free Trade Agreement, or NAFTA. use agricultural commodities in payments or chambers of commerce, the high-tech In addition, the so-called compensa- to make direct purchases. folks, the 3Ms—all who say this is a tion mechanism in the DR–CAFTA Two possible situations could obtain: good thing for jobs in Minnesota, this does not provide any additional com- If I determine that the Farm Bill import fort. I do not think it is a good idea to trigger will be exceeded and that the domes- is a good thing for the economic future, tic market is adequately supplied with sugar and as a result I will cast my vote for pay other countries not to import (i.e., that the imported quantities above the CAFTA. sugar into the United States when we trigger will jeopardize sugar program oper- I yield the floor. can use those resources to promote fuel ation), then I will direct that excess im- The PRESIDING OFFICER. Who security here at home. I believe we all ported sugar up to an amount equivalent to yields time? should be chastised back home if we let the CAFTA–DR imports be purchased by CCC Mr. CHAMBLISS. Mr. President, I that happen. and be made available for conversion into ask unanimous consent that my time There have been several long weeks ethanol. Excess sugar above that amount be charged against that of Senator of discussions between the administra- could either be precluded entry by payment to exporters or made available for non-food GRASSLEY, please. tion, which included the White House, use, as I deem appropriate. The PRESIDING OFFICER. Without USDA and USTR officials, Senators If I determine that the amount of sugar objection, it is so ordered. and House Members, and industry rep- that can be provided by domestic growers Mr. CHAMBLISS. Mr. President, I resentatives. After much hard work, plus the minimum import requirement is in- first want to say thanks to my good the administration has agreed to a pro- sufficient to meet the domestic market’s friend from Minnesota for his kind posal that addresses my concerns rel- needs and that imports sufficient to do so comments. I am going to have more to ative to this trade agreement. will exceed the Farm Bill import trigger, say about him in a few minutes. The Secretary Johanns has sent me a let- then those imports will be allowed and no sugar would be diverted for conversion to one thing we all find out in this great ter that provides assurances that the ethanol. institution that we have the privilege sugar program will operate as we origi- In addition, USDA will undertake a study of serving in is that everybody in their nally intended through the 2007 crop of the feasibility of converting sugar into

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00005 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7702 CONGRESSIONAL RECORD — SENATE June 30, 2005 ethanol. Data obtained from any conversion are going to take another crop, sugar, The DR–CAFTA region is an impor- of sugar to ethanol, as noted above, will be- and we are going to convert sugar into tant trading partner with Georgia. come a part of the study analysis. This study ethanol in much the same way that we Georgia’s exports to the DR–CAFTA re- will be completed and submitted to the Con- convert corn into ethanol, so we can gion increased $113 million from 2000 to gress not later than July 1, 2006. Such actions would ensure that the Farm have a greater supply of an alternative 2004, and collectively the countries of Bill trigger is not exceeded to the disadvan- fuel, other than gasoline, for use by the DR–CAFTA were Georgia’s 9th largest tage of growers and that U.S. sugar proce- American consumer. export destination. dures will still have a share of the market no Under this agreement, the Secretary According to the Department of Com- less than the amount provided for by the will have the ability to meet any merce, the DR–CAFTA will help Geor- Congress through the sugar program. changing domestic market conditions. gia’s textile manufacturers, chemical I will establish a special monitoring mech- If the amount of sugar provided by do- and paper manufacturers, as well as anism to review all U.S. Customs, Bureau of mestic growers, plus the minimum im- Georgia’s farmers, because DR–CAFTA the Census, and other import data through port requirement, is insufficient to the year. This mechanism will enable me to provides U.S. suppliers with access to stay apprised of the pace of imports and to meet the domestic market’s needs and these markets and levels the playing use the Charter Act authorization in a time- imports sufficient to do so will exceed field with other competitors. ly manner. Also, the Office of the U.S. Trade the farm bill import trigger, then those Let me take a moment to praise the Representative has analyzed this approach imports will be allowed and no sugar efforts of the Secretary Mike Johanns and concluded that it is not inconsistent would be diverted for conversion to and U.S. Trade Representative Rob with our World Trade Organization obliga- ethanol. Portman for their hard work and their tions. Another important aspect of this tireless efforts. These officials ad- Sincerely, agreement will ensure that the USDA dressed each and every issue that we MIKE JOHANNS. will review all U.S. Customs, Bureau of discussed. Without their good-faith ef- Mr. CHAMBLISS. Specifically, if the Census, and other import data to mon- forts, this agreement simply would not farm bill import trigger is exceeded itor imports throughout any given have been possible. and the domestic market does not need year. Many of us have heard criticism Special note should also go to my additional quantities, then the excess with regard to past trade agreements good friend, Senator NORM COLEMAN. imported sugar, up to an amount about lax enforcement and implemen- His leadership and hard work in this ef- equivalent to the DR–CAFTA imports, tation of their provisions to the det- fort has only increased my enormous will be purchased by the Commodity riment of our producers. This will help respect for him. We have worked very Credit Corporation and made available address those concerns. closely over the past couple of weeks for conversion into ethanol. Excess In spite of the letter from Secretary helping lay the foundation for a long- sugar above the trigger in the DR– Johanns and the assurances of the ad- term and profitable future for the U.S. CAFTA amount would be precluded ministration, the sugar industry op- sugar industry. He is a workhorse, and entry by payment to exporters or pref- poses this agreement and will not sup- I want him on my side every time. erably directed to other nonfood uses, port passage of this trade agreement. Let me conclude by saying I am very such as additional ethanol production. While I may disagree with their conclu- pleased with what we have crafted. I think this is a very important de- sions, that is their right. I want to say, This agreement will protect the sugar velopment, since it is the first time the at this time, that we have had a num- industry for the next 21⁄2 years, through Department is committing itself to a ber of meetings between Members of the life of this current farm bill. It de- sucrose-to-ethanol program. The De- the House, Members of the Senate, serves the support of the Congress. I partment will also conduct a feasi- members of the industry—which have look forward to voting for DR–CAFTA. bility study examining the economics included USTR and other administra- The PRESIDING OFFICER. The Sen- of sucrose-based ethanol. The study tion officials, including Secretary ator from New Jersey is recognized for will be completed and submitted to the Johanns. We have had meetings with 10 minutes. Congress not later than July 1, 2006. them and without them. At every sin- Mr. CORZINE. If the chair will be so This should be enough time for us to gle crossing, the sugar industry has ne- kind to let me know when I have 2 min- use the information contained in the gotiated in good faith and they have utes left? study to develop a long-term future been very straightforward and above The PRESIDING OFFICER. Cer- program for the sugar industry in the board with us. I commend those men. tainly. next farm bill. It is a great country that we live in Mr. CORZINE. Mr. President, let me On Tuesday of this week, we passed a that will allow us to dialog over an say from the start, I have thought very historic bill in this body. Our issue that is so important, as is this, to about this long and hard. I believe in country has the greatest natural re- those farmers, to the Members of the the seriousness and the potential for sources of any country in the world, House, and the Members of the Senate, free-trade agreements. But after look- but yet we have never established a as well as to others who have a signifi- ing at this particular one, and looking long-term energy policy. For the first cant interest in this, and to come out at it in the context of our overall mac- time in the history of the country we at the end of the day with an agree- roeconomic policy, I am unfortunately passed an Energy bill that will move us ment with which some of us agree but going to have to vote against this pro- in the direction of becoming less de- with which others still have the oppor- posed Dominican Republic-Central pendent on foreign imports of oil for tunity to disagree. America-Free Trade Agreement. our petroleum and other fuel needs in This agreement can be a real building I have supported other agreements: this country. A major part of that En- block for sugar provisions in the next Australia, Jordan, and Morocco. I be- ergy bill was a provision for alter- farm bill. Let me emphasize that my lieve in comparative advantage. There native fuel resources like ethanol. In concerns have been fully satisfied, and are lots of good reasons why free-trade fact, there is a provision in there for I do plan to vote in favor of DR– agreements that are fair are ones we the production of 8 billion gallons of CAFTA. ought to promote. But they need to ethanol per year in this country, which This trade agreement is also impor- preserve and protect important labor, would be great if we could produce that tant to many people in my home State environmental, and security interests amount and have it available all across of Georgia. I have heard from many as well. I do not think this one does America and not in the limited areas workers who will reap the benefits of that. As a matter of fact, a trade agree- where it now is used. increased trade with Central America ment between the United States and The reason it is in limited areas and the Dominican Republic. Reducing Central America with the proper safe- today is because we simply do not have trade barriers will not only enhance guards I think is a good thing. I just do the production of organic-based mate- American economic growth but will not believe that we have embedded rial to provide ethanol all across Amer- greatly benefit businesses in Georgia as those in this particular agreement. ica. But with this provision that has well, by allowing more Georgia-made American workers justifiably feel in- been negotiated as a part of this agree- products to be sold into Central Amer- secure in today’s economy, particu- ment with the Secretary and USTR, we ica. larly with the outsourcing or exporting

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00006 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 30, 2005 CONGRESSIONAL RECORD — SENATE S7703 of American jobs that comes from so doing it with a blind eye to major prob- If we are not going to have strong much of our trade policy. People are lems in our trade policy. labor, strong environmental rights, if concerned whether those American That is the major reason I am voting we are not going to get some kind of jobs are going to stay at home. The in- against it. There are a whole host of benefit, a major macroeconomic ben- creasing trade deficit puts an excla- other issues that need to be considered. efit, I don’t understand why we are ap- mation point on ‘‘there is something What happens to labor rights and what proving all of these trade agreements. afoul’’ with our trade policy. happens to environmental rights not That is why I will be voting no on this All I have to do is point to this chart. only with regard to our workers but in CAFTA legislation before the Senate. Since 1993, when we started with those countries themselves? Where are I yield the floor. NAFTA to where we are today, we have we going to go, when we look at the The PRESIDING OFFICER. The Sen- seen nothing but red ink flow from the lack of enforcement with regard to ator from Ohio. trade agreements and trade arrange- labor principles in those individual Mr. DEWINE. Mr. President, I yield ments that we have. Something is not countries? The same thing goes for en- myself 10 minutes from the time of working. vironmental issues. I don’t understand Senator GRASSLEY. I would like to understand how this why we are ceding the ground on these Mr. DORGAN. Mr. President, I shall agreement is not just another piece, issues. Believe me, we have enforce- not object, but I wonder if I might add another one in a long line of bad trade ment standards with regard to com- to the unanimous consent request. Sen- agreements. Before we rush forward mercial rights and investment rights, ator DEWINE has asked for 10 minutes with this, I would like to understand but when it comes to working men and of Senator GRASSLEY’s time; we ask what is happening that has brought women, when it comes to our environ- that Senator BYRD be recognized for 20 about this kind of problem. We have a mental protection—which, by the way, minutes from my time following the $617 billion trade deficit on an is a global issue—we just say it is up to presentation by Senator DEWINE; fol- annualized basis this year. I believe we them with regard to their own stand- lowing that, Senator BURR be recog- have a lot of evaluation that needs to ards. nized for 10 minutes from Senator That is not the way to do business, in be taken before we step forward on GRASSLEY’s time; following that, Sen- my view, and I think this is a failed this. We are clearly on the wrong ator REID will be recognized for 10 min- piece of legislation. It is a step back track, based on the policies that we utes from Senator BAUCUS’s time. I ask from what we did with Morocco and have. that by unanimous consent. Jordan and other trade agreements On a parochial level, since NAFTA The PRESIDING OFFICER. Would that had positive enforcement respon- was implemented back in 1994, New the Senator specify which Senator sibilities with regard to labor and envi- Jersey has lost 130,000 manufacturing REID? ronmental rights. This harms workers jobs. We used to have about 25 percent Mr. DORGAN. Senator REID from Ne- in those countries, not only harming of our workforce in the mid-1980s in the vada. workers in the United States. The PRESIDING OFFICER. Without manufacturing industry. Today it is There is a very clear example. I want objection, it is so ordered. below 9 percent. to talk a little bit about it. NAFTA’s Mr. DORGAN. Thank you. I apologize We have seen the textile industry in liberalization, so-called, was supposed for interrupting my colleague. New Jersey absolutely decimated. to promote job growth in Mexico. It The PRESIDING OFFICER. The Sen- From the economic calculations that I lost 1.7 million rural farmers their ac- ator from Ohio is recognized for 10 min- have seen, 46,000 of those 130,000 manu- cess into the agricultural sector in utes. facturing jobs lost were due to NAFTA. Mexico, with the only increase, of Mr. DEWINE. Mr. President, DR– We had great companies—Allied Sig- about 800,000 new jobs, in the industrial CAFTA is good for my home State of nal, American Standard. All of Patter- sector. Some of those are now leaving Ohio, and it is good for our country. son’s textile industry left our State. because they are losing out to other I was in the House of Representatives We have had enough of it. I think we parts of the world that have even lower in the 1980s when significant strides need to understand what we are doing labor standards and environmental were made toward democracy in Cen- and what the implications are for standards and lower costs of labor. tral America. We all remember that working men and women of this coun- There is something wrong with this vi- struggle. We all remember the re- try of another free-trade agreement. cious cycle of eroding jobs here at sources that were put into Central If you put this into a context that home, even in some of the places that the gross metropolitan product of the we think we are promoting them, America by the United States. It is city of Newark is $103 billion, and this through these free-trade agreements, time for us to refocus on Central Amer- is only $85 billion for all these coun- and we have to get this settled out. ica. If Central America is going to tries—I don’t understand why this is I do not understand why we continue flourish, if democracy is going to con- such a priority, particularly given all to stay on the same track—and I am an tinue in Central America and the econ- the other issues that we have in this old, washed-up businessman. I believe omy is going to develop there, this is country and particularly while we are in making sure the comparative advan- an essential component of that, an es- thinking about it in the context of a tage follows in the proper way. If it sential piece of that. While it is true $617 billion trade deficit. turns out you go from a balanced trade that DR–CAFTA is only one piece of I don’t think we have our priorities arrangement to a $617 billion trade im- the puzzle, it is an important piece in ordered right here. I particularly think balance in a given year, and you have determining the economic health of we do not have them ordered right seen almost nothing but a straight line our neighbors to the south. Also, it is when you compare this issue with our fall off in our ability to export our important to our own Nation as well. trade deficit with China, which is $162 goods on a relative basis to the rest of DR–CAFTA is about fairness. It is billion. This, I am told, is the No. 1 pri- the world, we are making a big mis- about reciprocity. It would provide ority of the administration with regard take, and we have a lot to reevaluate. U.S. exporters with the same market to trade policy. Where does that come It is time for a change with regard to access to Central America that Central from, when we have all of these dif- our trade policies because they are not American exporters unilaterally re- ficulties in our trade arrangements? working economically and we are los- ceived through the past 20 years China has had a fixed currency peg- ing our ability to control our own des- through various trade agreements. ging versus the dollar since the late tiny in our foreign reserves in other These trade agreements led to a one- 1990s, not working to protect intellec- countries. It is not working because we sided lowering of tariffs. Currently, ap- tual property rights between our two are losing jobs at home and under- proximately 80 percent of Central countries, and there are all kinds of en- mining working men and women’s abil- America’s exports enter the United forcement issues with the WTO. I don’t ity to have a high-quality standard of States duty free. This unilateral tariff get it. Where are our priorities? We living, and we are not particularly reduction helped Central American have a $617 billion trade deficit. We are helping others overseas. It is not a net countries export to the United States talking about something that will be a boom for the countries we think we are but left U.S. producers facing steep and minuscule piece of that. And we are trying to support. often prohibitive tariffs when they

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00007 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7704 CONGRESSIONAL RECORD — SENATE June 30, 2005 tried to export their own goods into Ohio Poultry Association, the Ohio Mr. President, on April 6 of this year, Central America. Dairy Producers, the Ohio Cattlemen’s Senator DORGAN and I introduced S. With DR–CAFTA, more than 80 per- Association, the Ohio Farm Bureau, Res. 100, a resolution to prevent a 2- cent of U.S. manufacturing exports to the Ohio Farm Growers, and the Ohio year extension of the so-called fast the region will be duty free imme- Wheat Growers Association all support track or trade promotion authority, diately, and the remaining tariffs will DR–CAFTA. Those are just the sup- which the Congress granted the admin- be phased out over 10 years, including porters in the Ohio agricultural sector. istration in the Trade Act of 2002. If the up to 15 percent tariffs on some of While many are helped by free trade, our resolution were approved, existing Ohio’s top exports to the region such as we understand whenever we have free fast-track negotiating authority would chemicals, electrical equipment and trade legislation or free trade there are expire this year. If only it would. If appliances, machinery, plastics, rub- some individuals in society who are only it would. Wouldn’t it be ideal if it ber, paper, processed foods, and trans- hurt. We need to make sure we always would expire? I think so. But, instead, portation equipment. For Ohio’s agri- are concerned about them, that we pass it will be extended through 2007. That cultural producers, DR–CAFTA would legislation that assists them, and we is a crying shame. eliminate tariffs on 50 percent of U.S. must continue in this Congress to do Senator DORGAN and I introduced exports immediately and most remain- that. Yet if we turn our backs on free that resolution of disapproval to fast ing duties within 15 years. trade, we would ultimately have far track because we oppose giving any ex- A perfect example of the benefits of more unemployed Americans, and our ecutive—any chief executive, Democrat DR–CAFTA is a situation faced by economy would be a fraction of what it or Republican—the unfettered author- Heinz. Heinz has a catsup production is today. ity to negotiate trade agreements such facility in Fremont, OH, where they For example, in the first year after as CAFTA which cannot be amended by produce 80 percent of the catsup con- the enactment of the United States- the Congress. It cannot be amended. sumed in the entire United States. Chile Free Trade Agreement, Ohio’s ex- All of this praise I hear of CAFTA—we Heinz also produces numerous other ports to Chile grew 20 percent; and have too little time here to consider condiments throughout the United since NAFTA was enacted in 1993, and no time to amend. We cannot States. Yet Heinz faces 15 to 47 percent Ohio’s combined exports to Canada and amend. Too little time. Too much tariffs on their products when they try Mexico have increased by more than praise. Too much short shrift. Too to export to Central America. DR– 106 percent. More exports means more much short shrift is given to this, the CAFTA will change that. CAFTA will jobs for Ohio and more jobs for our Constitution of the United States, help ensure that the up to three gen- country as a whole. which I hold in my hand. Yes, too much erations of workers in Fremont, OH, in Mr. President, as I said already, DR– praise, too little time, too much short that factory will have jobs for them- CAFTA is good for Ohio, it is good for shrift. selves, jobs for their children when the United States. I urge my colleagues I opposed fast track when it was used they grow up. This is just one example to vote in favor of this important free- to negotiate the NAFTA; I opposed fast of why Ohio needs DR–CAFTA and why trade agreement. But let me say one track when it was used to negotiate this entire country needs DR–CAFTA. additional thing. As much as I support the Uruguay Round; and I oppose fast Another good example is Polychem, DR–CAFTA, there is something else track today. located in Mentor, OH. They have been that needs to be done, and that is this Let me restate what I have said so in business for over 30 years. They have Congress needs to pass trade legisla- many times—so many times—in the grown to more than 200 employees. tion that will assist the country of past, something that I think people They manufacture industrial strapping Haiti. may be finally beginning to com- but cannot export into the Central Last year, the Senate passed an im- prehend. Article I, section 8 of this American market competitively now portant trade bill for Haiti, only to see Constitution, which I hold in my hand, because of high tariffs. DR–CAFTA that trade agreement die in the House states that the Congress—hear me— would level the playing field for of Representatives. I have raised this that the Congress, not the executive, Polychem, allowing them to expand issue with the administration and with shall have the power to ‘‘regulate Com- their exports and grow jobs in Ohio. my colleagues in both the House and merce with foreign Nations.’’ And By requiring Central American coun- the Senate. Haiti, the poorest country under Article I, section 7, the Senate is tries to lower their tariffs on U.S. prod- by far in our hemisphere, arguably permitted to ‘‘propose or concur with’’ ucts, the United States would be able needs our attention the most. To leave amendments to all revenue bills. to sell into a consumer base 45 million them out and to not pass trade legisla- But under fast track—this shabby, strong that already today buys Amer- tion to assist them is shortsighted, it shabby piece of trash—under fast ican. The 45 million citizens rep- is wrong, and it is not helpful. We track—this trumped-up power grab resented by the DR–CAFTA agreement make a mistake by leaving them out. called fast track which is now disingen- purchase today more U.S. goods than If nothing is done by this Congress uously called trade promotion author- the 1.53 billion citizens of India, Indo- soon to pass a trade agreement that ity—listen to that: trade promotion au- nesia, and Russia combined. DR– will be of assistance to Haiti, it will thority—the Congress is left with no CAFTA will simply increase that. really be a deathblow to what remains ability to modify the text of these Not only do these consumers already of Haiti’s economy, and we will be see- trade agreements. And we did it to our- buy America but, significantly for my ing boats swollen with Haitians head- selves. Congress did it to itself. As a re- State, they buy Ohio. In the past 5 ing back to our shores again. sult, they are negotiated by a small years, Ohio exports to the DR–CAFTA Mr. President, I simply implore my band of bureaucratic gnomes—bureau- region have grown by 90 percent, far colleagues, as well as the Bush admin- cratic gnomes—accountable to whom? outpacing their demands for exports istration, that after CAFTA is passed, Accountable to no one, bureaucratic from any other State in America. In we look again to legislation that I have gnomes accountable to no one. But we 2004 alone, Ohio exported $197 million proposed with many of my colleagues should not blame them. We should in manufactured goods to the region, to be of assistance to Haiti. It is the blame ourselves. The Congress of the including chemical and manufacturing right thing to do from a humanitarian United States cut its own throat. goods, plastics, rubber products, fabric point of view, but it is also the right Under fast track, the Congress can- milled goods, electrical equipment, and thing to do from a foreign policy point not modify, the Congress cannot appliances. These are just the largest of view as well. amend, the Congress cannot delete any categories. Each and every Senator I thank the Chair and yield the floor. section of trade agreements negotiated could easily come to the Senate today The PRESIDING OFFICER (Mr. by the USTR. Congress is excluded and add a list similar to this. BURR). Under the previous order, the from the process, just like we did to The list of DR–CAFTA support is Senator from West Virginia is recog- ourselves when we shifted the power to long in my home State of Ohio. In nized for 20 minutes. declare war to a President, one man. Ohio, the Ohio Pork Producers Council, Mr. BYRD. Mr. President, I thank We did it to ourselves. We shifted the Ohio Soybean Association, the the Chair. power under this Constitution—lodged

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00008 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 30, 2005 CONGRESSIONAL RECORD — SENATE S7705 in the Congress, which shall declare sphere, sky-high trade deficits? Since been consulted on CAFTA at all. What war under this Constitution—we shift- NAFTA and the Uruguay Round were kind of consultation is that? What ed that power to one man, and in so negotiated under fast track, the United kind? doing we relegated ourselves to the States has lost thousands—thousands, I Similarly, the majority-controlled sideline. say—of manufacturing and service Senate Finance Committee refused to So today what can we say? We cannot jobs, a substantial portion of which hold a hearing on the TPA resolution say anything. We did it to ourselves. have been outsourced—we hear much of of disapproval that Senator DORGAN We said: Here, Mr. President, take it. It that word these days, ‘‘outsourced’’—to and I introduced in April. The com- is yours, lock, stock, and barrel. That India or to China, leaving American mittee also refused—maybe I should is what we did when it came to declar- workers’ jobs without health care and say ‘‘declined’’—to discharge the reso- ing war. And we are paying for it in with diminished pensions. lution so it could receive an up-or- Iraq. I have seen it over and over again in down vote on the Senate floor. But let’s get back on this matter. We West Virginia. I have seen it happen You hear that a lot around here, this did it to ourselves again. We excluded time and time and time and time demand for an up-or-down vote. I hear ourselves from the process. We cut our- again, firsthand, in West Virginia. It it said that nominees deserve an up-or- selves out of the loop. We cast our- has happened in our steel industry in down vote. Who said that? The Presi- selves aside, like excess baggage, West Virginia. It has happened in the dent and others say the nominees de- shunned, shunned like the woman who aluminum industry. It has happened in serve an up-or-down vote. The Con- wore the scarlet letter. the glass industry. It has happened in stitution doesn’t say that. Here is the But unlike Nathaniel Hawthorne’s the communications industry. It has Constitution. It doesn’t say that. What Hester Prynne, who had to sport only happened in the special metals indus- do the American people deserve? That one letter as a symbol of her wrong- try. It has happened in the furniture is what counts. doing, the shamed in this story should industry. It has happened in textiles. It Well, the Senate leadership refused be forced to wear three letters to high- has happened in handtools. Were these to give our resolution an up-or-down light their humiliation. And those let- the promised benefits of NAFTA? Were vote. Instead, they killed it in com- ters are ‘‘TPA,’’ which stands for these the promised benefits of the Uru- mittee. It died a natural death. They ‘‘trade promotion authority.’’ What a guay Round? Who could have foreseen killed it in committee, despite a writ- misnomer. How disingenuous can we that these agreements would cause ten request asking for its discharge become? Fast-track negotiating au- such massive dislocation, such grief? that was sent by Senators DORGAN, thority is an abomination—an abomi- Who? Who? GRAHAM, ROCKEFELLER, JOHNSON, nation. I will tell you who: Those of us who LEVIN, INOUYE, DAYTON, and myself. Is this what we think the Founding wisely voted against them. I did, and so The proponents of fast track, TPA, Fathers had in mind when they created did about a third of the U.S. Senate. and CAFTA argue that by expanding our three separate branches of Govern- But the majority back then refused to free trade in Central America we will ment? We don’t pay too much atten- see what was coming. The majority re- help the workers in those countries—I tion to that these days. Is this what fused to look. The majority blindfolded have heard some of that today—become they had in mind when they created itself and refused to see what was com- more stable and less of a national secu- our three separate branches of Govern- ing. I hope they recognize what they rity threat. That is what we were told ment? First, in this Constitution, the see today. about NAFTA. What happened? Did legislative branch, then the executive Administrations like to allege that NAFTA stabilize immigration? No. branch, then the judicial branch. But because they sometimes deign to ‘‘con- Since NAFTA was implemented, the that first branch, the people’s branch, sult’’ with the Congress on fast track number of those migrating illegally is this what they had in mind when trade agreements, their consultations into the United States to seek work they created that first branch? Blind satisfy the need of Congress to be in- has doubled. Perhaps this is because adherence to agreements negotiated volved in drafting the text of these the wages of Mexican workers have de- behind closed doors, dictated word for agreements. We all know what a sham clined and the number of people in pov- word by only one branch of the Govern- that is. Yes, they condescend to con- erty there has grown. ment, the executive branch? Is that sult with Congress, the people’s elected Yet the administration wants us to what they had in mind? That is not representatives. The President is indi- enact now another NAFTA, this time what the Constitution says. It says rectly elected by the electors, the rep- called CAFTA—NAFTA, CAFTA; that the Congress shall regulate for- resentatives of the people. We are NAFTA CAFTA. Poetic, isn’t it? It has eign commerce. elected by the people, directly by the a rhyming sound. NAFTA, CAFTA. But the Congress, like blind mice or people. I come here, as it were, directly Yesterday NAFTA, today CAFTA, what hyperactive lemmings, time and time from the voting booth of the people. the AFL–CIO tells us will not require and time again just keeps on making Despite all the assurances we heard its members to maintain or improve the same mistake. It approves fast during the 2002 trade debate, I have their labor laws or to protect the core track. Each agreement negotiated been told that even members of the Fi- labor rights of their workers. under fast track destroys more Amer- nance Committee, the Senate Com- So the administration continues to ican jobs and leads our Nation into mittee that is charged with jurisdic- negotiate these failed free-trade agree- deeper and deeper deficits. tion over trade matters, have been shut ments, when it should be focusing on The overall U.S. trade deficit in 1993, out. Can you believe it? Let me say the real trade crises that face our Na- when NAFTA was enacted, was $75.7 that again. I can hardly believe what I tion. billion. Today what is it? Not $75.7 bil- am saying. For example, while the administra- lion. It is nearly $700 billion. Back in Despite all the assurances we heard tion has been spending its resources on 1993—that hasn’t been too long ago, during the 2002 trade debate, I have these agreements, it is doing nothing back in 1993—the United States had a been told that even members of the to address our Nation’s enormous trade trade surplus with Mexico of $2.4 bil- Senate Finance Committee, the Senate deficit, which soon will surpass $700 bil- lion. Not too long ago, 1993. Look back- committee that is charged with juris- lion. What a deficit—$700 billion. ward, O time, in thy flight. We had a diction over trade matters, have been The PRESIDING OFFICER. The Sen- trade surplus with Mexico of $2.4 bil- shut out of substantive consultations ator’s time has expired. lion in 1993, $2.4 billion. Last year we on CAFTA. My, how the mighty have Mr. BYRD. I am so sorry about that, ran a trade deficit of $45 billion with fallen. Since only certain members of Mr. President. I ask unanimous con- Mexico. There you have it. The facts the Finance Committee are part of the sent that I may be given 5 more min- speak for themselves. Were these some congressional oversight group which utes. of the promised benefits of NAFTA? It was supposedly created in 2002 to ‘‘con- The PRESIDING OFFICER. Without is too easy to forget. Were these some sult’’ with the White House, other Sen- objection, it is so ordered. of the promised benefits of NAFTA? ators on the Finance Committee who Mr. BYRD. I thank the Chair for his Sky high, yes, way up in the strato- are not a part of that group have rarely courtesy. May I say that the chairman

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00009 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7706 CONGRESSIONAL RECORD — SENATE June 30, 2005 of the Finance Committee is a man While some in my State continue to the House and Senate in support of whom I like. He is always friendly, al- raise concerns with this agreement and CAFTA. Those organizations wrote: ways courteous to me, and in Shake- trade in general, I believe this agree- This agreement is vitally important for speare’s words, ‘‘He’s a man after my ment is in the long-term best interests the United States textile and apparel indus- own kidney.’’ of North Carolina and our Nation. try and the more than 600,000 workers who The administration also refuses to When I wake up in the morning, I look are still employed in the United States in bring WTO cases against other coun- forward, I don’t look back; I look to this industry. tries that violate international law. the future. Simply put, Mr. President, I ask unanimous consent, Mr. Presi- Yet it acquiesces when the WTO un- voting no on this agreement would be dent, that this letter be printed in the fairly and deliberately twists inter- the easy thing to do. However, I believe RECORD. national rules to strike down our own voting yes is, in fact, the right choice There being no objection, the mate- laws. In fact, the current administra- for the State of North Carolina and its rial was ordered to be printed in the tion has taken on only 12 cases to the economic future. RECORD, as follows: WTO in over 4 years, compared with its It is only through agreements with JUNE 27, 2005. predecessor, which filed an average of our friends, neighbors, and allies that DEAR SENATOR/REPRESENTATIVE: We are 11 WTO cases per year. we will be able to compete with Asia. writing to express our strong support for and The U.S. Trade Representative sits Many will argue that this agreement is urge passage of the implementing legislation (HR 3045/S 1307) for the U.S.-Central Amer- idly by while the WTO tries to under- a jobs loser, and I certainly understand mine and/or eliminate our most crit- ica-Dominican Republic Free Trade Agree- that feeling and respect those opinions. ment (CAFTA–DR). ical trade laws, including the Contin- After all, my home State of North This agreement is vitally important for ued Dumping and Subsidy Offset Act, Carolina is undergoing a significant the U.S. textile and apparel industry and the also known as the Byrd amendment. A economic transition which is changing more than 600,000 workers who are still em- strong majority of the Senate supports the nature of our job market. However, ployed in the United States in this industry. the Byrd amendment, and this law will I believe CAFTA will provide opportu- Last year, we exported more than $4 billion of textile and apparel products to Central not be repealed or modified in response nities for economic growth in my State to the WTO. In fact, in the fiscal year America and the Dominican Republic. More down the road. than 25 percent of all U.S. fabric exports and 2004 and 2005 Consolidated Appropria- CAFTA will provide garment makers tions Acts both Houses of Congress di- 40 percent of all U.S. yarn exports go to this in the region with a critical advantage region. As a result, garments imported from rected the administration to start ne- in competing with Asia—particularly the region contain on average more than 70 gotiating a solution to this WTO dis- Chinese—garment manufacturers. This percent U.S. content. In contrast, garments pute. In response to this congressional is crucial for one very important rea- imported from Asia contain less than 1 per- mandate, the administration, in early son: those regional garment makers cent U.S. content. 2004, submitted a proposal to a negoti- buy their yarn, their fabric, from Recent changes in the international trade ating group in Geneva to reverse this regime—through the elimination of quotas American companies. Many of those have eroded the competitiveness of the part- WTO ruling against our law. But the companies are based in North Carolina. administration has done nothing to ad- nership we now have with Central American Those American companies buy their region. Moreover, the existing program—be- vance those negotiations since April cotton from American farmers. This is cause of burdensome documentation require- 2004. The administration needs to stop not the case in Asia. ments and because it will expire soon—no stalling and start solving this problem. I am persuaded by the impressive longer provides as strong an incentive to History shows that it is a big mis- level of trade between North Carolina make clothing in the region using U.S. in- take for the Congress to cede its au- and Central America today. North puts. thority to negotiate trade agreements CAFTA–DR will solidify and stabilize this Carolina exported almost $2 billion partnership by making the current program to the Executive—and I am not just worth of merchandise to Costa Rica, talking about this administration. I broader, easier to use, more flexible, perma- Dominican Republic, El Salvador, Gua- have been in Congress 53 years, and it nent, and reciprocal. It will create new sales temala, Honduras, and Nicaragua in opportunities for U.S. textile and apparel is the same in every administration, 2004 alone. Only Florida and Texas ex- products by providing permanent incentives Democratic and Republican. They fol- ported more. My State’s exports to the for the use of U.S. yarns and fabrics in tex- low the State Department line all the region last year accounted for almost tile articles made in the region. And because time—because the outcome of those 10 percent of our total exports. These it will promote duty free access for U.S. tex- agreements can have disastrous con- tile and apparel exports to local markets in exports translate into real jobs in sequences for American industry. the region—which currently does not exist— How much more negative history, North Carolina. it will give us new advantages over our com- I am also persuaded by the side how many more flawed consequences petitors. agreements that I know the President must our Nation suffer before we wake For all these reasons, textile and apparel companies from across the supply chain have up and realize that fast track has been is well aware of—side agreements in- tended to address shortcomings in the come together to express support for a disaster? Instead of negotiating more CAFTA–DR and to urge its swift approval. unfair, at any rate, agreements such as underlying agreement. Our new Trade Representative, my friend, Rob On behalf of the U.S. companies we rep- CAFTA, we should be fighting aggres- resent and the workers they employ, we urge sively to preserve our Nation’s trade Portman, has committed he will utilize you to support the agreement and vote YES laws and to protect the American the CAFTA amendment mechanism to on the CAFTA–DR. workers and their families, and also pursue a rule-of-origin change for Sincerely, protect the Constitution of the United pockets and linings, helping ensure American Apparel & Footwear Association that $100 million in U.S. pocketing and (AAFA), States. American Cotton Shippers Association Mr. President, I yield the floor. lining exports to the region are not lost. The administration has also re- (ACSA), The PRESIDING OFFICER. The American Fiber Manufacturers Association Chair recognizes the Senator from affirmed its commitment to negotiate (AFMA), North Carolina. an aggressive customs enforcement American Textile Machinery Association Mr. BURR. Mr. President, I probably agreement with Mexico before the cu- (ATMA), won’t be as eloquent as the senior Sen- mulation provisions of CAFTA can be Association of the Non Woven Fabrics In- ator from West Virginia, but rest as- used. Finally, Nicaragua has com- dustry (INDA), sured that I am just as passionate mitted to allocate its trade preference National Cotton Council (NCC), National Council of Textile Organizations about the issue before this body. levels, or TPLs, to its current non- (NCTO), I rise today, after months of count- qualifying U.S. trade, ensuring that ex- Sewn Products Equipment & Suppliers of less discussions with interested parties, isting U.S. business is not impacted by the Americas (SPESA), farmers, manufacturers, textile work- this provision. Textile Distributors Association (TDA), ers, and small businesses, to voice my I am not the only one persuaded by United States Hosiery Manufacturers Coa- support for the Central American Free these side agreements. On June 27, 10 lition (USHMC). Trade Agreement. It is not a decision organizations, representing textile and Mr. BURR. Mr. President, North that I have reached lightly. apparel businesses, wrote Members of Carolina textile and apparel firms are

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00010 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 30, 2005 CONGRESSIONAL RECORD — SENATE S7707 by no means unanimous in their sup- (AFBF), II CAFTA–DR is a good deal for provisions of the trade agreement with port of CAFTA. I clearly understand North Carolina agriculture. In 2003, North China is the answer to China. that. But when companies as diverse as Carolina’s farm cash receipts equaled $6.9 If I held up a chart today and sug- Sara Lee, Russell, Glen Raven, Na- billion. Of that figure, $1.3 billion, or about gested that chart listed every time 19 percent, came from agricultural exports. tional Textiles, and Parkdale, compa- If CAFTA–DR is enacted, AFBF estimates China had voluntarily broken our trade nies that have not agreed before, agree that North Carolina will increase agriculture agreements, it would be blank. If we on this, we should take notice, and I trade to this region by nearly $70 million per want trade to work, we as a country have. year by 2024. have to enforce the agreements we Without CAFTA, more and more gar- As you know, North Carolina is a major have with our partners. ment manufacturing will simply find producer of pork, poultry, and cotton, as This is not the China free-trade its way to China to be manufactured. well as a significant producer of soybeans. agreement. It is the Central American As Central American manufacturers Under CAFTA–DR, North Carolina could ex- Free Trade Agreement. We need to stop pect to increase meat exports to CAFTA–DR holding our friends in Central America are forced out by Chinese manufactur- nations by $24 million per year once the ers, more American jobs will be put at agreement is fully implemented. Poultry, and elsewhere accountable for China’s risk for the simple fact that Chinese our third largest agricultural export, would unlawful practices. We should not let manufacturers do not use American experience export increases of $42 million per China get away with unfair trade prac- yarn, they do not use American fabric, year. Exports of cotton would increase ap- tices, and we must strengthen our and they do not use American cotton. proximately $1 million per year, while soy- trade enforcement efforts. If China is I am persuaded by agriculture’s sup- beans and soybean product exports would going to break the rules, let’s call port for this agreement, and in a letter grow by $770,000 per year. them on it. Let’s make them pay for it. to me recently, North Carolina’s Farm It is important to remember that the glob- But we should not make other coun- al community is closely monitoring congres- Bureau president Larry Wooten said: sional deliberations regarding CAFTA–DR. tries the scapegoat for China. On balance, the CAFTA–DR is a positive Rejecting this agreement will damage U.S. In the 2 years since CAFTA was trade deal for North Carolina agriculture. It credibility in the World Trade Organization signed, I have worked to better under- will boost our State’s number one industry (WTO) and deter other nations from negoti- stand the agreement and the impacts it by helping North Carolina’s farm families ating future trade agreements with us. Fur- will have on my State. Today I am con- develop new markets for their products. ther, failing to approve CAFTA–DR and any vinced there is no choice—no choice— North Carolina Farm Bureau strongly sup- subsequent trade agreements will exert more ports CAFTA–DR. but to look to the future and approve pressure on Congress to increase Farm Bill this agreement. The new and emerging Mr. President, I ask unanimous con- spending. sectors of North Carolina’s economy, sent that this letter be printed in the On balance, the CAFTA–DR is a positive from computer manufacturing to bio- RECORD. trade deal for North Carolina agriculture. It technology and established sectors There being no objection, the mate- will boost our state’s number one industry such as financial services and agri- rial was ordered to be printed in the by helping North Carolina’s farm families develop new markets for their products. culture, depend on agreements such as RECORD, as follows: North Carolina Farm Bureau strongly sup- this. NORTH CAROLINA FARM BUREAU ports CAFTA–DR, and we urge you to sup- FEDERATION, What makes CAFTA fairly unique is port on the Senate Floor today. the recognition by many in the textile Raleigh, NC, June 30, 2005. As a friend of North Carolina Farm Bu- Hon. RICHARD BURR, reau, you have always been accessible and I and apparel industry that CAFTA rep- U.S. Senate, appreciate your support for North Carolina’s resents one of their last, best chances Washington, DC. farm families. As you consider how you will to compete with Asia. We cannot afford DEAR SENATOR BURR: As the U.S. Senate vote on this critical matter, please know to wall ourselves off from the rest of prepares to vote today on the Central Amer- that I stand ready to assist you in any way. the world if we hope to compete in a ica—Dominican Republic Free Trade Agree- I look forward to hearing from you soon. ment (CAFTA–DR), I am writing you to ex- global marketplace and to create jobs Sincerely, press North Carolina Farm Bureau’s support in the United States. LARRY B. WOOTEN, for this important agreement. Thank you for I urge my colleagues to look at the President. your vote last night to invoke cloture on S. long-term benefits of prosperous, suc- 1307, and we hope you will vote for this meas- Mr. BURR. Mr. President, current ag- cessful, established democracies to our ure again on final passage today. ricultural trade between the United south and the economic opportunities Currently, U.S. agriculture faces a $700 States and the region can be a one-way it provides for our own citizens here. If million trade deficit with the six countries street. That street is often closed to we fail to look to our friends in the included in the CAFTA–DR. This is largely our farmers by regional barriers. south, we will only be strengthening the result of the General System of Pref- CAFTA will remove those barriers, in- erences (GSP) trade provisions and the Car- our competitors to the west. ibbean Basin Initiative (CBI), which together creasing access for U.S. farmers. With I urge my colleagues at the end of allow 99 percent of Central American and Do- exports accounting for 20 percent of this debate to vote in favor of the minican Republic agricultural products to North Carolina’s farm cash receipts, al- CAFTA agreement, and I urge my col- enter U.S. markets duty free. Conversely, most $1.5 billion, my State’s farmers leagues to stay vigilant, whether it is U.S. exports to the region are subject to ap- stand to make tremendous gains in CAFTA or China, as it relates to en- plied tariffs that range from 15 to 43 percent. Central American markets. forcement mechanisms with our trade Indeed, North Carolina’s farm families have The key to making this trade agree- already paid for this agreement. partners. CAFTA–DR will eliminate these trade bar- ment an economic success for North I yield the floor. riers, and provide North Carolina farmers Carolina, though, is enforcement. I am The PRESIDING OFFICER. The Sen- and agribusinesses with the same duty-free a proponent of free trade, but I am an ator from California. access that CAFTA–DR countries already even bigger proponent of fair trade. Mrs. FEINSTEIN. Mr. President, I enjoy in our markets. In fact, many U.S. The rules must be enforced. I intend to ask unanimous consent that I be al- competitors in the region, like Chile, already make sure that neither this Nation nor lowed to speak for up to 15 minutes and receive preferential access from the CAFTA– our partner countries turn a blind eye that the time be charged under the DR countries. A News & Observer article published ear- to the provisions set out and the assur- control of Senator GRASSLEY. lier this year reported that, according to the ances made in CAFTA. The PRESIDING OFFICER. Without U.S. Department of Commerce, North Caro- Several of my colleagues have come objection, it is so ordered. The Senator lina exports to the CAFTA–DR countries down to the Senate floor to express from California may proceed. grew by $678 million from 2001 to 2004, the their concerns with China. Let me be Mrs. FEINSTEIN. Mr. President, I largest increase in the nation. The article specific. I have concerns about China, have been listening to the debate up- went on to say that North Carolina is the too. I voted against normal trade rela- stairs on television. I thought I might CAFTA–DR region’s third largest trading tions status for China eight times as a come down and indicate the reasons I partner behind Texas and Florida. Clearly, North Carolina agriculture has much to gain Member of the other body. Hindering am going to vote for this Central from CAFTA–DR’s enactment. our Nation’s trade with other nations American Free Trade Agreement. According to a recent study conducted by to get back at China is not the answer. This agreement has sparked a great the American Farm Bureau Federation Enforcing our laws and enforcing the deal of debate about our trade agenda,

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00011 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7708 CONGRESSIONAL RECORD — SENATE June 30, 2005 the effects of trade agreements on nesses need access to new and expand- ing computer equipment and commu- labor rights and the environment, and ing markets to sustain that leadership nications equipment, will receive im- the impact of increased imports on sen- position. mediate duty-free treatment. sitive domestic industries. I under- In 2004, my State exports to the Entertainment: California is a big en- stand the concerns of my colleagues, CAFTA countries totaled $660 million. tertainment State, and this is very im- including members of my own party, That was the sixth largest of the 50 portant. The agreement provides for in- who do not support this agreement. States. Manufactured goods accounted creased market access for U.S. films For me, I have always approached for 89 percent of the total, including and television programs through cable, these agreements on a case-by-case computers and electronic equipment, satellite, and the Internet. Currently, basis. I have supported some, and I fabric mill products, and coal products. movies face tariffs ranging from 5 to 20 have opposed others. For example, I op- CAFTA will provide significant op- percent. Compact discs and DVDs face posed the North American Free Trade portunities for several California ex- tariffs of up to 10 percent. The agree- Agreement and the Singapore-Chile port industries. Let me go over them. ment provides for zero tariffs on mov- Free Trade Agreement. I opposed Let us take dairy, for example. Califor- ies, music, consumer products, soft- NAFTA because of the concerns about nia’s producers represent a $4 billion ware, books and magazines, and non- the impact of jobs and the environ- dairy industry. We know it is the larg- discriminatory treatment for digital ment, and I opposed the Chile-Singa- est in the Nation. Their exports face products such as U.S. software, music, pore Free Trade Agreement because of duties as high as 60 percent today. text, and videos. It also includes pro- the inclusion of immigration provi- Each country in this agreement estab- tections for U.S. trademarks, copy- sions. lishes tariff rate quotas for certain righted works, patents, trade secrets, But in my view, this is an important dairy products totaling 10,000 metric and penalties for piracy and counter- opportunity for this Congress to go on tons across the six CAFTA countries. feiting. As a matter of fact, Peter record in support of economic growth Access will increase by 5 percent a year Chernin, the CEO and president of the and political stability in these coun- for the Central American countries and Fox Group, said this: This agreement tries and new markets and opportuni- 10 percent a year for the Dominican sets a template for what agreements ties for our manufacturers and farmers. Republic, and all duties will be elimi- should look like. Bottom line, this agreement provides nated over 20 years. Textiles: Apparel from garment fac- immediate benefits for American ex- Beef: Current duties on beef are as tories in Central America supporting ports. It balances an uneven trading re- high as 30 percent. Duties on prime and 400,000 jobs will be duty free and quota lationship. Some have said this, but I choice cuts will be eliminated imme- free in the United States if they con- do not think it has sunk in: approxi- diately in the Central American coun- tain U.S. fabric and yarn, thus bene- mately 80 percent of goods manufac- tries. Duties on other beef products fiting U.S. fabric and yarn exports. The tured in these countries and 99 percent will be phased out over 5 to 10 years. CAFTA countries are the largest mar- of their agricultural products already Wine: Current duties on American ket for U.S. apparel and yarn exports. enter the United States duty free. But wine are as high as 35 percent. Duties That is $2.2 billion in 2003. Tariffs on America’s exports into these countries on standard size U.S. bottled wine will U.S. textile exports are currently 18 face stiff tariffs on a number of key be eliminated immediately. All others percent, and they will be eliminated products. Let me give some examples. will be phased out over 15 years. immediately upon enactment of the Wood products have an average tariff Rice: Currently, U.S. rice exports agreement. of 10 percent; motor vehicles and parts, face tariffs of up to 60 percent. Under Now, these are all win-win-win for an average of 11.1 percent; vegetables, the agreement, each country will es- my State and I believe for the United fruits, and nuts, an average of 16.7 per- tablish a tariff rate quota for milled States. Perhaps because of the NAFTA cent—that is today—dairy products, an rice and rough rice, except for the Do- agreement, which was a very different average of 19.5 percent and up to 60 per- minican Republic, which will have a agreement, people look at this agree- cent in some cases. In some cases, to tariff rate quota for brown rice. In the ment as they looked at NAFTA. In send dairy products into these coun- first year, 400,000 metric tons will be fact, CAFTA countries now export tries, they face a tariff of 60 percent; imported duty free, growing as the tar- most of their products into the United grains, an average tariff of 10.6 percent; iff is eventually eliminated. States at no tariff, and most of our beef, up to 30 percent; rice, up to 60 per- Fruits: Duties of up to 20 percent on products face tariffs which would ei- cent; and wine is as high as 35 percent. U.S. grapes, raisins, fresh and canned ther be eliminated immediately or Upon enactment of this agreement, peaches, and fresh and canned pears eliminated over a period of time under 80 percent of U.S. industrial exports will be eliminated immediately upon CAFTA. will enter the CAFTA countries duty enactment of the agreement. So I do not think it should come as free, with the remaining tariffs elimi- Tree nuts: Duties of up to 20 percent any surprise that there is very wide nated over 10 years. That is good for us. on U.S. walnuts, almonds, and pis- support among California businesses, That is good for our workers because in tachios will be eliminated immediately farmers, and agricultural organiza- these industries it will produce more upon enactment of the agreement. tions: the Farm Bureau, the Wine In- jobs. Fifty percent of agricultural ex- Services: The agreement provides stitute, the United Dairymen, the Rice ports become duty free immediately, broad market access and regulatory Commission, the Cattlemen’s Associa- with remaining tariffs eliminated over transparency for telecommunications, tion, the Pork Producers, the Table 15 and 20 years. insurance, financial services, distribu- Grape Commission. In high tech, vir- A World Bank and University of tion services, computer and business tually every company: Cisco, Intel, Na- Michigan study estimates that with technology services, and tourism, tional Semiconductor, Apple, Oracle, the agreement, U.S. income will rise by among others. U.S. financial service Hewlett-Packard, Qualcomm, IBM, $17 billion and the income of CAFTA suppliers will have full rights to estab- Kodak, and the Telecommunications countries by $5 billion. I think that is lish subsidiaries, joint ventures or Industry of America. This is opening substantial. According to the American branches for banks and insurance com- markets for our products. Entertain- Farm Bureau, CAFTA would increase panies. ment: the Motion Picture Association U.S. agricultural exports by $1.5 billion High tech: The agreement eliminates of America, the Recording Industry of annually. distribution barriers for information America, the Independent Film and Now let me just talk about my own technology products. It requires coun- Television Alliance, and the Entertain- State of California. It has often been tries to eliminate information tech- ment Software Association. said we are the fifth largest economic nology tariffs by signing the World As the New York Times stated in an engine on Earth. We have a $1.4 trillion Trade Organization Information Tech- editorial: economy. We are a leader in U.S. and nology Agreement, and it opens up in- Denying poor people in Central America global markets, with products ranging formation technology services. All ex- the benefits of better access to the American from high tech to agriculture. Our ports of products covered by the Infor- market is certainly not the way to lift them workers, our farmers, and our busi- mation Technology Agreement, includ- out of poverty.

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00012 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 30, 2005 CONGRESSIONAL RECORD — SENATE S7709 That is the flip side of this, that by back on CAFTA, it would undercut these capacity building for the CAFTA coun- creating an agreement that reduces fragile democracies, compel them to retreat tries, from 2006 through 2009, and $3 these tariffs on American products, a to protectionism, and make it harder for million annually through 2009 for the them to cooperate with the U.S. more competitive and higher quality For the first time ever, we have a chance International Labor Organization to marketplace is produced for citizens of to reinforce democracies in the region. This monitor and verify progress in CAFTA these countries, and that is not bad. is the moment to move forward and to help countries in improving labor law en- Denying these countries access to the those leaders that want to modernize and hu- forcement and working conditions, U.S. market is certainly not the way to manize their countries. Moreover, strong with periodic reports that are trans- reward them for advances made in the economies in the region are the best antidote parent, every 6 months, on such area of democracy, human rights, and to illegal immigration from the region. projects. the rule of law. Twenty years ago, I appreciate your consideration of my That is a first and I think it is impor- views and hope they will be helpful in your tant and I do believe it can make a dif- these countries were marred by con- important deliberations. stant warfare, human rights abuses, Sincerely, ference. I do believe the comments of poverty, and political instability. JIMMY CARTER. those who are concerned about impact Since then, they have all made enor- Mrs. FEINSTEIN. Former President on Central America’s labor laws are mous strides, and passage of CAFTA Jimmy Carter states: right to be concerned. I join them in will not only promote economic devel- If the United States Congress were to turn that concern. This $3 million can go a opment and rising standards of living its back on CAFTA, it would undercut these long way to seeing the kind of enforce- by allowing their products to compete fragile democracies, compel them to retreat ment that is necessary to begin to in the U.S. market, it will also lock in to protectionism, and make it harder for bring those countries up to where it is economic reforms, respect for the rule them to cooperate with the United States. an approximately level playing field. of law, and solidify democratic institu- I do not think there has been any This is a significant commitment, and tions. Each country now has a demo- American President that has reached I thank Ambassador Portman for his cratically elected leader, and I think out more fully to the rest of the world willingness to engage with the Con- we should reward those allies and not with more humanitarian work and gress on this issue. turn our backs on them. more concern about human rights and I also look forward to providing as- I ask unanimous consent to have a labor rights than Jimmy Carter. sistance to workers in this country letter from former President Jimmy I understand several of my colleagues through the Trade Adjustment Assist- Carter printed in the RECORD. believe labor and environmental provi- ance Program for those who have lost There being no objection, the mate- sions of the agreement fall short of their jobs because of increased trade. rial was ordered to be printed in the what is needed to protect workers’ This is where I think the rub really RECORD, as follows: rights and the natural resources of the is. It is always hard to see whether the JUNE 8, 2005. CAFTA countries. I think free-trade benefits of free trade do in fact out- Hon. CHARLES E. GRASSLEY, advocates often make the mistake of weigh the negatives. But we must rec- Hart Senate Office Building, arguing that these agreements are a ognize that some workers lose their Washington, DC. panacea for the ills of the developing jobs and they have to be helped to TO SENATOR CHARLES GRASSLEY: As you world, including lax labor and environ- learn new skills. We have to find ways prepare for your initial consideration of the mental standards. I certainly do not to keep manufacturing in this country. Central American Free Trade Agreement believe that. We have to find ways to limit research (CAFTA) with the nations of Central Amer- The passage of the CAFTA alone will and development tax credits to the pro- ica and the Dominican Republic, I want to express my strong support for this progres- not bring labor and environmental duction of jobs in this country. sive move. From a trade perspective, this standards and the capacity to enforce Some of us were struck a mortal will he1p both the United States and Central those standards up to United States blow when we repatriated tax funds America. levels. We have to admit that. But— and there was an amendment on the Some 80 percent of Central America’s ex- and I say ‘‘but’’—combined with a ro- floor of the Senate that said ‘‘as long ports to the U.S. are already duty free, so bust assistance package to help the as those funds will be used for produc- they will be opening their markets to U.S. CAFTA countries identify short- tion of jobs in this country,’’ and that exports more than we will for their remain- comings and improve the enforcement amendment failed. That, for me, was a ing products. Independent studies indicate dark day because I believe that Amer- that U.S. incomes will rise by over $15 billion of their laws, this agreement will mark and those in Central America by some $5 bil- an important step in the right direc- ican corporations do have an obligation lion. New jobs will be created in Central tion. This is not about sacrificing the to this country, not only to the bottom America, and labor standards are likely to rights of workers and the protection of line but an obligation to their workers. improve as a result of CAFTA. the environment for open markets and American workers are the best in pro- Some improvements could be made in the increased trade. We can provide new ductivity and the best in the world. We trade bill, particularly on the labor protec- opportunities for American and Central have to find ways to see that this coun- tion side, but, more importantly, our own American goods and services and estab- try is competitive in education, in national security and hemispheric influence standards, to be attractive for manu- will be enhanced with improved stability, de- lish programs to help those countries mocracy, and development in our poor, frag- raise their labor standards. facturing once again. ile neighbors in Central America and the What Senator BINGAMAN said when he Today, the Democrats in the Demo- Caribbean. During my presidency and now at came to the floor is very constructive. cratic Policy Committee heard a very The Carter Center, I have been dedicated to I give him a great deal of credit and interesting presentation which pointed the promotion of democracy and stability in credit to the administration. This is out how necessary manufacturing jobs, the region. From the negotiation of the Pan- the first trade treaty I can remember production line jobs—not high-skilled ama Canal Treaties and the championing of when they have been open to change. jobs—were going to be to the future of human rights at a time when the region suf- Mr. President, I ask unanimous con- this great country. I remember when I fered under military dictatorships to the monitoring of a number of free elections in sent just 5 additional minutes. was mayor of San Francisco, Akio the region, Central America has been a The PRESIDING OFFICER (Mr. Morita, the chairman of Sony, at that major focus of my attention. BURR). Without objection, it is so or- time he was the head of The Keidanren, There now are democratically elected gov- dered. saying to me that when America loses ernments in each of the countries covered by Mrs. FEINSTEIN. This is the first its manufacturing edge, it is the first CAFTA. In negotiating this agreement, the trade agreement where the administra- step to America becoming a second presidents of each of the six nations had to tion, perhaps because they have had to rate power. I believe that is correct. contend with their own companies that fear struggle for the votes, has been wel- Yet a trade agreement which reduces competition with U.S. firms. They have put their credibility on the line, not only with coming of suggestions; not only wel- tariffs on our exports is not bad; it is this trade agreement but more broadly by coming of suggestions, they made some good. I think that is the benefit of promoting market reforms that have been changes. That is appreciated. that, and of this agreement. urged for decades by U.S. presidents of both One of the changes was $40 million With that in mind, and because I be- parties. If the U.S. Congress were to turn its earmarked for labor and environment lieve virtually every industry in my

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00013 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7710 CONGRESSIONAL RECORD — SENATE June 30, 2005 State is in support of this agreement, I ican Republic-Central American- obviously, labor implications. So the intend to vote aye. United States free trade agreement, Finance Committee is asked to grapple I thank the Chair for the extension of known as CAFTA. I am opposing the with very compelling issues that touch time, and I yield the floor. implementing legislation before the on a lot of other subject matters when I appreciated the recent efforts the Senate today due to the negative im- they deal with it. administration made to engage the pact that passage of the agreement will I rise today to speak about this Cen- sugar industry to work out an agree- have on the domestic sugar industry. I tral America-Dominican Republic Free ment. However, I am concerned that also believe mandatory country of ori- Trade Agreement, known as the the two sides only recently came to the gin labeling should be implemented be- CAFTA–DR agreement. Yesterday table to address this divisive issue. The fore we sign trade agreements that will evening, I came to the floor to express trade agreement has been signed for bring in additional meat products. my hopes that this agreement could be nearly a year, but talks only began The production of sugar is vitally im- strengthened in the waning hours be- about 3 weeks ago. The problem should portant in Wyoming. Behind hay, fore a vote on its implementing legisla- have been recognized and truly ad- which is fed to our livestock, sugar tion. I did so because I very much want dressed earlier in the process. I am con- beets is the No. 1 cash crop in Wyo- to support this agreement. vinced that an agreement could have ming. So small sugar beet farms in Wy- Let me explain why again. Many of been reached. As it was, the sugar in- oming have a big impact on my State’s my colleagues, I suppose, know the rea- dustry chose not to accept a short- economy. For example, my office re- son. As long as I have been a Member term offer by the administration. The ceived calls from bankers and local of this body I have served on the Sen- offer would have provided a remedy for economic development agencies in ate Foreign Relations Committee. I the length of the farm bill, this year towns that depend upon the viability of have, for most of those years, been ei- and next year’s sugar beet crop. As I the sugar beet industry. They were ther the chairman or the ranking Dem- stated before, sugar beet farmers in concerned about the impact of CAFTA ocrat of the subcommittee dealing with Wyoming have made long-term invest- on the health of their local econo- Latin America. ments in their processing facilities. mies—the economies of my home My colleagues, many of them, know They need a long-term solution, not a State. as well that some 39 years ago, as I fin- short-term fix. In addition, the sugar industry is ished my college education, I joined This problem will not go away. As vertically integrated. Sugar beet farm- the Peace Corps and traveled to the the administration continues to seek ers are invested in their land and spe- Dominican Republic where, for about 2 additional free-trade agreements with cialized farming equipment. However, years I served as a Peace Corps volun- countries that desire to send their across the Nation, sugar beet farmers teer in the wonderful mountain village sugar to our markets, this issue will have also banded together to purchase of Bonito Moncion, not very far from resurface. I recommend that the ad- the Haitian border. I have a special af- ministration and the sugar industry the processing plants that add value to fection for the Dominican Republic. continue creative discussions to iden- their crop. So their investment in The people of that small mountain vil- tify a long-term solution beyond the sugar is higher than the investments of lage embraced me as one of their own. next farm bill to ensure the viability of other farmers in their crops. Many of In fact, only a few weeks ago I traveled the sugar industry and the small fam- these plants have been purchased in re- back to that mountain village of ily farmers that the industry supports cent years with a long-term debt load. Moncion after a 24-year absence and in the United States. Wyoming sugar beet farmers have a Beyond Wyoming sugar, Wyoming special interest in ensuring that their spent a remarkable day with people I cattle producers have made it clear to industry has long-term viability. The had known, who had such a wonderful me that they want mandatory country sugar that would be imported from impact on my life as a young Peace of origin labeling implemented before CAFTA countries under this agree- Corps volunteer. new trade agreements are signed that ment, in addition to the sugar expected When I came to this body and went could bring in additional beef and meat to be imported from Mexico under to the Congress in 1974, along with Paul products. I agree that consumers NAFTA, would have a detrimental im- Tsongas of Massachusetts, we were the should have the opportunity to make pact on the sugar beet industry in the first two former Peace Corps volun- an informed purchase regarding their near and distant future. teers to be elected to the U.S. Con- meat’s country of origin at their gro- The PRESIDING OFFICER. Who gress. cery store. U.S. beef is competitive, but yields time? The Senator from Con- Paul Tsongas came to the Senate 2 it does not receive a chance to compete necticut. years before I did. When I arrived here, when it is not labeled as U.S. beef for Mr. DODD. Mr. President, I ask unan- we became the only Peace Corps volun- consumers. imous consent I be allowed to speak for teers to have served in this Senate. With my vote against this bill, it up to 30 minutes from the time under Today, I believe I am the only one to would be easy for my opponents to cast the control of Senator DORGAN, to be have had that privilege of being a vol- me as a free-trade obstructionist. I re- followed by Senator MARTINEZ for up to unteer in the Dominican Republic and mind them that until today, I have 10 minutes from the time under the to serve in this Senate. The countries never voted against a free-trade agree- control of Senator GRASSLEY. of Central America I know well. I have ment on the floor of the Senate. The The PRESIDING OFFICER. Without traveled to all of them extensively over principles of fair trade, which I sup- objection, it is so ordered. The Senator the years. I know the heads of states of port, generally bring about increased from Connecticut is recognized for 30 each of these countries and have democracy, more transparency in Gov- minutes. known virtually all of the heads of ernment and increased productivity. Mr. DODD. Mr. President, let me state over the last 24 years. It is with Along these lines, there are industries begin by commending, again, the chair- a great deal of personal interest, in ad- in Wyoming that communicated their man of the Finance Committee, Sen- dition to the subject matter interest, support of CAFTA to me. I am pleased ator GRASSLEY, and Senator BAUCUS, that draws me to this debate and to the the agreement will improve market ac- the ranking Democrat, and members of Senate this afternoon. I have worked cess for important industries, such as that committee. It is a very important closely with many of these countries. soda ash and oil and gas. I recognize committee of the Senate, obviously. As much as any Member of this Senate, the benefits this agreement will bring They are charged with the responsi- I understand what a great boom a well- to many and applaud the administra- bility of dealing with trade agree- crafted agreement on trade can be to tion for their hard work in bringing ments. The implications of these trade the people of Central America and for this agreement to fruition. Unfortu- agreements obviously go beyond just the Dominican Republic, as well as for nately, I cannot vote for the agreement the jurisdiction of the Finance Com- we Americans. today because the costs outweigh the mittee. It can be argued, I think very I don’t expect CAFTA–DR agreement benefits for my State as a whole. correctly, that these agreements have to be perfect. No trade agreement ever Mr. ENZI. Mr. President, I rise today huge foreign policy implications, na- is. There are always matters either left to express my opposition to the Domin- tional security implications as well as, unaddressed or under-addressed when

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00014 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 30, 2005 CONGRESSIONAL RECORD — SENATE S7711 we have these agreements. The ques- In this hemisphere, the results have Guzman, triggering a bloody civil con- tion should be whether trade agree- been mixed. Countries such as Brazil flict that lasted more than 30 years. ments, on balance, serve to protect and Chile are doing quite well. Guatemala’s conflict was largely a American interests and lift up the Others have stagnated or, worse, struggle for land rights and resulted in countries that we are negotiating with, even regressed. I put this in context for the murder or disappearance of more or whether they will lead us all in the my colleagues when it comes to Cen- than 200,000 people, many of them in- opposite direction. tral America and the Dominican Re- digenous Mayans living in the high- That is why I welcome the efforts of public. When considering this debate lands of Guatemala. Fortunately, this my colleague from New Mexico, Sen- and the conclusion of it, consider that armed conflict ended in 1996, with the ator BINGAMAN, to strengthen the ca- one-third of the entire population of signing of the peace accords between pacity of these nations of Central Latin America currently lives in pov- the Guatemalan Government and the America and the Dominican Republic erty. In the nations south of the Rio armed opposition, grouped together as to effectively enforce and uphold inter- Grande River, 128 million people sur- the Guatemalan National Revolu- nationally recognized labor rights. I vive on less than $2 a day; 50 million on tionary Unit. believe the commitment by the admin- less than $1 a day. That is more than a In El Salvador, it was discontent istration to provide funds for the Inter- third of the entire population of these over social inequalities, a poor econ- national Labor Organization, the ILO nations. In Central America alone, omy and a repressive dictatorship that as it is called, in these CAFTA–DR three out of every five citizens live in in 1980 finally ignited a civil war be- countries is a step in the right direc- conditions of poverty. Two out of every tween a repressive military govern- tion. I commend my colleague from five are indigent or in conditions of ex- ment and leftist guerilla groups who New Mexico, Senator BINGAMAN, for treme poverty. united under the Farabundo Marti Na- pursuing this provision. I commend In Nicaragua, for instance, there is tional Liberation Front. During 12 Ambassador Portman for accepting the widespread malnutrition and unem- years of that civil war, 75,000 Salva- idea. ployment rates are way over 40 per- dorans, mostly civilians, were killed But to strengthen the effectiveness of cent. Nicaragua is the second poorest and thousands more fled to refugee the International Labor Organization nation in this hemisphere, with nearly camps in Honduras and many more in carrying out its work in Central half its population living on less than made their way north to the United America, I believe there also needs to $1 a day. States as immigrants. The United be a clear understanding, before we In Guatemala, the situation is also States provided more than $5 billion in vote on the CAFTA–DR agreement, of dire. Malnutrition rates are among the economic and military assistance to the freedom activity that the Inter- highest in the world. Life expectancy the Salvadoran Government over the national Labor Organization must have as well as infant and infant mortality course of that conflict. But it took the if its efforts are going to be effective. rates are among the worst in this U.N. to broker a peace accord to end a After all, the problem is not just about hemisphere. Illiteracy exceeds 30 per- conflict that military force failed to capacity building, as important as that cent and most people have less than 5 resolve. is, which was the focus of the agree- years of a formal education. Nicaragua’s story is almost some- ment with our colleague from New But there is not only tremendous what similar. In 1979, the Sandinista Mexico, it must also, out of necessity, poverty in these nations, income and National Liberation Front of Nica- be about enforcement of those rights. equality in Latin America is also one ragua overthrew the 40-year dictator- of the highest in the world. Consider That is why I met yesterday, at some ship of the Somoza family and took that the richest 10 percent of all Latin length, with Ambassador Portman and control. In 1981, the Reagan adminis- Americans earn roughly 50 percent of his staff and contacted the ambas- tration responded aggressively to re- the total national income in these na- sadors of the five Central American gional concerns with respect to the tions; whereas the bottom 10 percent countries and the Dominican Republic leftist regime. The United States fund- earn only 1.6 percent of income. ed and organized the new paramilitary to describe what I believe is needed to Despite economic growth throughout make the International Labor Organi- force which became known as the the 1990s, unemployment in Latin Contras. The Contra war, as it became zation initiative of this agreement a America has actually increased. The meaningful one. known, lasted until 1988 and resulted in Central American region has suffered more than 25,000 deaths in that country As my colleagues know, over the greatly as a result of natural disasters. and 700,000 refugees and displaced peo- years, I have generally been a sup- Hardly a year goes by that some nat- ple. porter of free-trade agreements. If ural tragedy does not occur in these Although Honduras faced no serious properly constructed, I believe trade nations. My colleagues will recall the civil conflict of its own, it served as a agreements are in the best long-term mud slides in Haiti which last year staging ground for efforts of the United interests of the United States. That is cost thousands of people their lives and States to fight the insurgencies in Gua- because, in today’s highly inter- homes. There are repeated hurricanes temala and El Salvador and to over- connected world, we must keep up and that have hit Central America over the throw Nicaragua’s Sandinista govern- adjust to the changes around us if we last decade and a half. ment. are going to compete effectively. In early 1993, after one of those hurri- Honduras’s geographically central lo- This great surge toward a globalized canes hit Nicaragua, I went down to cation made it a convenient base of op- world economy has brought gains and work with the people of those nations erations for the Contras and a center of losses here in our own country. Some to clear mud out of schools and impov- training and supply for the Salvadoran industries have benefitted greatly; oth- erished communities. Bridges were and Guatemalan militaries. ers have struggled to compete. On bal- wiped out, crops were lost, the country Even democratic Costa Rica felt the ance, I believe free trade has benefitted was devastated. ripple effects of its neighbors’ conflicts our country. But we have not done In 1998, Hurricane Mitch, a category 5 as displaced persons from other coun- enough, especially during the past few storm, hit Honduras, Nicaragua, Gua- tries took up residence in that nation. years, to help ease the transition for temala, and El Salvador, killing 9,000 Finally, the governments of Central those many Americans who are strug- people and leaving more than 700,000 America courageously decided to take gling. people in those four countries home- matters into their own hands. In 1987, Globalization has affected other na- less. without any real assistance from the tions around the globe. From Latin We are also talking about nations, United States, the Presidents of Guate- America to India, Africa to China, no many of which were almost ripped mala, El Salvador, Honduras, Nica- country has escaped the impact of this apart by brutal civil wars and political ragua, and Costa Rica negotiated and process. The difference is that while violence. Guatemala’s troubled history signed an agreement to create condi- globalization has helped lift many na- dates back to 1954, when a military tions for peace in Central America, tions, it has also left many others be- coup overthrew Guatemala’s popularly which became known as the Esquipulas hind. elected president, Jacobo Arbenz Agreement. That agreement marked a

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00015 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7712 CONGRESSIONAL RECORD — SENATE June 30, 2005 turning point for the people of Central These agreements are also about the compliance. Indeed, I would note that America and created real possibilities future of a nation’s economy. They are the Dominican Republic and all the for peace, reconciliation, and pros- about protecting our national security. Central American countries, except El perity for the people of that region. And they are about ensuring that the Salvador, have ratified what the Inter- Since 1990, the countries of the re- next generation will inherit a stronger national Labor Organization refers to gion have made progress. The guns foundation on which to build their fu- as its eight fundamental conventions have been silenced. There has been po- tures. on labor rights. El Salvador, I might litical reconciliation. There have been Or at least they should be. add, has ratified six of the eight. And domestic or democratic elections. But We, in the Congress need to decide if while El Salvador needs to be brought still the region struggles for many of these agreements live up to these up to speed, other signatories’ laws the root causes that sparked the civil standards. As I said earlier, I have seem to be at least minimally suffi- conflicts in the first place: poverty and been, throughout my years here, a cient to the task, in my view. inequality and injustice. strong supporter of free-trade agree- Why then does the current arrange- Taken individually or as a whole, ments. The case we have before us—of ment, with respect to labor laws, weak- this poverty, inequality, suffering, and course, CAFTA–DR, deals with the Do- en this agreement? Because of two political instability have severe impli- minican Republic, Guatemala, Nica- things. First, it does not hold those cations. First, they threaten the polit- ragua, Honduras, El Salvador and countries to the same objective stand- ical stability of Latin America. And I Costa Rica. ards. In fact, the CAFTA–DR agree- am very worried not only about this re- A meaningful agreement with these ment would actually lower current gion but also other nations in the countries could, in my view, benefit standards. Second, it ignores the im- hemisphere that are democratic gov- the United States and the nations in- pact that a lack of objective standards ernments but are very fragile democ- volved alike. For the most part, they could have on the region. racies. And second, by extension, they need help. Poverty, corruption, social Let me explain. also threaten the national interests of dislocation, and instability are all too Previous trade preference programs the United States, as political insta- familiar to the citizens of many of for the region—previous ones; this is bility did in the 1980s. these nations. not new ground; previous ones—pro- To understand how this is possible, I But the CAFTA-Dominican Republic vided that the President should at would point to—and advise my col- agreement has some weaknesses, ones least take into account the extent to leagues, if they have the time, to we tried to address over the last sev- which the beneficiary countries pro- read—a 2004 report by the United Na- eral days. vide internationally recognized work- Mr. President, I understand the sense tions Development Program. ers’ rights. This is not the case with According to that report, progress in of urgency the administration feels in the CAFTA–DR agreement. extending elective democracy across having this agreement be decided upon In addition, as currently written, the Latin America is threatened by ongo- in the waning hours before the Fourth CAFTA–DR agreement would weaken ing social and economic turmoil. Most of July recess. I regret, unfortunately, standards that these countries have troubling, the report suggests that that we have to rush at this. But I un- been living under through the Carib- over 50 percent of the population of derstand why. If you do not have these bean Basin Initiative and the General- Latin America would be willing to sac- agreements up under these time con- ized System of Preferences, where rifice democratic government for real straints, then they may not pass at all. these agreements are not required. So progress on economic and social fronts. So I appreciate the politics of why it is instead of asking them to do the same That is a very frightening statistic. up under this shortened time-frame or with the CAFTA–DR agreement—or And it should make crystal clear the up against the wall of this recess. more—we are actually asking them to urgency of this situation. That said, I regret we did not have a Two decades of democratic progress few more days. If we did have some do less. It is a step backwards. in our hemisphere are at risk. Cer- more time I believe we might have Under the current trade agreements tainly, strong trade relations remain a been able to make some very impor- in this region, trade benefits can be key to creating a healthy economy tant improvements to weaknesses in withdrawn if a country lowers its labor both here in the United States and the current agreement. laws below international standards or throughout the region. But trade alone The most fundamental of these weak- simply fails to meet these standards. cannot address the myriad of chal- nesses I discussed last evening and I And they can be withdrawn if a govern- lenges facing Latin America, where talked about at great length with Am- ment directly violates internationally millions of citizens in this hemisphere bassador Portman yesterday. accepted workers rights that might not remain marginalized by economic inse- I also sent him a letter addressing be protected under their laws. curity and social dislocation. And, the specificity of them; and that is, Under the Caribbean Basin Initiative, sadly, the attention and foreign aid namely, the issue of labor laws in the and the GSP, the right to file a com- dollars of the United States have been CAFTA-Dominican Republic countries. plaint for violations of these rights is diverted to other parts of the world in When I speak of labor laws, I am extended beyond just governments and recent years. speaking about the kinds of laws that to civil societies. But again, with this That is why I welcome the Bush ad- these countries have enacted and about agreement, we exclude all of that. ministration’s decision to reengage the enforcement of these laws. I am Under this agreement, governments with the region and to strengthen eco- also speaking about current trade will only have to enforce whatever laws nomic ties by negotiating a regional packages in this hemisphere that have they have on their own books at any free-trade agreement. I believe that the been a major step forward to guarantee given time. They will not be held to right kind of trade agreements can improvements in quality of life, cre- any international standards. That help these countries get on the proper ating wealth in these countries which, means the ocean floor is the limit, with course to stronger and more just soci- obviously, benefits us, as we want respect to how weak these laws can eties. trade with nations that have people get. The question is whether, on balance, who can afford the cost of our goods Moreover, the lack of an objective the agreement before us is that right and services. Both of these issues are standard here is troubling because it kind of agreement. I stress the term critical components, I might add, to could create a race-to-the-bottom men- ‘‘agreement’’ because it reminds us protecting Americans and to ensuring tality where investors and companies that these documents are about much real progress is made in these nations. play governments, one against the more than free trade. I would turn here to the issue of other, seeking lower labor standards in They are about the worker who could labor laws. According to the CAFTA- a quest for increased profits. That type lose his or her job. They are about the Dominican Republic agreement, signa- of situation, in my view, could wreak average citizen trying to provide for tory countries must simply enforce the havoc on civil societies in these coun- their families. And they are about so- labor laws of their own nations—what- tries, and it could also cost American cial cohesion and political stability. ever they may be—in order to be in workers their jobs.

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00016 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 30, 2005 CONGRESSIONAL RECORD — SENATE S7713 A second facet of the labor rights I care so much about this region and We stand today at a moment of great question deals with the issue of en- what happens to these people. I would opportunity and great risk for this forcement. like nothing more than to be standing hemisphere. The past two decades have As I said earlier, for the most part, here today urging my colleagues to be witnessed the rise of democratic gov- CAFTA–DR nations have laws on their supportive of this. This is not a minor ernments in nations that have long books. But they face a lack of re- point. It goes right to the heart of what languished under dictatorship of left or sources, as well as domestic political we try to do with trade agreements; right. But this progress is endangered. opposition from influential people, that is, to reduce these barriers, ex- Globalization and free trade promise to which prevent them from enforcing pand markets for our businesses and bring historic levels of prosperity to these laws. industries, create opportunities for ad- nations north and south. But economic Again, this is not about pointing the ditional job creation, and also to create and social conditions for millions of finger or accusing these government and generate wealth in these countries men and women continue to lag dan- leaders of malice toward their workers. so that in the long term, we can gerously far behind, threatening what I don’t believe that. I don’t believe that produce high value products, high we have worked so hard to build. is the case here either. I believe they value services, that are affordable in Through well-crafted trade agree- actually want to do the right thing. I these countries. ments, the United States can enhance know these leaders. I respect them. But So trade agreements have worked its own prosperity and lift other na- our neighbors to the south are demo- both ways—expanding economic oppor- tions on a stable and democratic path. tunities for ourselves and creating cratic countries. And as in all democ- That is why I am so disappointed the wealth and opportunity in the coun- racies, they have to deal with powerful administration wasn’t able to explic- tries with whom we trade. That is why opposition interests. itly support the efforts to give the ILO I supported NAFTA and the Jordanian The question remains, will CAFTA– a greater role in the monitoring and DR help these nations overcome this Free Trade Agreement and others. In- deed, I have supported far more of verification process. I believe that in opposition to enforcement? In my view, doing so, we would have significantly it doesn’t go nearly far enough to do these agreements than I have opposed. But with CAFTA–DR, we are stepping strengthened this agreement, espe- so. That is why I met with Ambassador cially given the troubled history of the Portman yesterday to see if we could backwards in a region of the world that needs a commitment to lift up the region and the potential for mutual strengthen the prospects for enforce- prosperity that a CAFTA–DR agree- ment. Laws that can’t be enforced quality of life for its citizens. I am not suggesting we could do it ment held for all. Unfortunately, the might as well not be there. agreement before us won’t do that. The administration seems to hold the solely through this agreement, but you Last night I sent Ambassador view that support for expanded trade can begin to make a difference in these Portman a letter detailing proposals and economic growth is incompatible people’s lives by insisting that they that have already been adopted in with advocating core labor standards have to meet some minimum stand- other agreements. This is not breaking in developing countries. But, in fact, ards. new ground. I appreciate Ambassador experts in this area from the well-re- This is what we should be saying: We Portman’s response today in the letter spected Institute for International Eco- want to do business in your country. We want to accept your products. We he wrote back to me, but I regret that nomics have concluded that ‘‘core want to trade with you. But the small his letter included no real concrete labor standards support sustainable price we ask is that you have some commitment that the U.S. Government and broadly shared political, social, basic standards for the people who are would guarantee the implementation and economic development.’’ The oper- going to do the jobs. that I am requesting—specifically, that ative word being ‘‘shared.’’ When you eliminate that, then you Let me say clearly I believe this the ILO would be granted unfettered invite the kind of problems we are agreement is fixable. I wish it could access to workplaces, permitted to es- going to see with these people. tablish mechanisms for receiving and have been fixed. Ambassador Portman I am terribly disappointed today. I and I met. We exchanged letters. We investigating matters related to ILO had hoped I would be able to support labor standards, to make private rec- worked hard yesterday to try and see if this agreement. I wanted to be a part we couldn’t strengthen this agreement ommendations to worker and employer of this effort. I respect immensely the organizations and appropriate officials with respect to enforcement. What we President inviting us down and talking sought was the following, exactly what within each government, and to issue about this. I raised the issue with him. periodic public reports of its findings exists in the Cambodian Agreement I also respect Rob Portman. He is a that was negotiated by the Clinton ad- on matters of concern. good man. Obviously, he has the dif- Therefore, I am left to conclude that ministration and renewed by the Bush ficulty of dealing with all 535 of us, in administration, to their credit. There instead of breaking new ground and both this Chamber and the other, to raising standards, the CAFTA–DR we said that the International Labor try and get the votes to pass these agreement is a step backwards from ex- Organization ought to be able to make agreements. This agreement is prob- isting law. That fact saddens me deep- site visits to actually go to plants and ably going to be passed tonight. My ly. This agreement will create a weak- industries to see whether the labor hope was that we would be able to er set of standards that could very well standards were being upheld. Under broaden the specter along bipartisan negatively impact the people of this re- CAFTA–DR, all they can do is go to the support for this agreement both here gion, negatively impact American labor ministries and ask them whether and in the other Chamber. Unfortu- workers and our national security, and the laws are being enforced. Obviously, nately, I don’t believe that will be the weaken democracy in these countries. in most of these countries the labor case. ministries are political appointees. Let me say to my colleagues: Even Regrettably, I won’t be able to sup- They are not likely to be critical of with the adoption of this agreement port this agreement when it comes to a their own government’s efforts. By not and the absence of these labor stand- vote. I say this with a very heavy having any standard which all coun- ards I feel so strongly about, it is my heart. tries must meet, each country will be intention, through appropriate vehi- But I will make a promise to the able to set the floor. When they do so, cles, to condition aid and other assist- American people and to the people of of course, the competition to have a ance on improving these standards in these countries that I will work vigor- lower floor to attract more industry these countries. I will find one way or ously to ensure as we move forward from outside the country lowers the the other to try and improve them, to with this agreement, workers’ rights living standards for the very people I insist that these countries, in exchange are protected and new avenues are ex- have described who are living under for getting the kind of access to our plored for pursuing this goal. I hope at some of the worst conditions anywhere markets, at the very least they ought the end of the day, with all of the in- in the world. to be required to improve the quality terests in this agreement, that our I am deeply troubled by this. I so of life and the standards under which keeping the light shining on labor much wanted to be for this agreement. many of these people work. rights issues will make this agreement

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00017 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7714 CONGRESSIONAL RECORD — SENATE June 30, 2005 work. Because even though I can’t sup- ciated Industries of Florida, the Flor- to the farm bill—and other future trade port this agreement in its current ida Ports Council, the Florida Poultry agreements. This agreement will last form, I truly want to it work for all. Federation, the World Trade Center of until the current farm bill expires. I yield the floor. Florida, Florida East Coast Industries, Two, USDA will conduct a feasibility The PRESIDING OFFICER. Under and many others. study on the potential development of the previous order, the Senator from No other State stands to benefit using sugar to produce ethanol on a Florida will be recognized for 10 min- more economically from CAFTA than wide scale in the United States. utes. Florida. Thirdly, if the domestic market Mr. MARTINEZ. Mr. President, I rise Mr. President, I have been undecided reaches the sugar trigger from foreign today to speak in support of this in my position on CAFTA, as much as sugar, USDA will purchase the excess CAFTA Free Trade Agreement. Like I support free trade and understand the amount of CAFTA sugar that is im- the distinguished Senator from Con- power of leveling trade barriers, an im- ported to the United States and then necticut, I care greatly about this part portant sector of Florida’s agricultural use it to produce ethanol. This pilot of the world. This is a part of the world industry was left unprotected by the program will last until the farm bill I know well, having been born in the original CAFTA agreement. expires. It essentially guarantees that Caribbean myself. I do believe it is an The sugar industry in Florida is an if CAFTA sugar is proven to depress important moment, and it is an impor- incredibly important part of our State. the marketplace, the U.S. Government tant agreement from a geopolitical It provides over 23,000 jobs, mostly in will purchase this sugar from Florida sense for the United States and for rural Florida. Over $2 billion in eco- farmers and others to produce ethanol. Central America. I believe this is a nomic activity is generated in Florida This is a very substantial offer. It is good-faith effort on our part to further from the production of corn and sugar an agreement that I think represents strengthen the struggling democracies sweetener products. And because of the sugar industry’s best chance to and economies of our neighbors in Cen- this critically important economic en- plan for a future. It holds the industry tral America against the forces op- gine for our State, I have resisted sup- harmless from CAFTA and, more than posed to democracy and economic free- porting CAFTA because of the poten- that, from NAFTA. The future of the dom and opportunity. I believe this tial impact on Florida’s sugar pro- domestic sugar industry lies in new also opens an important neighboring ducers. technology and ethanol production, market of 40 million people and levels So I and other colleagues began and this treaty allows them to begin the playing field for American busi- working to see what type of com- that very important process. Mr. President, this is an important nesses as we seek to export our goods promise might be reached for Florida’s moment for us and Central America into this region. sugar producers so that they would be Although I do think it is important treated fairly in the event of a CAFTA and the Dominican Republic. It rep- resents a future partnership in trade to recognize this agreement will not agreement. and economic development, a better fu- come close to solving all of the prob- After many meetings, phone calls, ture, a better life, and will hopefully lems in Central America, it should be a conference calls, and hard work by Sec- help improve economic conditions and building block in addressing the great retary of Agriculture Johanns, Ambas- sador Portman, my good friend, the provide political stability. needs of this important part of our We have a chance to help our Na- distinguished chairman of the Agri- hemisphere. I believe DR–CAFTA is an tion’s manufacturers, businesses, farm- culture Committee, Senator CHAM- important moment. I believe its adop- ers, and ranchers knock down trade tion does not fix all that needs to be BLISS, along with a group of colleagues barriers and help our country remain done. I think its rejection would be a that Senator CHAMBLISS pulled to- competitive in a global marketplace. tremendously bad signal to this region. gether, an agreement has been offered In summary, I have said consistently It would be a tremendous blow to our that I believe extends and offers an op- that before I voted for CAFTA, I want- furtherance of democracy and stability portunity to deal with the sugar prob- ed to ensure that all of Florida’s agri- and economic prosperity for Central lem. cultural sectors were treated fairly America. It is a very important step in I thank our Trade Representative, under this agreement, including the improving labor conditions, boosting Rob Portman, for his hard work in try- sugar producers. economic growth throughout the Cen- ing to address the concerns of this im- I have worked hard to find a com- tral American region. portant part of our agricultural indus- promise that would offer protections to CAFTA is a critically important try. I am also very thankful for the Florida’s sugar producers from the trade agreement for the State of Flor- leadership of my colleague, Senator threat of a flooded domestic sugar mar- ida. We are the gateway to Latin CHAMBLISS, chairman of the Senate Ag- ket. America, to Central America particu- riculture Committee. Secretary I believe the proposals put forth by larly. Countries in Central America Johanns, from the Department of Agri- Secretary Johanns and the administra- and the Dominican Republic form the culture, was also instrumental in en- tion to hold imports of sugar to levels largest foreign market for Florida ex- suring that we could come to a pro- included in the 2002 farm bill is the ports. posal on how we could best ensure that best case scenario for Florida’s sugar In 2004, Florida exported $3.2 billion our domestic sugar producers were producers and ensures that they are of merchandise to the region, far sur- treated fairly after a CAFTA agree- treated fairly not only under CAFTA passing that of the other 49 States. ment. I thank them all for their work but NAFTA as well. CAFTA is Florida’s largest export mar- on this important issue to our State. The sugar industry is incredibly im- ket for paper, electronic equipment, My goal was to ensure that the Flor- portant to our State, to our economy, and fabric. ida sugar industry was treated fairly, and a vital part of our agricultural sec- The CAFTA region is Florida’s sec- be given a viable role in the future, and tor. The industry provides, as I said, ond largest export market for com- that they did not become the one in- over 23,000 jobs. Therefore, this is an puters and computer equipment, ma- dustry in Florida, the one segment of industry that we want to make sure chinery, and processed foods. Most of our agricultural industry that would be was not overlooked as we went about DR–CAFTA agricultural goods already harmed by a CAFTA agreement. But I seeking this agreement. enter the United States duty free. This do believe that this proposal offered by Having obtained what I thought was will now even the playing field for our Secretary Johanns and the administra- a fair and reasonable offer, I believe exports into the region. tion is the best case scenario for Flor- now I can wholeheartedly support the The CAFTA treaty is supported by ida’s sugar producers. CAFTA agreement. I believe it will be the Florida Chamber of Commerce, The Secretary’s offer is multifaceted. good not only for the United States Greater Miami Chamber of Commerce, One, foreign sugar from all foreign and the State of Florida, but also for the Orlando Regional Chamber of Com- countries cannot exceed the farm bill’s our neighbors in Central America and merce, the Greater Tampa Chamber of 1.532-million-ton limit, regardless if it the Dominican Republic. I think it will Commerce, Governor Jeb Bush, Florida came from CAFTA countries, Mexico— provide a new opportunity and begin- Citrus Mutual, Seaboard Marine, Asso- which is under NAFTA and not subject ning and a new hope for this region to

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00018 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 30, 2005 CONGRESSIONAL RECORD — SENATE S7715 begin on a much stronger road to eco- through Florida’s ports. This increase bassador Portman who directly gave nomic development, to economic self- in business and industry for my State me his word—said: Do you want it in sufficiency, and, hopefully, tied into is a good deal and will increase our writing? I said: I accept your word, that is political stability, democracy, connections with these countries and that is good enough for me, but others the rule of law, and the free market all of Latin America. may like to see it memorialized. He system. This agreement is also, I believe, in said: I will get you a letter. I yield the floor. our national interest. Free and fair I have this letter, and I ask unani- The PRESIDING OFFICER. Who trade creates new economic opportuni- mous consent that the letter be printed yields time? ties for Americans, and it creates eco- in the RECORD. Mr. DORGAN. Mr. President, I sug- nomic uplift in these other countries. There being no objection, the mate- gest the absence of a quorum. This economic uplift is critical to en- rial was ordered to be printed in the The PRESIDING OFFICER. The suring that these countries remain sta- RECORD, as follows: clerk will call the roll. ble and people are not forced to emi- THE DEPUTY SECRETARY The legislative clerk proceeded to grate in search of employment. OF AGRICULTURE, call the roll. As we try to stabilize countries in Washington, DC, June 30, 2005. Mr. BAUCUS. Mr. President, I ask the region, promote democracy, clearly Hon. BILL NELSON, unanimous consent that the order for U.S. Senator, Hart Building, their economic enhancement is in the Washington, DC. the quorum call be rescinded. interest of the United States, in order DEAR SENATOR NELSON: I write to provide The PRESIDING OFFICER. Without to see those struggling democracies further guidance on the feasibility study objection, it is so ordered. flourish. And that is the clear message outlined in Secretary Johanns’ June 29, 2005 Mr. BAUCUS. Mr. President, I yield I heard as I traveled extensively letter to Senator Chambliss (attached), 10 minutes to the Senator from Flor- throughout Latin America. which was the result of discussions between ida, and following the remarks of the Unfortunately, as we know, free- the Senator, the Administration and the Senator from Florida, I ask unanimous Members of Congress that the Senator trade agreements do not affect all in- brought together. consent that 10 minutes then be allo- dustries equally, and Florida has vul- They agreed that the Secretary would con- cated to Senator SESSIONS and that the nerable industries that we must pro- duct a feasibility study on converting sugar time be taken out of the time allocated tect from unfair trade practices. My into ethanol and submitting the results of to Senator GRASSLEY. colleagues have heard me speak many the study to Congress not later than July 1, The PRESIDING OFFICER. Did the times about the Florida citrus industry 2006. The Department of Agriculture will Senator yield 10 minutes to the Sen- and the threat that it faces from begin the feasibility study immediately and ator from Florida? I intend to have an initial meeting with our Brazil. Today, I raise my concerns economists during the week of July 4. Fur- Mr. BAUCUS. Yes, 10 and 10. about another important Florida in- thermore, it would be USDA’s intention to The PRESIDING OFFICER. Without dustry, and that is the sugar industry. issue an interim report by December 15, 2005. objection, it is so ordered. The Senator DR–CAFTA, as negotiated, asks our I hope this additional clarification is help- from Florida. sugar industry to sacrifice more than ful to you. Mr. NELSON of Florida. Mr. Presi- other commodities. American sugar Sincerely, dent, I worked on this trade agreement producers face an international market CHARLES F. CONNER, Deputy Secretary. pretty hard. Now that this agreement where sugar is sold at artificially low is in front of us, despite some lingering prices because of unfair labor practices Mr. NELSON of Florida. Mr. Presi- concerns I have, I will support it. This and habitual dumping. dent, this letter is from the Deputy agreement affects my State of Florida In the last FTA, the Australia agree- Secretary of Agriculture, who has more than any other State in the ment, interestingly, sugar was ex- promised to commence a feasibility Union. For example, in 2004, the State cluded, but the administration changed study on converting sugar into ethanol of Florida exported $3.2 billion worth of course on CAFTA negotiating extra and to start it immediately, with an merchandise to the DR–CAFTA region. sugar access and, at the same time, es- initial meeting of the agricultural Florida has the highest total among tablishing a new precedent. economists next week, the July Fourth any State. The next nearest State, I worked with numerous Senators, week. I believe at that point they will Texas, exported $1.8 billion. And the especially over the last 3 weeks. I have and should lay out a baseline of the DR–CAFTA region accounts for 11 per- raised sand with the administration knowledge we have on this issue. I expect that will occur, and I expect cent of Florida’s total exports. about these provisions. I have let them that quite a lot of research on con- Florida does stand to gain a great know that there was more that could verting sugar into ethanol has already deal from this agreement. Miami, be done to protect the American sugar been carried out and that this study which is really the capital of the Amer- industry. In response, the administra- should acknowledge this research and icas, is the national gateway to Central tion has made some commitments that build upon it. In other words, don’t America and the Dominican Republic. I believe will help mitigate the impact start the feasibility study from Throughout the rest of Florida, we on our domestic sugar producers scratch. have other industries that will also in- through the life of the 2002 farm bill, The Deputy Secretary has also prom- crease their business and explore new which will go for another 2 or 3 years. ised me that the Department of Agri- opportunities in the region. Sugar levels available on the U.S. culture will issue an interim report in These Florida industries stand to market will not go above the level es- addition to what they had earlier grow enormously. Because of our tablished in the farm bill. Ambassador promised, a report that would be con- unique relationship, we have been talk- Portman, the U.S. Trade Representa- cluded by July of next year, 2006. In ing about thousands of jobs created in tive, and I had a personal eyeball-to- this letter, the Deputy Secretary says the first year and tens of thousands of eyeball meeting this afternoon. He they will issue an interim report by jobs in the coming years as a result of made it clear to me that there is no December 15, 2005. DR–CAFTA’s enactment. prospect of any substantial sugar con- The feasibility study is a start, but I have been to the Dominican Repub- cessions being included in any other we can do much more. In every other lic. I have spoken with the President, trade agreements through the life of ethanol program around the world, Leonel Fernandez. I recently went to the farm bill. This was an individual sugar is included. I urge the conferees Honduras at the invitation of the conversation, and he is not going to on the Energy bill and the administra- President Maduro and spent a couple of take that position officially because he tion to make sugar a part of the eth- days there and spoke at length with does not want to tie his hands, but that anol program established in that bill. not only our U.S. embassy personnel is the bottom line of our conversation. I ask unanimous consent that my let- but members of the Government of The administration has also com- ter to the conferees be printed in the Honduras. mitted to study the feasibility of con- RECORD. I believe that dramatically lower tar- verting sugar into ethanol. At my urg- There being no objection, the mate- iff barriers also will lead to increased ing, the Deputy Secretary of Agri- rial was ordered to be printed in the exports to the region from Florida and culture—and this was arranged by Am- RECORD, as follows:

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00019 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7716 CONGRESSIONAL RECORD — SENATE June 30, 2005 U.S. SENATE, One might want to look at the side a home, got married, raised a family, Washington, DC, June 30, 2005. agreement dealing with sugar from built schools, built communities. What Hon. PETE V. DOMENICI, Mexico; one can then go on to a sweet- a remarkable country this has been. Chairman, Senate Energy and Natural Re- ener agreement with Mexico; then can It all comes back to this book, this sources, U.S. Senate, Washington, DC. Constitution. Other countries have Hon. JOE BARTON, go on to a lot of these areas and under- Chairman, House Energy and Commerce, House stand that there are a lot of promises constitutions, but none are quite like of Representatives, Washington, DC. in order to get these bills passed, but this Constitution. This Constitution Hon. JEFF BINGAMAN, by and large they do not amount to says something about international Ranking Member, Senate Energy and Natural very much. They will not need anybody trade and commerce. It describes the Resources, U.S. Senate, Washington, DC. in this Senate after the ‘‘yes’’ votes are regulation of commerce and trade to Hon. JOHN D. DINGELL, cast. the Congress. It is our responsibility, Ranking Member, House Energy and Commerce, I start at the beginning, if I might. I not the President’s responsibility. House of Representatives, Washington, DC. know we are nearing the end of this de- So over a number of years we have DEAR SIRS: I support the inclusion of provi- bate. I do not want to go all the way worked on and dealt with these issues sions in the House and Senate energy bills to and then we have had in many ways an increase the renewable content of our motor back to the beginning, but let me go vehicle fuel. Renewables such as ethanol back a fair piece. It is when John almost breathtaking series of decades. burn cleaner, reduce tailpipe emissions and Adams is in Europe as they are putting We have split the atom, we have decrease the amount of oil in our gasoline. this new country together. He is in Eu- spliced genes, we have cloned animals, But, I urge the Energy Bill Conference Com- rope representing our country. He we invented plastics, nylon, the radar, mittee to require that 100 million gallons of writes back to his wife Abigail and the silicon chip. We cured polio, small- the five to eight billion gallon-a-year eth- asks Abigail the question: Where is the pox. We built airplanes, learned to fly anol mandate be sugar-based. them. We built rockets, flew to the As you know, sugar cane stalks, or ba- leadership going to come from? Where will the leadership emerge to help form Moon and walked on the Moon. We cre- gasse, produce almost twice as much ethanol ated telephones, television sets, com- per acre as corn and several countries use this great country of ours, to help form sugar-based ethanol to fuel their motor vehi- a new government? puters. What a remarkable set of cles. In fact, Brazil reduced their importa- He plaintively kept asking, where achievements for the men and women tion of oil from 80% of their demand in the will the leadership come from? Then in in this country who are the doers, the 1970s to 11% today in part by using ethanol, subsequent letters he would say to her, achievers, the inventors. We stand on much of it sugar-based. For these reasons, there is really only us. There is me. each other’s shoulders looking to the specifying that a 100 million gallons of There is Thomas Jefferson, Ben Frank- future. sugar-based ethanol be required as part of So about three decades ago things the overall ethanol motor vehicle fuels pro- lin, George Washington, Madison, Mason. Of course, in the rearview mir- began to change. This world became gram would be an important step towards de- smaller. We started hearing about the creasing our use of fossil fuels and increasing ror of history, the only ‘‘us’’ represents global economy. We began to do more our use of renewable fuels. some of the greatest human talent ever and travel more and have more connec- Thank you for your consideration. assembled. They wrote a document tions with other parts of the world, and Sincerely, that is the most remarkable document. particularly large corporations which BILL NELSON. It is a document called the U.S. Con- were developed because of economies of Mr. NELSON of Florida. Expansion of stitution that begins with ‘‘we the peo- scale. Those large corporations began alternative fuel programs is an urgent ple.’’ That Constitution that begins to be able to do business in more than national priority. If we are concerned with ‘‘we the people’’ provides mecha- one country. Then they defined for about importing 60 percent of our daily nisms, the framework of our Govern- their own interests the opportunities oil consumption from foreign lands, we ment, the framework of a representa- best develop a substitute, and ethanol by which they would do that business. tive democracy. It then became a global economy. In works in our existing gasoline engines. Over many years, with that docu- that global economy, we began to hear In conclusion, frankly I believe the ment providing the fabric of the the term free trade, free trade, like a administration could have done better. growth of this great country, we have chant, almost like the hare krishna They could have started discussions been a country that has been divinely chanting on a street corner, wearing with the industry sooner by allowing blessed in many ways. We have built a all parties to explore the available op- robes: Free trade. place unlike any other place on the Well, free trade is of little interest to tions. I believe more time could have face of this Earth. There is no place me. I am very interested in expanded led to further agreements and com- like it. One can spin the globe and on trade and fair trade, but free trade, promise, but I must look not to the in- this little planet called Earth, with 6 there are a lot of things that are free. terests of one very important industry billion neighbors, there is no place This country built a place unlike any in my State but also to the greater in- quite like the United States of Amer- other on the face of this Earth and we terests of Florida and especially the ica. need to be concerned about its continu- Nation as a whole. We created an expanded set of oppor- ation. So the question is what kind of I will vote for CAFTA today. It is im- tunities for all Americans, through a trade gives us the opportunity to con- portant to my State and it is impor- lot of good decisions; for example, uni- tinue improving the standard of living tant to the Nation. versal education. We as a country de- in America, creating an economy that The PRESIDING OFFICER. The Sen- cided long ago every young child ought produces new jobs and new opportuni- ator’s time has expired. to be whatever their God-given talents ties? Who yields time? allow them to be. We are not going to I am sure every single set of parents The Senator from North Dakota. separate kids in our school system. in this country wants things better for Mr. DORGAN. Mr. President, I have They get to go to school and they get their kids. If there is something in sec- great respect for all of my colleagues to become whatever their talents allow ond place, beyond the importance of no matter what they decide to do on that child to become. their children, I guess I understand this vote. I think the vote is probably That universal education for all that, but everybody would believe, I ex- predetermined this evening. I must say Americans has created a country that pect, that what is most important in there are a lot of promises I have heard is unlike any other in the world. We their lives is their children. We care on the floor the last day or so. There went from the Colonies to the States. about these things that affect our chil- have been a lot of promises made down- We survived a Civil War. We beat back dren. Are we sending our kids to good town. I would only point out that I a Depression. We resisted the oppres- schools? Are we proud of these schools? have seen the result of most of these sion of Adolf Hitler, won a Second Do we believe we are able to leave a promises after the votes are taken and World War. We provided a GI bill, and world that is a better place in which to most of them have not been worth the when those soldiers came back from live than the one we found? Is that paper they are written on or the assur- that war, they went to college. They what we are going to do for our kids? ances given have not been valuable at got their college degrees. They came So as we confront this question of all. back to their communities. They built the new global economy and a new

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00020 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 30, 2005 CONGRESSIONAL RECORD — SENATE S7717 global strategy, the galloping lowest cost production in the world. The story is the Chinese want to buy globalization of our economy, without Get your Gulfstream, circle the globe the ninth largest oil and gas company a set of rules that has kept pace, the and find out where you can produce for in the United States called Unocal. question for all of us is: What does it 30 cents an hour. Move that job to that Why would they want to buy Unocal? mean for our country? What does it area and, by the way, when you do, we They are like everybody else. They mean for our future? What does it will give you a tax cut. Let me say want to control oil to the extent they mean for our kids—especially our kids? that again, because that is kind of a can. The Chinese, I am told, now have In the past decade, we have seen a Byzantine proposition. When you close 20 million cars. They have 1.3 billion very substantial loss of American jobs. your American factory and fire your people. By 15 years from now they are Some people say, do not worry, be American workers, you get a tax cut expected to have 120 million auto- happy, ignore it. It is all part of the from our Government. And, yes, I have mobiles. They are going to need gas. transition. What we will see is our low- tried twice to change that in the Sen- They are going to need a lot of gas. The skilled jobs move elsewhere, we will ate and, yes, a majority of the Senate price of oil is not going to go down, it educate our children, and we will as- voted to keep a tax cut for workers is going to go up. They want to buy an sume the role of high-skill, high-pay- who get fired and companies that move oil company. I don’t think this should ing jobs; don’t worry. those jobs overseas. I will put in the happen in a million years, by the way. So we pass trade laws. They are CONGRESSIONAL RECORD their names. I I don’t think we should have the Chi- called CAFTA and NAFTA and GATT, really don’t need to. A very easy Nexis- nese buying American oil companies, WTO. We do all of these things. Then Lexis search will give you the names of but I will tell you why this is hap- somehow, at the end of this process, we who decided they should keep their tax pening. It is happening because these look back and we see, you know, some- cuts for companies that move their trade deficits are putting massive thing fundamentally has changed. jobs overseas. amounts of money in the hands of Chi- Somebody has pulled the rug out from The point is, we are seeing this inevi- nese, and it gives them the opportunity under what are the basic strengths of table, relentless move to produce where to purchase, on the open market, this country—a good job that pays it is cheap and then sell into the estab- America’s stocks, bonds, companies. well, that provides benefits, that you lished marketplace. The problem is, I mentioned previously that Warren can count on. this is unsustainable. This is a theory Buffett, whom I like a lot—I think he About 30 years ago the biggest cor- that is off track and it is a practice is the second richest man in the world, poration in America was General Mo- that injures this country. but you would never know it. Warren is tors. In most cases, people who went to Why do I say the theory is off track? just a great guy. Warren Buffett de- work for General Motors expected to Henry Ford decided, when he was going scribed this problem as ‘‘a country that work there for a lifetime. They were to make Fords, that he wanted to pay is now aspiring to an ownership society paid well and they had benefits, health his production workers sufficient will not find happiness in a share- care and retirement. That was 30 years money so that they could buy the cars cropper society.’’ ago. they were producing. That is pretty This is where we are heading, he Now the largest corporation is Wal- simple. That is simple economics. If says, a sharecropper society. He de- Mart. They do not pay so well. Most you are paying your workers enough scribes this is when every day, 7 days a people do not spend a lifetime at Wal- money so they can buy the products week, you put $2 billion in the hands of Mart. The average wage is much lower, they are producing, you have a market foreigners. You are buying $2 billion and a fairly substantial number of and a consumer for the product. A pret- more from foreigners than you are sell- their employees do not have benefits. ty smart guy, Henry Ford. ing to them every day, 7 days a week. That is a very substantial change, Now it has changed. Now we should You are putting $2 billion more into really a dramatic change in our coun- produce those shirts and those shoes hands of foreigners and foreign govern- try. But the biggest change has been and those trousers and all the trinkets ments. That means each day they have the development of a set of ideas by where you can do it for 30 cents an more purchasing power to buy another those who are able to influence hour and then ship it to Fargo and To- part of America. That is where this thought in this country, particularly ledo and Dayton and Los Angeles and comes from. The Chinese want to by the largest corporations that have un- New York and sell it there. Unocal. That is where the money limited quantities of money, who con- The question is, Who ultimately is comes from, the $140 billion trade def- vinced us that free trade, as a moniker, going to buy that? Who ultimately will icit with China last year. That means is a mechanism for success in our coun- buy this? they have our country’s currency. They try. We have a lot of dislocations that are have the capability of buying our So we pass trade agreements, the end dangerous. I have not talked at all stocks and our companies. of which means we lose American jobs, about this, and I will not talk at The question is, Do we care about lose economic strength, and somehow length. A part of this, by the way, is that? Does anybody here want to believe that somewhere in the future oil. A part of this is oil. There are some change the strategy or do you want to things are going to get better. on this globe who are lucky enough to do some more of it? I want to show a chart I have shown have enough oil under the sands so if The attitude in the Senate, as I think many times during this debate. It is a you stand in a depression in the sand we will discover when the vote is taken chart that shows what has happened with boots, your soles are going to look tonight is that if you are digging your- with our trade deficit. This is a dan- oily because some parts of this world self into a hole, what you need is more gerous trend. Behind these red lines are are loaded with oil, particularly the shovels and just dig a little harder. lost jobs, families who lost their jobs, Middle East. So the Saudis, Kuwaitis, That makes no sense to me. hundreds of them, thousands of them, Iraqis, and others have a lot of oil. We If there is one person in the U.S. Con- and millions of them. Not many people are desperately and hopelessly addicted gress who does not understand the dan- in here know those people. No one in to it. Our economy is addicted to it, ger of this, then they are in the wrong this Chamber lost his or her job be- and that is part of this. It also relates business. This is trouble. This comes cause we all put a suit and necktie on to jobs because, when you have the from CAFTA, it comes from GATT, it and come to work. Nobody is going to purchase of oil from these countries— comes from incompetent trade nego- get outsourced or offshored in the Sen- Saudi Arabia and Kuwait and so on— tiators and bad trade deal after bad ate. But all these folks did. they end up with American dollars, trade deal. I just heard on the floor of I have lists of companies and lists of which means they want to buy Amer- the Senate today, I will bet you six names of people who just lost their job ican companies. They want to buy people who talked about promises that because of this new approach, a new de- American stock. It is a way of buying have been made to them in order to get fined approach in international trade part of our country. this trade deal through the Congress. that says in our country, we will be the In today’s newspaper it says, ‘‘China These promises mean nothing. These leader that says go ahead and find, Tells U.S. Not To Meddle in the Bid for are totally, completely empty prom- with the mechanism of production, the California Oil Giant.’’ ises.

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00021 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7718 CONGRESSIONAL RECORD — SENATE June 30, 2005 Let me briefly describe this. I am wood and cherry wood, high-end, ter- ably ask his Congressman or his Sen- going to use Warren Buffett to describe rific furniture, made for many decades ator: What is going on there? Are you it because, again, I like Warren in Pennsylvania and marketed as standing up for America, standing up Buffett. He described it this way. Stay Pennsylvania Furniture. for jobs in this country? Absolutely, he with me just for a moment. Pennsylvania House Furniture was will hear. You bet your life. We are all To understand why, take a wildly fanciful purchased by Lazy Boy Corporation for American jobs. It is just that the trip with me to two isolated, side-by-side is- about 4 years ago. Lazy Boy decided it trade agreements trade them away— lands of equal size, Squanderville and is just too expensive to manufacture quickly. The majority of the people in Thriftville. Land is the only capital asset on Pennsylvania House furniture in Penn- the House and the Senate are going to these islands, and their communities are sylvania, so we have to move it to vote for these trade agreements. primitive, needing only food and producing China. Now Pennsylvania House fur- America Online—December 2003—had only food. Working eight hours a day, in niture will be made in China. They will just laid off 450 American employees, fact, each inhabitant can produce enough mostly design engineers and software food to sustain himself or herself. And for a ship the wood from Pennsylvania to long time that’s how things go along. On China, the hardwood, the cherry wood. engineers, in its California offices. each island everybody works the prescribed They will put it together in China and Then those same engineers read that eight hours a day, which means that each so- ship the furniture back. America Online was trying to hire soft- ciety is self-sufficient. So it is for Robert Zechman. Robert ware development teams and engineers Eventually, though, the industrious citi- Zechman worked for that company for in Bangalore, India. Does that mean zens of Thriftville decide to do some serious 29 years. On December 21, four days you change your name to India Online, saving and investing, and they start to work from Christmas, he got his letter: You or is it still America Online that di- 16 hours a day. In this mode they continue to vests itself of U.S. employees and hires live off the food they produce in eight hours get $92-a-year severance for the service of work but begin exporting an equal amount you have given this great company. the engineers in Bangalore? to their one and only trading outlet, Now we are shipping the wood and your The list is endless. We come down, fi- Squanderville. job to China. They put the furniture nally, to a choice, a choice this Senate The citizens of Squanderville are ecstatic together and ship it back. We will still will make once again on another trade about this turn of events, since they can now call it Pennsylvania House Furniture, agreement. The NAFTA trade agree- live their lives free from toil but eat as well but the only Pennsylvania part of that ment, called North American Free as ever. Oh, yes, there’s a quid pro quo—but Trade Agreement, was negotiated be- to the Squanders, it seems harmless: All that furniture is the wood. The people are expendable. tween the United States, Mexico, and the Thrifts want in exchange for their food is Canada. It was just one more chapter Squanderbonds (which are denominated, nat- The question is, Does anybody care urally, in Squanderbucks). about that? Does it matter to anybody? of bad trade agreements. But before Over time Thriftville accumulates an enor- It mattered to Pennsylvania. Governor that trade agreement, we had a slight mous amount of these bonds, which at their Rendell said: We have 500 people who surplus in trade with Mexico. We had a core represent claim checks on the future work here. We would like to save these modest deficit with Canada. Now we output of Squanderville. A few pundits in jobs. They put together an effort to have had about 10 years of trade agree- Squanderville smell trouble coming. They ments called NAFTA, and now we have foresee that for the Squanders both to eat save those jobs. Finally, we were told that Lazy Boy said: We are not inter- a very large trade deficit with Mexico and to pay off—or simply service—the debt and a larger trade deficit with Canada. they’re piling up will eventually require ested in having competition domesti- One would wonder if somebody would them to work more than eight hours a day. cally, so we are not going to sell. We But the residents of Squanderville are in no are moving to China. stand up and scratch their head and mood to listen to such doomsaying. Same story with Huffy bicycles. say: Gee, I wonder if we didn’t make a Meanwhile, the citizens of Thriftville begin Same story with dozens and dozens and mistake here. The economists, by the way, who to get nervous. Just how good, they ask, are dozens of companies. the IOUs of a shiftless island? So the Thrifts I spoke last week about a refrig- most trumpeted the benefits of change strategy: Though they continue to NAFTA, the North American Free hold some bonds, they sell most of them to erator company that decided they will close their American plant, notify the Trade Agreement, were two economists Squanderville residents for Squanderbucks named Hufbauer and Schott. I am sure workers: No jobs in this country for and use the proceeds to buy Squanderville they are still practicing economists. I land. And eventually the Thrifts own all of you anymore. Why? Because we are see the names Hufbauer and Schott. Squanderville. going to make those refrigerators in At that point, the Squanders are forced to I actually used to teach economics. Mexico. And, by the way, just to rub Economics is just a little bit of psy- deal with an ugly equation: They must now salt in the wound, one part of the man- not only return to working eight hours a day chology pumped up with a lot of he- in order to eat—they have nothing left to ufacturing plant with which they will lium. I taught it for a little while and trade—but must also work additional hours manufacture those refrigerators in was able to overcome that experience to service their debt and pay Thriftville rent Mexico has an Ex-Im Bank loan. That and still lead a productive life. on the land so imprudently sold. In effect, is a loan subsidized by this Govern- But these economists, Hufbauer and Squanderville has been colonized by pur- ment to build a part of a plant in Mex- Schott, said: If you just pass NAFTA, chase rather than conquest. ico to house the jobs of the workers we will promise you a remarkable fu- That is my friend Warren Buffett’s who were fired in this country to build ture. What will happen is jobs will description of what is happening. And some refrigerators. transpose. We will see low-income, low- it is why, by the way, the Chinese have Does it matter? Maybe not to some. skilled jobs being performed by Mexi- the money to buy Unocal. This is about It matters to me. Does it matter cans and high-skill, high-wage jobs now Squanderville and Thriftville. The whether we make refrigerators? Does it producing a product to be sold into an question he asks: Is anybody listening? matter whether we make fine fur- emerging middle class in Mexico, and Regrettably, the answer in the Senate niture? Does it matter whether we those will be produced in America. is: Precious few. have a manufacturing base? Will Amer- These people were totally, com- I have spoken at great length about ica remain a strong world-class econ- pletely wrong about everything. Has companies. I have not spoken pre- omy if it gives its manufacturing sec- anybody said, We were wrong? Of viously about Pennsylvania House, tor away? course not. In this debate on CAFTA, which I will do just for a moment. I In the last 25 years, we have lost one- which is another acronym—NAFTA, have talked about Huffy bicycles, half of our manufacturing capacity. Is CAFTA, SHAFTA, whatever it is—on Radio Flyer little red wagons, Fig New- there anybody here who is having an this debate, we are now hearing ton cookies—which, by the way, went apoplectic seizure about that? Not NAFTA was really good. Boy, if we to Monterrey, Mexico, so if you want hardly. We snore our way through this. could just get some more of this some Mexican food, order Fig Newton President after President gives us a spoiled trade agreement, somehow cookies. new trade law to see if we can improve things would be better off. They would Let me tell you about Pennsylvania on this massive debt that keeps grow- not be better. House Furniture, high-end furniture ing and growing and growing. In the Let me try to tell you what I believe made with Pennsylvania wood, hard- meantime, Robert Zechman will prob- our obligation is. Yes, I want a strong

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00022 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 30, 2005 CONGRESSIONAL RECORD — SENATE S7719 economy. Yes, I want American compa- reans, with respect to that piece of bi- did not have hope, I would not serve nies to understand we support their in- lateral trade, if that is what you want here in the Senate. We come here from terest in competing around the world. to do on bilateral automobile trade, a quiltwork of interests around the But I believe that, first of all, in the then, for a while, why don’t you sell country—some big States and some boardrooms they ought to say the your cars in Zambia? Just ship them to small States, some big towns, some Pledge of Allegiance from time to Zambia, and we hope you have a good small towns, ivy league colleges and time. If we charter American corpora- commercial success with them. Very State schools. I come from a town of tions as artificial people—and that is soon, they would understand they need 300 people. I think it is a thrill every what a corporate charter is about. We the American marketplace, and in ex- day to go to work. I think it is a spe- say we are going to create you as an ar- change for needing the American mar- cial privilege to be here. If I did not tificial person. We are going to give ketplace, to have their marketplace have hope, I would not keep coming you a charter which gives you limited wide open to us. here, I would not have run for reelec- liability. You can sue and be sued, con- We know, those of us who will vote tion last fall. tract and be contracted with. You are, against this, and especially those who I still have hope that, in the long in fact, an artificial person. If that ar- speak as I do, we know that the Wash- run, we will understand that the path tificial person, by corporate charter, ington Post, which will largely not run we are on cannot be sustained and given by this country, is in America, any op-ed pieces from those of us who there is a better path. And it is not a then it ought to care just a bit about hold our view, they and the other insti- path that is selfish. It is not demand- this country’s interests. And, yes, tutional thinkers on this will say: ing ‘‘us or nothing.’’ It is just a path maybe just a recitation of the Pledge Well, do you know what you are? We that understands our first responsi- of Allegiance, occasionally, in the have just heard you speak, and you ba- bility is to nurture and strengthen and boardroom might help. sically ignore the world as it is. You protect this country of ours and to do When we hear people say, ‘‘We want are willing to reject the global econ- what we think is necessary to give our all the benefits for our corporation omy, despite the fact that it exists and kids opportunities. We need to leave being American, except the responsi- is there. And what you are is a this place better than the way we bility for paying taxes is something we xenophobic, isolationist stooge that found it. And that is not what is going want to shed,’’ I worry about loyalty simply is incapable of seeing over the to happen unless we change course. So I am on the floor of the Senate, and commitment to this country. And, horizon. You don’t have the breadth of not to preach but just to try to play a yes, that is happening. We see what is thought we do. And because you don’t, role in seeing if we cannot finally called inversions, where corporations you have a basic level of ignorance. That is how they treat people who do make a U-turn on these issues and head want to renounce their American citi- not buy into the jingoism of free trade. in the right direction, in a direction zenship to become citizens of the Baha- This country used to be known as a that says to our trading partners— mas. Why? Because they want to be- country of shrewd Yankee traders. We China, Korea, Africa, South America, come Bahamian citizens? No. Because were good. Our country wants us to CAFTA, Central America—it says to they want to avoid paying U.S. taxes. I succeed. We should want us to succeed. them: Yes, we care about this. We want have always said, if they want to do And we want to help others succeed to help you. We want to work with you. that, if they run into trouble, let them with trade relationships that help lift But we do not want to do that at the call out the Bahamian Navy. My under- others up, not push us down. But I have expense of taking the American econ- standing is, there are about 24 people described already what we have gone omy apart. We do not want to do that in the Bahamian Navy. Let them call through in the last century. at the expense of saying to American on the Bahamian Navy. Unlike almost any other country on families: We are busy helping some- The point is, I think we ought to sup- Earth, in the last century we decided body else down there, and so we do not port American companies in competing some pretty basics things. And there have time to worry about your job. around the world, but we ought to ex- are some people who had a tough time If this country says to the people who pect certain things from them as well. forcing these things to happen. I do not make bicycles, ‘‘You are paid way too The same is true with respect to other have the names of the people who were much. You are paid $11 an hour plus countries. Whether it is China, Japan, killed on the streets of America who benefits. We cannot afford that. Those Europe or Korea, we should not any were demanding the right for labor to jobs go to China,’’ there is destined, in longer sit idly by and roll our eyes at be able to organize, but they died. my judgment, to be nothing but hope- trade agreements that are unfair to our Those who fought for a safe workplace, lessness for those who come after us. I workers and unfair to our companies. they suffered. Those who demanded a do not believe we can allow that to be Let me again mention just one spe- fair part of the income stream in this the case. cific piece of information. I do not country for those who work for a liv- I started by saying John Adams used mean to pick on Korea for the sake of ing, they too paid the price for that. to write back to his wife, when he was picking on Korea. I have spoken about Those who fought, who said, belching helping put this great country to- the Chinese automobile trade pre- chemicals into the air and water out of gether, and asked her plaintively: viously. Korea, this year, if this year is our factories, it is poisoning where we Where is the leadership? Who will be similar to last year, will likely send us live, and you have to stop it—and they the leaders? Where will the leadership about 680,000 Korean cars, all on ships, forced Congress to put an end to it— come from in this country? And the an- to be delivered to the United States, they paid a price for that as well. swer in every generation in America and to be sold in the United States— But we did all that. It made sense. has been to provide that leadership. 680,000 cars produced in Korea, with Ko- And now all of a sudden we see that And that question is a loud question in rean labor, to be shipped to the United does not matter. What matters is to be this country, again. It begs for an an- States. able to pole-vault over all of those reg- swer. Who will be the leaders? Where Do you know how many cars the ulations and go set up a factory in will the leadership come from to put United States will produce that we will Guangzhou and produce that com- this country back on track, to put its be able to sell in Korea? Do you think modity and send it to Pittsburgh. And economy back on track, so 5 years, 10 it will be 680,000? No, 3,900. Do you the consumer may get a $25 lower bill years, and 25 years from now we can know why? Because Korea does not for that commodity. The consumer see something that gives us some con- want American cars sold in Korea. probably lost their job to the worker in fidence and some faith this is going to They had a little spurt once on the the factory in Guangzhou, but they are be a better place for our children. Dodge Dakota pickup, and they shut able to pay slightly less for that com- Mr. President, I reserve the remain- that down real quickly. So 680,000 cars modity. That is not a bargain for our der of my time and yield the floor. coming this way; 3,900 cars going from country. It is a way for our country to U.S.-DOMINICAN REPUBLIC, CENTRAL AMERICAN the United States to Korea. lose economic strength and to lose its FREE TRADE AGREEMENT I think for us to put up with this way. Ms. MIKULSKI. Mr. President, I rise stuff is unbelievable, just unbelievable, Now, let me just conclude by saying to oppose the U.S.-Dominican Repub- in its ignorance. I would say to the Ko- I have great hope for this country. If I lic, Central American-Free Trade

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00023 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7720 CONGRESSIONAL RECORD — SENATE June 30, 2005 Agreement, CAFTA. I support free work for, but we aren’t concerned of both sides. Exports play a central trade when it is fair trade. Yet this about how they treat you. That’s not role in the economy of my home State agreement is not fair for workers in the message I want to send to our of Vermont, where some of the finest America or in Central America. neighbors. specialized goods in the world are The truth is, this agreement will not On the environment, we also face made, from computer chips to cheese. dramatically change the trade rela- some serious challenges in the CAFTA Free and fair trade benefits us as tionship between the United States and countries. Vermonters, and it benefits the coun- our neighbors in Central America. As with the labor provisions, the en- try. I have often voted in favor of var- Thanks to existing agreements, like vironmental provisions in CAFTA are ious trade agreements, including the Caribbean Basin Initiative, there too weak. The one enforceable environ- NAFTA and recent bilateral trade ac- are relatively few trade restrictions mental provision simply requires coun- cords with Jordan, Singapore, and today between the U.S. and the nations tries to ‘‘effectively enforce’’ their own Chile. of CAFTA. environmental laws. I strongly believe free trade and the The small increases in trade of tex- Again, I believe in free trade that is agreements that facilitate it will be tiles and agriculture products that will fair trade. And fair trade must include critical to the well being of my State result under CAFTA represent a very environmental protections. We need and our country in the years ahead. modest increase in U.S. revenue. Ac- strong, enforceable environmental pro- But we have a responsibility to our- cording to the U.S. International Trade visions to protect American jobs. We selves and those we trade with to make Commission, CAFTA will generate a also need them to ensure that our sure these agreements are soundly net increase in U.S. revenues of just neighbors have access to the same predicated, are fair to both sides, are 0.01 percent per year. clean air and safe drinking water that constructed to advance the interests of So this agreement is not going to do we enjoy. the many and not just a few, and that much to help the American economy. Finally, Mr. President, I am very they will protect the environment upon But it contains provisions on labor, the concerned that CAFTA unfairly ex- which we all ultimately depend. I do environment and sugar that could poses the American sugar industry not believe this trade agreement ade- harm America’s working men and without opening other markets for U.S. quately meets these tests, and I cannot women and their families. sugar. in good conscience vote for CAFTA. I think we have widespread agree- Even the administration recognizes I have great respect for some of Cen- ment that workers in the CAFTA coun- that CAFTA as it was negotiated will tral America’s leaders who favor this tries face very difficult conditions. unfairly target our sugar industry. agreement. I know they have the inter- In most countries, workers have a That is why they have come up with a ests of their countries at heart. But I very hard time trying to unionize and complicated scheme to pay CAFTA-na- believe they overstate the positive ef- bargain collectively. Intimidation of tion governments and sugar producers fects this agreement would have and union organizers is not unusual. It not to export sugar to America. give too little weight to negative ef- often goes unpunished. But this deal is no deal for the men fects. The weak labor and environ- There is even a significant amount of and women of America’s sugar indus- mental provisions of this agreement child labor in some sectors in these try. And it is no deal for the American will do little to help the hardworking countries. taxpayer who, under this plan, would men and women of Latin America, and So CAFTA is a prime example of a pay between $150 million and $200 mil- in fact may make their already dif- trade agreement that must have strong lion a year to foreign governments and ficult lives even harder and more dan- labor provisions if it is to guarantee companies. gerous. trade that is not just free, but fair. It makes no sense to negotiate an I also believe that this agreement is But there is only one labor provision agreement that opens U.S. markets to a diversion from the larger trade issues in this agreement that is enforceable foreign sugar and then pay foreign pro- that will make a real difference for the through the regular dispute settlement ducers not to take advantage of that long-term health of our own economy. procedures, and it is a weak one. agreement. This deal should be carefully and con- It does nothing more than require a Even this flawed plan would not do scientiously re-negotiated to ade- country to enforce its own trade laws, enough to protect the U.S. sugar indus- quately address these pressing con- no matter how weak. And if a company try from unfair trade. It would expire cerns. is found in violation of its national after just two years, exposing the U.S. There has been a lot of ink spilled trade laws, the government pays the market to cheap, low quality imports. from the administration and from fine—not the company. And it does nothing to open large, groups representing particular inter- That is not much incentive to en- protected sugar markets in Europe ests arguing that CAFTA will be a sig- courage employers to abide by the law that remain closed to U.S. sugar ex- nificant boost to the U.S. economy. and treat their workers with respect ports. When you are talking about Central and dignity. I support the idea of developing American economies that have a com- Let me be very clear about one thing. stronger ties between the U.S. and our bined gross domestic product of a me- I support trade. I encourage trade. neighbors in Central America. dium-sized U.S. city, this argument Trade is very important to my State. These nations have made great just does not carry weight. Yes, U.S. Maryland workers can compete suc- strides toward democracy and open- consumers might be able to buy some cessfully in a global marketplace, if ness. We should work more closely Central American exports at a cheaper they’re given a level playing field. with them to support their recent price. And, yes, U.S. manufacturers That’s why I support expansion of fair gains in the rule of law and efforts to might gain greater access to these trade. fight terrorism, organized crime and markets. But these countries are so I have supported past trade agree- drug trafficking. small that the impact on the U.S. econ- ments, like the Jordan Free Trade But this trade agreement is seriously omy will be negligible. For instance, Agreement, that included strong, en- flawed. It does not do much to increase this agreement would help the dairy forceable labor provisions. This agree- free trade, and it certainly does noth- producers in my home State of ment does not live up to those stand- ing to support fair trade. It is not fair Vermont only marginally, at the very ards. to American workers and their fami- best. CAFTA’s weak labor provisions are a lies, and it is not fair to workers in We all know that when we talk about raw deal for American workers. Central America. I will vote no, trade, what makes a real difference for They send a terrible message to the against CAFTA. the economy is trade with our larger men and women in CAFTA nations who Mr. LEAHY. Mr. President, I cannot trading partners—Europe, the NAFTA are trying to earn a fair wage to sup- in good conscience support the CAFTA countries of Canada and Mexico, sev- port their families. agreement as proposed by the Adminis- eral Far East Asian countries—but, Our message to them is, we want to tration. I reviewed this agreement above all, China. Yet we have an enor- do business with the companies you carefully and evaluated the arguments mous trade deficit with China today

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00024 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 30, 2005 CONGRESSIONAL RECORD — SENATE S7721 that threatens interest rates and the America to rework this deal. We need a rights on the job, CAFTA’s move back- strength of the dollar. better agreement that reaches the so- wards on workers’ rights is unaccept- China has maintained an artificially called Jordan Standard, including the able. As a businessman, I understand low exchange rate, removed voluntary strong labor and environmental provi- that trade agreements that open mar- export quotas, and continually in- sions of the United States-Jordan Bi- kets can be good for the economy—but fringed on international patents and lateral Free Trade Agreement that we not if they do so by accepting as the copyrights. It does not seem that this ratified a few years ago. global norm the least common denomi- administration has any strategy for More importantly, I hope the Presi- nator in labor and environmental dealing with these unfair trade prac- dent will deal with the mounting pile standards. tices, let alone with the fact that Chi- of economic and trade problems that The administration has agreed to na’s GDP is growing at almost 10 per- really do have profound consequences support $40 million per year from fiscal cent every year and will challenge us to our economy and the living stand- year 2006 to fiscal year 2009 to aid economically in the decades ahead. It ards of the American people. Let’s CAFTA countries with their labor and is a wonder to me that the administra- come up with a broader approach to environmental protection programs tion is seeking trade agreements that trade that addresses unfair trading and an additional $30 million per year are not part of a comprehensive strat- practices, that reduces our ballooning over the same period to assist farmers egy to deal with this kind of contin- trade deficit, that boosts our economy, in CAFTA countries who may be dis- ually escalating foreign competition. and that protects the environment and placed by the expected increase of agri- While this agreement will not make the rights of workers. I look forward to cultural imports from the U.S. Mr. much difference for our economy, it is working with this or any other admin- President, I am in favor of opening likely to have significant negative im- istration on these challenges. I cannot international markets for U.S. goods, pacts on the countries of Central cast a vote for an agreement like this but why do we need to spend $190 mil- America, and we should be concerned lion over 3 years to have countries that over-promises and under-delivers for the people of those impoverished trade with us? Wouldn’t it have been to the workers of our own country and countries. Over the past several dec- easier to have CAFTA countries work to the people of Central America. ades, dictatorships, civil wars and Mr. KOHL. Mr. President, I rise with the International Labor Organiza- fierce class struggles have buffeted the tion to develop the capacity to monitor today to express my strong opposition region, particularly during the Cold and enforce labor and environmental to the CAFTA implementing legisla- War when the larger geopolitical strug- protections? tion before us today. Unlike NAFTA, gle—in which we were a central play- At a time when the trade deficit CAFTA won’t encourage the migration er—exploited and heightened these keeps rising—$655 billion in fiscal year of a large number of manufacturing local tensions. These countries have 2004 up from $530 billion in fiscal year jobs out of the country or significant set out on a new, democratic path over 2003—and the Federal deficit is at an worsen our already terrible trade def- the past year, and our foreign policy all-time high, the U.S. needs to nego- icit; CAFTA countries only account for should encourage these favorable de- tiate free-trade agreements where both velopments. Unfortunately, the weak 1.5 percent of total U.S. trade. And un- sides play by the same rules. When I labor and environmental laws of these like the U.S.-Australia free trade meet with constituents and the con- countries and the complete failure of agreement which put my State’s dairy versation turns to trade or jobs, the this agreement to elevate and farmers at a competitive disadvantage, topic of China inevitably comes up and strengthen those standards ensures CAFTA harms most industries like I am asked what we are going to do that any growth that rises out of the sugar and textiles that do not have a about China. Mr. President, what are agreement is unlikely to translate into large presence in Wisconsin. we going to do about China? I certainly But there are bigger reasons to reject significant real gains for everyday have trouble trusting those who nego- workers and the broader population. CAFTA today—reasons that apply tiated CAFTA to work out the answer Under CAFTA, participating coun- across all regions of the country and to that dilemma—an answer that will tries are only forced to abide by their should convince all Senators. We have a much larger and more direct im- own often weak and rarely enforced should reject CAFTA because it makes pact on our economy. labor laws. Sadly, an oligarchic culture equal trading partners out of countries We cannot remain competitive with persists in these countries, whereby with labor and environmental stand- countries that pay their workers next wealthy business and landowners rare- ards far below those in the United to nothing, have no labor or environ- ly trickle down profits to the hard- States. Instead of using our negoti- mental standards, and who offer their working men and women who do the ating power with these countries to employees little or no health care. Yet work. Without stronger labor provi- lock in improvements in these stand- we are considering a trade agreement sions that provide increased benefits ards, CAFTA establishes rules on work- right now that asks us to do just that. and protections to workers, CAFTA ers’ rights that take a step backward And though the CAFTA countries are will do little to change that culture. from the labor conditions that exist in not large enough to impact our econ- A recent World Bank report on the current trade programs with Central omy significantly, the precedent set by agreement found that Central Amer- America. agreements like CAFTA—and the atti- ican countries will have to boost spend- When we make deals like CAFTA, we tude among our trade negotiators that ing for schools and rural infrastructure do more than give up jobs to low-wage CAFTA reveals—will. We are the to take full advantage of the agree- countries. When we make deals like strongest economy in the world and ment’s benefits. Those investments are CAFTA, we accept and encourage a can and should be able to compete and not realistically forthcoming, and this global economy where workers’ rights, prosper in a global marketplace. But administration has not shown a serious living wages, and humane treatment we will not if we continue to sign up commitment to supporting this type of are an anachronism. When we make for trade agreements that allow other development in those nations to make deals like CAFTA, we tell U.S. busi- countries to undercut us by producing up the difference. This is a lost oppor- nesses that the tough environmental goods using underpaid, abused labor tunity. At the same time, CAFTA will standards they live by—and pay for— and unacceptable environmental prac- displace poor subsistence farmers who are not necessary for their overseas tices. I urge my colleagues to reject will abandon their land and follow in competitors. Why does the continuing CAFTA—and reject the misguided, the footsteps of those who have come flow of jobs moving overseas surprise eventually disastrous trade policy it illegally to the United States in search us given this message—a message sent represents. of employment. And CAFTA will con- by our top trade officials and nego- Mr. DOMENICI. Mr. President, I am a tribute to ongoing environmental prob- tiators? long-time supporter of free trade agree- lems associated with manufacturing In a region where labor laws fall far ments because I believe free trade and the pesticides used in large-scale short of minimum international stand- agreements can be beneficial to every- agriculture. ards and where workers are routinely one. Free trade agreements have a I urge the President to send his trade intimidated, fired, and threatened for positive impact on the job market and negotiating team back down to Central trying to exercise their most basic the economy.

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00025 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7722 CONGRESSIONAL RECORD — SENATE June 30, 2005 I have spent many hours listening to 47,000 Nebraska jobs are supported by my colleagues to vote for this trade this body debate the Dominican Repub- exports of farm products. CAFTA agreement. lic-Central American-United States means more of these jobs across the Mrs. BOXER. Mr. President, I am op- Free Trade Agreement (DR–CAFTA). United States. posed to and will vote against the Cen- Upon careful consideration of the Passing CAFTA will further open tral America Free Trade Agreement, issues at stake in this important eco- new markets for beef, corn, soybeans CAFTA. nomic measure, I have come to the and other products by lowering and I am not against trade agreements, conclusion that the ratification of DR– eliminating tariffs on U.S. goods in provided they are fair. But when those CAFTA will result in the growth of our CAFTA countries. Currently, U.S. agreements unfairly disadvantage national economy. Additionally, DR– goods exported to CAFTA countries American workers and businesses, I op- CAFTA’s passage will represent an face significant tariffs. Despite these pose them. enormous step towards increased pros- tariffs, the U.S. exports more than $15 I could vote for CAFTA if it meant perity in Central America. billion to CAFTA countries every year. more jobs in America and a stronger The reasons to support DR–CAFTA Nebraska exported over $19.5 million American economy. But, I do not be- are numerous. The measure is favor- worth of goods to CAFTA countries in lieve that is the case. Because of able to our Nation’s export market. 2004, according to the Department of CAFTA, Americans will lose jobs and DR–CAFTA countries currently make Commerce. With these tariffs elimi- manufacturing will move overseas. up the twelfth largest market for U.S. nated, this region provides significant CAFTA will not foster free trade; it exports, with those countries pur- potential for States like Nebraska will result in unfair competition. Most chasing more than $15.1 billion in U.S. which depend on our ability to export of the Central American governments exports in 2003. I believe we should do our products. The Office of the United are notoriously lax in enforcing their what we can to foster additional States Trade Representative views labor laws. Under CAFTA, the Central growth in that market. Passage of DR– Central America as a larger market for American countries pledge to enforce CAFTA will do just that. In addition, U.S. products than India, Indonesia, their labor laws and strive to ensure DR–CAFTA is favorable to our coun- and Russia combined. workers’ rights are protected, but try’s textile suppliers. Passage of this All previous trade agreements have these are merely ‘‘paper pledges.’’ bill will put our suppliers on a level benefitted the United States economy. Moreover, unlike other trade agree- playing field with their counterparts in Since the North American Free Trade ments, the mechanisms for forcing the Asia. Agreement was signed in 1993, trade Central American governments to en- I believe that the argument that DR– among NAFTA nations rose 150 per- force their own labor laws are limited CAFTA will represent an exodus of jobs cent. Nebraska’s combined exports to and the penalties for noncompliance and dollars to Central America is un- Canada and Mexico have increased by are negligible. Worse still, nothing in founded. Under the status quo, 80 per- more than 160 percent. In the first year CAFTA prohibits a country from fur- cent of all imports from Central Amer- of the U.S.-Chile Free Trade Agree- ther relaxing its existing laws. ica and 99 percent of agricultural im- ment, U.S. exports to Chile grew 33.5 In addition, most Central American ports from Central America enter the percent. countries do not have strong environ- United States duty free. In contrast, There are those who have argued mental protection laws, and enforce- many American farmers suffer from that there is a danger to the U.S. sugar ment of the laws that do exist is lim- the burden of tariffs ranging from ap- industry if CAFTA is passed into law. ited. Companies are permitted to de- proximately 7 percent in the case of They are worried about sugar from the stroy the environment and harm their Nicaragua to 23 percent for certain Dominican Republic and Central Amer- workers in order to produce cheaper products from the Dominican Republic. ica crowding out domestically pro- products for export. Creating a more equitable duty system duced U.S. sugar. These fears, while U.S. manufacturers and workers are for agricultural imports and exports is understandable, don’t hold up against the best in the world. Their produc- important to my home State of New the facts. Under the current U.S. Farm tivity and innovation cannot be Mexico, which is heavily involved in Bill, Congress set an import ceiling of matched. But even they cannot—nor the agricultural industry. about 1.4 million metric tons of sugar. should they have to—compete with for- This agreement is also important to The domestic sugar program is unaf- eign companies that have weak labor New Mexico because an estimated $234 fected when imports are below this protections and that ignore the envi- million worth of products, many of limit. Currently, the U.S. is not close ronment in order to cut prices. them semi-conductors and electronics, to exceeding that ceiling. According to After careful consideration, I have were exported from New Mexico to DR– the U.S. Trade Representative, in the come to the conclusion that CAFTA CAFTA countries in 2004. This ranked first year of the agreement, increased will result in American workers losing New Mexico thirteenth among U.S. access to the U.S. sugar market will be their jobs, U.S. companies closing their States exporting goods to CAFTA equal to little more than one day’s doors, a downward pressure on wages, countries. Clearly, my home State will sugar production in the United States. and a worsening trade deficit. benefit from a free trade agreement CAFTA has stronger protections for For these reasons, I cannot support with these Central American countries. workers than any other Free Trade CAFTA and will vote against it. DR–CAFTA is important to our coun- Agreement. It has a three-part strat- Mr. KYL. Mr. President, I want to ex- try. It is a pro-export, pro-worker, pro- egy that will ensure effective enforce- press my support for the Central Amer- agriculture, pro-economy trade agree- ment of domestic labor laws, establish ica Free Trade Agreement, which is not ment, and I appreciate the efforts of a cooperative program to improve en- just important for job creation and the administration and our trade nego- forcement of domestic labor laws, and business opportunities in Arizona, but tiators in crafting such an agreement. enhance the ability of Central Amer- for the economic and political futures I am proud to vote in favor of DR– ican governments to monitor and en- of five Central American countries and CAFTA. force labor rights. the Dominican Republic, all of which Mr. HAGEL. Mr. President, I rise Trade is an opportunity, not a guar- are eagerly awaiting the passage of today in strong support of the Central antee. CAFTA is supported by over 50 this trade agreement. CAFTA will en- American Free Trade Agreement. agricultural industry and farm groups, hance both economic and political ties CAFTA will be one of the most impor- including the Nebraska Farm Bureau between Central America and the tant pieces of legislation considered by and the Nebraska Corn Growers. United States. It will also help pro- the Congress this year. Passage of Ultimately, the argument for CAFTA mote freedom and democracy in our CAFTA means increased markets for is not about numbers on a page or sta- own Hemisphere. our agricultural products and manufac- tistics, it is about American families The United States exports $15 billion tured goods to the nations of Central and communities that need the oppor- annually to the CAFTA–DR countries— America—Costa Rica, El Salvador, tunities provided by these markets to El Salvador, Honduras, Costa Rica, Guatemala, Honduras, Nicaragua—and grow and remain competitive. CAFTA Nicaragua, Guatemala, and the Domin- the Dominican Republic. Already, is good for the United States. I urge ican Republic. This is more than our

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00026 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 30, 2005 CONGRESSIONAL RECORD — SENATE S7723 exports to Russia, India, and Indonesia unemployment rates, and more afford- Commonly heard arguments against DR– combined. In my home State of Ari- able basic commodities. This will raise CAFTA include concern that U.S. sugar pro- zona, our top agricultural exports to the standards of living in El Salvador, ducers will be adversely affected, that Amer- the region are beef, vegetables, and as well as the other countries in this ican textile jobs will be lost, and that Cen- tral American workers’ rights and the envi- cotton. We also exported more than region. The President of El Salvador ronment will be harmed. $208.9 million in manufactured goods to has said that CAFTA matters most to The Bush Administration counters that CAFTA countries. The American Farm his country because it will strengthen passage of this agreement is a win-win for all Bureau estimates that CAFTA will in- the foundations of democracy by pro- parties and that it will preserve the U.S. crease farm exports from Arizona to moting economic growth, providing a sugar program, level the playing field for CAFTA countries by $8 million per solution to the persistent problem of U.S. workers, strengthen freedom and de- year for beef, $1 million per year for poverty, and creating equality of op- mocracy in the region, enable U.S. textile vegetables, and $800 thousand per year portunity. And by addressing the un- suppliers to compete with Asia, and enhance for cotton, part of a total future an- the enforcement of labor and environmental derlying problems of poverty and un- laws in the region. nual increase of $12.14 million in agri- equal economic opportunities, CAFTA Among the significant consequences of cultural exports over the anticipated will help stem the tide of thousands of failing to pass the DR–CAFTA would be: (1) pre-CAFTA growth level. The total na- Central Americans who leave their a message that the U.S. is not committed to tional increase in agricultural products homes seeking a better life in neigh- open market principles; (2) the continuation to CAFTA countries is estimated at boring countries to the north. CAFTA of high tariff barriers on U.S. exports to the over $1.5 billion, and manufacturing ex- will help Central Americans to earn region; and (3) the loss of an important ex- port market for numerous U.S. suppliers of ports nationwide will increase dramati- better livings and successfully support cally as well, which is great for Ari- cotton, yarns, and fabrics. their families in their home countries. This paper addresses concerns expressed zona where 25 percent of the manufac- Economic growth fosters stability about the agreement and highlight the broad turing jobs depend on exports. CAFTA and peace throughout this region. To support DR–CAFTA is receiving from many will also reduce the U.S. trade deficit strengthen democracy in the region, its different sectors of the U.S. economy. by $756 million. people need to see concrete benefits INTRODUCTION While the U.S. economy has been from economic freedom—tangible im- Congress will soon consider whether to growing steadily over the past 2 years, provements in their daily life. When a pass the United States-Dominican Republic- creating record numbers of new jobs, middle class develops and people have a Central America Free Trade Agreement (DR– we can expect even more growth with larger economic stake in their society, CAFTA). This important agreement builds the passage of CAFTA. That, in turn, they demand more of a say in how that on other recent trade agreements by sub- will foster the growth of Central Amer- society is run. This is critical for a re- stantially expanding market access for U.S. exporters of manufactured goods, agriculture ican economies. Take, for example, the gion’s democratic success. textile industry in the Central-America products, and services. In fact, DR–CAFTA We can be instrumental in the re- will level the playing field with our southern region. The CAFTA countries are the gion’s democratic, as well as economic, neighbors by providing reciprocal access for largest consumers of U.S. apparel and success by passing CAFTA now. If we U.S. businesses to the markets of Central yarn exports, and the second largest fail to pass CAFTA, America will be America and the Dominican Republic, which consumers of U.S. fabric exports. 11,000 turning its back on the hopes and already enjoy liberal access to the U.S. mar- Arizonan jobs are supported by the tex- dreams of our southern neighbors. ket. tile industry, and approximately 700,000 I ask unanimous consent to have On February 20, 2004, President Bush noti- Americans are employed in the yarn printed in the RECORD a copy of the Re- fied Congress of his intent to enter into a and textile sectors. The yarn and fabric publican Policy Committee’s recent free trade agreement with the Central Amer- ican nations of Costa Rica, El Salvador, Hon- we create and export to Central Amer- policy paper, ‘‘The U.S.-Dominican Re- duras, Guatemala, and Nicaragua. [Text of a ica and the Dominican Republic sup- public-Central American Free Trade letter from the President to the Speaker of port another 500,000 jobs in the apparel Agreement is a Win-Win.’’ This paper the House of Representatives and the Presi- sector in those countries. By working goes into further detail as to why the dent of the Senate, February 20, 2004.] On together, the United States and CAFTA agreement is in America’s in- May 28, U.S. Trade Representative Robert CAFTA countries can more efficiently terest. Zoellick fulfilled the President’s pledge and compete with large textile markets There being no objection, the mate- signed the U.S.-Central America Free Trade such as those in the Asia region. With rial was ordered to be printed, as fol- Agreement. The Dominican Republic became a party to CAFTA on August 5, 2004. the expiration in 2004 of global multi- lows: The United States has much to gain from fiber quotas in effect since the 1970s on UNITED STATES-DOMINICAN REPUBLIC-CEN- this agreement because the Central Amer- textiles and apparel, regional producers TRAL AMERICA FREE TRADE AGREEMENT IS ican markets are significant to the American face a new competitive challenge from A WIN-WIN economy. The DR–CAFTA countries con- Asian imports. CAFTA would provide EXECUTIVE SUMMARY stitute our 12th largest export market with a regional garment-makers—and their Congress should soon pass the United consumer base of nearly 44 million. [U.S. U.S. or regional suppliers of fabric and States-Dominican Republic-Central America International Trade Commission (ITC), ‘‘U.S.-Central America-Dominican Republic yarn—a critical advantage in com- Free Trade Agreement (DR–CAFTA). This important agreement expands market access Free Trade Agreement: Potential Economy- peting with Asia. wide and Selected Sectoral Effects,’’ August Many Arizona farmers and business- for U.S. exporters of manufactured goods, ag- riculture products, and services. 2004.] Nearly 80 percent of Central American men are excited about the economic On February 20, 2004, President Bush noti- products already enter the United States growth CAFTA will bring them. There fied Congress of his intent to enter into a duty-free due to unilateral preference pro- is also just as much excitement in Cen- free trade agreement with the Central Amer- grams such as the Caribbean Basin Initiative tral American countries. I have been to ican nations of Costa Rica, El Salvador, Hon- and the Generalized System of Preferences. El Salvador and I can tell you that peo- duras, Guatemala, and Nicaragua. The Do- CAFTA will eliminate these one-way bar- ple there are looking to the United minican Republic became a party to CAFTA riers and provide reciprocal free trade. The Agreement will also provide a chance to States to pass CAFTA to give them on August 5, 2004. The Central American markets are signifi- unite with customers in the region to better better opportunities and a higher cant to the American economy: the DR– compete against China, especially in apparel standard of living. They have hope that CAFTA countries constitute our 12th largest and textiles. their country’s economy will see dra- export market with a consumer base of near- The DR–CAFTA agreement will also serve matic growth, increasing jobs and the ly 44 million. to nurture democracy, transparency, and re- wages that those jobs pay. Without Passage of DR–CAFTA is vital to the eco- spect for the rule of law, in a region which CAFTA, they fear that jobs once per- nomic and security interests of both the only decades ago was marked by internal formed by El Salvadorian workers will United States and the DR–CAFTA countries, strife. Today the Central American nations and it will demonstrate the U.S. commit- and the Dominican Republic are democracies be moved to Asia. ment to foster economic prosperity in the re- wanting to strengthen economic ties which CAFTA gives El Salvadorians hope gion. It will serve to nurture democracy, will in turn reinforce their progress in polit- for a better economic future, which transparency, and respect for the rule of law ical and social reform. Passage of DR– means a more stable and peaceful fu- in a region that, only decades ago, was CAFTA is, thus, vital to the economic and ture, through rising wages, decreasing marked by internal strife. security interests of both the United States

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00027 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7724 CONGRESSIONAL RECORD — SENATE June 30, 2005 and the DR–CAFTA countries, and it will ability to export goods and services to the tral America and the Dominican Republic,’’ demonstrate the U.S. commitment to foster region. The Heritage Foundation, February 8, 2005.] economic prosperity in the region. Upon full implementation of DR–CAFTA, An open and transparent legal framework Despite the great appeal of this agreement U.S. products will enter the Dominican Re- will encourage investment and economic to many sectors of the American economy, public and Central America duty-free. In growth in a region of the world that needs there are some groups that remain opposed fact, 80 percent of consumer and industrial foreign capital to grow its economy and cre- to it. Commonly heard arguments against goods exports are immediately duty-free ate jobs. upon enactment of the agreement, with the DR–CAFTA include concern that U.S. sugar POLITICAL BENEFITS—PROMOTING REGIONAL remaining 20 percent becoming duty-free producers will be adversely affected, that STABILITY American textile jobs will be lost, and that over 10 years. Key U.S. export sectors will In the 1970s, every Central American coun- Central American workers’ rights and the benefit including medical and scientific try except Costa Rica and Belize were ruled environment will be harmed. [Representative equipment, information technology prod- by military dictators. Lack of democracy Hilda Solis (D–CA), Congressional Record, ucts, construction equipment, and paper and lack of economic opportunity led to March 1, 2005; Representative Sherrod Brown products. communist insurgencies in many parts of the (D–OH), Congressional Record, March 2, The agreement will expand markets as well region that were only defeated with the sup- 2005.] The Bush Administration counters for U.S. agriculture. Currently, U.S. tariff port of the United States. [Ed Greser, Pro- that passage of this agreement is a win-win barriers to agricultural exports from DR– gressive Policy Institute Policy Report, for the United States, the Dominican Repub- CAFTA countries are much lower than tar- ‘‘DR–CAFTA: The United States and Central lic, and Central America that will preserve iffs faced by U.S. agricultural exports to DR– America 10 Years After the Wars,’’ October the U.S. sugar program, level the playing CAFTA countries. [USTR, ‘‘DR–CAFTA 2003.] Today, democracy flourishes in the re- field for U.S. workers, strengthen freedom Facts: CAFTA Levels the Playing Field,’’ gion. People can freely choose their elected and democracy in the region, enable U.S. February 2005.] According to the USTR, leaders. Through free-market economic re- textile suppliers to compete with Asia, and more than half of current U.S. farm exports forms and U.S. trade preference programs, enhance the enforcement of labor and envi- to Central America will become duty-free workers’ wages are now on the rise and the ronmental laws in the region. [Office of the immediately, including cotton, wheat, soy- standard of living throughout the region has U.S. Trade Representative (USTR), ‘‘DR– beans, fruits and vegetables, high-quality generally improved. Many observers agree CAFTA Facts: The Case for DR–CAFTA,’’ cuts of beef, processed food products, and that DR–CAFTA will help lock recent polit- February 2005.] wine. Tariffs on remaining farm items will This paper will examine the benefits of be phased out over 15 years. [USTR, ‘‘Trade ical and economic gains into place by bol- DR–CAFTA for the United States, the Do- Facts: Free Trade with Central America, stering transparency and the rule of law, minican Republic, and Central America. This Highlights of the U.S.-Central America Free thereby attracting additional investment paper will also address concerns expressed Trade Agreement,’’ January 27, 2004.] On which will help to foster continued growth about the agreement and highlight the broad May 28, 2004, the American Farm Bureau and stability in the region. [See, e.g., The support DR–CAFTA is receiving from many Federation (AFBF), a national organization Los Angeles Times, editorial, November 18, different sectors of the U.S. economy. And, it representing U.S. farmers and ranchers 2004; USTR, ‘‘DR–CAFTA Facts: Emphati- will review the consequences to the United across the country, stated that the ‘‘U.S.- cally Yes,’’ February 2005; Stuart E. States, the Dominican Republic, and Central Central American Free Trade Agreement Eizenstat and David Marchick, ‘‘Trade America if Congress should fail to pass the will provide a substantial competitive ad- Wins,’’ Wall Street Journal, March 8, 2005.] Twenty years ago, trade between Central trade agreement. vantage to U.S. agriculture,’’ and that the America and the United States was minimal. Why DR–CAFTA is a Win-Win for the United Bush administration has ‘‘opened up prom- ising trade potential for the whole of U.S. In 1984, trade between the U.S. and CAFTA States, the Dominican Republic, and Cen- countries totaled $798 million compared to tral America agriculture.’’ [Statement by Bob Stallman, President of the American Farm Bureau Fed- $3.6 billion in 2003—an increase of nearly 350 ECONOMIC BENEFITS—LEVELING THE PLAYING eration regarding the signing of the U.S.- percent. [Statistical data provided by FIELD FOR AMERICAN EXPORTERS Central American Free Trade Agreement, USTR.] During the past few years, signifi- The DR–CAFTA market provides a large May 28, 2004.] It estimates that U.S. agricul- cant progress has been made in Central export market for the United States. As an tural producers will increase their exports by American economic integration, including a integrated market, Central America, and the $900 million as a result of the DR–CAFTA May 2000 free trade agreement between Mex- Dominican Republic purchased more than agreement. ico and El Salvador, Guatemala, and Hon- $15.1 billion in U.S. exports in 2003. [USTR, In the area of services, the DR–CAFTA duras. In December 2001, an agreement was ‘‘Trade Facts: Free Trade with Central countries will accord substantial market ac- signed to interconnect the electricity net- America, Summary of the U.S.-Central cess across their entire services regime, of- works of the Central American countries, al- America Free Trade Agreement,’’ December fering new access in sectors such as tele- lowing for regional power trading among the 17, 2003.] By tearing down tariff barriers, communications, computer services, tour- member states beginning in 2006. [U.S. De- American workers will be able to gain better ism, financial services, insurance, and enter- partment of Energy, Energy Information Ad- access to the 44 million consumers living in tainment among others. The agreement also ministration, ‘‘Regional Indicators: Central the Dominican Republic and Central Amer- provides state-of-the-art protections and America,’’ September 2004.] The integration ica. Moreover, population in this region is non-discriminatory treatment for digital of electricity grids is only one of several ini- expected to grow by almost 20 percent by products such as U.S. software, music, text, tiatives by the Inter-American Development 2015, thus adding nearly 10 million new con- and videos. Protections for U.S. patents and Bank’s Puebla-Panama Plan, which seeks to sumers to the marketplace. [Population Di- trademarks are strengthened. promote regional development and integra- vision of the Department of Economic and The benefits of DR–CAFTA will be numer- tion of Central American countries. [U.S. De- Social Affairs of the United Nations Secre- ous. In its analysis of DR–CAFTA implemen- partment of Energy, 2004.] tariat, World Population Prospects: The 2004 tation, the U.S. International Trade Com- Public opinion throughout Central Amer- Revision and World Urbanization Prospects: mission (ITC) found the effect of trade facili- ica finds that people want to have a strong The 2003 Revision.] tation would likely ‘‘benefit U.S. producers, trading relationship with the United States While the DR–CAFTA countries buy many exports, service providers, and investors.’’ and want to see DR–CAFTA enacted. Accord- goods and services from the United States, it [ITC, 2004.] The USITC noted that, ‘‘after ing to recent State Department polling, the is economically important to the U.S. econ- tariff liberalization has been fully imple- opinion pattern throughout the region shows omy to level the playing field on trade be- mented and all economic adjustments have that, in most of the CAFTA countries, half tween the United States, the Dominican Re- occurred under the FTA, overall U.S. welfare of those polled are aware of the trade agree- public, and Central America. Due to trade is likely to increase in the range of $135.31 ment (up from about a third in 2002–2003). preference programs currently in place, 80 million to $248.17 million.’’ [ITC, 2004.] U.S. Among those, a majority perceive benefits percent of all Central American goods cur- exports to DR–CAFTA countries are likely for their country (e.g., 57 percent in D.R.; 56 rently enter the United States duty-free, to increase by $2.7 billion (or 15 percent), and percent in Costa Rica; and 56 percent in while the average tariff imposed on U.S. ex- U.S. imports are likely to increase by $2.8 Nicaragua). [Memo from U.S. State Depart- ports to Central America is between 7 and 9 billion (or by 12 percent). [ITC, 2004.] ment to Senate Finance Committee on ‘‘Cen- percent. [Chris Padilla, ‘‘DR–CAFTA: A Vote DR–CAFTA also provides an atmosphere tral American Attitudes Toward CAFTA,’’ for Freedom, Democracy, Reform,’’ Textile and, more importantly, a legal framework March 16, 2005.] Anticipated benefits include News, February 28, 2005.] Some tariffs on for guaranteeing the security of American job creation, lower prices, and a wider vari- many farm goods are as high as 16 percent. investment in Central America. As noted by ety of goods available to consumers. [USTR, ‘‘DR–CAFTA Facts: CAFTA Levels some policy analysts: ‘‘By locking in these Passage of DR–CAFTA by the U.S. Con- the Playing Field,’’ February 2005.] These liberal economic policies, [DR–CAFTA] of- gress will help reinforce the positive image high tariffs hurt our ability to export to and fers investors certainty that policies will not many Central Americans have of the United compete in the growing markets of the Do- suddenly reverse—a key component in in- States, and will show that America does not minican Republic and Central America. In vestment decisions.’’ [Brett D. Schaefer and view Central America only as a trading part- addition, U.S. exporters face numerous non- Stephen Johnson, ‘‘Backgrounder #1822: Con- ner. It will show that the United States be- tariff barriers that currently inhibit their gress Should Support Free Trade with Cen- lieves it has a stake in the development of

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00028 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 30, 2005 CONGRESSIONAL RECORD — SENATE S7725 its neighbors. During his confirmation hear- The potential impact of these increases in Furthermore, in the unlikely event that ing before the Senate Foreign Relations the in-quota TRQs for DR–CAFTA countries U.S. domestic sugar policies were threatened Committee on February 15, then Deputy Sec- appears minimal. USTR has found that ap- by imports from the DR–CAFTA countries, retary of State nominee Robert Zoellick proval of DR–CAFTA ‘‘would not have a de- the agreement includes a mechanism that stated that ‘‘economic power is a very im- stabilizing effect on the U.S. sugar pro- will permit the United States to restrict portant component of America’s power’’ and gram.’’ [USTR, ‘‘DR–CAFTA Policy Brief, sugar imports from these countries and pro- that ‘‘economic freedom is linked to polit- Sugar: A Spoonful a Week,’’ February 2005.] vide them with equivalent benefits to com- ical freedom,’’ and so ‘‘how we integrate And the ITC, using its models, found that pensate for lost market access. [USTR, ‘‘DR– those can build on some of America’s values there would likely be a decrease in the U.S. CAFTA Policy Brief, Sugar: A Spoonful a and its interests.’’ [Remarks by Robert B. price of sugar ‘‘of about one percent as a re- Week,’’ February 2005.] This compensation Zoellick during a hearing of the Senate For- sult of the increase in imports under the mechanism further alleviates possible pres- eign Relations Committee on his nomination FTA.’’ [ITC, 2004.] Clearly this suggests a sures that might threaten U.S. sugar poli- to be Deputy Secretary of State, February negligible impact on U.S. producers. Fur- cies. thermore, one could argue that such declines 15, 2005.] TEXTILE The United States has long fought for de- in consumer prices could boost demand and mocracy and economic freedom for the peo- actually increase U.S. producers’ revenue. Some textile producers argue that passage ple of Central America. DR–CAFTA would Moreover, additional TRQ access for the of DR–CAFTA will lead to textile job losses reinforce democratic and free-market proc- DR–CAFTA countries is conditioned on each in the United States. [American Manufac- esses through such provisions as trans- country’s trade-surplus position. [ITC, 2004.] turing Trade Action Council, ‘‘CAFTA Bad parency and anti-corruption measures. It Specifically, only net-surplus-exporting for U.S. Textile Industry and Workers,’’ May will also strengthen new democracies and countries in the region will obtain increased 28, 2004.] Additionally some of the same crit- leaders who are working to grow their econo- access to the U.S. market. This is because ics have argued that the U.S. textile sector mies, reduce poverty, fight crime, and deep- the agreement limits access to the lesser of is currently restructuring in response to Chi- en the roots of democracy. the amount of each country’s net trade sur- na’s growth in this economic sector and, plus in sugar or the specified amounts pro- Criticisms of DR–CAFTA therefore, American companies cannot allow vided in each country’s TRQ. [ USTR, ‘‘DR– additional jobs to be lost to Central Amer- SUGAR CAFTA Policy Brief, Sugar: A Spoonful a ican textile factories. [New York Times, Some charge the DR–CAFTA will greatly Week,’’ February 2005.] For example, at the ‘‘Chinese Textile Flood?’’ March 10, 2005.] harm U.S. sugar producers due to increased present time the Dominican Republic—cur- Both arguments fail to grasp the long-term imports of sugar. In fact, U.S. imports of rently the largest TRQ holder among the benefits of regional integration to the U.S. sugar from the DR–CAFTA countries are DR–CAFTA countries—would not qualify for textile and apparel industry of promoting re- today limited by tariff rate quotas (TRQs) increased market access to ship additional gional integration under the agreement. currently imposed by the United States on sugar to the United States under the agree- DR–CAFTA will benefit the U.S. textile each DR–CAFTA country, [ITC, 2004.] and ment. [Inside U.S. Trade, ‘‘USTR Threatens and apparel industry by expanding the bene- this system (albeit with slightly increased Dominican Republic Over Proposed HFCS fits currently provided by the Caribbean import amounts) will remain in place with Soft Drink Tax,’’ September 3, 2004.] As Basin Trade Partnership Act (CBTPA) and DR–CAFTA. noted by the American Farm Bureau Federa- making the benefits reciprocal. The CBTPA Under the TRQs, sugar from the DR– tion (Farm Bureau), this situation makes (which includes all DR–CAFTA countries) al- CAFTA countries enters duty-free if it is the issue of increased sugar imports from the lows apparel exports from the region to enter within quota. [ITC, 2004.] Sugar imported Dominican Republic moot for now. [Amer- the United States duty-free and quota-free, over-quota is assessed high tariffs, which are ican Farm Bureau Federation, ‘‘Implications provided that they use U.S. yarn and fabric. in effect prohibitive tariffs [ITC, 2004.] (of of a Central American Free Trade Agreement This supports U.S. exports and jobs. Indeed, over 100 percent). [USTR, ‘‘DR–CAFTA Pol- on U.S. Agriculture.’’] According to Farm in the past four years, the region has become icy Brief, Sugar: A Spoonful a Week,’’ Feb- Bureau calculations, even if the Dominican one of the largest and fastest-growing export ruary 2005.] Because of the high over-quota Republic were to become a net exporter of tariffs, imports of sugar from the DR– markets for U.S. cotton growers, yarn spin- sugar by 2024—the year in which the agree- ners, and fabric mills. Regional producers CAFTA countries essentially correspond to ment would be fully operational—its exports their TRQ levels. [ITC, 2004.] It is important face new competition from Asian imports of sugar would increase by only $11.7 million since global quotas on textiles and apparel to note that TRQs on sugar imports from the from the Dominican Republic’s current allo- DR–CAFTA countries will be increased only ended January 2005. This agreement will give cation of $96.3 million. the region a critical advantage in competing slightly as a percentage of consumption Still, some critics of the DR–CAFTA assert with Asia in a post textile-quota world by under the trade agreement, [ITC, 2004.] and a second argument—that increased sugar im- helping to retain textile production in the prohibitive tariffs on over-quota imports will ports under the agreement would have a de- remain intact under the DR–CAFTA. [ITC, stabilizing impact on U.S. domestic sugar region, rather than moving production to 2004.] policies by suspension of sugar marketing al- China. [John T. Hyatt, ‘‘Good for Central In 2003, the DR–CAFTA countries exported lotments. [ITC, 2004.] Under marketing allot- America, Good for U.S.,’’ Times-Picayune, to the United States 325,146 metric tons of ments, the U.S. Department of Agriculture March 15, 2005.] sugar—most of which was raw cane sugar—at restricts the amount of sugar that can be When facilities move from Central Amer- a value of $141.3 million. [ITC, 2004.] These sold by domestic producers, [ITC, 2004.] a pol- ica to China, they are much less likely to imports constituted approximately 3 percent icy designed to ensure stable sugar prices buy U.S. yarns and fabrics. Thus, the com- of sugar consumed in the United States dur- and supplies in the U.S. market. [American petitiveness of the U.S. fiber and yarn indus- ing that year. [ ITC, 2004.] Additional in- Sugar Alliance, U.S. Sugar Policy Under the try is inextricably linked to maintaining the creased access during the first year of the Farm Bill, retrieved on 03/15/05.] Under the competitiveness of the DR–CAFTA region. trade agreement will total 109,000 metric policy, if U.S. imports of sugar were to ex- [Cass Ballenger, ‘‘Producing for N.C.’s Tex- tons. [ITC, 2004.] That increase is equivalent ceed a specified amount (approximately 1.5 tiles,’’ The News and Observer, March 1, to little more than one day’s production of million tons in a given year) marketing al- 2005.] Currently, 71 percent of DR–CAFTA- sugar in the United States, [USTR, ‘‘DR– lotments could be suspended, thus enabling made apparel enters the United States using CAFTA Policy Brief, Sugar: A Spoonful a U.S. producers to compete with imported U.S. yarns and fabrics, while one tenth of 1 Week,’’ February 2005.] or about 1.2 percent sugar under prevailing market conditions. percent of apparel from China enters the of current annual U.S. sugar consumption. [ITC, 2004.] United States using U.S. yarn or fabric. [Sta- [USTR, ‘‘DR–CAFTA Policy Brief, Sugar: A A cushion exists, however, between the tistical data provided by the Office of Tex- Spoonful a Week,’’ February 2005.] ‘‘trigger level’’ of imports that would sus- tiles and Apparel in the International Trade By the end of the 15-year phase-in period, pend marketing allotments and projected Administration at the U.S. Department of sugar imports from this agreement will have imports under the DR–CAFTA. [ITC, 2004; Commerce.] More than $2.6 billion of U.S. increased by a total of 153,140 metric tons. USTR, ‘‘DR–CAFTA Policy Brief, Sugar: A fabric and yarn exports went to the six DR– [ITC, 2004.] The additional access during the Spoonful a Week,’’ February 2005.] The U.S. CAFTA nations in 2004. [Jeffrey Sparshott, entire 15-year phase-in period represents less International Trade Commission estimates ‘‘A Tough Sell,’’ Washington Times, March than 2 percent of the approximately 7.8 mil- that it would take about 60 years following 10, 2005.] By keeping apparel assembly in the lion metric tons of sugar produced in the the agreement’s implementation for this region through DR–CAFTA, we will retain United States in the 2003/2004 growing sea- cushion to be exceeded, taking into account and grow the market for U.S. exports of fab- son. [USTR, ‘‘DR–CAFTA Policy Brief, growth in imports during the phase-in period rics. Sugar: A Spoonful a Week,’’ February 2005.] and subsequent annual imports of 2,640 met- The agreement also contains tough custom Again, what the trade agreement permits is ric tons under the agreement. [ITC, 2004.] In enforcement procedures to ensure that only an increase in import competition of less 60 years, it is unknown whether marketing products eligible for DR–CAFTA tariff treat- than 2 percent relative to domestic produc- allotments would even be a part of U.S. ment benefit from the agreement. Further, tion—stretched out over a 15-year period. sugar policy. In any case, the ITC believes it the agreement contains a special textile Following the phase-in period, the TRQs will unlikely that increased imports resulting safeguard, which authorizes the imposition grow by an additional 2,640 metric tons each from the agreement will trigger the suspen- of tariffs on textiles when injury occurs due year. [ITC, 2004.] sion of marketing allotments. [ITC, 2004.] to import surges.

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00029 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7726 CONGRESSIONAL RECORD — SENATE June 30, 2005 Many of those who oppose the agreement Second, each country must make the nec- tions, and companies, including Pepsi, Boe- are weavers, who point to a tariff preference essary economic and legal reforms to im- ing, American International Group, level (TPL) for Nicaragua that extends duty- prove ILO adherence. Third, each country Warnaco, the American Farm Bureau Fed- free treatment for 10 years for cotton and must undertake capacity building to enforce eration, Caterpillar, Exxon Mobil, Grocery manmade-fiber apparel made in Nicaragua its domestic labor laws. To accomplish this, Manufacturers of America, JC Penney, from fabrics made anywhere else (otherwise the United States is offering capacity-build- Microsoft, Mars Incorporated, National known as ‘‘non-originating fabric’’). In other ing assistance to improve labor law enforce- Cattlemen’s Beef Association, National Pork words, the fabrics do not have to come from ment. As a first step, Congress appropriated Producers Council, Procter and Gamble, either the United States or other DR–CAFTA $20 million in the FY05 Foreign Operations Time Warner, and the U.S. Chamber of Com- countries for the apparel to be eligible under appropriations bill specifically to help build merce. the TPL. The TPL was included only for this the capacity of Central America and the Do- President Clinton’s former senior Treasury one country because Nicaragua is by far the minican Republic on labor and environ- and trade official, Stuart Eizenstat, has smallest and least-developed apparel supplier mental law enforcement. [Rep. Jim Kolbe (R- strongly argued that DR–CAFTA is a must- among the DR–CAFTA countries. However, AZ) authored a provision in the FY05 For- pass agreement. Writing in the Wall Street TPLs have been in every trade agreement ne- eign Operations Appropriations bill that pro- Journal earlier this month, Eizenstat stated, gotiated before the DR–CAFTA (excluding vided $20 million to assist CAFTA countries ‘‘The agreement is deeply in our national in- Israel and Jordan). Indeed, DR–CAFTA does with labor standards enforcement.] terest and will create, not destroy, jobs.’’ not include TPLs for the major Central Ironically, while the AFL–CIO opposes DR– [Stuart E. Eizenstat, ‘‘Trade Wins,’’ Wall American apparel producers—the first time CAFTA because the agreement doesn’t overt- Street Journal, March 8, 2005.] He went on to that a trade agreement did not provide TPLs ly include ILO standards, the conditions in remark that ‘‘the agreement would solidify to our negotiating partners. The TPL grant- the agreement pertaining to the enforcement the United States as the leading supplier of ed to Nicaragua would cover only about 3 of standards for workers’ rights will serve as goods and services to Central American and percent of the total amount of garments a catalyst for these countries to take labor the Dominican Republic at a time when shipped by all CAFTA countries. laws seriously. Moreover, the labor provi- China is making serious inroads as an inves- Costa Rica is the beneficiary of a small sions in DR–CAFTA are the same as those tor and exporter in the Western Hemi- concession for wool fabric, allowing Costa contained in the U.S.-Morocco Free Trade sphere.’’ [Eizenstat.] Rica to source non-originating fabric up to Agreement that Congress passed overwhelm- Consequences Should DR–CAFTA Fail capped amount. This concession will be ingly last July (by a vote of 323–99 in the The economic and social consequences of phased out over two years, and was put in House and by a vote of 85–13 in the Senate). failing to pass the DR–CAFTA would be sig- place to allow a wool apparel producer to co- ENVIRONMENT nificant. Economically, U.S. exporters would ordinate with suppliers in the United States The DR–CAFTA environmental provisions continue to face high tariff barriers on their who are planning to be a source for the fab- promote policies that ensure protection of exports to the region. Furthermore, U.S. ric in the future (the concession is subject to current laws while striving to improve those service providers would continue to face nu- review after 18 months). [For more details on laws, with effective remedies for violating merous non-tariff barriers to their service the textile provisions of DR–CAFTA, see the the agreement. This type of environmental exports. February 2005 USTR policy brief, ‘‘Textiles protection goes beyond the requirements Thousands of apparel production jobs in Central America and the Dominican Repub- of CAFTA—Details of the Agreement.’’] called for in the Trade Promotion Act (2002) lic would be lost as investors move produc- The agreement also contains tough custom and recently implemented FTAs with Chile tion facilities to China. As a result, numer- enforcement procedures to ensure that only and Singapore. The agreement has taken ous U.S. suppliers of cotton, yarns, fabrics products eligible for DR–CAFTA tariff treat- groundbreaking steps to mitigate environ- and other components would lose an impor- ment benefit from the agreement. Further, mental degradation by involving all stake- tant export market—America’s third larg- the agreement contains a special textile holders through meaningful public participa- est—for their products as Chinese facilities safeguard, which authorizes the imposition tion and capacity building for the region. will likely source their needed components of tariffs on textiles when injury occurs due There is wide appeal for the environment from Asia instead of the United States. to import surges. Many in the U.S. textile provisions because of these new initiatives industry (retailers, yarn spinners, knitters, [USTR, CAFTA Policy Brief, ‘‘Textiles of and it is demonstrated by the support it has CAFTA—Details of the Agreement,’’ Feb- and apparel producers) support passage of received from local environmental conserva- DR–CAFTA, such as Burlington Industries, ruary 2005.] Further economic consequences tion NGOs from five of the six DR–CAFTA could also include increased immigration the American Apparel and Footwear Associa- countries. [Letter to Ambassador Zoellick tion, Levi Strauss and Company, ERICO, from the Dominican Republic and Central from 10 NGO’s dated January 31, 2005.] America as displaced workers seek oppor- International Textile Group, Union Apparel, Failure to pass the agreement will only Sara Lee, and Warnaco. tunity abroad. serve to undermine these important initia- Politically, failure to pass DR–CAFTA LABOR tives to strengthen environmental protec- would be seen by our Central American part- Organized American labor groups oppose tion in the region. ners as American disengagement from a stra- this free trade agreement, alleging that it BROAD AMERICAN SUPPORT FOR DR–CAFTA tegically important region of the world. It does not include adequate provisions for Since last year, scores of organizations, as- would send a signal to our other trading workers’ rights. [Statement by AFL-CIO sociations, and businesses have made known partners that our nation is not committed to President John Sweeney on Central Amer- their support for passage of DR–CAFTA. Per- the principles of open markets and, thus, dis- ican Free Trade Agreement, May 28, 2004.] It haps one of the most compelling, detailed, courage them from making market access should be noted that the AFL-CIO, a leading and broadly supported endorsements was and other economic commitments that are labor union opposed to DR–CAFTA, has issued on January 26, 2005 by the Business vitally important to our nation as we nego- never supported a free trade agreement, in- Coalition for U.S.-Central America Free tiate in the Middle East, Asia, Europe, or cluding the U.S.-Australia Free Trade Agree- Trade. In a letter to Senate Majority Leader other areas in the Western Hemisphere. Fur- ment. Further, Costa Rica, Guatemala, Hon- Bill Frist, the Business Coalition listed five thermore, failure to pass DR–CAFTA would duras, Nicaragua, and the Dominican Repub- reasons why the ‘‘timely implementation’’ of have a chilling effect on the Doha Develop- lic have ratified all eight International DR–CAFTA was important, citing commer- ment Agenda of trade negotiations at the Labor Organization (ILO) core labor conven- cial importance (‘‘over the last five years, World Trade Organization, potentially jeop- tions, and El Salvador has ratified six of the the [DR–CAFTA] countries have been our ardizing our most significant opportunities eight. In contrast, the United States has fifth largest growth market worldwide’’); to gain broad access for our agriculture, ratified only two ILO core conventions. reciprocity in U.S.-Central American trade manufacturing, and services exports. An analysis by the ILO demonstrates that relations and creation of new opportunities CONCLUSION the labor laws and constitutions of the DR– for all sectors of the U.S. economy; strength- DR–CAFTA is the latest in a series of suc- CAFTA countries are comparable to ILO ening of democracy and rule of law ‘‘in a re- cessfully negotiated, far-reaching, economi- core labor standards. [USTR, ‘‘CAFTA Facts: gion that was wracked by civil war not that cally-beneficial trade agreements under- The Facts About DR–CAFTA’s Labor Provi- long ago;’’ critical importance of maintain- taken by the Bush Administration. DR– sions,’’ February 2005.] The problem has ing and fostering ‘‘key partnerships in the CAFTA is the first trade agreement since the been, however, that the governments have textile and apparel sector;’’ and the signal U.S.-Chile Free Trade Agreement was passed lacked the capacity to enforce their labor that would be sent to ‘‘all of the United in 2003 that includes economies in America’s laws due to financial constraints. To address States’’ trading partners that the United geographic backyard. Most importantly, DR– this, the United States is taking a three- States remains committed to trade and in- CAFTA is a great economic package for both pronged approach in DR–CAFTA: First, each vestment liberalization at an important the nations of Central America and the country must enforce its own labor laws. If juncture in WTO negotiations.’’ [A letter to United States. The agreement will provide they do not, then a fine will be imposed and Senator Bill Frist (R-TN), dated January 26, new economic opportunities for American in- the monies from the fine will be used to ad- 2005 by the Business Coalition for U.S.-Cen- vestors and secure American and Central dress the enforcement deficiency. [USTR, tral America Trade.] American jobs. ‘‘CAFTA Facts: The Facts About DR– The letter was signed by the representa- DR–CAFTA is as much a political state- CAFTA’s Labor Provisions,’’ February 2005.] tives of more than 100 organizations, associa- ment as it is an economic one. As Senator

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00030 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 30, 2005 CONGRESSIONAL RECORD — SENATE S7727 Charles Grassley (R-IA) has noted: [DR– dumped on the market at prices well I understand that Secretary Johanns CAFTA] shows our strong desire to reach out below the cost of production. has sent the proposal in writing to and form deeper and lasting bonds with the U.S. producers already face an over- Congress to affirm his commitment to international community, particularly in supply situation with significant quan- the agreement. I will be working with Latin America. The agreement will help to lock in economic reform and increase trans- tities in storage at the expense of pro- Chairman CHAMBLISS on a Sense of the parency in the region. DR–CAFTA can serve ducers. Prices have slowly declined, yet Senate to solidify this proposal and as a cornerstone of economic growth and de- production costs have sky-rocketed. strengthen the promise made to the in- mocracy for the region which will enhance Although the U.S. is the 4th largest dustry. the standard of living for millions of our importer of sugar in the world, CAFTA The only fault of this proposal is that southern neighbors. [Senator Charles Grass- seeks to significantly compound an al- it does not provide the long-term solu- ley (R-IA), Congressional Record, July 22, ready ugly situation and set a prece- tion that the industry desperately 2004.] dent of ‘‘no return’’ for further nego- needs. I also have major concerns that Congress should pass DR–CAFTA. It is in our national economic, political, and secu- tiations already underway with major the proposal compromises the law by rity interests to do so. sugar-exporting countries like Thai- changing our sugar program from that Mr. CRAIG. Mr. President, I rise land and Panama. of operating at ‘‘no-cost’’ to the tax- today to discuss the Central America CAFTA nations already enjoy duty- payer to one that could cost hundreds Free Trade Agreement, its importance free quota access for sugar with the of millions of dollars. This is just not to our country, to our economic inter- U.S., and I am not prepared to trade sustainable and a major departure from ests both here and at home, and around away an industry so vital to my State our promise to the industry. the world. and to the overall farm economy in I know I share the same strong con- Since Congress gave the President Idaho. cerns with Chairman CHAMBLISS that fast-track trade negotiating authority Other Idaho agricultural groups un- free trade agreements should remain in August of 2002, we’ve had to face the derstand that those farmers who are faithful to current U.S. policy and not realities that come with it. sugar producers are also potato, bean, restrict options available to Congress I supported giving the President fast- and grain producers. We’re not just in future farm bills. track authority then, with the caveat talking about impacting one com- For these reasons, I will be voting that I would approach all trade agree- modity, we are cutting a wide swath against CAFTA. However, I do applaud ments sent to Congress with an open across several industries and sending the administration for their diligence mind. an economic ripple through our rural and willingness to work with me on Three agreements have reached Con- communities that may not be recover- this issue. I hope that as we near the gress since 2002 and I have voted for able. next Farm Bill in 2007, we will continue two of those three. Our U.S. negotiators are willing to to work on a sustainable answer that The administration has been actively open our markets to increased sugar maintains a very important industry in pursuing a vigorous bilateral and free- imports, while our competitors main- my State but also the agricultural trade agenda around the world, and I tain unfair economic advantages in do- economy in the U.S. believe it is in our best interest to do mestic subsidies and minimal market Mr. LEVIN. Mr. President, our trade so both economically and socially. access commitments. policy is failing. This failure is re- Trade with foreign nations is a valu- Myself along with my colleagues flected in a trade deficit that grew by able component to promote economic from sugar-producing States took our 25 percent last year to more than $617 opportunities here at home, but also to concerns with CAFTA to the adminis- billion, and in the loss of 2.8 million spread our democratic ideals that we tration. With the help of my good manufacturing jobs over the past 4 value so highly in our country. friend and Chairman of the Agriculture years. We are in this predicament in Congress is now debating the Central Committee, Senator CHAMBLISS, we part because we have pursued one-way American Free Trade Agreement, oth- spent some late nights and several con- trade agreements that are not in the erwise known as CAFTA. I became ference calls to come up with a solu- best interest of the United States and heavily involved with our trade nego- tion that would allow could address the because we have not insisted that our tiators as the President and our then- concerns of the sugar industry. trading partners grant us true reci- Trade Representative Bob Zoellick Our new U.S. Trade Representative procity. began negotiations with the CAFTA Rob Portman and U.S. Department of It is difficult to see how pursuing yet nations. Agriculture Secretary Mike Johanns another trade agreement in the same As an agricultural State, Idaho has a joined us in trying to iron out the dif- failed mold will produce a different re- large stake in these agreements and ferences and find some mutually agree- sult. The Central America Free Trade agriculture right now is currently able options. I am very impressed with Agreement will not benefit American learning how to restructure itself as these two men’s willingness to roll up workers and farmers because it fails to our global markets become highly inte- their sleeves and work with me and insist on basic internationally recog- grated. others on what has been a very dif- nized labor standards, the agreement As many know, a major agricultural ficult issue. will not meet its promise to improve crop in my State is the production of Although these discussions should the standard of living for the people of sugar. Idaho is the second-largest pro- have occurred much earlier, the admin- Central America and the Dominican ducer of sugarbeets behind Minnesota. istration came a very long way in a Republic; Instead, it will set off an- Idaho’s sugar industry employs some- short amount of time to reach a resolu- other race to the bottom. where in the neighborhood of 7 to 8,000 tion. The administration is asking the people and generates nearly $800 mil- A proposal was offered to maintain Senate to rubberstamp implementing lion in economic activity for the State the sugar program as passed in the 2002 legislation for CAFTA under fast-track economy. Farm Bill and to provide the industry procedures that only allow Members of The sugar industry in Idaho, and in with relief from surges of imported, Congress an up-or-down vote and no most other sugar-producing States, has cheap foreign sugar by studying and chance to amend or improve it. Al- restructured itself after several years beginning to establish a sugar-to-eth- though I support increased trade with of unprofitability. Farmers pooled anol program in the U.S. Central America and believe that fair their money to create cooperative I think this proposal represents a trade policies would benefit all parties, processing plants to market their strong effort of compromise in a com- I do not support the agreement as sugar and so inherently have a large plex and difficult environment. I would crafted. Without the chance to improve personal investment in all levels of like to praise Secretary Johanns and it, I must oppose it. production. Ambassador Portman for their willing- The administration is not doing the It’s well known that the world sugar ness to make this quantum leap to ac- work necessary to get our trade policy market is one of the most distorted ag- commodate our concerns. I think the on track. The five Central American ricultural markets in the world, and proposal brings some good ideas to the countries and the Dominican Republic most world sugar supplies are simply table that we can build upon. account for less than 1.5 percent of

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00031 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7728 CONGRESSIONAL RECORD — SENATE June 30, 2005 total U.S. trade, and our own Inter- prohibition on discrimination in em- others against workers who try to exercise national Trade Commission found that ployment; and a prohibition on forced internationally recognized labor rights is the U.S. trade deficit with CAFTA labor. I am not seeking that CAFTA common and usually goes unsanctioned. countries would likely increase slight- countries commit to American stand- The U.S. State Department’s 2002 ly as a result of CAFTA. Yet the ad- ards but at least to the five basic inter- Human Rights report on El Salvador ministration has made CAFTA its No. 1 national standards developed by the said: trade priority. A better focus for our ILO and supported by virtually every There were repeated complaints by work- trade policy would be opening markets country in the world. ers, in some cases supported by the ILO Com- in Nations and sectors where the most Indeed, the CAFTA-DR countries are mittee on Freedom of Association (CFA), egregious trade barriers block the sale signatories of the International Labor teat the Government impeded workers from of U.S. goods and services. We should Organization conventions. Requiring exercising their right of association. In June break down barriers faced by U.S. man- them to abide by their own inter- 2001, the CFA reiterated its 1999 finding that national obligations is the least we can the existing labor code restricts freedom of ufacturers, farmers and services in key association. export markets including China, do when considering whether they de- That same report also said of El Sal- Japan, the EU, Korea, and elsewhere. serve to receive trade preferences from This administration has also failed to us. But CAFTA only requires member vador: deal with our trade deficit with China, countries to enforce their own labor The constitution prohibits the employ- which is on track to surpass $200 bil- and environmental laws, however inad- ment of children under the age of 14; how- ever, child labor is a problem. lion this year. The administration has equate they may be. failed to take action against China for Unlike the Jordan FTA, the CAFTA CAFTA would give away the current undervaluing its currency by between labor provisions are not enforceable. leverage we have against these viola- 15–50 percent relative to the dollar to The U.S.-Jordan FTA treats the labor tions of basic workers rights. Under promote exports to the United States and environmental commitments the CAFTA, the U.S. can only take action and to keep out goods made in the same as the commercial commitments, against a country if it deliberately United States. This is a violation of enforceable under the agreement’s dis- fails to enforce its labor and environ- the WTO prohibition on gaining a trade pute settlement procedures. Under mental laws in an effort to gain a trade advantage from currency manipula- CAFTA, however, the labor provisions advantage. Even then, the country are not subject to the same binding dis- tion. The administration has also must only pay a fine to itself, which pute settlement mechanisms as are the failed to deal with our large and per- will be used to fund labor enforcement commercial provisions, and violations sistent automotive deficit with Japan. in that country. This is a step back- Likewise, our recent record on trade cannot lead to the same level of fines wards from the status quo. agreements has not been strong; some or sanctions. There is a much lower CAFTA countries currently have pre- of the trade agreements the U.S. has standard for labor and environmental ferred access to our markets through entered into have not been in the best commitments, and that makes this a the Caribbean Basin Initiative, CBI, interest of the United States. The flawed agreement. Under CAFTA, the and the Generalized System of Pref- only labor rights and environment pro- clearest example is NAFTA, which erences, GSP. Under these trade pref- vision that is enforceable through dis- made it easier for U.S. companies to erence programs, beneficiary countries pute settlement mechanisms is if a outsource production to low-wage must meet internationally recognized party fails to enforce its own labor or countries. Between NAFTA’s enact- labor standards or risk losing their environment laws effectively. ment in 1994 and the end of 2003, the preferential trade treatment. These This is of significant concern because current trade preferences can be com- Department of Labor certified that CAFTA nations’ own labor laws do not more than 525,000 American workers pletely withdrawn for failure to meet meet international standards. In fact, ILO core labor standards. The possi- suffered job losses as a result of in- these countries have histories of seri- creased imports or plant relocations to bility of losing trade benefits works as ous worker rights abuses. The 2004 U.S. a strong incentive for CAFTA coun- Mexico and Canada. Under NAFTA, our State Department Country Reports on tries to make improvements in their trade balance with Mexico went from a Human Rights Practices; the October worker rights laws. CAFTA eliminates surplus of $1.663 billion in 1993 to a def- 2003 ILO Fundamental Principles and that incentive because it gives CAFTA icit of $45 billion in 2004. While it is Rights at Work’’ A Labor law Study, countries permanent trade benefits re- true that our exports to Mexico in- and other ILO reports confirm at least gardless of how they treat their work- creased under NAFTA, our imports 20 areas in which the labor laws in the ers and no matter how far their labor from Mexico also increased, and at a CAFTA countries fail to comply with laws fall short of international norms. faster rate. the right of association, ILO Conven- If we give away that leverage, The American people and Members of tion 87, and the right to organize and CAFTA countries would have no incen- Congress are understandably frustrated bargain collectively, ILO Convention tive to improve their inadequate labor by the failure of NAFTA, and they are 98. equally skeptical about the need to To give just a few examples, in El laws or the treatment of their workers. enter into another trade agreement Salvador and Nicaragua it is legal to If a country wants to have preferential pitting low wage workers from coun- fire workers simply because they are access to the U.S. market through a tries with weak labor and environ- union members; Human Rights Watch trade agreement or preferential trade mental laws against U.S. workers. found that the use of child labor in El benefit program, it ought to agree to Trade should not be a race to the bot- Salvador’s sugar cane fields is wide- abide by the ILO labor standards. With- tom in which U.S. workers must com- spread; and under Honduran law, it is out such a commitment, we might be pete with countries that do not recog- legal to fire workers who say they in- giving special access to our markets to nize core international labor standards tend to organize a union. One company products made with child labor or and basic worker rights, but that is ex- in the Dominican Republic fired 140 forced labor, or to employers that in- actly what CAFTA would do. workers at once because they sought a timidate or use violence against work- I am disappointed by the weak labor collective bargaining agreement. The ers attempting to organize or join and environmental provisions included company was fined $660, or about $5 per labor unions. That is not something we in CAFTA. Writing labor and environ- worker. as a Nation would want to do. mental standards into trade agree- Our own Department of Labor and Countries getting benefits from the ments is an important way to ensure State Department reports show that U.S. should comply with internation- that free trade is fair trade. But unlike CAFTA countries fail to provide their ally recognized labor standards as a the 2001 Jordan Free Trade Agreement, workers internationally recognized condition for receiving those benefits. CAFTA fails to include internationally rights. The U.S. State Department’s That is a reasonable expectation and recognized, core labor standards. Those 2002 Human Rights report on Guate- one that is reflective of basic American standards include the right to organize/ mala said: values. Trade should not be a race to associate; the right to bargain collec- Retaliation, including firing, intimidation, the bottom. And American workers tively; a prohibition on child labor; a and sometimes violence, by employers and should not be asked to compete with

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00032 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 30, 2005 CONGRESSIONAL RECORD — SENATE S7729 countries that do not recognize core ratification of this agreement will in- White House to budget for and support international labor standards and basic crease the sales of American dairy $40 million in labor and environment worker rights. products to Central America by $100 capacity building assistance for the Rejecting the CAFTA implementing million over the next several years— next 4 years. Additionally the adminis- legislation as currently drafted is a re- not a huge amount, but a significant tration has agreed to increase funding jection of the failed and flawed trade one, given the economics of our dairy to the International Labor Organiza- policies of the past and a signal of sup- industry. As an important dairy State tion, ILO, by $3 million annually for on port for a better approach to trade that offering a number of high-quality the ground monitoring of each coun- supports both the rights of American cheeses and specialty products, try’s labor rights commitments and ac- workers and the rights of our trading Vermont stands to gain from this tual labor practices. This could poten- partners. agreement. The agreement will create tially produce the first significant step Mr. JEFFORDS. Mr. President, opportunities for other Vermont ex- forward in broad enforcement of labor throughout my 30 years in the Con- porters as well, particularly small, standards throughout the region. gress, I have considered myself a free- niche businesses for which Vermont is In response to our concerns, the ad- trader. I believe that breaking down famous. As with dairy sales, I don’t ex- ministration has also agreed to pro- barriers to trade and opening access to pect these opportunities will be volu- vide, through the Inter-American De- markets in a fair and balanced way in minous, but every bit helps in a global velopment Bank, $30 million annually the long run benefits all economies, economy. to El Salvador, Guatemala and the Do- both consumers and producers. As the I have heard very diverse viewpoints minican Republic, $10 million to each distance between economies shrinks, from the Central American countries country, for rural development and in- integration of economies in a positive as well. The region’s historic inability stitution building for a period of 5 way is increasingly important. The im- to spread economic gains to all sectors years. This commitment of $150 million plementation of free-trade agreements of society is of deep concern to many in for rural development assistance to the to codify the rules of fair play and bind the region, and I share this concern. region is very significant. We have all parties to strong and enforceable For two decades, I have been involved asked that these funds be targeted most directly to the poorer sectors of labor and environmental protection in the struggle to end human rights these economies, particularly those standards are important steps in the violations and labor rights abuses in most likely to suffer adverse effects development of a more broadly bene- many of these countries. While CAFTA from CAFTA. The administration had ficial and less biased world trading sys- extracts important promises from Cen- previously announced agreements to tem. tral American Governments to abide In the case of our nearest neighbors, by international standards of human provide Honduras and Nicaragua with trade agreements take on a security rights and labor rights, my experience U.S. foreign assistance through the component as well. I believe a strong leaves me very skeptical of these com- Millennium Challenge Corporation, MCC, at $215 million and $175 million, trade agreement can help break the cy- mitments. Furthermore, the economic respectively. In the course of recent cles of poverty, deprivation and deprivation of much of the region frus- discussions, the administration has marginalization currently operating in trates all but the most committed ef- agreed to give higher priority to the many of the Central American coun- forts at reform. Current trends are development of MCC compacts with El tries. We know the economic status leading to greater disparity between Salvador, Guatemala, and the Domini- quo is unjust and dangerous. Many peo- the rich and the poor, urban areas can Republic as well. ple in the region feel they have little versus rural areas, and economically While I still have concerns about hope of earning a good living or pro- connected versus economically CAFTA’s effect upon Central America, viding a good education for their chil- marginalized populations. These trends I believe the commitments we have re- dren. That must change. It is in the must be reversed—not just for the ceived from the Bush administration United States’ economic and security health of the region, but also for our on foreign aid, labor rights and the en- interest that positive change occurs. own economic health and national se- vironment represent a significant step Throughout the Dominican Repub- curity. forward in the ability of the region to lic—Central America—U.S. Free Trade The key question is whether CAFTA reverse current trends and improve re- Agreement, CAFTA, negotiation proc- will exacerbate these trends, or wheth- gional standards of living. I am hopeful ess, I joined a number of my colleagues er it can help reverse them. Many in these steps will lead to the improve- on the Finance Committee in urging the region fear the United States will ment of the region’s vital institutions President Bush and the U.S. Trade move in to benefit from markets in the and help ensure that the benefits of the Representative to address concerns region while frustrating Central Amer- agreement will trickle down to all about the labor and environment ican efforts to access U.S. markets. I members of society. The proof will be standards and enforcement mecha- have also heard from Central Ameri- in the implementation, which I plan to nisms in this agreement. I indicated cans who believe the reduction of tar- follow very closely. However, I am my deep concern that historically, in iffs and the standardization of com- heartened that we now have more to most of these countries, economic ben- merce will greatly enhance their abil- work with, and we are assured of great- efits are not shared by all strata of so- ity to sell to the U.S. market, thereby er support from the administration for ciety. When negotiating trade agree- benefiting communities, often mar- this process. Based on the strength of ments between economies of such un- ginal ones, in Central America. these assurances, I will support the equal scale, these concerns are of par- After hearing diverse points of view, CAFTA agreement. ticular importance. I am disappointed I concluded that without significant Mr. HATCH. Over the years, I have the administration did not do more to support from the United States to as- been a strong advocate for free trade. advance these causes in this agree- sist in the enforcement of labor agree- Free trade is important. I know of no ment. Some progress was made, but ments and development of greater ca- other endeavor that affords us the op- more could have been accomplished if pacity for balanced economic growth, I portunity to forge closer links between our recommendations had been adopted could not support CAFTA. Over the nations while simultaneously improv- in full. past few weeks, I have joined several of ing the lives of millions. I have heard from a great many my colleagues in pushing the adminis- The vast majority of economists points of view as this agreement has tration to commit to greater support agree that free trade is in every na- firmed up and the implementing legis- for foreign assistance to the region, tion’s long-term best interests. Dip- lation came before Congress. I have aimed specifically at the most vulner- lomats also know that it is far easier heard from many Vermonters who are able sectors of Central American soci- to reach a compromise between nations opposed to increased trade in general ety and the need for a strong inter- whose economies are mutually reliant. and this agreement in particular. On national presence to monitor labor That being said, there are certain as- the other hand, Vermont dairy farmers rights compliance. While we requested pects of free trade that cause me con- have come to me in support of CAFTA. greater levels of aid, our negotiations cern. We need to be ever vigilant to en- Dairy industry experts predict that the produced a commitment from the sure our approach to free trade does

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00033 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7730 CONGRESSIONAL RECORD — SENATE June 30, 2005 not relinquish our sovereign rights as a through arbitration, nor can arbitral kets. As part of our long-standing ef- nation. tribunals.’’ This statement, in black fort to support democracies in the re- Over the last few years, I have heard and white, will ensure that Internet gion, the United States has afforded from many Utahns who are concerned gambling is not—and will not—become unilateral preferences to Central that the U.S. is relinquishing sov- legal in the State of Utah without the American goods under the Caribbean ereignty to other countries through consent of its citizens. There can be no Basin Initiative and the Generalized our trade agreements. Let me make ‘‘end-run’’ around the USTR’s interpre- System of Preferences. CAFTA elimi- clear that we absolutely cannot give up tation of the Internet gambling deci- nates these preferences while simulta- our right to govern within our own bor- sion. neously strengthening our commercial ders. We have laws for a reason and Although our CAFTA trade nego- ties by making the trading relationship they represent the ideals and values we tiators have done much to protect our permanent. All of this will be accom- hold dear in our society. sovereignty, it is obvious that we must plished while American products will Constituents contact me on a con- remain vigilant and ensure that the have greater opportunities for export stant basis to underscore their frustra- sovereignty of not only our Nation, but in the region. tion with the gradual loss of sov- also our States, is maintained. I will One example of the positive at- ereignty the U.S. is experiencing in work to maintain this sovereign right tributes of CAFTA can be found in the international arenas. Local lawmakers of the people. agreements effect on the hard-pressed from across the country are reaching Mr. President, I have become con- textile and yarn producing industries. out to us and asking for our help in en- vinced that many of these problems Our nation, through the use of modern suring their local laws and authority and concerns with U.S. trade agree- equipment and greatly improved effi- remain intact as we enter into inter- ments could be alleviated if we im- ciency, continues to be competitive in national trade agreements. Indeed, re- proved the amount and quality of con- this area. Where we have lost ground is cently, the Utah State Legislature sultation occurring between States and in the labor-intensive apparel construc- passed a resolution which echoes these the Federal Government with respect tion industry. concerns. to trade agreements. Simply put, we CAFTA provides an opportunity to help rectify this setback. Under cur- The issue of maintaining sovereignty need to provide greater opportunities rent agreements, 56 percent of all tex- was highlighted by a recent World for substantive consultation to occur. Trade Organization, WTO, dispute reso- This problem was the topic of a re- tile products that are imported from CAFTA nations to the United States lution body ruling on Internet gam- cent letter signed by 28 States attor- contain U.S. yarns or fabrics. When bling. The ruling stated that the neys general, including Utah, request- CAFTA is enacted, we can only expect United States cannot block other coun- ing greater consultation between the these numbers to increase. This stands tries from offering Internet gambling U.S. Trade Representative and the in marked contrast to apparel im- to U.S. residents, even if they live in States on issues affecting States ported from Pacific Rim, and in par- States such as Utah where gambling is rights. ticular China, where less than 1 per- illegal. I believe we need to take action on cent of all of apparel imports contain This is outrageous. this immediately and ensure that we U.S. yarns and fabrics. Therefore, I be- We absolutely cannot enter into provide greater access to and consulta- lieve, that in the case of CAFTA, the agreements where our laws are over- tion with our States and citizens. We turned by outsiders. It is important for pros do outweigh the cons. clearly are seeing how big of an impact But, I will end on this note of cau- my colleagues to be aware, however, these trade agreements are having in tion. I will watch implementation of that the Office of the U.S. Trade Rep- every State and city in America. this agreement carefully. We need to resentative has interpreted the lan- We need to give the States a direct have recognition of the fact that guage in the WTO decision stating that conduit for their input. States are partners in these agree- gaming laws are ‘‘necessary to protect Negotiators need to have this infor- ments. There must be greater opportu- public morals or to maintain public mation in order to ensure we are rep- nities afforded to the States to be con- order’’ to mean that ‘‘WTO members resenting the interests and beliefs of sulted on free-trade agreements. are entitled to maintain restrictions on our constituents. Likewise, we must remain vigilant internet gaming . . . and U.S. restric- Mr. President, these concerns have that our Nation’s and respective tions on internet gambling can stand.’’ weighed heavily upon my mind. At the States’ sovereignty is maintained. I am aware that many in Utah are same time, I am encouraged by the On balance, Mr. President, any rea- concerned that CAFTA could usurp our many positive results CAFTA will have soned analysis indicates that CAFTA State’s right to regulate gambling. for our State, our country, and for will benefit our Nation and our State. That is a concern I shared as well. Utah’s farmers and industries. Accord- It is for this reason that I will cast my However, many of us were reassured by ing to the Department of Commerce, vote in support of the Dominican Re- the statements made by the Office of between 2000 and 2004, Utah’s exports to public-Central American Free Trade the U.S. Trade Representative that CAFTA nations increased by 58 per- Agreement. CAFTA does not jeopardize any exist- cent. This includes such product areas Mrs. CLINTON. Mr. President, today ing State laws, including Utah’s as plastics, electronics, and instrumen- the Senate votes on the Central Amer- antigambling laws. tation. ican-Dominican Republic Free Trade We will have to stay on top of this, In plastic products, Utah industries Agreement. During my tenure as Sen- though. I do not intend to let any sold $18.6 million in goods in 2004. In ator, I have voted for every trade international agreement affect the electronic and instrumentation prod- agreement that has come before the laws our great State has enacted that ucts, Utah businesses sold $5.6 million Senate and I believe that properly ne- represent the predominant moral views worth of goods in 2004. The elimination gotiated trade agreements can increase of our citizens. of tariffs will make these products living standards and foster openness Other concerns with CAFTA regard- even more competitive in this devel- and economic development for all par- ing ‘‘investor-state provisions that will oping market. ties. When DR–CAFTA negotiations allow corporations to challenge public We have reason for our optimism. began, I was eager to support an agree- interest policies at the state and local While our experience with the Chilean ment. It was my sincere hope that level’’ have also been raised. Once Free Trade Agreement provides no President Bush would send an agree- again, however, the Office of the guarantees, it is illustrative. In the ment to Congress that would help ad- United States Trade Representative first year of the U.S.-Chile Free Trade dress the DR–CAFTA nations’ develop- has clearly stated that ‘‘nothing in Agreement, Utah’s exports to Chile ment challenges and spread the gains CAFTA, or any other free trade agree- grew by 152 percent. from trade more broadly. Unfortu- ment or bilateral investment treaty, I am also pleased that CAFTA will nately, the Bush administration has interferes with a state or local govern- level the playing field so that Amer- not submitted such an agreement, in- ment’s right to regulate. An investor ican goods and products can have bet- stead missing a tremendous oppor- cannot enjoin regulatory action ter access to Central American mar- tunity to conclude an agreement that

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00034 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 30, 2005 CONGRESSIONAL RECORD — SENATE S7731 strengthens the bonds between the turbed by these provisions’ departure tute the bipartisan consensus in sup- United States and the DR–CAFTA na- from the labor rights standards nego- port of international trade. Rather tions. While this agreement provides tiated in the U.S.-Jordan Free Trade than consult widely and develop a con- some benefit for New York, I regret- Agreement. In the end, I supported sensus, the administration has decided fully conclude the harm outweighs the these agreements despite these con- to go for a narrow victory with dis- good. I must therefore vote to oppose. cerns because I believed the agree- turbing implications for the possibility My vote to oppose DR–CAFTA is one ments would not harm the average of bipartisan trade agreements in the taken with great difficulty. I have working person in those nations and, future. In a time when Americans are heard strong arguments both for and thus, the flawed labor provisions did facing increasing economic anxiety, against from many New Yorkers who not outweigh the benefits offered by trade is often viewed with suspicion. have a stake in the agreement and I the agreements. I noted, however, that An administration which fails to con- have weighed them seriously. Seg- I would not continue to support agree- sult and pushes for trade agreements ments of the New York economy would ments with these provisions where the which are unable to get bipartisan sup- benefit from this agreement, but at the impact was greater on workers. In the port undermines public support for end of the day, I cannot support an DR–CAFTA agreement, the flawed international trade as a tool for eco- agreement that fails to include ade- labor provisions represent a real nomic development and greater pros- quate labor standards and is a step missed opportunity to spread the bene- perity. Even if the administration is backward in the development of bipar- fits of trade not just to the wealthy successful in gaining passage of DR– tisan support for international trade. elites, but to the broader workforce as CAFTA, I fear that this victory will be At the outset, it is important to un- well. hollow as the anxiety over inter- derstand that consideration of DR– There are other problems with the national trade continues to grow. In CAFTA is not occurring in isolation. DR–CAFTA agreement. The final the end, the administration’s strategy This agreement must be read within agreement excludes provisions for as- to ignore consultation and consensus the larger context of the failed eco- sisting U.S. workers harmed by trade. in its trade policy may do more harm nomic and trade policies of this admin- The environmental provisions of for the cause of international trade istration. Under this administration, CAFTA undermine environmental pro- than the purported benefits of this the trade deficit has soared. The tection, by including a lack of parity agreement. offshoring of U.S. jobs has continued to between the enforcement of commer- While it is inevitable that some will increase, and the U.S. economy has ex- cial and environmental provisions. benefit more than others from open perienced a net loss of U.S. jobs. The This is a clear step back from the Jor- markets, we have a responsibility to administration has no plans to address dan Free Trade Agreement. Finally, ensure that the basic rules of the game rising health care and pension costs the environmental conservation provi- are fair. In previous trade agreements, that are imposing such a tremendous sions lack a commitment to fund their this balance was achieved. And I voted burden on American businesses. This implementation. for those agreements. DR–CAFTA fails administration has also failed to en- The agreement also fails in the area this test. force existing trade rules and has not of public health. Regarding pharma- This is a sad day for supporters of been aggressive in addressing the tax ceuticals, I would note that in 2001, 142 free and fair rules-based trade. Our re- and capital subsidies of our competi- countries, including the United States, lationship with our Central American tors. adopted the Doha Declaration, an neighbors is a critical one. The right Turning to the specifics of the agree- agreement that provided that trade ob- CAFTA deal would strengthen ties be- ment itself, DR–CAFTA fails in signifi- ligations should be interpreted and im- tween the United States and these na- cant respects. The most problematic plemented in ways that protect public tions. I urge the administration to re- elements are its labor provisions which health. In August 2002, Congress passed open the CAFTA negotiations and re- retreat from advances made in the late the Trade Promotion Authority Act establish the broad, bipartisan coali- 1990s and that culminated in the labor which applied Doha to U.S. trade nego- tion for trade. provisions of the U.S.-Jordan Free tiations. Despite this commitment, the Mr. JOHNSON. Mr. President, I rise Trade Agreement. The U.S.-Jordan administration has promoted provi- today to express my opposition to the Free Trade Agreement included inter- sions within trade agreements, includ- Central American Free Trade Agree- nationally recognized enforceable labor ing DR–CAFTA, that will significantly ment, CAFTA. The United States Con- standards in the text of the agreement. impede the ability of developing coun- gress has been waiting for over a year Sadly, DR–CAFTA is a step backward. tries to obtain access to inexpensive, to consider this agreement which was The labor provisions of the DR–CAFTA life-saving medications. Contrary to signed on May 28, 2004, because of the agreement instead used an ‘‘enforce the principles of Doha, these agree- contentious nature of many of the your own laws’’ standard which is not ments place the interests of large mul- agreement’s provisions. It is those pro- included in any other area of the agree- tinational drug companies over the visions that I rise today to address. ment. An ‘‘enforce your own laws’’ ability of developing countries to safe- Ethanol is an incredibly important standard may work in nations with a guard public health. industry in my home State of South strong tradition of labor enforcement, The DR–CAFTA agreement nego- Dakota. It is imperative for facili- but the International Labor Organiza- tiated by the President represents a tating additional market opportunities tion, ILO, has documented that the missed opportunity in many respects, for producers in the State and adding CAFTA countries’ labor laws have not both for the DR–CAFTA nations and value to agricultural commodities. complied with international norms in for the U.S. For the DR–CAFTA na- CAFTA maintains the ethanol provi- at least 20 areas. tions, it is a missed opportunity to en- sions contained in the Caribbean Basin The Jordan FTA made labor rights sure that the benefits of trade flow to Initiative, CBI, which allows CBI coun- obligations subject to the same dispute all of their citizens and not just tries to export up to 7 percent of the settlement resolution procedure as wealthy elites. This agreement will not U.S. ethanol market duty-free con- commercial obligations. Conversely, promote democracy and stability in taining no local feedstocks. Under DR–CAFTA includes a separate dispute these nations. A stronger agreement these provisions, I am concerned that settlement procedure for labor dis- would instead have bolstered the polit- Central American countries may func- agreements, which caps the damages ical and economic stability in these na- tion as conduits for South American that can be imposed for labor viola- tions, through fair apportionment of ethanol. El Salvador and Costa Rica, in tions. benefits. In some of the DR–CAFTA na- particular, are granted generous carve- The Chile, Australia and Singapore tions, the agreement has proved to be outs from the total ethanol allotments free trade agreements, which I sup- quite polarizing and a better agree- under CAFTA. El Salvador will eventu- ported, contained similar ‘‘enforce ment could have gained broader public ally be allowed .7 percent of the U.S. your own law’’ labor provisions to DR– support. market, and Costa Rica will be allowed CAFTA, but as I noted when I voted for For the United States, DR–CAFTA twice what they are currently import- these agreements, I was greatly dis- was a missed opportunity to reconsti- ing into the U.S. under CAFTA.

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00035 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7732 CONGRESSIONAL RECORD — SENATE June 30, 2005 I have worked tirelessly with my gated to uphold International Labor United States Free Trade Agreement, Senate colleagues to ensure an eight Organization, ILO, laws and the agree- or CAFTA. There is much in CAFTA billion gallon Renewable Fuels Stand- ment fails to include enforceable labor that helps Washington State. ard, RFS, in the Senate version of the standards. The agreement states that I generally support trade agreements Energy bill. As our United States eth- countries should ‘‘strive to’’ ensure such as CAFTA because I believe that anol market increases, so to, under their labor laws are comparable to free trade is the best way to raise the this agreement, does the quantity of international labor laws, but includes standard of living for all Americans the market afforded to CAFTA coun- no enforcement mechanisms. This ef- and for all people in other countries tries—or afforded to ethanol en route fectively renders the aforementioned with which we trade. I believe that to the U.S. through CAFTA countries laws meaningless. The agreement once other nations have access to our for a quick and easy reprieve from tar- speaks to the enforcement of domestic goods, culture and ideas, we will find iffs. Foreign producers of ethanol will labor laws—the enforcement of domes- that the world will adopt the best at- find the U.S. even more attractive with tic labor laws, however, that are held tributes of America, including our val- an 8 billion gallon RFS, and I am con- to no particular standard. Aside from ues. cerned for the impact that this, and fu- an ethical and moral dilemma, this The alternative to supporting ture trade agreements, will have on the agreement also functions to highlight CAFTA is unworkable. If CAFTA fails, ethanol industry. I simply cannot sup- an economic dilemma. The lack of the Nation’s efforts to negotiate future port an agreement that may undermine labor standards will arguably present a trade agreements will be badly dam- one of the most important industries in competitive advantage over U.S. com- aged. Congress has to pass CAFTA be- my home state, and set a dangerous panies that are observing labor stand- cause it offer benefits to all CAFTA precedent for future agreements of this ards and ensuring, quite simply, the signatories, and because in light of the nature. Specifically, producers have ex- humane treatment of their employees. broader trade context our negotiators pressed concerns for the pending Free Myriad reports exist that detail the would suffer a setback if CAFTA does Trade Area of the Americas, and the harsh and unforgiving conditions work- not pass. impact that CAFTA will have on this ers are subjected to in countries with Washington State has historically benefited from liberalizing trade laws. potentially detrimental agreement. lax, or nonexistent, labor standards. For example, in the first year following The sugar provisions are troubling as According to ILO estimates, 17 million the United States-Chile Free Trade well, and have been a marked point of children between the ages of 5 to 14 are Agreement, Washington State exports contention causing controversy among part of the working population in Cen- to Chile more than doubled. And since agriculture groups. I continue to hear tral American countries. These chil- NAFTA passed in 1993 Washington ex- from producers in my home State who dren all too often miss out on any type ports to Canada and Mexico have in- are concerned with the potential im- of formal schooling because they are pact of displaced sugar acres from this creased by 130 percent. responsible for earning a meager sal- CAFTA promises to confer some of agreement, as the treatment of sugar ary, just a few dollars, to contribute to the same benefits on Washingtonians. will impact numerous commodities in their family’s income. These dire eco- CAFTA makes all U.S. exports to the South Dakota. Producers are con- nomic circumstances only function to CAFTA countries duty free in 10 years, cerned that displaced sugar acres will illustrate the weakened labor stand- and most of these tariffs are elimi- lead to increased corn and soybean ards that CAFTA will, effectively, en- nated immediately. U.S. exports to acres, depressing commodity prices for dorse and sanction. International these countries are often subject to corn and soybeans. Parts of this agree- human rights organizations have re- tariffs, and CAFTA brings us closer to ment are still being negotiated, specifi- peatedly criticized labor standards in trade parity. In particular, Washington cally with respect to the sugar com- CAFTA countries, and this agreement State’s pear, cherry, apple and potato pensation mechanism to ensure we does nothing to remedy this. Addition- growers will see most tariffs on their have not imported more than 1.5 mil- ally, these circumstances underscore crops immediately reduced to zero as lion tons of sugar, and I fail to see how an inability on the part of CAFTA soon as CAFTA is implemented. These we can adopt an agreement with so countries to purchase a substantive farmers have low enough profit mar- many outstanding questions. amount of American commodities. gins without having to contend with Secretary Johanns indicated that a Additionally, the environmental high tariffs on their goods, and tariffs few possible compensation mechanisms standards in CAFTA are troubling. place our farmers at a competitive dis- existed for the sugar industry, which Countries will be deterred from insti- advantage with farmers in other coun- the sugar industry has thoroughly re- tuting meaningful environmental regu- tries that are not subject to high tar- jected. The Secretary actually pro- lations when they may be held ac- iffs. Our farmers need and deserve bet- posed purchasing sugar that would oth- countable for any inconveniences that ter conditions for selling their goods to erwise surpass the trigger limit and use foreign investors experience. Inter- the seven CAFTA countries. that sugar for nonfood items, specifi- national tribunals will enable foreign In total, Washington State exported cally ethanol production. Using foreign investors to challenge meaningful envi- $113 million worth of goods to CAFTA sugar to produce ethanol is an incred- ronmental regulations and rules that countries in 2004, including oil and coal ible, and outrageous proposal. It will were instituted to preserve the envi- exports, crops, computers and elec- only function to displace a hard-earned ronment. Foreign investors may expect tronics, processed foods, machinery market for domestic corn producers. and seek monetary compensation. manufactures and paper, and Washing- Instead of offering a reasonable solu- I voted against the North American ton’s trade relationship with CAFTA tion to the sugar industry, the admin- Free Trade Agreement, NAFTA, be- countries increased by 251 percent from istration is now persisting to sacrifice cause I was concerned for the detri- 2000 to 2004. These goods are heavily domestic commodities to placate oppo- mental impacts on our rural commu- tariffed under current international sition to this incredibly flawed agree- nities and for the preservation of rural trade laws with the CAFTA countries. ment. Alternatively, U.S. agricultural America. I continue to hear from pro- But under CAFTA, Washington’s commodities may be offered up as com- ducers in South Dakota who are con- apple and pear growers will see duties pensation for undesired sugar from cerned for the impacts of NAFTA on that are currently up to 25 percent on CAFTA countries. And both of these our economy, and I am concerned for their goods reduced to zero, and our proposed compensation mechanisms the proposed expansion of this model grape growers will see 20 percent tariffs are temporary, through the life of the under CAFTA. Producers are simply zeroed out. Tariffs on Washington’s Farm bill only. The administration is tired of seeing the unrecognized trade raspberry growers will be phased out persisting with this Band-aid approach, benefits promised under these trade over 5 to 15 years, depending on the while offering no real or meaningful so- agreements. CAFTA country, and our dairy farmers, lutions. Ms. CANTWELL. Mr. President, some of whose products are subject to CAFTA fails to address key labor today, I proudly announce my support 60 percent tariffs, will see those tariffs issues and environmental standards. for S. 1307, a bill implementing the Do- phased out over 20 years. The Wash- Under CAFTA, countries are not obli- minican Republic-Central America- ington beef industry will see 30 percent

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00036 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 30, 2005 CONGRESSIONAL RECORD — SENATE S7733 tariffs immediately eliminated on that after TAA was last modified, most tonians, especially our farmers, it is some of their products, and other beef workers are enrolling in training serv- good for America, and in the long run product tariffs will be phased out over ices sooner, from 107 days in Fiscal it will be good for the people living in 10 years. Wheat and barley duties are Year 2002 to 38 days in Fiscal Year 2003. CAFTA countries too. I will vote for zeroed out immediately, and potato TAA must be expanded. We should CAFTA and continue to work to maxi- growers will see some tariffs imme- raise the cap on TAA funds, since 35 mize what Washingtonians get out of diately eliminated and most others States in Fiscal Year 2004 did not have globalization, while also working to phased out over 15 years. sufficient funds to cover funds those minimize the negative side effects that Washington State is likely to see its States obligated and paid to TAA-eligi- sometimes result from it. Aggressively exports to CAFTA countries dramati- ble workers. After Trade Promotion balancing the impact of opening mar- cally increase over time, once CAFTA Authority passed, we doubled the TAA kets is the track we must all accept. is enacted. For example, Northwest program to help cushion difficult tran- America’s economic future hangs in Washington is likely to see its agricul- sitions of workers whose jobs are lost the balance. tural exports to CAFTA countries in- because of trade. We should plan ahead There being no objection, the mate- crease as CAFTA is gradually imple- and increase TAA again, to coincide rial was ordered to be printed in the mented up until 2024, from $2.1 million with enactment of CAFTA. RECORD, as follows: to $3.8 million, and Central Washington TAA and similar programs must also EXECUTIVE OFFICE OF THE PRESI- is likely to see agricultural products work better. We must plan ahead for DENT, THE UNITED STATES TRADE shoot up from $14.5 million to $22.4 mil- changes in our economy—these REPRESENTATIVE, lion during the same 20-year stretch. changes are inevitable, and our long- Washington, DC, June 28, 2005. These heavy increases mean more jobs term plan at training our workers to be Hon. JEFF BINGAMAN, for Washingtonians, at a time when the prepared for these changes will deter- U.S. Senate, State is just now turning things around mine whether America competes in the Washington DC. DEAR JEFF: As the Congress considers the economically. global market. Central America-Dominican Republic Free Nationally, CAFTA is also impor- The 21st century marketplace is dy- Trade Agreement (CAFTA-DR), you have tant. CAFTA countries make up the namic, and public policy must also be raised concerns about ongoing efforts to im- tenth largest export partner for Amer- flexible if we are to best take advan- prove enforcement of labor laws and to mon- ican goods, making that region a larger tage of these changes. As our economy itor progress in this regard in the CAFTA- trading partner for the U.S. than Aus- continues to shift from a predomi- DR signatory countries. As you know, Con- tralia, Brazil or India. nantly manufacturing base to a heavy gress appropriated $20 million in FY05 spe- While I support CAFTA, I acknowl- service sector economy, government cifically for projects to improve labor and edge that it could do more to protect programs such as TAA must continue environmental law enforcement in these countries. labor rights in the CAFTA countries, it to reflect these changes. The recent House Appropriations Com- could be better on the environment and Specifically, I support proposals such mittee mark-up of the FY06 Foreign Oper- it could better take account of human as the Trade Adjustment Assistance ations appropriations bill increases this rights in those nations. Therefore, Equity for Service Workers Act, which commitment for the next fiscal year, with CAFTA should not be seen in a vacu- would enhance TAA by extending the $40 million earmarked for labor and environ- um. CAFTA is merely one part of what program to service sector and sec- mental enforcement capacity-building in the must be a larger strategy for address- ondary service workers. Currently only CAFTA-DR signatory countries. The Admin- ing our workers’ needs in a rapidly manufacturing workers qualify for istration is willing to support this level of funding in the FY06 Senate appropriations evolving world economy, and for ad- these benefits. Including service sector bill. dressing the economic and political workers merely reflects the realities of Furthermore, because we are willing to problems of our neighbors to the our economy—America will lose some- make a longer-term commitment to improve South. where between 500,000 and 3 million labor and environmental law enforcement in I firmly believe that in the long run, service sector jobs to other countries the CAFTA-DR countries, the Administra- encouraging export-led growth in de- in the next 10 years. I want to empha- tion is willing to propose and support this veloping countries will help raise in- size that these are not net job losses, same level of labor/environment capacity- comes, tighten labor markets, and im- but they will result in people being dis- building assistance for the next three fiscal prove job standards in those countries. years, FY07 through FY09. placed. People with service sector jobs More specifically, you have suggested the Opening markets will drive political have families in need just as sure as assistance of the International Labor Orga- changes too. Open markets and democ- manufacturing workers do. They nization (ILO) in monitoring and verifying racy are the two prevailing political should share in the TAA program. progress in the Central American and Do- ideas of the present, and they will be- We can also close loopholes that minican governments’ efforts to improve come even more prevalent in the fu- make it difficult for some older work- labor law enforcement and working condi- ture. America has to remain the leader ers to participate in an add-on to TAA tions. in exporting these powerful ideas to that was meant specifically for them. We are willing to implement your idea. the entire world, and CAFTA is one Now that we have identified these loop- Your proposal, as I understand it, is that the ILO would make a transparent public report more step we can take to accomplish holes, it is good government to close of its findings every six months. The Admin- this. them. Our older workforce, some of istration has now consulted with the ILO and I also strongly believe that our trade whom are not the ideal candidates for determined that this function would require policy should couple trade liberaliza- longer training courses, will benefit additional funding to the ILO of approxi- tion with worker retraining and other from closing these loopholes and once mately $3 million annually. The Administra- creative, proactive and responsive this is done they will be placed in new tion is willing to devote approxiniately $3 forms of labor assistance. Globalization jobs more quickly. million of the $20 million in FY05 labor en- will happen no matter what. So we Those concerns, especially about the forcement assistance monies to support and fund this ILO monitoring initiative. To en- need to be prepared for these changes, need to make preparing our workforce sure that this monitoring continues, the Ad- and help assure that America’s work- for the global economy a higher pri- ministration is willing to continue a funding ing families do not take the brunt of ority, can be addressed by Congress and commitment to ILO monitoring for the next them. the administration in the coming three fiscal years, FY07 through FY09. That is why I am working with my months, and I will work to achieve The Administration also shares your goal colleagues to fully implement improve- these goals moving forward. I ask of ensuring that we pair expanded trade op- ments to the Trade Adjustment Assist- unanimous consent that a letter from portunities with economic development as- ance Program, TAA. TAA provides Ambassador Portman be printed in the sistance designed to ease the transition to workers with access to retraining pro- free trade, especially for rural farmers in our RECORD. CAFTA-DR partners. On June 13, 2005, the grams, income support, and other bene- Ms. CANTWELL. Mr. President, U.S. Millennium Challenge Corporation fits when they lose their jobs due to though we have much to do to make (MCC) signed a $215 million compact with trade. And TAA works—the Govern- opening markets fairer to all those af- Honduras targeted specifically at rural de- ment Accountability Office reports fected, CAFTA is good for Washing- velopment and infrastructure, and on the

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00037 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7734 CONGRESSIONAL RECORD — SENATE June 30, 2005 same day the MCC announced a $175 million ment of a new legal regime that in- tion, we cannot continue to allow the compact with Nicaragua that will be signed creases safeguards for multinational erosion of our manufacturing base. shortly. investment through changes in tariff Equally, CAFTA should continue to As Secretary Rice and I have already com- rates, rules of origin, and quota phase- meet the labor standards created in municated to you, we are willing to give high priority to negotiating compacts with outs, which would allow corporations previous trade agreements, which it El Salvador, Guatemala; and the Dominican in Central America to sell a product at must before I will consider supporting Republic when those countries become eligi- a cheaper price. In order to compete it. For these reasons I am voting no. ble for MCC assistance under higher per cap- under these conditions, many U.S. cor- Mr. CARPER. Mr. President, free ita income caps next year. I anticipate that porations would have to shut down trade—when done correctly—can be an such compacts would provide substantial their operations, export their jobs, and important tool in building consumer U.S. economic assistance for rural develop- leave skilled workers jobless. This demand for U.S. products worldwide, ment in these countries. agreement would aggravate the prob- encouraging investment and growth in In addition, the administration has worked developing markets, and forging new with the Inter-American Development Bank lem. In addition to job loss, this agree- alliances. Today, Congress is consid- (IDB) to provide new assistance, including ering an agreement to expand trade $10 million in new grants announced by the ment fails to enhance workers’ rights. IDB earlier this month for rural development Over the course of the last 5 years, with Central America and the Domini- and institution building. I hope you will join Congress has worked to establish a can Republic. me and officials from the IDB, World Bank, standard within trade agreements that Delaware is already heavily engaged and other institutions next month for an protects workers’ rights. In 2001, when in trade with Central American coun- tries, with $25 million in exports in international donors conference to discuss Congress adopted the Jordanian Trade other ways we can direct development assist- 2004. In fact, a large amount of the Agreement, labor provisions were in- ance toward meeting the needs of rural popu- fruit imported through the Port of Wil- cluded in the body of the agreement. lations. mington by Chiquita and Dole come These labor provisions were made sub- To address your specific concern about the from Central America. However, while period before MCC compacts might be nego- ject to sanctions through the dispute 75 percent of Central American prod- tiated with El Salvador, Guatemala, and the resolution process. Unfortunately, this ucts enter the United States tariff free, Dominican Republic, the administration is agreement only strives to enforce willing to support additional spending for almost all U.S. goods continue to face workers’ rights but does not offer pro- tariffs in Central America. The Domin- rural development assistance of $10 million visions for Central Americans to per year for each of those countries starting ican Republic-Central America Free in FY07 for a total of five years, or until the unionize, collectively bargain, and se- Trade Agreement, or DR–CAFTA, will signing of an MCC compact with such coun- cure the right to strike. level the playing field for U.S. workers Currently, the six CAFTA nations try, whichever comes first. This amounts to and businesses that rely on exports to are subject to the Generalized System a $150 million commitment in transitional Central America and the Dominican rural assistance for these countries over five of Preferences, GSP, and the Caribbean Republic by providing immediate, years. Basin Initiative, CBI, which condition These monies will provide transition as- duty-free access for more than 80 per- market access with respect to the cent of U.S. consumer and industrial sistance to rural farmers in these three International Labor Organization, ILO, countries for a defined period, while pre- goods. serving a very strong incentive for candidate standards. Linking market access to For Delaware, this will lift tariffs on countries to meet the statutory criteria to labor protections has been responsible the fabrics supplied by companies like receive what would likely be much higher for many significant labor reforms in Invista to sewing operations in Central levels of economic assistance under an MCC Central America in the last 20 years. America, making textiles in the Amer- compact. Since the implementation of However, if enacted, CAFTA does not icas more competitive with China. CAFTA-DR requires steps which reinforce mandate that the labor laws of the Delaware’s poultry producers will fi- the statutory criteria for funding under the Central American countries comply nally gain access to Central American MCC law, I believe that implementation of with the International Labor Organiza- the agreement will assist these three coun- markets under DR–CAFTA. When the tries to move quickly toward qualifying for a tion, ILO, core standards, which in- agreement goes into effect, some U.S. successful MCC compact with the United clude freedom of association, the right chicken products will be given imme- States. to organize and bargain collectively, diate duty-free access, and that access Furthermore, because many of the agree- and the freedom from child labor, will expand annually until duties are ment’s requirements for agriculture liberal- forced labor, and discrimination. eliminated. ization in the CAFTA-DR countries for sen- Ultimately, CAFTA would create Free-trade agreements with devel- sitive commodities—such as dairy, poultry, downward pressure on wages because it oping countries also offer an oppor- and rice—will not fully occur until ten, fif- would force our American workers to tunity to encourage reform. Certain re- teen, or even twenty years after CAFTA’s compete with Central American work- implementation date, I am confident that forms were accomplished in DR– this transitional mechanism provides ample ers who are working for lower wages. CAFTA, such as competitive bidding time for adjustment in the rural economies This would allow foreign based compa- for government contracts and protec- of these nations. nies to expand while leaving America tion of copyrights, patents and trade- Sincerely, more dependent on imports from marks—very important to Delaware ROB PORTMAN. abroad, which in turn would lessen the companies such as AstraZeneca and Mr. SPECTER. Mr. President, I seek demand for domestic production and Dupont. recognition today to express my objec- create even greater economic insta- However, we have not used the oppor- tions to the U.S. Central American bility. tunity provided by the negotiation of Free Trade Agreement, CAFTA. I have Finally, CAFTA’s impact on agri- this agreement to make as much spent a considerable amount of time culture is problemsome. CAFTA will progress as we should have, particu- reviewing the contents of the agree- not open new markets for American ag- larly in improving conditions for work- ment and there remain outstanding riculture goods. The U.S. is already the ers and protecting the environment. questions regarding labor and agri- CAFTA regions largest trading part- Steady progress was made in the 1990s culture. Until these questions are sat- ner. In many cases, our farm exports to in the way these important issues were isfactorily answered, I am opposed to the six CAFTA nations face tariffs that addressed. By the time the Jordan Free the agreement. are low or nonexistent and dominate Trade Agreement was adopted in 2001, Since June of 1998, Pennsylvania has their agricultural markets in several labor and environment provisions were lost 199,600 manufacturing jobs. Na- commodities. The International Trade all subject to sanctions through the tionwide nearly 900,000 manufacturing Commission has indicated that there agreement’s dispute resolution process. jobs have been lost. These statistics would be little gain for agriculture. This was an important advancement, are staggering. Unfortunately, this For example, currently, the U.S. sup- not just for workers in developing na- trade agreement would adversely affect plies 94 percent of all grain into the re- tions but also for competing workers this job loss in the United States; espe- gion. and businesses in the United States. cially in Pennsylvania. As I reviewed I urge my colleagues to carefully ex- The agreements Congress has consid- the agreement, I noticed the establish- amine this trade agreement. As a na- ered since 2001 have retreated from this

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00038 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 30, 2005 CONGRESSIONAL RECORD — SENATE S7735 strong enforcement standard, and this ican industry and American workers. actually increase the U.S. trade deficit has unnecessarily weakened the bipar- What we have been doing obviously has with Central America because Amer- tisan support for free trade that we not been working. Why do we continue ican companies will relocate their have built over the years. down this misguided path? The Amer- workforces and export their products While I am pleased that the adminis- ican trade deficit over the past ten back to the United States, just as com- tration has agreed to support an in- years demonstrates we’re on the wrong panies did under NAFTA. This can con- crease in funding to support efforts to track. tinue to decimate communities across improve labor and environment condi- At a more parochial level, since the country, as local plants shut down tions in Central America, I am aware NAFTA was implemented in 1994, New and the jobs moved overseas. NAFTA of no reason to back off of the strong Jersey has lost 130,000 manufacturing established the Trade Adjustment As- enforcement of labor and environ- jobs—46,000 as a direct result of sistance program, TAA, to help thou- mental obligations that we have in- NAFTA. New Jersey was once a center sands of manufacturing workers re- cluded in several agreements. Let me for manufacturing. In 1996, Allied Sig- ceive retraining, keep their health in- be clear. The administration must in- nal in Eatontown sent 230 jobs to Mex- surance, and make a new start. But clude a greater level of enforcement of ico, and required the laid off workers service sector jobs were left out. Dur- labor and environment standards in to train their Mexican replacements. ing the past several years, nearly half those trade agreements currently being American Standard in Piscataway and a million service jobs have moved off- negotiated in order to be assured of Hamilton sent 495 jobs to Mexico. Pat- shore to other—mostly low-wage— garnering my support in the future. It terson’s textile industry disappeared. I countries. Senator Wyden’s bipartisan is particularly important that we en- could go on and on about town after amendment to extend TAA to service force the obligation not to backslide or town in New Jersey that lost jobs after employees was accepted by the Finance repeal current labor and environmental NAFTA—from Millville to Elizabeth, Committee. Yet, when President Bush laws and regulations. from Woodbridge to Pennsauken. An- sent the CAFTA legislation to Con- I will be watching the negotiations of other bad trade agreement is the last gress, this amendment had been the Andean and Thailand trade agree- thing New Jersey needs. stripped from the bill. This amendment ments closely. If this administration is It is clear this is part of the Bush ad- was sensible, it was fair, and it should serious about getting those approved, ministration’s misguided strategy with have been included in this legislation. they will listen to the concerns that respect to U.S. trade policy. The Bush For all of the harm CAFTA would have been expressed in the debate over administration has made CAFTA, not cause U.S. workers, I am equally as DR–CAFTA, consult with Democrat China, is its No. 1 trade priority. Yet concerned about the harm the agree- and Republican Senators during the trade with Central American countries ment could do to the rights and protec- course of those negotiations and send represents only 1.5 percent of U.S. tions of workers in Central America. A the Senate free trade agreements with trade. The Gross Metropolitan Product, fair trade agreement must require each stronger enforcement of labor and envi- GMP, of the city of Newark is $103 bil- nation to improve domestic labor laws ronmental standards. In the months lion, larger than the GDP of all of to meet basic workers’ rights. And it and years ahead. these countries combined, $85.2 billion. should discourage our trading partners Mr. CORZINE. Mr. President, after Compare that with the fact that, just from weakening or eliminating en- serious deliberation, I will be voting last year, the United States ran a $162 tirely their labor laws in order to gain against the United States-Dominican billion trade deficit with China. Our an unfair trade advantage. But CAFTA Republic Central American Free Trade trade deficit alone with China is nearly does neither. CAFTA’s lone enforceable Agreement, or CAFTA. While I support double the GDP of the entire Central workers’ rights provision requires only the principle of free trade, free trade American trade region. This is a much that these countries enforce their own must also be fair. I have supported our more pressing issue for our economic labor laws—laws that our own State trade agreements with Australia, Jor- security, and we should be focusing our Department has said fail to meet rec- dan, and Morocco because these agree- attention on where the risks to imbal- ognized international standards. This ments reduce or eliminate barriers to ances are. Where is the pressure for not the standard for commercial or in- American exports while preserving and currency adjustment with China or the vestment standards. This failure to in- protecting important labor, environ- protection of intellectual property clude an enforceable requirement that mental and security interests around rights? labor laws meet basic international the globe. But this administration insists we standards represents a significant step A trade agreement between the first take up CAFTA, and so I feel com- backwards from the labor rights provi- United States and Central America pelled to discuss my opposition to this sions of our agreement with Jordan, a with the same safeguards has the po- agreement. Free trade agreements country with significantly stronger tential to serve as an important tool must protect the rights of workers, labor protections. In our shared goal at for promoting development and ad- both at home and abroad. When improving labor standards around the vancing meaningful socioeconomic re- NAFTA was passed by Congress more world, trade agreements like CAFTA form in the region. That said, the than eleven years ago, there was great should be both the carrot and the agreement before us takes a significant hope that the agreement would create stick. CAFTA is neither. step back from previous agreements thousands of new jobs in America and CAFTA proponents have argued that with respect to both labor and environ- promote labor rights abroad. this agreement is the principle means mental protections, and will only exac- Yet, as we stand here 11 years later, to lift Central America out of poverty erbate the outsourcing of American we know that the U.S. Department of and promote these shared principles. jobs and aggravate an already dan- Labor has certified more than 525,000 But this agreement will not do that, gerous world trade imbalance. Amer- workers for NAFTA trade adjustment and the consequences of NAFTA are ican workers justifiably feel insecure assistance because their jobs were lost evidence of why. Since NAFTA was im- in today’s economy, and the outsourc- due to NAFTA imports or shifts in pro- plemented more than eleven years ago, ing of American jobs at home is a duction to Canada or Mexico under real wages in Mexico have fallen, the major reason. The increasing trade def- NAFTA. Those same numbers reveal number of people in poverty has grown, icit puts an exclamation point on their that, through 2002, more than 46,000 and the number of people illegally mi- concerns. New Jersey workers had similarly lost grating to the United States to seek I would like to understand how this their jobs. And the numbers are actu- work has doubled. agreement is not just another in a long ally more serious, because since 2002, NAFTA’s liberalization in the agri- line of bad trade agreements that exac- the Department of Labor has refused to culture sector displaced more than 1.7 erbate our trade problems. Before we release these sobering statistics—some million rural small farmers, over- rush forward with policies that on the estimates suggest it is closer to one whelming the 800,000 number of new surface are failing, I would like some million jobs lost. jobs created in the export processing assurances that this won’t be just an- The U.S. International Trade Com- sectors. Rather than learn from these other punch to the stomach of Amer- mission, ITC, predicts that CAFTA will sobering failings by negotiating a trade

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00039 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY S7736 CONGRESSIONAL RECORD — SENATE June 30, 2005 agreement that creates good jobs, products, including french fries, which Through this measure, we are sup- guarantees worker rights, and lays the will immediately become duty-free in porting the backbone of our Nation’s groundwork for a strong middle class, most DR–CAFTA countries. water transportation and flood protec- the Administration has cloned NAFTA. With $104 million in export sales and tion programs through the Army Corps Unfortunately, the results are likely to total cash receipts of $155 million, Or- of Engineers; the irrigation water sup- be the same. egon’s wheat producers will benefit ply systems for the western States What is also likely to be the same is from the immediate elimination of tar- through the Bureau of Reclamation; the devastating impact on the environ- iffs on wheat and barley in all six coun- the protection of our Nation’s nuclear ment that CAFTA is likely have on tries. An American Farm Bureau anal- weapons stockpile; the advancement of Central America. Central America is ysis shows that U.S. agriculture may science programs to help ensure that one of the most biologically diverse gain $1.5 billion in increased exports the United States remains a leader in areas of the world. The region faces each year when the agreement is fully the international scientific commu- daunting environmental challenges implemented. nity; a number of independent agencies that threaten its potential for sustain- Oregon retailers, including Nike and and commissions, including the Appa- able development. Yet CAFTA would Columbia Sportswear, would benefit lachian Regional Commission, the undermine hard-won environmental from greater market access and in- Denali Commission, and the Delta Re- protections by allowing foreign inves- creased sourcing options. gional Authority; and now, due to the tors to challenge environmental laws Intel, another major employer in my restructuring of subcommittee juris- and regulations in all of the countries, state, stands to benefit from this dictions, the entire Department of En- including the U.S., that are parties to agreement. The CAFTA-DR countries ergy, DOE. the agreement. combine to rank as Oregon’s 10th larg- As part of that restructuring, the En- We have not learned the lessons of est export market. According to the Of- ergy and Water Subcommittee was the past. This is another bad trade fice of Trade and Economic Analysis, 94 charged with oversight and appropria- agreement that fails to address the real percent of Oregon’s exports to the re- tions responsibilities for the fossil en- economic issues our nation faces today. gion in 2003 were high-tech products. ergy research and development, R&D, We should be addressing our trade im- For the 15,500 Intel employees in Or- within the Department of Energy. Sen- balance. We should be promoting job egon, CAFTA-DR is critical for future ator DOMENICI and I have long worked growth here in the United States, in- growth in the region. on these programs, and I thank him stead of further encouraging companies This agreement is about leveling the and Senator REID and their staffs for to move jobs elsewhere. I oppose playing field for our domestic pro- their hard work, diligence, and support CAFTA because it fails to preserve ducers. The CAFTA-DR countries al- for fossil energy research in this bill. worker rights, protect the environ- ready have access to our market; this Through the Fossil Energy R&D pro- ment, or promote economic develop- agreement gives our growers and man- grams, DOE supports research involv- ment at home and abroad. It is wrong ufactures a chance to thrive in DR– ing economically and environmentally for New Jersey, and it is wrong for CAFTA markets. sound use of our Nation’s domestically America. produced fossil energy resources. It Mr. SMITH. Mr. President, more In recent weeks, this agreement has forges partnerships between Govern- than 20 years ago President Reagan been endorsed by the Oregonian, the ment and industry to accelerate the de- made a commitment to help the coun- New York Times, the Washington Post, velopment, demonstration, and deploy- tries of Central America by providing the Wall Street Journal, the Los Ange- ment of advanced technologies that them with unilateral access to the U.S. les Times, and USA Today. show promise in helping to ensure market. Through preference programs I understand that there are those cleaner, more reliable, and more af- such as the Generalized System of who are not entirely happy with this Preference, GSP, and the Caribbean agreement, including some in my own fordable energy, now and in the future. While the subcommittee did not hold Basin Initiative, Congress and various State. However, I come from a State in a fiscal year 2006 budget hearing on the administrations have sought to help which one in four jobs is tied to ex- fossil energy R&D programs this our southern neighbors by promoting ports. This agreement is about increas- spring, I appreciate Senator DOMENICI’s development and encouraging the ing export opportunities for producers commitment to hold annual oversight building of democratic societies. in my State and around the country. The Caribbean Basin Initiative has A recent editorial in the Oregonian hearings on the fossil energy programs provided critical economic aid to the said this about the agreement: beginning next year. I look forward to fledgling democracies of Central Amer- It is disturbing to see Oregon and national participating in these hearings as our ica, and in the past 20 years, chaos has leaders back away from the principle that fossil energy resources will continue to been replaced by commerce. free and fair trade is good for the United be important to this Nation. Since 1985, exports from the region to States and the rest of the world. People are I would also like to mention that the the United States have quadrupled; and better off in an integrated global economy clean coal program, which falls under where they have the opportunity to sell their the fossil energy portfolio, has been today, the agreement that we are tak- goods, services, and skills around the world. ing up seeks to provide reciprocal ac- critical to the development of cleaner, cess for our domestic producers. As a businessman, I have seen first- low-carbon fossil energy technologies. Today, 80 percent of goods and serv- hand the remarkable ability that trade I created the Clean Coal Technology ices and 99 percent of agricultural has to raise the standard of living both program in 1985, and I am very proud to products from the CAFTA-DR coun- domestically and around the world. I report that after five solicitations, 32 tries already enter the U.S. duty free. am hopeful that by passing this agree- projects have been completed, with a In contrast, our domestic producers ment, we will be able to create new combined value of $3.7 billion Govern- face steep tariffs—which are essen- growth opportunities for U.S. and Cen- ment/industry investments to develop tially foreign taxes—into the region. tral American producers, and we will advanced technologies that are result- Under CAFTA-DR, many of those tar- be able to show that America truly is a ing in cleaner, more efficient, and more iffs would go to zero. leader in furthering free and fair trade. cost-effective power generation. It is estimated that if approved, Mr. BYRD. Mr. President, I want, The subsequent Clean Coal Power CAFTA-DR would result in approxi- first to compliment the subcommittee Initiative, started by President Bush in mately $1 billion in annual savings on chairman of the Energy and Water Ap- 2000, was to be a $2 billion demonstra- tariffs for U.S. producers. propriations bill, Senator PETER tion program over 10 years, consisting Under CAFTA-DR, Oregon apple and DOMENICI, and the ranking member, of four rounds of solicitations. The ad- pear growers, who currently face tariffs Senator HARRY REID, for the out- ministration’s fiscal year 2006 budget as high as 25 percent into the region, standing job they have done in putting request of $50 million falls woefully will benefit from immediate duty together this bill. The well-being of the short of being able to keep the CCPI on elimination on fresh apples and pears. Nation depends greatly upon adequate a 2-year solicitation schedule. How- Oregon potato producers benefit from investments in the many programs and ever, I am very appreciative of the ad- duty elimination on certain potato activities contained in this bill. ditional $50 million that was provided

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00040 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 30, 2005 CONGRESSIONAL RECORD — SENATE S7737 by Senators DOMENICI and REID, at my countries have a combined population change, when the pace of mobility request. This funding will help to pave of approximately 31 million people who slows, it shows. Instead of a generation the way for a third CCPI solicitation in generally have limited incomes with or two between poverty and a solid the near future. which to purchase agriculture prod- middle class living, today it can take If we ever hope to increase our en- ucts. In fact, the market is only worth five or six generations. ergy security, reduce our dependence $1.6 billion in annual agriculture prod- We have yet to produce one single on foreign energy resources, and de- ucts. new job since this administration came velop fossil energy technologies that According to the most recent data, into office. Not one. Whomever you allow us to burn coal with little to no the U.S. supplied 94 percent of all blame or however you explain it, that pollution, we must adequately invest grains imported into the six CAFTA is a fact that registers in the lives of in these critical programs. There are countries. This domination means Americans. Not since the Great Depres- no better champions for energy re- there is little room for further upward sion has it taken so long to replace lost search than Senator DOMENICI, Senator growth in grain exports to CAFTA na- jobs. REID, and me. We have been able not tions. That is why long-term unemploy- only to authorize initiatives so critical I believe in international trade, pro- ment—over half a year looking for a to America’s energy independence, but vided it is fair trade and can expand job—is the lot of over a million and a we also have been able to direct re- our economy and create jobs. But I half Americans. sources to those important efforts and have concluded that this trade agree- These conditions keep wages low, keep them adequately funded for at ment will not do that. It is merely an- falling behind the cost of living. Real least another year. other product of this administration’s wages are falling at a rate we haven’t On Tuesday, June 28, 2005, the Senate failed trade strategy—a strategy that seen in 14 years. passed a bipartisan Energy bill, and I has victimized American manufactur- Into these tough times comes the word that 2 billion new workers, in was happy to support that bill. It is ers while costing millions of American China and India, to take the two big- generally a positive bill, but it is also workers their jobs. The administration gest examples, are now competing with very much of a business-as-usual ap- is so wedded to the notion that all is Americans for new jobs created in the proach toward energy policy. This bill well that it cannot hear the cries of global economy. simply provides authorization for new those who would be harmed by this These workers are highly moti- and existing programs related to en- trade agreement. The failure to take vated—the poverty they are rising ergy policy. Despite the fact that the sufficient and educated steps to from, the pace of growth they can see administration is strongly pressing for strengthen America’s future in this in their cities, is a powerful incentive. an Energy bill, I have to wonder if the trade agreement is why I am opposing Their governments are increasingly so- necessary funding to support this legis- CAFTA. phisticated about attracting invest- lation will ever emerge in subsequent Mr. BIDEN. Mr. President, not that ment and expertise from here and administration budgets. long ago, for the average American, around the world to fuel their national Certainly, the administration’s track our world was not a threatening place. economic strategies. record on funding other important Not long ago, there was little reason With these troubling trends, Ameri- measures like No Child Left Behind for the average American to feel anx- cans are in no mood to accept text makes one wonder if energy funding ious about the future. The United book platitudes about the benefits of will face continued shortfalls despite States was the only superpower; our free trade. They want to see some of the prized rhetoric and Rose Garden economy was enjoying record growth the gains come home. ceremonies. Due to very constrained and job creation. I am personally convinced that trade budget allocations, the Appropriations Those things are no longer true. The is in fact not only ultimately good for Committee is likely to find it ex- rise of terrorism, the war in Iraq, inter- us, but inevitable. Standing at our tremely difficult to maintain funding national economic competition from shores, commanding the tides of trade for current energy programs, to say new sources like China and India, as to retreat, is not a plan for our Na- nothing of adding funding for the new well as increased economic insecurity tion’s economic future. or expanded energy programs in an En- here at home—together these forces We fought and won a Cold War in the ergy bill. have cost us a lot of our optimism, a last century a war against a totali- At least for the next fiscal year, the lot of our self-confidence. tarian economic ideology, to protect Senate’s mark for the fossil energy We are a people whose birthright is a and project American values of polit- programs will keep these programs belief in a better future, a belief in our ical and economic freedom in the moving in the right direction, despite ability to control our own fate, at world. the administration’s budget cuts. home and abroad. That is our national Now is not the time to doubt those Again, I thank the chairman and the character. But these days, our char- values. They are still the right values ranking member of the Energy and acter is being tested. for us, and the right values for the citi- Water Subcommittee and their staff, Even in the best of times, trade legis- zens of other nations. Free men and Scott O’Malia, Roger Cockrell, Emily lation has been a touchy subject. These women, freely exchanging goods and Brunini, Drew Willison, and Nancy days, it can be among the most conten- ideas, innovating, creating. That is the Olkewicz, for their extraordinary ef- tious issues we confront. Our trade world we fought for, that is the evi- forts in this regard and for producing a deals carry the freight of our insecu- dence of our success. bill that I believe we can all support. rities, economic and otherwise. And what is the alternative? Do we Mr. DURBIN. Mr. President, I rise to They carry our worries about our expect to close our ports to products oppose CAFTA for the reasons I stated place in international competition, Americans want to buy? Can we expect earlier. It seems logical to say that if about job security, about losing our to successfully block American compa- we want to expand our export markets, grip on our standard of living. There nies from seeking profitable invest- we should be negotiating with coun- are real reasons that Americans are ments overseas? tries who have a more sizable market worried these days. Studies by the Fed- In today’s world, American leader- for our goods and greater buying power eral Reserve and others confirm that ship is a reality. We cannot lead the to purchase our goods. However, these income mobility—the opportunity for world in the search for security but at CAFTA countries account for only 1.5 children to do better in life than their the same time retreat economically. percent of U.S. exports. parents is declining, approaching the Trade can help cement peaceful ties, Illinois is an agriculture State. I levels of more static, developing econo- raise living standards, give desperate have supported prior trade agreements mies. people hope and put idle hands to work. because of the benefit they have pro- Without poring over statistics, Amer- Trade must be part of our security vided to agriculture. However, esti- icans can see that happening. The re- strategy, or that strategy will not suc- mates that passage of CAFTA will ality of self-determination, the fact of ceed. produce sizable trade gains for U.S. social mobility, has been the founda- If there is to be a better world ahead farmers are overly optimistic. CAFTA tion of our optimism. When the facts of us, wealthier, healthier, freer—and I

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It comes at the cost of the same terms as intellectual prop- uates are not up to the standards his predictability, at the cost of stability. erty and commercial provisions, allows company needs. Newt Gingrich has The economist Joseph Schumpeter for effective enforcement when a party called the administration’s lack of in- called capitalism a process of creative fails to live up to its labor rights com- vestment in basic research, and I destruction. And that it is. mitments. That effective enforcement quote, ‘‘unilateral disarmament’’ in The telephone replaced the tele- standard is part of the Jordan Free the face of international competition. graph, the automobile replaced the Trade Agreement, now in effect. Those are not partisan attacks. Those horse, supermarkets replaced mom- But instead of building on that suc- are warnings we cannot ignore. and-pop grocery stores. Our farms are cess, CAFTA comes to us today with- Because we don’t have an adequate mechanized; our manufacturing is ro- out that effective means of enforce- defense for the families who are af- botized; our information is computer- ment. fected by economic change, because we ized. With every new idea, with every At a time when the political support don’t have an effective offense to win new invention, an old product, an old for trade is shaky at best, with Amer- in a globalizing economy, I cannot lend technology, and the jobs they sus- ican families justifiably anxious about my support to this trade deal. It sends tained, are left behind. the volatility and insecurity just below the wrong message, it sets the wrong Our Nation has become wealthy the surface of our economy, why would example. riding the waves of innovation, oppor- we roll back the standards for labor The CAFTA countries themselves are tunity, efficiency, and economic protections in our trade deals? no more than 1 percent of our trade. In growth. That, in part, is the American It just doesn’t make any sense. many ways, they are not the issue way. I notice that there is a lot of new lan- here. I believe it will be good for our But another part of the American guage in this trade agreement about country if these nations can enter our way is our shared commitment to each labor rights in the countries of Central markets. It will make those economies other. With every wave of change, from America and the Dominican Republic. stronger, make them better neighbors, agrarian nation to manufacturing That shows that our negotiators are and open markets for the products power, to the world’s richest economy, getting the message about how impor- made by American workers. But only if the deal is done right. we have created the institutions to tant those provisions are to the polit- cope with the human costs of economic Only if we have the protections in ical support we need for trade. change. Child labor laws, minimum But instead of providing labor stand- place that can truly lift human rights, wage, the 40-hour workweek, these are ards with the same level of effective labor, and environmental standards evidence of our values. And we have enforcement that American businesses there, and build the protections for Social Security, Medicare, unemploy- will get for their concerns, this deal American workers and producers here. ment insurance—all ways to share the So I will vote against CAFTA not be- leaves labor a second-class citizen. costs and spread the burdens of a cause I oppose trade but because I sup- But it is not just the specific terms churning economy. port smart trade, trade that works for of this trade deal that concern me Most fundamentally, we have estab- American families, trade that is good today. If we are going to compete in to- lished the rights of working men and for both sides. women to bargain collectively for their day’s global economy, we need a plan I am afraid that more trade agree- wages and working conditions: these to protect American living standards ments along these lines will weaken things are also the American way. and a plan to keep our Nation the most domestic support for expanding trade. When it is done right, trade makes us competitive on Earth. We need the full, informed consent of We need a good defense, but we need more efficient and more productive. American citizens for trade, we need a a good offense, too. With the economic gains from trade we trade agenda Americans can support, We need a strong trade adjustment can afford to take care of those whose and we need to a plan to defend our assistance program, and we need the jobs are lost as the new ones are cre- standard of living here and to compete will to enforce it. We need to make ated. to win in the global economy. There is a human logic to this, a sure that health insurance, pensions, We need to win the support of Amer- logic that says the men and women, and other basic benefits are protected ican working families for expanded and their families and communities, and portable in a changing world. trade, and restore their faith in our who are displaced by economic change I think we should consider a real ability to win. Until then, trade deals are not to blame for their fate. They wage insurance policy that addresses like this one will just add to their wor- should not shoulder alone the costs of not just the jobs lost by trade—in re- ries. change while others reap the benefits. ality, trade is a small part of the Mr. BUNNING. Mr. President, I have There is an economic logic, as well— churning in our economy—but any job spent many hours examining and dis- by compensating some for bearing the loss that could put a family’s standard cussing the agreement before us today. cost of change, we keep innovation and of living at risk. As my colleagues know, my vote has opportunity expanding for everyone. If we do it right—and right now we never been a rubberstamp for trade And finally there is a political logic. just have a small pilot program out agreements. When we all know that we are not there—wage insurance could provide I take my responsibility to examine alone, that there are resources we can real help to families in transition from these agreements very seriously. My draw on in tough times, we don’t have one job to another and keep our labor constituents deserve no less. In the to fight change. Without that assur- markets open and dynamic. past, I have supported trade agree- ance, in our open political system, But important as those kinds of pro- ments, and I have opposed trade agree- those who bear the cost of change and tections can be, they are just playing ments, as their merits demanded. innovation will—understandably—re- defense. Right now, I don’t see a plan After long and careful thought, I sist it. for an offense, a plan for us to take on have decided that I will support the If trade is ultimately good for our the rising competition from around the agreement with Central America which economy as a whole, we must make world, a plan to make American work- is before the Senate today. sure that it is good for American work- ing men and women the winners. This agreement is not perfect—far ers and their families, too. That is going to take investments in from it. This trade deal does not do that, and education, in research, and in new The phaseout times on many of the that is why I cannot support it. technologies. That is going to take a agricultural products are too long. We I said 2 years ago that I was con- commitment to making our workforce should not be waiting for 10, 15, some- cerned about the lack of effective en- the most productive in the world, giv- times 20 years for duty-free access to

VerDate Mar 15 2010 21:50 Jan 30, 2014 Jkt 081600 PO 00000 Frm 00042 Fmt 0624 Sfmt 0634 E:\2005SENATE\S30JN5.PT2 S30JN5 mmaher on DSKCGSP4G1 with SOCIALSECURITY June 30, 2005 CONGRESSIONAL RECORD — SENATE S7739 sell our farm products in these coun- agreement, the democracies we have and passed, the motions to reconsider tries. It is my understanding that the helped build in Central America will be be laid upon the table, and that any protection of one particular American less prosperous in the increasingly statements relating to the bill be product was largely responsible for the competitive global marketplace. We printed in the RECORD. I further ask negotiating situation that led to the must allow these fledgling democracies unanimous consent that following pas- long tariff elimination schedules for so the access they need to compete with sage, the Senate insist on its amend- many of our farming products. the overwhelming wave of Chinese im- ments, request a conference with the If not for the fact that, almost with- ports. House, and that the Chair be author- out exception, the Central American It is the development of strong trade ized to appoint conferees on the part of countries have enjoyed duty-free ac- in goods and services that will help the Senate. cess to our markets for their agricul- these countries to oppose a return to The PRESIDING OFFICER. Without tural exports for years, these long tar- corrupt regimes that promote trade in objection, it is so ordered. iff phaseout schedules might well have illegal drugs. The clerk will report the bill by title. forced me to oppose this agreement. We in this body have done so much to The assistant legislative clerk read The truth is, due to existing trade re- foster democracy and economic sta- as follows: lationships, the various parties did not bility in Central America. The ap- A bill (H.R. 2985) making appropriations start out this trade negotiation on proval of DR–CAFTA is another chance for the Legislative Branch for the fiscal year similar footings: We paid to export to for us to show our support of these ending September 30, 2006, and for other pur- them and they did not pay to export to democratic governments. poses. us. I have come to believe after long and The Senate proceeded to consider the While this agreement absolutely does careful examination, that this agree- bill which had been reported from the not even this relationship as quickly ment is good for the United States and Committee on Aproppriations, with and fairly as I would like, it does even- for the future of Central America. I amendments. tually get the job done. While our urge my colleagues to support the (Strike the parts shown in black farmers are often forced to wait far too agreement before us today. brackets and insert the parts shown in long for duty-free acess, that duty-free The PRESIDING OFFICER. Under italic.) access does eventually go into place. the previous order—— H.R. 2985 The opportunity for new export mar- Mr. BAUCUS addressed the Chair. Be it enacted by the Senate and House of Rep- kets for our farmers will be—ulti- The PRESIDING OFFICER. The Sen- resentatives of the United States of America in mately—beneficial to the folks in Ken- ator from Montana. Congress assembled, That the following sums tucky, particularly the rural parts of Mr. BAUCUS. Mr. President, I ask are appropriated, out of any money in the my State. unanimous consent that the following Treasury not otherwise appropriated, for the While I have concerns about other be the only remaining debate on the Legislative Branch for the fiscal year ending September 30, 2006, and for other purposes, parts of the agreement, particularly bill, in the following order: Senator namely: some textile issues, there are also as- SESSIONS, 10 minutes; Senator DAYTON, TITLE I—LEGISLATIVE BRANCH pects of the agreement which are espe- 5 minutes; Senator SUNUNU, 5 minutes; APPROPRIATIONS cially good for Kentucky. Senator ENSIGN, 5 minutes; Senator SENATE Important to my State of Kentucky BAUCUS, 10 minutes; Senator GRASSLEY, EXPENSE ALLOWANCES is the treatment of the exportation of 10 minutes; Senator REID from Nevada, For expense allowances of the Vice President, tobacco products under the agreement. 10 minutes; Senator FRIST, 10 minutes. I was particularly pleased to see that $20,000; the President Pro Tempore of the Sen- The PRESIDING OFFICER. Is there ate, $40,000; Majority Leader of the Senate, the report of the Agricultural Tech- objection? $40,000; Minority Leader of the Senate, $40,000; nical Advisory Committee for Cotton, The Senator from North Dakota. Majority Whip of the Senate, $10,000; Minority Peanuts, Planting Seeds and Tobacco, Mr. DORGAN. Mr. President, reserv- Whip of the Senate, $10,000; President Pro Tem- which included a member of the Ken- ing the right to object, how much time pore emeritus, $15,000; Chairmen of the Majority tucky Farm Bureau, found the agree- remains on my allocation? and Minority Conference Committees, $5,000 for ment to be fair regarding tobacco The PRESIDING OFFICER. The Sen- each Chairman; and Chairmen of the Majority trade. ator from South Dakota has 11 minutes and Minority Policy Committees, $5,000 for each Chairman; in all, $195,000. I was also pleased to see that this 28 seconds. agreement immediately eliminates tar- Mr. DORGAN. Mr. President, let me REPRESENTATION ALLOWANCES FOR THE MAJORITY AND MINORITY LEADERS iffs on bourbon and whiskeys exported reserve 5 minutes of that as well. from America. Furthermore, agree- Mr. BAUCUS. Mr. President, I add For representation allowances of the Majority and Minority Leaders of the Senate, $15,000 for ment for the recognition of ‘‘bourbon’’ that to the request. each such Leader; in all, $30,000. as an exclusively Kentucky-made prod- The PRESIDING OFFICER. Will the SALARIES, OFFICERS AND EMPLOYEES uct is important to an industry em- Senator from Montana state where he ploying over 30,000 Kentuckians. For compensation of officers, employees, and would like that placed in the order. others as authorized by law, including agency I also want to bring the attention of Mr. BAUCUS. That would be after contributions, $147,120,000, which shall be paid my colleagues to the fact that this Ensign and before myself. from this appropriation without regard to the agreement, while obviously primarily a The PRESIDING OFFICER. Is there following limitations: trade agreement, also represents an op- objection to the modified request? OFFICE OF THE VICE PRESIDENT portunity for us to show our support to Without objection, it is so ordered. For the Office of the Vice President, a region that has come a long way in The Senator from Colorado. $2,181,000. the area of democracy. f OFFICE OF THE PRESIDENT PRO TEMPORE Not so long ago, most of us here will For the Office of the President Pro Tempore, remember, democracy was not assured LEGISLATIVE BRANCH $582,000. in this part of the world. In Central APPROPRIATIONS ACT, 2006 OFFICE OF THE PRESIDENT PRO TEMPORE America—our own backyard—com- Mr. ALLARD. Mr. President, I ask EMERITUS munism was a threat. The United unanimous consent that the Senate For the Office of the President Pro Tempore States has worked hard over the years proceed to the immediate consider- emeritus, $290,000. and we have seen the menace of com- ation of Calendar No. 138, H.R. 2985; I OFFICES OF THE MAJORITY AND MINORITY LEADERS further ask unanimous consent that munism recede and the democracies For Offices of the Majority and Minority and economies of El Salvador, Guate- the committee-reported amendments Leaders, $4,340,000. mala, Nicaragua and Honduras begin to be agreed to; provided further that the OFFICES OF THE MAJORITY AND MINORITY WHIPS flourish. Lott-Dodd amendment which is at the For Offices of the Majority and Minority We must not lose track of the mes- desk be considered and agreed to, there Whips, $2,644,000. sage that the approval of this agree- be 5 minutes of debate equally divided COMMITTEE ON APPROPRIATIONS ment will send to these new democ- between the two managers, and the For salaries of the Committee on Appropria- racies on our doorstep. Without this bill, as amended, be read a third time tions, $13,758,000.

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