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President Obama's Trade Policy Agenda with U.S PRESIDENT OBAMA’S TRADE POLICY AGENDA WITH U.S. TRADE REPRESENTATIVE RON KIRK AND SECOND PANEL ON THE FUTURE OF U.S. TRADE NEGOTIATIONS HEARING BEFORE THE COMMITTEE ON WAYS AND MEANS U.S. HOUSE OF REPRESENTATIVES ONE HUNDRED TWELFTH CONGRESS SECOND SESSION FEBRUARY 29, 2012 Serial No. 112–22 Printed for the use of the Committee on Ways and Means ( U.S. GOVERNMENT PRINTING OFFICE 78–589 WASHINGTON : 2013 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate Mar 15 2010 05:21 Apr 03, 2013 Jkt 078589 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 I:\WAYS\OUT\78589.XXX GPO1 PsN: 78589 ccoleman on DSK8P6SHH1PROD with HEARING COMMITTEE ON WAYS AND MEANS DAVE CAMP, Michigan, Chairman WALLY HERGER, California SANDER M. LEVIN, Michigan SAM JOHNSON, Texas CHARLES B. RANGEL, New York KEVIN BRADY, Texas FORTNEY PETE STARK, California PAUL RYAN, Wisconsin JIM MCDERMOTT, Washington DEVIN NUNES, California JOHN LEWIS, Georgia PATRICK J. TIBERI, Ohio RICHARD E. NEAL, Massachusetts GEOFF DAVIS, Kentucky XAVIER BECERRA, California DAVID G. REICHERT, Washington LLOYD DOGGETT, Texas CHARLES W. BOUSTANY, JR., Louisiana MIKE THOMPSON, California PETER J. ROSKAM, Illinois JOHN B. LARSON, Connecticut JIM GERLACH, Pennsylvania EARL BLUMENAUER, Oregon TOM PRICE, Georgia RON KIND, Wisconsin VERN BUCHANAN, Florida BILL PASCRELL, JR., New Jersey ADRIAN SMITH, Nebraska SHELLEY BERKLEY, Nevada AARON SCHOCK, Illinois JOSEPH CROWLEY, New York LYNN JENKINS, Kansas ERIK PAULSEN, Minnesota KENNY MARCHANT, Texas RICK BERG, North Dakota DIANE BLACK, Tennessee TOM REED, New York JENNIFER SAFAVIAN, Staff Director JANICE MAYS, Minority Chief Cousel ii VerDate Mar 15 2010 05:21 Apr 03, 2013 Jkt 078589 PO 00000 Frm 00002 Fmt 0486 Sfmt 0486 I:\WAYS\OUT\78589.XXX GPO1 PsN: 78589 ccoleman on DSK8P6SHH1PROD with HEARING C O N T E N T S Page Advisory of February 29, 2012, announcing the hearing ..................................... 2 WITNESSES PANEL 1: Ambassador Ron Kirk, United States Trade Representative, Office of the United States Trade Representative, Testimony ............................................... 7 PANEL 2: Mr. Tim Harris, President, Harris & Ford, LLC, Testimony ............................... 54 Mr. Brian Krzanich, Senior Vice President and Chief Operating Offer, Intel Corp., Testimony .................................................................................................. 59 Mr. James H. Quigley, Senior Partner, Deloitte & Touche, LLP, Testimony .... 75 Mr. Alan Wolff Of Counsel, Dewey & LeBoeuf, LLP, Testimony ........................ 102 SUBMISSIONS FOR THE RECORD The Hon. Dave Camp, Letter 1 .............................................................................. 133 The Hon. Dave Camp, Letter 2 .............................................................................. 135 National U.S. Arab Chamber of Commerce ........................................................... 137 The U.S.–China Business Council .......................................................................... 140 Coalition to Enforce Antidumping & Countervailing Duty Orders ..................... 156 Business Roundtable ............................................................................................... 159 U.S. Chamber of Commerce .................................................................................... 166 American Apparel & Footwear Association ........................................................... 179 Center for Fiscal Equity .......................................................................................... 184 Consumer Electronics Association .......................................................................... 189 Citizen Trade Policy Commission ........................................................................... 191 Intel ........................................................................................................................... 193 Philippine Embassy ................................................................................................. 208 Southern Shrimp Association ................................................................................. 211 MATERIAL SUBMITTED FOR THE RECORD Questions for the Record ......................................................................................... 214 iii VerDate Mar 15 2010 05:44 Apr 03, 2013 Jkt 078589 PO 00000 Frm 00003 Fmt 0486 Sfmt 0486 I:\WAYS\OUT\78589.XXX GPO1 PsN: 78589 ccoleman on DSK8P6SHH1PROD with HEARING VerDate Mar 15 2010 05:21 Apr 03, 2013 Jkt 078589 PO 00000 Frm 00004 Fmt 0486 Sfmt 0486 I:\WAYS\OUT\78589.XXX GPO1 PsN: 78589 ccoleman on DSK8P6SHH1PROD with HEARING PRESIDENT OBAMA’S TRADE POLICY AGENDA WITH U.S. TRADE REPRESENTATIVE RON KIRK AND SECOND PANEL ON THE FUTURE OF U.S. TRADE NEGOTIATIONS WEDNESDAY, FEBRUARY 29, 2012 U.S. HOUSE OF REPRESENTATIVES, COMMITTEE ON WAYS AND MEANS, Washington, DC. The Committee met, pursuant to notice, at 10:08 a.m., in room 1100, Longworth House Office Building, the Honorable Dave Camp (Chairman of the Committee) presiding. [The advisory of the hearing follows:] (1) VerDate Mar 15 2010 05:21 Apr 03, 2013 Jkt 078589 PO 00000 Frm 00005 Fmt 6633 Sfmt 6633 I:\WAYS\OUT\78589.XXX GPO1 PsN: 78589 ccoleman on DSK8P6SHH1PROD with HEARING 2 HEARING ADVISORY FROM THE COMMITTEE ON WAYS AND MEANS Chairman Camp Announces Hearing on President’s Obama’s Trade Policy Agenda with U.S. Trade Representative Ron Kirk and Second Panel on the Future of U.S. Trade Negotiations Wednesday, February 29, 2012 House Ways and Means Committee Chairman Dave Camp (R–MI) today an- nounced that the Committee on Ways and Means will hold a hearing on President Barack Obama’s trade policy agenda with U.S. Trade Representative Ron Kirk and with a second panel of witnesses on the future of U.S. trade negotiations. The hear- ing will take place on Wednesday, February 29, 2012, in 1100 Longworth House Office Building, beginning at 10:00 a.m. In view of the limited time available to hear the witnesses, oral testimony at this hearing will be from invited witnesses only. However, any individual or organization not scheduled for an oral appearance may submit a written statement for consider- ation by the Committee and for inclusion in the printed record of the hearing. A list of invited witnesses will follow. BACKGROUND: International trade is an engine for growth and job creation in the United States. While the United States is the largest economy and trading nation in the world, 95 percent of the world’s consumers are abroad. The future success of American work- ers, businesses, and farmers is therefore integrally tied with continuing America’s strong commitment to finding new markets and expanding existing ones for U.S. goods and services. The bipartisan passage of the implementing bills for the Colombia, Panama, and South Korea free trade agreements in October 2011 marked an important step for- ward for U.S. trade policy. This hearing will provide an opportunity to explore with Ambassador Kirk how the President’s trade agenda will sustain this momentum with respect to current trade issues, such as: progress in the Trans-Pacific Partner- ship negotiations; Russia’s accession to the World Trade Organization; China’s trade restrictive practices and non-tariff barriers that prevent U.S. companies from com- peting on a level playing field; the President’s trade agency reorganization proposal and National Export Initiative (NEI); and various bilateral and multilateral trade disputes and concerns. In addition, Ambassador Kirk’s testimony and the second panel of witnesses will provide an opportunity to focus on long-term thinking relat- ing to future trade negotiations, including ‘‘post-Doha’’ WTO issues such as an inter- national services agreement, Information Technology Agreement (ITA) expansion, and a trade facilitation agreement in the age of global supply chains; Bilateral In- vestment Treaties (BITs) with China and India and new BITs and investment op- portunities; and the trade and investment relationship with the European Union, India, and Latin America. In announcing this hearing, Chairman Camp said, ‘‘Opening new markets for U.S. businesses, workers, and farmers and strong enforcement of U.S. rights are essential to driving economic growth and job creation here in the United States. The three free trade agreements with Colombia, Pan- ama, and South Korea that Congress passed last year in a bipartisan man- ner sent a strong message that the United States has returned to the trade negotiating table. We are now at an important juncture to move forward aggressively on the Trans-Pacific Partnership negotiations and other ini- tiatives to make sure that last year’s momentum is not lost. It’s also a crit- ical time for us to look ahead for future trade and investment opportuni- ties with important trading partners like the European Union, India, and VerDate Mar 15 2010 05:21 Apr 03, 2013 Jkt 078589 PO 00000 Frm 00006 Fmt 6633 Sfmt 6621 I:\WAYS\OUT\78589.XXX GPO1 PsN: 78589 ccoleman on DSK8P6SHH1PROD with HEARING 3 Latin America to maximize American competitiveness and ensure that we do not fall behind.’’ FOCUS OF THE HEARING: The first panel of the hearing will provide an opportunity to explore with Ambas- sador Kirk current trade issues such as: (1) ensuring prompt implementation of the three free trade agreements with Colombia, Panama, and South
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