Wyden testimony on passage of CAFTA

U.S. SENATOR RON WYDEN June 30, 2005

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MR. PRESIDENT, I HAVE DECIDED TO SUPPORT CAFTA, AND BECAUSE I KNOW I'LL HAVE A LOT OF WELTS ON MY BACK TO SHOW FOR IT, I WANT TO TAKE A FEW MINUTES TO DESCRIBE HOW I ARRIVED AT MY DECISION. MR. PRESIDENT AND COLLEAGUES, A SPECIAL CONCERN TO ME IS IF CAFTA IS REJECTED, CHINA WILL HAVE YET ANOTHER OPPORTUNITY TO GROW ITS ECONOMY, STRENGTHEN ITS ECONOMIC BASE AT AMERICA'S EXPENSE. WHY AMERICANS WOULD WANT TO DO THAT JUST DEFIES LOGIC.

CHINA IS ALREADY AN ECONOMIC JUGGERNAUT, BUT AS OF NOW, THEY ARE NOT GOING TO GET DUTY-FREE EXPORTS TO CENTRAL AMERICA. ONLY THE UNITED STATES HAS THAT PROSPECT. BUT IF AMERICA WALKS AWAY FROM THIS AGREEMENT, DOES ANYONE REALLY THINK THAT THE CHINESE WILL SIT ON THE SIDELINES?

AS THE KIDS SAY, "HELLO?" THE CHINESE WOULD LOVE THE OPPORTUNITY TO GET AN ECONOMIC TOE HOLD IN OUR BACKYARD, AND I, FOR ONE, DON'T THINK WE OUGHT TO GIVE THEM THAT OPPORTUNITY TO DO IT. PERSONALLY, I BELIEVE WE OUGHT TO BE MORE VIGILANT IN TERMS OF WATCHDOGING TRADE WITH CHINA THAN WE'VE BEEN. THAT'S WHY LAST WEEK I PUSHED THE BUSH ADMINISTRATION TO IMMEDIATELY MOVE TO DO A REVIEW OF THE PROPOSED PURCHASE OF UNOCAL TO EXAMINE UNDER THE EXXON-FLORIO LAW, A DEAL THAT IS ESSENTIALLY UNPRECEDENTED.

I'VE LONG FELT THAT IF YOU'RE A FREE TRADER -- AND I'M STILL WILLING TO BE CALLED THAT -- YOU OUGHT TO PROTECT YOUR INTERESTS. THAT'S WHY I FAVOR, FOR EXAMPLE, DOING A RIGOROUS REVIEW OF THAT PROPOSED PURCHASE OF UNOCAL. BUT I ALSO PROPOSE STANDING UP FOR OUR INTERESTS IN CENTRAL AMERICA RATHER THAN WALKING AWAY FROM THE REGION AND HANDING THE CHINESE YET ANOTHER GOLDEN ECONOMIC OPPORTUNITY TO STRENGTHEN ITS ECONOMIC BASE.

MY VIEW IS WITH RESPECT TO INTERNATIONAL TRADE, WE OUGHT TO MAKE THINGS AND GROW THINGS IN THE UNITED STATES OF AMERICA AND THEN SELL THEM AROUND THE WORLD.

AND PARTICULARLY, I WANT TO SEE US SELL MORE VALUE-ADDED PRODUCTS MADE IN THE UNITED STATES OF AMERICA. AND I THINK THERE IS AN OPPORTUNITY IN CENTRAL AMERICA TO SELL THOSE VALUE-ADDED PRODUCTS MADE IN THE UNITED STATES, SUCH AS HEALTH CARE EQUIPMENT, ENERGY PRODUCTION AND CONSERVATION GOODS, CHIPS, COMMUNICATIONS GEAR, A WHOLE HOST OF PRODUCTS. AND THE REASON I SAY THAT IS THAT THE PRESIDENTS OF VARIOUS COUNTRIES IN CENTRAL AMERICA HAVE WRITTEN INDICATING THAT THEY ARE PREPARED TO NOW MAKE THOSE PURCHASES, AND THEY ARE INTERESTED IN UNITED STATES SUPPLIERS.

NOW, SOME HAVE SAID, WELL, HOW IS SOMEBODY IN CENTRAL AMERICA GOING TO HAVE THE MONEY TO PURCHASE THESE HEALTH CARE PRODUCTS AND CHIPS AND COMPUTERS AND COMMUNICATIONS GEAR? WELL, THE REALITY IS THAT THE FIRST PURCHASES WILL BE MADE BY GOVERNMENTS IN CENTRAL AMERICA. THE GOVERNMENTS HAVE INDICATE TO ME THAT THEY'RE THE ONES WHO WANT TO SPEND ON OUR VALUE-ADDED PROJECTS, COMPUTERS AND CHIPS AND ENERGY-PRODUCTION DEVICES.

EL SALVADOR… INTEND[S] TO INCREASE DRAMATICALLY THE NUMBER OF TELEPHONES, WIRELESS DEVICES, THE VARIOUS TECHNOLOGIES THAT WILL ALLOW THEM TO BE PART OF THE INFORMATION AGE. WE OUGHT TO MAKE SURE THAT THOSE PRODUCTS ARE MADE IN OUR COUNTRY, SOLD THERE, AND WE WILL HAVE AN OPPORTUNITY TO DO MORE OF THAT UNDER THIS AGREEMENT WHICH WILL ALLOW US TO SEND AMERICAN EXPORTS INTO CENTRAL AMERICA DUTY-FREE.

FRIEND FROM MONTANA ON THE FLOOR, SENATOR BAUCUS, HE HAS CHAMPIONED TRADE ADJUSTMENT ASSISTANCE WITH MYSELF SENATOR ROCKEFELLER AND SENATOR COLEMAN.

WE GOT 54 VOTES IN THE UNITED STATES SENATE NOT LONG AGO FOR OUR BIPARTISAN LEGISLATION TO TRY TO ASSIST WORKERS WHO ARE ADVERSELY AFFECTED BY TRADE.

IT JUST SEEMS INCOMPREHENSABLE THAT WE CAN'T MODERNIZE THIS PROGRAM. IT'S DECADES' OVERDUE IT OUGHT TO BE EXTENDED TO SERVICE INDUSTRIES.

THERE'S BIPARTISAN SUPPORT FOR IT IN THE UNITED STATES SENATE. AND IT WOULD BE YET ANOTHER MESSAGE TO THE WORKERS OF THIS COUNTRY WHO ARE OUT ON THE SHOP FLOORS THAT WE ARE CONCERNED FIRST AND FOREMOST FOR THEIR WELL-BEING.

SO I'M GOING TO CONTINUE TO COME BACK AND PROSECUTE THIS CAUSE WITH THE SENATOR FROM MONTANA, THE CHAIRMAN OF OUR COMMITTEE, SENATOR GRASSLEY, KNOWS FULL WELL HOW STRONGLY I AND SENATOR COLEMAN FEEL ABOUT IT BECAUSE IT IS UNACCEPTABLE TO ME THAT THERE ISN'T A TRAMPOLINE, A SORT OF SAFETY NET FOR WORKERS WHO ARE ADVERSELY AFFECTED BY TRADE. WE OUGHT TO HAVE THAT OPPORTUNITY FOR THEM TO BOUNCE BACK WHEN THEY'RE ADVERSELY AFFECTED BY TRADE. WE'VE HAD IT IN OTHER EXAMPLES THE FAILURE TO EXTEND IT TO SERVICE WORKERS WHO COULD BE AFFECTED BY THIS AND OTHER TRADE AGREEMENTS I THINK IS A MAJOR MISTAKE.

MR. PRESIDENT AND COLLEAGUES, THERE ARE OTHER CHANGES THAT I WOULD HAVE WANTED IN PARTICULAR IN THE PHARMACEUTICAL AREA. I THINK THIS LEGISLATION IS NOT WELL-CONCEIVED IN THAT IT CLEARLY FAVORS BRAND NAMES OVER THE GENERIC INGREDIENTS. BUT I WILL SAY TO COLLEAGUES THAT EVEN WITH THESE CONCERNS, THE INABILITY TO HAVE A MODERNIZATION OF THE TRADE ADJUSTMENT PROGRAM AND SOME LABOR ISSUES, ADDRESSED IN THE WAY I WOULD, IT IS A BIGGER MISTAKE TO REJECT THIS AGREEMENT.

YOU REJECT THIS AGREEMENT, YOU SEND A MESSAGE TO CHINA, YOU OUGHT TO HEAD FOR CENTRAL AMERICA AS FAST AS YOU CAN BECAUSE YOU'VE NOT GOT AN OPPORTUNITY TO GET A TOEHOLD IN AMERICA'S BACKYARD. YOU'RE CUTTING OFF THE OPPORTUNITY FOR A LOT OF AMERICAN EXPORTERS, PEOPLE WHO MAKE THOSE VALUE-ADDED PRODUCTS, HIGH-SKILLED, HIGH-WAGE PRODUCTS AND TECHNOLOGIES, TO SELL THOSE GOODS IN CENTRAL AMERICA.

I WANT COLLEAGUES TO KNOW THAT I MET WITH A LOT OF THOSE COMPANIES AND THE GOVERNMENTS IN CENTRAL AMERICA, AND I WOULD LIKE TO SEE US BRING THEM TOGETHER.

THERE'S NO REASON WHY ENERGY PRODUCTION AND CONSERVATION PRODUCTS MADE IN OUR COUNTRY AND COMPUTERS AND CHIPS AND HEALTH CARE TECHNOLOGIES SHOULDN'T BE SOLD IN CENTRAL AMERICA WHEN THE GOVERNMENTS IN THAT PART OF THE WORLD ARE PREPARED TO MAKE MAJOR PURCHASES. LET'S DO MORE TO TRY TO MAKE SURE THAT THOSE PURCHASES COME FROM AMERICAN EXPORTERS RATHER THAN CHINESE EXPORTERS. I URGE COLLEAGUES TO SUPPORT THE AGREEMENT.