Opening Statement of the Hon. Sander M. Levin, M.C.,
Michigan
Hearing on Free Trade Deals: Is the United States
Losing Ground
as its Trading Partners Move Ahead?
March 29, 2001
- The issue is not whether there should be an expansion of world
trade. The question is how that expansion occurs. Globalization is
here to stay. The question is whether and how it should be shaped.
- That involves examining the role of bilateral, regional, and
multilateral agreements.
- That includes an examination of the increasing number of free trade
agreements, as we are doing today. This is necessary before we rush to
conclusions as to the interaction between bilateral, regional, and
multilateral agreements, and the actual impact of any of these types
of agreements on the U.S. economy.
- In this examination, we need to look not only at the number of
agreements, but beyond sheer numbers to their contents, including the
level and actual scope of trade covered by the agreements.
- I think we will find that many of these free trade agreements are
much less comprehensive than agreements such as the NAFTA. Indeed,
some may be vulnerable to challenge under Article XXIV of the GATT and
similar WTO rules. We should give serious consideration to bringing
challenges in appropriate cases.
- When it comes to the question of how
to shape expanded trade as we enter into more trade agreements of our
own, it is vital that we take account of the evolving nature and new
issues of trade. Trade policy is no longer just about tariffs and the
more glaring non-tariff barriers. It is also about labor standards,
environmental regulations, health regulations--among other issues--and
the impact these have on the terms of competition. These issues should
be included in fast track and in the agreements negotiated pursuant to
fast track.
- Finally, as I have said before, the best way to move ahead with
agreements on expanded trade is to proceed step by step.
- The first step seems clear. There is a free trade agreement that was
negotiated and signed last year and transmitted to Congress at the
beginning of this session.
- I am referring, of course, to the U.S.-Jordan Free Trade Agreement.
Legislation to implement that agreement was introduced in the Senate
yesterday and will be introduced in the House in the coming days and
should be acted upon expeditiously.
- With the King of Jordan visiting the United States next week, the
time is now to send a clear message that we intend to make the
U.S.-Jordan Free Trade Agreement operational as quickly as possible.