Committee on Ways and Means, Subcommittee on Trade, 7-17-01 Testimony

Opening Statement of the Hon. Sander M. Levin, a Representative in Congress from the State of Michigan

Hearing on Trade Agency Budget Authorizations and Other Customs Issues

July 17, 2001

Today we are here to discuss the budget authorizations for three federal agencies that, I believe, are critically important to the expansion of the U.S. economy and the functioning of U.S. trade policy and law enforcement. The U.S. International Trade Commission, the United States Trade Representative, and the U.S. Customs Service promote the expansion of U.S. export markets and protect our domestic workers and businesses from the perils of unfair trade and sudden import surges. I urge the subcommittee to support the work of these agencies, and recognize their importance to the U.S. economy, by approving in full their budget requests.

ITC

The United States International Trade Commission often stands between U.S. workers and the effects of unfair trade. In fact, the ITC is currently engaged in a number of antidumping and countervailing duty investigations dealing with unfairly traded steel. Additionally, the ITC has recently started a Section 201 investigation into the damaging level of steel imports in recent years. Their report is due out within the next few months, and represents just one example of the important work of the ITC.

USTR

The importance of the United States Trade Representative is not lost on this Subcommittee. The role that the USTR plays in expanding foreign markets for U.S. exports, maintaining the integrity of our trade laws, and ensuring that our trade partners live up to their international and bilateral obligations is critical to the health of our economy, and must be recognized by the Congress.

I do hope that Ambassador Allgeier will be able to provide us with additional information on the new positions created at USTR as part of the Clinton Administration's trade compliance initiative. In particular, I would also be interested in hearing how USTR will use the new positions to monitor China to ensure that it fulfills the commitments made as part of its WTO accession.

Customs

Strong congressional support for Customs will increase the agency's efficiency and vitality, lowering transaction costs, waiting periods and prices for U.S. importers and consumers. That is why I am urging the Subcommittee to approve the budget authorization for U.S. Customs, to support its efforts to increase efficiency--especially through the ACE program--and to address the issue of compensation in a rational and comprehensive manner.

The ACE program--or Automated Commercial Environment--is an effort to modernize the technology used by Customs officers as they monitor and regulate the flow of goods into our country. The current, outdated system is operating beyond capacity and appears to be reaching the end of its useful life. The pace at which the ACE upgrade may take place is contingent upon the level of funding provided by Congress.

Strong fiscal support will mean a more rapid increase in the efficiency of the Customs Service--a result that is positive for both taxpayers and consumers. Taxpayers will benefit by saving $130 million in annual life support that the current, antiquated system demands, and consumers will benefit as imports enter our markets more rapidly and at a lower cost.

As we consider modifying the compensation program for Customs officials, it is important that we address the payment system as a whole, avoiding the use of cosmetic measures that unfairly penalize one group of workers within the agency. In 1993, Congress passed legislation that overhauled the Customs payment program. The reforms reduced inefficiencies and the potential for abuse, and struck a balance between budget priorities and avoiding arbitrary salary cuts for Customs employees. Any solution to ongoing personnel issues should maintain the integrity of that balance by taking a comprehensive, not piecemeal, approach.

Conclusion

I do not need to remind the Subcommittee that it has been over ten years since the last passage of authorization for trade agencies. I find this to be a dangerous and unsettling abdication of Congressional input into the way in which our trade agencies use federal funds. It is my hope that this year will be different, but I fear that we are embarking on the same familiar path of disagreement and unproductive stalemate. Continuing to rehash the same arguments every year constitutes a disservice to our trade agencies and the public.

Once again, I would like to emphasize that piecemeal attempts to change the Customs payment system will create endless dissent within the Committee without opening the possibility for meaningful reform.

Mr. Chairman, I sincerely hope that we can agree on the need to reassert this Committee's voice in the appropriations debate, and pass the budget authorization requests for all three agencies.

Thank you.