Providing for consideration of the bill (H.R. 4340) to implement the United States-Bahrain Free Trade Agreement.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I am pleased to rise today in support of the U.S.- Bahrain Free Trade Agreement. This agreement reflects a bipartisan effort to make a deal that is worthy of broad support both in terms of the process used and the substance of the agreement.

I want to thank the gentleman from Florida (Mr. Shaw) for his help in this agreement. I want to thank the gentleman from Wisconsin (Mr. Ryan) for his persistence in keeping us focused on getting this agreement completed this year. I want to thank the gentleman from New York (Mr. Rangel) for his help with the USTR and with the administration in pointing out the importance of making some additional changes. I thank the gentleman from Michigan (Mr. Levin) for his contributions in regards to this bill.

As you know, Mr. Speaker, Congress uses an expedited process when it considers trade agreements. As a result, Congress gives up a lot of its prerogatives, and it is absolutely critical that in giving up these prerogatives that the administration consult and work very closely with the Members of Congress on both sides of the aisle in negotiating, entering into, and submitting to Congress the implementing legislation.

Well, in regards to the U.S.-Bahrainian agreement, much of the work was done prior to the beginning of this year; and, quite frankly, there was not as close a relationship with Congress as I wanted to see. There were things that were not complete then when the agreement itself had been finished. But thanks to Ambassador Portman, thanks to the help from the majority side, we were able to continue consultation with Congress on both sides of the aisle prior to the submission of the implementing legislation.

As a result, we now have an agreement that incorporates the important provisions that deal with worker rights as well as dealing with the issue of the boycott against Israel; and I want to compliment the process and the manner in which we have been able to complete this agreement.

On substance, the U.S.-Bahrain Free Trade Agreement is a good agreement for several reasons. First, the agreement provides substantial market access for U.S. service providers, immediate duty- free treatment for all currently traded consumer and industrial products, and duty-free treatment of nearly all U.S. agricultural exports.

This is a good model for other agreements in the region and around the world.

Second, Bahrain has taken truly historic steps by disavowing all aspects of the Arab League boycott against Israel. Not only the primary, but the secondary and tertiary boycotts. This should be the template that we use in all negotiations and free trade agreements in that region. That is exactly what the United States should be demanding.

The third reason why this is a good agreement is that Bahrain has adopted major reforms in its labor code and is committed to making further reforms. In 2002 Bahrain enacted legislation that for the first time gave workers in Bahrain the right to belong to trade unions and to strike.

Last month in an exchange of letters with the United States Government, the government of Bahrain made several additional commitments that would ensure its laws are in full compliance with basic international standards.

Mr. Speaker, let me just point out that the process we use is that we identified certain weaknesses in the operation of the Bahrainian reform laws as it related to workers' rights. Bahrain now is committed by letter and interpretation to comply fully with the ILO standards in four of those areas. There are two additional areas that really require consultation with the union because they only have a single union, and under ILO standards they need to have multiple unions and need legislation to be enacted.

Bahrain had filed earlier this week two of those laws to make it clear that it is not only going to be the manner in which the government enforces the laws, but the underlying laws themselves will be in compliance with ILO standards. We also are permitted under this agreement to use the agreement in the event that we believe that they have not carried out their commitment. So this does reflect what we should be doing on workers' rights.

We can consider a matter arising under the FTA labor chapter if in fact Bahrain does not carry out its commitments as spelled out in the exchange of letters. This will allow the United States to initiate formal consultation with Bahrain on these commitments on the procedures outlined in article 15.6 of the agreement.

Finally, the USTR is committed to report periodically to Congress on Bahrain's fulfillment of its labor commitments. The USTR is further prepared to invoke article 15.6 procedures if Bahrain fails to carry out any of these commitments.

Mr. Speaker, I would note that the Bahrainian actions stand in contrast to some of the CAFTA countries that actually weakened or proposed weakening their laws after the CAFTA agreement was signed. Unlike the CAFTA countries, Bahrain is a country that is heading in the right direction with regards to labor reforms.

For all of these reasons and for the reasons that have been outlined by my colleagues, I would urge my colleagues to support this agreement. It opens up a market in a very important part of the world. It offers us a template for moving forward in the Middle East by using economics to bring peace and prosperity to that region, which is clearly in the interest of the United States.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I am pleased to yield 7 minutes to my colleague from Michigan (Mr. Levin) who has been one of the leading members of the Ways and Means Committee and the Trade Subcommittee on insisting that trade agreements include protection for workers' rights.

(Mr. LEVIN asked and was given permission to revise and extend his remarks.)

Mr. Speaker, let me just remind my colleagues that we are talking about a free trade agreement with Bahrain, a country whose size is about the same as the city of Austin, Texas, and of course a very important country within the Middle East.

Mr. Speaker, I am now pleased to yield 2 minutes to the gentleman from New York (Mr. Meeks).

Mr. Speaker, I am pleased to yield 3 minutes to the gentlewoman from Texas (Ms. Jackson-Lee).

(Ms. JACKSON-LEE of Texas asked and was given permission to revise and extend her remarks.)

Mr. Speaker, I yield myself the balance of my time.

Mr. Speaker, let me thank all of my colleagues who participated in this debate. Let me, once again, remind those who are following this debate that we are talking about a free trade agreement with Bahrain, a country which is about the same size as the city of Austin, whose total trade with the United States is measured in terms of a couple hundred million dollars. It is a country with a high standard of living for that region whose economy produces $19,000 plus per capita of GDP, which is about 4 times higher than we had in dealing with the CAFTA countries. It is also a country that imports labor and helps actually the economy of the region because of its economic opportunities.

I mention that so we can put this agreement in context. Many of my colleagues who have spoken of concern have talked about concern on economic policies related to trade here in the United States, and I join them on many occasions, particularly as they are referring to problems that we are having with trading partners. But that is not the issue that we have before us today.

The issue we have before us today is an agreement with a single country, Bahrain. One issue that we need to be concerned about is whether this agreement will not only advance the traditional barriers to trade by eliminating them, such as tariffs and some of the nontariff barriers, but how does it deal with issues that are becoming more important, such as workers' rights.

On the traditional barriers of tariff and nontariff issues, I have not heard

any debate against this agreement. This agreement, in fact, removes barriers so that U.S. companies and U.S. manufacturers and U.S. farmers will have greater access to the market of Bahrain.

In regards to workers' rights, I agree with my colleagues that have spoken of concern about trade agreements. I think it is time that we graduate international labor standards to core provisions within the trade agreements, and that we have enforcement within the trade agreements.

But I think in judging Bahrain, we need to use the standard that we have used, and that is, does this Nation measure up to international labor standards. The answer to that question is yes. They have passed major reform in 2002. They have acknowledged the difficulties with those laws that need to be changed. They have issued interpretations to comply with ILO standards and have introduced laws that will correct the additional standards, and they have agreed to allow us to use the trade agreement to make sure that in fact these new laws are not only passed, but in fact, Bahrain is living up to ILO standards.

That to me is good faith with an ally, and one in which we can move forward and should move forward. So I think Bahrain has passed the test on an agreement that we should support, but at times there is more than just the economic issues that affect our country that we should be looking at whether we move forward with bilateral regional trade agreements.

In Bahrain's case, I think the evidence is overwhelming. We need to expand opportunities in the Middle East. The best chance for peace in the Middle East is if we can open up the economic opportunities of that region, and Bahrain offers us a country that has stepped forward and offered leadership. In repealing the boycott against Israel and saying that it wants to have open trade in the region, they will now be the fourth nation in that region that we will have a free trade agreement with. We have Jordan, Israel and Morocco. So this represents an opportunity to advance U.S. interest in stabilizing a region of the world that has been of major interest to the United States.

So for all these reasons, this agreement with a very small country that will have minimum impact on the economic activities of this country, I think it will be positive, but it will be minimum because of the size of the country, but represents progress as to how we should evaluate trading relations with other partners. Are they willing to remove barriers? Are they willing to respect international labor rights? Are they willing to be a good neighbor in the region to advance peace and stability? In each of these instances, Bahrain passes this test, and I urge my colleagues to support this agreement.

Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, pursuant to House Resolution 583, I call up the bill (H.R. 4340) to implement the United States-Bahrain Free Trade Agreement, and ask for its immediate consideration.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, today the House considers the United States-Bahrain Free Trade Agreement Implementation Act. I am pleased my friend and ranking member of the Trade Subcommittee (Mr. Cardin), as well as Mr. Rangel, has joined me in supporting this agreement. It is tremendously important that our trade agenda remain on track and that we seek bipartisan support in accomplishing this goal.

The administration has publicly stated its commitment to the Middle East free trade area by the year 2013.

This agreement takes a key step in moving towards this goal. Political and economic progress continue to take shape in the Middle East. And by approving this agreement, the United States shows its support for our ally, Bahrain, and for the ideal of promoting open markets with leading reforms.

The Office of the United States Trade Representative has negotiated an agreement that, in my view, will serve as a model for the region. Upon implementation, all bilateral trade and consumer and industrial products will become duty free. All agricultural products are covered by the agreement. It will allow for immediate duty-free access for United States agricultural exports in 98 percent of the agricultural categories with a few remaining categories phased out over the next 10 years

In addition, the commitments to this agreement relating to services are the strongest in any United States free trade agreement to date. Finally, I want to recognize the actions taken by Bahrain to eliminate all aspects of the Arab League boycott of the State of Israel.

Bahrain took the commendable step of writing to Ambassador Portman to reiterate its commitment on this issue. Bahrain has ended the secondary and tertiary aspects of the boycott, dismantled all aspects of the primary boycott, and is fully committed to complying with World Trade Organization requirements.

In addition to these actions by Bahrain, I am also pleased with the commitment that the U.S. Trade Representative made to me during the committee's consideration of this agreement to report annually on the status of the Arab League boycott and efforts to dismantle it in Bahrain and all other countries where it has been applied.

Mr. Speaker, I submit for printing in the Record a letter from Bahrain's finance minister to Ambassador Portman relating to this issue.

Kingdom of Bahrain, Ministry of Finance, Minister's

Office,

September 5, 2005.

Hon. Robert Portman,

U.S. Trade Representative,

Washington, DC.

Dear Ambassador Portman: Please accept my congratulations

on your recent appointment to serve as the U.S. Trade

Representatives. I look forward to meeting with you

soon to discuss our mutual interest in strengthening trade

relations between the Kingdom of Bahrain and the United

States.

It has come to my attention that questions have arisen

regarding any secondary and tertiary boycotts related to

Israel.

Following a decision of the Arab League in 1963 and prior

to Bahrain's independence, the Bahrain government issued Law

No. 5 of 1963 (Finance) which established the Boycott of

Israel Office.

In 1994, the Kingdom of Bahrain eliminated all aspects of

secondary and tertiary boycotts which extended to businesses

which had relations with Israeli companies and businesses.

Attached please find a copy of the memorandum recently sent

to all Bahrain Ministries reminding them that the secondary

and tertiary boycotts are null and void.

In the hope of advancing peace and regional cooperation,

the Kingdom of Bahrain recognizes the need to dismantle the

primary Boycott of Israel and is beginning efforts to achieve

that goal.

As founding members of the World Trade Organization (WTO),

the Kingdom of Bahrain is fully committed to complying with

WTO requirements. Bahrain has no restrictions whatsoever on

American companies trading with Bahrain or doing business in

Bahrain, regardless of its ownership or relations with

Israeli companies.

Finally, it is Bahrain's sincerest hope that our Free Trade

Agreement with the United States will enhance efforts to

achieve a real and lasting peace in the Middle East.

Yours sincerely,

Ahmed bin Mohammed Al Khalifa,

Minister of Finance.

Mr. Speaker, the United States needs allies in the Middle East. Bahrain has stepped up to the plate in so many ways. Let me state them. As the home of our United States Navy's 5th Fleet, as a key ally in the war on terror, and by promoting an open and transparent market that will benefit our overall bilateral relationship.

Open and free trade with Bahrain will prove beneficial, both in the short run, and especially over time. We will witness a Nation leading a region of the world towards openness with the United States and doing it through trade.

Through these ties, I firmly believe that this agreement will advance the development of Democratic principles throughout that region.

Mr. Speaker, I thank my Ways and Means colleagues for moving this agreement to the floor for today's consideration. I especially want to recognize the efforts of the gentleman from Wisconsin (Mr. Ryan) and the gentleman from New York (Mr. Meeks) for their commitment to seeing a United States-Bahrain free trade agreement come to fruition.

As co-chairs of the U.S.-Bahrain Congressional Caucus, they educated and provided key information to Members and staff in anticipation of this floor vote. I want to thank them publicly for their efforts.

Mr. Speaker, the agreement before us today is right for America for economic and strategic reasons. We must ensure that we support our allies in the Middle East. By opening markets, we empower people to reap the benefits of economic freedom.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I yield such time as he may consume to the gentleman from Wisconsin (Mr. Ryan) who I referred to in my opening remarks, a member of the Ways and Means Committee.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, the gentleman from California (Mr. Stark) mentioned that we were trying to reward our friends in some way. And we hear from the gentleman who just left the well about CAFTA and going back and rehashing CAFTA, talking about votes in the middle of the night.

I would like to pose this question: What is wrong with trying to reward our friends? That is who we want to promote business with is our friends. There is nothing in the world wrong with that and we should do that.

I would also like to point out when he was talking about votes in the middle of the night, it is now 3:40 Eastern Standard Time, the sun is shining brightly, and it is a beautiful day.

Mr. Speaker, I yield 2 minutes to the gentlewoman from Florida (Ms. Ros-Lehtinen) who is the chairman of the Subcommittee on the Middle East and Asia.

Mr. Speaker, I yield myself such time as I may consume.

In quick response to the gentleman from Vermont, our economy is growing jobs at the rate of about 200,000 a month. Productivity is higher than it has ever been. Our economy is the fastest growing economy at 4.3 percent per year. The economy is strong in the United States. Unemployment figures are down below 5 percent.

It is lower than it was in any of the previous decades. Our economy is strong and it is growing, and it is growing because of the type of legislation that we are passing. We cannot be protectionists and retain the strong economy that we have in a world that is going free trade.

You may not like free trade, but the world is going free trade. And if we are going to compete in the global economy, we need to move towards free trade, and we need to be careful in negotiating these agreements one after the other.

Mr. Speaker, I now happily yield such time as he may consume to the gentleman from California (Mr. Dreier), the chairman of the Rules Committee.

(Mr. DREIER asked and was given permission to revise and extend his remarks.)

Mr. Speaker, will the gentleman yield?

Mr. Speaker, I want to add another provision there, that over the last 3 years, hourly wages have increased in the United States by 8 percent. So a lot of this stuff we have heard is absolutely false.

Mr. Speaker, I yield 2 minutes to the distinguished gentleman from Texas (Mr. Hensarling).

Mr. Speaker, I yield such time as he may consume to the gentleman from Wisconsin (Mr. Ryan).

Mr. Speaker, I yield myself the balance of my time.

Mr. Speaker, I would also like to associate myself with the remarks of the gentleman from Maryland. I think he spoke quite eloquently about the importance of this agreement to the region.

When the history of the Middle East is written, I think the historians will view this trade bill as an important stepping stone towards the development and imposition of democracies and stability in that part of the world, which is very much in our best interest.

Bahrain has been a great ally through many, many years of troubling times, and times when it was not necessarily easy to be friends with the United States if you are in the Middle East and if you are an Arab country. But they have stood with us. Our Naval base there is quite important. I think it is important that we try to do everything we can to do business with our friends. They have proven to be a great friend of the United States.

We have visited with the ambassador from Bahrain who is a delightful man who is a great salesman for his country. I believe that this is a significant vote. This is not just a flea on an elephant, as Mr. Stark stated. This is an important ally in which we are going to have a free trade agreement. I would urge all Members to vote yes on this most important issue, because I think a message must be sent out loud and strong that we are supporting free trade when we have a good agreement drawn. This has been drawn and approved in a bipartisan way. This is good for the United States. It is not only good for Bahrain, but it is good for the United States.

I would also like to thank Mr. Cardin, Mr. Rangel and other Members from the other side of the aisle, as well as Mr. Ryan and Chairman Thomas, and all of those who have worked hard to bring this along, and of course staff on both sides of the aisle. Congress cannot operate without staff, and I would like to thank them for what they have done in putting this agreement together.

Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, on that I demand the yeas and nays.

Mr. Speaker, the House of Representatives is today considering a proposed free trade agreement between the United States and Bahrain. I support this agreement, and will vote in favor of the required implementing legislation. I also anticipate this agreement will enjoy strong bipartisan support in Congress.

In general, I have advocated free trade and open markets because I believe that American businesses and workers can compete and win in the global economy. Furthermore, I believe that increasing global interdependence presents our Nation with an opportunity to promote democratic reform, the rule of law and respect for basic human rights.

The agreement provides that all bilateral trade in consumer and industrial products will become duty-free immediately, as will 98 percent of U.S. agricultural exports, with the remaining tariffs phased out over 10 years. Textiles and apparel trade will also become duty free immediately for products that contain American or Bahraini yarn.

Key U.S. service sectors that will benefit under the agreement include audiovisual, express delivery, telecommunications, computer and related services, distribution, healthcare, services incidental to mining, construction, architecture and engineering. Furthermore, on the issue of intellectual property rights, the Agreement requires each government to criminalize end-user piracy, providing strong deterrence against piracy and counterfeiting.

Beyond the economic benefits that will accrue to the United States, this agreement is an important opportunity to bring increased development, prosperity and stability to a key ally and strategic partner in the region. Not only has Bahrain supported and participated in Operations Enduring Freedom and Iraqi Freedom, as well as the first Persian Gulf War in 1991, the country has also served as the host to U.S. Naval forces in the Middle East for more than 50 years. This free trade agreement will further strengthen the already close US.-Bahrain relationship.

I have and will continue to support free trade agreements that strike the balance of expanding markets for American companies, while also providing a level playing field for American workers and improved living and working conditions for foreign workers by guaranteeing fair wages and basic workplace protections abroad. I am confident that these goals will be met with respect to Bahrain, in part thanks to a number of labor reforms that have been recently implemented by the government.

I will consider future trade agreements one at a time, taking into consideration the specific labor and environmental conditions that exist in the countries we seek to trade with, as well as the provisions included in the agreements to protect workers--both here and in the other countries--and environmental concerns. I will determine my position as those agreements are finalized.

Mr. CROWLEY, Mr. Speaker, I rise today in strong support of the United States Bahrain Free Trade Agreement.

As the Co Chair of the Caucus on Bahrain with my good friend from Wisconsin Mr. Ryan, we have worked closely to make today reality.

Bahrain has been a close friend of the United States for over 100 years and this agreement is taking us to a new level in our friendship.

This friendship is built on trust and respect for each other, so much so that the US Navy's Fifth Fleet operates in Bahrain, a friendly and secure environment for the fleet that watches over a dangerous region.

Bahrain continues to lead all gulf nations in political and economic reforms.

They have taken the bold step by rescinding its economic boycott of Israel. This lays the foundation for an economic relationship with Israel that will help develop both Bahrain and the entire gulf region.

Bahrain conducted its first national legislative elections in over 25 years, electing 40 members to the Representatives Council.

Women were not only allowed to vote, they also became the first women in the Gulf to run as candidates in national elections.

Bahrain is making the necessary changes by amending all provisions of its labor laws that so they are fully compliant with the International Labor Organization (ILO).

I would like to commend Ambassador Naser Al Belooshi for the fine work he has done to iron out some of the labor issues that had held this agreement up.

The Ambassador working with the Finance Minister showed great poise and determination to meet the labor requirements that Democrats pushed for before we would support this agreement.

The strong labor provisions that Bahrain has agreed to will help U.S. business thrive in Bahrain

This agreement provides market access for U.S. industrial, agricultural, and consumer products.

The agreement will greatly benefit the services sector and provide U.S. companies with the highest degree of access to service markets of any U.S. FTA to date.

Financial service companies will have the right to establish subsidiaries, branches, and joint ventures in Bahrain. Health and life insurance companies will have market access once this agreement is enacted.

This agreement is the first step in the political and economic reforms for the Middle East and I strongly believe the U.S. should continue to work with moderate Arab nations such as Bahrain to help balance out some of the more extreme elements in today's Middle East.

Mr. Speaker, I support this agreement and urge all of my colleagues to vote for this bill.

Mr. OXLEY, Mr. Speaker, I rise in support of the free trade agreement between the United States and Bahrain, a country which is and seeks to increase its stature as the 3leading financial center for the Middle East. As chairman of the Financial Services Committee, I want to focus on the benefits to American financial services and economic interests from this agreement.

Mr. Speaker, as you know, the United States runs a large and growing trade surplus in the services sector. It was $55.9 billion in 2002 and $96.1 billion in 2003. As the most innovative and competitive country in the world, the United States has a strategic interest in fostering greater opportunities for our financial firms, consultants, accountants, and other high-end service professionals to export their services and products worldwide.

This is not a zero-sum game. The knowledge transfer from increased American exports of financial and other related services will help people in other countries develop more efficient and economically valuable capabilities, fostering economic growth abroad as well as an increased customer base for American goods and services. The multiplier effect associated with increased access to capital for foreign firms is also significant. To the extent that capital formation abroad also encourages growth of stock and bond markets, free trade in financial services can provide good working experience for how decisions can be taken through transparent decision-making processes which are the hallmarks of democracy.

This free trade agreement with the leading financial center in the Middle East will substantially open financial services markets in the region for American firms. At a time when high oil prices are generating large pools of capital in the Middle East, we have a strategic interest in making it easier for American financial firms to provide their intermediation services in the region. We also have a strategic Interest in making it easier for Middle East investors to become more integrated into the global economy.

Bahrain is also a valued ally in our fight against terrorist financing. It has demonstrated a strong commitment to cooperate with the U.S. on these issues. Bahrain's anti-money laundering law, passed in 2001, makes money laundering an extraditable offense. It has a ``know-your-customer'' standard and requires all financial institution employees to take a course annually on how to implement this law. In addition, Bahrain hosts the newly created Middle East and North Africa Financial Action Task Force, which is the key multilateral group that creates standards throughout the region to fight terrorist financing and money laundering.

Mr. Speaker, I rise in strong support of this agreement, and I want to begin by extending my congratulations to the distinguished chairman of the Trade Subcommittee for his fine work on this effort and to thank him along with my friend from Wisconsin and my friend from Texas, both of whom are here on the floor and who worked closely with us, with our working group, to promote the issue of trade.

My friend from Florida is absolutely right, if we do not shape the global economy, we will be shaped by it. The world is moving dramatically towards breaking down barriers, understanding that the free flow of goods and services and products and ideas is absolutely essential, and I believe that we must do everything that we possibly can to expand that.

Now, Mr. Speaker, we have put into place over the past several years, under Democrats and Republicans as Presidents, a wide range of trade agreements. We have, since we put Trade Promotion Authority back into place, been able to see the expansion of the North American Free Trade Agreement.

And by the way, if you look at the trade relationship between Mexico and the United States today, there is a third of $1 trillion in cross- border trade between Mexico and the United States. The middle-class population in Mexico is larger than the entire Canadian population. And so focusing on these issues is very important if we are going to deal with questions like the one we are going to address next week, illegal immigration, to try to enhance the economies of these developing nations. We want people who are struggling to get on to the first rung of the economic ladder, and that is what these trade agreements are about when it comes to their relationship.

Now, let us look at what these trade agreements mean to U.S. workers. As my friend from Florida just said, last month 215,000 new jobs were created. If we look at the last few years, at the last 4 years, we have seen 4.5 million new jobs created. In fact, Mr. Speaker, I will say that there are more people working in the United States of America today than we have ever seen working.

Although we have limited time here, I will happily yield to the gentleman from Vermont.

Reclaiming my time, I will respond to that question.

The gentleman posed the question, and I am happy to respond to that question, and then I will continue with my statement.

On average, jobs that are focused on exports into new markets, which is exactly what these agreements are all about, exactly what these agreements are all about, on average, these jobs focused on exports pay about 17 percent higher wage rates than those that are focused on jobs that are merely designed for domestic consumption here.

If I could reclaim my time, let me just say that it is fascinating to listen to my friends on the other side of the aisle who, when we were in the midst of our debate just a few minutes ago on the alternative

minimum tax, they were very strong proponents of making sure we bring about reform so that people who are in that wage rate that goes all the way up to $342,000 a year get relief under the AMT.

So I believe that if you look at the jobs that have been created, if you look at the wage rates that we have right now in the United States, if you look at the standard of living in the United States of America juxtaposed to other countries in the world, it is very clear that the United States of America is the single greatest Nation on the face of the Earth, and it is in large part due to the fact that we have over the last several years put together a wide range of trade agreements. And I would argue that building on the Central American Free Trade Agreement, this Bahrain trade agreement, which is what we are talking about at this moment, I believe is very, very critical to continuing that kind of growth.

Now, let us look at the issue of the global war on terror. My friend from Wisconsin raised that. Now, one of the things that is essential as we seek our opportunity to try and turn the corner on the threat of terrorism, we need to focus on economic growth throughout the Middle East. A former Defense Department official said to me when we were talking about the aftermath of September 11, 2001, that if we had seen a percentage point or two more growth in Afghanistan and Pakistan, we might have been able to diminish the threat of September 11. Why? Because there is a sense that somehow those involved in international terrorism are simply doing this in the name of Allah.

All one needs to do is look at what Mohammed Atta and his cronies were doing before perpetuating the most heinous act on our soil on September 11 of 2001. It is not as if they were worshipping Allah. I recall their being in south Florida and Las Vegas, Nevada, leading up to that; meaning the focus on economic opportunity is something that we need to realize can help diminish that kind of terrorist threat there. And that is a very important part of what this agreement is about. Now, I have to say that realizing that the rule of law, the expansion of parliamentary elections, all of those kinds of things which can help diminish that kind of threat are critical, and that is a very important part of this agreement.

So as I listen to my friends on the other side of the aisle, and I am happy to say this agreement is enjoying strong bipartisan support, but as I listen to those on the other side of the aisle who are opposed to this agreement, it is very unfortunate that so many of them do not recognize the tremendous growth that my friend from Florida, the chairman of the Trade Subcommittee, just went through: the 4.3 percent GDP growth, a 5 percent unemployment rate, 215,000 jobs created last month alone in the aftermath of Hurricane Katrina, and all of the other challenges that we faced, that these have come about in large part due to the trade agreements that we have put into place. And why? Because we are opening up new markets around the world. And I thank my friend very much.

I yield to the gentleman from Florida.

Mr. Speaker, I thank my friend for that contribution, showing, as I said, that the standard of living in the United States of America is strong.

And the President has put it very well: we are never going to be satisfied until every American who wants a job has a job. We must continue to do everything possible to ensure that that happens, and that again is what this agreement is about.

Ninety-four percent of the world's consumers are outside of our borders, Mr. Speaker. So I believe we must do everything we can to pry open those markets, because the world has access to the U.S. consumer market, and that is a good thing; but what we need to do is gain more and more access to their markets.

So this is a win-win all the way down the line. This is a continuation of what we have seen of the DRCAFTA agreement, the NAFTA agreement, and others that are creating great opportunity for U.S. workers and consumers alike.

And I want to say in conclusion that I am very, very grateful that through this agreement we are getting us back to this notion of bipartisanship, because it is not a Republican or Democratic issue. Trade is an issue that should see the support of Republicans and Democrats. We are happy to provide the lead, but every Democrat who wants to jump on board in support of the cause of free trade is more than welcome, and I am happy the Democrats are understanding the critical importance of this effort.

Mr. Speaker, I thank the chairman for yielding, and

for his hard work on this. Also I want to start off, Mr. Speaker, by thanking the Democrats on the committee for working so hard and diligently with us.

This is a bipartisan bill. This is a bipartisan trade agreement. We will see votes from a lot of Democrats and a lot of Republicans when this comes to a vote. Why is that? Mr. Speaker, I think this is a very important step in the right direction for our country. This is a very important precedent-making event. What we are accomplishing here is the first trade agreement in this region since the 9/11 Commission published their findings, since we launched the Middle East Free Trade Area Initiative, since 9/11.

Now, let us just say it is controversial what our country is doing in Iraq. I think it is safe to say that. That is a part of our war on terror, has controversy. Well, what are we trying to accomplish there? We believe that freedom and democracy are the best ultimate tools in the war on terrorism. We believe that our children and grandchildren will be more safe and secure here in America and around the world, if other people are free, if other people have the ability to determine their own destiny and their own futures.

What does this have to do with that? A trade agreement with the United States with these countries, with Bahrain, in particular, helps secure that future. By seeing the leadership of Bahrain, the first country in the Gulf to do this, gravitating and taking the leadership, for rule of law, transparency in its legislature, changing its government to a constitutional monarchy, having a directly representative parliament, giving women the right to vote, given women elected positions in government, giving woman elected positions in the ministry, in the cabinet level, having the rule of law, having transparency, all of those things are the necessary and key foundations and building blocks to freedom and democracy.

That is ultimately how we win against the war on terrorism. This is the way we do it on a bipartisan basis. This is the opportunity for Republicans and Democrats to go forward with one voice, one face, one message as Americans going overseas, going forward confidently to win the war on terror and help encourage the spread of freedom and democracy. That is why this is an important trade agreement.

Is Bahrain significant from an economic value? It is a small country relative to other economic trade partners. Is this trade agreement in and of itself a good deal for us? Absolutely. Zero tariffs on manufactured goods. Zero tariffs on our agricultural goods. Fair trade rules. This agreement improves labor standards.

The Bahrainees have already shown leadership in their region in this area. In 2000, they passed a very sweeping labor reform law. They have since committed to passing even more sweeping labor reform laws. So we are already seeing tremendous progress being made. This is a country, Mr. Speaker, that has really shown leadership in this region against the grain, against pressure from their neighbors across the causeway in Saudi Arabia and elsewhere in the Gulf.

This is a country that has been our friend and ally for over 100 years, that has hosted our 5th Fleet naval base from which we do all of our Naval operations in the Iraqi theatre, in the Afghani theatre, come from Bahrain, from our 5th Fleet.

This is a country that has stood with the United States through thick and then in helping us stop money laundering for terrorists, in helping us with our military, in standing with us for democracy in the Middle East. It is an important ally. It is an ally that has done a lot, that has shown leadership, that has risked a lot to stand with us for democracy and freedom, that is gravitating towards these kinds of reforms.

The vision that this trade agreement represents, Mr. Speaker, is a vision of spreading trade, free markets, capitalism and democracy and freedom throughout the greater Middle East. This is the road map to the future of the Middle East.

And that is why it is so important. This is a bipartisan movement. That is why I just want to say one more time how thankful I am to the ranking member of the Ways and Means Committee, the gentleman from New York (Mr. Rangel) for working very hard to meet this agreement, and the gentleman from Maryland (Mr. Cardin) as well, for working hard to meet this agreement so that we can stand here today as Republicans and Democrats in favor of this very important trade agreement.

Mr. Speaker, we have heard throughout this debate a lot of reference to the trade deficit. I think it is important to look at that. When you look at our Nation's trade deficit, we enjoy a very large surplus in services, and our trade deficit comes from a trade deficit in manufactured goods.

Mr. Speaker, according to the latest statistics, 94 percent of our trade deficit comes from countries we do not have a free trade agreement with. A free trade agreement like this agreement helps us get fair trade rule so we can trade honestly with each other; and, yes, get an advantage so we can create more jobs, send more exports, and have better paying jobs here at home. I will just repeat that statistic one more time: 94 percent of our manufactured good trade deficit comes from countries we do not have a trade agreement with.

But it is more than that. Trade combines people. What is important about this agreement is beyond the economic value which is very substantial. It is about the human value.

You see, Mr. Speaker, we have good relations between our governments. Our 5th Fleet is located in Bahrain. We have great relations between our diplomats and the Bahrainees, between our President and the emir.

What this agreement proposes to do is put American people in contact with Bahrainee people, put Americans in contact with Muslims, put Americans in contact with Arabs in the Gulf so we can better understand each other. Trade is about individuals combining to join in mutually beneficial behavior and activity and business arrangements, to help their families and help create jobs and grow their economies.

But more than that, trade will help our people better understand the people we do not understand as well. We need a better understanding of people in the Arab world. We need a better understanding of Muslims. This is important because of the climate we face in the world. That is why it is important that we pass this agreement so that the American people can join and bond in friendship with the Bahrainee people in the Gulf Coast in the Middle East so we can have a better understanding of each other. As we understand each other better, we can better secure peace and security for our children.