I thank the chairman for yielding. Let me just thank the chairman for his leadership not only on the Rules Committee but for leading the bipartisan free-trade caucus and leading that effort in knowing and understanding the value of trade…
I thank the chairman for yielding.
Let me just thank the chairman for his leadership not only on the Rules Committee but for leading the bipartisan free-trade caucus and leading that effort in knowing and understanding the value of trade and the value of exports.
Mr. Speaker, this is a very important issue to Members. It is good to take time on the floor to talk about this because international trade, I will tell you, is a vital part of my economy, to Minnesota's Third Congressional District. The chairman just alluded to that. Statewide in Minnesota, global trade supports almost 750,000 jobs. That is a pretty big number. It is all about exports. It is about selling where 95 percent of the world's consumers are living outside of the United States. Despite our successful economic relationships with a lot of countries around the world--we have good agreements with Korea and Colombia and Panama--there is no doubt that a lot more can be done now. It really begins with passing this bipartisan Congressional Trade Priorities Act, which will renew and update Trade Promotion Authority.
Why is that important?
It is important so we can make headway and get forward momentum on the TPP and the TTIP negotiations. This ensures that we will accomplish several very, very important goals as a part of increasing transparency in trade negotiations and of empowering Congress, of empowering ourselves. This is why there is bipartisan support. It will specifically direct the administration to pursue congressional prerogatives through congressionally mandated negotiating objectives. It will establish very robust consultation and access to information requirements before, during, and after the negotiations so that we have a very open and transparent process with all Members of Congress and the public. More importantly, it also preserves the congressional prerogatives that are there, giving Congress the ability to vote and giving Congress the final approval to any trade agreements through procedures and providing an up-or-down vote, which is really critical. Our trading partners are certainly looking for that authority to move forward.
I want to commend the chairman, who has had a role in that legislation, the chairman of the Ways and Means Committee, as well as in the Senate, with bipartisan support in making sure the administration will be negotiating a deal that covers the issues that are most important in today's economy. The reason it is important, Mr. Speaker and others, is that this is not simply about focusing on tariffs. We always know that trade negotiations and agreements focus on tariffs. This is about import quotas and other nontraditional barriers to trade because the regular, traditional barriers are no
longer enough. This is about finding 21st century solutions to streamline trade and end these nontariff barriers so we can interconnect regulations across our borders and reduce foreign regulatory barriers to our exports.
You have got the Trans-Pacific Partnership, which, of course, my colleague from South Dakota spoke so eloquently on, in which we have got 11 countries participating with emerging markets. Yet the area of negotiation that I am most interested in right now is TTIP, the Transatlantic Trade and Investment Partnership, with our Atlantic friends. This is one of those opportunities, I think, as cochair of the TTIP Caucus, along with Congressmen Neal and Keating and Young, in which I want to make sure that the ongoing negotiations are going to move forward, because the transatlantic economy is our largest in the world. It is the most integrated in the world. It is 50 percent of the world's GDP. It is generating about $5 trillion in total commercial sales each year--30 percent of global trade. Mr. Speaker, those are big numbers as well, and we have known for years that a trade agreement between the United States and the European Union is the right thing to do.
I remember, back in the summer of 2012, I authored a bipartisan letter with 50 different Members of Congress bipartisanly supporting such an agreement. Then, last year, we had the launch of the Business Coalition for Transatlantic Trade. We had a chance to meet with our Ways and Means counterparts and introduce the resolution calling for swift action on TTIP. Then as I mentioned, earlier this month, we launched that TTIP Caucus, which is the chance to move forward, I think, significantly. I will tell you what it means to Minnesota: $4.5 billion in Minnesota goods are purchased by European countries right now; 42,200 Minnesota jobs are supported by European investment annually; if we pass TTIP, it is estimated that another 3,000 jobs are going to come on hand. This is about higher wages and a healthier economy, and that direct investment is absolutely going to be helping us right here at home.
These TTIP negotiations present a huge opportunity to tackle these nontariff barriers, as I mentioned earlier, such as regulations that will needlessly impact and increase the cost of trade between the U.S. and Europe right now. Yet everyone knows getting to this agreement is not going to be easy. There are some real differences between our economies and our continents, such as the way we approach regulation, but all indications are, it seems--and I think the chairman would agree--that the negotiators are moving full speed ahead. They want to continue to make progress towards a final agreement. The next round of negotiations is actually set to take place this next month, but we can't get there unless we pass the TPA.
Passing this Bipartisan Congressional Trade Priorities Act is going to make sure we are protecting intellectual property and that we are setting high standards. Other countries around the world are going to be forced to look at what the United States and the EU are doing, and then we can make sure that the bad actors are following our lead by setting those high standards.
So, Mr. Speaker and Mr. Chairman, I just want to commend you for hosting the time today, and I want to thank the chairman again for the opportunity to discuss trade and the Bipartisan Congressional Trade Priorities Act as well as the importance of trade to both of our States and to the entire country. I know it is important to Minnesota and to my economy back home.
Absolutely. I think you just pretty much laid it out. That is the way we do see this working. This is a win-win for the opportunities for our companies to engage in a healthier economy and to employ more people, but also for consumers to benefit on the other side.
I mean, I know that, without a doubt, South Korea, Panama, and Colombia were significant trade agreements and that they had been languishing on the sidelines for a long period of time, but with bipartisan support, we were able to pass them all. Now we have got a chance to show and prove that America is back on the playing field. We know the benefits of trade. I know, when I had a chance to visit South Korea, they spoke about the Costco in South Korea and about their interest in selling American goods and how that was the number one Costco in the world, essentially, after the free trade agreement because they want to buy American. This is about exporting. It creates more jobs at home; it keeps the innovation here at home; and it sells where the customers are.
We can't get to these agreements, though, unless we get this Trade Promotion Authority, which makes sure every Member of Congress is going to have a hand in seeing the negotiations process forward to the tune where we have not had that type of involvement among individual Members of Congress in the past. This is very important, I think, for Congress to exercise its congressional prerogative and, at the same time, to work in partnership with the administration in moving some very important initiatives forward.
Yes.
I should just mention here that the first trade agreement that really dealt with the opportunity to negotiate on medical devices specifically was the Korea free trade agreement, which recently passed. Medical devices is kind of near and dear to my heart because it is so prevalent in Minnesota. We have one of the strongest ecosystems in the medical device community in the country--in fact, in the world. These are high- valued manufactured products that are improving lives, that are saving lives, and there is a regulatory scheme that is often surrounding it, of course, making sure these devices are approved before they move forward.
We have the opportunity, I think, now, Mr. Chairman, with some of these trade agreements that are moving forward to not only negotiate the tariffs--making sure that these manufactured products are going to be available to others around the world and also lowering costs for our consumers--but also to know that the regulatory environment can be set up in a way that, if we have oversight committees--for instance, in the EU and in the United States and if we have got a device that is on track to be approved, say, by the FDA in the United States--we can make sure that, if our oversight committees agree on the other side of the continent, on the other side of the Atlantic, that they can sign off on it. So
you save a tremendous amount of time in moving forward and in having those goods be available pretty quickly to a lot of consumers around the world, which is going to help, again, the economy; it is going to grow jobs; and it is going to help patient care around the world. That is one area in particular that Minnesota will and has benefited.
This is an area, I think, in which the United States really stands out and shines. If anything, we are known for our innovation. It is really part of our DNA in terms of having a patent system that protects intellectual property, the rule of law. There are many other countries around the world that don't have those same standards, and that is where the benefit of trade agreements can help bring in high-standard agreements. It is so that other countries can be forced to follow these agreements.
Intellectual property protects the ideas. That protects the innovation. That protects the invention and the dreamers who are coming up with all of these ideas, and that is critical. There are some countries that are lagging behind. We have had frustrations, I know recently, with China by which they have targeted U.S. information technology. They have targeted renewable energy, and they have targeted biopharmaceuticals and other products for the express purpose of creating local production opportunities for Indian companies, for instance, and that is a violation of intellectual property in many respects.
Having these trade negotiations is going to ensure that we can keep that conversation moving forward and having those high standards. It is going to protect our jobs here at home for the dreamers, the thinkers, and the folks who create and innovate these new ideas and these new products.
And so, when you have unfair and you have harmful practices that are happening in other countries--maybe it is India, maybe it is China-- that is ultimately going to damage the long-term health of the economic health of both of our economies when we are having that type of a situation.
Well, Mr. Chairman, I think what you are alluding to is that fact that America can compete and win at any level if we are on a level playing field. If the rules are even, if the rules of the game are set the same, Americans can compete and win. That is, again, going to help improve our economy, help grow jobs here at home.
In terms of American exceptionalism, there is no doubt that, when you have got a free flow of goods going across borders, it is going to help our foreign policy, it is going to help us lead from a position of strength. There is someone who famously said at one time:
If goods are not crossing borders, guns will.
Having that trade connection is very, very important. It helps us have diplomatic conversations. It helps us, as America, lead the rest of the world, showing that we are strong, we are leading out front.
Again, if you have two pretty significant trade agreement opportunities being negotiated right now, coming close to conclusion, I think we can wrap those up within the year, if we pass Trade Promotion Authority, both in the Trans-Pacific Partnership and with the TTIP negotiations going on in Europe; and that will cover, by and large, two-thirds of the economy in the world, and all the other countries will follow our lead.
This is a huge opportunity, as the chairman knows, for our companies and our economy back home.