Madam Speaker, I move to suspend the rules and pass the bill (H.R. 5264) to extend certain trade preference programs, and for other purposes, as amended. Madam Speaker, I yield myself such time as I may consume. I rise today in support of…
Madam Speaker, I move to suspend the rules and pass the bill (H.R. 5264) to extend certain trade preference programs, and for other purposes, as amended.
Madam Speaker, I yield myself such time as I may consume.
I rise today in support of extending the Andean Trade Preference Act, which provides duty-free treatment to certain exports from Bolivia, Colombia, Ecuador, and Peru.
The ATPA program is a program that has been working. It has benefited the region by providing much-needed economic development to these four countries. There is also some evidence that it has helped create some alternatives to the illegal drug trade.
Importantly, and I emphasize this, this has all been accomplished in a way that is more complementary than it is competitive; so there have been economic benefits for the four nations and for our Nation. In fact, if you exclude oil and oil products, the U.S. has a trade surplus with the region. We export about $13 billion to these four countries, and they export about $11 billion to us.
Beyond the numbers, the composition of the trade is also complementary. With agriculture, it's the seasonal nature of the trade. Crops from these countries tend to be imported when the U.S. crops they compete with are not in season.
It's also complementary in textiles and apparel trade. Under ATPA the U.S. textile industry ships U.S. yarns and fabrics to the region, and they export to us apparel made with those U.S. inputs. In fact, U.S. exports of yarn and fabric to the region were $111 million in 2007, up from $58 million in 2002. The only apparel that comes in duty free that is not made with U.S. yarn and fabrics is made with materials that we don't have in our country like pima cotton and alpaca.
It's the complementary nature of this trade that has generated widespread support for the extension of this program, including support from the business community and the labor community.
Concerns have been raised about whether Ecuador and Bolivia are living up to their ATPA obligations and treating U.S. investors fairly. And the answer is, and I want this to be clear, that the administration has the authority to revoke ATPA status to any country failing to meet any of the ATPA criteria, and there is a broad range of them, including those related to the treatment of investors.
If this program is not extended, it would be mutually disadvantageous to both the United States and to these four countries.
I want to emphasize, as I did some months ago when there was an extension, we are talking today about the Andean Trade Preference Act. We are not talking about any other FTA, whether it be Colombia, Korea, or any other place. Each agreement must be decided on its own merits. In any respect, therefore, it would be counterproductive to vote against extending the Andean Trade Preference Act.
I strongly urge approval of this 10-month extension.
Madam Speaker, I reserve the balance of my time.
Madam Speaker, it is now my pleasure to yield 4 minutes to my colleague from Washington (Mr. McDermott), a valued member of the committee.
(Mr. McDERMOTT asked and was given permission to revise and extend his remarks.)
Madam Speaker, it is now my privilege to yield 3 minutes to our distinguished colleague from California (Mr. Becerra).
It is now my pleasure to yield 3 minutes to the gentleman from New York (Mr. Engel) who is indeed very active in these international issues.
I am the only speaker remaining. Why don't you proceed.
Madam Speaker, I yield myself such time as I may consume.
In closing, let me just emphasize a few points. Mr. Rangel and I and others offered a bill for a longer extension than this one, but we weren't able to bring that about here on a bipartisan basis. So what we have today is a 10-month extension, and I very much urge its passage.
I simply want to emphasize that every program has to be considered on its own merits. This is a continuation of a preference program that has been mutually beneficial. This is not involving an FTA with any of these countries. FTAs involve different and broader considerations. So I think discussion of that must be left for a different time under different circumstances after different events have occurred.
Madam Speaker, I urge passage of this bill.
Mr. DREIER. Madam Speaker, I have always been a strong supporter of the Andean Trade Preference Act. These preferences have been critical in encouraging both development and liberalization in a key region. But as we look at where each of the four Andean nations stands today, we see that they are all at very different stages, with preferences having significance for different reasons.
Peru is a country that has made tremendous strides in its economic liberalization process while remaining a close political ally, and we have propelled our trade relationship forward through ratification of a free trade agreement (FTA). As we go through the implementation process, preferences are still necessary to provide continuity until the agreement is fully realized. But Peru has clearly graduated beyond one-sided preferences, and our engagement will only grow exponentially.
In the case of Colombia, once again, this is a country that has made outstanding progress on economic and political fronts, and has negotiated an FTA with us in good faith. We have left this agreement in limbo for far too long, and should vote to pass it immediately. I have supported repeated extensions of our preference system for Colombia, because it would be unfair to punish them for our inability to make progress. But this is a critical agreement that will help to lock in great gains, and we cannot afford to allow the U.S.-Colombia FTA to languish any longer.
Bolivia and Ecuador, however, have not made the great progress in liberalization that their neighbors have. Our trade preferences in these two countries are critically important, but for very different reasons. It is important for us to continue to engage with them, to encourage both economic and political liberalization. Preferences can help workers in these countries reach that first rung of the economic ladder. And with new opportunities come rising living standards, and momentum for greater reform.
However, there can be no progress without the rule of law. Both countries are facing great challenges on this front, with justice systems that are unable--or perhaps at times even unwilling--to uphold the law and create an environment that supports free markets and accountable governments. In some instances, there have been egregious abuses in the courts, punishing those who have invested in the economy and creating a powerful deterrent to other prospective investors. Both Bolivia and Ecuador have much to gain by focusing on strengthening the rule of law, and much to lose by neglecting to do so. Without an improved legal environment, our trade preferences will be of little value.
Furthermore, failure in this regard will erode support in Congress for preferences altogether. I believe the fact that we are considering only a ten-month extension of the program is a reflection, in part, of grave concerns
that many Members hold for the direction Bolivia and Ecuador are heading. It is my hope that ten months from now, when we again address the issue of preferences for the Andean countries, we will be witnessing a renewed commitment in these two countries for the reform and liberalization that are essential to eliminating poverty and improving the standard of living for every Bolivian and Ecuadorian.
Mr. MORAN of Virginia. Madam Speaker, I rise in support of the H.R. 5264, the Andean Trade Preference Act (ATPA), a program meant to assist the Andean countries in their economic development. The ATPA provides duty free treatment for 94 percent of imports from the four Andean nations-Colombia, Peru, Bolivia, and Ecuador.
The original Andean Trade Preferences Act was passed in 1991 and extended and expanded in 2002 with the Andean Trade Promotion and Drug Eradication Act (ATPDEA), and again extended last June 2007. This program is fundamental in our mission to foster trade-based economic relations between the United States and the Andean region and stimulate legitimate economic alternatives to narcotics production and trafficking in the Andean region.
If Congress does not pass the Andean Trade Preference Act, the previous extension of the program will expire on February 29, 2008. Renewing ATPA will continue to build on the program's success and help us achieve our larger policy goals for the Andean region. At a time of increasing economic uncertainty, it will help sustain critical U.S. jobs that are dependent on stable trade with and investments in the Andean region.
From 2003 to 2006, U.S. textile exports to the Andean region increased by more than $50 million signifying a 40 percent increase. However, with the uncertainty the constant renewal brings, last year it was extended for 8 months 2 hours before it was set to expire, it has discouraged companies from continuing their investment in the Andean region.
Our current regional partnership is grounded on the joint struggle to eradicate the narcotics menace that terrorizes both the Andean region and the United States and to provide economic stability through trade. As the Andean region currently enjoys duty-free treatment, an expansion of these trade policies, like the U.S.-Peru Free Trade Agreement, would allow us to enter into a full partnership with the remaining Andean countries instead of just a one way trading benefit.
While free trade agreements are not on the immediate agenda of Congress, I urge a vote in favor of H.R. 5264, to extend trade preferences for Colombia, Peru, Ecuador and Bolivia and continue to show our support for our Andean neighbors and allow U.S. companies to continue investing in that region.
Madam Speaker, I yield back the balance of my time.