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Guest Commentary April 29, 2002
Promoting Trade
The Honorable Kay Bailey Hutchison
America has the most productive, creative work force in the world. Our industries are diverse and our products are second to none. Now it is time we expand our reach to bring more of these goods and services to the global marketplace.
Ninety-six percent of the world's consumers live outside the United States, representing a vast market for American exports. Unfortunately, other countries are moving forward and promoting trade while we are standing on the sidelines.
For America to increase trade opportunities around the world, Congress needs to pass the Trade Promotion Authority (TPA) bill. TPA gives the president the ability to negotiate trade agreements with the knowledge that while Congress retains its right to approve or reject a treaty, it will not try to amend or delay it. Without TPA, foreign governments have not been willing to sit at the negotiation table with the United States - they do not want to waste time crafting a complex agreement, only to see it changed.
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While we delay, other countries are entering into agreements that exclude us. Our competitors in Europe, Asia and Latin America have sealed more than 130 free-trade compacts, yet we are party to only three - with Jordan, Israel, and with Canada and Mexico through the North American Free Trade Agreement (NAFTA).
Lack of free-trade agreements puts American exporters at a disadvantage. For example, a $187,000 tractor made in America and shipped to Chile incurs $13,090 in tarrifs and duties upon arrival. The same tractor would face $3,740 in tarrifs if it were made in Brazil - and none if it were made in Canada. American businesses, farmers and ranchers cannot compete effectively with this kind of disparity.
Our inability to negotiate agreements with foreign countries is hurting U.S. industry and limiting economic growth and prosperity. TPA offers the United States the chance to reclaim momentum in the global economy by opening additional foreign markets and expanding opportunities for American producers and workers. For some 60 years, presidents and members of both parties in Congress have worked together to open markets around the world. Now, as we work to launch a new round of global trade negotiations, close cooperation is more critical than ever.
In Texas, we have experienced the benefits of NAFTA. Since the agreement was implemented in January 1994, Texas exports have grown much faster than the overall U.S. export of goods. Texas merchandise exports in 2000 totaled $69 billion, up more than 22 percent from 1997 and nearly double the 1993 total of $36 billion.
On the agricultural front, Texas ranks third among all 50 states in exports, with an estimated $3.3 billion in sales to foreign markets in 2000. We are leading exporters of beef, poultry, feed grains and wheats. NAFTA has helped secure Texas' position as the No. 1 cotton exporting state. Since the agreement took effect, we have increased cotton exports to Mexico from 558,00 bales in 1995 to 1.5 million bales in 2000. But for farmers and ranchers in our state to continue to expand their exports, the United States must enter into trade agreements that will create opportunities for that growth.
Congress first charged the president with trade negotiation authority in 1934. That authority lapsed in 1994 and it has not been renewed.
At a time of increased tension in many parts of the world, American leadership on trade is more important than ever. Giving the president a strong hand to negotiate will ensure the continued growth of our economy and allow us to keep exporting three of our greatest ideals - freedom, free enterprise, and democracy.
Kay Bailey Hutchison, a Republican, is a U.S. Senator from Texas. The above column has been adapted from a weekly column Sen. Hutchison issued, April 24, 2002. To contact her, Click Here.
The above column has been distributed by PoliticsOL.com.
