Emergency Committee For American Trade

ECAT's Letter to the President Regarding America’s International Trade Agenda

ECAT LETTER TO THE PRESIDENT

April 16, 2001
The President
The White House
1600 Pennsylvania Avenue, N.W.
Washington, D.C. 20500

Dear Mr. President:

As you prepare for the Third Summit of the Americas in Quebec City, we in the Emergency Committee for American Trade (ECAT) are writing to share our views regarding the focus of America’s international trade agenda. Above all else, we believe that expanding U.S. trade and investment remains essential to promoting economic growth and a high standard of living in the United States and throughout the world.

The United States has an important opportunity in 2001 to move forward with trade and investment policies that will support continued U.S. prosperity. To do so, the United States must embrace a positive trade agenda, comprised of several key elements:

First, we must rebuild the national and bipartisan consensus on the value of trade and investment liberalization as the foundation for Congress’ passage of trade promotion authority legislation in 2001. The post-World War II consensus on the value of liberalizing trade and investment policies has been shaken in recent years. In order to restore trade promotion authority and to regain American leadership on trade and investment liberalization throughout the world, we must effectively make the case that expansionary trade and investment policies promote economic growth, including the growth of the new economy, and create concrete opportunities for American companies, their workers and their families. We hope you will be able to use Quebec City Summit of the Americas to address the American people directly about how trade benefits the United States and its citizens.

In rebuilding this consensus, you will encounter many challenges, including efforts to restrict imports of steel and other products into the U.S. market, challenges to U.S. intellectual property rights, and pressure to address labor and environmental issues through trade agreements and trade sanctions. On the issue of import restrictions, we believe it is imperative that the United States remain steadfast in its adherence to WTO rules and in its opposition to protectionism. If we do not, our exporters will face retaliation by our trading partners, the competitiveness of our manufacturers will be undermined, and we will set an example that our trading partners may well follow to our own detriment. For the same reasons, U.S. trade remedy statutes, which serve as models for similar statutes in other countries, must remain consistent with WTO rules and take into account the interests of U.S. importers and exporters. U.S. intellectual property rights must also be protected.

On issues related to labor and the environment, it is essential to first define the concrete problems that we are trying to solve and then determine the best solutions. For the most part, we believe that these issues would be better addressed through their own independent agendas, rather than as add-ons to the trade agenda. But, in those cases where complementarity exists, we can and should work to address these issues in a concerted and cooperative manner. Indeed, as the World Bank and others have demonstrated, it is precisely through increased trade and economic growth that countries are best able to improve their labor and environmental standards.

Second, the United States must regain its leadership role in promoting comprehensive and trade-oriented global, regional and bilateral agreements that focus on the liberalization of trade and investment. At a minimum, the United States should focus on completing China's WTO accession negotiations; making concrete progress on negotiations to complete the Free Trade Area of the Americas before or by 2005; supporting the launch in 2001 of comprehensive WTO negotiations that build upon the agriculture and services negotiations that began last year; pursuing meaningful bilateral agreements and negotiations, including the U.S.-Vietnam trade agreement; and addressing in ongoing negotiations the growing role of e-commerce.

Third, the United States should transform the trade adjustment programs to address more fully the needs of today’s workers. The U.S. economy has changed since the enactment of the original Trade Adjustment Assistance (TAA) programs, with industrial shifts and technological advancements occurring at an increasingly rapid pace. It is imperative that expanded efforts be undertaken to educate and empower the U.S. workforce by providing the necessary tools, opportunities, and assistance to facilitate the transition and ensure the health and success of the U.S. economy. Comprehensive efforts should be undertaken to modernize and extend these programs prior to their expiration on September 30, 2001.

Fourth, the United States should modernize its system of export controls. The free flow of technology, capital, ideas, and goods in the global economy has made unilateral export controls increasingly ineffective and out of step with technological and commercial reality. We support efforts to reauthorize the Export Administration Act and otherwise modernize U.S. export control laws in a manner that promotes U.S. technological leadership, while protecting national security. We support as well a comprehensive review of U.S. unilateral sanctions policy.

U.S. trade policy is at a crossroads. Under your leadership, the United States can embrace a positive trade and investment agenda that will support prosperity at home and abroad, along with new markets and new opportunities for U.S. companies, their workers and families. You have our commitment to work with you in support of such an agenda.

Sincerely,