Emergency Committee For American Trade

ECAT Welcomes Launch of Historic U.S.-China BIT Negotiations

Negotiation of a Strong, Meaningful Agreement Would Spur U.S. Competitiveness, Growth and Opportunity

Washington, D.C., June 18, 2008: Harold McGraw III, Chairman, President and CEO of The McGraw-Hill Companies and Chairman of the Emergency Committee for American Trade (ECAT), issued the following statement following the announcement that the United States and China were launching investment treaty negotiations:

“Today’s announcement that the United States and China will negotiate a Bilateral Investment Treaty (BIT) represents an historic opportunity to improve and build upon the U.S.-China economic relationship and promote U.S. economic growth and prosperity. ECAT strongly welcomes the launch of these negotiations and looks forward to their advancement in the months ahead.

“Foreign investment provides substantial benefits for America’s workers, farmers, manufacturers, service providers, and consumers. Increased U.S. foreign investment leads to increased exports, higher wages for U.S. workers, and increased investment in U.S.-based research and development and physical capital. At the same time, increased foreign investment into the United States boosts U.S. economic growth, provides new jobs for American workers, and enhances U.S. competitiveness.

“A high-standard BIT with China that contains meaningful provisions for investment access, investment protection, and dispute-settlement would help level the playing field for the United States vis-à-vis our competitors from Europe, Asia and elsewhere, who already have BITs in place with China. A U.S.-China BIT also would provide broader, more systemic benefits, including enhanced transparency, protection of intellectual property and the rule of law, effective dispute-settlement mechanisms, and a further improved U.S.-China relationship.

“Negotiating with a major economy such as China poses great opportunities, but also real challenges. We appreciate the groundwork that our U.S. negotiators already have laid and look forward to working with them, as well as other parts of the Administration and Congress, to promote a strong, high-standard agreement that provides access, protections and dispute-settlement procedures across all major goods and services sectors. Such an agreement would generate significant benefits for American business, workers and communities.”

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Founded in 1967, ECAT is an organization of the heads of leading U.S. international business enterprises representing all major sectors of the American economy. Their annual worldwide sales total over $2.8 trillion and they employ more than six million persons. ECAT’s purpose is to promote economic growth through the expansion of international trade and investment.

Attached Document(s): 06-18-08 ECAT Welcomes U.S.-China BIT Launch.pdf