Emergency Committee For American Trade - Publications

Introduction

This year presents the United States with substantial opportunities to move forward with trade- and investment-liberalizing negotiations, policies and legislation that support economic growth and a high standard of living and that benefit U.S. companies and U.S. workers and their families:

The United States can play a leadership role in shaping and propelling negotiations globally as part of the Doha Development Agenda at the Cancun Ministerial in September 2003.
It can create new opportunities and spur economic growth and partnerships by negotiating comprehensive, high-standard and commercially-meaningful free trade agreements with Central America, Southern Africa, Australia, Morocco and elsewhere throughout the world.
It can lock-in bilateral market-opening through Congress' approval and implementation of free trade agreements with Chile and Singapore.
It can continue its leadership in promoting the protection of international investment and intellectual property rights worldwide.
It can resist domestic protectionist pressures, thereby setting an example of trade liberalization for the rest of the world.

Indeed, over the last century, the United States, now the world's largest trading nation, has enjoyed enormous prosperity in large part because of the trade and investment policies it adopted in 1934 and after. Over the last decade alone, U.S. exports have accounted for approximately 30 percent of U.S. economic growth and have contributed significantly to the high standard of living enjoyed by American workers and their families. Imports have improved the variety and availability of products throughout the United States, have increased the competitiveness of U.S. companies, and have been a significant factor in dampening inflationary pressures. Trade and investment not only support U.S. prosperity, they promote greater economic growth, freedom, and stability throughout the world. As detailed in ECAT's new study, Technology, Trade and Investment: The Public Opinion Disconnect, trade and investment are also critical drivers supporting growth in the production and use of information and communication technologies in particular - growth that has accounted for most of the acceleration in U.S. productivity, with significant effects on improving the U.S. standard of living.

U.S. trade policy made an important rebound last year with Congress' approval of the Trade Act of 2002, including the renewal of Trade Promotion Authority (formerly called fast track trade-negotiating authority), the renewal and expansion of the Andean Trade Preference Act and the Trade Adjustment Assistance programs and the renewal of the Generalized System of Preferences. Renewal of Trade Promotion Authority in particular, almost a decade after its expiration, empowers the United States to negotiate and implement free trade agreements throughout the world that will benefit the United States broadly and U.S. farmers, companies, workers and their families specifically. Such agreements can also promote economic development and help raise living standards throughout the world.

Armed with Trade Promotion Authority, the focus of U.S. trade policy returns to the negotiating table and there is much to be done.

The Cancun Ministerial of the WTO presents the potential for creating momentum for the early completion of global negotiations as part of the Doha Development Agenda - but there are many obstacles in its path.
While agreements have been completed with Chile and Singapore, Congress must consider and approve them before the benefits can be realized.
Ongoing negotiations with Central America, the Western Hemisphere, Southern Africa, Australia and Morocco each portend important benefits - the key will be in the negotiation of comprehensive and commercially-meaningful agreements.

ECAT is committed to continuing to work with the Administration, Congress, and others in the private sector to promote negotiations, policies and legislation that benefit the United States in the realm of international trade and investment and that will help restore the consensus on the value of trade and investment liberalization.

In particular, ECAT will continue to work on the advancement of trade and investment liberalization through comprehensive, commercially-meaningful, trade-oriented bilateral, regional and global agreements. Chief among these negotiations that ECAT will be supporting in the coming year are the newly launched World Trade Organization (WTO) negotiations, U.S-Central America FTA negotiations, negotiations to complete the Free Trade Area of the Americas, as well as other bilateral and regional negotiations with Australia, Morocco and Southern Africa. ECAT will also be leading efforts to ensure the inclusion of strong protections for U.S. investment abroad in all relevant negotiations, as recommended by ECAT's study on the nexus between trade, investment and the development and use of new technologies

In supporting new liberalization, ECAT will also seek to reaffirm U.S. support for the multilateral trading system that has been the primary catalyst for global economic growth for the last half century. Global economic integration cannot continue to thrive and face the challenges ahead without strong rules-based global institutions built on international consensus. Greater transparency and further dispute settlement process reforms can strengthen the multilateral trading system, as can renewed efforts to implement WTO decisions. While the United States faces serious challenges in WTO dispute settlement cases, the United States continues to be the major beneficiary of the dispute settlement process.

ECAT will also work to support policies and legislation that foster trade and investment liberalization, including implementation of the Chile and Singapore Free Trade Agreements and legislation to lift the trade embargo on Cuba. ECAT will also work to address the changes in U.S. Customs processes needed to modernize and facilitate trade, while also addressing increased security needs and the movement of the U.S. Customs Service to the new Department of Homeland Security.

In addition, ECAT will continue its unique role in combating efforts to impose protectionist barriers to imports entering the United States. As ECAT has made clear during the debate on whether to impose protectionist tariffs and/or quotas on steel imports, it is far better to promote innovative approaches, such as restructuring and cost-competitiveness responses, for domestic industries facing import pressure, rather than limiting imports in a protectionist manner that increases costs for consumers and exporters and has overall negative implications for the U.S. economy.

ECAT will also continue to address constructively the relationship between trade and other policy issues, including labor, environment, food policy, and health policy.

ECAT also supports policies and legislation that will level the playing field for U.S. companies with their foreign competitors, including efforts to ensure full funding for the Export-Import Bank and to re-authorize the Export Administration Act and modernize U.S. export control laws in a manner that promotes U.S. technological leadership while protecting national security. ECAT also supports the reform of U.S. sanctions laws.

ECAT will continue its trade education program to foster greater public understanding of the major role that trade and investment play in generating domestic and global economic growth. In addition, ECAT will use its new study, released earlier this year, to help reinvigorate the debate on the importance of trade and investment liberalization.

ECAT's Priorities

ECAT's priorities for this year are:

Substantial progress on the Doha Development Agenda (including at the Cancun Ministerial) and strengthening the U.S. role in the WTO (including with respect to dispute settlement);
Completion of negotiations for a commercially-strong U.S.-Central America Free Trade Agreement;
Congressional approval and implementation of U.S.-Chile and U.S.-Singapore Free Trade Agreements;
Inclusion of strong protections for U.S. investment abroad in all relevant negotiations, as recommended by ECAT's study on the nexus between trade, investment and the development and use of new technologies;
Substantial progress on the Free Trade Area of the Americas and other trade and investment agreement negotiations;
Elimination of protectionist measures at home and abroad, including U.S. steel 201 safeguard tariffs; and
Building Congressional support for trade and investment liberalization priorities.


	Introduction This year presents the United States with substantial opportunities to move forward with trade- and investment-liberalizing negotiations, policies and legislation that support economic growth and a high standard of living and that benefit U.S. companies and U.S. workers and their families: The United States can play a leadership role in shaping and propelling negotiations globally as part of the Doha Development Agenda at the Cancun Ministerial in September 2003. It can create new opportunities and spur economic growth and partnerships by negotiating comprehensive, high-standard and commercially-meaningful free trade agreements with Central America, Southern Africa, Australia, Morocco and elsewhere throughout the world. It can lock-in bilateral market-opening through Congress' approval and implementation of free trade agreements with Chile and Singapore. It can continue its leadership in promoting the protection of international investment and intellectual property rights worldwide. It can resist domestic protectionist pressures, thereby setting an example of trade liberalization for the rest of the world. Indeed, over the last century, the United States, now the world's largest trading nation, has enjoyed enormous prosperity in large part because of the trade and investment policies it adopted in 1934 and after. Over the last decade alone, U.S. exports have accounted for approximately 30 percent of U.S. economic growth and have contributed significantly to the high standard of living enjoyed by American workers and their families. Imports have improved the variety and availability of products throughout the United States, have increased the competitiveness of U.S. companies, and have been a significant factor in dampening inflationary pressures. Trade and investment not only support U.S. prosperity, they promote greater economic growth, freedom, and stability throughout the world. As detailed in ECAT's new study, Technology, Trade and Investment: The Public Opinion Disconnect, trade and investment are also critical drivers supporting growth in the production and use of information and communication technologies in particular - growth that has accounted for most of the acceleration in U.S. productivity, with significant effects on improving the U.S. standard of living. U.S. trade policy made an important rebound last year with Congress' approval of the Trade Act of 2002, including the renewal of Trade Promotion Authority (formerly called fast track trade-negotiating authority), the renewal and expansion of the Andean Trade Preference Act and the Trade Adjustment Assistance programs and the renewal of the Generalized System of Preferences. Renewal of Trade Promotion Authority in particular, almost a decade after its expiration, empowers the United States to negotiate and implement free trade agreements throughout the world that will benefit the United States broadly and U.S. farmers, companies, workers and their families specifically. Such agreements can also promote economic development and help raise living standards throughout the world. Armed with Trade Promotion Authority, the focus of U.S. trade policy returns to the negotiating table and there is much to be done. The Cancun Ministerial of the WTO presents the potential for creating momentum for the early completion of global negotiations as part of the Doha Development Agenda - but there are many obstacles in its path. While agreements have been completed with Chile and Singapore, Congress must consider and approve them before the benefits can be realized. Ongoing negotiations with Central America, the Western Hemisphere, Southern Africa, Australia and Morocco each portend important benefits - the key will be in the negotiation of comprehensive and commercially-meaningful agreements. ECAT is committed to continuing to work with the Administration, Congress, and others in the private sector to promote negotiations, policies and legislation that benefit the United States in the realm of international trade and investment and that will help restore the consensus on the value of trade and investment liberalization. In particular, ECAT will continue to work on the advancement of trade and investment liberalization through comprehensive, commercially-meaningful, trade-oriented bilateral, regional and global agreements. Chief among these negotiations that ECAT will be supporting in the coming year are the newly launched World Trade Organization (WTO) negotiations, U.S-Central America FTA negotiations, negotiations to complete the Free Trade Area of the Americas, as well as other bilateral and regional negotiations with Australia, Morocco and Southern Africa. ECAT will also be leading efforts to ensure the inclusion of strong protections for U.S. investment abroad in all relevant negotiations, as recommended by ECAT's study on the nexus between trade, investment and the development and use of new technologies In supporting new liberalization, ECAT will also seek to reaffirm U.S. support for the multilateral trading system that has been the primary catalyst for global economic growth for the last half century. Global economic integration cannot continue to thrive and face the challenges ahead without strong rules-based global institutions built on international consensus. Greater transparency and further dispute settlement process reforms can strengthen the multilateral trading system, as can renewed efforts to implement WTO decisions. While the United States faces serious challenges in WTO dispute settlement cases, the United States continues to be the major beneficiary of the dispute settlement process. ECAT will also work to support policies and legislation that foster trade and investment liberalization, including implementation of the Chile and Singapore Free Trade Agreements and legislation to lift the trade embargo on Cuba. ECAT will also work to address the changes in U.S. Customs processes needed to modernize and facilitate trade, while also addressing increased security needs and the movement of the U.S. Customs Service to the new Department of Homeland Security. In addition, ECAT will continue its unique role in combating efforts to impose protectionist barriers to imports entering the United States. As ECAT has made clear during the debate on whether to impose protectionist tariffs and/or quotas on steel imports, it is far better to promote innovative approaches, such as restructuring and cost-competitiveness responses, for domestic industries facing import pressure, rather than limiting imports in a protectionist manner that increases costs for consumers and exporters and has overall negative implications for the U.S. economy. ECAT will also continue to address constructively the relationship between trade and other policy issues, including labor, environment, food policy, and health policy. ECAT also supports policies and legislation that will level the playing field for U.S. companies with their foreign competitors, including efforts to ensure full funding for the Export-Import Bank and to re-authorize the Export Administration Act and modernize U.S. export control laws in a manner that promotes U.S. technological leadership while protecting national security. ECAT also supports the reform of U.S. sanctions laws. ECAT will continue its trade education program to foster greater public understanding of the major role that trade and investment play in generating domestic and global economic growth. In addition, ECAT will use its new study, released earlier this year, to help reinvigorate the debate on the importance of trade and investment liberalization. ECAT's Priorities ECAT's priorities for this year are: Substantial progress on the Doha Development Agenda (including at the Cancun Ministerial) and strengthening the U.S. role in the WTO (including with respect to dispute settlement); Completion of negotiations for a commercially-strong U.S.-Central America Free Trade Agreement; Congressional approval and implementation of U.S.-Chile and U.S.-Singapore Free Trade Agreements; Inclusion of strong protections for U.S. investment abroad in all relevant negotiations, as recommended by ECAT's study on the nexus between trade, investment and the development and use of new technologies; Substantial progress on the Free Trade Area of the Americas and other trade and investment agreement negotiations; Elimination of protectionist measures at home and abroad, including U.S. steel 201 safeguard tariffs; and Building Congressional support for trade and investment liberalization priorities. 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