OVERSIGHT OF THE UNITED STATES-CANADA FREE TRADE AGREEMENT THURSDAY, FEBRUARY 25, 1988 HOUSE OF REPRESENTATIVES, COMMITTEE ON FOREIGN AFFAIRS, SUBCOMMITTEES ON INTERNATIONAL ECONOMIC POLICY AND Washington, DC. The subcommittees met at 2:05 p.m. in room 2172, Rayburn House Office Building, Hon. Don Bonker (chairman of the Subcommittee on International Economic Policy and Trade) presiding. Mr. BONKER. The hearing will come to order. Today the Subcommittees on International Economic Policy and Trade and Western Hemisphere are conducting this hearing for the purpose of better understanding the nature, the scope, and the content of the recently negotiated, and, I might add, historic trade agreement with Canada. Back in May of 1985, President Reagan and Prime Minister Mulroney met at what has been called the "Shamrock Summit" and mutually pledged to intensify negotiations on both sides and come up with a trade accord that hopefully would phase out all tariffs and other obstacles to two-way trade. In other words, the accord would level the playing fields so we could have a more integrated economy between two countries that have traditional cultural, social and economic ties. I would like to take this opportunity to commend the administration and particularly the witnesses who were on the American team and who helped to bring this trade agreement to fruition. Congress has more or less sanctioned the talks and the process by placing this matter on a fast track so that both the Senate and the House can act expeditiously on the pending agreement. I might add that it is an agreement and not a treaty. Therefore, the House does have a say on the matter. It should also be noted that it is the House Ways and Means Committee that has primary jurisdiction on this matter, although we do have some interest in this matter, which is the basis for today's hearing. By and large, it will be the Senate Finance Committee and the House Ways and Means Committee that will be reporting it out. This is not the first time that we have negotiated an agreement with Canada. Insofar as I know, there have been two previous occasions once in 1911, and the second time in 1944. COMMITTEE ON FOREIGN AFFAIRS DANTE B. FASCELL, Florida, Chairman LEE H. HAMILTON, Indiana HOWARD WOLPE, Michigan GEO. W. CROCKETT, JR., Michigan PETER H. KOSTMAYER, Pennsylvania EDWARD F. FEIGHAN, Ohio TED WEISS, New York GARY L. ACKERMAN, New York MORRIS K. UDALL, Arizona CHESTER G. ATKINS, Massachusetts JAMES MCCLURE CLARKE, North Carolina JAIME B. FUSTER, Puerto Rico JAMES H. BILBRAY, Nevada WAYNE OWENS, Utah FOFO I.F. SUNIA, American-Samoa WILLIAM S. BROOMFIELD, Michigan TOBY ROTH, Wisconsin GERALD B.H. SOLOMON, New York MICHAEL DEWINE, Ohio DAN BURTON, Indiana JAN MEYERS, Kansas JOHN MILLER, Washington DONALD E. "BUZ” LUKENS, Ohio CONTENTS WITNESSES Thursday, February 25, 1988: Page Hon. Allen Wallis, Under Secretary for Economic Affairs, Department of 6 Hon. Louis Laun, Assistant Secretary for International Economic Policy, 16 Ambassador Alan F. Holmer, Deputy U.S. Trade Representative, Office of the U.S. Trade Representative...... Hon. William F. Martin, Deputy Secretary, Department of Energy. Wednesday March 16, 1988: Ambassador Clayton Yeutter, U.S. Trade Representative, accompanied by MATERIAL SUBMITTED FOR THE RECORD A resolution by the National Governors Association in favor of the United APPENDIXES 1. Prepared statement of the Coalition to Keep Alaska Oil 2. Response by the Department of Energy to an additional question submitted by Congressman Solarz. 3. The United States-Canadian Free Trade Agreement and electricity imported from Canada are in the national interest, submitted by Glenn R. Schleede.... 4. Additional question submitted by Hon. Robert G. Torricelli for Hon. Clayton Yeutter, U.S. Trade Representative 152 OVERSIGHT OF THE UNITED STATES-CANADA FREE TRADE AGREEMENT THURSDAY, FEBRUARY 25, 1988 HOUSE OF REPRESENTATIVES, COMMITTEE ON FOREIGN AFFAIRS, SUBCOMMITTEES ON INTERNATIONAL ECONOMIC POLICY AND Washington, DC. The subcommittees met at 2:05 p.m. in room 2172, Rayburn House Office Building, Hon. Don Bonker (chairman of the Subcommittee on International Economic Policy and Trade) presiding. Mr. BONKER. The hearing will come to order. Today the Subcommittees on International Economic Policy and Trade and Western Hemisphere are conducting this hearing for the purpose of better understanding the nature, the scope, and the content of the recently negotiated, and, I might add, historic trade agreement with Canada. Back in May of 1985, President Reagan and Prime Minister Mulroney met at what has been called the "Shamrock Summit" and mutually pledged to intensify negotiations on both sides and come up with a trade accord that hopefully would phase out all tariffs and other obstacles to two-way trade. In other words, the accord would level the playing fields so we could have a more integrated economy between two countries that have traditional cultural, social and economic ties. I would like to take this opportunity to commend the administration and particularly the witnesses who were on the American team and who helped to bring this trade agreement to fruition. Congress has more or less sanctioned the talks and the process by placing this matter on a fast track so that both the Senate and the House can act expeditiously on the pending agreement. I might add that it is an agreement and not a treaty. Therefore, the House does have a say on the matter. It should also be noted that it is the House Ways and Means Committee that has primary jurisdiction on this matter, although we do have some interest in this matter, which is the basis for today's hearing. By and large, it will be the Senate Finance Committee and the House Ways and Means Committee that will be reporting it out. This is not the first time that we have negotiated an agreement with Canada. Insofar as I know, there have been two previous occasions-once in 1911, and the second time in 1944. |