Page images
PDF
EPUB

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
TRADE, AND ON WESTERN HEMISPHERE AFFAIRS,

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
GUS YATRON, Pennsylvania
STEPHEN J. SOLARZ, New York
DON BONKER, Washington
GERRY E. STUDDS, Massachusetts
DAN MICA, Florida

HOWARD WOLPE, Michigan

GEO. W. CROCKETT, JR., Michigan
SAM GEJDENSON, Connecticut
MERVYN M. DYMALLY, California
TOM LANTOS, California

PETER H. KOSTMAYER, Pennsylvania
ROBERT G. TORRICELLI, New Jersey
LAWRENCE J. SMITH, Florida
HOWARD L. BERMAN, California
MEL LEVINE, California

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
BENJAMIN A. GILMAN, New York
ROBERT J. LAGOMARSINO, California
JIM LEACH, Iowa

TOBY ROTH, Wisconsin
OLYMPIA J. SNOWE, Maine
HENRY J. HYDE, Illinois

GERALD B.H. SOLOMON, New York
DOUG BEREUTER, Nebraska
ROBERT K. DORNAN, California
CHRISTOPHER H. SMITH, New Jersey
CONNIE MACK, Florida

MICHAEL DEWINE, Ohio

DAN BURTON, Indiana

JAN MEYERS, Kansas

JOHN MILLER, Washington

DONALD E. "BUZ” LUKENS, Ohio
BEN BLAZ, Guam

[merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][ocr errors][merged small][merged small][merged small][merged small][merged small][merged small]

CONTENTS

WITNESSES

Thursday, February 25, 1988:

Page

Hon. Allen Wallis, Under Secretary for Economic Affairs, Department of
State...

6

Hon. Louis Laun, Assistant Secretary for International Economic Policy,
Department of Commerce...

16

Ambassador Alan F. Holmer, Deputy U.S. Trade Representative, Office of the U.S. Trade Representative......

[ocr errors][merged small]

Hon. William F. Martin, Deputy Secretary, Department of Energy.
Ann Veneman, Associate Administrator, Foreign Agricultural Service,
Department of Agriculture..........

Wednesday March 16, 1988:

Ambassador Clayton Yeutter, U.S. Trade Representative, accompanied by
Peter Murphy, Chief Negotiator; Bob Reinstein, Director of Energy
Policy; and Bill Merkin, Deputy Assistant U.S. Trade Representative
for Canada.........

MATERIAL SUBMITTED FOR THE RECORD

A resolution by the National Governors Association in favor of the United
States-Canada Free Trade Agreement, adopted February 1988......

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....

[blocks in formation]

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
TRADE, AND ON WESTERN HEMISPHERE AFFAIRS,

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.

« PreviousContinue »