Text: Commerce's Daley Remarks to APEC Human Resources Ministers
(Public must see benefits of trade on a personal level)U.S. Secretary of Commerce William M. Daley encouraged human resources ministers from the 21 member economies that make up the Asia-Pacific Economic Cooperation (APEC) forum to join the United States in finding a way to build a greater public consensus for trade.
"If we are to develop policies that expand the benefits of trade," Daley said at a dinner for the ministers in Washington July 28, "the people have to be behind us."
Daley observed that even in the United States, where the unemployment rate is low and exports account for a third of the national economic growth, people still resist market-opening measures.
"Some 60 percent of Americans do not believe trade is good for their jobs," Daley said. "They see workers being laid off and they assume it is because of imports."
Daley based his comments partly on observations he made this year while on a "national trade education tour" around the United States. By visiting places such as factories and community colleges and by listening to citizens' concerns about trade, he said, he had gained "a real education" while educating the public at the same time. He recommended that the foreign ministers join him in undertaking such outreach measures.
"The most important issue," Daley said, "is to make the public see that trade -- both selling and buying products -- is good for their economic futures" on a personal level.
He also suggested that governments encourage more businesses to enter the export market -- especially smaller businesses and those run by women. Daley added that labor and the environmental considerations must play a more prominent role in the development of trade policies for the 21st century. "We just can't gloss over these issues anymore," he noted.
Daley also discussed the global need for a more educated workforce, and the U.S. need for more high-tech workers.
Following is the text of Daley's remarks, as prepared for delivery:
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Remarks by Secretary of Commerce William M. Daley
APEC Human Resources Ministerial Dinner
July 28, 1999
Washington, DCFor those of you who may not know it, at the beginning of the century Commerce and Labor were a single department. But by 1913, labor was such a huge force in America that it became its own department. Today, Secretary Herman has a budget that is an incredible eight times the size of mine. So, it is very obvious who still has the power in this country -- labor!
In a way, we have come full circle. As the voice for business in our government, I find myself at the end of the century again dealing with labor issues -- particularly those related to trade.
When I visit APEC economies, as I have done frequently in the last two-and-a-half years, I enjoy hearing how the people there feel. I have learned, they speak their mind.
Today, I want to reciprocate. I want to tell you how the American people feel about trade, because, to be frank with you, it may surprise you. Even in the United States, with the lowest unemployment in a generation, where exports accounted for a third of our growth, people still resist market-opening measures.
Why? They fear for their jobs. Some 60 percent of Americans do not believe trade is good for their jobs. They see workers being laid off and they assume it is because of imports. They see plants closing. They see our trade deficit setting record after record.
When enough people are out of work, fears become reality. Many of you saw this first-hand, as the financial crisis swept through much of APEC. It caused pain in Asia. It caused problems here in America, also. So the work you do tomorrow on mitigating the social effects of the crisis, and promoting more sustainable economic growth, is very important.
But my message to you tonight is this: we also have to find a way to build a greater consensus for trade. If we are to develop policies that expand the benefits of trade, the people have to be behind us.
Many of you obviously face tough odds in taking labor and trade issues on in your governments. There are other priorities in each of your governments that come first.
But let me offer a few thoughts on what we are doing in America to reach our workers. I do so, with the hope that together we can convince the public that trade -- both selling and buying products -- is good for their economic futures.
First, and the most important point, people need to feel more secure about trade. No question, they need to see the benefits. In spite of all the good macro numbers on trade, on the micro level, individual people do not see it or understand it. As President Clinton says, the "ultimate test of our economic partnership is not in big numbers, but in human impact."
So, I have been on a national trade education tour this year, across America. I spend a day or two every month outside of Washington. I visit shop floors. I visit diners. I go to community colleges. In every place, I have been met by protesters, who fear for their jobs.
One of the things they want to know is how Washington can do trade agreements with other countries, where workers earn less, and do not have the health care, and pensions they have worked so hard for -- and these differences have such an economic impact.
I may ask some of you to join me on the next trip, to answer the question. But it has been a real education for me -- and them. And I encourage all of you to help build a consensus on trade with your citizens.
Second, we need more companies exporting. In America, as in many of your economies, it has been the large companies exporting. In the next century, I am convinced it will be small companies that lead the way. With the Internet, it is possible for a small company to sell goods around the world, just as a Fortune 100 does today.
To help our companies break into the business, we have set up a network of trade specialists. We have experts in 75 countries and 100 U.S. cities, who every day help Americans find partners and distributors in your cities. We appreciate all the help that we get from your governments.
By the way, Secretary Herman, I would like to see more women involved in exporting, too. In America, 40 percent of firms are female-owned. I suspect that is higher than in many of your nations. Yet -- listen to this -- these women-owned businesses account for less than two percent of foreign sales. But the fact is, once they export they are very successful. Nine out of 10 female business owners make money by their second sale. So, we need to encourage more women into the field. I know you will be looking at issues of concern to women this week, and I would appreciate it if you put that on the agenda.
Third, as we develop trade policies for the 21st century, there is no doubt labor and the environment must play a more prominent role. We just can't gloss over these issues anymore. We cannot pretend they are just social -- not economic issues.
Let me illustrate. When NAFTA passed nearly six years ago, which tied North America into a single market, what I saw was this: the American people wanted NAFTA to do more than open up markets. They wanted it to raise the bar on labor and environmental standards, too. And many people in Canada and Mexico felt the same way.
As you know, in June, the International Labor Organization agreed to do more to protect the most vulnerable, especially children. I hope that as more trade talks are held all over this world, labor and environmental issues are also being discussed.
Fourth and finally, I want to make an observation that has nothing to do with trade. But it is something that is personally important to me and is of absolute growing importance to corporate America. And that is the need for higher-skilled workers.
The world economy of tomorrow will be information and technology driven. When you look at an American newspaper, you see stacks and stacks of help-wanted ads for computer jobs. We are seeing an accelerating demand for high-tech labor -- a trend likely to continue for many years.
In fact, today, we have about 1.5 million highly skilled information technology workers in this country. It took us 50 years, since the first computer was invented, to get there. Within the next 10 years, we will need almost twice as many.
So, Secretary Herman and I have been encouraging businesses and schools to team up, and interest more students in math and science careers.
Industry alone cannot solve this. Nor can government alone. Nor can educators alone. It requires public-private partnerships. And we want to do more to retrain workers. Education should be a life-long experience. In America, people hold six to eight different jobs in their lifetimes. I am on my fourth, so I have a few to go.
President Clinton has created incentives for people of all ages to be life-time learners. Americans are taking advantage of them. I know many of you are doing the same with your governments, and I know the President would encourage you to do more.
Let me end on this. Teddy Roosevelt -- the founder of the Commerce and Labor Department -- may have summed up best what we are trying to do. He said when the Department was created at the turn of the century that its work was to be based on one simple theory: "Securing fair treatment alike for labor, and for capital."
Now, at the end of the century, labor and commerce are united again. And they come together at a hopeful time. We are free of world war, and the tyranny of recent times is fading. The global economy, despite some ups and downs, is stronger today than it was a decade ago.
Can we do better? Of course. Can we secure a place for every nation in the global economy? I believe we can. How we will get there is by making people more secure about trade and working to expand the benefits of trade. And we will get there by dealing with labor and environmental issues, and by producing a more educated workforce.
Thank you very much.
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