*EPF110 03/26/01
Text: Secretary of Commerce March 22 Remarks on U.S. Trade Policy
(Administration "strongly committed to liberalizing trade") (2450)

Characterizing the Bush administration's overall trade policy agenda as "one that leans heavily on the promotion of open markets," U.S. Secretary of Commerce Donald L. Evans discussed several priority agenda items to businessmen attending the 14th Annual Asia Pacific Business Outlook Conference March 22 in Los Angeles, California.

"The first thing we have to do is secure presidential trade promotion authority," Evans said.

"We must launch a new round of global trade negotiations in the WTO [World Trade Organization]; complete the vision of free trade in the Americas; work closely with the European Union to fulfill the promise of a stronger Trans-Atlantic marketplace; and ... seek market openings and trade expansion in the Asia Pacific region," he continued.

Evans added that "we need to take concrete steps to make free trade happen in APEC [the Asia-Pacific Economic Cooperation forum], and to ensure the spread in the region of new tools like e-commerce, which will speed productivity and competitiveness, thereby expanding trade."

Evans promised that the Department of Commerce will remain very active in "connecting U.S. businesses to global digital economy."

"We'll create the right environment by focusing on keeping the Internet open to private sector driven global growth, and by offering programs that promote e-commerce and increase trade through the use of technology," he explained.

Evans said he would be working closely with United States Trade Representative Robert Zoellick to "insist on strong compliance and strict enforcement of trade agreements, whether we're talking free trade or making sure our anti-dumping and countervailing laws are enforced."

Evans also mentioned that Japan needs to do more regarding market opening and deregulation; the administration needs to have Congress ratify the U.S.-Vietnam bilateral trade agreement; and China needs to complete the process necessary for becoming a member of the WTO.

Following is the text of Evans's remarks, as prepared for delivery:

(begin text)

Remarks by
Donald L. Evans
U.S. Secretary of Commerce
Before the
14th Annual Asia Pacific Business Outlook Conference
March 22, 2001
Los Angeles, California

(As prepared for delivery.)

It's a pleasure to join you this morning. I welcome the opportunity to share thoughts on how I see this administration working with you to create an environment in which American businesses and American capital can thrive...especially in trade and commerce abroad.

Before I jump into that ... it might be useful to briefly tell you a little about myself and how I ended up in Washington, which is a long way from my home in Midland, Texas.

American Dream

Midland is where I got my start in the oil business in the mid-1970s. It's also where I met President Bush when we both set out to pursue the American Dream.

I spent my formative years in business working in the oil fields of west Texas, where I did everything from laboring as a roughneck on drilling rigs to working as an engineer and manager, and running a multi-billion dollar oil and gas company at 33 years old.

So ... I offer my comments today not as an economist, not as a theoretician and not as a policy wonk. Like you, I'm a businessperson.

Trust and Certainty in Government

And like all in business, you're bottom line people ... you want to know what you can expect from this administration. Expect "trust" and expect "certainty."

Frankly, it's my strong belief that the basis for any successful or effective relationship, partnership or enterprise is grounded in trust and certainty. Therefore, it follows that if we don't have a government we can trust and count on ... we won't have a very effective government.

I'm very proud to be working with a President and a friend who I know - from more than 30 years experience - the American people can trust ... who will deliver what he promises and won't mince words. When President Bush says, "Yes," he means, "Yes." And when he says "No," he means "No."

With that said, it should be apparent that this President will sit down with people and discuss differences and entertain a wide range of suggestions on policy matters ... as will I. This administration has rejected the "zero sum game" mentality. That's the mentality that says for me to win, you have to lose. It's wrong and counterproductive. On far too many occasions, no one wins.

Public service is just what it says it is - "Serving the Public." It is our duty ... our responsibility to listen to others and lead. Lead with the attitude that says this is not a zero sum game and that nobody wins unless we all win.

It's this rejection of the "I win, you lose" approach to government ... as well as the trust and certainty I can promise you from the President that makes me delighted to serve in this administration and serve the American people.

This president will now and in the future be seen as a leader with integrity, dignity and honor ... and is serving the people for the right reasons.

Trade Policy a Priority

As you know, the President emphasized the value of trade and commerce throughout his campaign and he has maintained a strong focus on them since assuming office. He fully understands and appreciates the importance of foreign commerce having been governor of a border state where he worked closely with Mexico on many issues, including trade. So he knows full well that exports accounted for more than one-quarter of U.S. economic growth over the past decade and support an estimated 12 million American jobs.

It's my charge and mission to bring vision, energy and a strong commitment for promoting ways to expand trade opportunities as globalization continues.

One area in particular in which the Department has been and will remain very active is connecting U.S. businesses to the global digital economy. We'll create the right environment by focusing on keeping the Internet open to private sector driven global growth, and by offering programs that promote e-commerce and increase trade through the use of technology.

At this conference you will also meet and hear from our Senior Commercial Officers in the Asia Pacific Region. These officers and their country teams worked with more than 13,000 U.S. businesses last year. They are part of a worldwide network and helped facilitate sales of more than $21 billion. They are in the audience this morning and I'd like them to stand so we know who are they are.

Indeed, we at the Department plan on being very active advocates for the American people in the trade arena. And that includes the Asia Pacific.

Bush Administration Trade Policy

Clearly, our aims in the Asia Pacific region must fit within the broader outline of our trade policy agenda ... one that leans heavily on the promotion of open markets. And this administration is strongly committed to liberalizing trade for three important reasons:

One ... it is no coincidence that the longest period of sustained economic growth in our history has followed the negotiation of trade liberalizing measures like the North American Free Trade Agreement (NAFTA) and the Uruguay Round Agreement that created the World Trade Organization (WTO) ... approaches which ensure that the private sector - not government - is the dominant presence in trade relations.

The government's role, then, is to create the environment for the private sector to do what it does best ... create jobs and wealth. In the case of NAFTA, it has been the businesses and workers - American, Mexican and Canadian - who have made this happen.

Economic opportunity is a very good reason to support liberalized trade, but there are broader considerations. Free trade also promotes freedom. As President Bush has said: "Economic freedom creates habits of liberty. And habits of liberty create expectations of democracy." The history of the past century shows that as less developed nations have grown wealthier, their peoples have seen improvements in education and greater access to information and knowledge. These are what make freedom flourish.

And thirdly ... open markets and liberalized trade promote communication, understanding and opportunity, all of which contribute positively to the security of nations.

Setting Trade Policy in Motion

We have set a clear direction ... now how do we get where we want to go? The first thing we have to do is secure presidential trade promotion authority. Each of the past five Presidents has had trade promotion authority to negotiate far-reaching trade agreements. President Bush needs that same authority. It serves no one's interest - from business to labor to the environment - to keep America's negotiators on the sidelines.

Granting this authority relates to the trust and certainty issues I touched on earlier. The Constitution invests Congress with the power "To regulate Commerce with foreign Nations." We're asking Congress to trust us with a grant of authority that will allow the President to act. We understand the trust that will be invested in us. We accept the charge and offer the assurance that this trust will be well placed.

And looking down the road at what we have on our plate ... we must launch a new round of global trade negotiations in the WTO; complete the vision of free trade in the Americas; work closely with the European Union to fulfill the promise of a stronger Trans-Atlantic marketplace; and, of special interest to this group, the Bush Administration will seek market openings and trade expansion in the Asia Pacific region.

Free Trade With Asia Pacific Community

On this score, the United States, as you well know, has had a continuous and intense negotiating agenda for this area of the world. A quick review shows a program of market opening and deregulation in Japan. More needs to be done here, keeping in mind the problems plaguing the Japanese economy.

We have made progress with bilateral trade in the region, especially with Vietnam. We must now get Congress to ratify our bilateral agreement with Vietnam.

Negotiations have also been active and successful with members of the Association of Southeast Asian Nations (ASEAN) and with China, including the bilateral agreement on that nation's accession to the WTO. China needs to complete the accession process so Americans and Chinese can benefit from this major market opening.

We have also accomplished very significant work with the Asian Pacific Economic Cooperation forum (APEC), establishing this organization as a progressive force for liberalization and open markets. Accomplishments of note include the "Bogor vision" to establish free and open trade and investment in the region by 2010 for industrialized economies and by 2020 for developing nations. Also, the call by APEC leaders for the conclusion of the Information Technology Agreement (ITA) in the WTO acted as a decisive catalyst toward successful completion of that agreement.

Now, we need to take concrete steps to make free trade happen in APEC, and to ensure the spread in the region of new tools like e-commerce, which will speed productivity and competitiveness, thereby expanding trade.

As I mentioned, I'm a businessman and I can tell you that these market openings will lower tariffs; remove non-tariff barriers; and allow access to markets and sectors that had been closed. That's all a plus for your bottom line.

As we pursue trade openings and work with our Asia Pacific counterparts, you and our trading partners can trust us to insist on a level playing field. In this regard, we will insist on strong compliance and strict enforcement of trade agreements, whether we're talking free trade or making sure our anti-dumping and countervailing laws are enforced. I will work closely with Robert Zoellick, our Trade Representative, to bring this about. Mr. Zoellick and I want ... and we will have a clean and fair game.

Trade Opportunities and Change

Now ... moving back within our own borders and considering the changes brought by freer, more open trade regimes, we have to understand that even with all the benefits promised - and many delivered - change brings with it a fear of uncertainty. This is a very human reaction.

If we are to enjoy the benefits and progress of greater trade access, we must reassure Americans that the benefits are real and long lasting. One of the best ways to do that is to provide them with the tools to profit from change. To this end, President Bush has made education a top priority. Clearly, America's global leadership, technology advances and quality of life depend on an educated workforce.

Last year, however, our nation produced just 62,000 bachelor's level engineers. There were another 10,500 computer science graduates. The need was more than twice that number, which is why industry worked so hard to raise the cap on H-1B visas to get engineers and scientists into this country. But that is a short-term solution to a long-term need. So at Commerce, we've been working closely with industry and educators to find ways to interest more young people, especially women and minorities, in engineering and science careers.

Tax reform is another high priority for President Bush, who believes strongly that American workers should keep more of the money they earn in our expanding economy. The House has already passed the core of the President's tax cut package and the Senate is up next. I hope we can count on your support for quick action and for a clean result. We don't want to see "ornaments" attached to the tax reforms that will dilute or distort them. This would have the effect of showing favoritism to some and creating problems for others. Government shouldn't be in the business of picking winners and losers.

Exciting Times

We are fortunate to have the opportunities we enjoy today. These are exciting times. The developments in information technology and transportation are changing the way we do business and, in some cases, changing business altogether. The distances and wariness that often kept peoples and nations apart are slowly but definitely disappearing and hands are extending across borders and oceans.

The Bush Administration is determined - in the President's words - to "lead toward a world that trades in freedom." And I am determined to use the responsibilities I exercise as Secretary of Commerce to help make that possible. I look forward to working with you to make sure that the opportunities are fully developed and extended to as many people as possible.

Thank you for allowing me to spend this time with you this morning.

(end text)

(Distributed by the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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