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Originally Processed With FOIA(s): FOIA Number: S S FOIA MARKER This is not a textual record. This is used as an administrative marker by the George Bush Presidential Library Staff. Record Group/Collection: George H.W. Bush Presidential Records Collection/Office of Origin: Speechwriting, White House Office of Series: Speech File Draft Files Subseries: Chron File, 1989-1993 OA/ID Number: 13561 Folder ID Number: 13561-011 Folder Title: Hispanic Free Trade Breakfast 4/8/91 [OA 6031] Stack: Row: Section: Shelf: Position: G 26 16 7 4 Grant/Dooley 91 MAR 3 Pl: 02 April 1, 1991 A:Mextrade / Draft six PRESIDENTIAL REMARKS: HISPANIC FREE TRADE BREAKFAST THE HOUSTONIAN MONDAY, APRIL 8, 1991 TIME? ((Acknowledgements)) Good morning. I've been looking forward to meeting with you today, because I want to discuss two issues important to us all: America's ability to compete in the global marketplace and our ability to negotiate with our trading partners. I've said many times that the hard work of freedom awaits us. Today, I've come to ask your help in that challenge. Last month, I asked Congress to extend our "fast track" authority in trade negotiations. This mechanism lets our negotiators assure their counterparts that agreements they reach at the bargaining table will be the same ones voted on at home. It makes us good for our word. Fast-track doesn't affect Congress' power to accept or reject treaties. It just prevents changing agreements we have reached, and forcing everyone involved to start from scratch. We need fast track now to pursue vital trade pacts -- the North American Free Trade Agreement, the Uruguay Round and the Enterprise for the Americas Initiative. If we lose our fast track authority, we lose all three of those agreements. We lose trade. We surrender our role as a world leader and role model. Those who oppose fast track cite a variety of issues -- wage rates, environmental quality, health and safety concerns. 2 We care about those, too. And we're working on them, with a step-by-step plan to resolve each and every challenge. Here's the key: A vote against fast-track is a vote against things we all hold dear -- growth in other lands -- prosperity at home. It ignores the dramatic and wonderful changes in the world economy. We want to play a leading role in that emerging, exciting world; we don't want to hide from it. We want to join in the thrilling business of innovation; we don't want to chain people to outmoded technologies and ideas. Right now, we have the chance to expand opportunity and economic growth from the Yukon the the Yucatan. The North American Free Trade Agreement would link us with our largest trading partner, Canada, and our third-largest partner, Mexico. It would create the largest, richest trade zone on earth -- 360 million consumers in a market that generates $6 trillion in output a year. A unified North American market would let us all build on our strengths. It would provide more and better jobs for U.S. workers. It would stimulate price competition, lower consumer prices, improve product quality. If you want to talk about a compelling fairness issue, consider this: The agreement would make necessities such as food and clothing more affordable, and more available to our poorest citizens. It would raise productivity and produce a higher standard of living throughout the continent. 3 Let me illustrate the stakes involved in the fast-track debate by discussing the Mexican component of the North American Free Trade Agreement. Trade with Mexico has helped both our countries. Just four years ago, we had a $91 million trade deficit with Mexico. Today, we enjoy a $28 billion surplus. This turnaround took place because Mexican President Carlos Salinas believes in free trade. He has slashed tariff rates for some goods from 100 percent to 10 percent. As a result, our exports to Mexico have doubled in the past four years. That export boom has created 320,000 new jobs in the United States, most in the areas of design, manufacturing and engineering. Each additional billion dollars in exports creates 20,000 new jobs here in the United States. Now, I don't have to tell anyone in this room about Mexico's market potential -- 80 million consumers who want to buy our goods. Nor do I have to tell you that as Mexico grows and prospers, it will need even more of the goods we're best at producing -- computers, manufacturing equipment, high-tech and high-value products. Unfortunately, we have a tough fight ahead of us. One of our Congressional opponents said the other day, "My concern is that our trade negotiators keep uppermost in their mind the impact of this agreement on American jobs, American companies, and American exports." /// I couldn't agree more. 4 Let's talk about his concerns. We've already seen what the reduction in Mexican tariffs has done for American exports. A free-trade agreement would eliminate the remaining tariffs entirely. That would stimulate exports, create new jobs, generate wealth and hope on both sides of the border. Let's take a look at the impact on American companies. When trade barriers vanish, goods flow freely across borders. Investment flows freely across borders. And everybody -- businessmen and workers, to farmers and consumers -- reaps the benefits of growth. Consider the environment: The North American Free Trade Agreement fits into a winning strategy for improving environmental quality. Opponents of fast-track and the trade pacts forget that prosperity offers the surest road to worker safety, public health and environmental quality. This Administration wants to ensure that Mexican economic growth goes hand in hand with environmental protection. Our E.P.A. is already assisting the Salinas government with its environmental programs. President Salinas has shown he's serious about cleaning up the environment -- by requiring all new cars to have catalytic converters and recently by shutting down Mexico's largest oil refinery for pollution violations. I believe that President Salinas cares deeply about his nation and its people, and that he means business when he says he wants to clean up Mexico's air and water. 5 Finally, consider the matter of working conditions in Mexico. The trade surplus has caused Mexican wages to rise very quickly over the last few years, and produced no tangible reduction in American wages. That being the case, someone ought to ask the opponents of fast track why they oppose prosperity in Mexico. Someone should ask why they oppose letting our neighbors enjoy the benefits of progress. Ask them what is wrong with increased productivity throughout the continent. And ask them what's wrong with a more stable Mexico. As you know, Mexico is in the midst of a brain drain. It already graduates more engineers per capita than the U.S. does -- yet more and more good workers who can't find jobs head for the border every day. A free-trade pact would encourage investment, create jobs, lift wages and give talented Mexican citizens opportunites they don't enjoy today. A stronger Mexico, in turn, means a stronger United States, and a stronger North American alliance. So you see, we have much to gain from extending fast track -- a new era of open, free and fair trade -- a future of unprecedented economic growth and regional harmony. The vote on fast-track -- and on the trade agreements -- really is a vote on what kind of America we want to build. A "yes" vote expresses confidence in American know-how and ingenuity. It says we believe in Mexico's ability to adapt to a level economic playing field. Free and open markets let people 6 pursue their dreams by competing against other dreamers, entrepreneurs. As with most good things in life, competition involves risk. But we always have been a nation of risk-takers, adventurers. Our forefathers transformed a rough wilderness into an industrial superpower. We have created technologies and products unlike any others produced in human history. We have placed the wisdom of the ages within reach of anyone who can operate a computer. We are the world's largest trader, and we have nothing to fear but the fear-mongers themselves. // Opponents of fast track and the Free Trade Agreement like to focus on envy, suspicion, fear -- sentiments unworthy of us as a people. They like to pretend that the world has not moved into a new era of international competition and cooperation. They seem to be the only ones who haven't learned that defeatism produces defeat, while confidence and self-reliance produce greatness. We stand ready to seize the opportunities that the new world economy offers us. With your help, I know we can conquer the demagogues of defeat. // Thank you for your support, and God bless our great country. # # # Grant/Dooley April 4, 1991 Draft eight 11:55 a.m. PRESIDENTIAL REMARKS: HISPANIC FREE TRADE BREAKFAST THE HOUSTONIAN MONDAY, APRIL 8, 1991 8 a.m. ( (Acknowledgements)) Good morning. I've been looking forward to meeting with you today, because I want to discuss two issues important to us all: America's ability to compete in the global marketplace and our ability to negotiate with our trading partners. I've said many times that the hard work of freedom awaits us. Now, I'm asking for your help in that challenge. Last month, I asked Congress to support our "fast track" authority in trade negotiations. Fast track is a way of assuring our trading counterparts that the agreements they reach at the bargaining table with our negotiators will be the same ones reviewed by our Congress. Fast-track doesn't affect Congress' power to accept or reject trade agreements. But it does prevent llth-hour changes to agreements we have reached, changes that force everyone involved to start from scratch. We need fast track authority to pursue vital trade objectives -- the North American Free Trade Agreement, the Uruguay Round and the Enterprise for the Americas Initiative. If we lose our fast track authority, we lose any hope of achieving 2 these three agreements. We lose trade. We lose jobs and jeopardize economic growth. Here's the key: A vote against fast-track is a vote against things we all hold dear -- prosperity at home -- growth in other lands. It ignores the dramatic and wonderful changes in the world economy. We want to play a leading role in that emerging, exciting world; we don't want to hide from it. We want to join in the thrilling business of innovation; we don't want to chain people to outmoded technologies and ideas. Right now, we have the chance to expand opportunity and economic growth from the Yukon to the Yucatan. Think of it: The North American Free Trade Agreement would link us with our largest trading partner, Canada, and our third-largest partner, Mexico. It would create the largest, richest trade zone on earth -- 360 million consumers in a market that generates $6 trillion in output a year. A unified North American market would let each of our countries build on our strengths. It would provide more and better jobs for U.S. workers. It would stimulate price competition, lower consumer prices, improve product quality. The agreement would make necessities such as food and clothing more affordable, and more available to our poorest citizens. It would raise productivity and produce a higher standard of living throughout the continent. 3 Let me illustrate the stakes involved in the fast-track debate by discussing the Mexican component of the North American Free Trade Agreement. Trade with Mexico has helped both our countries. Just four years ago, we had a $4.9 billion trade deficit with Mexico. Since then, we have cut that deficit by two-thirds, to $1.8 billion. This turnaround took place in part because Mexican President Carlos Salinas believes in free trade. He has slashed tariff rates for some goods from 100 percent to 10 percent. One result: Our exports to Mexico have increased 130 percent in the past four years. This export boom has created more than 300,000 new jobs in the United States. And each additional billion dollars in exports creates 20,000 new jobs here in the United States. Now, I don't have to tell anyone in this room about Mexico's market potential -- 85 million consumers who want to buy our goods. Nor do I have to tell you that as Mexico grows and prospers, it will need even more of the goods we're best at producing -- computers, manufacturing equipment, high-tech and high-value products. Unfortunately, we have a tough fight ahead of us. One member of Congress the other day expressed his concern "that our trade negotiators keep uppermost in their mind the impact of this agreement on American jobs, American companies, and American exports." Other members of Congress say they worry about wage rates, environmental quality, and health and safety issues. /// I couldn't agree more. 4 Let's talk about those concerns. We've already seen what the reduction in Mexican tariffs has done for American exports. A free-trade agreement would eliminate the remaining tariffs entirely. That would stimulate exports, create new jobs, generate wealth and hope on both sides of the border. Let's take a look at the impact on American companies. When trade barriers vanish, goods flow freely across borders. And everybody -- businessmen and workers, to farmers and consumers - - reaps the benefits of growth. Consider the environment: The North American Free Trade Agreement fits into a winning strategy for improving environmental quality. Opponents of fast-track and the trade pacts forget that prosperity offers the surest road to worker safety, public health and environmental quality. This Administration wants to ensure that Mexican economic growth goes hand in hand with environmental protection. Our E.P.A. is already assisting the Salinas government with its environmental programs. President Salinas has shown he's serious about cleaning up the environment -- by requiring all new cars to have catalytic converters and recently by shutting down Mexico's largest oil refinery because it was polluting the air. I believe that President Salinas cares deeply about his nation and its people, and that he means business when he says he wants to clean up Mexico's air and water. Finally, consider the matter of working conditions in Mexico. As our trade with Mexico has grown, so have the wages of 5 Mexican workers. Indeed, Mexican wages have risen very quickly in recent years, with no tangible impact on American pay scales. That being the case, someone ought to ask the opponents of fast track why they oppose prosperity in Mexico. Someone should ask why they oppose letting our neighbors enjoy the benefits of progress. Ask them what is wrong with increased productivity throughout the continent. And ask them what's wrong with a more stable Mexico. A free-trade pact would encourage investment, create jobs, lift wages and give talented Mexican citizens opportunities they don't enjoy today. A stronger Mexico, in turn, means a stronger United States, and a stronger North American alliance. So you see, we have much to gain from extending fast track -- a new era of open, free and fair trade -- a future of unprecedented economic growth and regional harmony. As with most good things in life, competition involves risk. But we always have been. a nation of risk-takers, adventurers. Our forefathers transformed a rough wilderness into an industrial superpower. We have created technologies and products unlike any others produced in human history. We have placed the wisdom of the ages within reach of anyone who can operate a computer. The vote on fast-track really is a vote on what kind of America we want to build. A "yes" vote expresses confidence in American know-how and ingenuity. It says we believe in ourselves. 6 Indeed, as we prepare to join a world linked primarily by economic / not military / competition, we have nothing to fear but the fear-mongers themselves. // They seem to be the only ones who haven't learned lately that defeatism produces defeat, while confidence and self-reliance produce greatness. We must seize the opportunities that the new world economy offers us. With your help, I know we will. // Thank you for your support, and God bless our great country. # # # THE WHITE HOUSE April WASHINGTON 31 APR 8 A9:42 42 MEMORANDUM FOR TONY SNOW FROM: ROGER B. PORTER RBP SUBJECT: Presidential Remarks for the Hispanic Free Trade Breakfast As requested, we have reviewed the attached Presidential remarks for the Hispanic Free Trade breakfast and have indicated comments on pages one and two of the attached draft. Attachment c: Phillip D. Brady Document No. 225667SS WHITE HOUSE STAFFING MEMORANDUM DATE: 4/2/91 ACTION/CONCURRENCE/COMMENT DUE BY: WEDNESDAY 4/3/91 2:00 SUBJECT: PRESIDENTIAL REMARKS: HISPANIC FREE TRADE BREAKFAST ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN ROGICH BRADY UNTERMEYER CARD ROGERS DEMAREST SNOW FITZWATER GRAY HOLIDAY REMARKS: Please forward your comments directly to Tony Snow, Rm. 122, x2930, no later than 2:00 p.m., Wednesday, April 3, with a copy to this office. Thank you. RESPONSE: PHILLIP D. BRADY Assistant to the President and Staff Secretary Ext. 2702 Grant/Dooley April 1, 1991 - 2 PM 1: 13 A:Mextrade / Draft six PRESIDENTIAL REMARKS: HISPANIC FREE TRADE BREAKFAST THE HOUSTONIAN MONDAY, APRIL 8, 1991 TIME? ((Acknowledgements)) Good morning. I've been looking forward to meeting with you today, because I want to discuss two issues important to us all: America's ability to compete in the global marketplace and our ability to negotiate with our trading partners. I've said many times that the hard work of freedom awaits us. Today, I've come to ask your help in that challenge. Last month, I asked Congress to extend our "fast track" authority in trade negotiations. This mechanism lets our negotiators assure their counterparts that agreements they reach at the bargaining table will be the same ones voted on at home. It makes us good for our word. Fast-track doesn't affect Congress' power to accept or reject treaties. It just prevents changing agreements we have reached, and forcing everyone involved to start from scratch. We need fast track now to pursue vital trade pacts -- the North American Free Trade Agreement, the Uruguay Round and the Enterprise for the Americas Initiative. If we lose our fast track authority, we lose all three of those efforts. agreements. We lose 1 trade. We surrender our role as a world leader and role model. Those who oppose fast track cite a variety of issues -- wage rates, environmental quality, health and safety concerns. 2 We care about those, too. And we're working on them, with a step-by-step plan to resolve each and every challenge. Here's the key: A vote against fast-track is a vote against things we all hold dear -- growth-in To other Tands prosperity at both here and in other lands home It ignores the dramatic and wonderful changes in the world economy. We want to play a leading role in that emerging, exciting world; we don't want to hide from it. We want to join in the thrilling business of innovation; we don't want to chain people to outmoded technologies and ideas. Right now, we have the chance to expand opportunity and economic growth from the Yukon the the Yucatan. The North American Free Trade Agreement would link us with our largest trading partner, Canada, and our third-largest partner, Mexico. It would create the largest, richest trade zone on earth -- 360 million consumers in a market that generates $6 trillion in output a year. A unified North American market would let us all build on our strengths. It would provide more and better jobs for U.S. workers. It would stimulate price competition, lower consumer prices, improve product quality. If you want to talk about a compelling fairness issue, consider this: The agreement would make necessities such as food and clothing more affordable, and more available to our poorest citizens. It would raise productivity and produce a higher standard of living throughout the continent. 3 Let me illustrate the stakes involved in the fast-track debate by discussing the Mexican component of the North American Free Trade Agreement. Trade with Mexico has helped both our countries. Just four years ago, we had a $91 million trade deficit with Mexico. Today, we enjoy a $28 billion surplus. This turnaround took place because Mexican President Carlos Salinas believes in free trade. He has slashed tariff rates for some goods from 100 percent to 10 percent. As a result, our exports to Mexico have doubled in the past four years. That export boom has created 320,000 new jobs in the United States, most in the areas of design, manufacturing and engineering. Each additional billion dollars in exports creates 20,000 new jobs here in the United States. Now, I don't have to tell anyone in this room about Mexico's market potential -- 80 million consumers who want to buy our goods. Nor do I have to tell you that as Mexico grows and prospers, it will need even more of the goods we're best at producing -- computers, manufacturing equipment, high-tech and high-value products. Unfortunately, we have a tough fight ahead of us. One of our Congressional opponents said the other day, "My concern is that our trade negotiators keep uppermost in their mind the impact of this agreement on American jobs, American companies, and American exports." /// I couldn't agree more. 4 Let's talk about his concerns. We've already seen what the reduction in Mexican tariffs has done for American exports. A free-trade agreement would eliminate the remaining tariffs entirely. That would stimulate exports, create new jobs, generate wealth and hope on both sides of the border. Let's take a look at the impact on American companies. When trade barriers vanish, goods flow freely across borders. Investment flows freely across borders. And everybody -- businessmen and workers, to farmers and consumers -- reaps the benefits of growth. Consider the environment: The North American Free Trade Agreement fits into a winning strategy for improving environmental quality. Opponents of fast-track and the trade pacts forget that prosperity offers the surest road to worker safety, public health and environmental quality. This Administration wants to ensure that Mexican economic growth goes hand in hand with environmental protection. Our E.P.A. is already assisting the Salinas government with its environmental programs. President Salinas has shown he's serious about cleaning up the environment -- by requiring all new cars to have catalytic converters and recently by shutting down Mexico's largest oil refinery for pollution violations. I believe that President Salinas cares deeply about his nation and its people, and that he means business when he says he wants to clean up Mexico's air and water. 5 Finally, consider the matter of working conditions in Mexico. The trade surplus has caused Mexican wages to rise very quickly over the last few years, and produced no tangible reduction in American wages. That being the case, someone ought to ask the opponents of fast track why they oppose prosperity in Mexico. Someone should ask why they oppose letting our neighbors enjoy the benefits of progress. Ask them what is wrong with increased productivity throughout the continent. And ask them what's wrong with a more stable Mexico. As you know, Mexico is in the midst of a brain drain. It already graduates more engineers per capita than the U.S. does -- yet more and more good workers who can't find jobs head for the border every day. A free-trade pact would encourage investment, create jobs, lift wages and give talented Mexican citizens opportunites they don't enjoy today. A stronger Mexico, in turn, means a stronger United States, and a stronger North American alliance. So you see, we have much to gain from extending fast track -- a new era of open, free and fair trade -- a future of unprecedented economic growth and regional harmony. The vote on fast-track -- and on the trade agreements -- really is a vote on what kind of America we want to build. A "yes" vote expresses confidence in American know-how and ingenuity. It says we believe in Mexico's ability to adapt to a level economic playing field. Free and open markets let people 6 pursue their dreams by competing against other dreamers, entrepreneurs. As with most good things in life, competition involves risk. But we always have been a nation of risk-takers, adventurers. Our forefathers transformed a rough wilderness into an industrial superpower. We have created technologies and products unlike any others produced in human history. We have placed the wisdom of the ages within reach of anyone who can operate a computer. We are the world's largest trader, and we have nothing to fear but the fear-mongers themselves. // Opponents of fast track and the Free Trade Agreement like to focus on envy, suspicion, fear -- sentiments unworthy of us as a people. They like to pretend that the world has not moved into a new era of international competition and cooperation. They seem to be the only ones who haven't learned that defeatism produces defeat, while confidence and self-reliance produce greatness. We stand ready to seize the opportunities that the new world economy offers us. With your help, I know we can conquer the demagogues of defeat. // Thank you for your support, and God bless our great country. # # # Document No. 225667SS WHITE HOUSE STAFFING MEMORANDUM 91 MAR 3 P2. DATE: 4/2/91 ACTION/CONCURRENCE/COMMENT DUE BY: WEDNESDAY 4/3/91 2:00 SUBJECT: PRESIDENTIAL REMARKS: HISPANIC FREE TRADE BREAKFAST ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE NI SUNUNU NEWMAN SCOWCROFT PORTER DARMAN ROGICH N/C BRADY UNTERMEYER CARD ROGERS DEMAREST SNOW FITZWATER GRAY HOLIDAY REMARKS: Please forward your comments directly to Tony Snow, Rm. 122, x2930, no later than 2:00 p.m., Wednesday, April 3, with a copy to this office. Thank you. RESPONSE: PHILLIP D. BRADY Assistant to the President and Staff Secretary Ext. 2702 Grant/Dooley April 1, 195APR - 2 PM 1: 13 A:Mextrade / Draft six PRESIDENTIAL REMARKS: HISPANIC FREE TRADE BREAKFAST THE HOUSTONIAN MONDAY, APRIL 8, 1991 TIME? ((Acknowledgements)) Good morning. I've been looking forward to meeting with you today, because I want to discuss two issues important to us all: America's ability to compete in the global marketplace and our ability to negotiate with our trading partners. I've said many times that the hard work of freedom awaits us. Today, I've come to ask your help in that challenge. Last month, I asked Congress to extend our "fast track" authority in trade negotiations. This mechanism lets our negotiators assure their counterparts that agreements they reach at the bargaining table will be the same ones voted on at home. It makes us good for our word. Fast-track doesn't affect Congress' power to accept or reject treaties. It just prevents changing agreements we have reached, and forcing everyone involved to start from scratch. We need fast track now to pursue vital trade pacts -- the North American Free Trade Agreement, the Uruguay Round and the Enterprise for the Americas Initiative. If we lose our fast track authority, we lose all three of those agreements. We lose trade. We surrender our role as a world leader and role model. Those who oppose fast track cite a variety of issues -- wage rates, environmental quality, health and safety concerns. 2 We care about those, too. And we're working on them, with a step-by-step plan to resolve each and every challenge. Here's the key: A vote against fast-track is a vote against things we all hold dear -- growth in other lands -- prosperity at home. It ignores the dramatic and wonderful changes in the world economy. We want to play a leading role in that emerging, exciting world; we don't want to hide from it. We want to join in the thrilling business of innovation; we don't want to chain people to outmoded technologies and ideas. Right now, we have the chance to expand opportunity and economic growth from the Yukon the the Yucatan. The North American Free Trade Agreement would link us with our largest trading partner, Canada, and our third-largest partner, Mexico. It would create the largest, richest trade zone on earth -- 360 million consumers in a market that generates $6 trillion in output a year. A unified North American market would let us all build on our strengths. It would provide more and better jobs for U.S. workers. It would stimulate price competition, lower consumer prices, improve product quality. If you want to talk about a compelling fairness issue, consider this: The agreement would make necessities such as food and clothing more affordable, and more available to our poorest citizens. It would raise productivity and produce a higher standard of living throughout the continent. 3 Let me illustrate the stakes involved in the fast-track debate by discussing the Mexican component of the North American Free Trade Agreement. Trade with Mexico has helped both our countries. Just four years ago, we had a $91 million trade deficit with Mexico. Today, we enjoy a $28 billion surplus. This turnaround took place because Mexican President Carlos Salinas believes in free trade. He has slashed tariff rates for some goods from 100 percent to 10 percent. As a result, our exports to Mexico have doubled in the past four years. That export boom has created 320,000 new jobs in the United States, most in the areas of design, manufacturing and engineering. Each additional billion dollars in exports creates 20,000 new jobs here in the United States. Now, I don't have to tell anyone in this room about Mexico's market potential -- 80 million consumers who want to buy our goods. Nor do I have to tell you that as Mexico grows and prospers, it will need even more of the goods we're best at producing -- computers, manufacturing equipment, high-tech and high-value products. Unfortunately, we have a tough fight ahead of us. One of our Congressional opponents said the other day, "My concern is that our trade negotiators keep uppermost in their mind the impact of this agreement on American jobs, American companies, and American exports." /// I couldn't agree more. 4 Let's talk about his concerns. We've already seen what the reduction in Mexican tariffs has done for American exports. A free-trade agreement would eliminate the remaining tariffs entirely. That would stimulate exports, create new jobs, generate wealth and hope on both sides of the border. Let's take a look at the impact on American companies. When trade barriers vanish, goods flow freely across borders. Investment flows freely across borders. And everybody -- businessmen and workers, to farmers and consumers -- reaps the benefits of growth. Consider the environment: The North American Free Trade Agreement fits into a winning strategy for improving environmental quality. Opponents of fast-track and the trade pacts forget that prosperity offers the surest road to worker safety, public health and environmental quality. This Administration wants to ensure that Mexican economic growth goes hand in hand with environmental protection. Our E.P.A. is already assisting the Salinas government with its environmental programs. President Salinas has shown he's serious about cleaning up the environment -- by requiring all new cars to have catalytic converters and recently by shutting down Mexico's largest oil refinery for pollution violations. I believe that President Salinas cares deeply about his nation and its people, and that he means business when he says he wants to clean up Mexico's air and water. 5 Finally, consider the matter of working conditions in Mexico. The trade surplus has caused Mexican wages to rise very quickly over the last few years, and produced no tangible reduction in American wages. That being the case, someone ought to ask the opponents of fast track why they oppose prosperity in Mexico. Someone should ask why they oppose letting our neighbors enjoy the benefits of progress. Ask them what is wrong with increased productivity throughout the continent. And ask them what's wrong with a more stable Mexico. As you know, Mexico is in the midst of a brain drain. It already graduates more engineers per capita than the U.S. does -- yet more and more good workers who can't find jobs head for the border every day. A free-trade pact would encourage investment, create jobs, lift wages and give talented Mexican citizens opportunites they don't enjoy today. A stronger Mexico, in turn, means a stronger United States, and a stronger North American alliance. So you see, we have much to gain from extending fast track -- a new era of open, free and fair trade -- a future of unprecedented economic growth and regional harmony. The vote on fast-track -- and on the trade agreements -- really is a vote on what kind of America we want to build. A "yes" vote expresses confidence in American know-how and ingenuity. It says we believe in Mexico's ability to adapt to a level economic playing field. Free and open markets let people 6 pursue their dreams by competing against other dreamers, entrepreneurs. As with most good things in life, competition involves risk. But we always have been a nation of risk-takers, adventurers. Our forefathers transformed a rough wilderness into an industrial superpower. We have created technologies and products unlike any others produced in human history. We have placed the wisdom of the ages within reach of anyone who can operate a computer. We are the world's largest trader, and we have nothing to fear but the fear-mongers themselves. // Opponents of fast track and the Free Trade Agreement like to focus on envy, suspicion, fear -- sentiments unworthy of us as a people. They like to pretend that the world has not moved into a new era of international competition and cooperation. They seem to be the only ones who haven't learned that defeatism produces defeat, while confidence and self-reliance produce greatness. We stand ready to seize the opportunities that the new world economy offers us. With your help, I know we can conquer the demagogues of defeat. // Thank you for your support, and God bless our great country. # # # THE WHITE HOUSE WASHINGTON April 3, 1991 MEMORANDUM FOR THE PRESIDENT THROUGH: TONY SNOW TS FROM: MARY KATE GRANT mkg SUBJECT: HISPANIC FREE TRADE BREAKFAST I. SUMMARY Attached for your review are draft remarks for the breakfast meeting with Hispanic business leaders from the Houston community, to be held at 8:15 a.m. on Monday, April 8, 1991 at the Houstonian. You will address an audience of about 200. II. DISCUSSION In your remarks (12 minutes/cards), you make the case for extension of fast track authority, and answer the critics' concerns about it and the North American Free Trade Agreement. Grant/Dooley April 1, 1991 Draft seven 6:30 p.m. PRESIDENTIAL REMARKS: HISPANIC FREE TRADE BREAKFAST THE HOUSTONIAN MONDAY, APRIL 8, 1991 8 a.m. (Acknowledgements) ) Good morning. I've been looking forward to meeting with you today, because I want to discuss two issues important to us all: America's ability to compete in the global marketplace and our ability to negotiate with our trading partners. I've said many times that the hard work of freedom awaits us. Now, I'm asking for your help in that challenge. Last month, I asked Congress to support our "fast track" authority in trade negotiations. Fast track is a way of assuring our trading counterparts that the agreements they reach at the bargaining table with our negotiators will be the same ones reviewed by our Congress. Fast-track doesn't affect Congress' power to accept or reject trade agreenments. But it does prevent 11th-hour changes to agreements we have reached, changes that force everyone involved to start from scratch. We need fast track authority to pursue vital trade objectives -- the North American Free Trade Agreement, the Uruguay Round and the Enterprise for the Americas Initiative. If we lose our fast track authority, we lose any hope of achieving 2 these three agreements. We lose trade. We lose jobs and jeopardize economic growth. Here's the key: A vote against fast-track is a vote against things we all hold dear -- prosperity at home -- growth in other lands. It ignores the dramatic and wonderful changes in the world economy. We want to play a leading role in that emerging, exciting world; we don't want to hide from it. We want to join in the thrilling business of innovation; we don't want to chain people to outmoded technologies and ideas. Right now, we have the chance to expand opportunity and economic growth from the Yukon to the Yucatan. Think of it: The North American Free Trade Agreement would link us with our largest trading partner, Canada, and our third-largest partner, Mexico. It would create the largest, richest trade zone on earth -- 360 million consumers in a market that generates $6 trillion in output a year. A unified North American market would let each of our countries build on our strengths. It would provide more and better jobs for U.S. workers. It would stimulate price competition, lower consumer prices, improve product quality. The agreement would make necessities such as food and clothing more affordable, and more available to our poorest citizens. It would raise productivity and produce a higher standard of living throughout the continent. 3 Let me illustrate the stakes involved in the fast-track debate by discussing the Mexican component of the North American Free Trade Agreement. Trade with Mexico has helped both our countries. Just four years ago, we had a $4.9 billion trade deficit with Mexico. Since then, we have cut that deficit by two-thirds, to $1.8 billion. This turnaround took place in part because Mexican President Carlos Salinas believes in free trade. He has slashed tariff rates for some goods from 100 percent to 10 percent. One result: Our exports to Mexico have increased 130 percent in the past four years. This export boom has created more than 300,000 new jobs in the United States, most in the areas of design, manufacturing and engineering. And each additional billion dollars in exports creates 20,000 new jobs here in the United States. Now, I don't have to tell anyone in this room about Mexico's market potential -- 85 million consumers who want to buy our goods. Nor do I have to tell you that as Mexico grows and prospers, it will need even more of the goods we're best at producing -- computers, manufacturing equipment, high-tech and high-value products. Unfortunately, we have a tough fight ahead of us. One member of Congress the other day expressed his concern "that our trade negotiators keep uppermost in their mind the impact of this agreement on American jobs, American companies, and American exports." Other members of Congress say they worry about wage rates, environmental quality, and health and safety issues. /// 4 I couldn't agree more. Let's talk about those concerns. We've already seen what the reduction in Mexican tariffs has done for American exports. A free-trade agreement would eliminate the remaining tariffs entirely. That would stimulate exports, create new jobs, generate wealth and hope on both sides of the border. Let's take a look at the impact on American companies. When trade barriers vanish, goods flow freely across borders. Investment flows freely across borders. And everybody -- businessmen and workers, to farmers and consumers -- reaps the benefits of growth. Consider the environment: The North American Free Trade Agreement fits into a winning strategy for improving environmental quality. Opponents of fast-track and the trade pacts forget that prosperity offers the surest road to worker safety, public health and environmental quality. This Administration wants to ensure that Mexican economic growth goes hand in hand with environmental protection. Our E.P.A. is already assisting the Salinas government with its environmental programs. President Salinas has shown he's serious about cleaning up the environment -- by requiring all new cars to have catalytic converters and recently by shutting down Mexico's largest oil refinery for pollution violations. I believe that President Salinas cares deeply about his nation and its people, and that he means business when he says he wants to clean up Mexico's air and water. 5 Finally, consider the matter of working conditions in Mexico. As our trade with Mexico has grown, so have the wages of Mexican workers. Indeed, Mexican wages have risen very quickly in recent years, with no tangible impact on American pay scales. That being the case, someone ought to ask the opponents of fast track why they oppose prosperity in Mexico. Someone should ask why they oppose letting our neighbors enjoy the benefits of progress. Ask them what is wrong with increased productivity throughout the continent. And ask them what's wrong with a more stable Mexico. A free-trade pact would encourage investment, create jobs, lift wages and give talented Mexican citizens opportunities they don't enjoy today. A stronger Mexico, in turn, means a stronger United States, and a stronger North American alliance. So you see, we have much to gain from extending fast track -- a new era of open, free and fair trade -- a future of unprecedented economic growth and regional harmony. As with most good things in life, competition involves risk. But we always have been a nation of risk-takers, adventurers. Our forefathers transformed a rough wilderness into an industrial superpower. We have created technologies and products unlike any others produced in human history. We have placed the wisdom of the ages within reach of anyone who can operate a computer. The vote on fast-track -- and on the trade agreements -- really is a vote on what kind of America we want to build. A 6 "yes" vote expresses confidence in American know-how and ingenuity. It says we believe in ourselves. Indeed, as we prepare to join a world linked primarily by economic / not military / competition, we have nothing to fear but the fear-mongers themselves. // They seem to be the only ones who haven't learned lately that defeatism produces defeat, while confidence and self-reliance produce greatness. We must seize the opportunities that the new world economy offers us. With your help, I know we will. // Thank you for your support, and God bless our great country. # # # THE WHITE HOUSE WASHINGTON 91 APR -3 PM 7:29 April 3, 1991 MEMORANDUM FOR THE PRESIDENT THROUGH: TONY SNOW TS FROM: MARY KATE GRANT mkg SUBJECT: HISPANIC FREE TRADE BREAKFAST I. SUMMARY Attached for your review are draft remarks for the breakfast meeting with Hispanic business leaders from the Houston community, to be held at 8:15 a.m. on Monday, April 8, 1991 at the Houstonian. You will address an audience of about 200. II. DISCUSSION SIn your remarks (12 minutes/cards), you make the case for extension of fast track authority, and answer the critics' concerns about it and the North American Free Trade Agreement. Grant/Dooley April 1, 1991 Draft seven 6:30 p.m. PRESIDENTIAL REMARKS: HISPANIC FREE TRADE BREAKFAST THE HOUSTONIAN MONDAY, APRIL 8, 1991 8 a.m. ((Acknowledgements)) Good morning. I've been looking forward to meeting with you today, because I want to discuss two issues important to us all: America's ability to compete in the global marketplace and our ability to negotiate with our trading partners. I've said many times that the hard work of freedom awaits us. Now, I'm asking for your help in that challenge. Last month, I asked Congress to support our "fast track" authority in trade negotiations. Fast track is a way of assuring our trading counterparts that the agreements they reach at the bargaining table with our negotiators will be the same ones reviewed by our Congress. Fast-track doesn't affect Congress' power to accept or reject trade agreenments. But it does prevent 11th-hour changes to agreements we have reached, changes that force everyone involved to start from scratch. We need fast track authority to pursue vital trade objectives -- the North American Free Trade Agreement, the Uruguay Round and the Enterprise for the Americas Initiative. If we lose our fast track authority, we lose any hope of achieving 2 these three agreements. We lose trade. We lose jobs and jeopardize economic growth. Here's the key: A vote against fast-track is a vote against things we all hold dear -- prosperity at home -- growth in other lands. It ignores the dramatic and wonderful changes in the world economy. We want to play a leading role in that emerging, exciting world; we don't want to hide from it. We want to join in the thrilling business of innovation; we don't want to chain people to outmoded technologies and ideas. Right now, we have the chance to expand opportunity and economic growth from the Yukon to the Yucatan. Think of it: The North American Free Trade Agreement would link us with our largest trading partner, Canada, and our third-largest partner, Mexico. It would create the largest, richest trade zone on earth -- 360 million consumers in a market that generates $6 trillion in output a year. A unified North American market would let each of our countries build on our strengths. It would provide more and better jobs for U.S. workers. It would stimulate price competition, lower consumer prices, improve product quality. The agreement would make necessities such as food and clothing more affordable, and more available to our poorest citizens. It would raise productivity and produce a higher standard of living throughout the continent. 3 Let me illustrate the stakes involved in the fast-track debate by discussing the Mexican component of the North American Free Trade Agreement. Trade with Mexico has helped both our countries. Just four years ago, we had a $4.9 billion trade deficit with Mexico. Since then, we have cut that deficit by two-thirds, to $1.8 billion. This turnaround took place in part because Mexican President Carlos Salinas believes in free trade. He has slashed tariff rates for some goods from 100 percent to 10 percent. One result: Our exports to Mexico have increased 130 percent in the past four years. This export boom has created more than 300,000 new jobs in the United States, most in the areas of design, manufacturing and engineering And each additional billion dollars in exports creates 20,000 new jobs here in the United States. Now, I don't have to tell anyone in this room about Mexico's market potential -- 85 million consumers who want to buy our goods. Nor do I have to tell you that as Mexico grows and prospers, it will need even more of the goods we're best at producing -- computers, manufacturing equipment, high-tech and high-value products. Unfortunately, we have a tough fight ahead of us. One member of Congress the other day expressed his concern "that our trade negotiators keep uppermost in their mind the impact of this agreement on American jobs, American companies, and American exports." Other members of Congress say they worry about wage rates, environmental quality, and health and safety issues. /// 4 I couldn't agree more. Let's talk about those concerns. We've already seen what the reduction in Mexican tariffs has done for American exports. A free-trade agreement would eliminate the remaining tariffs entirely. That would stimulate exports, create new jobs, generate wealth and hope on both sides of the border. Let's take a look at the impact on American companies. When trade barriers vanish, goods flow freely across borders. Investment flows freely across borders. And everybody -- businessmen and workers, to farmers and consumers -- reaps the benefits of growth. Consider the environment: The North American Free Trade Agreement fits into a winning strategy for improving environmental quality. Opponents of fast-track and the trade pacts forget that prosperity offers the surest road to worker safety, public health and environmental quality. This Administration wants to ensure that Mexican economic growth goes hand in hand with environmental protection. Our E.P.A. is already assisting the Salinas government with its environmental programs. President Salinas has shown he's serious about cleaning up the environment -- by requiring all new cars to have catalytic converters and recently by shutting down Mexico's largest oil refinery for pollution violations. I believe that President Salinas cares deeply about his nation and its people, and that he means business when he says he wants to clean up Mexico's air and water. BECAUSE it WAS polating MARK 5 Finally, consider the matter of working conditions in Mexico. As our trade with Mexico has grown, so have the wages of Mexican workers. Indeed, Mexican wages have risen very quickly in recent years, with no tangible impact on American pay scales. That being the case, someone ought to ask the opponents of fast track why they oppose prosperity in Mexico. Someone should ask why they oppose letting our neighbors enjoy the benefits of progress. Ask them what is wrong with increased productivity throughout the continent. And ask them what's wrong with a more stable Mexico. A free-trade pact would encourage investment, create jobs, lift wages and give talented Mexican citizens opportunities they don't enjoy today. A stronger Mexico, in turn, means a stronger United States, and a stronger North American alliance. So you see, we have much to gain from extending fast track -- a new era of open, free and fair trade -- a future of unprecedented economic growth and regional harmony. As with most good things in life, competition involves risk. But we always have been a nation of risk-takers, adventurers. Our forefathers transformed a rough wilderness into an industrial superpower. We have created technologies and products unlike any others produced in human history. We have placed the wisdom of the ages within reach of anyone who can operate a computer. The vote on fast-track -and on the trade agreements really is a vote on what kind of America we want to build. A 6 "yes" vote expresses confidence in American know-how and ingenuity. It says we believe in ourselves. Indeed, as we prepare to join a world linked primarily by economic / not military / competition, we have nothing to fear but the fear-mongers themselves. // They seem to be the only ones who haven't learned lately that defeatism produces defeat, while confidence and self-reliance produce greatness. We must seize the opportunities that the new world economy offers us. With your help, I know we will. // Thank you for your support, and God bless our great country. # # # Research changes Page 3 Let me illustrate Trade with Mexico has helped both our countries. Just four years ago, we had a $4.9 billion trade deficit with Mexico. Since then, we have cut that deficit by two-thirds, to $1.8 billion. This turnaround took place because Mexican President Carlos Salinas believes in free trade. He has slashed tariff rates for some goods from 100 percent to 10 percent. As a result, our exports to Mexico have increased 130 percent in the past four years. That export boom has created 300,000 new jobs in the United States Now, I don't have to tell anyone in this room about Mexico's market potential -- 85 million consumers who want to buy our goods. new language is underlined Document No. 225667SS 91 MAR 4 AIOWHITE HOUSE STAFFING MEMORANDUM DATE: 4/2/91 ACTION/CONCURRENCE/COMMENT DUE BY: WEDNESDAY 4/3/91 2:00 SUBJECT: PRESIDENTIAL REMARKS: HISPANIC FREE TRADE BREAKFAST ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN ROGICH BRADY UNTERMEYER CARD ROGERS DEMAREST SNOW FITZWATER GRAY HOLIDAY REMARKS: Please forward your comments directly to Tony Snow, Rm. 122, x2930, no later than 2:00 p.m., . Wednesday, April 3, with a copy to this office. Thank you. RESPONSE: substations AA PHILLIP D. BRADY Assistant to the President and Staff Secretary Ext. 2702 N.B. Put times not rubers draft Grant/Dooley April 1, 1991 E2 PM 1: 13 A:Mextrade / Draft six PRESIDENTIAL REMARKS: HISPANIC FREE TRADE BREAKFAST THE HOUSTONIAN MONDAY, APRIL 8, 1991 TIME? ((Acknowledgements)) Good morning. I've been looking forward to meeting with you today, because I want to discuss two issues important to us all: America's ability to compete in the global marketplace and our ability to negotiate with our trading partners. I've said many times that the hard work of freedom awaits us. Today, I've come to ask your help in that challenge. Last month, I asked Congress to support extend our "fast track" Fast track means authority in trade negotiations. This mechanism lets our our trading negotiators assureytheir their counterparts that agreements they reach with our regotiators at the bargaining table will be the same ones voted on at home. by ow Congress. It makes us good for our word. Fast-track doesn't affect Congress' power to accept or But it does 1Ha hom changes to reject treaties, avoids It just prevents changing agreements we have already reached, and forcing everyone involved to start from scratch. We need fast track now to pursue vital trade pacts -- the North American Free Trade Agreement, the Uruguay Round and the Enterprise for the Americas Initiative, If we lose our fast any hope of achieving track authority, we lose all three of those agreements. We lose We lose jobs and jeopardye economic growth. trade. And We surrender our role as a world leader and role model. Those who oppose fast track cite a variety of issues -- nove wage rates, environmental quality, health and safety concerns. 2 We care about those, too. And we 're working on them, with a step-by-step plan to resolve each and every challenge. Here's the key: A vote against fast-track is a vote against things we all hold dear growth in other lands prosperity here at home. It ignores the dramatic and wonderful changes in the world economy. We want to play a leading role in that emerging, exciting world; we don't want to hide from it. We want to join in the thrilling business of innovation; we don't want to chain people to outmoded technologies and ideas. Right now, we have the chance to expand opportunity and economic growth from the Yukon the the Yucatan. The North Think American Free Trade Agreement would link us with our largest trading partner, Canada, and our third-largest partner, Mexico. It would create the largest, richest trade zone on earth -- 360 million consumers in a market that generates $6 trillion in output a year. A unified North American market would let us all build on our strengths. It would provide more and better jobs for U.S. workers. It would stimulate price competition, lower consumer prices, improve product quality. If you want to talk about a compelling fairness issue, consider this: The agreement would make necessities such as food and clothing more affordable, and more available to our poorest citizens. It would raise productivity and produce a higher standard of living throughout the continent. 3 Let me illustrate the stakes involved in the fast-track debate by discussing the Mexican component of the North American Free Trade Agreement. Trade with Mexico has helped both our countries. Just four years ago, we had a $91 million trade deficit with Mexico. Today, we enjoy a $28 billion surplus. import This turnaround took place because Mexican President Carlos Salinas believes in free trade. He has slashed tariff rates for some goods from 100 percent to 10 percent. one As a result ^ our the doubling of this has been just 06 exports to Mexico have doubled in the past four years. That export boom has created 320,000 new jobs in the United States, most in the areas of design, manufacturing and engineering. Each additional billion dollars in exports creates 20,000 new jobs here in the United States. Now, I don't have to tell anyone in this room about Mexico's market potential -- 80 million consumers who want to buy our goods. Nor do I have to tell you that as Mexico grows and prospers, it will need even more of the goods we're best at producing -- computers, manufacturing equipment, high-tech and high-value products. Unfortunately, we have a tough fight ahead of us. One of member of that his our Congressional opponents said the other day, "My concern is that our trade negotiators keep uppermost in their mind the impact of this agreement on American jobs, American companies, and American exports." /// I couldn't agree more. Others cite wase rates, environmental quality, and health and safety issues. 4 well let's those Let's talk about -his concerns. We've already seen what the reduction in Mexican tariffs has done for American exports. A free-trade agreement would eliminate the remaining tariffs entirely. That would stimulate exports, create new jobs, generate wealth and hope on both sides of the border. Let's take a look at the impact on American companies. When trade barriers vanish, goods flow freely across borders. Investment flows freely across borders. And everybody -- businessmen and workers, to farmers and consumers -- reaps the benefits of growth. Consider the environment: The North American Free Trade Agreement fits into a winning strategy for improving environmental quality. Opponents of fast-track and the trade pacts forget that prosperity offers the surest road to worker safety, public health and environmental quality. This Administration wants to ensure that Mexican economic growth goes hand in hand with environmental protection. Our E.P.A. is already assisting the Salinas government with its environmental programs. President Salinas has shown he's serious about cleaning up the environment -- by requiring all new cars to have catalytic converters and recently by shutting down Mexico's largest oil refinery for pollution violations. I believe that President Salinas cares deeply about his nation and its people, and that he means business when he says he wants to clean up Mexico's air and water. consality dies actually ? 5 Finally, consider the matter of working conditions in Mexico. The trade surplus has caused Mexican wages to rise very quickly over the last few years, and produced no tangible reduction in American wages. That being the case, someone ought to ask the opponents of fast track why they oppose prosperity in Mexico. Someone should ask why they oppose letting our neighbors enjoy the benefits of progress. Ask them what is wrong with increased productivity throughout the continent. And ask them what's wrong with a more stable Mexico. As you know, Mexico is in the midst of a brain drain. It already graduates more engineers per capita than the U.S. does -- yet more and more good workers who can't find jobs head for the border every day. A free-trade pact would encourage investment, create jobs, lift wages and give talented Mexican citizens opportunites they don't enjoy today. A stronger Mexico, in turn, means a stronger United States, and a stronger North American alliance. So you see, we have much to gain from extending fast track --- a new era of open, free and fair trade -- a future of unprecedented A economic growth and regional harmony, and yes, competition. healthy in support of The vote on fast-track -- and on the trade agreements -- really is a vote on what kind of America we want to build. A "yes" vote expresses confidence in American know-how and ourselves. It says we ingenuity. It says we believe in Mexico S ability to adapt to a level economic playing field. # Free and open markets let people 6 pursue their dreams by competing against other dreamers, entrepreneurs. As with most good things in life, competition involves risk. But we always have been a nation of risk-takers, adventurers. Our forefathers transformed a rough wilderness into an industrial superpower. We have created technologies and products unlike any others produced in human history. We have placed the wisdom of the ages within reach of anyone who can operate a computer. We are the world's largest trader, and we have nothing to fear but the fear-mongers themselves. XÀ Opponents of fast track and the Free Trade Agreement like to focus on envy, suspicion, fear -- sentiments unworthy of us as a people. They like to pretend that the world has not moved into a new era of international competition and cooperation. They are the seem to be the only ones who haven't learned that defeatism produces defeat, while confidence and self-reliance produce greatness. We must We stand ready to seize the opportunities that the new world I know we will. economy offers us. With your help, I know we can conquer the demagoques of defeat. // Thank you for your support, and God bless our great country. # # # Document No. 225667SS WHITE HOUSE STAFFING.MEMORANDUM P2:17 DATE: 4/2/91 ACTION/CONCURRENCE/COMMENT DUE BY: WEDNESDAY 4/3/91 2:00 SUBJECT: PRESIDENTIAL REMARKS: HISPANIC FREE TRADE BREAKFAST ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN ROGICH BRADY UNTERMEYER CARD ROGERS DEMAREST SNOW FITZWATER GRAY HOLIDAY REMARKS: Please forward your comments directly to Tony Snow, Rm. 122, x2930, no later than 2:00 p.m., Wednesday, April 3, with a copy to this office. Thank you. RESPONSE: see comments. Thanks, Helly Williamson 4-3-91 PHILLIP D. BRADY Assistant to the President and Staff Secretary Ext. 2702 Tomg-se note that commentrons I that about. have the Depts. many the thanks. felt HW Grant/Dooley April 1, 195APR -2 PM 1: 13 A:Mextrade / Draft six PRESIDENTIAL REMARKS: HISPANIC FREE TRADE BREAKFAST THE HOUSTONIAN MONDAY, APRIL 8, 1991 TIME? ((Acknowledgements)) Good morning. I've been looking forward to meeting with you today, because I want to discuss two issues important to us all: America's ability to compete in the global marketplace and our ability to negotiate with our trading partners. I've said many times that the hard work of freedom awaits us. Today, I've come to ask your help in that challenge. Last month, I asked Congress to extend our "fast track" authority in trade negotiations. This mechanism lets our negotiators assure their counterparts that agreements they reach at the bargaining table will be the same ones voted on at home. It makes us good for our word. VISTR Fast-track doesn't affect Congress' power to accept or USTR trade agreements. reject/treaties. It just prevents changing agreements we have (thestanties) are reached, and forcing everyone involved to start from scratch. not We need fast track authority now to pursue vital trade pasts objectives bj (or initiativa) OCA $ VOCA the Treasury North American Free Trade Agreement, the Uruguay Round and the (E.A.D.is not atrack Enterprise for the Americas Initiative. If we lose our fast pact.) objectives (or initiatives). track authority, we lose all three of those agreements. We lose VOCA+ a little Strong ? (OCA) Treasury trade. We surrender our role as a world leader and role model Those who oppose fast track cite a variety of issues wage rates, environmental quality, health and safety concerns. 32 Treasury much or as the below. VOCA & too care about And 2 we and the people of Mexico with are working those, too. And we we're working on them, a on them + we 'el step up one efforts to meet each challenge. delete step by step plan to resolve each and every challenge Here's the key: A vote against fast-track is a vote against both here, VOCA things we all hold dear growth in other Tands prosperity/at and in other sames. VOCA home It ignores the dramatic and wonderful changes in the world economy. We want to play a leading role in that emerging, exciting world; we don't want to hide from it. We want to join in the thrilling business of innovation; we don't want to chain people to outmoded technologies and ideas. Right now, we have the chance to expand opportunity and to economic growth from the Yukon/the the Yucatan. The North American Free Trade Agreement would link us with our largest trading partner, Canada, and our third-largest partner, Mexico. It would create the largest, richest trade zone on earth -- 360 million consumers in a market that generates $6 trillion in output a year. A unified North American market/would let us all build on Treasury would allow our countries to our strengths. It would provide more and better jobs for U.S. workers. It would stimulate price competition, lower consumer prices and improve product quality. If you want to talk about a Treasey compelling fairness issue, consider this: The agreement would Careful - STCT make necessities such as food and clothing more affordable, and The afford. more available to our poorest citizens. It would raise ability will come from productivity and produce a higher standard of living throughout cheaper mexican the continent. prices. Note: The #5 on this pase have some problems. Commerce t Treasury made changes. USTR said they are working directs m Peggy Dooley. 3 Let me illustrate the stakes involved in the fast-track debate by discussing the Mexican component of the North American Free Trade Agreement. Trade with Mexico has helped both our commerce # 4.9 billion # countries. Just four years ago, we had a $91 million trade That has been cut by 2/3 to 1.8 billion. Tree. commerct t deficit with Mexico. Today, we enjoy a $28 billion surplus. (no commerce reduction surplus. ThisAturnaround took place because Mexican President Carlos (28 bit. = Salinas believes in free trade. He has slashed tariff rates for total exports some goods from 100 percent to 10 percent. As a result, our to Mex.: exports to Mexico have doubled in the past four years. That over 300,000 (or has created a substantial number of.) commerce export boom has created 320,000 new jobs in the United States, cannot substantiate most in the areas of design, manufacturing and engineering. Each Commerc 320,000. 320, additional billion dollars in exports creates about A20, 000 new jobs No direct magbe say here in the United States. evidence over 300,000. Treasury OF these Now, I don't have to tell anyone in this room about Mexico' areas. 55uggt market potential -- 80 million consumers who want to buy our todelete that goods. Nor do I have to tell you that as Mexico grows and part, prospers, it will need even more of the goods we're best at producing -- computers, manufacturing equipment, high-tech and commune & +Treas. high-value products. unnecesses attacht Unfortunately, we have a tough fight ahead of us. One member of Congress our Congressional opponents said the other day, "My concern is too that our trade negotiators keep uppermost in their mind the Commercis impact of this agreement on American jobs, American companies, thinks theressimely opponet the and American exports." /// I couldn't agree more. still will fendainitely 1 other seme deportmen.) way to Miclene to keonthat on the the But this & perhaps we paymane should him Gephart. 4 commerce Let's talk about those his concerns. We've already seen what the reduction in Mexican tariffs has done for American exports. A phase out free-trade agreement would eliminate the remaining tariffs, VaA entinaly? That would stimulate exports, create new jobs, generate wealth and hope on both sides of the border. Let's take a look at the impact on American companies. When trade barriers vanish, goods flow freely across borders. Vreasury Invostment flows freely across borders? And everybody -- from VOCA businessmen and workers, to farmers and consumers -- reaps the benefits of growth. Consider the environment: The North American Free Trade Agreement fits into a winning strategy for improving environmental quality. Opponents of fast-track and the trade pacts forget that prosperity offers the surest road to worker safety, public health and environmental quality. This Administration wants to ensure that Mexican economic growth goes hand in hand with environmental protection. Our E.P.A. is already assisting the Salinas government with its environmental programs. President Salinas has shown he's serious about cleaning up the environment -- by requiring all new cars to Kreasury have catalytic converters and recently by shutting down Mexico's largest oil refinery for pollution violations. I believe that President Salinas cares deeply about his nation and its people, and that he means business when he says he wants to clean up Mexico's air and water. 5 Finally, consider the matter of working conditions in Kressing Therecent expansion in trade has helped Mexico. A The trade surplus has caused Mexican wages to rise very quickly over the last few years, and produced no tangible reduction in American wages. That being the case, someone ought to ask the opponents of fast track why they oppose prosperity in Mexico. Someone should ask why they oppose letting our neighbors enjoy the benefits of progress. Ask them what is wrong with increased productivity throughout the continent. And ask them what's wrong with a more stable Mexico. As you ON know, Mexico is in the midst of a brain drain It already graduates more engineers per capita than the U.S. does -- yet more and more good workers who can't find jobs head for the border every day. A free-trade pact would encourage investment, create jobs, lift wages and give talented Mexican citizens opportunités they don't enjoy today. A stronger Mexico, in turn, means a stronger United States, and a stronger North American alliance. VOCA So you see, we have much to gain from extending fast track authority -- a new era of open, free and fair trade -- a future of unprecedented economic growth and regional harmony. USTR. * not say The vote on fast-track and on the trade agreements do really is a vote on what kind of America we want to build. A Please that have been "yes" vote expresses confidence in American know-how and ingenuity. It says we believe in Mexico's ability to adapt to a we telling them is level economic playing field. Free and open markets let people togiver fast can still chance tyou have individuagreement to your vote oneach trade USTR (initiative). sumportant distinction. 6 pursue their dreams by competing against other dreamers, the Transung entrepreneurs. As with most good things in life, competition involves risk. But we always have been a nation of risk-takers, adventurers. Our forefathers transformed a rough wilderness into an industrial superpower. We have created technologies and products unlike any others produced in human history. We have placed the wisdom of * commerce the ages within reach of anyone who can operate a computer. boathis H. commerce We also sap that United becomery just passed are the world's largest trader, and we have nothing to delete Too fear but the fear-mongers themselves. 11 VOCA authority North American Opponents of fast track/and then Free Trade Agreement like Commerce to focus on envy, suspicion, fear -- sentiments unworthy of us as a people. They like to pretend that the world has not moved into a new era of international competition and cooperation. They seem to be the only ones who haven't learned that defeatism produces defeat, while confidence and self-reliance produce greatness. We stand ready to seize the opportunities that the new world economy offers us. With your help, I know we can conquer the demagogues of defeat. // Thank you for your support, and God bless our great country. # # # Document No. 225667SS 91 APR 3 P1:25 WHITE HOUSE STAFFING MEMORANDUM DATE: 4/2/91 ACTION/CONCURRENCE/COMMENT DUE BY: WEDNESDAY 4/3/91 2:00 SUBJECT: PRESIDENTIAL REMARKS: HISPANIC FREE TRADE BREAKFAST ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN ROGICH BRADY UNTERMEYER CARD ROGERS DEMAREST SNOW FITZWATER GRAY HOLIDAY REMARKS: Please forward your comments directly to Tony Snow, Rm. 122, x2930, no later than 2:00 p.m., Wednesday, April 3, with a copy to this office. Thank you. RESPONSE: PHILLIP D. BRADY Assistant to the President and Staff Secretary Ext. 2702 Grant/Dooley April 1, 195APR - 2 PM 1: 13 A:Mextrade / Draft six PRESIDENTIAL REMARKS: HISPANIC FREE TRADE BREAKFAST THE HOUSTONIAN MONDAY, APRIL 8, 1991 TIME? ((Acknowledgements)) Good morning. I've been looking forward to meeting with you today, because I want to discuss two issues important to us all: America's ability to compete in the global marketplace and our ability to negotiate with our trading partners. I've said many times that the hard work of freedom awaits us. Today, I've come to ask your help in that challenge. Last month, I asked Congress to extend our "fast track" authority in trade negotiations. This mechanism lets our negotiators assure their counterparts that agreements they reach at the bargaining table will be the same ones voted on at home. It makes us good for our word. Fast-track doesn't affect Congress' power to accept or reject treaties. It just prevents changing agreements we have reached, and forcing everyone involved to start from scratch. We need fast track now to pursue vital trade pacts -- the North American Free Trade Agreement, the Uruguay Round and the Enterprise for the Americas Initiative. If we lose our fast track authority, we lose all three of those efferts. agreements. We lose a trade. We surrender our role as a world leader and role model. Those who oppose fast track cite a variety of issues -- wage rates, environmental quality, health and safety concerns. 2 We care about those, too. And we're working on them, with a step-by-step plan to resolve each and every challenge. Here's the key: A vote against fast-track is a vote against both here things we all hold dear -- growth in other lands prosperity at and in other lands. home It ignores the dramatic and wonderful changes in the world economy. We want to play a leading role in that emerging, exciting world; we don't want to hide from it. We want to join in the thrilling business of innovation; we don't want to chain people to outmoded technologies and ideas. Right now, we have the chance to expand opportunity and economic growth from the Yukon the the Yucatan. The North American Free Trade Agreement would link us with our largest trading partner, Canada, and our third-largest partner, Mexico. It would create the largest, richest trade zone on earth -- 360 million consumers in a market that generates $6 trillion in output a year. A unified North American market would let us all build on our strengths. It would provide more and better jobs for U.S. workers. It would stimulate price competition, lower consumer prices, improve product quality. If you want to talk about a compelling fairness issue, consider this: The agreement would make necessities such as food and clothing more affordable, and more available to our poorest citizens. It would raise productivity and produce a higher standard of living throughout the continent. 2412 Document No. 225667SS WHITE HOUSE STAFFING MEMORANDUM 91 APR 3 P | : P I : 26 DATE: 4/2/91 ACTION/CONCURRENCE/COMMENT DUE BY: WEDNESDAY 4/3/91 2:00 SUBJECT: PRESIDENTIAL REMARKS: HISPANIC FREE TRADE BREAKFAST ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN ROGICH BRADY UNTERMEYER CARD ROGERS DEMAREST SNOW FITZWATER GRAY HOLIDAY REMARKS: Please forward your comments directly to Tony Snow, Rm. 122, x2930, no later than 2:00 p.m., Wednesday, April 3, with a copy to this office. Thank you. RESPONSE: April 3, 1991 TO: TONY SNOW NSC concurs with the attached, as revised. A Brent Scowcroft PHILLIP D. BRADY CC: Phillip Brady Assistant to the President and Staff Secretary Ext. 2702 RECEIVED 91 APR 2 P4. 42 I VbB 3 bl: se Insert #1 On March 1, I asked Congress to extend for an additional two years the so-called fast track procedures for approval of trade agreements. Fast Track authority is one of those Washington buzz words that mean a lot to those who follow trade issues. But keeping fast track is also critical to our prosperity as a nation and our leadership in the global economy. The Fast track procedures enacted by Congress -- and what I am seeking to preserve -- provide guarantees essential to successful trade negotiations: a yea or nay vote by Congress on the negotiated agreement without any modifications. Without fast track, we can't assure our negotiating partners that the agreement reached at the bargaining table will be the agreement voted on by Congress. If Congress starts modifying what the Administration negotiates, we would have to negotiate those changes all over again with the other countries and would never conclude any trade agreements at all. For that reason, without fast track our trading partners won't even start trade talks with us. Contrary to what some have claimed, fast track does not cut Congress out of the picture. Fast track procedures require, and we are committed to, close and continuing consultations with Congress every step of the way. And Congress has the last word: if they do not like the agreement we negotiate, they can vote it down. But denying an extension of fast track denies us a chance to negotiate any trade agreement at all. The Uruguay Round of multilateral negotiations, the United States free trade talks with Mexico, and the Enterprise for the Americas Initiative all hold immense promise for the future prosperity of our hemisphere. But to realize the benefits of these initiatives, we need fast track. Insert #2 Trade negotiations will play an enormously important role in determining the shape of the emerging world economic order. Our credibility and leadership in those talks depend on keeping fast track. Time after time we have learned that increased trade helps everybody. I hope that everyone understands the crucial importance of fast track and will encourage Congress to support the Administration's request. Grant/Dooley April 1, 1991PR -2 PM 1: 13 A:Mextrade / Draft six PRESIDENTIAL REMARKS: HISPANIC FREE TRADE BREAKFAST THE HOUSTONIAN MONDAY, APRIL 8, 1991 TIME? ((Acknowledgements)) Good morning. I've been looking forward to meeting with you today, because I want to discuss two issues important to us all: America's ability to compete in the global marketplace and our ability to negotiate with our trading partners. I've said many times that the hard work of freedom awaits us. Today, I've come to ask your help in that challenge. Last month, I asked Congress to extend our "fast track" Replace authority in trade negotiations. This mechanism lets our negotiators assure their counterparts that agreements they reach at the bargaining table will be the same ones voted on at home. It makes us good for our word. Fast-track doesn't affect Congress' power to accept or reject treaties. It just prévents changing agreements we have reached, and forcing everyone involved to start from scratch. We need fast track now to pursue vital trade pacts -- the North American Free Trade Agreement, the Uruguay Round and the Enterprise for the Americas Initiative. If we lose our fast track authority, we lose all three of those agreements. We lose trade. We surrender our role as a world leader and role model. Those who oppose fast track cite a variety of issues -- wage rates, environmental quality, health and safety concerns. 2 We care about those, too. And we're working on them, with a step-by-step plan to resolve each and every challenge. Here's the key: A vote against fast-track is a vote against things we all hold dear -- growth in other lands -- prosperity at home. It ignores the dramatic and wonderful changes in the world economy. We want to play a leading role in that emerging, exciting world; we don't want to hide from it. We want to join in the thrilling business of innovation; we don't want to chain people to outmoded technologies and ideas. Right now, we have the chance to expand opportunity and economic growth from the Yukon (the to) the Yucatan. The North American Free Trade Agreement would link us with our largest trading partner, Canada, and our third-largest partner, Mexico. It would create the largest, richest trade zone on earth -- 360 million consumers in a market that generates $6 trillion in output a year. A unified North American market would let us all build on our strengths. It would provide more and better jobs for U.S. workers. It would stimulate price competition, lower consumer prices, improve product quality. If you want to talk about a compelling fairness issue, consider this: The agreement would make necessities such as food and clothing more affordable, and more available to our poorest citizens. It would raise productivity and produce a higher standard of living throughout the continent. 3 Let me illustrate the stakes involved in the fast-track debate by discussing the Mexican component of the North American Free Trade Agreement. Trade with Mexico has helped both our countries. Just four years ago, we had a $91 million trade deficit with Mexico. Today, we enjoy a $28 billion surplus. This turnaround took place because Mexican President Carlos Salinas believes in free trade. He has slashed tariff rates for some goods from 100 percent to 10 percent. As a result, our exports to Mexico have doubled in the past four years. That export boom has created 320,000 new jobs in the United States, most in the areas of design, manufacturing and engineering. Each additional billion dollars in exports creates 20,000 new jobs here in the United States. Now, I don't have to tell anyone in this room about Mexico's market potential -- 80 million consumers who want to buy our goods. Nor do I have to tell you that as Mexico grows and prospers, it will need even more of the goods we're best at producing -- computers, manufacturing equipment, high-tech and high-value products. Unfortunately, we have a tough fight ahead of us. One of our Congressional opponents said the other day, "My concern is that our trade negotiators keep uppermost in their mind the impact of this agreement on American jobs, American companies, and American exports." /// I couldn't agree more. 4 Let's talk about his concerns. We've already seen what the reduction in Mexican tariffs has done for American exports. A free-trade agreement would eliminate the remaining tariffs entirely. That would stimulate exports, create new jobs, generate wealth and hope on both sides of the border. Let's take a look at the impact on American companies. When trade barriers vanish, goods flow freely across borders. Investment flows freely across borders. And everybody -- businessmen and workers, to farmers and consumers -- reaps the benefits of growth. Consider the environment: The North American Free Trade Agreement fits into a winning strategy for improving environmental quality. Opponents of fast-track and the trade pacts forget that prosperity offers the surest road to worker safety, public health and environmental quality. This Administration wants to ensure that Mexican economic growth goes hand in hand with environmental protection. Our E.P.A. is already assisting the Salinas government with its environmental programs. President Salinas has shown he's serious about cleaning up the environment -- by requiring all new cars to have catalytic converters and recently by shutting down Mexico's largest oil refinery for pollution violations. I believe that President Salinas cares deeply about his nation and its people, and that he means business when he says he wants to clean up Mexico's air and water. became it was pollecting rexico City's an 5 Finally, consider the matter of working conditions in Mexico. The trade surplus has caused Mexican wages to rise very quickly over the last few years, and produced no tangible reduction in American wages. That being the case, someone ought to ask the opponents of fast track why they oppose prosperity in Mexico. Someone should ask why they oppose letting our neighbors enjoy the benefits of progress. Ask them what is wrong with increased productivity throughout the continent. And ask them what's wrong with a more stable Mexico. As you know, Mexico is in the midst of a brain drain. It already graduates more engineers per capita than the U.S. does -- yet more and more good workers who can't find jobs head for the border every day. A free-trade pact would encourage investment, create jobs, lift wages and give talented Mexican citizens opportunites they don't enjoy today. A stronger Mexico, in turn, means a stronger United States, and a stronger North American alliance. So you see, we have much to gain from extending fast track -- a new era of open, free and fair trade -- a future of unprecedented economic growth and regional harmony. The vote on fast-track -- and on the trade agreements -- really is a vote on what kind of America we want to build. A "yes" vote expresses confidence in American know-how and ingenuity. It says we believe in Mexico's ability to adapt to a level economic playing field. Free and open markets let people 6 pursue their dreams by competing against other dreamers, entrepreneurs. As with most good things in life, competition involves risk. But we always have been a nation of risk-takers, adventurers. Our forefathers transformed a rough wilderness into an industrial superpower. We have created technologies and products unlike any others produced in human history. We have placed the wisdom of the ages within reach of anyone who can operate a computer. We are the world's largest trader, and we have nothing to fear but the fear-mongers themselves. // Opponents of fast track and the Free Trade Agreement like to focus on envy, suspicion, fear -- sentiments unworthy of us as a people. They like to pretend that the world has not moved into a new era of international competition and cooperation. They seem to be the only ones who haven't learned that defeatism produces defeat, while confidence and self-reliance produce greatness. replace insert with We stand ready to seize the opportunities that the new world economy offers us. With your help, I know we can conquer the # demagogues of defeat // Thank you for your support, and God bless our great country. # # # SENT BY:The TICKET CENTER ; 4- 3-91 ; 1:36PM ; LEGISLATIVE AFFAIRS- 2024566218:# 1 Document No. 225667SS WHITE HOUSE STAFFING OLARD MEMORANDUM DATE: 4/2/91 ACTION/CONCURRENCE/COMMENT DUE BY: WEDNESDAY 4/3/91 2:00 SUBJECT: PRESIDENTIAL REMARKS: HISPANIC FREE TRADE BREAKFAST ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN ROGICH BRADY UNTERMEYER CARD ROGERS DEMAREST SNOW FITZWATER GRAY HOLIDAY REMARKS: Please forward your comments directly to Tony Snow, Rm. 122, x2930, no later than 2:00 p.m., Wednesday, April 3, with a copy to this office. Thank you. RESPONSE: Please see suggestions 4/3/91 PHILLIP D. BRADY Assistant to the President and Staff Secretary Ext. 2702 SENT BY:The TICKET CENTER ; 4- 3-91 ; 1:36PM ; LEGISLATIVE AFFAIRS- 2024566218:# 2 Grant/Dooley April 1, 1968PR -2 PM 1: 13 A:Mextrade / Draft six PRESIDENTIAL REMARKS: HISPANIC FREE TRADE BREAKFAST THE HOUSTONIAN MONDAY, APRIL 8, 1991 TIME? ((Acknowledgements)) Good morning. I've been looking forward to meeting with you today because E want to discuss two issues important to us all: America's ability to compete in the global marketplace and our ability to negotiate with our trading partners. I've said many times that the hard work of freedom awaits us. Today, I've come to ask your help in that challenge. Last month, I asked Congress to extend our "fast, track" authority in trade negotiations. This mechanism lets our negotiators assure their counterparts that agreements they reach at the bargaining table will be the same ones voted on at home. ? It makes us good for our word. Fast-track doesn't affect Congress' power to accept or reject treaties. It just prevents changing agreements we have reached, and forcing everyone involved to start from scratch. We need fast,track now to pursue vital trade pacts -- the North American Free Trade Agreement, the Uruguay Round and the Enterprise for the Americas Initiative. If we lose our fast track authority, we lose all three of those agreements. We lose trade. We surrender our role as a world leader and role model. Those who oppose fast track cite a variety of issues -- wage rates, environmental quality, health and safety concerns. SENT BY:The TICKET CENTER ; 4- 3-91 : 1:37PM ; LEGISLATIVE AFFAIRS- 2024566218 3 2 We care about those, too. And we're working on them, with a step-by-step plan to resolve each and every challenge. Here's the key: A vote against fast-track is a vote against things we all hold dear -- growth in other lands -- prosperity at home. It ignores the dramatic and wonderful changes in the world sconemy. We want to play a leading role in that emerging, exciting world; we don't want to hide from it. We want to join in the thrilling business of innovation; we don't want to chain people to outmoded technologies and ideas. Right now, we have the chance to expand opportunity and economic growth from the Yukon the the Yucatan. The North American Free Trade Agreement would link us with our largest trading partner, Canada, and our third-largest partner, Mexico. It would create the largest, richest trade zone on earth - 360 million consumers in a market that generates $6 trillion in output a year. A unified North American market would let us all build on our strengths. It would provide more and better jobs for U.S. workers. It would stimulate price competition, lower consumer prices, improve product quality. If you want to talk about a compelling fairness issue, consider this: The agreement would make necessities such as food and clothing more affordable, and more available to our poorest citizens. It would raise productivity and produce a higher standard of living throughout the continent. SENT BY:The TICKET CENTER ; 4- 3-91 ; 1:37PM ; LEGISLATIVE AFFAIRS- 20245662181# 4 3 Let me illustrate the stakes involved in the fast-track debate by discussing the Mexican component of the North American Free Trade Agreement. Trade with Mexico has helped both our countries. Just four years ago, we had a $91 million trade deficit with Mexico. Today, we enjoy a $28 billion surplus. This turnaround took place because Mexican President Carlos Salinas believes in free trade. He has slashed tariff rates for some goods from 100 percent to 10 percent. As a result, our exports to Mexico have doubled in the past four years. That export boom has created 320,000 new jobs in the United States, most in the areas of design, manufacturing and engineering. Each additional billion dollars in exports creates 20,000 new jobs here in the United States. Now, I don't have to tell anyone in this room about Mexico's market potential -- 80 million consumers who want to buy our goods. Nor do I have to tell you that as Mexico grows and prospers, it will need even more of the goods we're best at producing -- computers, manufacturing equipment, high-tech and high-value products. Unfortunately, we have a tough fight ahead of us. One of our Congressional opponents said the other day, "My concern is that our trade negotiators keep uppermost in their mind the impact of this agreement on American jobs, American companies, and American exports." /// I couldn't agree more. SENT BY:The TICKET CENTER ; 4- 3-91 ; 1:38PM ; LEGISLATIVE AFFAIRS- 2024566218:# 5 4 Let's talk about his concerns. We've already seen what the reduction in Mexican tariffs has done for American exports. A free-trade agreement would eliminate the remaining tariffs entirely. That would stimulate exports, create new jobs, generate wealth and hope on both sides of the border. Let's take a look at the impact on American companies. When trade barriers vanish, goods flow freely across borders. Investment flows freely across borders. And everybody -- businessmen and workers, to farmers and consumers -- reaps the benefits of growth. Consider the environment: The North American Free Trade Agreement fits into a winning strategy for improving environmental quality. Opponents of fast-track and the trade pacts forget that prosperity offers the surest road to worker safety, public health and environmental quality. This Administration wants to ensure that Mexican economic growth goes hand in hand with environmental protection. our E.P.A. is already assisting the Salinas government with its environmental programs. President Salinas has shown he's serious about cleaning up the environment -- by requiring all new cars to have catalytic converters and recently by shutting down Mexico's largest oil refinery for pollution violations. I believe that President Salinas cares deeply about his nation and its people, and that he means business when he says he wants to clean up Mexico's air and water. SENT BY:The TICKET CENTER ; 4- 3-91 ; 1:38PM ; LEGISLATIVE AFFAIRS- 2024566218:# 6 5 Finally, consider the matter of working conditions in Mexico. The trade surplus has caused Mexican wages to rise very quickly over the last few years, and produced no tangible reduction in American wages. That being the case, someone ought to ask the opponents of fast track why they oppose prosperity in Mexico. Someone should ask why they oppose letting our neighbors enjoy the benefits of progress. Ask them what is wrong with increased productivity throughout the continent. And ask them what's wrong with a more stable Mexico. As you know, Mexico is in the midst of a brain drain. It already graduates more engineers per capita than the U.S. does - yet more and more good workers who can't find jobs head for the border every day. A free-trade pact would encourage investment, create jobs, lift wages and give talented Mexican citizens opportunites they don't enjoy today. A stronger Mexico, in turn, means a stronger United States, and a stronger North American alliance. So you see, we have much to gain from extending fast track -- a new era of open, free and fair trade -- a future of unprecedented economic growth and regional harmony. The vote on fast-track -- and on the trade agreements -- really is a vote on what kind of America we want to build. A "yes" vote expresses confidence in American know-how and ingenuity. It says we believe in Mexico's ability to adapt to a level economic playing field. Free and open markets let people SENT BY:The TICKET CENTER ; 4- 3-91 ; 1:39PM ; LEGISLATIVE AFFAIRS- 2024566218:# 7 6 pursue their dreams by competing against other dreamers, entrepreneurs. As with most good things in life, competition involves risk. But we always have been a nation of risk-takers, adventurers. Our forefathers transformed a rough wilderness into an industrial superpower. We have created technologies and products unlike any others produced in human history. We have placed the wisdom of the ages within reach of anyone who can operate a computer. We are the world's largest trader, and we have nothing to fear but the fear-mongers themselves. 11 Opponents of fast track and the Free Trade Agreement like to focus on envy, suspicion, fear -- sentiments unworthy of us as a people. They like to pretend that the world has not moved into a new era of international competition and cooperation. They seem to be the only ones who haven't learned that defeatism produces defeat, while confidence and self-reliance produce greatness. We stand ready to seize the opportunities that the new world economy offers us. With your help, I know we can conquer the demagogues of defeat. // Thank you for your support, and God bless our great country. ### Document No. 225667SS WHITE HOUSE STAFFING MEMORANDUM 91 MAR 4 64 A10: 37 DATE: 4/2/91 ACTION/CONCURRENCE/COMMENT DUE BY: WEDNESDAY 4/3/91 2:00 SUBJECT: PRESIDENTIAL REMARKS: HISPANIC FREE TRADE BREAKFAST ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN ROGICH BRADY UNTERMEYER CARD ROGERS DEMAREST SNOW FITZWATER GRAY HOLIDAY REMARKS: Please forward your comments directly to Tony Snow, Rm. 122, x2930, no later than 2:00 p.m., Wednesday, April 3, with a copy to this office. Thank you. RESPONSE: OKJP PHILLIP D. BRADY Assistant to the President and Staff Secretary Ext. 2702 Grant/Dooley April 1, 195APR 2 PM 1: 13 A:Mextrade / Draft six PRESIDENTIAL REMARKS: HISPANIC FREE TRADE BREAKFAST THE HOUSTONIAN MONDAY, APRIL 8, 1991 TIME? ((Acknowledgements) Good morning. I've been looking forward to meeting with you today, because I want to discuss two issues important to us all: America's ability to compete in the global marketplace and our ability to negotiate with our trading partners. I've said many times that the hard work of freedom awaits us. Today, I've come to ask your help in that challenge. Last month, I asked Congress to extend our "fast track" authority in trade negotiations. This mechanism lets our negotiators assure their counterparts that agreements they reach at the bargaining table will be the same ones voted on at home. It makes us good for our word. Fast-track doesn't affect Congress' power to accept or reject treaties. It just prevents changing agreements we have reached, and forcing everyone involved to start from scratch. We need fast track now to pursue vital trade pacts -- the North American Free Trade Agreement, the Uruguay Round and the Enterprise for the Americas Initiative. If we lose our fast track authority, we lose all three of those agreements. We lose trade. We surrender our role as a world leader and role model. Those who oppose fast track cite a variety of issues -- wage rates, environmental quality, health and safety concerns. 2 We care about those, too. And we're working on them, with a step-by-step plan to resolve each and every challenge. Here's the key: A vote against fast-track is a vote against things we all hold dear -- growth in other lands -- prosperity at home. It ignores the dramatic and wonderful changes in the world economy. We want to play a leading role in that emerging, exciting world; we don't want to hide from it. We want to join in the thrilling business of innovation; we don't want to chain people to outmoded technologies and ideas. Right now, we have the chance to expand opportunity and economic growth from the Yukon the the Yucatan. The North American Free Trade Agreement would link us with our largest trading partner, Canada, and our third-largest partner, Mexico. It would create the largest, richest trade zone on earth -- 360 million consumers in a market that generates $6 trillion in output a year. A unified North American market would let us all build on our strengths. It would provide more and better jobs for U.S. workers. It would stimulate price competition, lower consumer prices, improve product quality. If you want to talk about a compelling fairness issue, consider this: The agreement would make necessities such as food and clothing more affordable, and more available to our poorest citizens. It would raise productivity and produce a higher standard of living throughout the continent. 3 Let me illustrate the stakes involved in the fast-track debate by discussing the Mexican component of the North American Free Trade Agreement. Trade with Mexico has helped both our countries. Just four years ago, we had a $91 million trade deficit with Mexico. Today, we enjoy a $28 billion surplus. This turnaround took place because Mexican President Carlos Salinas believes in free trade. He has slashed tariff rates for some goods from 100 percent to 10 percent. As a result, our exports to Mexico have doubled in the past four years. That export boom has created 320,000 new jobs in the United States, most in the areas of design, manufacturing and engineering. Each additional billion dollars in exports creates 20,000 new jobs here in the United States. Now, I don't have to tell anyone in this room about Mexico's market potential -- 80 million consumers who want to buy our goods. Nor do I have to tell you that as Mexico grows and prospers, it will need even more of the goods we're best at producing -- computers, manufacturing equipment, high-tech and high-value products. Unfortunately, we have a tough fight ahead of us. One of our Congressional opponents said the other day, "My concern is that our trade negotiators keep uppermost in their mind the impact of this agreement on American jobs, American companies, and American exports." /// I couldn't agree more. 4 Let's talk about his concerns. We've already seen what the reduction in Mexican tariffs has done for American exports. A free-trade agreement would eliminate the remaining tariffs entirely. That would stimulate exports, create new jobs, generate wealth and hope on both sides of the border. Let's take a look at the impact on American companies. When trade barriers vanish, goods flow freely across borders. Investment flows freely across borders. And everybody -- businessmen and workers, to farmers and consumers -- reaps the benefits of growth. Consider the environment: The North American Free Trade Agreement fits into a winning strategy for improving environmental quality. Opponents of fast-track and the trade pacts forget that prosperity offers the surest road to worker safety, public health and environmental quality. This Administration wants to ensure that Mexican economic growth goes hand in hand with environmental protection. Our E.P.A. is already assisting the Salinas government with its environmental programs. President Salinas has shown he's serious about cleaning up the environment -- by requiring all new cars to have catalytic converters and recently by shutting down Mexico's largest oil refinery for pollution violations. I believe that President Salinas cares deeply about his nation and its people, and that he means business when he says he wants to clean up Mexico's air and water. 5 Finally, consider the matter of working conditions in Mexico. The trade surplus has caused Mexican wages to rise very quickly over the last few years, and produced no tangible reduction in American wages. That being the case, someone ought to ask the opponents of fast track why they oppose prosperity in Mexico. Someone should ask why they oppose letting our neighbors enjoy the benefits of progress. Ask them what is wrong with increased productivity throughout the continent. And ask them what's wrong with a more stable Mexico. As you know, Mexico is in the midst of a brain drain. It already graduates more engineers per capita than the U.S. does --- yet more and more good workers who can't find jobs head for the border every day. A free-trade pact would encourage investment, create jobs, lift wages and give talented Mexican citizens opportunites they don't enjoy today. A stronger Mexico, in turn, means a stronger United States, and a stronger North American alliance. So you see, we have much to gain from extending fast track -- a new era of open, free and fair trade -- a future of unprecedented economic growth and regional harmony. The vote on fast-track -- and on the trade agreements -- really is a vote on what kind of America we want to build. A "yes" vote expresses confidence in American know-how and ingenuity. It says we believe in Mexico's ability to adapt to a level economic playing field. Free and open markets let people 6 pursue their dreams by competing against other dreamers, entrepreneurs. As with most good things in life, competition involves risk. But we always have been a nation of risk-takers, adventurers. Our forefathers transformed a rough wilderness into an industrial superpower. We have created technologies and products unlike any others produced in human history. We have placed the wisdom of the ages within reach of anyone who can operate a computer. We are the world's largest trader, and we have nothing to fear but the fear-mongers themselves. // Opponents of fast track and the Free Trade Agreement like to focus on envy, suspicion, fear -- sentiments unworthy of us as a people. They like to pretend that the world has not moved into a new era of international competition and cooperation. They seem to be the only ones who haven't learned that defeatism produces defeat, while confidence and self-reliance produce greatness. We stand ready to seize the opportunities that the new world economy offers us. With your help, I know we can conquer the demagogues of defeat. // Thank you for your support, and God bless our great country. # # # Document No. 225667SS WHITE HOUSE STAFFING MEMORANDUM DATE: 4/2/91 ACTION/CONCURRENCE/COMMENT DUE BY: WEDNESDAY 4/3/91 2:00 SUBJECT: PRESIDENTIAL REMARKS: HISPANIC FREE TRADE BREAKFAST ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN ROGICH BRADY UNTERMEYER CARD ROGERS DEMAREST SNOW FITZWATER GRAY HOLIDAY REMARKS: Please forward your comments directly to Tony Snow, Rm. 122, x2930, no later than 2:00 p.m., Wednesday, April 3, with a copy to this office. Thank you. RESPONSE: See comments PHILLIP D. BRADY Assistant to the President and Staff Secretary Ext. 2702 Grant/Dooley April 1, 1954PR - 2 PM 1: 13 A:Mextrade / Draft six PRESIDENTIAL REMARKS: HISPANIC FREE TRADE BREAKFAST THE HOUSTONIAN MONDAY, APRIL 8, 1991 TIME? ((Acknowledgements) Good morning. I've been looking forward to meeting with you today, because I want to discuss two issues important to us all: America's ability to compete in the global marketplace and our ability to negotiate with our trading partners. I've said many times that the hard work of freedom awaits us. Today, I've come to ask your help in that challenge. Last month, I asked Congress to extend our "fast track" authority in trade negotiations. This mechanism lets our negotiators assure their counterparts that agreements they reach at the bargaining table will be the same ones voted on at home. It makes us good for our word. Fast-track doesn't affect Congress' power to accept or reject treaties. It just prevents changing agreements we have reached, and forcing everyone involved to start from scratch. We need fast track now to pursue vital trade pacts -- the North American Free Trade Agreement, the Uruguay Round and the Enterprise for the Americas Initiative. If we lose our fast track authority, we lose all three of those agreements. We lose trade. We surrender our role as a world leader and role model. Those who oppose fast track cite a variety of issues -- wage rates, environmental quality, health and safety concerns. 2 We care about those, too. And we're working on them, with a step-by-step plan to resolve each and every challenge. Here's the key: A vote against fast-track is a vote against suntch things we all hold dear -- growth in other lands -- prosperity at seally home. It ignores the dramatic and wonderful changes in the world X5178 economy. We want to play a leading role in that emerging, exciting world; we don't want to hide from it. We want to join in the thrilling business of innovation; we don't want to chain people to outmoded technologies and ideas. Right now, we have the chance to expand opportunity and economic growth from the Yukon the to the Yucatan. The North American Free Trade Agreement would link us with our largest scully X5178 trading partner, Canada, and our third-largest partner, Mexico. It would create the largest, richest trade zone on earth -- 360 million consumers in a market that generates $6 trillion in output a year. A unified North American market would let us all build on our strengths. It would provide more and better jobs for U.S. workers. It would stimulate price competition, lower consumer prices, improve product quality. If you want to talk about a compelling fairness issue, consider this: The agreement would make necessities such as food and clothing more affordable and more available to our poorest citizens. It would raise productivity and produce a higher standard of living throughout the continent. 3 Let me illustrate the stakes involved in the fast-track debate by discussing the Mexican component of the North American Free Trade Agreement. Trade with Mexico has helped both our countries. Just four years ago, we had a $91 million trade Thisis wrong deficit with Mexico. Today, we enjoy a $28 billion surplus. we have a ˢ1. 8.6.11.0n This turnaround took place because Mexican President Carlos deficit. Doisey Salinas believes in free trade. He has slashed tariff rates for X4594 some goods from 100 percent to 10 percent. As a result, our exports to Mexico have doubled in the past four years. That export boom has created 320,000 new jobs in the United States, most in the areas of design, manufacturing and engineering. Each additional billion dollars in exports creates 20,000 new jobs here in the United States. Now, I don't have to tell anyone in this room about Mexico's market potential -- 80 million consumers who want to buy our goods. Nor do I have to tell you that as Mexico grows and prospers, it will need even more of the goods we're best at producing -- computers, manufacturing equipment, high-tech and high-value products. Unfortunately, we have a tough fight ahead of us. One of our Congressional opponents said the other day, "My concern is that our trade negotiators keep uppermost in their mind the impact of this agreement on American jobs, American companies, and American exports." /// I couldn't agree more. 4 Let's talk about his concerns. We've already seen what the reduction in Mexican tariffs has done for American exports. A free-trade agreement would eliminate the remaining tariffs entirely. That would stimulate exports, create new jobs, generate wealth and hope on both sides of the border. Let's take a look at the impact on American companies. When trade barriers vanish, goods flow freely across borders. Investment flows freely across borders. And everybody -- businessmen and workers, to farmers and consumers -- reaps the benefits of growth. Consider the environment: The North American Free Trade Agreement fits into a winning strategy for improving environmental quality. Opponents of fast-track and the trade pacts forget that prosperity offers the surest road to worker safety, public health and environmental quality. This Administration wants to ensure that Mexican economic growth goes hand in hand with environmental protection. Our E.P.A. is already assisting the Salinas government with its environmental programs. President Salinas has shown he's serious about cleaning up the environment -- by requiring all new cars to have catalytic converters and recently by shutting down Mexico's largest oil refinery for pollution violations. I believe that President Salinas cares deeply about his nation and its people, and that he means business when he says he wants to clean up Mexico's air and water. 5 Finally, consider the matter of working conditions in Mexico. The trade surplus has caused Mexican wages to rise very quickly over the last few years, and produced no tangible reduction in American wages. That being the case, someone ought to ask the opponents of fast track why they oppose prosperity in Mexico. Someone should ask why they oppose letting our neighbors enjoy the benefits of progress. Ask them what is wrong with increased productivity throughout the continent. And ask them what's wrong with a more stable Mexico. As you know, Mexico is in the midst of a brain drain. It already graduates more engineers per capita than the U.S. does -- yet more and more good workers who can't find jobs head for the border every day. A free-trade pact would encourage investment, create jobs, lift wages and give talented Mexican citizens opportunites they don't enjoy today. A stronger Mexico, in turn, means a stronger United States, and a stronger North American alliance. So you see, we have much to gain from extending fast track -- a new era of open, free and fair trade -- a future of unprecedented economic growth and regional harmony. The vote on fast-track -- and on the trade agreements -- really is a vote on what kind of America we want to build. A "yes" vote expresses confidence in American know-how and ingenuity. It says we believe in Mexico's ability to adapt to a level economic playing field. Free and open markets let people 6 pursue their dreams by competing against other dreamers, entrepreneurs. As with most good things in life, competition involves risk. But we always have been a nation of risk-takers, adventurers. Our forefathers transformed a rough wilderness into an industrial superpower. We have created technologies and products unlike any others produced in human history. We have placed the wisdom of the ages within reach of anyone who can operate a computer. We are the world's largest trader, and we have nothing to fear but the fear-mongers themselves. // Opponents of fast track and the Free Trade Agreement like to focus on envy, suspicion, fear -- sentiments unworthy of us as a people. They like to pretend that the world has not moved into a new era of international competition and cooperation. They seem to be the only ones who haven't learned that defeatism produces defeat, while confidence and self-reliance produce greatness. We stand ready to seize the opportunities that the new world economy offers us. With your help, I know we can conquer the demagogues of defeat. // Thank you for your support, and God bless our great country. # # # HISPANIC FREE TRADE BREAKFAST \ THE HOUSTONIAN MONDAY, APRIL 8, 1991 \ 8 A.M. GOOD MORNING. I'VE BEEN LOOKING FORWARD TO MEETING WITH YOU TODAY, BECAUSE I WANT TO DISCUSS TWO ISSUES IMPORTANT TO US ALL: AMERICA'S ABILITY TO COMPETE IN THE GLOBAL MARKETPLACE AND OUR ABILITY TO NEGOTIATE WITH OUR TRADING PARTNERS. I'VE SAID MANY TIMES THAT THE HARD WORK OF FREEDOM AWAITS US. Now, I'M ASKING FOR YOUR HELP IN THAT CHALLENGE. - 2 - LAST MONTH, I ASKED CONGRESS TO SUPPORT OUR "FAST TRACK" AUTHORITY IN TRADE NEGOTIATIONS. FAST TRACK IS A WAY OF ASSURING OUR TRADING COUNTERPARTS THAT THE AGREEMENTS THEY REACH AT THE BARGAINING TABLE WITH OUR NEGOTIATORS WILL BE THE SAME ONES REVIEWED BY OUR CONGRESS. FAST-TRACK DOESN'T AFFECT CONGRESS' POWER TO ACCEPT OR REJECT TRADE AGREEMENTS. - 3 - BUT IT DOES PREVENT 11TH-HOUR CHANGES TO AGREEMENTS WE HAVE REACHED, CHANGES THAT FORCE EVERYONE INVOLVED TO START FROM SCRATCH. WE NEED FAST TRACK AUTHORITY TO PURSUE VITAL TRADE OBJECTIVES -- THE NORTH AMERICAN FREE TRADE AGREEMENT, THE URUGUAY ROUND AND THE ENTERPRISE FOR THE AMERICAS INITIATIVE. IF WE LOSE OUR FAST TRACK AUTHORITY, WE LOSE ANY HOPE OF ACHIEVING THESE THREE AGREEMENTS. - 4 - WE LOSE TRADE. WE LOSE JOBS AND JEOPARDIZE ECONOMIC GROWTH. HERE'S THE KEY: A VOTE AGAINST FAST-TRACK IS A VOTE AGAINST THINGS WE ALL HOLD DEAR -- PROSPERITY AT HOME -- GROWTH IN OTHER LANDS. IT IGNORES THE DRAMATIC AND WONDERFUL CHANGES IN THE WORLD ECONOMY. WE WANT TO PLAY A LEADING ROLE IN THAT EMERGING, EXCITING WORLD; WE DON'T WANT TO HIDE FROM IT. - 5 - WE WANT TO JOIN IN THE THRILLING BUSINESS OF INNOVATION; WE DON'T WANT TO CHAIN PEOPLE TO OUTMODED TECHNOLOGIES AND IDEAS. RIGHT NOW, WE HAVE THE CHANCE TO EXPAND OPPORTUNITY AND ECONOMIC GROWTH FROM THE Yukon TO THE YUCATAN. THINK OF IT: THE NORTH AMERICAN FREE TRADE AGREEMENT WOULD LINK US WITH OUR LARGEST TRADING PARTNER, CANADA, AND OUR THIRD-LARGEST PARTNER, MEXICO. - 6 - IT WOULD CREATE THE LARGEST, RICHEST TRADE ZONE ON EARTH -- 360 MILLION CONSUMERS IN A MARKET THAT GENERATES $6 TRILLION IN OUTPUT A YEAR. A UNIFIED NORTH AMERICAN MARKET WOULD LET EACH OF OUR COUNTRIES BUILD ON OUR STRENGTHS. IT WOULD PROVIDE MORE AND BETTER JOBS FOR U.S. WORKERS. IT WOULD STIMULATE PRICE COMPETITION, LOWER CONSUMER PRICES, IMPROVE PRODUCT QUALITY. - 7 - THE AGREEMENT WOULD MAKE NECESSITIES SUCH AS FOOD AND CLOTHING MORE AFFORDABLE, AND MORE AVAILABLE TO OUR POOREST CITIZENS. IT WOULD RAISE PRODUCTIVITY AND PRODUCE A HIGHER STANDARD OF LIVING THROUGHOUT THE CONTINENT. LET ME ILLUSTRATE THE STAKES INVOLVED IN THE FAST- TRACK DEBATE BY DISCUSSING THE MEXICAN COMPONENT OF THE NORTH AMERICAN FREE TRADE AGREEMENT. TRADE WITH MEXICO HAS HELPED BOTH OUR COUNTRIES. - 8 - JUST FOUR YEARS AGO, WE HAD A $4.9 BILLION TRADE DEFICIT WITH MEXICO. SINCE THEN, WE HAVE CUT THAT DEFICIT BY TWO-THIRDS, TO $1.8 BILLION. THIS TURNAROUND TOOK PLACE IN PART BECAUSE MEXICAN PRESIDENT CARLOS SALINAS BELIEVES IN FREE TRADE. HE HAS SLASHED TARIFF RATES FOR SOME GOODS FROM 100 PERCENT TO 10 PERCENT. ONE RESULT: OUR EXPORTS TO MEXICO HAVE INCREASED 130 PERCENT IN THE PAST FOUR YEARS. - 9 - THIS EXPORT BOOM HAS CREATED MORE THAN 300,000 NEW JOBS IN THE UNITED STATES, MOST IN THE AREAS OF DESIGN, MANUFACTURING AND ENGINEERING. AND EACH ADDITIONAL BILLION DOLLARS IN EXPORTS CREATES 20,000 NEW JOBS HERE IN THE UNITED STATES. Now, I DON'T HAVE TO TELL ANYONE IN THIS ROOM ABOUT MEXICO'S MARKET POTENTIAL -- 85 MILLION CONSUMERS WHO WANT TO BUY OUR GOODS. - 10 - NOR DO I HAVE TO TELL YOU THAT AS MEXICO GROWS AND PROSPERS, IT WILL NEED EVEN MORE OF THE GOODS WE'RE BEST AT PRODUCING -- COMPUTERS, MANUFACTURING EQUIPMENT, HIGH-TECH AND HIGH-VALUE PRODUCTS. UNFORTUNATELY, WE HAVE A TOUGH FIGHT AHEAD OF US. ONE MEMBER OF CONGRESS THE OTHER DAY EXPRESSED HIS CONCERN "THAT OUR TRADE NEGOTIATORS KEEP UPPERMOST IN THEIR MIND THE IMPACT OF THIS AGREEMENT ON AMERICAN JOBS, AMERICAN COMPANIES, AND AMERICAN EXPORTS." - 11 - OTHER MEMBERS OF CONGRESS SAY THEY WORRY ABOUT WAGE RATES, ENVIRONMENTAL QUALITY, AND HEALTH AND SAFETY ISSUES. /// I COULDN'T AGREE MORE. LET'S TALK ABOUT THOSE CONCERNS. WE'VE ALREADY SEEN WHAT THE REDUCTION IN MEXICAN TARIFFS HAS DONE FOR AMERICAN EXPORTS. A FREE-TRADE AGREEMENT WOULD ELIMINATE THE REMAINING TARIFFS ENTIRELY. - 12 - THAT WOULD STIMULATE EXPORTS, CREATE NEW JOBS, GENERATE WEALTH AND HOPE ON BOTH SIDES OF THE BORDER. LET'S TAKE A LOOK AT THE IMPACT ON AMERICAN COMPANIES. WHEN TRADE BARRIERS VANISH, GOODS FLOW FREELY ACROSS BORDERS. INVESTMENT FLOWS FREELY ACROSS BORDERS. AND EVERYBODY -- BUSINESSMEN AND WORKERS, TO FARMERS AND CONSUMERS -- REAPS THE BENEFITS OF GROWTH. - 13 - CONSIDER THE ENVIRONMENT: THE NORTH AMERICAN FREE TRADE AGREEMENT FITS INTO A WINNING STRATEGY FOR IMPROVING ENVIRONMENTAL QUALITY. OPPONENTS OF FAST- TRACK AND THE TRADE PACTS FORGET THAT PROSPERITY OFFERS THE SUREST ROAD TO WORKER SAFETY, PUBLIC HEALTH AND ENVIRONMENTAL QUALITY. THIS ADMINISTRATION WANTS TO ENSURE THAT MEXICAN ECONOMIC GROWTH GOES HAND IN HAND WITH ENVIRONMENTAL PROTECTION. - 14 - OUR E.P.A. IS ALREADY ASSISTING THE SALINAS GOVERNMENT WITH ITS ENVIRONMENTAL PROGRAMS. PRESIDENT SALINAS HAS SHOWN HE'S SERIOUS ABOUT CLEANING UP THE ENVIRONMENT -- BY REQUIRING ALL NEW CARS TO HAVE CATALYTIC CONVERTERS AND RECENTLY BY SHUTTING DOWN MEXICO'S LARGEST OIL REFINERY FOR POLLUTION VIOLATIONS. I BELIEVE THAT PRESIDENT SALINAS CARES DEEPLY ABOUT HIS NATION AND ITS PEOPLE, AND THAT HE MEANS BUSINESS WHEN HE SAYS HE WANTS TO CLEAN UP MEXICO'S AIR AND WATER. - 15 - FINALLY, CONSIDER THE MATTER OF WORKING CONDITIONS IN MEXICO. As OUR TRADE WITH MEXICO HAS GROWN, SO HAVE THE WAGES OF MEXICAN WORKERS. INDEED, MEXICAN WAGES HAVE RISEN VERY QUICKLY IN RECENT YEARS, WITH NO TANGIBLE IMPACT ON AMERICAN PAY SCALES. THAT BEING THE CASE, SOMEONE OUGHT TO ASK THE OPPONENTS OF FAST TRACK WHY THEY OPPOSE PROSPERITY IN MEXICO. - 16 - SOMEONE SHOULD ASK WHY THEY OPPOSE LETTING OUR NEIGHBORS ENJOY THE BENEFITS OF PROGRESS. Ask THEM WHAT IS WRONG WITH INCREASED PRODUCTIVITY THROUGHOUT THE CONTINENT. AND ASK THEM WHAT'S WRONG WITH A MORE STABLE MEXICO. A FREE-TRADE PACT WOULD ENCOURAGE INVESTMENT, CREATE JOBS, LIFT WAGES AND GIVE TALENTED MEXICAN CITIZENS OPPORTUNITIES THEY DON'T ENJOY TODAY. - 17 - A STRONGER MEXICO, IN TURN, MEANS A STRONGER UNITED STATES, AND A STRONGER NORTH AMERICAN ALLIANCE. So YOU SEE, WE HAVE MUCH TO GAIN FROM EXTENDING FAST TRACK -- A NEW ERA OF OPEN, FREE AND FAIR TRADE -- A FUTURE OF UNPRECEDENTED ECONOMIC GROWTH AND REGIONAL HARMONY. As WITH MOST GOOD THINGS IN LIFE, COMPETITION INVOLVES RISK. BUT WE ALWAYS HAVE BEEN A NATION OF RISK-TAKERS, ADVENTURERS. - 18 - OUR FOREFATHERS TRANSFORMED A ROUGH WILDERNESS INTO AN INDUSTRIAL SUPERPOWER. WE HAVE CREATED TECHNOLOGIES AND PRODUCTS UNLIKE ANY OTHERS PRODUCED IN HUMAN HISTORY. WE HAVE PLACED THE WISDOM OF THE AGES WITHIN REACH OF ANYONE WHO CAN OPERATE A COMPUTER. - 19 - THE VOTE ON FAST-TRACK -- AND ON THE TRADE AGREEMENTS -- REALLY IS A VOTE ON WHAT KIND OF AMERICA WE WANT TO BUILD. A "YES" VOTE EXPRESSES CONFIDENCE IN AMERICAN KNOW-HOW AND INGENUITY. IT SAYS WE BELIEVE IN OURSELVES. INDEED, AS WE PREPARE TO JOIN A WORLD LINKED PRIMARILY BY ECONOMIC / NOT MILITARY / COMPETITION, WE HAVE NOTHING TO FEAR BUT THE FEAR-MONGERS THEMSELVES. // 40 - 20 - THEY SEEM TO BE THE ONLY ONES WHO HAVEN'T LEARNED LATELY THAT DEFEATISM PRODUCES DEFEAT, WHILE CONFIDENCE AND SELF-RELIANCE PRODUCE GREATNESS. WE MUST SEIZE THE OPPORTUNITIES THAT THE NEW WORLD ECONOMY OFFERS US. WITH YOUR HELP, I KNOW WE WILL.// THANK YOU FOR YOUR SUPPORT, AND GOD BLESS OUR GREAT COUNTRY. # # # HISPANIC FREE TRADE BREAKFAST THE HOUSTONIAN / MONDAY, APRIL 8, 1991 / 8:15 A.M. THANK YOU, MIGUEL [MIGUEL SAN JUAN, VICE CHAIRMAN GREATER HOUSTON PARTNERSHIP], AND THANK YOU FOR ALL YOUR HARD WORK ON BEHALF OF THIS VERY IMPORTANT ISSUE. AND LIONEL SOSA, THOSE ADS WERE TERRIFIC! THANKS SO MUCH FOR ALL YOU HAVE DONE. MY OLD FRIEND, BoB MOSBACHER, OUR ABLE SECRETARY OF COMMERCE, GREAT TO SEE YOU HERE TODAY. - 2 - BoB, MIGUEL, LIONEL, FRIENDS OF THE HOUSTON CHAPTER OF THE HISPANIC ALLIANCE FOR FREE TRADE, AND ALL THOSE WHO ARE SUPPORTING FREER TRADE BETWEEN THE UNITED STATES AND OUR NEIGHBORS, GOOD MORNING. I'VE BEEN LOOKING FORWARD TO MEETING WITH YOU TODAY, BECAUSE I WANT TO DISCUSS TWO ISSUES IMPORTANT TO US ALL: AMERICA'S ABILITY TO COMPETE IN THE GLOBAL MARKETPLACE AND OUR ABILITY TO NEGOTIATE WITH OUR TRADING PARTNERS. - 3 - I'VE SAID MANY TIMES THAT THE HARD WORK OF FREEDOM AWAITS US. Now, I'M ASKING FOR YOUR HELP IN THAT CHALLENGE. LAST MONTH, I ASKED CONGRESS TO SUPPORT OUR "FAST TRACK" AUTHORITY IN TRADE NEGOTIATIONS. FAST TRACK IS A WAY OF ASSURING OUR TRADING COUNTERPARTS THAT THE AGREEMENTS THEY REACH AT THE BARGAINING TABLE WITH OUR NEGOTIATORS WILL BE THE SAME ONES REVIEWED BY OUR CONGRESS. - 4 - FAST-TRACK DOESN'T AFFECT CONGRESS' POWER To ACCEPT OR REJECT TRADE AGREEMENTS. BUT IT DOES PREVENT 11TH- HOUR CHANGES TO AGREEMENTS WE HAVE REACHED, CHANGES THAT FORCE EVERYONE INVOLVED TO START FROM SCRATCH. WE NEED FAST TRACK AUTHORITY TO PURSUE VITAL TRADE OBJECTIVES -- THE NORTH AMERICAN FREE TRADE AGREEMENT, THE URUGUAY ROUND AND THE ENTERPRISE FOR THE AMERICAS INITIATIVE. IF WE LOSE OUR FAST TRACK AUTHORITY, WE LOSE ANY HOPE OF ACHIEVING THESE THREE AGREEMENTS. - 5 - WE LOSE TRADE. WE LOSE JOBS AND JEOPARDIZE ECONOMIC GROWTH. HERE'S THE KEY: A VOTE AGAINST FAST-TRACK IS A VOTE AGAINST THINGS WE ALL HOLD DEAR -- PROSPERITY AT HOME -- GROWTH IN OTHER LANDS. IT IGNORES THE DRAMATIC AND WONDERFUL CHANGES IN THE WORLD ECONOMY. WE WANT TO PLAY A LEADING ROLE IN THAT EMERGING, EXCITING WORLD; WE DON'T WANT TO HIDE FROM IT. - 6 - WE WANT TO JOIN IN THE THRILLING BUSINESS OF INNOVATION; WE DON'T WANT TO CHAIN PEOPLE TO OUTMODED TECHNOLOGIES AND IDEAS. RIGHT NOW, WE HAVE THE CHANCE TO EXPAND OPPORTUNITY AND ECONOMIC GROWTH FROM THE YUKON TO THE YUCATAN. THINK OF IT: THE NORTH AMERICAN FREE TRADE AGREEMENT WOULD LINK US WITH OUR LARGEST TRADING PARTNER, CANADA, AND OUR THIRD-LARGEST PARTNER, MEXICO. - 7 - IT WOULD CREATE THE LARGEST, RICHEST TRADE ZONE ON EARTH -- 360 MILLION CONSUMERS IN A MARKET THAT GENERATES $6 TRILLION IN OUTPUT A YEAR. A UNIFIED NORTH AMERICAN MARKET WOULD LET EACH OF OUR COUNTRIES BUILD ON OUR STRENGTHS. IT WOULD PROVIDE MORE AND BETTER JOBS FOR U.S. WORKERS. IT WOULD STIMULATE PRICE COMPETITION, LOWER CONSUMER PRICES, IMPROVE PRODUCT QUALITY. - 8 - THE AGREEMENT WOULD MAKE NECESSITIES SUCH AS FOOD AND CLOTHING MORE AFFORDABLE, AND MORE AVAILABLE TO OUR POOREST CITIZENS. IT WOULD RAISE PRODUCTIVITY AND PRODUCE A HIGHER STANDARD OF LIVING THROUGHOUT THE CONTINENT. LET ME ILLUSTRATE THE STAKES INVOLVED IN THE FAST- TRACK DEBATE BY DISCUSSING THE MEXICAN COMPONENT OF THE NORTH AMERICAN FREE TRADE AGREEMENT. TRADE WITH MEXICO HAS HELPED BOTH OUR COUNTRIES. - 9 - JUST FOUR YEARS AGO, WE HAD A $4.9 BILLION TRADE DEFICIT WITH MEXICO. SINCE THEN, WE HAVE CUT THAT DEFICIT BY TWO-THIRDS, TO $1.8 BILLION. THIS TURNAROUND TOOK PLACE IN PART BECAUSE MEXICAN PRESIDENT CARLOS SALINAS BELIEVES IN FREE TRADE. HE HAS SLASHED TARIFF RATES FOR SOME GOODS FROM 100 PERCENT TO 10 PERCENT. ONE RESULT: OUR EXPORTS To MEXICO HAVE INCREASED 130 PERCENT IN THE PAST FOUR YEARS. - 10 - THIS EXPORT BOOM HAS CREATED MORE THAN 300,000 NEW JOBS IN THE UNITED STATES. AND EACH ADDITIONAL BILLION DOLLARS IN EXPORTS CREATES 20,000 NEW JOBS HERE IN THE UNITED STATES. Now, I DON'T HAVE TO TELL ANYONE IN THIS ROOM ABOUT MEXICO'S MARKET POTENTIAL -- 85 MILLION CONSUMERS WHO WANT TO BUY OUR GOODS. - 11 - NOR DO I HAVE TO TELL YOU THAT AS MEXICO GROWS AND PROSPERS, IT WILL NEED EVEN MORE OF THE GOODS WE'RE BEST AT PRODUCING -- COMPUTERS, MANUFACTURING EQUIPMENT, HIGH-TECH AND HIGH-VALUE PRODUCTS. UNFORTUNATELY, WE HAVE A TOUGH FIGHT AHEAD OF US. SOME MEMBERS OF CONGRESS ARE CONCERNED ABOUT THE POTENTIAL IMPACT THAT ANY AGREEMENT MAY HAVE ON AMERICAN JOBS, AMERICAN COMPANIES, AND AMERICAN EXPORTS. - 12 - OTHER MEMBERS OF CONGRESS SAY THEY WORRY ABOUT WAGE RATES, ENVIRONMENTAL QUALITY, AND HEALTH AND SAFETY ISSUES. /// I BELIEVE CONCERN ABOUT THOSE VERY SAME ISSUES IS THE STRONGEST ARGUMENT FOR SUPPORTING FAST-TRACK. LET'S TALK ABOUT THOSE CONCERNS. WE'VE ALREADY SEEN WHAT THE REDUCTION IN MEXICAN TARIFFS HAS DONE FOR AMERICAN EXPORTS. A FREE-TRADE AGREEMENT WOULD ELIMINATE THE REMAINING TARIFFS ENTIRELY. - 13 - THAT WOULD STIMULATE EXPORTS, CREATE NEW JOBS, GENERATE WEALTH AND HOPE ON BOTH SIDES OF THE BORDER. LET'S TAKE A LOOK AT THE IMPACT ON AMERICAN COMPANIES. WHEN TRADE BARRIERS VANISH, GOODS FLOW FREELY ACROSS BORDERS. AND EVERYBODY -- BUSINESSMEN AND WORKERS, TO FARMERS AND CONSUMERS -- REAPS THE BENEFITS OF GROWTH. - 14 - CONSIDER THE ENVIRONMENT: THE NORTH AMERICAN FREE TRADE AGREEMENT FITS INTO A WINNING STRATEGY FOR IMPROVING ENVIRONMENTAL QUALITY. OPPONENTS OF FAST- TRACK AND THE TRADE PACTS FORGET THAT PROSPERITY OFFERS THE SUREST ROAD TO WORKER SAFETY, PUBLIC HEALTH AND ENVIRONMENTAL QUALITY. THIS ADMINISTRATION WANTS TO ENSURE THAT MEXICAN ECONOMIC GROWTH GOES HAND IN HAND WITH ENVIRONMENTAL PROTECTION. - 15 - OUR E.P.A. IS ALREADY ASSISTING THE SALINAS GOVERNMENT WITH ITS ENVIRONMENTAL PROGRAMS. PRESIDENT SALINAS HAS SHOWN HE'S SERIOUS ABOUT CLEANING UP THE ENVIRONMENT - - BY REQUIRING ALL NEW CARS TO HAVE CATALYTIC CONVERTERS AND RECENTLY BY SHUTTING DOWN MEXICO'S LARGEST OIL REFINERY BECAUSE IT WAS POLLUTING THE AIR. I BELIEVE THAT PRESIDENT SALINAS CARES DEEPLY ABOUT HIS NATION AND ITS PEOPLE, AND THAT HE MEANS BUSINESS WHEN HE SAYS HE WANTS TO CLEAN UP MEXICO'S AIR AND WATER. - 16 - FINALLY, CONSIDER THE MATTER OF WORKING CONDITIONS IN MEXICO. As OUR TRADE WITH MEXICO HAS GROWN, so HAVE THE WAGES OF MEXICAN WORKERS. INDEED, MEXICAN WAGES HAVE RISEN VERY QUICKLY IN RECENT YEARS, WITH NO TANGIBLE IMPACT ON AMERICAN PAY SCALES. THAT BEING THE CASE, SOMEONE OUGHT TO ASK THE OPPONENTS OF FAST TRACK WHY THEY OPPOSE PROSPERITY IN MEXICO. - 17 - SOMEONE SHOULD ASK WHY THEY OPPOSE LETTING OUR NEIGHBORS ENJOY THE BENEFITS OF PROGRESS. Ask THEM WHAT IS WRONG WITH INCREASED PRODUCTIVITY THROUGHOUT THE CONTINENT. AND ASK THEM WHAT'S WRONG WITH A MORE STABLE MEXICO. A FREE-TRADE PACT WOULD ENCOURAGE INVESTMENT, CREATE JOBS, LIFT WAGES AND GIVE TALENTED MEXICAN CITIZENS OPPORTUNITIES THEY DON'T ENJOY TODAY. - 18 - A STRONGER MEXICO, IN TURN, MEANS A STRONGER UNITED STATES, AND A STRONGER NORTH AMERICAN ALLIANCE. So YOU SEE, WE HAVE MUCH To GAIN FROM EXTENDING FAST TRACK -- A NEW ERA OF OPEN, FREE AND FAIR TRADE -- A FUTURE OF UNPRECEDENTED ECONOMIC GROWTH AND REGIONAL HARMONY. As WITH MOST GOOD THINGS IN LIFE, COMPETITION INVOLVES RISK. BUT WE ALWAYS HAVE BEEN A NATION OF RISK-TAKERS, ADVENTURERS. - 19 - OUR FOREFATHERS TRANSFORMED A ROUGH WILDERNESS INTO AN INDUSTRIAL SUPERPOWER. WE HAVE CREATED TECHNOLOGIES AND PRODUCTS UNLIKE ANY OTHERS PRODUCED IN HUMAN HISTORY. WE HAVE PLACED THE WISDOM OF THE AGES WITHIN REACH OF ANYONE WHO CAN OPERATE A COMPUTER. THE VOTE ON FAST-TRACK REALLY IS A VOTE ON WHAT KIND OF AMERICA WE WANT To BUILD. A "YES" VOTE EXPRESSES CONFIDENCE IN AMERICAN KNOW-HOW AND INGENUITY. - 20 - IT SAYS WE BELIEVE IN OURSELVES. INDEED, AS WE PREPARE TO JOIN A WORLD LINKED PRIMARILY BY ECONOMIC / NOT MILITARY / COMPETITION, WE HAVE NOTHING TO FEAR BUT THE FEAR-MONGERS THEMSELVES. // THEY SEEM TO BE THE ONLY ONES WHO HAVEN'T LEARNED LATELY THAT DEFEATISM PRODUCES DEFEAT, WHILE CONFIDENCE AND SELF-RELIANCE PRODUCE GREATNESS. WE MUST SEIZE THE OPPORTUNITIES THAT THE NEW WORLD ECONOMY OFFERS US. WITH YOUR HELP, I KNOW WE WILL.// - 21 - THANK YOU FOR YOUR SUPPORT, AND GOD BLESS OUR GREAT COUNTRY. # # # THE WHITE HOUSE Office of the Press Secretary (Houston, Texas) For Immediate Release April 8, 1991 REMARKS BY THE PRESIDENT AT HISPANIC FREE TRADE BREAKFAST The Houstonian Houston, Texas 8:30 A.M. CDT THE PRESIDENT: Thank you all very much. And Miguel, thank you for your leadership for the Greater Houston Partnership. And to all of you who managed to get through security and struggle in here, why, --- (laughter) -- apologies for the delay, but I'm sure glad to see you. You know, these lights are bright. I can see many, many friendly faces out there, people with whom I've worked for one cause or another over the years. You have this wonderful way of making a guy feel at home. So thank you for coming. Lionel Sosa, I love those ads. They terrific. I believe they're going to be very effective. And I thank you for your energy and your expertise. Those are the people that -- also, would thank all of those who are helping you on this project. To my old friend, Bob Mosbacher, our able Secretary of Commerce, I'm glad to see him. He's slightly jet lagged out, having just returned from Japan on yet another mission to try to encourage our exports -- a mission in favor of free and fair trade -- something we must continue to press for, whether it's halfway across the world or whether it's in relation to our own neighbors to the south. And Bob is doing a great job, a leadership role in fighting for free trade, because he knows as I ão, and as all of you do, that the freer the trade is, the more job opportunities there are for the people of the United States of America, say nothing of our trading partners. And so I'm glad to see him back from his mission. I've been looking forward to this meeting today. We've had a series of these, as some of you know. Some have attended one in Washington, then we had one out in California, and now this. Because I do want to discuss with you two issues that are vitally important to all of us: America's ability to compete in the global marketplace and our ability to negotiate with our trading partners. That's what's at stake right now. I've said many times that the hard work challenge. of freedom awaits us. And now, I'm asking for your help in that I love the way that Mexico's very able President Carlos Salinas talked yesterday about the vision -- the vision of free and fair trade between the two countries. It's a vision that we share. Last month, I asked Congress to support this Fast-Track authority in trade negotiations. You see, Fast-Track is a way of assuring our trading counterparts that the agreements that they reach with us at that bargaining table, the one they reach with our negotiators will be the same ones that Congress has a chance to vote simply not true. on, up or down. Some are alleging Congress has no say. And that's Fast-Track doesn't affect Congress' power to accept or reject trade agreements. But it does prevent these 11th-hour changes to agreements that have been hammered out, changes that force everyone to start all over again. MORE - 2 - We need Fast-Track authority to pursue vital trade objectives -- the North American Free Trade Agreement, the Uruguay Round and the Enterprise for the Americas Initiative. If we lose our Fast-Track authority, we lose any hope of achieving these three vital agreements. The North American Free Trade Agreement, the Uruguay Round, and the Enterprise for the Americas Initiative. We lose trade. We lose jobs. And we jeopardize economic growth. Here's the key: A vote against Fast-Track is a vote against things that we all hold dear -- prosperity at home, and growth in other lands. It ignores the dramatic and wonderful changes in the world economy. We want to play a leading role in that emerging, exciting world; and we don't want to hide from it. We want to join in the thrilling business of innovation; and we do not want to chain people to outmoded technologies and ideas. Right now, we have the chance to expand opportunity and economic growth from the Yukon to the Yucatan. Think of it. The North American Free Trade Agreement would link us with our largest trading partner, Canada, and our third-largest trading partner, Mexico. It would create the largest, richest trade zone on Earth -- 360 million consumers in a market that generates $6 trillion in output in a single year. A unified North American market would let each of our countries build on our own strengths. It would provide more and better jobs for U.S. workers. Let me repeat that one: It would provide more and better jobs for U.S. workers. It would stimulate price competition, lower consumer prices, improve product quality. The agreement would make necessities such as food and clothing more affordable, more available to our poorest citizens. It would raise productivity and produce a higher standard of living throughout the continent. Let me illustrate the stakes involved in the Fast-Track debate by discussing the Mexican component of the North American Free Trade Agreement. Trade with Mexico has helped both our countries. Just four years ago, we had a $4.9 billion trade deficit with Mexico. Since then, we've cut that deficit by two-thirds, to $1.8 billion. This turnaround took place in part because Mexico's President believes in free trade. He's slashed tariff rates for some goods from 100 percent to 10 percent. One result: our exports to Mexico have increased 130 percent in the past four years. This export boom has created more than 300,000 new jobs here in the United States of America. And each additional billion dollars in exports creates 20,000 new jobs here in the United States. I don't have to tell anyone in this room about Mexico's market potential -- 85 million consumers who want to buy our goods. Nor do I have to tell you that as Mexico grows and prospers, it will need even more of the goods we're best at producing -- computers, manufacturing equipment, high-tech and high-value products. Unfortunately, we've got a tough fight ahead of us. Some members of Congress are concerned about the potential impact that any agreement may have on American jobs, American companies, American exports. Other members of Congress say that they worry about wage rates or environmental quality, health and safety issues. I believe -- I firmly believe that concern about those very same issues is the strongest argument for support for Fast-Track. Let me just talk about those concerns. We've already seen what the reduction in Mexican tariffs has done for our exports -- American exports to Mexico. A free trade agreement would eliminate the remaining tariffs entirely. That would stimulate - 3 - exports, create new jobs, generate wealth -- and hope, I might add, on both sides of the border. Let's take a look at the impact on American companies. When trade barriers vanish, goods flow freely across borders. And everybody -- businessmen and workers, to farmers and consumers -- reaps the benefits of growth. Consider the environment. The North American Free Trade Agreement fits into a winning strategy of improving environmental quality. Opponents of Fast-Track and the trade pacts forget that prosperity offers the surest road to worker safety, public health and, indeed, environmental quality. This administration wants to ensure that Mexican economic growth goes hand in hand with the environmental protection. Our EPA is already assisting the Salinas government with its environmental programs. President Salinas has shown that he's serious about cleaning up the environment -- by requiring all new cars to have catalytic converters, and recently, I'm sure all of us noticed with pride and pleasure the fact that he shut down Mexico's largest oil refinery because, frankly, it was just too much pollution into the air. I believe that -- I know that President Salinas cares deeply about his nation and its people, and that he means business when he says he wants to clean up Mexico's air and water. Finally, consider the matter of working conditions in Mexico. As our trade with Mexico has grown, so have the wages of Mexican workers. Indeed, Mexican wages have risen very quickly in recent years, with no tangible impact on America's pay scales. That being the case, someone ought to ask the opponents of Fast-Track why they oppose prosperity in Mexico. Someone should ask why they oppose letting our neighbors enjoy the benefits of progress. These are our friends. These are our neighbors. Ask them what's wrong with increased productivity throughout the whole continent. We benefit when others in this continent prosper. And ask them what's wrong with a more stable Mexico. A free-trade pact would encourage investment, would create jobs, would lift wages and give talented Mexican citizens opportunities that they don't enjoy today. A stronger Mexico, in turn, means a stronger United States; it means a stronger North American alliance. So, you see, we have much to gain from extending Fast-Track -- a new era of open, free and fair trade -- a future of unprecedented economic growth and regional harmony. As with most good things in life, competition involves risk. But we always have been a nation of risk-takers, of adventurers. Our forefathers transformed a rough wilderness into an industrial superpower. We've created technologies and products unlike any others produced in human history. We've placed the wisdom of the ages within reach of anyone who can operate a computer. The vote on Fast-Track is really a vote on what kind of America we want to build. A "yes" vote expresses confidence in American know-how and ingenuity. I say we believe in ourselves. I want to make clear that this isn't a partisan political issue. I want to salute those Democratic leaders in the United States Congress, including our own Senator Lloyd Bentsen, who's a key player in this debate; and others in the House -- Speaker Foley -- who have the vision to say this is good for the United States and it's good for Mexico. I'm going to approach this strictly in a nonpartisan, nonpolitical manner. It is too important to get it bogged down in partisan politics. I take great pride in the fact that the relationship between Mexico and the United States has never been better. But it is my view that we owe the Mexicans the opportunity that they will get from Fast-Track. And when they get that opportunity it is going to benefit the United States of America. - 4 - And so I will be fighting my heart out to win passage of this. I was very privileged to receive for the second time in Houston the able President of Mexico yesterday. He's Going a first-class job. He's moved that country in ways that some of his critics would have never dared dream possible. And I think that it is in our interest now to build on this improved and strengthened relationship to give them and give ourselves the benefit of free and fair trade. So as we join a world that is linked primarily by economic -- not military -- competition, we have nothing to fear except the fear-mongers themselves. They seem to be the only ones who haven't learned lately that defeatism produces defeat, while confidence and self-reliance produce greatness. We've got to seize the opportunities that this new world economy offers us. And with your help, I am absolutely convinced that we will do it. So once again, thank you for coming. And I pledge to each and every one of you that this goal is so important to the United States that it will be priority with me, with Secretary Mosbacher, with every other member of the Bush administration in Washington, D.C. We are going to win this fight. But we need your help. Thank you all very, very much. (Applause.) END 8:45 A.M. CDT