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Society of American Business Writers and Editors 5/1/91 [OA 8322]
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26
21
3
6
SOCIETY OF BUSINESS EDITORS AND WRITERS
WASHINGTON MARRIOTT \ MAY 1, 1991 \ 12:15 P.M.
THANK YOU, JIM. IT'S ALSO GOOD TO SEE SANDY DUERR
[DEW-ERR], RANDY SMITH, AND SUSAN THOMSON.
GOOD AFTERNOON. It's PLEASURE To MEET WITH YOU
TODAY -- I'VE BEEN LOOKING FORWARD TO THIS CHANCE TO
DISCUSS AN ISSUE OF IMPORTANCE TO ALL OF US: ECONOMIC
GROWTH IN AMERICA.
- 2
WHILE EXPERTS DISAGREE ABOUT THE LENGTH AND DEPTH
OF THE RECESSION, WE MUST COMMIT OURSELVES TO POLICIES
THAT WILL PROMOTE GROWTH AND PROSPERITY INTO THE NEXT
CENTURY. THIS ADMINISTRATION'S ECONOMIC GROWTH PACKAGE
-- INCLUDING OUR URGENT REQUEST TO EXTEND FAST-TRACK
TRADE PROCEDURES -- CAN DO JUST THAT. IT CAN SET US ON
A PATH TOWARD LONG-TERM, MARKET-DRIVEN ECONOMIC GROWTH.
OUR ADMINISTRATION'S GROWTH PACKAGE BEGINS WITH
CONTROL OF FEDERAL SPENDING.
- 3 -
LAST YEAR'S CONTROVERSIAL BIPARTISAN BUDGET AGREEMENT
FINALLY PUT THE FEDERAL GOVERNMENT ON A PAY-AS-YOU-GO
DIET. IT CUT THE GROWTH OF FEDERAL DEBT OVER THE NEXT
FIVE YEARS BY NEARLY $500 BILLION. THAT EXTRA CAPITAL
CAN HELP GENERATE NEW JOBS.
To INCREASE PRIVATE SAVINGS AND INVESTMENT WE HAVE
PROPOSED TAX-FREE FAMILY SAVINGS ACCOUNTS, AND PENALTY-
FREE WITHDRAWALS FROM IRA's FOR FIRST-TIME HOME BUYERS.
- 4 -
WE HAVE PROPOSED CUTTING THE TAX ON LONG-TERM CAPITAL
GAINS. THAT WOULD REDUCE THE TAX CODE'S BIAS IN FAVOR
OF DEBT; EXPAND INCENTIVES TO INVEST; GIVE HOPE To THE
SMALL ENTREPRENEUR WITH THE BIG IDEA; REINVIGORATE THE
AMERICAN DREAM.
WE ALSO WANT TO TAKE ON THE PROBLEM OF EXCESSIVE
REGULATION. WE ALL KNOW THE STRANGLING EFFECT THAT RED
TAPE AND OVERREGULATION CAN HAVE ON BUSINESSES. EVERY
TIME WE WRITE NEW LAWS, WE WRITE NEW REGULATIONS.
- 5 -
SOME OF THESE REGULATIONS ARE NEEDED. SOME ARE NOT.
WE MUST REDOUBLE OUR EFFORTS TO FREE OUR PEOPLE FROM
UNNECESSARY REGULATIONS.
THE COUNCIL ON COMPETITIVENESS, CHAIRED BY THE VICE
PRESIDENT, REVIEWS ALL MAJOR NEW GOVERNMENT REGULATIONS
TO ENSURE THAT REGULATORY BENEFITS OUTWEIGH THE BURDENS
IMPOSED ON THE ECONOMY. THE COUNCIL WILL LOOK
CAREFULLY AT EVERYTHING FROM THE NEW CLEAN AIR
REGULATIONS TO WAYS OF APPROVING NEW BIOTECHNOLOGY
PRODUCTS.
- 6 -
WE SHOULD NOT DENY PEOPLE THE BENEFITS THAT COME FROM
PRODUCTS THAT IMPROVE -- OR EVEN SAVE -- LIVES.
WE'VE ALSO SENT TO THE HILL OUR FINANCIAL INDUSTRY
REFORM BILL. OUR COMPREHENSIVE PACKAGE WILL PUT OUR
FINANCIAL SERVICES SYSTEM ON A SOUND FOOTING, AND
MODERNIZE OUR OUTDATED BANKING LAWS. WE'VE PROPOSED:
-- REFORMING THE McFadden AcT. THIS MEANS LETTING
FINANCIAL INSTITUTIONS COMPETE ACROSS STATE LINES.
- 7 -
-- REFORMING GLASS-STEAGLE. THIS WOULD LET BANKS
OFFER A BROADER RANGE OF FINANCIAL SERVICES TO THEIR
CUSTOMERS -- AND IN THE PROCESS To COMPETE MORE
EFFECTIVELY ON INTERNATIONAL MARKETS.
-- REFORMING DEPOSIT INSURANCE -- RETURN IT TO ITS
ORIGINAL PURPOSE, WHICH WAS TO PROTECT AVERAGE
DEPOSITORS.
-- STRENGTHENING BANK SUPERVISION, so THAT WE MIGHT
BE ABLE TO INTERVENE BEFORE BANKS FAIL.
- 8 -
IT'S TIME WE BROUGHT OUR BANKING SYSTEM INTO THE
21st CENTURY -- so THAT OUR BANKS CAN FUEL ECONOMIC
GROWTH. BUT IN ORDER To DO THAT, WE NEED COMPREHENSIVE
REFORM -- NOT JUST A QUICK AND NARROW FIX.
THESE FORWARD-LOOKING PROPOSALS ARE ONLY ONE PART
OF OUR VISION FOR A STRONG AND VIBRANT AMERICAN
ECONOMY. OUR REQUEST TO EXTEND FAST-TRACK PROCEDURES
LOOKS BEYOND OUR BORDERS -- TO THE INTERNATIONAL
MARKET.
- 9 -
IN RECENT YEARS, TRADE HAS KEPT OUR ECONOMY
GROWING. EXPORT BUSINESS ACCOUNTED FOR 84 PERCENT OF
OUR ECONOMIC GROWTH LAST YEAR. THAT'S NOTHING NEW.
MERCHANDISE EXPORTS HAVE RISEN 73 PERCENT IN THE LAST
FOUR YEARS -- MORE THAN TWICE THE RATE OF IMPORT
GROWTH.
RECENT, UNPARALLELED GROWTH IN WORLD TRADE HAS
PRODUCED HUGE BENEFITS FOR US. OUR FREE TRADE
AGREEMENT WITH CANADA HAS OPENED UP PREVIOUSLY CLOSED
AGRICULTURAL MARKETS.
- 10 -
OUR AGRICULTURAL EXPORTS TO CANADA INCREASED 7 PERCENT
DURING THE FIRST TWO YEARS OF THE AGREEMENT -- AND WE
EXPECT THE GROWTH TO INTENSIFY AS THE AGREEMENT TAKES
FULL EFFECT.
OUR TRADE STRATEGY IS SIMPLE: WE WANT TO BUILD ON
THAT SUCCESS. THE UNITED STATES WILL CONTINUE TO LEAD
THE WORLD TOWARD A SYSTEM OF FREE TRADE AND OPEN
MARKETS.
- 11 -
THAT SYSTEM MAKES AMERICAN GENIUS AVAILABLE TO THE
WHOLE WORLD -- AND GIVES AMERICANS ACCESS TO THE GOOD
IDEAS AND GOOD PRODUCTS FROM ABROAD. TRADE MEANS
ECONOMIC GROWTH AND JOBS FOR ALL AMERICANS.
THAT'S WHY EXTENSION OF OUR "FAST TRACK" PROCEDURES
IN TRADE NEGOTIATIONS IS SO CRUCIAL. FAST TRACK LETS
US OPEN UP NEW MARKETS, NEW OPPORTUNITIES.
FAST TRACK REALLY IS ANOTHER TERM FOR "GOOD FAITH."
- 12 -
IT MEANS THAT WE WILL CONSULT CLOSELY WITH CONGRESS AND
THE PRIVATE SECTOR DURING TRADE TALKS. IT MEANS THAT
WE WILL NOT TINKER WITH TRADE AGREEMENTS WORKED OUT BY
OUR NEGOTIATORS AND THEIR FOREIGN COUNTERPARTS.
IT GIVES EVERYONE A FAIR SAY IN TRADE TALKS. IT
DOES NOT TAKE AWAY CONGRESS' POWER TO REVIEW TRADE
AGREEMENTS. CONGRESS WILL HAVE ITS SAY.
- 13 -
IT WILL HAVE A FINAL VOTE ON ACCEPTING OR REJECTING
AGREEMENTS AS WRITTEN, AND IT WILL CONDUCT THAT VOTE
WITHIN A REASONABLE PERIOD OF TIME.
IT GIVES THE AMERICAN PEOPLE A FAIR SAY. WE WILL
TAKE ALL THE TIME NECESSARY TO ADDRESS THE ISSUES THAT
CONCERN AMERICANS.
FAST TRACK LETS US TREAT OUR FOREIGN COUNTERPARTS
FAIRLY.
- 14 -
IT PROMISES THAT WE WILL NOT ATTACH AMENDMENTS OR MAKE
CHANGES, SINCE TO DO SO COULD FORCE NEGOTIATORS TO CALL
OFF TALKS OR START AGAIN FROM SQUARE ONE.
OUR TRADING PARTNERS CONSIDER FAST-TRACK AN
ESSENTIAL INGREDIENT FOR SUCCESSFUL TRADE TALKS. WE
HAVE HAD FAST TRACK AUTHORITY SINCE 1974, AND WE WILL
NEED TO KEEP IT IF WE HOPE TO PURSUE VITAL TRADE
AGREEMENTS -- THE URUGUAY ROUND OF THE GATT TALKS, THE
NORTH AMERICAN FREE TRADE AGREEMENT AND THE ENTERPRISE
FOR THE AMERICAS INITIATIVE.
- 15 -
WITHOUT FAST TRACK, WE JEOPARDIZE THOSE AGREEMENTS. WE
JEOPARDIZE TRADE. WE JEOPARDIZE AMERICAN JOBS.
RIGHT NOW, WE HAVE THE CHANCE TO LOOK FORWARD, TO
EXPAND ECONOMIC GROWTH AND OPPORTUNITY FROM THE YUKON
TO THE YUCATAN. THE NORTH AMERICAN FREE TRADE
AGREEMENT WITH CANADA, OUR LARGEST TRADING PARTNER, AND
MEXICO, OUR THIRD LARGEST PARTNER, WOULD CREATE THE
LARGEST, RICHEST MARKET IN THE WORLD.
- 16 -
THINK ABOUT IT: 360 MILLION CONSUMERS AND $6 TRILLION
IN ANNUAL OUTPUT. 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.
- 17 -
AND THE RESULTING ECONOMIC INTEGRATION WILL STRENGTHEN
AMERICAN BUSINESSES IN THE GLOBAL MARKETPLACE.
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, MEXICAN PRESIDENT CARLOS SALINAS HAS SLASHED
TARIFF RATES.
- 18 -
OUR EXPORTS TO MEXICO HAVE INCREASED NEARLY 130 PERCENT
-- TO $28 BILLION -- AND OUR TRADE DEFICIT HAS SHRUNK
TWO-THIRDS, TO $1.8 BILLION.
THIS EXPORT BOOM HAS CREATED AN ESTIMATED 264,000
NEW JOBS IN THE UNITED STATES. AND EACH ADDITIONAL
BILLION DOLLARS IN EXPORTS CREATES NEARLY 20,000 NEW
JOBS HERE IN THE UNITED STATES.
- 19 -
MEANWHILE, THE TRADE BOOM HAS OFFERED NEW
OPPORTUNITIES FOR MEXICAN WORKERS, HAS OFFERED
PROSPERITY TO THOSE WHO BEFORE HAD LIVED IN SQUALOR.
SOME PEOPLE ARE CONCERNED ABOUT OUR NEGOTIATIONS
WITH MEXICO. JUST THIS MORNING, I SENT A DETAILED
REPORT TO CHAIRMEN BENTSEN AND ROSTENKOWSKI AND
MAJORITY LEADER GEPHARDT WHICH, I BELIEVE, RESPONDED TO
THOSE CONCERNS. I GAVE THEM MY PERSONAL COMMITMENT TO
CLOSE BIPARTISAN COOPERATION IN THE NEGOTIATIONS.
- 20 --
WHILE ECONOMIC STUDIES SHOW THAT A FREE TRADE
AGREEMENT WOULD PRODUCE JOBS IN THE UNITED STATES -- AS
WELL AS GREATER EXPORTS AND OUTPUT -- I KNOW THERE IS
CONCERN ON CAPITOL HILL ABOUT SOME JOB LOSSES. OUR
NEGOTIATORS WILL ADDRESS THESE CONCERNS IN PROVISIONS
OF THE NORTH AMERICAN FREE TRADE AGREEMENT. WE WILL
ENSURE AN ADEQUATE TRANSITION PERIOD FOR WORKERS IN
IMPORT-SENSITIVE INDUSTRIES.
- 21 -
WE WILL WORK WITH CONGRESS TO SEE THAT DISLOCATED
WORKERS RECEIVE PROPER ASSISTANCE AND RETRAINING.
AT THE SAME TIME, IT IS WORTH NOTING THAT THE
AGREEMENT WILL CREATE HIGH-WAGE, HIGH-SKILL
MANUFACTURING JOBS IN THE MACHINERY, COMPUTER,
TELECOMMUNICATIONS AND ELECTRONICS INDUSTRIES. As
MEXICO DEVELOPS FURTHER, IT WILL NEED EVEN MORE OF
THESE HIGH=TECH GOODS AND SERVICES. THOSE GOODS AND
SERVICES ARE MORE LIKELY TO COME FROM THE UNITED STATES
THAN FROM ANYONE ELSE IN THE WORLD.
- 22 -
SECONDLY, PRESIDENT SALINAS AND THE MEXICAN PEOPLE
HAVE NO INTEREST IN ALLOWING THEIR COUNTRY TO BECOME A
POLLUTION HAVEN FOR U.S. COMPANIES. BECAUSE ECONOMIC
GROWTH GOES HAND IN HAND WITH ENVIRONMENTAL PROTECTION,
WE WILL EXPAND ENVIRONMENTAL COOPERATION PROGRAMS
PARALLEL TO THE FREE TRADE TALKS.
AND FINALLY, PRESIDENT SALINAS HAS ALSO MADE IT
CLEAR THAT THIS AGREEMENT WILL IMPROVE OPPORTUNITIES
FOR MEXICAN WORKING PEOPLE.
- 23 -
MEXICO HAS STRONG LAWS REGULATING LABOR STANDARDS AND
WORKERS RIGHTS. BEYOND THOSE, WE WILL ALSO BEGIN NEW
INITIATIVES TO EXPAND LABOR COOPERATION BETWEEN OUR TWO
COUNTRIES.
NONE OF THESE THINGS WILL HAPPEN, HOWEVER, IF WE
CANNOT BARGAIN IN GOOD FAITH -- IF THE FAST TRACK
PROCEDURES WE HAVE EMPLOYED FOR 17 YEARS SUDDENLY ARE
WITHDRAWN OR WEAKENED. THE UNITED STATES MUST CONTINUE
TO OPEN NEW MARKETS, CREATE NEW TECHNOLOGIES, AND SEIZE
NEW OPPORTUNITIES BEFORE US.
- 24 -
I AM CONFIDENT -- AND so ARE THE AMERICAN PEOPLE --
THAT WE CAN AND WILL PREVAIL IN THIS EXCITING AND
CHALLENGING WORLD. AND I AM CONFIDENT THAT AS WE HEAD
INTO THE NEXT CENTURY -- THE NEXT AMERICAN CENTURY -- A
STRONG AND HEALTHY AMERICA THAT WILL LEAD THE WAY.
GOD BLESS YOU ALL AND THANK YOU. I BELIEVE I NOW
HAVE TIME FOR TWO QUESTIONS.
# # #
THE WHITE HOUSE
Office of the Press Secretary
EMBARGOED FOR RELEASE
UNTIL 12:20 P.M. EDT
WEDNESDAY, MAY 1, 1991
TEXT OF REMARKS BY THE PRESIDENT
AT THE ANNUAL CONVENTION OF THE SOCIETY OF
AMERICAN BUSINESS EDITORS AND WRITERS
Washington Marriott Hotel
Washington, DC
May 1, 1991
It's pleasure to meet with you today. I've been looking forward
to this chance to discuss an issue of importance to all of us:
economic growth in America.
While experts disagree about the length and depth of the
recession, we must commit ourselves to policies that will promote
growth and prosperity into the next century. This
Administration's economic growth package, including our urgent
request to extend fast-track trade procedures, can do just that.
It can set us on a path toward long-term, market-driven economic
growth.
Our Administration's growth package begins with control of
Federal spending. Last year's controversial bipartisan budget
agreement finally put the Federal Government on a pay-as-you-go
diet. It cut the growth of Federal debt over the next five years
by nearly $500 billion. That extra capital can help generate new
jobs.
To increase private savings and investment, we have proposed
tax-free family savings accounts, and penalty-free withdrawals
from IRA's for first-time home buyers. We have proposed cutting
the tax on long-term capital gains. That would reduce the tax
code's bias in favor of debt; expand incentives to invest; give
hope to the small entrepreneur with the big idea; reinvigorate
the American dream.
We also want to take on the problem of excessive regulation. We
all know the strangling effect that red tape and overregulation
can have on businesses. Every time we write new laws, we write
new regulations. Some of these regulations are needed. Some are
not. We must redouble our efforts to free our people from
unnecessary regulations.
The Council on Competitiveness, chaired by the Vice President,
reviews all major new government regulations to ensure that
regulatory benefits outweigh the burdens imposed on the economy.
The Council will look carefully at everything from the new Clean
Air regulations to ways of approving new biotechnology products.
We should not deny people the benefits that come from products
that improve or even save lives.
We've also sent to the Hill our financial industry reform bill.
Our comprehensive package will put our financial services system
on a sound footing, and modernize our outdated banking laws.
We've proposed:
- more -
2
-- Reforming the McFadden Act. This means letting financial
institutions compete across state lines.
-- Reforming Glass-Steagle. This would let banks offer a
broader range of financial services to their customers --
and in the process to compete more effectively on
international markets.
-- Reforming deposit insurance -- return it to its original
purpose, which was to protect average depositors.
-- Strengthening bank supervision, so that we might be able to
intervene before banks fail.
It's time we brought our banking system into the 21st Century so
that our banks can fuel economic growth. But in order to do
that, we need comprehensive reform, not just a quick and narrow
fix.
These forward-looking proposals are only one part of our vision
for a strong and vibrant American economy. Our request to extend
fast-track procedures looks beyond our borders to the
international market.
In recent years, trade has kept our economy growing. Export
business accounted for 84 percent of our economic growth last
year. That's nothing new. Merchandise exports have risen 73
percent in the last four years -- more than twice the rate of
import growth.
Recent, unparalleled growth in world trade has produced huge
benefits for us. Our Free Trade Agreement with Canada has opened
up previously closed agricultural markets. Our agricultural
exports to Canada increased 7 percent during the first two years
of the agreement, and we expect the growth to intensify as the
agreement takes full effect.
Our trade strategy is simple: We want to build on that success.
The United States will continue to lead the world toward a system
of free trade and open markets. That system makes American
genius available to the whole world and gives Americans access to
the good ideas and good products from abroad. Trade means
economic growth and jobs for all Americans.
That's why extension of our fast track procedures in trade
negotiations is so crucial. Fast track lets us open up new
markets, new opportunities.
Fast track really is another term for "good faith." It means
that we will consult closely with Congress and the private sector
during trade talks. It means that we will not tinker with trade
agreements worked out by our negotiators and their foreign
counterparts.
It gives everyone a fair say in trade talks. It does not take
away Congress' power to review trade agreements. Congress will
have its say. It will have a final vote on accepting or
rejecting agreements as written, and it will conduct that vote
within a reasonable period of time.
It gives the American people a fair say. We will take all the
time necessary to address the issues that concern Americans.
Fast track lets us treat our foreign counterparts fairly. It
promises that we will not attach amendments or make changes,
since to do so could force negotiators to call off talks or start
again from square one.
- more -
3
Our trading partners consider fast track an essential ingredient
for successful trade talks. We have had fast track authority
since 1974, and we will need to keep it if we hope to pursue
vital trade agreements -- the Uruguay Round of the GATT talks,
the North American Free Trade Agreement and the Enterprise for
the Americas Initiative. Without fast track, we jeopardize those
agreements. We jeopardize trade. We jeopardize American jobs.
Right now, we have the chance to look forward, to expand economic
growth and opportunity from the Yukon to the Yucatan. The North
American Free Trade Agreement with Canada, our largest trading
partner, and Mexico, our third largest partner, would create the
largest, richest market in the world. Think about it: 360
million consumers and $6 trillion in annual output.
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. And the resulting economic integration will
strengthen American businesses in the global marketplace.
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, Mexican President Carlos Salinas has slashed
tariff rates. Our exports to Mexico have increased nearly 130
percent -- to $28 billion -- and our trade deficit has shrunk
two-thirds -- to $1.8 billion.
This export boom has created an estimated 264,000 new jobs in the
United States. And each additional billion dollars in exports
creates nearly 20,000 new jobs here in the United States.
Meanwhile, the trade boom has offered new opportunities for
Mexican workers, has offered prosperity to those who before had
lived in squalor.
Some people are concerned about our negotiations with Mexico.
Just this morning, I sent a detailed report to Chairmen Bentsen
and Rostenkowski and Majority Leader Gephardt which, I believe,
responded to those concerns. I gave them my personal commitment
to close bipartisan cooperation in the negotiations.
While economic studies show that a free trade agreement would
produce jobs in the United States, as well as greater exports and
output, I know there is concern on Capitol Hill about some job
losses. Our negotiators will address these concerns in
provisions of the North American Free Trade Agreement. We will
ensure an adequate transition period for workers in
import-sensitive industries. We will work with Congress to see
that dislocated workers receive proper assistance and retraining.
At the same time, it is worth noting that the agreement will
create high-wage, high-skill manufacturing jobs in the machinery,
computer, telecommunications and electronics industries. As
Mexico develops further, it will need even more of these
high-tech goods and services. Those goods and services are more
likely to come from the United States than from anyone else in
the world.
- more -
4
Secondly, President Salinas and the Mexican people have no
interest in allowing their country to become a pollution haven
for U.S. companies. Because economic growth goes hand in hand
with environmental protection, we will expand environmental
cooperation programs parallel to the free trade talks.
And finally, President Salinas has also made it clear that this
agreement will improve opportunities for Mexican working people.
Mexico has strong laws regulating labor standards and workers'
rights. Beyond those, we will also begin new initiatives to
expand labor cooperation between our two countries.
None of these things will happen, however, if we cannot bargain
in good faith -- if the fast track procedures we have employed
for 17 years suddenly are withdrawn or weakened. The United
States must continue to open new markets, create new technologies
and seize new opportunities before us. I am confident, and so
are the American people, that we can and will prevail in this
exciting and challenging world. And I am confident that as we
head into the next century -- the next American Century -- a
strong and healthy America will lead the way.
# # #
Larry Lindsey
THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release
April 9, 1991
THE PRESIDENT'S ECONOMIC GROWTH AGENDA
FACT SHEET
The President believes that a strong, growing, and dynamic
economy enhances job creation and opportunity for all
Americans. The Administration is pursuing an economic growth
agenda built around four principles:
Encouraging Savings and Investment
Opening New Opportunities in International Markets
Promoting an Educated and Dynamic Workforce
Reducing the Burden of Government Regulation
I. ENCOURAGING SAVINGS AND INVESTMENT
The President is committed to creating conditions that foster
long-term, market-driven economic growth. The Administration
is taking important steps to lower the cost of capital and to
encourage entrepreneurship, savings, investment, and
innovation. The President is pursuing policies that will lower
the barriers to the formation of productive capital and ensure
that our physical, human, and technological infrastructure
remains the finest in the world.
A. Reducing the Cost of Capital
Controlling Government Borrowing
The President is committed to controlling Federal
government spending. Last year's budget agreement
will decrease the Federal government's borrowing
requirements by nearly $500 billion over the next
five years. The agreement's spending caps set limits
for discretionary spending while a pay-as-you-go
system will force new mandatory spending to be offset
by revenue increases or reductions in other programs.
2
Increasing Private Savings and Investment in the Economy
The President has repeatedly called for a reduction
in the capital gains tax rate and has asked Federal
Reserve Chairman Alan Greenspan to lead a technical
study of the economic effects of the capital gains
reduction.
The Administration's Fiscal Year 1992 Budget also
includes proposals for Family Savings Accounts which
will create needed incentives to save and penalty-
free IRA withdrawals for first-time home buyers.
Encouraging an Innovative and Sound Financial System
The Administration's financial industry reform
package will help ensure the continued strength of
our Nation's financial system. Comprehensive banking
reform will modernize our outdated banking laws,
protect taxpayers and depositors, help alleviate
tight credit conditions, and make our financial
institutions more competitive at home and abroad.
B.
Investing in Infrastructure and Research and Development
Revitalizing our Transportation Infrastructure
The Administration is proposing a significant
increase in Federal highway spending, from $14.6
billion in 1991 budget authority to $20.3 billion in
1996. On a cumulative basis, almost $88 billion will
be provided for highway construction and
rehabilitation over the next five years. The
Administration is also proposing a 17 percent
increase in budget authority for our Nation's
aviation systems.
Expanding Research and Development
The President's FY 1992 budget includes $76 billion
for research and development, an $8.4 billion (13
percent) increase over 1991 levels. To encourage
private sector R&D, the President supports the
permanent extension of the Research and
Experimentation Tax Credit.
Implementing the National Energy Strategy
The President transmitted his National Energy
Strategy to the Congress in February. The Strategy
is a comprehensive and balanced plan for a secure,
3
efficient, and environmentally sound energy future.
Over the next two decades, the Strategy will remove
unnecessary barriers to market forces so that ample
supplies of affordable energy can continue to foster
economic growth.
II. OPENING NEW OPPORTUNITIES IN INTERNATIONAL MARKETS
Throughout the postwar period, the United States has led the
world toward a system of free trade and open markets. The
benefits of global economic integration and expanded
international trade have been enormous, at home and abroad.
The President and his Administration are aggressively working
with the Congress to remove the remaining barriers to
international trade and investment in our own hemisphere and
throughout the world. Today, America is in the midst of an
export boom. Merchandise exports have risen 55 percent in the
last 4 years -- twice as fast as imports. Continuation of fast
track authority for congressional approval of trade agreements
is crucial to the President's trade strategy.
A.
Successfully Concluding the Uruguay Round Negotiations
The President's top trade priority remains the Uruguay
Round negotiations of the General Agreement on Tariffs and
Trade. Success in the Uruguay Round will open
agricultural markets, lower or eliminate tariffs on many
products, strengthen the GATT system, and extend it to
cover important new areas -- such as services, investment
and intellectual property -- critical to U.S. economic
vitality. A strong multilateral trading system is
essential to America's economic future, since it assures
our businesses access to growth markets in Europe and
Asia.
B.
North American Free Trade Agreement
The President has committed with Mexican President Salinas
and Canadian Prime Minister Mulroney to negotiate a North
American Free Trade Agreement (NAFTA). Creation of a
NAFTA, with a market of some 360 million consumers and
total output of $6 trillion, would be a catalyst for
economic growth and development throughout the three
countries.
The U.S.-Canada Free Trade Agreement has contributed to
growth in both economies in its first two years.
4
Bilateral trade increased approximately nine percent from
1988 to 1989 and 4.2 percent from 1989 to 1990 despite a
slowdown in both economies.
C.
Advancing the Enterprise for the Americas Initiative
The Enterprise for the Americas Initiative promises to
fuel growth and prosperity throughout this hemisphere by
removing barriers to trade and investment. This
Initiative also aims to provide official debt reduction to
countries engaged in significant economic reforms and
thereby to build on the Administration's ongoing support
for commercial debt reduction. Restoring Economic growth
in Latin America will boost U.S. trade, since the region
is a natural market for American goods, services, and
investment.
D.
Challenging Unfair Trade Barriers
The Administration is pursuing numerous bilateral
initiatives aimed at persuading foreign governments to
open their markets and remove unfair barriers to American
goods, services, and investment. In addition, the
Administration is involved in ongoing bilateral
negotiations with Japan to identify and eliminate
structural factors that may impede balance of payments
adjustment and efficient patterns of world trade. Our
policy is to address trade concerns by opening foreign
markets, not by closing our own.
E.
Promoting the Nation's Exports
The President is committed to building on these market-
opening initiatives by expanding the nation's exports, a
major source of growth in recent years. The Trade
Promotion Coordinating Committee has for the first time
brought together the resources of eighteen Federal
agencies to provide one-stop shopping to U.S. businesses
seeking help in exporting. As part of this effort, the
Department of Commerce is sponsoring a series of seminars
across the country to help prospective exporters expand
overseas sales.
5
III. PROMOTING AN EDUCATED AND DYNAMIC WORKFORCE
The President believes that long-term economic growth requires
skilled and adaptable workers as well as modern capital and new
technology. The Administration is taking important steps to
ensure that American workers are well-educated and highly-
skilled and that U.S. labor markets remain the world's most
dynamic and flexible.
A.
Restructuring the Education System
The President is committed to educational excellence
for all Americans. He has advocated choice in education,
increased flexibility in education-related funding in
exchange for greater accountability, alternative
certification for teachers and principals, rewards for
outstanding teachers and for schools that improve their
students' achievements, and innovative approaches
to mathematics and science education. In partnership with
the Nation's governors, the Administration is working to
determine how best to measure and monitor progress toward
the national education goals. The President will soon
propose a new Educational Excellence Act with additional
initiatives.
B.
Maintaining Flexible Labor Markets
The President has taken a number of steps to preserve the
dynamism which is the hallmark of U.S. labor markets. He
has continued to oppose mandated employer benefits which
will reduce the options available to employees and slow
down job growth in the economy. The President supports
flexible benefit packages, negotiated between employers
and employees.
The President opposes recent efforts to undermine more
than fifty years of balance in labor/management relations.
He objects to current Striker Replacement Legislation that
would prohibit employers' ability to continue operations
during labor disputes through the use of permanent
replacement workers: Cooperation, not confrontation, is
the key to international competitiveness.
The Immigration Act of 1990, the first major reform of
legal immigration in a quarter-century, will substantially
increase the overall level of immigration, particularly of
skilled workers. These new workers will contribute to
U.S. economic growth.
6
C.
Improving our Job Training Efforts
The President proposed amendments to the Job Training
Partnership Act (JTPA) which would have targeted job
training efforts toward severely disadvantaged adult and
youth workers. In an effort to reach youth in poverty
stricken inner-city neighborhoods and rural communities, a
new Youth Opportunities Unlimited (YOU) Program was
proposed for certain high-poverty areas. In addition, the
Job Opportunities and Basic Skills Program (JOBS) allows
the states flexibility in providing Aid to Families with
Dependent Children (AFDC) recipients help in acquiring
needed job skills. The Administration currently is
preparing a JTPA bill to transmit to the 102nd Congress.
IV. REDUCING THE BURDEN OF GOVERNMENT REGULATION
The remarkable flexibility of the U.S. economy, which stems
from its reliance on free markets, is a major national asset.
Government regulations generally reduce economic flexibility
and thus should have a very limited role. Where regulation is
necessary, regulatory programs should pass strict cost-benefit
tests and should seek to harness the power of market forces to
serve the public interest, not to distort or diminish those
forces.
A.
Council on Competitiveness Deregulation Task Force
The Vice President's Council on Competitiveness has formed
a task force to study deregulation's effect on the U.S.
economy. This task force will examine the Federal
government's role in the marketplace by studying the
history and costs and benefits of regulations on a wide
variety of industries: transportation, communications,
energy and financial services.
B.
Biotechnology
The Vice President's Council on Competitiveness recently
released the Report on National Biotechnology Policy
outlining the Administration's commitment to free market
development of biotechnology products. The Report makes
15 recommendations within three broad policy areas:
investing in science and technology; risk-based
regulation; and a free market environment providing
7
capital and financial resources and protecting
intellectual property rights.
C.
Joint Production Ventures
The Economic Policy Council has developed a proposal which
would encourage manufacturing consortia and joint ventures
among industrial competitors. Currently, antitrust laws
inhibit such ventures due to uncertainties regarding the
risk of prosecution and private lawsuits. The current
proposals would require the Justice Department and courts
to consider global competition when deliberating antitrust
issues.
D.
Drug Approval Process Working Group
The working group has been assembled to review the FDA's
drug approval process and propose operational or
structural changes. This is an effort to create a more
time-conscious and efficient process, especially with
respect to experimental drugs, without increasing risk.
Further, the group will review the condition of the U.S.
pharmaceutical industry and suggest options for
maintaining its health and competitive position.
E.
Telecommunications
Estimates reveal deregulation in the telecommunications
industry may save the U.S. economy $45 billion per year.
Despite its aggressively dynamic nature the structure,
conduct and performance of this industry is still largely
determined by legal and regulatory decisions and
restraints. Telecommunications is critical to our
nation's economic future. Unnecessary barriers and
regulation must be eliminated and our regulatory policies
must be balanced and market based.
CC
THE WHITE HOUSE
WASHINGTON
Sandy Doerr
Bus. Eds,
The 4 people you
asked about will
be on stage.
6:36 pm
Kristen
THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release
March 19, 1991
EXTENSION OF FAST TRACK AUTHORITY
FACT SHEET
FAST TRACK PROCEDURES
Historical Background to the Fast Track
For the better part of this century, the Congress and the
Executive have recognized that the negotiation and
implementation of trade agreements require special
cooperation.
In the aftermath of the record-high rates of the Smoot-
Hawley Tariff Act of 1930 and the Depression they helped
fuel, both the Congress and the Executive branch recognized
that only by working closely together could the two branches
effectively bring down barriers to our foreign trade and
open international markets for U.S. products and services.
This new partnership was reflected in the Reciprocal Trade
Agreements Act of 1934, which gave the President authority
not only to conclude tariff-cutting agreements but also to
implement them without the need for subsequent legislation.
As countries began to rely less on tariff protection and
more on non-tariff trade barriers, the scope of trade
negotiations broadened, and the "fast-track" procedures were
created by the Congress as the necessary complement to this
broader trade agenda.
Fast track procedures for approval of trade agreements were
included by the Congress in trade legislation in 1974, 1979,
and again in the 1988 Trade Act.
Fast Track is Essential to Successful Trade Negotiations
While assuring the Congress meaningful participation
throughout the negotiation process, fast track provides two
guarantees essential to the successful negotiation of trade
agreements: (1) a vote on implementing legislation within a
fixed period of time, and (2) no amendments to that
legislation.
2
These procedures reflect the understanding that trade
agreements, in which results in one area are often linked to
results in others, are particularly vulnerable to multiple
amendments that, while possibly small in themselves, could
unravel entire agreements.
Whether the balance of benefits contained in any trade
agreement is in the overall interest of the United States
can only be determined by looking at the whole package.
Through the fast track, the Congress gave the President the
same bargaining power possessed by his counterparts: the
ability to ensure that the agreement reached internationally
would be the agreement voted on at home.
Without fast track, the President cannot assure our
negotiating partners that the deal they strike is the deal
that will be voted on by the Congress.
Without that assurance, foreign governments are reluctant to
negotiate with the United States and will not make the tough
concessions necessary to reach agreements the United States
would be willing to sign. No trading partner will give its
bottom line knowing that the bargain could be reopened.
Using fast track, the United States has negotiated and
implemented three remarkable agreements that were each
approved by an overwhelming majority in both Houses of the
Congress. These agreements -- the results of the Tokyo
Tokyo FTA pa Canada
Round in 1979, the Free Trade Agreement with Israel in 1985,
and the Free Trade Agreement with Canada in 1988 -- have
reduced barriers to trade and contributed to growth in the
United States and worldwide.
The United States has much to gain from trade agreements
that open markets and provide rules for free and fair trade.
Maintaining the fast track will preserve our ability to
continue our efforts to liberalize trade and open markets
through the General Agreement on Tariffs and Trade, through
other multilateral agreements and through bilateral
agreements.
The Congress is an Essential Part of the Fast Track Process
Fast track procedures preserve the role of the Congress
during the negotiation, approval, and implementation of
trade agreements.
To ensure congressional and private sector input, the fast
track statute contains extensive notification and
consultation requirements. At each step along the way, from
3
initiation through implementation, the Congress is an active
partner.
To use the fast track for any agreement, bilateral or
multilateral, the President must notify the Congress 90
calendar days before signature. By the time the President
gives his 90-day notification, our many private sector
advisory committees must report their views on the agreement
both to the Congress and to the President. For bilateral
agreements, the Congress must be given advance notice of the
negotiations; during the following 60 legislative working
days, either the Senate Finance or House Ways and Means
Committee can vote to deny fast track treatment.
Once an agreement is reached, the Congress and the
Administration work in close consultation to formulate
implementing legislation. The process has involved the full
participation of all committees of jurisdiction, not only
those committees traditionally consulted in setting trade
negotiating objectives. If the agreement and its
implementing legislation are still not acceptable, they can
be rejected by a majority vote of either House.
We are today engaged in bilateral and multilateral trade
initiatives that hold unprecedented promise for the
advancement of U.S. economic objectives. With such
initiatives in train, it is clearly in the national interest
to continue a partnership that has proved its worth for
almost 60 years.
Use of Fast Track if Extended
O
In incorporating the fast track in the 1988 Trade Act, the
Congress expressly contemplated that an extension might be
necessary and appropriate in order for the President to
pursue effectively the trade policy goals set out in the
law.
If extended, the fast track would be available until June 1,
1993, and would be used to implement trade initiatives such
as completing the Uruguay Round, negotiating a North America
Free Trade Agreement (NAFTA) with Mexico and Canada, and
pursuing the trade objectives of the Enterprise for the
Americas Initiative.
Supporting fast track will allow these important initiatives
to go forward without in any way detracting from the ability
of the Congress to assess each agreement on its merits when
presented for approval.
4
A Vote Against Fast Track Denies Fast Track for all Agreements
Current fast track authority would have expired on
June 1 if the President had not requested an extension by
March 1. The requested extension is granted automatically
unless either house passes a statutorily prescribed
disapproval resolution before June 1.
The language of the disapproval resolution, which is set out
in the statute, makes clear that disapproval eliminates all
fast track authority, multilateral and bilateral.
The disapproval resolution cannot be amended to eliminate
fast track for some agreements but not others because the
resolution itself cannot be amended. It is not possible,
for example, to vote against the fast track for the Uruguay
Round agreements but preserve it for the NAFTA.
If a disapproval resolution is passed by either House, the
fast track is gone for all purposes, and the President's
ability to successfully negotiate any trade agreement
requiring congressional approval, bilateral or multilateral,
is severely crippled if not eliminated entirely.
Simply put, a vote against fast track is a vote against
trade.
Continuing Fast Track is Essential to Securing Economic Gains
As the world's largest trader, the United States has an
enormous stake in the future of the global trading system.
Exports have become a vital source of strength to the U.S.
economy. In 1990, the nearly 8.5 percent growth in U.S.
exports accounted for 88 percent of U.S. economic growth.
[prelim: updated to 84%
In order to sustain the expansion of exports and consequent
growth, we must continue our efforts to open world markets.
We must maintain our active leadership role. Without an
extension of fast track, those efforts are futile.
Maintaining fast track procedures -- and the partnership
between the Congress and the executive branch that fast
track represents -- will keep on course our joint efforts to
liberalize trade and open markets through the GATT, through
other multilateral agreements, and through bilateral
agreements. No country stands more to gain from those
efforts than the United States.
As we approach the beginning of a new century, we should not
hesitate to pursue the opportunities for expanded economic
growth and prosperity presented by successful trade
negotiations.
5
In order to turn those opportunities into realities, the
Congress and the Executive must continue to work together in
the manner envisioned by the fast track.
THE IMPORTANCE AND BENEFITS OF THE URUGUAY ROUND
Uruguay Round is the Most Ambitious of Trade Negotiations to Date
The world trading system is now vastly more complex than it
was when the GATT was written in 1947. Over one-third of
world trade, more than $1 trillion, is inadequately covered
by international trade rules.
The Uruguay Round negotiations -- in which 108 countries
participate -- are an ambitious effort to strengthen and
expand the global trading system as well as to further lower
trade barriers. Launched in 1986 in Punta del Este,
Uruguay, these negotiations are the eighth round of
multilateral trade negotiations conducted under the auspices
of GATT.
The United States led the call for the far-reaching agenda
of issues in the Uruguay Round. The Congress established
objectives for the Uruguay Round in the Omnibus Trade and
Competitiveness Act, passed in August of 1988.
The negotiating agenda runs the gamut of U.S. interests,
both in opening world markets and in establishing internal
rules of fair play in areas vital to U.S. competitiveness
-- services, investment, agriculture, and intellectual
property. The negotiations fall into four broad categories:
market access (tariffs and non-tariff measures, natural
resource-based products, tropical products, and
textiles);
the "new" areas of services, trade-related intellectual
property rights (TRIPs), and trade-related investment
measures (TRIMs);
agriculture; and
GATT rules (dispute settlement, safeguards, GATT
Articles including balance of payments reform, and the
non-tariff measure codes, including subsidies and
antidumping).
O
Moreover, unlike previous GATT negotiating rounds,
developing countries are active participants in every aspect
of the negotiations.
6
The Administration is Committed to Ensuring that the Uruguay
Round Results in Agreements that Truly Meet U.S. Objectives
This resolve was demonstrated at Brussels in December 1990.
The U.S. delegation and other important delegations
determined that it was preferable to end the ministerial
meeting without result rather than to lower ambitions and
accept minimal Uruguay Round agreements.
The negotiations formally resumed in all areas on
February 26, 1991, when a framework to negotiate
agricultural reform was reached. The exact pace of
negotiations will depend on how quickly we are able to reach
an acceptable solution on agriculture.
The Administration is not prepared to accept an inadequate
agreement for the sake of an agreement; but we are prepared
to continue to negotiate to obtain a good result.
A Successful Uruguay Round Would Bring Substantial Benefits to
the U.S. and World Economies
O
Exports have become a vital source of strength to the U.S.
economy. Since the Round was launched in 1986, export
expansion has been responsible for 40 percent of total
growth in U.S. GNP. In 1990, export growth accounted for 88
percent of U.S. GNP growth.
An open multilateral trading system is the best guarantee
that U.S. export opportunities continue to expand into the
next century. The Uruguay Round is the most important
initiative to expand these opportunities.
Specifically, a successful Uruguay Round would provide
substantial benefits to the U.S. economy, including:
Lower tariff and non-tariff barriers to manufactured
products and other goods, which could increase world
output by $5 trillion and U.S. output by over
$1 trillion over the next 10 years, meaning an
additional $16, 000 for every American family of four;
Rules to protect the intellectual property of U.S.
entrepreneurs, who lose $60 billion annually through
theft and counterfeiting of their ideas;
New markets for U.S. services firms, which export
$115 billion annually and generate 90 percent of new
U.S. jobs;
7
--
An agreement opening world markets to investment, which
helps generate $240 billion, or two-thirds of total
U.S. exports in goods;
Fair competition and open markets in agriculture,
creating new opportunities for American farmers, who
lead the world with more than $40 billion in annual
exports;
--
The full participation of developing countries in the
global trading system, which could increase U.S.
exports by $200 billion over the next 10 years; and
--
Strengthened rules on dispute settlement, antidumping,
subsidies and trade remedy provisions, which should
provide predictability and certainty in access to
foreign markets and ensure fair trade at home.
Conversely, failure to extend fast track authority will end
the Uruguay Round negotiations, damaging prospects for world
economic growth and cooperation.
A collapse of the Round brought about by removal of U.S.
fast track authority would increase worldwide pressures to
raise trade and investment barriers. A sufficiently sharp
movement away from open markets could contribute to a global
recession, as it did in the 1930s.
Although the ultimate success of the Uruguay Round cannot be
guaranteed, the United States should continue negotiations
because a successful Round is overwhelmingly in our long-
term economic interests.
IMPORTANCE OF A NORTH AMERICAN FREE TRADE AGREEMENT
A NAFTA Would Create One of the World's Largest Free Trade Areas
O
A NAFTA would create an enormous market, encompassing some
360 million consumers and total output of $6 trillion.
The progressive elimination of barriers to the flow of
goods, services, and investment and strengthened protection
of intellectual property rights would benefit a broad
spectrum of businesses, workers, farmers, and consumers.
Creation of a NAFTA would be a catalyst for economic growth
and development in the United States, Mexico and Canada
through increased trade, investment, and jobs.
8
The Importance of North American Trade
Canada and Mexico are America's first and third largest
trading partners, respectively. In turn, the United States
accounts for over two-thirds of their total trade. In 1990,
three-way trade came to about $237 billion.
Since 1980, U.S. exports to Mexico and Canada have doubled,
rising from $55.3 billion to $111.4 billion. Our exports to
our neighbors have grown substantially faster than those to
the rest of the world.
Removal of Barriers Would Create New Trade and Investment
Opportunities
O
Since Mexico joined the GATT in 1986 and started its
unilateral policy of lowering trade barriers, U.S. exports
have more than doubled, growing from $12.4 billion to $28.4
billion.
--
U.S. agricultural exports to Mexico totalled
$2.5 billion in 1990, our third largest market.
-- Consumer goods exports from the United States to Mexico
have tripled since 1986, rising from
$1 billion to $3 billion.
--
U.S. exports of capital goods have grown from
$5 billion in 1986 to about $9.5 billion last year.
O
We can do better. Mexico has greater barriers to U.S.
exports than we impose on Mexican shipments to the United
States. For example:
--
Mexican tariffs average 10 percent, compared to the
average tariff of 4 percent we impose on Mexican
exports to us.
--
Mexico still maintains a restrictive import licensing
regime, one that affects 40 percent of U.S.
agricultural exports to Mexico.
O
In addition, while Mexico has liberalized its investment
regime, it is still closed to many U.S. investments, both in
manufacturing and in services, and performance requirements
distort export opportunities for U.S. products.
O
Mexico has already pledged to improve its protection for
intellectual property rights, and we expect action on those
pledges in the near future. A NAFTA will make those reforms
secure.
9
A NAFTA Offers Benefits to U.S. Producers, Workers and Consumers
Economic analyses show that a NAFTA will have a positive
impact on the U.S. economy and U.S. employment.
U.S. producers and workers will benefit from a NAFTA through
increased sales opportunities, improved operating
efficiencies, and strengthened competitiveness vis-a-vis
Asia and Europe.
U.S. consumers will enjoy increased access to lower cost,
higher quality products.
A NAFTA Strengthens the Broader North American Relationship
O
A NAFTA would help cement the extensive historical,
familial, cultural, and language links the United States has
with both Mexico and Canada.
More prosperous neighbors are better neighbors and better
customers for U.S. goods and services.
We have a broad agenda with both Mexico and Canada that goes
well beyond trade, economic, and investment links. By
boosting economic prosperity in all three nations, a NAFTA
will help us make progress on issues such as the
environment, drugs, and immigration.
#
#
#
TO POTUS
Grant/Cawley
April 29, 1991
2:30 p.m. Draft one
A: FASTRACK
PRESIDENTIAL REMARKS: SOCIETY OF BUSINESS EDITORS AND WRITERS
WASHINGTON MARRIOTT HOTEL
WEDNESDAY, MAY 1, 1991
12:15 P.M.
Thank you Jim Kennedy
( (Acknowledgements) ) Sandy Duerr (Dew-err)
Randy Smith
Susan Thomson
Good afternoon. It's pleasure to meet with you today --
I've been looking forward to this chance to discuss an issue of
importance to all of us: economic growth in America.
While experts disagree about the length and depth of the
recession, we must commit ourselves to policies that will promote
growth and prosperity into the next century. This
administration's economic growth package can do just that. It
can set us on a path toward long-term, market-driven economic
growth.
Our Administration's growth package begins with control of
federal spending. Last year's bipartisan budget agreement
finally put the Federal Government on a pay-as-you-go diet. It
cut the growth of debt over the next five years by nearly $500
billion. That extra capital can help generate new jobs.
To increase private savings and investment we have proposed
tax-free family savings accounts, and penalty-free withdrawals
from IRA's for first-time home buyers. We have proposed cutting
the tax on long-term capital gains. That would reduce the tax
code's bias in favor of debt; expand incentives to invest; give
2
hope to the small entrepreneur with the big idea. It would
reinvigorate the American dream.
One of this country's greatest assets is the remarkable
flexibility of our free-market economy. We all know the
strangling effect that red-tape and overregulation can have on
businesses. Regulation, where necessary, ought to harness market
forces to serve the public interest. It shouldn't impose
unnecessary burdens on working men and women. The Council on
Competitiveness, chaired by the vice president, reviews all major
new government regulation to ensure that regulatory benefits
outweigh the burdens imposed on the economy. The council will
look carefully at everything from the new Clean Air regulations
to setting a roadmap for approval of new biotechnology products.
We've also sent to the Hill our banking services reform
Financial industry reform pkg.
bill.
Our comprehensive package will put our financial services
system on a sound footing, and modernize our outdated banking
laws. It's time we brought our banking system into the 21st
century -- so that our banks can fuel economic growth. But in
order to make our financial institutions more competitive at home
and abroad, we need comprehensive reform -- not just a quick and
narrow fix.
These forward-looking proposals are only one part of our
vision for a strong and vibrant American economy. We also need
to look beyond our shores, to the international market in which
American goods and businesses must compete.
USTR chief Economist: this figure is the one
they always use + he can't get '55'w' to
figure in correctly.
3
USTR, Treas, Comm. 211 say '73%'.
In recent years, trade has kept our economy growing.
55(?)
Merchandise exports have risen 73 percent in the last four years
-- more than twice the rate of import growth. Export business
accounted for virtually all of our economic growth last year --
84 percent. -OK. (88% was a prelim figure. It's been adjusted to 84 20)
Recent, unparalled growth in world trade has produced huge
economic benefits for the United States. Our trade strategy is
simple: the United States will continue to lead the world toward
a system of free trade and open markets. That system makes
American genius available to the whole world -- and gives
Americans access to the good ideas and good products produced
abroad. Trade means economic growth and jobs for all Americans.
That's why extension of our "fast track" procedures in trade
negotiations is so crucial to our economic strategy. Fast track
really is another term for "good faith." It means that we will
consult closely with Congress and the private sector during trade
talks. It means that we will not tinker with trade agreements
worked out by our negotiators and their foreign counterparts.
Congress will accept or reject them as written. In short, fast
track ensures that we will not attach amendments or make changes
that would force negotiators to call off talks or start again
from square one.
Fast track does not mean that we will railroad the American
people into bad agreements. It will not affect the pace of
negotiations. And will take all the time necessary to address
the issues that concern Americans.
4
Fast track does not take away Congress' power to review
trade agreements. It just ensures that Congress will vote yes-
or-no on a completed trade agreement within a reasonable period
of time.
Our trading partners consider fast-track an essential
ingredient for successful trade talks. We have had fast track
authority since 1974, and we will need to keep it if we hope to
pursue vital trade agreements -- the Uruguay Round of the GATT
talks, the North American Free Trade Agreement and the Enterprise
for the Americas Initiative as well. Without fast track, we
jeopardize those agreements. We jeopardize trade. We jeopardize
American jobs.
Right now, we have the chance to look forward, to expand
economic growth and opportunity from the Yukon to the Yucatan.
The North American Free Trade Agreement with Canada, our largest
trading partner, and Mexico, our third largest partner, would
create the largest, richest market in the world. Think about it:
360 million consumers and $6 trillion in annual output.
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
Daviders,
affordable, and more available to our poorest citizens. It would
USTR
raise productivity and produce a higher standard of living
chief ECONOMIST
5
throughout the continent. And the resulting economic integration
will strengthen American businesses in the global marketplace.
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, Mexico has slashed tariff rates
-- and our trade deficit has shrunk two-thirds, to $1.8 billion.
Mexican President Carlos Salinas has instituted free-trade
reforms at home and liberalized Mexico's trade laws. Both our
nations have prospered as a result. Our exports to Mexico have
nearly
increased 130 percent in the past four years, reaching $28
billion last year. This export boom has created an estimated
264,000 new jobs in the United States. And each additional
billion dollars in exports creates nearly 20,000 new jobs here in
the United States.
Meanwhile, the trade boom has offered new opportunities for
Mexican workers, has offered prosperity to those who before had
lived in squalor.
Some people are concerned about our negotiations with
Mexico.
Just this morning,
I sent a detailed report to Chairmen
Bentsen and Rostenkowski and Majority Leader Gephardt which, I
believe, responded to those concerns. I gave them my personal
commitment to close bipartisan cooperation in the negotiations.
While economic studies show that a free trade agreement
would produce jobs in the United States -- as well as exports and
6
output -- I know there is concern on Capitol Hill about some job
losses. Our negotiators will address these concerns in
provisions of the North American Free Trade Agreement by ensuring
an adequate transition period for workers in import-sensitve
industries. We will work with Congress to ensure that dislocated
workers receive proper assistance and retraining. At the same
time, it is worth noting that the agreement will create high-
wage, high-skill manufacturing jobs in the machinery, computers,
telecommunications and electronics industries. Furthermore, as
Mexico develops further, it will need even more of these high
tech goods and services. Those goods and services are more
likely to come from the United States than from anyone else in
the world.
Secondly, President Salinas and the Mexican people have no
interest in allowing their country to become a pollution haven
for U.S. companies. Because economic growth goes hand in hand
with environmental protection, we will expand environmental
cooperation programs parallel to the free trade talks.
And finally, President Salinas has also made it clear that
this agreement will improve opportunities for Mexican working
people. Mexico has strong laws regulating labor standards and
workers rights. Beyond those, we will also begin new initiatives
to expand labor cooperation between our two countries.
None of these things will happen, however, if we cannot
bargain in good faith -- if the fast track procedures we have
employed for 17 years suddenly are withdrawn or weakened. The
7
United States must continue to open new markets, create new
technologies, and seize new opportunities before us. I am
confident -- and so are the American people -- that we can and
will prevail in this exciting and challenging world. And I am
confident that as we head into the next century -- the next
American Century -- a strong and healthy America that will lead
the way.
God bless you all and thank you.
+
I believe time 1 questions
# # #
to
STAFFED
USTR- David Walters- 395-3583
Factcheck Copy
Larry Lindsey- X 6402
Leg. Affairs- X 2230
Grant/Cawley
April 29, 1991
2:30 p.m. Draft one
RB Pricer 4866800
A: FASTRACK
PRESIDENTIAL REMARKS: SOCIETY OF BUSINESS WRITERS AND EDITORS
WASHINGTON MARRIOTT HOTEL
WEDNESDAY, MAY 1, 1991
12:15 P.M.
purple= Fischer
((Acknowledgements))
X
X
Good afternoon. It's pleasure to meet with you today --
I've been looking forward to this chance to discuss an issue of
importance to all of us: economic growth in America.
While experts disagree about the length and depth of the
recession, we must commit ourselves to policies that will promote
1991 SOU
growth and prosperity into the next century. This
growth Agendal
administration's economic growth package can do just that. It
Fact Sheet
can set us on a path toward long-term, market-driven economic
4-9-9-91,
growth.
Our Administration's growth package begins with control of
Agenda
federal spending. Our budget agreement last year finally put the
Federal Government on a pay-as-you-go diet. It cuts the growth
(over the next 5 years)
of debt by nearly $500 billion which should free that capital
Larrydas,
X6402
for new jobs.
To increase private savings and investment in the economy,
we have proposed tax-free family savings accounts, and penalty-
X
X
free withdrawals from IRA's for first-time home buyers. We have
Larry
proposed cutting the tax for long-term capital gains to reverse
Lindcyoz
the tax code's bias in favor of debt and replace it with
Lindsay X6402
2
incentives to invest -- to give hope to the small agent with the
big idea -- to reinvigorate the American dream.
Agenda
One of this country's biggest assets is the remarkable
flexibility of our free-market economy. We all know the
strangling effect that red-tape and overregulation can have on
businesses. Regulation, where necessary, ought to harness market
forces to serve the public interest -- not impose unnecessary
burdens on working men and women. The Vice President's Council
on Competitiveness reviews all major new government regulation to
"1P,6
ensure that regulatory benefits outweigh the burdens imposed on
+
savid Mclntosh,
/( the economy)
business and society. The council will look carefully at
(OVP) X2816
everything from the new Clean Air regulations to setting a
roadmap for approval of new biotechnology products.
Financial Industry Reform Package
We've also sent to the Hill our banking servíces reform
Leg.
bill, to put our financial services system on a sound footing,
arowsheet,P. Agenda
gary Aff. 1092 Andres
and modernize our outdated banking laws. It's time we brought
Fact
+
our banking system into the 21st century -- so that our banks can
continue providing the money upon which our economy depends. And
it's time we made our financial institutions more competitive at
home and abroad.
These forward-looking proposals are only one part of our
vision for a strong and vibrant American economy. But we also
need to look beyond our shores, to the international market in
which American goods and businesses must compete.
USTR
dobtischer's "1p-3
In recent years, trade has kept our economy going.
Merchandise exports have risen 55 percent in the last four years
3
elrowtheet, Agenda
twice as fast as imports. Export business growth accounted
USTR
Fact
for 88 percent of our economic growth last year.
Fast Track Fact
firet of 3-19-91
Recent, unparalled growth in world trade has produced huge
P.
astrack
economic benefits for the United States. Our trade strategy is
intertsen,
et 31,
simple: the United States will continue to lead the world toward
a system of free trade and open markets. That system makes
American genius available to the whole world -- and gives
Americans access to the good ideas and good products produced
abroad. Trade means economic growth and jobs for all Americans.
That's why extension of our "fast track" procedures in trade
word Fact
negotiations is so crucial to our economic strategy. Fast track
Stroke the Congress - frequent consults
really is another term for "good faith. "I It means that we will
It nears we will work of thec & thips
not tinker with trade agreements worked out by our negotiators to my in
and other nations. Instead, Congress will accept or reject them ase that
puston
is wour is
as written. In short, fast track ensures that we will not throw h's
1 ply
interest.
negotiations off track by attaching amendments and changes that It also,
kill theagr. or force
would force negotiators to start again from square one.
just Track
Fact P-2-3 sheet,
Fast track does not affect the pace of negotiations. It
theneg's or the final
does not weaken Congress' power to review trade agreements. It
office
Rob
just ensures that Congress will vote yes-or-no on a completed
trade agreement within a reasonable period of time: 90 90 days
Newicolity
drop: 90 session
Our trading partners consider fast-track an essential
days.
had
60 = 9/25-
ingredient for successful trade talks. We have that authority
Track
since 1974
2/27
Fastactsheet
now, and we will need it if we hope to pursue vital trade
under
p.3
pressure.
agreements -- the Uruguay Round of the GATT talks, the North
American Free Trade Agreement and the Enterprise for the Americas
Track Fact sheet up3
4
Fast
Initiative as well. Without fast track, we jeopardize those
p".4"
agreements. We jeopardize trade. We jeopardize American jobs.
Right now, we have the chance to look forward, to expand
to
opportunity and economic growth from the Yukon the the Yucatan.
ast Track
actp.7-8 sheet
The North American Free Trade Agreement with Canada, our largest
trading partner, and Mexico, our third largest partner, will
lavid watters
create the largest, richest market in the world. Think about it:
in annual to use
360 million consumers and $6 trillion annual output.
A unified North American market would let each of our
GbE
countries build on our strengths. It would provide more and
better jobs for U.S. workers. It would stimulate price
Houston
competition, lower consumer prices, improve product quality. The
breakfast F.T.
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. And the resulting economic integration
will strengthen American businesses in the global marketplace.
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
Mexico office
Botischer
deficit with Mexico. Since then, Mexico has slashed tariff rates
And have excl oil, a
-- and our trade deficit has shrunk two-thirds, to $1.8 billion.
we
Mexican President Carlos Salinas has instituted free-trade
3276.
$2.1
(Fischer)
reforms, and both nations have reaped the benefits. Our exports
nearly
to Mexico have increased 130 percent in the past four years.
86-90
domestic -free nkt
theyre liberalized for.tr.
2 lib. but not free
(unilateral)
'90 total- 538,000 US jobs
5
rel to mex exp-
increase
Bottonsmany
264,000+
export boom has created more than 300,000 new jobs in the
Exec p.l
United States. And each additional billion dollars in exports
19100 US 19,600 Mex
creates 20,000 new jobs here in the United States.
USTR
Meanwhile, the trade boom has offered new opportunities for
Bob Fischer
Mexican workers, has offered prosperity to those who before had
lived in squalor.
There are some who oppose fast track based on a variety of
trade + uther.
"Today I have responded
Dan price,
issues, mostly non-trade ones Just this morning, I sent a
USTR Asst gencounsel 6800
detailed report to Chairmen Bentsen and Rostenkowski and Majority
these
Leader Gephardt which, I believe, responded to (their) concerns. I
gave them my personal commitment to close bipartisan cooperation
Letter
in the negotiations.
While economic studies show that a free trade agreement
Bortonummary Exec
greater
would produce jobs in the United States -- as well as exports and
output -- I know there is concern on Capitol Hill about some job
losses, particularly in agriculture Our negotiators will
address these concerns in provisions of the North American Free
Letter
ensuring agreement is phased m
Trade Agreement by easing the transition for import-sensitve
industries. We are committed to working with Congress to ensure
Letter
that there is assistance and retraining for any dislocated
workers. At the same time, it is worth noting that the agreement
in industries such zs:
will create high-wage high-skill jobs in computer,
communications, manufacturing and other industries. Furthermore,
Bobischer
'machinery
as Mexico develops further, it will need even more of these high
tech goods and services. Those goods and services will come from
the United States.
minor job loss in ag
concern if me neg, usian will
close in is- - open in Mexico;
apparel (720 jobslyr, 10yrs)
we dont believebut studies
1/4 of 170 fjobsector
dont cover iob flow.
6
X
Botton summary
Secondly, President Salinas and the Mexican people have no
interest in allowing their country to become a pollution haven
for U.S. companies. Because economic growth goes hand in hand
Letter
with environmental protection, we will expand environmental
cooperation programs parallel to the free trade talks.
And finally, President Salinas has also made it clear that
this agreement will improve opportunities for Mexican working
Letter
people. Mexico has strong laws regulating labor standards and
workers rights. Beyond those, we will also begin new initiatives
X
to expand labor cooperation between our two countries.
None of these things will happen, however, if we cannot
bargain in good faith -- if the fast track procedures we have
employed for 17 years suddenly expire. The United States must
continue to open new markets, create new technologies, and seize
new opportunities before us. I am confident -- and so are the
American people -- that we can and will prevail in this exciting
and challenging world. And I am confident that as we head into
the next century -- the next American Century -- a strong and
healthy America that will lead the way.
God bless you all and thank you.
# # #
In effect sinceriff 134)
disc
ontil 74, when only got more we got complast track
Carolyn's Comments
Grant/Cawley
April 29, 1991
2:30 p.m. Draft one two
A: FASTRACK
PRESIDENTIAL REMARKS: SOCIETY OF BUSINESS EDITORS AND WRITERS
WASHINGTON MARRIOTT HOTEL
WEDNESDAY, MAY 1, 1991
12:15 P.M.
((Acknowledgements))
Good afternoon. It's pleasure to meet with you today --
I've been looking forward to this chance to discuss an issue of
importance to all of us: economic growth in America.
While experts disagree about the length and depth of the
recession, we must commit ourselves to policies that will promote
growth and prosperity into the next century. This
administration's economic growth package can do just that. It
can set us on a path toward long-term, market-driven economic
growth.
Our Administration's growth package begins with control of
federal spending. Our budget agreement last year finally put the
Federal Government on a pay-as-you-go diet. It cuts the growth
over the next 5 years
Larry Lindsey
of debt by nearly $500 billion A which should free that capital
X6402
for new jobs.
FYI: He says we dont have to use the 5yr. qualifier, though
it does make it more clear.
To increase private savings and investment in the economy,
we have proposed tax-free family savings accounts, and penalty-
free withdrawals from IRA's for first-time home buyers. We have
proposed cutting the tax for long-term capital gains to reverse
the tax code's bias in favor of debt and replace it with
2
incentives to invest -- to give hope to the small agent with the
big idea -- to reinvigorate the American dream.
One of this country's biggest assets is the remarkable
flexibility of our free-market economy. We all know the
strangling effect that red-tape and overregulation can have on
businesses. Regulation, where necessary, ought to harness market
forces to serve the public interest -- not impose unnecessary
burdens on working men and women. The Vice President's Council
major
on Competitiveness reviews all/new government regulation to
per
ensure that regulatory benefits outweigh the burdens imposed on
David
// he says: imposed on the economy
McIntosh,
business and society. The council will look carefully at
OVP- council
on COMP.
everything from the new Clean Air regulations to setting a
X 2816
roadmap for approval of new biotechnology products.
We've also sent to the Hill our banking services reform
bill, to put our financial services system on a sound footing,
and modernize our outdated banking laws. It's time we brought
our banking system into the 21st century -- so that our banks can
continue providing the money upon which our economy depends. And
it's time we made our financial institutions more competitive at
home and abroad.
These forward-looking proposals are only one part of our
vision for a strong and vibrant American economy. But we also
need to look beyond our shores, to the international market in
which American goods and businesses must compete.
In recent years, trade has kept our economy going.
Merchandise exports have risen 55 percent in the last four years
3
-- twice as fast as imports. Export business growth accounted
for 88 percent of our economic growth last year.
Recent, unparalled growth in world trade has produced huge
economic benefits for the United States. Our trade strategy is
simple: the United States will continue to lead the world toward
a system of free trade and open markets. That system makes
American genius available to the whole world -- and gives
Americans access to the good ideas and good products produced
abroad. Trade means economic growth and jobs for all Americans.
That's why extension of our "fast track" procedures in trade
Fischer,
negotiations is so crucial to our economic strategy. Fast track
"It means we will work with the congress +
for Affairs. xx to
really is another term for "good faith. "Л Itemeans that we will the private
sector to
not tinker with trade agreements worked out by our negotiators
negotiate an
agreement that
is in our nations
and other nations. Instead, Congress will accept or reject them best interest.
It also...
strokeneir :-
as written. In short, fast track ensures that we will not throw
negotiations off track by attaching amendments and changes that
added
Kill the agreement or
would force negotiators to start again from square one.
Fast track does not affect the pace of negotiations. It
the negotiations or the final
does not weaken Congress' power to review trade agreements. It
just ensures that Congress will vote yes-or-no on a completed
trade agreement within a reasonable period of time: 90 days
Our trading partners consider fast-track an essential
had
ingredient for successful trade talks. We have/that authority
since 1974
now, and we will need it if we hope to pursue vital trade
agreements -- the Uruguay Round of the GATT talks, the North
American Free Trade Agreement and the Enterprise for the Americas
Fischer wants to drop because it technically
means 90 session days, which could drag on for
months. For example, on 9/25 they had to begin
on Enterprise for the AM it took till 2/27 - and Childart that was milf) even
4
Initiative as well. Without fast track, we jeopardize those
agreements. We jeopardize trade. We jeopardize American jobs.
Right now, we have the chance to look forward, to expand
opportunity and economic growth from the Yukon the the Yucatan.
The North American Free Trade Agreement with Canada, our largest
trading partner, and Mexico, our third largest partner, will
create the largest, richest market in the world. Think about it:
360 million consumers and $6 trillion annual output.
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. And the resulting economic integration
will strengthen American businesses in the global marketplace.
Let me illustrate the stakes involved in the fast-track
debate by discussing the Mexican component of the North American
"And trade excluding oil, we have
Bob surplus of $2.7 a
Fischer, USTR-Director Billion. for Mexi-
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, Mexico has slashed tariff rates
*
-- and our trade deficit has shrunk two-thirds, to $1.8 billion
Mexican President Carlos Salinas has instituted free-trade
Watters
reforms, and both nations have reaped the benefits. Our exports
nearly
to Mexico have increased 130 percent in the past four years.
chief 395 USTR 3583
He has not done this -hes done 2 things however:
1
on domestic front: free market reforms;
2
on int'l front: liberalized, but not free trade;
Suggest Salinas has liberalized foreign trade
For the us: 19,100 new jobs
related to Mexico exports
" Nearly 20,000 in each country
For Mexico: 19, 600 new jobs
or "nearly 40,000 in both"
5
264,000
This export boom has created more than 300,000 new jobs in the
David TR walters,
United States. And each additional billion dollars in exports
creates 20,000 new jobs here in the United States.
Meanwhile, the trade boom has offered new opportunities for
Mexican workers, has offered prosperity to those who before had
lived in squalor.
There are some who oppose fast track based on a variety of
trade + other (BOD Fischer)
Today I have responded
issues, mostly non trade ones! Just this morning, I sent a
Dan Price
USTR, Deputy
detailed report to Chairmen Bentsen and Rostenkowski and Majority General
these ( Fischer)
Counsel,
Leader Gephardt which, I believe, responded to their concerns. I 345-6800
gave them my personal commitment to close bipartisan cooperation
in the negotiations.
While economic studies show that a free trade agreement Bob
greater (Fischer)
would produce jobs in the United States -- as well as exports and
output -- I know there is concern on Capitol Hill about some job
David Hers,
USTR
losses,
particularly in agriculture.
Our negotiators will
address these concerns in provisions of the North American Free
ensuring that agreement is phased in (BOD Fischer)
Trade Agreement by easing the transition for import-sensitve
industries. We are committed to working with Congress to ensure
that there is assistance and retraining for any dislocated
workers. At the same time, it is worth noting that the agreement
manufacturing in such
will create high-wage high-skill jobs in computer,
industries as computers, and machinery Bob Fischer)
A communications, manufacturing and other industries. Furthermore,
as Mexico develops further, it will need even more of these high
tech goods and services. Those goods and services will come from
the United States.
I
Very minor job loss in ag; in fact, an increase is predicted
2
The area that stands to lose is the apparel
industry; even that, though, is only 710 jobs/yr. =
1/14 of 1% of the job sector.
3
The concern on the Hill is that us businesses will close up
here + re-open in Mexico we don't believe this, but no studies
6
Secondly, President Salinas and the Mexican people have no
interest in allowing their country to become a pollution haven
for U.S. companies. Because economic growth goes hand in hand
with environmental protection, we will expand environmental
cooperation programs parallel to the free trade talks.
And finally, President Salinas has also made it clear that
this agreement will improve opportunities for Mexican working
people. Mexico has strong laws regulating labor standards and
workers rights. Beyond those, we will also begin new initiatives
to expand labor cooperation between our two countries.
None of these things will happen, however, if we cannot
bargain in good faith -- if the fast track procedures we have
avid walters
employed for 17 X years suddenly expire. The United States must
X
continue to open new markets, create new technologies, and seize
new opportunities before us. I am confident -- and so are the
American people -- that we can and will prevail in this exciting
and challenging world. And I am confident that as we head into
the next century -- the next American Century -- a strong and
healthy America that will lead the way.
God bless you all and thank you.
# # #
To TONY
LISTR David 396 Walters 3553
Grant/Cawley
April 29, 1991
2:30 p.m. Draft one
A: ECONOMY Fastrack
PRESIDENTIAL REMARKS: SOCIETY OF BUSINESS WRITERS AND EDITORS
WASHINGTON MARRIOTT HOTEL
WEDNESDAY, MAY 1, 1991
12:15 P.M.
((Acknowledgements), )
X
Good afternoon. It's pleasure to meet with you today --
I've been looking forward to meeting with you, because I wanted
to discuss an issue of importance to all of us: economic growth
in America.
991 soy
We will get this recession behind us and return to growth
soon. American consumers are optimistic, and we are on our way
to a new record of economic expansion and competitive strength
that will carry us into the next century. But to get there, we
X
X
indsey
must commit -- now -- to an agenda of long-term, market-driven
Growth
act sheet
economic growth.
14-9-91
Our Administration's growth package begins with control of
sheet, srowth Fact Fact-91-P.)
X
federal spending. Our budget agreement last year finally put the Larry
Federal Government on a pay-as-you-go plan and cuts the growth of
Lindsey
debt by nearly $500 billion -- which will free capital for
private investment and job creation.
To increase private savings and investment in the economy,
we've also proposed tax-free family savings accounts, and
Larry
X
penalty-free withdrawals from IRA's for first-time home buyers.
Lindsey
We've proposed cutting the tax for long-term capital gains to
spur job-creating investment in our economy.
2
growth Fact p.6 sheet,
One of this country's biggest assets is the remarkable
flexibility of our free-market economy. We all know the
strangling effect that red-tape and overregulation can have on
businesses. So where regulation is necessary, its aim should be
to harness the power of market forces to serve the public
interest -- and should not cause needless waste and inefficiency.
The Vice President's Council on Competitiveness is reviewing all
major
new government regulation to ensure that its benefits to society
David
the economy
MC/Atush
outweigh its cost to business on everything from the new Clean
(OVP)
X2816
Air regulations to setting a roadmap for approval of new
biotechnology products.
We've also sent to the Hill our banking services reform
Leg
AFF.
bill, to put our financial services system on a sound footing,
and modernize our outdated banking laws. It's time we brought
our banking system into the 21st century -- so that our banks can
Larry
continue to to make job-creating loans for our businesses and
Lindsey
factories. And it's time we made our financial institutions more
competitive at home and abroad.
These forward-looking proposals are only one part of our
vision for a strong and vibrant American economy. It's a fact:
our economic growth is export-led. And today, America is in the
USTR
midst of an export boom. Merchandise exports have risen 55
X
X
percent in the last four years -- twice as fast as imports. We
Track
have seen unparalled growth in world trade and huge economic
to
benefits for the United States. Our trade strategy is simple:
the United States will continue to lead the world toward a system
3
of free trade and open markets -- because it means economic
growth and jobs for all Americans.
rowth Foct 3' sheet,
That's why extension of our "fast track" procedures in trade
negotiations is so crucial to our economic strategy. Through
this mechanism, Congress ensures that the President goes to the
table equipped with real bargaining powers. Fast track means
Breakfast F.T.
that we're good for our word. Just as our foreign counterparts
do, we'll be able to guarantee that an agreement reached with our
trading partners would be the same one voted on at home.
Fast track does not speed up the pace of negotiations. It
simply enables Congress to vote up-or-down on a completed trade
Breakfast F.T.
agreement within a reasonable period of time. We need fast track
now to pursue vital trade agreements -- not only the North
American Free Trade Agreement, but the Uruguay Round and the
Enterprise for the Americas Initiative as well. For if we lose
our fast track procedures, we lose all three of those agreements.
We lose trade. We lose jobs.
A vote against fast track is a vote against our negotiators,
FIT. to Benter, at
because those talks will be over before they've even begun. A
vote against fast track is a vote against progress.
X
Right now, we have the chance to look forward, to expand
X
Houston
opportunity and economic growth from the Yukon the the Yucatan.
The North American Free Trade Agreement with Canada, our largest
X
trading partner, and Mexico, our third largest partner, will
X
create the largest, richest market in the world. Think about it:
360 million consumers and $6 trillion annual X output.
X
X
X
4
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
Breakfast Houston T.T,
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. And the resulting economic integration
USTR
will strengthen American businesses in the global marketplace.
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.
There are some who oppose fast track based on a variety of
issues, mostly non-trade ones. Just this morning, I sent a
Leg
Aff.
detailed report to Chairmen Bentsen and Rostenkowski and Majority
Leader Gephardt which, I believe, responded to their concerns. I
5
Benter, to
gave them my personal commitment to close bipartisan cooperation
in the negotiations.
While economic studies show that a free trade agreement
would produce jobs in the United States -- as well as exports and
output -- I know there is concern on Capitol Hill about
Letter
adjustments in some sectors. Our negotiators will address these
concerns in provisions of the North American Free Trade Agreement
by easing the transition for import-sensitve industries. We are
committed to working with Congress to ensure that there is
assistance and retraining for any dislocated workers.
Secondly, President Salinas and the Mexican people have no
Letter
interest in allowing their country to become a pollution haven
X
for U.S. companies. Because economic growth goes hand in hand
with environmental protection, we will expand environmental
cooperation programs parallel to the free trade talks.
And finally, President Salinas has also made it clear that
the reason he is pursuing this agreement is to improve
opportunities for Mexican working people. Mexico has strong laws
LEHER
regulating labor standards and workers rights. Beyond those, we
will also begin new initiatives to expand labor cooperation
between our two countries.
But the catalyst for all of these is the economic growth
these agreements can hold -- and only through fast track
procedures are these agreements within our reach. The United
Letter
States must continue to open new markets, create new
technologies, and seize new opportunities before us. I am
6
confident -- and so are the American people -- that we can and
will prevail in this exciting and challenging world. And I am
confident that as we head into the next century -- the next
American Century -- it is a strong and healthy America that will
lead the way.
God bless you all and thank you.
# # #
April 29, 1991
MEMORANDUM
TO:
MARY KATE GRANT
FROM:
CAROLYN CAWLEY
RE:
BUSINESS EDITORS AND WRITERS EVENT
May 1, 1991
Wednesday
12:15 p.m.
Washington Marriott Ballroom
On Cards
110 attendees -- members of the Society of Business
Editors and Writers (99% journalists)
Q & A session after remarks TBD
Acknowledgements:
-- Jim Kennedy, Secretary/Treasurer
Will introduce POTUS
-- Sandy Duerr (Dew-err), President
-- Randy Smith, Vice President
-- Susan Thomson, Immediate Past President
NOTE: The organization will vote tomorrow night on
its new officers -- Duerr, Smith, Kennedy are
unopposed right now and will almost certainly
be elected. I'll keep you posted -- go with
them in the ack's for now.
Jan. 29 / Administration of George Bush, 1991
The Foreign Minister. I've heard that
are Americans, part of something larger
before, Mr. President. [Laughter]
than ourselves. For two centuries, we've
The President. -although our guests
done the hard work of freedom. An
are more than able to. This is a new animal
night, we lead the world in facing dow a
that's been added to our repertoire since
threat to decency and humanity.
you've come back.
What is at stake is more than one small
The Foreign Minister. That's a very in-
country; it is a big idea: a new world order,
teresting one.
where diverse nations are drawn together
Q. Your aides, sir, are taking bets on
in common cause to achieve the universal
whether we'll ask a question, sir. [Laughter]
aspirations of mankind-peace and security,
Q. Could you answer one of ours, please,
freedom, and the rule of law. Such is a
and prove them wrong? [Laughter]
world worthy of our struggle and worthy of
Q. Mr. President, what do you think
our children's future.
about the Dutch support so far?
The community of nations has resolutely
The President. You know, I feel very
gathered to condemn and repel lawless ag-
badly I didn't explain to your press corps
gression. Saddam Hussein's unprovoked in-
that I don't take questions in the Oval
vasion-his ruthless, systematic rape of a
Office. I can understand why she would ask.
peaceful neighbor-violated everything the
However, let me just tell you that one of
community of nations holds dear. The
the reasons I'm delighted to have this meet-
world has said this aggression would not
ing is to be able to express to you and to
stand, and it will not stand. Together, we
Prime Minister Lubbers and others the ap-
have resisted the trap of appeasement, cyni-
preciation on the American side for this
cism, and isolation that gives temptation to
outstanding cooperation. And I think we've
tyrants. The world has answered Saddam's
worked very closely together. We've noted
invasion with 12 United Nations resolutions,
your statements with great approval and
starting with a demand for Iraq's immediate
appreciation, I might say. And so, I look
forward to hearing from you any further
and unconditional withdrawal, and backed
thoughts you have on the Gulf or any other
up by forces from 28 countries of 6 conti-
subject. But I really am grateful to you.
nents. With few exceptions, the world now
stands as one.
And that was the main message in why I
wanted to grab some of your time on this
The end of the cold war has been a victo-
trip-to tell you that. And I'm glad to have
ry for all humanity. A year and a half ago,
a chance to do it publicly.
in Germany, I said that our goal was a
The Foreign Minister. Thank you very
Europe whole and free. Tonight, Germany
much.
is united. Europe has become whole and
free, and America's leadership was instru-
Note: The exchange began at 2:50 p.m. in
mental in making it possible.
the Oval Office at the White House.
Our relationship to the Soviet Union is
important, not only to us but to the world.
That relationship has helped to shape these
and other historic changes. But like many
other nations, we have been deeply con-
Address Before a Joint Session of the
cerned by the violence in the Baltics, and
Congress on the State of the Union
we have communicated that concern to the
January 29, 1991
Soviet leadership. The principle that has
guided us is simple: Our objective is to help
Mr. President and Mr. Speaker and
the Baltic peoples achieve their aspirations,
Members of the United States Congress:
not to punish the Soviet Union. In our
I come to this House of the people to
recent discussions with the Soviet leader-
speak to you and all Americans, certain that
ship we have been given representations
we stand at a defining hour. Halfway
which, if fulfilled, would result in the with-
around the world, we are engaged in a
drawal of some Soviet forces, a reopening of
great struggle in the skies and on the seas
dialog with the Republics, and a move away
and sands. We know why we're there: We
from violence.
90
Administration of George Bush, 1991 / Jan. 29
ng larger
We will watch carefully as the situation
of our citizens will lead us in this next
es,
we
develops. And we will maintain our contact
American century? Everyone who steps for-
An
with the Soviet leadership to encourage
ward today-to get one addict off drugs, to
g dow a
continued commitment to democratization
convince one troubled teenager not to give
and reform. If it is possible, I want to con-
up on life, to comfort one AIDS patient, to
one small
tinue to build a lasting basis for U.S.-Soviet
help one hungry child.
orld order,
cooperation-for a more peaceful future for
We have within our reach the promise of
1 together
all mankind.
a renewed America. We can find meaning
universal
The triumph of democratic ideas in East-
and reward by serving some higher purpose
I security,
ern Europe and Latin America and the con-
than ourselves, a shining purpose, the illu-
Such is a
tinuing struggle for freedom elsewhere all
mination of a Thousand Points of Light.
worthy of
around the world all confirm the wisdom of
And it is expressed by all who know the
our nation's founders. Tonight, we work to
irresistible force of a child's hand, of a
resolutely
achieve another victory, a victory over tyr-
friend who stands by you and stays there, a
awless ag-
anny and savage aggression.
volunteer's generous gesture, an idea that is
voked in-
We in this Union enter the last decade of
simply right.
ape of a
the 20th century thankful for our blessings,
The problems before us may be different,
thing the
steadfast in our purpose, aware of our diffi-
but the key to solving them remains the
ear. The
culties, and responsive to our duties at
same. It is the individual, the individual
ould not
home and around the world. For two cen-
ether, we
turies, America has served the world as an
who steps forward. And the state of our
Union is the union of each of us, one to the
ent, cyni-
inspiring example of freedom and democra-
other-the sum of our friendships, mar-
tation to
cy. For generations, America has led the
struggle to preserve and extend the bless-
riages, families, and communities.
Saddam's
solutions,
ings of liberty. And today, in a rapidly
We all have something to give. So, if you
nmediate
changing world, American leadership is in-
know how to read, find someone who can't.
d backed
dispensable. Americans know that leader-
If you've got a hammer, find a nail. If
ship brings burdens and sacrifices. But we
you're not hungry, not lonely, not in trou-
6 conti-
orld now
also know why the hopes of humanity turn
ble, seek out someone who is. Join the com-
to us. We are Americans; we have a unique
munity of conscience. Do the hard work of
freedom. And that will define the state of
n a victo-
responsibility to do the hard work of free-
our Union.
half ago,
dom. And when we do, freedom works.
The conviction and courage we see in the
Since the birth of our nation, "We the
il was a
Germany
Persian Gulf today is simply the American
People" has been the source of our
character in action. The indomitable spirit
strength. What government can do alone is
hole and
that is contributing to this victory for world
limited, but the potential of the American
is instru-
peace and justice is the same spirit that
people knows no limits.
gives us the power and the potential to
We are a nation of rock-solid realism and
Union is
meet our toughest challenges at home. We
clear-eyed idealism. We are Americans. We
e world.
are resolute and resourceful. If we can self-
are the nation that believes in the future.
pe these
lessly confront the evil for the sake of good
We are the nation that can shape the
ke many
in a land so far away, then surely we can
future. And we've begun to do just that, by
ply con-
make this land all that it should be. If
strengthening the power and choice of indi-
tics, and
anyone tells you that America's best days
viduals and families.
rn to the
are behind her, they're looking the wrong
Together, these last 2 years, we've put
that has
way.
dollars for child care directly in the hands
S to help
Tonight, I come before this House and
of parents instead of bureaucracies; un-
pirations,
the American people with an appeal for re-
shackled the potential of Americans with
In our
newal. This is not merely a call for new
disabilities; applied the creativity of the
t leader-
government initiatives; it is a call for new
marketplace in the service of the environ-
entations
initiatives in government, in our communi-
ment, for clean air; and made home owner-
he with-
ties, and from every American to prepare
ship possible for more Americans.
ening of
for the next American century.
The strength of a democracy is not in
ve away
America has always led by example. So,
bureaucracy. It is in the people and their
who among us will set this example? Which
communities. In everything we do, let us
91
Jan. 29 / Administration of George Bush, 1991
In
unleash the potential of our most precious
of debt by nearly $500 billion. And that
resource-our citizens, our citizens them-
frees funds for saving and job-creating in-
recog
selves. We must return to families, commu-
vestment.
pends
nities, counties, cities, States, and institu-
kets.
Now, let's do more. My budget again in-
tions of every kind the power to chart their
can e
cludes tax-free family savings accounts; pen-
own destiny and the freedom and opportu-
world
alty-free withdrawals from IRA's for first-
nity provided by strong economic growth.
real j
time home buyers; and to increase jobs and
And that's what America is all about.
tions.
growth, a reduced tax for long-term capital
I know that tonight, in some regions of
field
gains.
our country, people are in genuine econom-
ers ca
I know there are differences among us-
ic distress. And I hear them. Earlier this
time,
[laughter]-about the impact and the ef-
month, Kathy Blackwell, of Massachusetts,
An
fects of a capital gains incentive. So tonight,
wrote me about what can happen when the
and 0
I'm asking the congressional leaders and the
economy slows down, saying, "My heart is
tive,
aching, and I think that you should know
Federal Reserve to cooperate with us in a
their
your people out here are hurting badly."
study, led by Chairman Alan Greenspan, to
trade
sort out our technical differences so that we
I understand. And I'm not unrealistic
spher
about the future. But there are reasons to
can avoid a return to unproductive partisan
The
be optimistic about our economy. First, we
bickering.
right
don't have to fight double-digit inflation.
But just as our efforts will bring economic
oppor
Second, most industries won't have to make
growth now and in the future, they must
And 1
big cuts in production because they don't
also be matched by long-term investments
jobs in
have big inventories piled up. And third,
for the next American century. That re-
vestm
our exports are running solid and strong. In
quires a forward-looking plan of action, and
means
fact, American businesses are exporting at a
that's exactly what we will be sending to
public
record rate.
the Congress. We've prepared a detailed
choose
So, let's put these times in perspective.
series of proposals that include: a budget
wealth
Together, since 1981, we've created almost
that promotes investment in America's
Ameri
20 million jobs, cut inflation in half, and cut
future-in children, education, infrastruc-
Civi
interest rates in half. And yes, the largest
ture, space, and high technology; legislation
equal
peacetime economic expansion in history
to achieve excellence in education, building
respor
has been temporarily interrupted. But our
on the partnership forged with the 50 Gov-
bigotr
economy is still over twice as large as our
ernors at the education summit, enabling
orous
closest competitor.
parents to choose their children's schools
will (
We will get this recession behind us and
and helping to make America number one
streng
return to growth soon. We will get on our
in math and science; a blueprint for a new
discrir
way to a new record of expansion and
national highway system, a critical invest-
of unf:
achieve the competitive strength that will
ment in our transportation infrastructure; a
We'l
carry us into the next American century.
research and development agenda that in-
damer
We should focus our efforts today on en-
cludes record levels of Federal investment,
and th
couraging economic growth, investing in
and a permanent tax credit to strengthen
torney
the future, and giving power and opportu-
private R&D and to create jobs; a compre-
summ
nity to the individual.
hensive national energy strategy that calls
ficials.
We must begin with control of Federal
for energy conservation and efficiency, in-
need t
spending. That's why I'm submitting a
creased development, and greater use of al-
we nee
budget that holds the growth in spending to
ternative fuels; a banking reform plan to
And
less than the rate of inflation. And that's
bring America's financial system into the
plemer
why, amid all the sound and fury of last
21st century so that our banks remain safe
ing dr
year's budget debate, we put into law new,
and secure and can continue to make job-
are ma
enforceable spending caps, so that future
creating loans for our factories, our busi-
be don
spending debates will mean a battle of
nesses, and home buyers.
the de:
ideas, not a bidding war.
You know, I do think there has been too
Good
Though controversial, the budget agree-
much pessimism. Sound banks should be
right a
ment finally put the Federal Government
making sound loans now, and interest rates
And so
on a pay-as-you-go plan and cut the growth
should be lower, now.
gram 0
92
Administration of George Bush, 1991 / Jan. 29
that
In addition to these proposals, we must
fants, for children, for adults, and for the
recognize that our economic strength de-
elderly-to promote a healthier America
in-
pends on being competitive in world mar-
and to help keep costs from spiraling.
kets. We must continue to expand Ameri-
It's time to give people more choice in
in-
can exports. A successful Uruguay Round of
government by reviving the ideal of the
en-
world trade negotiations will create more
citizen politician who comes not to stay but
rst-
real jobs and more real growth for all na-
to serve. And one of the reasons that there
and
tions. You and I know that if the playing
ital
is so much support across this country for
field is level, America's workers and farm-
term limitations is that the American
ers can out-work, out-produce anyone, any-
people are increasingly concerned about
IS-
time, anywhere.
ef-
big-money influence in politics. So, we must
And with a Mexican free trade agreement
ght,
look beyond the next election to the next
and our Enterprise for the Americas Initia-
the
tive, we can help our partners strengthen
generation. And the time has come to put
the national interest above the special inter-
n a
their economies and move toward a free
to
trade zone throughout this entire hemi-
est and to totally eliminate political action
committees. And that would truly put more
we
sphere.
san
The budget also includes a plan of action
competition in elections and more power in
right here at home to put more power and
the hands of individuals.
mic
opportunity in the hands of the individual.
And where power cannot be put directly
ust
And that means new incentives to create
in the hands of the individual, it should be
nts
jobs in our inner cities by encouraging in-
moved closer to the people, away from
re-
vestment through enterprise zones. It also
Washington. The Federal Government too
and
means tenant control and ownership of
often treats government programs as if they
to
public housing. Freedom and the power to
are of Washington, by Washington, and for
iled
choose should not be the privilege of
Washington. Once established, Federal pro-
get
wealth. They are the birthright of every
grams seem to become immortal. It's time
ca's
American.
for a more dynamic program life cycle.
uc-
Civil rights are also crucial to protecting
Some programs should increase. Some
ion
equal opportunity. Every one of us has a
should decrease. Some should be terminat-
ling
responsibility to speak out against racism,
ed. And some should be consolidated and
lov-
bigotry, and hate. We will continue our vig-
turned over to the States.
ing
orous enforcement of existing statutes, and I
My budget includes a list of programs for
ools
will once again press the Congress to
potential turnover totaling more than $20
one
strengthen the laws against employment
billion. Working with Congress and the
ew
discrimination without resorting to the use
Governors, I propose we select at least $15
est-
of unfair preferences.
billion in such programs and turn them
a
We're determined to protect another fun-
over to the States in a single consolidated
in-
damental civil right: freedom from crime
and the fear that stalks our cities. The At-
grant, fully funded, for flexible manage-
ent,
ment by the States.
en
torney General will soon convene a crime
summit of our nation's law enforcement of-
The value, the value of this turnover ap-
re-
alls
ficials. And to help us support them, we
proach is straightforward. It allows the Fed-
need tough crime control legislation, and
eral Government to reduce overhead. It
in-
al-
we need it now.
allows States to manage more flexibly and
And as we fight crime, we will fully im-
more efficiently. It moves power and deci-
to
the
plement our national strategy for combat-
sionmaking closer to the people. And it re-
safe
ing drug abuse. Recent data show that we
inforces a theme of this administration: ap-
job-
are making progress, but much remains to
preciation and encouragement of the inno-
be done. We will not rest until the day of
vative powers of "States as Laboratories."
usi-
the dealer is over, forever.
This nation was founded by leaders who
Good health care is every American's
understood that power belongs in the hands
too
be
right and every American's responsibility.
of people. And they planned for the future.
ates
And so, we are proposing an aggressive pro-
And so must we, here and all around the
gram of new prevention initiatives-for in-
world.
93
Jan. 29 / Administration of George Bush, 1991
As Americans, we know that there are
Let me make clear what I mean by the
times when we must step forward and
region's stability and security. We do not
of life.
accept our responsibility to lead the world
seek the destruction of Iraq, its culture, or
the ve
away from the dark chaos of dictators,
its people. Rather, we seek an Iraq that uses
We
toward the brighter promise of a better
its great resources not to destroy, not to
for th
day. Almost 50 years ago we began a long
serve the ambitions of a tyrant, but to build
servin
struggle against aggressive totalitarianism.
here t
a better life for itself and its neighbors. We
Now we face another defining hour for
We c
seek a Persian Gulf where conflict is no
America and the world.
Schwa
longer the rule, where the strong are nei-
him.
There is no one more devoted, more
ther tempted nor able to intimidate the
came
committed to the hard work of freedom
weak.
the wi
than every soldier and sailor, every marine,
Most Americans know instinctively why
the Jo:
airman, and coastguardsman, every man
we are in the Gulf. They know we had to
say ou
and woman now serving in the Persian
stop Saddam now, not later. They know
one d.
Gulf. Oh, how they deserve-[applause]-
that this brutal dictator will do anything,
plete t
and what a fitting tribute to them.
will use any weapon, will commit any out-
The
You see-what a wonderful, fitting trib-
rage, no matter how many innocents suffer.
pilots,
ute to them. Each of them has volunteered,
They know we must make sure that con-
Canad:
volunteered to provide for this nation's de-
trol of the world's oil resources does not fall
and B&
fense, and now they bravely struggle to
into his hands, only to finance further ag-
time si
earn for America, for the world, and for
gression. They know that we need to build
commu
future generations a just and lasting peace.
a new, enduring peace, based not on arms
United
Our commitment to them must be equal to
races and confrontation but on shared prin-
is now
their commitment to their country. They
ciples and the rule of law.
I am
are truly America's finest.
And we all realize that our responsibility
asked t
The war in the Gulf is not a war we
to be the catalyst for peace in the region
this st
wanted. We worked hard to avoid war. For
does not end with the successful conclusion
allies I
more than 5 months we-along with the
of this war.
costs of
Arab League, the European Community,
Democracy brings the undeniable value
ceived
the United Nations-tried every diplomatic
of thoughtful dissent, and we've heard some
the firs
avenue. U.N. Secretary-General Perez de
dissenting voices here at home-some, a
they W
Cuellar; Presidents Gorbachev, Mitterrand,
handful, reckless; most responsible. But the
Desert
Özal, Mubarak, and Bendjedid; Kings Fahd
fact that all voices have the right to speak
But t
and Hassan; Prime Ministers Major and An-
out is one of the reasons we've been united
dictator
dreotti-just to name a few-all worked for
in purpose and principle for 200 years.
by targ
a solution. But time and again, Saddam Hus-
Our progress in this great struggle is the
Saudi A
sein flatly rejected the path of diplomacy
result of years of vigilance and a steadfast
he is de
and peace.
commitment to a strong defense. Now, with
advance
The world well knows how this conflict
remarkable technological advances like the
cable e
began and when: It began on August 2d,
Patriot missile, we can defend against ballis-
wrong.
when Saddam invaded and sacked a small,
tic missile attacks aimed at innocent civil-
coalition
defenseless neighbor. And I am certain of
ians.
is dead \
how it will end. So that peace can prevail,
Looking forward, I have directed that the
We W
we will prevail. [Applause] Thank you.
SDI program be refocused on providing
we do, t
Tonight I am pleased to report that we
protection from limited ballistic missile
an end
are on course. Iraq's capacity to sustain war
strikes, whatever their source. Let us
despot, ]
is being destroyed. Our investment, our
pursue an SDI program that can deal with
outlaw a
training, our planning-all are paying off.
any future threat to the United States, to
The \
Time will not be Saddam's salvation.
our forces overseas, and to our friends and
portunit
Our purpose in the Persian Gulf remains
allies.
a new w
constant: to drive Iraq out of Kuwait, to
The quality of American technology,
unrewar
restore Kuwait's legitimate government,
thanks to the American worker, has enabled
lective re
and to ensure the stability and security of
us to successfully deal with difficult military
Yes, th
this critical region.
conditions and help minimize precious loss
of leader
tions of t
94
Administration of George Bush, 1991 / Jan. 29
of life. We have given our men and women
America has both the moral standing and
the very best. And they deserve it.
the means to back it up. We're the only
We all have a special place in our hearts
nation on this Earth that could assemble the
for the families of our men and women
forces of peace. This is the burden of lead-
serving in the Gulf. They are represented
ership and the strength that has made
here tonight by Mrs. Norman Schwarzkopf.
America the beacon of freedom in a search-
We are all very grateful to General
ing world.
Schwarzkopf and to all those serving with
him. And I might also recognize one who
This nation has never found glory in war.
came with Mrs. Schwarzkopf, Alma Powell,
Our people have never wanted to abandon
the wife of the distinguished Chairman of
the blessings of home and work for distant
the Joint Chiefs. And to the families, let me
lands and deadly conflict. If we fight in
say our forces in the Gulf will not stay there
anger, it is only because we have to fight at
one day longer than is necessary to com-
all. And all of us yearn for a world where
plete their mission.
we will never have to fight again.
The courage and success of the RAF
Each of us will measure within ourselves
pilots, of the Kuwaiti, Saudi, French, the
the value of this great struggle. Any cost in
Canadians, the Italians, the pilots of Qatar
lives-any cost-is beyond our power to
and Bahrain all are proof that for the first
measure. But the cost of closing our eyes to
time since World War II, the international
aggression is beyond mankind's power to
community is united. The leadership of the
imagine. This we do know: Our cause is
United Nations, once only a hoped-for ideal,
just; our cause is moral; our cause is right.
is now confirming its founders' vision.
I am heartened that we are not being
Let future generations understand the
asked to bear alone the financial burdens of
burden and the blessings of freedom. Let
this struggle. Last year, our friends and
them say we stood where duty required us
allies provided the bulk of the economic
to stand. Let them know that, together, we
costs of Desert Shield. And now, having re-
affirmed America and the world as a com-
ceived commitments of over $40 billion for
munity of conscience.
the first 3 months of 1991, I am confident
The winds of change are with us now.
they will do no less as we move through
The forces of freedom are together, united.
Desert Storm.
We move toward the next century more
But the world has to wonder what the
confident than ever that we have the will at
dictator of Iraq is thinking. If he thinks that
home and abroad to do what must be
by targeting innocent civilians in Israel and
done-the hard work of freedom.
Saudi Arabia, that he will gain advantage,
he is dead wrong. If he thinks that he will
May God bless the United States of Amer-
advance his cause through tragic and despi-
ica. Thank you very, very much.
cable environmental terrorism, he is dead
wrong. And if he thinks that by abusing the
coalition prisoners of war he will benefit, he
Note: The President spoke at 9:09 p.m. in
is dead wrong.
We will succeed in the Gulf. And when
the House Chamber of the Capitol. He was
we do, the world community will have sent
introduced by Thomas S. Foley, Speaker of
an enduring warning to any dictator or
the House of Representatives. In his re-
despot, present or future, who contemplates
marks, the President referred to Gen. H.
outlaw aggression.
Norman Schwarzkopf, commander of the
The world can, therefore, seize this op-
U.S. forces in the Persian Gulf, and his
portunity to fulfill the long-held promise of
wife, Renda; and Gen. Colin L. Powell,
a new world order, where brutality will go
Chairman of the Joint Chiefs of Staff. The
unrewarded and aggression will meet col-
address was broadcast live nationwide on
lective resistance.
radio and television. Prior to his address,
Yes, the United States bears a major share
the President attended a reception in the
of leadership in this effort. Among the na-
Speaker's Conference Room hosted by the
tions of the world, only the United States of
congressional leadership.
95
TALKING POINTS ON THE ADMINISTRATION'S RESPONSE
TO CHAIRMEN ROSTENKOWSKI/BENTSEN AND MAJORITY LEADER GEPHARDT
BACKGROUND
In letters to the President, Chairmen Rostenkowski and Bentsen and
Majority Leader Gephardt have invited our response to the following
key concerns about a North American Free Trade Agreement (NAFTA) :
Labor: that a NAFTA would adversely affect U.S. jobs and wage
rates; and that Mexico inadequately protects worker rights.
Environment: that a NAFTA would lead to weakening U.S. health
and safety; that it would have an adverse effect on Mexico's
environment and the border area; and that Mexico would become
a pollution haven for U.S. companies.
WHY A NAFTA?
A NAFTA offers an historic opportunity to bring together the
energies and talents of three great nations. United already
by family and cultural ties, we can now join to create the
world's largest free trade area, with 360 million consumers
and $6 trillion in output.
A NAFTA will enhance economic growth by expanding
opportunities for American workers, American companies, and
American exports.
We wish no less than the same opportunities for Mexico and
Canada; in particular a prosperous Mexico makes for a better
neighbor and customer.
THE POSITIVE IMPACT OF A NAFTA ON ECONOMIC GROWTH
From 1986 to 1990, as Mexico reduced import barriers, our
exports more than doubled from $12.4 billion to $28.4 billion
generating 264,000 additional jobs in the U.S. Last year,
overall U.S. export expansion accounted for 84% of our
economic growth.
Under a NAFTA, we can do even better. Mexico still has higher
trade barriers than the U.S. Mexico's average duty is 10%
compared to 4% in the U.S. Significant nontariff barriers
remain. We therefore have much to gain from the elimination
of these barriers.
We will benefit from Mexican growth: for each dollar Mexico
spends on imports, 70 cents is spent on U.S. goods; for each
dollar of GNP growth, 15 cents is spent on U.S. goods.
2
The resulting economic integration will strengthen the ability
of the U.S. to compete with Japan and the EC.
ADMINISTRATION'S ACTION PLANS ON LABOR AND ENVIRONMENT
We have heard the concerns about labor and the environment and
have a 7-point action plan to deal with these concerns.
1. WE WILL SEEK TRANSITION/ADJUSTMENT PROVISIONS IN THE NAFTA
U.S. trade barriers will be phased out in small increments
over a long period.
There will be an effective safeguard mechanism allowing
temporary reimposition of duties and other restrictions.
Strict rules of origin will require true North American
content so Mexico does not become a mere pass-through.
2. WE WILL HAVE AN EFFECTIVE DOMESTIC ADJUSTMENT PROGRAM FOR
WORKERS DISLOCATED BY CHANGED CONDITIONS OF COMPETITION
We do not expect significant job dislocation as a result of
the NAFTA.
Nevertheless, the Administration is committed to working with
the Congress to ensure that there is an effective, adequately
funded adjustment program for workers who may lose their jobs
as a result of the FTA with Mexico.
3. WE HAVE AGREED WITH MEXICO THAT LABOR MOBILITY AND OUR
IMMIGRATION LAWS ARE NOT ON THE TABLE IN NAFTA TALKS
The only issue on the table would be a narrow provision
facilitating entry of certain professionals and managers.
4. WE WILL BEGIN A PROGRAM OF U.S. -MEXICO COOPERATION ON LABOR
ISSUES
Mexican has strong laws on labor standards and worker rights.
What Mexican workers need is not more laws but greater
economic opportunity. A NAFTA will raise living standards and
create resources for enforcing the laws already on the books.
The U.S. and Mexican Labor departments are prepared to sign a
Memorandum of Understanding providing for joint action and
cooperation. Initial projects include occupational health and
safety, and child labor.
3
5. WE WILL MAINTAIN OUR ABILITY TO PROTECT U.S. HEALTH AND SAFETY
We will insist on our right to protect the environment, health
and safety of Americans. We will not weaken our standards and
we will preserve our right to exclude products that do not
meet them.
We will seek Mexico's commitment to work to enhance
environmental, health and safety standards regarding products,
and promote their enforcement.
6. WE WILL ENSURE PUBLIC INPUT ON THE ENVIRONMENT
In consultation with interested members of the public, we will
complete a review of U.S.-Mexico environmental issues, with
particular emphasis on possible environmental effects of the
NAFTA, in a timeframe that permits U.S. officials to consider
the results during NAFTA negotiations and other discussions.
To ensure that trade liberalization is consistent with sound
environmental practices, USTR will name to selected policy
advisory committees individuals who can bring both an
environmental perspective and substantive expertise.
7. WE WILL EXPAND JOINT U.S. -MEXICO ENVIRONMENTAL INITIATIVES
Mexico's 1988 environment law and recent enforcement efforts
demonstrate strong commitment to environmental protection.
Parallel with NAFTA negotiations, we will undertake an
ambitious program of expanded environmental cooperation,
including technical cooperation and training.
To address the special problems of the border region, we will
design and implement a 10-year border environment plan, with
full public participation and review.
We will expand cooperative enforcement activities, e.g., joint
targeting of violators.
BUT WE NEED FAST TRACK TO TAKE OUR SEAT AT THE TABLE
Fast track does not guarantee approval of any agreement.
Congress retains the unqualified right to vote down a NAFTA.
We will consult with Congress before the negotiations, during
the negotiations and in fashioning implementing legislation.
We will not rush this agreement. We will take the time
necessary to consider all issues. Until we arrive at an
agreement that will have the support of Congress and the
American people, there will be no agreement.
A
OFFICE OF PRESIDENTIAL ADVANCE
IN-TOWN EVENT CONTACT SHEET
Name
Office
Phone Number
Presidential Advance Office
456-7565
Presidential Advance Fax Number
456-2820
Dan RENBERG
waite Pees. advance
Suzanne faulk
PRES. adv.
456.7565
PETER GAILLARD
PRES ADV - PRESS
456-7565
Maggie Minogue
Media Relations
456 - 7150
VERNON WIRTH
Washington MARRIOH
872-1500
Elaine Novia
Jim Kennedy
AP/SABEW Washington MaRRiott 872-1500
572-1500 (440) 572-1500 (440) Ram
Sandy DUCRR
Courier Journal, Louisville/SABE 872-1500 loss
GRADY BARNHILL
Mike Overstreet
usss/uD 4555/TSD
395-2043/4009
566-7314
MARK MANREN
WASH MARRIOTT
877-1500
R Dawson
WHEA
393-4220
Carolyn cawley
WH speechwriting
456-7750
ARRY FISHER
WHCA LeAd
395-5589
ART SAUER
WHCA ATO
395-4227
ERIC HARNISCHFEGER
USSS/PPD
345-4011
LARRY SPERL
USSS/PPD
395-4112
JAMES D. Hewith
USSS/WFO
634-5100
Staffing copy
OFFICE OF THE UNITED STATES
TRADE REPRESENTATIVE
EXECUTIVE OFFICE OF THE PRESIDENT
WASHINGTON
20506
April 29, 1991
MEMORANDUM FOR EDE HOLIDAY
FROM:
Joshua Bolten
SUBJECT:
Response Package to Fast Track Letters
As promised, attached is a package of materials to be sent to the
Hill on May 1 in response to letters to the President from
Chairmen Rostenkowski and Bentsen and Leader Gephardt. Previous
versions of this package have been circulated for interagency
review, most recently on April 25 for final comment by April 26.
The attached package includes:
an Executive Summary;
an Overview and Tabs 1-4, to be reproduced together with a
cover sheet in one package; and
a Tab 5, to be included only in the copy of the package
being sent to Leader Gephardt (it answers some specific
Uruguay Round questions he raised).
The attached does not include:
a cover letter from the President, which is still under
discussion; and
talking points for senior officials, which will be
circulated separately but would not be part of the package
sent to the Hill.
If any problems or questions arise, please feel free to contact
me or my Deputy, Dan Price (x6800), or Charlie Ries in our North
America office (x5663). Thanks for your help.
Attachments
EXECUTIVE SUMMARY
RESPONSE TO ISSUES RAISED IN CONNECTION WITH
THE NEGOTIATION OF A NORTH AMERICAN FREE TRADE AGREEMENT
In letters to the President from Chairmen Bentsen and
Rostenkowski, and from Majority Leader Gephardt, the Administration
has been asked to address a variety of economic, labor and
environmental concerns that have been raised about the proposed
North American Free Trade Agreement (NAFTA). The Administration's
response sets forth in detail action plans for addressing these
concerns, as well as views on the economic impact of a NAFTA.
THE POSITIVE ECONOMIC IMPACT OF A NAFTA
From 1986 to 1990, as Mexico reduced import barriers, our
exports more than doubled from $12.4 billion to $28.4 billion,
generating 264,000 additional U.S. jobs.
Under a NAFTA, we can do even better. Mexico still has higher
trade barriers than the U.S. Mexico's average duty is 10%
compared to 4% in the U.S. Significant nontariff barriers
remain. We therefore have much to gain from the elimination
of these barriers.
All three major economic analyses done to date corroborate
that the U.S. will benefit from a NAFTA in exports, output and
employment.
We will benefit from Mexican growth: for each dollar Mexico
spends on imports, 70 cents is spent on U.S. goods; for each
dollar of GNP growth, 15 cents is spent on U.S. goods.
Further, the resulting economic integration will strengthen
the ability of the U.S. firms to compete with Japan and the
EC.
ADJUSTMENT PROVISIONS WE WILL SEEK IN THE NAFTA
Transition Measures: In order to avoid dislocations to
industries and workers producing goods that are import-sensitive,
tariffs and non-tariff barriers on such products should be
eliminated in small increments over a time period sufficient to
ensure orderly adjustment.
-- In determining import sensitivity, we will rely
heavily on advice of the International Trade
Commission, the Congress, and the private sector.
-- We will be prepared to consider transition periods
beyond those in the U.S.-Canada FTA.
2
Effective Safeguard Provisions: Even where reductions in tariffs
and other trade barriers are staged over a lengthy period, there
may be isolated cases in which injurious increases in imports
could occur. To prevent injury from such increases, we will seek
to include in the agreement a procedure allowing temporary
reimposition of duties and other restrictions.
-- This mechanism should be designed to respond quickly,
especially in cases of sudden import increases.
-- Special "snap-back" provisions should be included to
address the unique problems faced by producers of
perishable products.
Strict Rules of Origin: We will negotiate rules of origin to
ensure that the benefits of a NAFTA do not flow to mere pass-
through operations exporting products to the U.S. with only
minimal assembly in Mexico.
-- Rules of origin will impose clear, tough and
predictable standards to the benefit of North American
products.
-- We will seek to strengthen the required North American
content for assembled automotive products.
-- We will consult closely with the private sector and
the Congress in designing these rules.
DOMESTIC WORKER ADJUSTMENT PROGRAM
Since trade barriers on sensitive products should be decreased
over a long timeframe, we do not expect immediate or
substantial job dislocations.
Nevertheless, beyond including adjustment provisions in the
NAFTA itself, there is a need to assist dislocated workers who
may have adjustment difficulties.
The Administration is committed to working with Congress to
ensure a worker adjustment program that is adequately funded
and that provides effective services to workers who may lose
their jobs as a result of an agreement with Mexico.
Whether provided through the improvement or expansion of an
existing program or through the creation of a new program,
worker adjustment measures should be targeted to provide
dislocated workers with comprehensive services in a timely
fashion.
3
LABOR ISSUES
LABOR MOBILITY
We have agreed with Mexico that labor mobility and our
immigration laws are not on the table in NAFTA talks, with the
possible exception of a narrow provision facilitating
temporary entry of certain professionals and managers.
WORKER RIGHTS AND LABOR STANDARDS
Protections afforded by Mexican labor law and practice are
better than generally known.
Mexico's laws provide comprehensive rights and standards for
worker in all sectors including the maquiladoras.
-- Mexico has ratified 73 ILO Conventions on worker
rights, including those on occupational safety and
health.
Mexico has a minimum working age of 14 and mandates
special protections and shorter working hours for
those between the ages of 14 and 16.
A substantially higher proportion of the Mexican workforce is
unionized than the U.S. workforce.
While enforcement problems have resulted largely from a lack
of resources, a NAFTA would both raise living standards and
create resources for enforcing existing laws.
FUTURE U.S.-MEXICO COOPERATION ON LABOR MATTERS
Memorandum of Understanding: The Secretary of Labor and her
counterpart from Mexico are prepared to sign a Memorandum of
Understanding providing for cooperation and joint action on a
number of labor issues which could be implemented in parallel
with our FTA negotiations.
These include health and safety measures; work
conditions, including labor standards and enforcement;
labor conflicts; labor statistics; and other areas of
concern to the United States and Mexico.
Specific Projects: U.S. and Mexican officials have agreed on
joint projects to address specific concerns in the labor sector.
-- Initial projects include: occupational health and safety;
child labor; and improvement of labor statistics.
4
ENVIRONMENTAL ISSUES
MEXICO'S COMMITMENT TO ENVIRONMENTAL PROTECTION
Mexico companies. has no interest in being a pollution haven for U.S.
Mexico's comprehensive environmental law of 1988, which is
based on U.S. law and experience, is a solid foundation for
tackling its environmental problems.
All new investments are being held to these high legal
to show how they will comply.
standards and an environmental impact assessment is required
Enforcement has in the past been a key problem, but Mexico's
record has been improving dramatically. Since 1989, Mexico
has ordered more than 980 temporary and 82 permanent shut-
downs of industrial facilities for environmental violations;
the fold. budget of SEDUE (Mexico's EPA) has increased almost eight-
ENVIRONMENTAL ISSUES IN THE NAFTA
Protection of Health and Safety: We will ensure that our
right to safeguard the environment is preserved in the NAFTA.
-- We will maintain the right to exclude any products
that do not meet our health or safety requirements,
and we will continue to enforce those requirements.
-- We will maintain our right to impose stringent
pesticide, energy conservation, toxic waste, and
health and safety standards.
-- We will ensure our continued right to limit trade in
products controlled by international treaties (such as
treaties on endangered species, protection of the
ozone layer or trade in hazardous wastes).
Enhancement/Enforcement of Standards: We will seek a commitment
to work together with Mexico to enhance environmental, health and
enforcement. safety standards regarding products, and to promote their
--
We will provide for full public and scientific scrutiny of
any changes to standards before they are implemented.
-- We will provide for consultations on enhancing
enforcement capability, inspection training,
monitoring and verification.
5
JOINT ENVIRONMENTAL INITIATIVES
In parallel to the FTA negotiations, we intend to pursue an
ambitious program of cooperation on a wide range of
environmental matters.
We will design and implement an integrated border
environmental plan to address air and water pollution,
hazardous wastes, chemical spills, pesticides, and
enforcement.
During the design phase of the border plan, there will be an
opportunity for public comment and hearings; during
implementation, there will be periodic comprehensive reviews.
We will consult on national environmental standards and
regulations, and will provide an opportunity for the public to
submit data on alleged non-compliance.
We will discuss expanded cooperative enforcement activities,
such as coordinated targeting of environmental violators.
We will establish a program of technical cooperation and
training, which will include facilitating sharing of
technology for pollution abatement.
INFORMED POLICY MAKING AND PUBLIC PARTICIPATION
We will broaden public participation in the formulation and
implementation of trade policy to ensure that efforts to
liberalize trade are consistent with sound environmental
practices.
We will appoint individuals to selected trade policy advisory
committees who can contribute both an environmental
perspective and substantive expertise.
In consultation with interested members of the public, we will
complete a review of U.S. - Mexico environmental issues, with
particular emphasis on possible environmental effects of the
NAFTA, to enable U.S. officials to consider the results during
FTA negotiations and other bilateral efforts.
Steve Fanar
DRAFT
April 29, 1991
FAST TRACK LETTERS TO BENTSEN, ROSTENKOWSKI & GEPHARDT
Dear Mr. Chairman:
Through the better part of this century, successive
Congresses and Administrations -- Republican and Democratic --
have worked to open markets and expand American exports. This
partnership has resulted in unparalleled growth in world trade
and huge economic benefits for the United States. Opening
foreign markets means economic growth and jobs for all
Americans.
Historically, the fast track procedures established by the
Congress have served us well. On March 1, I requested an
extension of fast track so that we could continue to realize
increased economic growth and the other benefits of expanded
trade. The fast track in no way limits the ability of Congress
to review any agreement negotiated, including the Uruguay Round
or a North American Free Trade Agreement (NAFTA). If Congress
is not satisfied, it retains the unqualified right to reject
whatever is negotiated. But refusing to extend the fast track
would end negotiations before they have even begun and
relinquish a critical opportunity for future economic growth.
The Uruguay Round offers a vital opportunity to open
markets and eliminate barriers to our goods, investment,
services, and ideas. A NAFTA offers an historic opportunity to
bring together the energies and talents of three great nations,
already bound by strong ties of family, business, and culture.
These initiatives will enhance the global competitiveness of
the United States and create new opportunities for American
workers, American exports, and American economic growth.
In seeking to expand our economic growth, I am committed
to achieving a balance that recognizes the need to preserve the
environment, protect worker safety, and facilitate adjustment.
In your letter of March 7, you conveyed a number of important
Congressional concerns about free trade with Mexico. At my
direction, Ambassador Hills and my Economic Policy Council have
undertaken an intensive review of our NAFTA objectives and
strategy to ensure thorough consideration of the economic,
labor, and environmental issues raised by you and your
colleagues. The Administration's response is presented in the
attached report. Let me emphasize the following:
First, you have my personal commitment to close bipartisan
cooperation in the negotiations and beyond. And you have my
personal assurance that we will take the time necessary to
conclude agreements in which both the Congress and the
Administration can take pride.
Second, while economic studies show that a free trade
DRAFT
-2-
agreement would create jobs and promote growth in the United
States, I know there is concern about adjustment in some
sectors These concerns will be addressed through provisions
in the NAFTA designed to ease the transition for import-
sensitive industries. In addition, my Administration is
committed to working with the Congress to ensure that there is
adequate assistance and effective retraining for dislocated
particularly in agriculture
workers.
Third, based on my discussions with President Salinas, I
am convinced that he is firmly committed to strengthened
environmental protection, and that there is strong support for
this objective among the Mexican people. Because economic
growth can and should be supported by enhanced environmental
protection, we will develop and implement an expanded program
of environmental cooperation in parallel to the free trade
talks.
Fourth, President Salinas has also made it clear to me
that his objective in pursuing free trade is to improve the lot
of Mexican working people. Mexico has strong laws regulating
labor standards and worker rights. Beyond what Mexico is
already doing, we will work through new initiatives to expand
U.S.-Mexico labor cooperation.
Thus, our efforts toward economic integration will be
complemented by expanded programs of cooperation on labor and
the environment. The catalyst for these efforts is the
economic growth that a NAFTA can provide, and the key to these
efforts is the extension of unencumbered fast track procedures.
There are great challenges ahead. The world is changing
dramatically, as nations move toward democracy and free
markets. The United States must continue to open new markets
and lead in technological innovation, confident that America
can and will prevail in this new and emerging world. By
working together, we can negotiate good trade agreements that
assure a strong and healthy America as we prepare to meet the
challenges of the next century.
Sincerely,
Apr. 7 / Administration of George Bush, 1991
objectives which we so beautifully have
I've been looking forward to this meeting
not V
achieved. None. And I hope that helps clari-
today. We've had a series of these, as some
nolo
fy it.
of you know. Some have attended one in
Ri:
Thank you all very much.
Washington, then we had one out in Cali-
oppo
fornia, and now this. Because I do want to
Yuko
Note: President Bush's 79th news confer-
discuss with you two issues that are vitally
Nort]
ence began at 11:51 a.m. in the Briefing
important to all of us: America's ability to
woul
Room at Ellington Field. President Salinas
compete in the global marketplace and our
ner,
spoke in Spanish, and his remarks were
ability to negotiate with our trading part-
partr
translated by an interpreter. Marlin Fitz-
ners. That's what's at stake right now. I've
riche
water is Press Secretary to President Bush.
said many times that the hard work of free-
const
trillic
dom awaits us. And now, I'm asking for
A
your help in that challenge.
let e.
I love the way that Mexico's very able
stren
Remarks at a Meeting With Hispanic
President Carlos Salinas talked yesterday
Business Leaders in Houston, Texas
about the vision-the vision of free and fair
jobs
one.
April 8, 1991
trade between the two countries. It's a
for 1
vision that we share. Last month, I asked
Congress to support this Fast Track author-
comp
Thank you all very much. And Miguel,
prove
thank you for your leadership for the Great-
ity in trade negotiations. You see, Fast
woul
er Houston Partnership. And to all of you
Track is a way of assuring our trading coun-
clothi
who managed to get through security and
terparts that the agreements that they
our P
struggle in here, why-[laughter]-apolo-
reach with us at that bargaining table, the
tivity
gies for the delay, but I'm sure glad to see
one they reach with our negotiators will be
living
you.
the same ones that Congress has a chance
Let
Even though these lights are bright, I can
to vote on, up or down. Some are alleging
the ]
see many, many friendly faces out there,
Congress has no say. And that's simply not
Mexi
people with whom I've worked for one
true.
free-t
cause or another over the years. You have
Fast Track doesn't affect Congress' power
has h
this wonderful way of making a guy feel at
to accept or reject trade agreements. But it
Just
home. So, thank you for coming. Lionel
does prevent these 11th-hour changes to
trade
Sosa, I love those ads. They're terrific. I
agreements that have been hammered out,
cut th
believe they're going to be very effective.
changes that force everyone to start all over
This 1
And I thank you for your energy and your
again.
Mexic
expertise. Those are the people that-also,
We need Fast Track authority to pursue
He's
would thank all of those who are helping
vital trade objectives: the North American
100 P
you on this project.
free-trade agreement, the Uruguay round,
expor
To my old friend, Bob Mosbacher, our
and the Enterprise for the Americas Initia-
cent ]
able Secretary of Commerce, I'm glad to
tive. If we lose our Fast Track authority, we
This
see him. He's slightly jet lagged out, having
lose any hope of achieving these three vital
300,00
just returned from Japan on yet another
agreements. The North American free-trade
of Am
mission to try to encourage our exports-a
agreement, the Uruguay round, and the En-
lars in
mission in favor of free and fair trade-
terprise for the Americas Initiative. We lose
in the
something we must continue to press for,
trade, we lose jobs, and we jeopardize eco-
I do
whether it's halfway across the world or
nomic growth.
about
whether it's in relation to our own neigh-
Here's the key: A vote against Fast Track
consu
bors to the south. And Bob is doing a great
is a vote against things that we all hold
do I}
job, a leadership role in fighting for free
dear-prosperity at home and growth in
and p'
trade because he knows as I do, and as all of
other lands. It ignores the dramatic and
goods
you do, that the freer the trade is, the more
wonderful changes in the world economy.
manuf
job opportunities there are for the people of
We want to play a leading role in that
high-v:
the United States of America, say nothing of
emerging, exciting world, and we don't
Unfo
our trading partners. And so, I'm glad to
want to hide from it. We want to join in the
ahead
see him back from his mission.
thrilling business of innovation, and we do
concer
408
Administration of George Bush, 1991 / Apr. 8
eting
not want to chain people to outmoded tech-
any agreement may have on American jobs,
some
nologies and ideas.
American companies, American exports.
ne in
Right now, we have the chance to expand
Other Members of Congress say that they
Cali-
opportunity and economic growth from the
worry about wage rates or environmental
nt to
Yukon to the Yucatan. Think of it. The
quality, health and safety issues. I believe, I
vitally
North American free-trade agreement
firmly believe that concern about those
ity to
would link us with our largest trading part-
very same issues is the strongest argument
d our
ner, Canada, and our third-largest trading
for support for Fast Track.
part-
partner, Mexico. It would create the largest,
Let me just talk about those concerns.
I've
richest trade zone on Earth: 360 million
We've already seen what the reduction in
free-
consumers in a market that generates $6
g for
trillion in output in a single year.
Mexican tariffs has done for our exports—
A unified North American market would
American exports to Mexico. A free-trade
let each of our countries build on our own
agreement would eliminate the remaining
able
strengths. It would provide more and better
tariffs entirely. And that would stimulate
erday
jobs for U.S. workers. Let me repeat that
exports, create new jobs, generate wealth,
d fair
one. It would provide more and better jobs
and hope, I might add, on both sides of the
t's a
for U.S. workers. It would stimulate price
border.
asked
competition, lower consumer prices, im-
Let's take a look at the impact on Ameri-
thor-
prove product quality. The agreement
can companies. When trade barriers vanish,
Fast
would make necessities such as food and
goods flow freely across borders. And every-
coun-
clothing more affordable, more available to
body-businessmen and workers, to farmers
they
our poorest citizens. It would raise produc-
and consumers-reaps the benefits of
the
tivity and produce a higher standard of
growth.
ill be
living throughout the continent.
Consider the environment. The North
ance
Let me illustrate the stakes involved in
American free-trade agreement fits into a
eging
the Fast Track debate by discussing the
winning strategy of improving environmen-
y not
Mexican component of the North American
tal quality. Opponents of Fast Track and
free-trade agreement. Trade with Mexico
the trade pacts forget that prosperity offers
ower
has helped both our countries.
the surest road to worker safety, public
But it
Just 4 years ago, we had a $4.9 billion
health, and indeed, environmental quality.
es to
trade deficit with Mexico. Since then, we've
This administration wants to ensure that
out,
cut that deficit by two-thirds, to $1.8 billion.
Mexican economic growth goes hand in
over
This turnaround took place in part because
hand with the environmental protection.
Mexico's President believes in free trade.
Our EPA is already assisting the Salinas
irsue
He's slashed tariff rates for some goods from
government with its environmental pro-
rican
100 percent to 10 percent. One result: our
grams. President Salinas has shown that he's
und,
exports to Mexico have increased 130 per-
serious about cleaning up the environment,
nitia-
cent in the past 4 years.
by requiring all new cars to have catalytic
y, we
This export boom has created more than
converters, and recently, I'm sure all of us
vital
300,000 new jobs here in the United States
noticed with pride and pleasure the fact
trade
of America. And each additional billion dol-
that he shut down Mexico's largest oil refin-
En-
lars in exports creates 20,000 new jobs here
ery because, frankly, it was just too much
lose
in the United States.
pollution into the air. I know that President
eco-
I don't have to tell anyone in this room
Salinas cares deeply about his nation and its
about Mexico's market potential: 85 million
people and that he means business when he
rack
consumers who want to buy our goods. Nor
says he wants to clean up Mexico's air and
hold
do I have to tell you that as Mexico grows
water.
ch in
and prospers, it will need even more of the
And finally, consider the matter of work-
and
goods we're best at producing: computers,
ing conditions in Mexico. As our trade with
omy.
manufacturing equipment, high-tech and
Mexico has grown, so have the wages of
that
n the
0
high-value products.
Mexican workers. Indeed, Mexican wages
don't
Unfortunately, we've got a tough fight
have risen very quickly in recent years,
ahead of us. Some Members of Congress are
with no tangible impact on America's pay
e do
concerned about the potential impact that
scales. That being the case, someone ought
409
Apr. 8 / Administration of George Bush, 1991
to ask the opponents of Fast Track why
And so, I will be fighting my heart out to
comm-
they oppose prosperity in Mexico.
win passage of this. I was very privileged to
Dallas
Someone should ask why they oppose let-
receive for the second time in Houston the
nize tl
ting our neighbors enjoy the benefits of
able President of Mexico yesterday. He's
Minist
progress. These are our friends. These are
doing a first-class job. He's moved that
I think
our neighbors. Ask them what's wrong with
country in ways that some of his critics
increased productivity throughout the
bring
would never dared dream possible. And I
whole continent. We benefit when others in
what t
think that it is in our interest now to build
this continent prosper. And ask them what's
hope,
on this improved and strengthened relation-
wrong with a more stable Mexico. A free-
be reb
ship to give them and give ourselves the
trade pact would encourage investment,
benefit of free and fair trade.
Havi
would create jobs, would lift wages, and
So, as we join a world that is linked pri-
Kathy
give talented Mexican citizens opportunities
marily by economic-not military-compe-
others
that they don't enjoy today. A stronger
tition, we have nothing to fear except the
experi
Mexico, in turn, means a stronger United
fearmongers themselves. They seem to be
Hope
States; it means a stronger North American
the only ones who haven't learned lately
began,
alliance.
that defeatism produces defeat, while confi-
doned
So, you see, we have much to gain from
dence and self-reliance produce greatness.
hard "
extending Fast Track: a new era of open,
We've got to seize the opportunities that
free and fair trade, a future of unprecedent-
selves,
this new world economy offers us. And with
into a
ed economic growth and regional harmony.
your help, I am absolutely convinced that
love an
As with most good things in life, competi-
we will do it.
tion involves risk. But we always have been
Thro:
a nation of risktakers, of adventurers.
So, once again, thank you for coming.
lives of
Our forefathers transformed a rough wil-
And I pledge to each and every one of you
derness into an industrial superpower.
that this goal is so important to the United
eracy i.
We've created technologies and products
States that it will be priority with me, with
to oper
unlike any others produced in human histo-
Secretary Mosbacher, with every other
and the
member of the Bush administration in
reclaim
ry. We've placed the wisdom of the ages
within reach of anyone who can operate a
Washington, DC. We are going to win this
disintes
fight. But we need your help. Thank you all
whole.
computer.
The vote on Fast Track is really a vote on
very, very much.
And
what kind of America we want to build. A
grateful
"yes" vote expresses confidence in Ameri-
Note: The President spoke at 8:30 a.m. in
strides
can know-how and ingenuity. I say we be-
the Evergreen Room at the Houstonian
Americ.
lieve in ourselves.
Hotel. In his remarks, he referred to Miguel
very pr
I want to make clear that this isn't a par-
San Juan, vice president, world trade divi-
who say
tisan political issue. I want to salute those
sion, Greater Houston Partnership, and
can't be
Democratic leaders in the United States
Lionel Sosa, who produced a video shown
to Dalla
Congress, including our own Senator Lloyd
prior to the President's remarks.
tries for
Bentsen, who's a key player in this debate,
And
and others in the House-Speaker Foley-
being a
who have the vision to say this is good for
and eve.
the United States and it's good for Mexico.
Remarks on Presenting a Point of Light
I'm going to approach this strictly in a non-
Award to the Voice of Hope Ministries
And n
partisan, nonpolitical manner. It is too im-
in Dallas, Texas
to prese!
portant to get it bogged down in partisan
Voice o
April 8, 1991
politics. I take great pride in the fact that
Light re
the relationship between Mexico and the
Let me just say Barbara and I are delight-
United States has never been better. But it
ed to be here. In the first place, I want to
is my view that we owe Mexicans the op-
salute all at the Dallas Naval Air Station,
Note: T/
portunity that they will get from Fast
and say it's a pleasure to be back.
the tarm
Track. And when they get that opportunity
But today what I wanted to do here in
Station
it is going to benefit the United States of
this very brief period of time was to salute
not avail
America.
those that are gathered here not only to
of these
410
SABEW
Society of American
Business Editors & Writers
28th Annual Meeting
April 27 - May 1, 1991
Washington Marriott
Washington, D.C.
PROGRAM CHANGES
Tuesday, April 30
2 - 3 p.m.
Joseph Hardiman, president
National Association of
Securities Dealers
Wednesday, May 1
9 - 9:45 a.m.
Michael Boskin, chairman,
President's Council
of Economic Advisers
noon (before lunch)
President Bush
Wednesday, May 1
OFFICERS
7:30-8:30
Board meeting
Susan C. Thomson
(Thomas Room)
President
Business Columnist
8:00-9:00
Continental breakfast/ Visit
St. Louis Post-Dispatch
with exhibitors
900 North Tucker Blvd.
St. Louis, MO 63101
9:00-9:45
Joseph R. Hardiman,
314-622-7026
President and CEO,
National Association of
Sandra J. Deurr
Securities Dealers, Inc.
Vice President
Business Editor
9:45-10:15 Break/Visit with exhibitors
Louisville Courier-Journal
525 West Broadway
10:15-11:00 Making sense of the census
Louisville, KY 40202
Peter A. Bounpane,
502-582-4843
Assistant Director,
Bureau of the Census
Phillip Moeller
Editor, The Business Journalist
Bill Dunn,
Business Editor
Demographics Editor,
Baltimore Sun
USA Today
501 N. Calvert St.
Baltimore, MD 21278
Moderator: Randy Smith,
301-332-6213
Assistant Managing Editor/
Business, Kansas City Star
EXECUTIVE DIRECTOR
11:00-11:50 How to better cover
minority business
James K. Gentry
Earl Graves, Editor and
School of Journalism
Publisher, Black Enterprise
University of Missouri
Magazine
ADMINISTRATIVE OFFICES
12:00-1:30
Lunch speaker
Dr. Michael Boskin,
Doris Barnhart
Chairman, President's
School of Journalism
Council of Economic
University of Missouri
Advisers
P.O. Box 838
Columbia, Mo. 65205
314-882-7862
Schedule subject to change.
GOVERNORS
3:00-4:00
Richard C. Breeden,
Chairman, Securities and
Bill Barnhart
Exchange Commission
Chicago Tribune
4:00-5:30
The future of U.S. banking
Margaret Daly
Rep. Jim Leach, R-Iowa,
Better Homes and Gardens
Member of House
Committee on Banking,
Stephen Dunphy
Finance and Urban Affairs
Seattle Times
Karen Shaw, President,
William M. Flynn
Institute for Strategy
Buffalo News
Development; Former Vice
President, Bank of America
Cheryl Hall
Dallas Morning News
Kenneth Guenther, Jr.,
Executive Vice President,
Myron Kandel
Independent Bänkers
Cable News Network
Association of America
Jim Kennedy
Moderator: Peter Behr,
Associated Press
Assistant Managing Editor/
Business, Washington Post
Gary Klott
Times Books
6:30-7:30
Reception
Sponsor: Associated Press
Jim Mitchell
(Georgetown Room)
San Jose Mercury News
7:30-9:30
Dinner speaker
Richard L. Papiernik
Lynn Martin,
Albany (N.Y.) Times Union
Secretary of Labor
(Salon D-E)
Peter Sinton
San Francisco Chronicle
9:30
Hospitality suite
(Room 728)
Randy Smith
Kansas City Star
Tuesday, April 30
Hospitality Suite co-sponsored all week by
Knight-Ridder/Tribune News and Knight-
7:30-8:30
Continental breakfast/ Visit
Ridder Financial News.
with exhibitors
Saturday, April 27
8:30-9:30
Concurrent sessions
(select one)
2:00
Board meeting
Covering the local economy
(Georgetown II Room)
David, Vise,
Deputy Business Editor,
9-11:00 pm Registration/ Hospitality
Washington Post
suite (Room 728)
Ann Swardson,
Sunday, April 28
Business Reporter,
Washington Post
8:00
Buses depart hotel
for Baltimore
Stock tables: Using the news.
services to improve coverage
9:30
The economics of
and trim space
professional sports
Moderator: Larry Werner,
David Petersen,
Assistant Managing Editor/
Director of Sports &
Business, Minneapolis Star
Convention Facilities
Tribune
Advisory Services,
Price Waterhouse, Tampa
9:30-10:30
Critique: What we're
covering right and wrong
Bruce Hoffman,
Chris Welles, Senior Writer,
Executive Director,
Business Week
Maryland Stadium Authority
10:30-10:45 Break
Moderator: Philip Moeller,
Business Editor,
10:45-12:00 SABEW annual business
Baltimore Sun
meeting
1:35
Baltimore Orioles game
12:00-1:45
Lunch speaker
Robert Glauber,
7:00 - 8:00
Reception (Salon C)
Undersecretary for Finance,
at Washington Marriott
Department of the Treasury
Co-sponsors: Reuters
Information Services, Inc.,
1:45-3:00
Break/ Visit with exhibitors
and Washington Post
8:30
Hospitality suite (Room 728)
All hotel sessions will be in the West End
William Sinclair, Chairman
Ballroom C-D-E. All continental breakfasts/
breaks in West End Ballroom A-B. Lunches
and CEO, Washington
will be in the Georgetown Room.
Federal Savings Bank
Monday, April 29
Dale Leibach, Vice President,
Powell, Adams and Rinehart
8:00-9:00
Continental breakfast/
Moderator: Wendell Cochran,
Visit with exhibitors
Business Writer,
Gannett News Service
9:00-9:15
Welcome
Sue Thomson,
3:30-3:45
Break/Visit with exhibitors
SABEW President
3:45-5:00
Getting over the recession
9:15-10:00
Samuel K. Skinner,
blues
Secretary, U.S. Department
H. Erich Heinemann, Chief
of Transportation
Economist, Ladenburg,
Thalmann and Co.
10:00-10:30 Break/Visit with exhibitors
Rudolph Penner, Senior
10:30-11:45 Concurrent sessions
Fellow, Urban Institute
(select one)
Managing in the 1990s
Gail D. Fosler,
Moderator: Cheryl Hall,
Chief Economist,
Business Editor,
Conference Board
Dallas Morning News
Moderator: Mike Kandel,
How to make business
Financial Editor, CNN
stories jump off the page
Donald Fry, Writing Group,
6:15-7:30
Reception at USA Today
Poynter Institute
Co-sponsors: Gannett News
Service and USA Today
12:00-1:45
Lunch speaker
Lane Kirkland,
9:30
Hospitality suite (Room 728)
President, AFL-CIO
2:00-3:30
Business of politics
Martin T. Farmer,
Executive Director,
Government Relations,
Barnett Banks Inc. of Florida