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Originally Processed With FOIA(s): FOIA Number: S S FOIA MARKER This is not a textual record. This is used as an administrative marker by the George Bush Presidential Library Staff. Record Group/Collection: George H.W. Bush Presidential Records Collection/Office of Origin: Speechwriting, White House Office of Series: Speech File Backup Files Subseries: Chron File, 1989-1993 OA/ID Number: 13823 Folder ID Number: 13823-003 Folder Title: Hispanic Business Leaders 7/27/92 [OA 7577] Stack: Row: Section: Shelf: Position: G 26 22 6 6 THE WHITE HOUSE WASHINGTON July 27, 1992 MEMORANDUM FOR THE PRESIDENT THROUGH: STEVE PROVOST Martorsp FROM: JOSEPH P. DUGGAN 2 SUBJECT: PROPOSED REMARKS FOR HISPANIC BUSINESS LEADERS I. SUMMARY On Tuesday, July 28, at 9:30 a.m., you will address approximately 250 Hispanic business leaders in the Rose Garden. II. DISCUSSION Your remarks (approximately 9 minutes / cards), highlight the Administration's growth package still awaiting action in Congress, and they outline the benefits of NAFTA to small businesses. (Duggan/Walters/Nix) July 27, 1992 Draft Four HB PRESIDENTIAL REMARKS: HISPANIC BUSINESS LEADERS THE ROSE GARDEN THE WHITE HOUSE TUESDAY, JULY 28, 1992 9:30 A.M. [Acknowledgments] Welcome to the White House. Jesus [Chavarria, editor and publisher of Hispanic Business], thanks for your leadership in bringing together so many dynamic women and men from Hispanic-owned businesses. You enliven this country, you're keeping America great -- each one of you. 11 We're together today because we believe in the future -- and we know how to get there. Our future depends on freedom. Freedom works. Freedom is right. 11 The economy is growing -- Hispanic-owned businesses are in the vanguard of this growth, in the forefront of creating good new jobs for Americans. We need to grow faster, and we know what's holding us back. Let me sum it up in a single sentence: Government is too big -- and it spends too much. 11 An old guard of tax-and-spend politicians has controlled Congress for most of the past 40 years. Already this year, I've given Congress a choice between economic growth and big government. Congress took sides with big government. Here's what happened: In January, I proposed a common- sense, comprehensive plan to get this economy moving faster, right now. The plan includes tax incentives to encourage businesses to hire new workers and breaks for young families who want to buy a first home. Half a million jobs would have been 2 created, if if Congress had acted right away. But they didn't. Instead, Congress passed a package of new government spending and new taxes. A package they knew I'd veto. So I sent their plan back. I'm still waiting. almost 200 days later. This economic recovery plan is being held hostage, and the ransom note reads: "wait till after the election." The party that controls the Congress is holding jobs and free enterprise hostage to their hopes that they can elect a tax- and-spend partisan of their very own to the White House. The Democrats' candidate for President wants to raise taxes on American business. He pushes the old "class warfare" line about squeezing more from the "rich." What he doesn't say is that more than half of those affected by his proposed hike in individual tax rates are family farmers small business men and women maybe people like yourselves. \ All told, my opponent wants to saddle American businesses with more than $100 billion in new taxes and federal mandates. I understand you're going up to Capitol Hill later in the day. I'd ask you to take a message up there with you: Tell your members of Congress my plan will speed up growth now. Tell them they'll have a price to pay if they continue to hold our economy hostage to election year politics. Tell them to approve my growth initiatives -- without delay. 11 Tell them to release this economy, \ approve my jobs program, and put America back to work now. 3 You and I are together today because we also share a vision for the long term: We want to build a solid foundation for America's future in the world economy. And one of the most exciting developments in our nation's history is coming now to fruition. I'm talking about the North American Free Trade Agreement. Our negotiators reported solid progress from the meetings in Mexico City last weekend. They'll meet again [date and place]. We're very close to completing an agreement that will mean more jobs / more growth /more opportunity for American workers. Everyone wins through open trade with Mexico and Canada. Open trade will make each of us better neighbors and closer friends. Open trade will offer new opportunities for people to invent and produce and take new goods and services to market. Look at the numbers: During the recent, partial opening of the Mexican markets since 1986, U.S. exports to Mexico have almost tripled. More than 600,000 American workers now owe their jobs to trade with Mexico. We enjoy a robust trade surplus with Mexico -- $2.1 billion last year, and it's estimated we'll achieve a surplus of more than $8 billion this year. The new jobs created by trade with Mexico are to be found not only in the border states, but all across the country. Our top ten states exporting to Mexico now include Michigan, Illinois, New York, Pennsylvania and Florida. When the trade agreement goes to Congress -- not if, but when -- I'll need the utmost help from each and every one of you. 4 Please don't have any illusions this will be an easy fight. The leadership of Hispanic business men and women was crucial in winning our fast-track effort last year. This new round of the battle will make fast-track seem easy by comparison. Yesterday the head of the protectionist wing of the Congress, the House Majority Leader, gave his latest signals of opposition to an agreement he hasn't even seen. And meanwhile my opponent in this race for the White House pays lip service to open trade -- but when it comes to a real decision, it seems he's put his proxy in the pockets of the big unions, the ideological interest groups, and the protectionist faction in Congress. 11 We've consulted closely with Congress and with business leaders every step of the way in these negotiations. And when we wrap up the North American Free Trade Agreement, it will be a good deal for American workers and consumers and businesses. It will be overwhelmingly in our interest to approve this agreement. America faces a choice this year between starkly different philosophies. The old guard on Capitol Hill and their standard- bearers in the Presidential race believe that more taxes and more government spending can create jobs and prosperity. They put their cozy relationships with the big unions and the special interest groups in the way of our vision of open new markets for American goods and services. Fundamentally, they don't trust the American people with their earnings, with their property, with their plans and dreams for the future. They're pessimists -- and their policies are designed to make their pessimism a self- 5 fulfilling prophecy. Well, don't let the pessimists faze you. Don't let political smoke and mirrors obscure your vision of the prize that's ahead for our kids and grandchildren. Our future is as bright as it has ever been. For my part, I'm leading the campaign to elect a new Congress. I'm determined to break the logjam of the old politics. Next year, with a radically different Congress -- a Congress that's ready to act -- we'll work to restore government that lives within limits. \ Government that respects people's labor and property. \ Government that has faith in our ability to compete in foreign markets. \ Government that trusts the American people. 11 Thank you for joining me here today. Thanks for all that Hispanic businessmen and women are doing to build a solid foundation for our future. May God bless all of you. # # # THE WHITE HOUSE WASHINGTON July 27, 1992 MEDIA ADVISORY FOR YOUR INFORMATION ONLY, NOT FOR PUBLICATION OR BROADCAST EVENT: CEREMONY RECOGNIZING THE NATION'S TOP HISPANIC-OWNED BUSINESSES DATE AND TIME: TUESDAY,, JULY 28, 1992 9:30 A.M. LOCATION (tent.) : ROSE GARDEN COVERAGE (tent.) : OPEN PRESS AVAILABILITY IN THE STAKE-OUT AREA FOLLOWING THE EVENT: 9:45 A.M. In a Rose Garden ceremony, President Bush will honor the leaders of the Nation's top Hispanic-owned businesses as recognized by Hispanic Business Magazine. Below is a list of the leaders who will be in attendance at tomorrow's ceremony. Also listed is the name and location of the business. HISPANIC BUSINESS ATTENDEES As Recognized by Hispanic Business Magazine Yvonne R. Lucero David M. Rodrigues Lucero Computer Products Titan Rubber & Supply Co. Idaho Falls, ID San Jose, CA Robert A. Martinez Maria Elena Torano Ankmar Door Inc. META Inc. Denver, CO Miami, FL Pedro Justo Saez Salvador Alaniz Sr. Saez Refrigeration Inc. Alaniz & Sons Inc. Miami, FL Mt. Pleasant, IA Paul R. Dickinson Leonard J. Pelletiere H-R Industries Inc. Best Meridian Insurance Co. Richardson, TX Coral Gables, FL Moses E. Cordova Carlos Burtin Cordova Bolt Inc. Burtin Corporation Buena Park, CA Santa Ana, CA Phillip Ramos Jr. Dr. Leon Presser Philatron International Inc. Softool Corporation Santa Fe Spring, CA Goleta, CA E.H. Sapper George Cruzado Sapper Construction Co. Technical Telephone Systems San Diego, CA Staten Island, NY Linda F. Murphy-Barrera Angel F. Jimenez Project Advisers Corp. McLean Cargo Specialists Miami, FL Humble, TX Agustin F. Otero Jack Valor S. Volkswagen Subaru & Olds Valor Financial Group Waldorf, MD Miami, FL Francisco J. Salas Ernest E. Ortega CSR Construction Corp. Home Educ. Livelihood Nutley, NJ Prog. Inc. Albuquerque, NM Manuel E. Menendez Cosme J. Salzar Deneba Systems Tube America Inc. Miami, FL Houston, TX Jorge Guiloff Roberto E. Espat North American Trade Corp. Roses Southwest Papers Houston, TX Albuquerque, NM Guillermo J. Venegas Sr. Fred Burgos Vanegas Enterprises Inc. Fred Burgos Construction Co. Louisville, KY Montgomery, AL Alberto E. Solares Rafael Puga Solares Florida Corp. Beagle Products Inc. Miami, FL Miami, FL Frank E. Rivera Sr. Ervin E. Torrez Advanced Data Concepts Inc. Computer Resource Management Portland, OR Herndon, VA Alex Meruelo Rudolf J. Lozano La Pizza Loca Inc. Bonanza Tire Sales Inc. Buena Park, CA Houston, TX Carlos M. Frum Carlos M. Baranano Northbrook Computers Inc. Injectronics Inc. Northbrook, IL Clinton, MA Gary H. Cortes Robert Ontiveros Hoffman-Cortes Contracting Co. Bi-State Holdings Inc. Kansas City, MO Milan, IL J.C. Viramontes Juan A Gutierrez Economy Laundries Inc. Northeast Commonwealth Inc. El Paso, TX Lakewood, NJ Dennis E. Nixon Irma Elder International Bancshares Corp. Troy Ford Laredo, TX Troy, MI Frank Galeana Anthony A. Batarse Jr. Van Dyke Dodge Inc. Lloyd A. Wise Inc. Warren, MI Oakland, CA Francisco J. Collazo Henry J. Aguirre Colsa Corporation Mexican Industries in MI. Huntsville, AL Detroit, MI. Enrique Gomez Palacio Antonio M. Sierra Mexalloy International Inc. Business Men's Insurance Mobile, AL Miami, FL Ed L. Romero Teresa Rodriguez Advanced Sciences Inc. T.R. Companies Albuquerque, NM Houston, TX Guido Adler E. John Gregory Suram Trading Corp. J.T. Slocomb Co. Coral Gables, FL S Glastonbury, CT Alberto M. Rodriguez John Soto Alrod International Inc. Magnet Industrial Group Burlingame, CA Milford, CT Carlos M. de Cespedes N.R. Innerbichler Pharmed Group TAMSCO Miami, FL Calverton, MD Gabriel E. Aguirre Harry F. Risso Sani Serv Popular Ford Sales Inc. Indianapolis, IN Brooklyn, NY Manuel Capo Ramiro Guzman El Dorado Furniture Corp. Dickshire Distributing Miami, FL El Paso, TX Dario O. Marquez Jr. Carlos Planas MVM Inc. Tamiami Automotive Group Falls Church, VA Miami, FL Hector G. De Lara Jr. Humberto A. Pujals De Lara Travel Consultants Gov't Micro Resources Coral Gables, FL Chantilly, VA Raul O. Martinez Napoleon Barragan King Taco Restaurants Inc. Dial-A-Mattress Los Angeles, CA Long Island City, NY Oscar M. Ancira Sr. Hilario F. Candela O.R.A. Corporation Spillis Candela&Partners San Diego, CA Coral Gables, FL Tulio Rodriguez George Feldenkreis Electropolis Corporation Supreme Int'l Corp. Miami, FL Miami, FL R.J. Gonzalez Facundo Bravo Gonzalez Design Engineering UniBoring Company Inc. Madison Heights, MI Livonia, MI Ramon A. Alvarez Martin Alvarez Systems, Requirements &Serv Sun Eagle Corp. Arlington, VA Chandler, AZ George Feldenkreis Benjamin Acevedo Carfel Inc. Cal-State Lumber Sales Inc. Miami, FL San Ysidro, CA Raul Alarcon Jr. A. R. Sanchez Jr. Spanish Broadcasting System Sanchez-O'Brien Oil & Gas New York, NY Laredo, TX Armando C. Chapelli Jr. Manuel de Torres Washington Consulting Group Metro Litho Inc. Washington, D.C. Moonachie, NJ Teresa McBride Miguel A. Hernandez Jr. McBride & Associates Inc. Hernandez Engineering Inc. Albuquerque, NM Houston, TX Anthony J. Borrell Jr. Edward R. Fernandez Borrell Inc. Sherikon Inc. Tampa, FL Chantilly, VA Roderick A. Suarez Juan Carlos Monzon Dixie Numerics Inc. MCC Marble Ceramic Center Lake city, GA Miami, FL Nancy E. Archuleta Joseph M. Aragon Mevatec Corporation ProServe Corp. Huntsville, AL Denver, CO FOR INTERVIEW REQUESTS AND WHITE HOUSE PRESS CREDENTIALS, PLEASE CONTACT MEG OFFIT, OFFICE OF MEDIA AFFAIRS, (202) 456-7150. JUL 28 '92 11:04 FROM TO 94566218 PAGE. 001/014 OF THE THE II INSURENT THE OFFICE THELANTED STATES TRADE SERVIS ) OF THER OF UNITED 7-28-92 Facsimile Cover Sheet OFFICE OF THE U.S. TRADE REPRESENTATIVE Executive Office of The President Washington, D. C. TO: Ed walters AGENCY: White House FAX NUMBER: 456-6218 FROM: PATRICIA D. NORMAN, DIRECTOR FOREIGN MEDIA RELATIONS U.S. TRADE REPRESENTATIVE 600 17TH STREET N.W. - ROOM 101 WASHINGTON D.C., 20506 TEL.: (202) 395-3232 FAX.: (202) 395-7226 MESSAGE: ) As promised, this is the document left at USTR by demonstrators April b, 1992. 2 I've asked my colleagues About anti- NAFTA ads, and have not come up with anything yet. But I'll give you a definite answer tomorrow NUMBER OF PAGES 14 JUL 28 '92 11:05 FROM TO 94566218 PAGE. 002/014 April 6, 1992 TOO HIGH A PRICE FOR FREE TRADES CITIZENS' AMALYSIS OF THE DALLAS DRAFT OF MAFTA The negotiations toward establishing a North American Free Trade Agreement between the United States, Mexico, and Canada are headed in a direction which looks perilous for workers, family farmers, consumers, and the environment, said representatives of national citizens' coalitions and constituency groups. Citizens' groups obtained a preliminary draft of the proposed trade agree- ment last week (reflecting the negotiators' areas of agreement up through the Dallas meetings that ended February 21st) and have now completed an initial review. Both in terms of its underlying philosophy and the concrete details, the draft agreement is completely unacceptable in its current form, representatives of MODTLE (Mobilization on Develop- ment, Trade, Labor, and the Environment), the Fair Trade Cam- paign, and Citizen Trade Watch declared. "Unless this agreement is rewritten from the bottom up, from the preamble to the annex- es, it has virtually no chance of garnering support from major constituency groups, including family farmers, environmentalists, the religious community, labor, and consumer advocacy groups," said Thea Lee, an economist at the Economic Policy Institute. "And the Canadian and Mexican citizens' groups like it no better. They have expressed serious concerns about the agreement's potential impact on agriculture, financial services, and land transportation in their countries as well. This free trade agreement is a non-starter in all three countries." ON THE ENVIRONMENT: It is clear from the Dallas draft that the Bush, Salinas, and Mulroney Administrations have placed economic growth above all other concerns. The resulting trade rules rely solely upon "trickle down" benefits, anticipating that the subsequent in- creases in economic wealth will result in greater attention to environmental, health, and safety concerns. Experience has proven this is not SO. The current ecological disaster on the U.S./Mexico border is a painful reminder that economic growth alone does not automatically result in a cleaner environment. The few attempts NAFTA makes to protect natural resources are insufficient. ON AGRICULTURE: The agricultural provisions of the bracketed NAFTA text work against sustainable rural development and economically and envi- ronmentally sustainable agriculture. Among NAFTA's goals is "...raising efficiency through an increase in the scale of 1 JUL 28 '92 11:06 FROM TO 94566218 PAGE. 003/014 production." The text provides many opportunities for increased corporate concentration in agriculture through the elimination of import restrictions, lowered food safety standards, subsidies for exports, and domestic support programs that are not targeted to family farmers. ON POTENTIAL JOB LOSS: The Dallas draft is overly concerned with the rights of investors to move freely among the three countries, while it neglects to protect workers and communities from bearing the entire burden of these shifts. This agreement, as it currently stands, will cost the U.S. hundreds of thousands of manufacturing jobs, as U.S. companies move south to take advantage of ultra-low wages and relatively lax environmental standards in Mexico. "The only labor rights protected in this draft are those of investment bankers," charged Thea Lee of the Economic Policy Institute. "The draft leaves unchanged the immigration rights of workers, but liberalizes immigration rights for professionals and investors. The draft liberalizes trade in agriculture and manufactured goods, but actually reduces trade in goods that violate intellectual property regulations, like pirated software or sound recordings." [Intellectual Property, articles 2206, 2207] "It seems that it's all right to restrict trade when the goal is to protect profits, but not to protect wages," Lee said. ON NAFTA'S RELATIONSHIP TO GATT: Since the release of the Dunkel Text of the Uruguay Round of the General Agreement on Tariffs and Trade negotiations, environ- mental organizations have expressed their fears over the implica- tions of the proposed trade rules. Leading environmental organi- zations have opposed the text as written, including Sierra Club, Friends of the Earth, Greenpeace, and the National Resources Defense Council. NAFTA embraces the trade rules of Uruguay. There are more than 15 references to GATT in the NAFTA draft which indicates NAFTA's willingness to conform to unacceptable GATT rules. 2 JUL_28 '92 11:06 FROM TO 94566218 PAGE. 004/014 Note: The following sections represent detailed analyses of the Dallas draft, organized according to subject matter. The authors and contact persons are noted at the beginning of each section. DETAILED COMMENTS ON THE DRAFT ENVIRONMENTAL IMPACT Contact: John Audley, Sierra Club 202-675-6276 Early in the negotiations for Fast Track re-authorization, President Bush and his staff made it clear that environmental issues would not be part of the trade negotiations. Rather, environmental problems should be addressed in the context of independent multi-national agreements (National Journal, 3/9/91; pgs 585-586). As a result, the NAFTA draft has no environmental chapter, nor a commitment to environmental issues. Despite Administrative claims that these issues are independent, multi- national integration goes beyond financial relationships to include both the social and ecological natures of our three countries. By addressing these issues separately, the resulting trade policy either does not recognize its own impact on the environment, or cannot address the problems which can be seen. Without an environmental dimension, the draft NAFTA will seriously retard environmental progress. NAFTA fails to address the importance of balancing tri-national action to protect the environment and unilateral action to provide environmental nisms. leadership and overcome insufficient global enforcement mecha- We believe that the unwillingness of the three Administra- tions to link trade and environmental issues through comprehen- sive multilateral agreements is jeopardizing a unique opportunity to forge new, environmentally sustainable trade rules. Instead, the present draft forces environmentalists to oppose this trade agreement, unless fundamental steps are taken to de-couple it from GATT. The downward harmonization resulting from the required changes in domestic policy will put all of us at greater risk from ecological degradation. Unless the negotiators of the North American Free Trade Agreement begin to address the broad implications of trade, the United States, Canada and Mexico will miss a unique opportunity to forge truly comprehensive relationships to promote sustainable development. Trade policy is an intricate element of develop- 3 JUL 28 '92 11:07 FROM TO 94566218 PAGE. 005/014 ment; it is however not the only element of development, and NAFTA reliance upon "environmental trickle down" policy has resulted in a number of concerns for environmentalists: 0 NAFTA VIEWS ENVIRONMENTAL REGULATIONS AS "TRADE EXCEPTIONS" WHICH MUST BE JUSTIFIED NAFTA begins with the assumption that all trade is good, and that exceptions to expanded trade must convince all three coun- tries that the regulation is legitimate. Environmental regula- tions must first pass the test of international standards. In the absence of a generally accepted international agreement, environmental regulations must not prevail in the face of avail- able scientific evidence, must prove themselves to be the least trade restrictive, and must ultimately be tested against the objective of NAFTA: to have none, or at most minimal negative impact on trade. o NAFTA REDUCES HEALTH AND SAFETY STANDARDS The criteria established for acceptable restrictions to trade will ultimately reduce health and safety standards to the lowest common denominator. In addition, countries are asked to accept different standards as "equivalent" to their own, and allow products which have been exposed to pesticides or use unsustainable production practices into domestic markets for public consumption. When trade rules use harmonization as their primary tool to eliminate trade barriers, they promote attempts by Contracting Parties to reduce the higher standards of potential trading partners. This is especially true when, as in the case of the U.S. and Mexico, the more powerful partner has a reputation for arbitrary actions for which the less powerful country has been until now helpless to overcome'. This is precisely the area of contention with Mexico over the Marine Mammal Protection Act. Mexicans view the application of the maximum kill-ratio as an arbitrary act by the U.S. which ultimately blocks access to U.S. markets. First, the ceiling for kills is not based upon any scientific evidence, but rather a political compromise made during the negotiation of the Act. Second, Mexican tuna fleets do not know whether they have satis- fied the requirements of MMPA until after the harvest is over. And finally, Mexico feels it is helpless to overcome the action of the U.S. alone, because it is unable to impose countervailing sanctions on U.S. products, either because they cannot afford to risk retaliation, or because they are now signatories to the GATT, sanctions. which (at this point) does not allow for cross-product 4 JUL 28 '92 11:08 FROM TO 94566218 PAGE. 006/014 The real solution to harmonization lies in viewing the highest standard as the floor, not the ceiling, then developing trade policy which promotes upward harmonization. This is possible only when technology transfer and financial assistance are made conditions of trade, not just an option which parties may choose to employ at their discretion. If the technology is accompanied with adequate adjustment periods, the countries with the lowest standards could quickly move up the technology curve and compete at the higher standard. This, unfortunately, is not the case with NAFTA, as reflected in the bracketed language offered by Mexico in the Agriculture section. Besides automobiles,² Mexico offers Canada and the U.S. a tremendous array of agricultural products. However, Mexico employs older technologies to fertilize and protect its crops. Mexico still uses DDT, and in many parts of the country, uses untreated feces as fertilizer. Much of the reasoning for these practices is economic; changing to new technologies or using different fertilizing techniques would be more expensive, and Mexico currently lacks the resources to implement more modern agricultural methods. At the SAME time, Mexico's cultural values accept higher levels of risk in exchange for what are perceived to be benefits. Mexicans consume their own agricultural products using these methods. Therefore, when access is blocked to markets outside Mexico, markets that potentially hold the econom- ic keys to a better life, health and safety restrictions are seen as unwarranted. And, in the absence of a commitment to assist them move up the technology curve, Mexicans see no alternative but to attack the standards they view as unfair. More than the other two countries, the bracketed text in this draft suggests that Mexico wishes to rely on international agreements and agencies to determine acceptable levels of health and safety risk. Mexico also is seeking greater restrictions on the ability of sub-national governments to restrict market access (see Article 1203 and 1603 in the first section of the draft). Mexico's suggestions are focused on the "greatest feasible elimination of barriers to trade and subsidies" (AG, Article 510, para. 2), and have requested that, as of the date of entry into force of NAFTA, the U.S. will immediately eliminate import duties on an undisclosed number of fruits and vegetables (AG, Section c, The automobile and energy sections were not a part of the first draft. Their absence supports Ambassador Carla Hills contention that these two issues are still in the idea formula- tion stage, and not yet close enough to acceptance to be turned into a single text to be negotiated by the Parties. 5 JUL. 28 '92 11:09 FROM TO 94566218 PAGE. 007/014 Tariffs, para 33). Mexico's language on acceptable levels of agricultural grades and standards represents a strong desire for standard compatibility (AG, Article 505, Grades and Standards, para 2). In addition, Articles 506 and 507 request specific commitments to eliminate S&P access barriers and other technical barriers to agricultural exchange. o NAFTA RESTRICTS THE RIGHTS OF STATE AND LOCAL GOVERNMENTS By establishing more than four different supra-national committees, NAFTA removes the rights of sub-federal governments to serve the interests of their constituents. It creates an administrative process which has little or no public participa- tion and a dispute resolution process that only addresses commer- cial interests. States are prohibited from purchasing products and services from local suppliers, and from taking any steps which would put them at odds with the objectives established by NAFTA. Many of our most widely accepted environmental regulations began with the action of a single state, which enacted standards higher than those used by the other states and often exceeded the scientific evidence available at the time. California fuel emission standards paved the way for higher emission standards for all cars; their push for zero pollution-producing cars may also be precursor to new and tougher national environmental standards. In a federal system of government, sub-national entities often act as the "incubator" for new policies, which are subsequently implemented at the national level following an adequate review and evaluation period4. A balance must be sought, therefore, between the desire for multilateral agreements and national sovereignty while we look forward to a time when environmental values are as important as economic gains. That day has not yet arrived, but it appears that the drafters of this NAFTA assume it has. ³The fruits and vegetables have not yet been determined, or were not a part of the draft available. They are described in annex FV1) 4Morton Grodzins, "The Federal System", in Nivola and Rosenblum, edt. Classic Readings in American Politics, (New York: St. Martins Press, 1989). 6 JUL 28 '92 11:09 FROM TO 94566218 PAGE. 008/014 NAFTA'S IMPACT ON AGRICULTURE Contacts: Karen 612-379-5980 Lehman, Institute for Agriculture and Trade Policy Kathy Ozer, National Family Farm Coalition 202-737-2215 determine where and how people will Live, the way land is held Trade and agriculture policy are social policy. They and worked, and the number and sizes of enterprises that contrib- ute to food production and processing. Trade and agriculture policy can contribute to a regenerative strategy for rural community development, but they can also undermine it. The text attempts to accomplish the objectives of the Uruguay Round of the GATT negotiations in relation to agricul- ture, whether or not the GATT is ultimately approved. This text threatens the Meat Import Act and Section 22 for the U.S., the continuation of supply management for eggs, poultry, dairy and wheat in Canada, and remaining protection for Mexico's most important domestic crop, corn, through the elimination of import restrictions. It supports tariffication of domestic support programs. It affirms the decoupling of financial support to farmers from production, thus establishing farmers as the next population to be defined as welfare recipients. And it proposes tion. This will make the current GATT definition, unfortunately a new definition of export dumping based on the price of acquisi- unenforced, which defines export dumping as sales at prices below defend. the cost of production, even more difficult to enforce and Furthermore, the draft fails to address the disparities between the three countries' economies and forms of agriculture. As a developing country with a radically different agricultural context from that of the U.S. and Canada, Mexico requires some special adjustment assistance for its farmers if they are to survive in these rapidly integrating economies. Such programs could include supporting Mexican farmers to establish and streng- then local markets for their products, managing supply through import restrictions on products of national importance, providing technical assistance to improve food safety, improving transpor- tation for remote communities, and so on. Such strategies should form part of an overall plan to regenerate the Mexican country- productive infrastructure. side following three decades of decapitalization and decay in the Instead, Mexico's proposals for preferential treatment are not targeted to Mexican farmers, but instead will provide tremen- dous subsidies and special incentives for transnational agribusi- ness. Far from stemming migration and strengthening rural commu- 7 JUL 28 '92 11:10 FROM TO 94566218 PAGE. 009/014 nities, Mexico's domestic agricultural reforms coupled with these trade provisions will accelerate land concentration and conse- quent migration to urban areas, especially the United States. Only once in the draft are Mexico's lowest income family farmers targeted for assistance. All other exemptions and support programs proposed by Mexico could benefit anyone operating on Mexican soil. Specifically, transnational corporations -- whether based in Japan, Europe, or the United States - could benefit from the immediate elimination of tariffs on some fruits and vegetables, subsidies for international and domestic transportation of export products, subsidies for upgrading and processing, investment subsidies generally available for agriculture, and a noncounter- vailable domestic support level for exports at 30% product value whereas the U.S. and Canada would be limited to 58. In addition, Mexico is seeking various forms of Ieniency in the structure and application of sanitary/phytosanitary requirements including longer time-frames for entering compliance. Thus family farmers in the U.S. and Canada, faced with the erosion of their supply management and domestic support programs, would have to compete with transnational agribusinesses masquerading as disadvantaged Mexican farmers requiring development assistance. 8 JUL 28 '92 11:11 FROM TO 94566218 PAGE. 010/014 ON DEVELOPMENT, DENOCRACY, AND SOVEREIGNTY Contacts: Karen 202-898-1566 Hansen-Kuhn, Development Group for Alternative Policies Lori Wallach, Public Citizen 202-547-7392 If implemented in its current form, this agreement would preempt the ability of citizens to determine appropriate stan- dards and levels of protection in such areas as the environment, consumer product safety and labor rights through their local and national governments. According to the draft Language on market access, provinces or states would have to provide "treatment no less favourable than the most favourable treatment accorded by any such province or state" to any like goods. This rule means a state cannot create incentives or rewards for particular economic beyond thenon-discrimination rules required under the Commerce or social policies within its own territory. NAFTA thus goes Clause of the U.S. Constitution. A second issue limiting state sovereignty involves the this definition relates only to product specifications and not definition of a "like product." According to the NAFTA draft, the process under which products are manufactured or produced. Thus, should the draft remain unchanged, it would preclude any of goods produced under conditions unacceptable to its government government from enacting laws that would prohibit the importation numbers of dolphins. This, in turn, would place local producers and citizenry, such as tuna caught by methods that kill large local standards and regulations. in at less competitive position and thus put downward pressure on Another threat to democratic process contained in the NAFTA draft is the empowerment of supranational commissions to judge laws and decide if such democratically achieved laws can be panels are only empowered to judge whether such laws discriminate maintained under the rules set out in NAFTA. Theorstically, such against foreign producers. However, NAFTA defines discrimination labor rights, human rights, and other social laws. Thus, NAFTA in such a way as to encompass numerous environmental, consumer, would allow Mexico or Canada to challenge U.S. food standards unfair trade practices. The NAFTA dispute resolution process as could ultimately declare that such laws must be eliminated. affirmed by the United Nations' 1986 resolution. The three each country and its people their "Right to Development," as Furthermore, NAFTA, as constituted in the draft, would deny governments have failed to agree to recognize in the document that differences exist among the levels of development of the 9 JUL 28 '92 11:11 FROM TO 94566218 PAGE. 011/014 their countries, much less to acknowledge the right of Mexico, as the least developed, to protect key sectors and industries. While the document indicates that the United States is seeking protection in areas of national security, such as certain weapons systems, there is no indication that similar treatment for other areas of national priority, such as energy and food security, as well as infant industries, is intended. Finally, the dispute settlement provisions in the Dallas text of NAFTA violate basic democratic principles. The process is secretive and relies upon national officials and trade experts to determine acceptable exceptions to trade. The NAFTA draft would allow disputants to take their cases to GATT for dispute resolution despite the fact that GATT rules are non-transparent and allow for automatic implementation of panel decisions and application of sanctions for non-compliance. Citizens have little or no access to either the process itself, or to serve as litigants in potential disputes. Not only do the dispute settle- ment proceedings take place in private, but their results may be made known only to the parties filing complaints. The preamble of the draft text of the Agreement lists as goals of a NAFTA enhanced productivity, full employment and a steady improvement in living standards in the three countries. These goals are not reflected, however, in the body of the draft Agreement. Nor are the recommendations of citizens' groups and legislators concerned that a NAFTA will, in fact, benefit only a small, privileged minority in each country. To the contrary, the text emphasizes the importance of lowering barriers to commercial activity and to building on the U.S.-Canada Free Trade Agreement, despite the fact that that agreement, by so lowering barriers, has caused the loss of hundreds of thousands of Canadian jobs and is now a key factor in the political discord in Canada. This draft of the NAFTA contains many brackets around issues and language on which full agreement had not yet been reached. The negotiators claim that they have made significant progress since the draft was written. We therefore call on the negotia- tors to democratize the drafting of this Agreement by sharing with the public and our legislators the current draft of the NAFTA so that the peoples of all three countries can intelli- gently inform the preparation of a document that will have a profound impact on the future of all of us. 10 JUL 28 '92 11:12 FROM TO 94566218 PAGE. 012/014 CORPORATE RESPONSIBILITY/INVESTMENT RULES Contacts: John Cavanagh, Institute for Policy Studies 202-234-9382 Thea Lee, Economic Policy Institute 202-775-8810 The investment section of the draft, although heavily bracketed, lays out the framswork for the further liberalization of investment rules for corporations of the three nations. The basic principal that is enunciated is that a corporation from one of the three countries should be able to operate freely and without discrimination in the other two countries. This includes freeing rules on ownership of companies, management, repatriation of profits (the draft includes only a. brief and very vague list of reasons why a country could restrict investments). While this liberalization framswork sounds nice in theory, it can be highly destructive of communities, worker rights, environmental standards and the general well-being of people unless it is accompanied by the following provisions: Protection of basic rights: In accordance with United Nations' principles, the people of each nation also have the right to preserve local efforts at achieving viable communities, sustainable and subsistence agri- culture, and food self-reliance and food security for all citi- zens. For a variety of cultural, economic and social reasons, the peoples of one area should maintain the right to reject corporate incursions that are destructive of their communities and cultures. We also recognize that indigenous peoples in all three countries have the right to manage and sustain their own resources and to shape their own economic destiny. Protections against dislocations: Further liberalization of investment rules is an invitation for firms based in Canada and United States to continue to threaten workers with relocation south of the border unless workers agree to wage and benefits cutbacks. Already the big three auto makers have announced job outbacks in Canada and the United States and expansion plans in Mexico. The President of Ford Mexico estimates that Mexico's output of cars will rise from one million to two million by the year 2000 in the absence of a NAFTA and to three million with a NAFTA. The current draft treaty creates a framework that is ideal for the bottom line of large U.S. companies but one that is highly destructive of community well-being. Provision for termination of agreement: 11 JUL 28 '92 11:13 FROM TO 94566218 PAGE. 013/014 In the event that any one of the three nations chooses to terminate NAFTA, the United States is proposing that the provi- sions contained in the investment chapter continue to remain in force for an additional ten years [Investment chapter, p. 1]. This would effectively lock all three governments into any liberalization of investment laws that NAFTA would require, protecting the value of foreign investment, even in the case of a dramatic change in government in any of the countries. This proposal by the United States reveals clearly that the purpose of this agreement is to protect the profits of investors, at the expense of decision-making power by elected governments. Safeguards: The U.S. has bargained away key powers for workers and trade unions in the course of these negotiations. In the January draft of the text, which is labelled the Georgetown composite, the U.S. had put forth a position which allowed workers, either as a group or in a certified trade union, to have "standing" to file a safeguard petition or complaint, in addition to firms and trade associations. (Under Section 201 of current U.S. trade law, workers also have this right.) Safeguard petitions are filed in the event that imports surge into a country after the signing of the agreement. These petitions allow the injured country to restrict trade temporarily under certain conditions. One month after the Georgetown text was completed, the U.S. negotiators had apparently dropped the language that allowed workers as well as firms to bring safeguard cases. This demonstrates that the U.S. strategy is to baryain away workers' rights early on in the negotiating process. It indicates that pro-labor positions are on the table only to serve as bargaining chips. and not as a genuine strategy. Rules of origin: A key area of conflict is clearly the chapter on "rules of origin,' which attempts to define which goods are eligible for the benefits of the free trade area. All three countries would agree that a car produced in Japan and exported to Mexico, for example, should not be able to cross the U.S. border duty-free and exempt from quotas which would normally apply to a Japanese export into the United States. What about a car produced in Mexico completely from Japanese parts, though? The bracketed sections of this chapter show that Canada and Mexico are pushing for weaker versions of the rules of origin, while the United States wants strong rules in this area. This difference arises because Mexico and Canada are interested in attracting foreign direct investment, in part at least to produce goods for export to the United States. The United States, on the other hand, wants to limit the advantages of the agreement to corporations based in the three North American countries. As of the Dallas draft, none of the countries had yet agreed on what percentage of at good would need to be produced in North America for the good to qualify for reduced tariffs and quotas. 12 JUL 28 '92 11:14 FROM TO 94566218 PAGE. 014/014 Mobility of People: The negotiators of the agreement have always claimed that a NAFTA will only address the flow of goods, services, and invest- ment among the three countries. USTR Carla Hills stated flatly at the outset of the negotiations that immigration was "off the table." Yet the draft text suggests a different agenda with respect to the flow of people across borders. One entire chapter is devoted to "Temporary Entry of Business Persons," wherein the rights of business people to move between the countries, espe- cially those "seeking to carry on substantial trade," are spelled out in detail. However, nowhere in the text are the labor rights of millions of immigrant workers even mentioned. 13 DRAFT KEY POINTS ON NAFTA: PRE-AGREEMENT IN FINAL THE NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA) BUILDS ON THE PRESIDENT'S POLICY OF GENERATING GROWTH AND GOOD JOBS THROUGH TRADE Since the Bush Administration took office, the U.S. has regained its position as the world's No. 1 exporter, with $422 billion in exports supporting 7.2 million jobs in 1991. : Export-related jobs pay 17% more than the average US job. THE NAFTA WILL CREATE ONE OF THE WORLD'S LARGEST FREE TRADE ZONES The NAFTA will link the US to our first and third largest trading partners, Canada and Mexico. Booming US exports of goods and services to Mexico already support 600,000 jobs at home, chiefly in manufacturing: -- Exports to Mexico have almost tripled since 1987, to an est'd $44 bn (est'd $8-9 bn surplus) in 1992. Moreover, 85% of US exports to Mexico are manufactured goods. U.S. exports to Canada were $85 bn in 1991; the 1988 U.S.- Canada Free Trade Agreement has paid off, and so will NAFTA. NAFTA will increase U.S. exports to Mexico and Canada by: Eliminating tariffs on industrial and agricultural goods made or grown chiefly in the US, Mexico, and Canada. Mexico's tariffs are currently two-and-a-half times higher than ours; Opening Mexico's $146 billion services market for U.S. telecommunications companies, banks, insurance firms, law and accounting firms, and transport companies. NAFTA will also improve access to Canada's $285 billion services market; Lifting restrictions on companies (investment) in Mexico, thus freeing manufacturers to import components from US firms; and Removing other trade barriers, such as Mexico's barriers to US agricultural exports of corn, livestock, oilseeds, etc. NAFTA WILL ASSURE A SMOOTH TRANSITION FOR SENSITIVE INDUSTRIES BY: Giving sensitive sectors time to adjust to full competition by gradually phasing out tariffs and by providing a safeguard against injurious import surges; and through Tough rules of origin to prevent non-NAFTA countries shipping products through Canada or Mexico to take advantage of NAFTA. The Administration is also working with the Congress to create an effective, adequately funded worker adjustment program. DRAFT NAFTA WILL ENHANCE ENVIRONMENTAL PROTECTION In NAFTA, we seek language that will promote sustainable development and will encourage parties to respect and enhance the enforcement of environmental laws and regulations. We seek environmental provisions that would: Safeguard existing U.S. health, safety, and environmental standards, and permit NAFTA parties to deny entry to goods not meeting those standards; Permit NAFTA parties to restrict trade in endangered species and to take other steps pursuant to international environmental accords; and -- Rules allowing states and cities in NAFTA countries to enact tougher standards to address specific concerns. Environmental Ministers have already been cooperating in advance of NAFTA, for instance in developing the Border Plan for the Environment. Mexico has pledged $460 million over three years and we have committed $241 million in FY 1993 to clean the border's rivers, ground water, air, and solid waste. NAFTA-LED GROWTH WILL HELP IMPROVE THE ENVIRONMENT, REDUCE EMIGRATION, AND UPGRADE BORDER INFRASTRUCTURE O NAFTA-led growth in Mexico will create more resources for environmental protection. Studies show that as a nation's GDP grows, so do its pollution abatement efforts. NAFTA-led growth will diminish pressure to emigrate to the US by creating new jobs and higher wages for Mexicans at home. NAFTA has focussed attention on critical infrastructure needs at the border; the US and Mexico are building bridges, improving crossing points, and upgrading border facilities. THE ADMINISTRATION WILL WORK CLOSELY WITH CONGRESS TO IMPLEMENT NAFTA so THAT THE AMERICAN PEOPLE CAN BENEFIT AS SOON AS POSSIBLE The NAFTA will be considered under "Fast Track" voting procedures, which means Congress must vote 'yes' or 'no' and may not add amendments. It is possible for the President to sign the NAFTA this year. However, given the Congressional calendar, it is unlikely that Congress will vote on the NAFTA until early- to mid-1993. USTR DRAFT 7-21-92 DRAFT JUL 23 92 16:54 FROM US TRADE REP PAGE. 003 Calmaquip Engineering Corporation Miami, Florida "We feel that with the lifting of trade restrictions, Mexico is becoming a lucrative market for our products and services. We are now pursuing Mexican market opportunities extensively. We see a significant growth potential in both the short and long term for the Mexican market. Our other markets don't show the same prospects for stable growth that we see in Mexico." Jorge Portela Vice President of Operations Calmaquip Engineering Corporation, a minority-owned firm in Miami, Florida, specializes in airport, health care, and institutional facility projects. Calmaquip provides a unique combination of engineering know-how, equipment procurement, installation, service, and financing expertise to clients abroad. Seventy employees in the U.S. are supported by ten branch offices in Mexico, the Caribbean, South America, Europe, and the Middle East. Calmaquip has worked extensively with the Export Import Bank of the United States (EXIMBANK) over the past thirty years in Mexico. Jorge Portela, Vice President of Operations, says that with the help of Eximbank and other commercial bank aid, Calmaquip has built the majority of the air traffic control communication facilities in Mexico. In 1981 Calmaquip opened a branch office in Mexico City to serve the market better and expand sales. Portela estimates that sales to Mexico have exceeded $12 million over the past eight years. Ninety-five percent of the equipment Calmaquip sold to Mexico over that same period was of U.S. origin. The bulk of Calmaquip's past sales to Mexico have been to the airport facilities industry. Presently, Calmaquip is seeking new projects in the Mexican health care sector. Modern Construction Inc. Laredo, Texas *Our business is successful because Mexican customers are realizing that it's cheaper to build the buildings in the U.S. and transport them to Mexico than to try to build the building in Mexico." Ruben Garcia President Modern Construction, a Texas-based general contractor with $10 million in annual sales, currently exports about $500 thousand worth of prefabricated buildings to Mexico. Given their past success in the Mexican market, the Hispanic-owned company expects sales to increase ten-fold within the next two years. The buildings are supplied by a company in Lafayette, Louisiana. JUL 23 92 16:55 FROM US TRADE REP PAGE. 004 07. 23. 92 05:14 F IMI Textile Machines Imports Exports Co. Roebuck, South Carolina "The advantage of doing business in Mexico Is # is very close. It's a lot simpler geographically in terms of shipments and visiting clients." Victor Lebron President and Owner Victor LeBron, President of Textile Machines Imports Exports Company has been exporting textile machinery to Mexico for 18 years. The minority-owned company employs 20 people who rebuild textile machinery for export. LeBron sells to other Latin America countries and in Asia, but Mexico represents his largest export market accounting for 20 percent of his $4 million in annual sales. LeBron intends to aggressively increase sales to Mexico over the next year. Well known in the Mexican textile manufacturing industry, he is planning on spending more time in his closest export market. Cal-State Lumber Sales, Inc. San Ysidro, California "Mexico has allowed us to remain competitive. Because of supplier contracts with two Mexican firms in Tijuana, sales have increased by 700 percent and U.S. employment by 30 percent. Everything we purchase, from lumber to equipment, is U.S.- made. We buy lumber from several mills; our purchases have helped the mills keep U.S. workers on the job." Mary Alice Acevedo Director of International Relations Based in San Ysidro, California, Cal-State Lumber Sales, the largest Hispanic-owned business in the state, has increased total sales of wood products from $14 million in 1989 to $138 million in 1991. More than $84 million of 1991 sales were to Mexico. The 90-person company is a broker of wood products to Mexico and a broker of finished molding and millwork products from Mexico to the United States and Canada. Total sales are estimated at $190 million in 1992, of which $110 million are projected to be sales in Mexico. Cal-State purchases processed lumber (i.e., plywood, particle board) from suppliers in Northern California, Oregon, Washington, and Arizona. The unfinished lumber products are sent to Tijuana and turned into finished wood products that Cal-State buys back and sells throughout the United States and Canada. JUL 23 '92 16:56 FROM US TRADE REP PAGE. 005 3-G Electric Supply, Inc. Laredo, Texas "I always had trouble picking up prestigious product lines, but now with Mexico, I'm able to sell those lines out of Laredo instead of referring my customers to larger distributors. The Mexican market makes me better able to compete with larger distributors." Adolfo Gutierrez President and CBO Laredo-based 3-G Electric Supply, Inc. is an electrical supplies and systems distributor and installer with annual sales of $3.5 million. Ninety percent of the products 3-G distributes are manufactured in the U.S. The minority-owned company's labor force has grown from two to fourteen as a result of the growth in commerce with Mexico. The added sales volume resulting from the company's Mexican success has attracted more prestigious suppliers and allowed 3-G to expand its product line. E & G Food Company Miami, Florida "We are looking for a more diversified customer base and expanded operations in Mexico. We see new opportunities to significantly increase our business relationships there." Carlos V. Perez Export Manager E & G Food Company sold $70 million of fresh and frozen food through its import/export and nationwide distribution channels last year. The Hispanic-owned company employs 95 people and exports to Mexico, Latin America, and the Caribbean. Carlos V. Perez, Export Manager at B & G, decided to enter the Mexican market just three years ago. Today, Mexico represents 10 percent of E & G's total export sales. Since their initial contact in 1989, E & G's exports to Mexico have grown by 15 percent. Perez says that strong export growth created three new jobs at E & G last year. JUL 23 '92 16:56 FROM US TRADE REP PAGE. 006 JEFA International, Inc. Plano, Texas "The Mexican market offers endless opportunities, not only in higher technology areas such as ours, but in many others as well." Dan Fernandez Director, Latin American Marketing Texas-based JEFA International is a Native American-owned radio telecommunications service provider with annual sales of $8.5 million. In addition to providing equipment for the telecommunications industry, the company provides a full range of engineering and technical services. JEFA recently won a multi-million dollar, multi-year contract with Teléfonos de México's Telcel cellular company to engineer and install the cellular microwave interconnect system for several Mexican cities. The agreement will allow JEFA to increase the number of its U.S. employees by 10 people in 1992 and an additional 12 people in 1993. RJM International Los Angeles, California "The linkages between the United States and Mexico that already exist demonstrate the kind of benefits both countries can realize through greater commerce. I have seen it first-hand." David Estrello Managing Director RJM International is a Hispanic-owned international management and environmental consulting firm based in Los Angeles. The firm provides services to U.S. companies doing business in Mexico, as well as to Mexican companies doing business in the United States. David Estrello, Managing Director at RJM, is projecting $500,000 in revenue from Mexican businesses for 1992. RJM International's services include arranging joint ventures and strategic alliances, market research, taxation planning, capital development, financial management, and strategic planning. The company is a division of RJ Miranda & Company, an accounting and consulting firm. RJM International has offices in Los Angeles and Orange County, California, Washington D.C., and Mexico City. JUL 23 '92 16:57 FROM US TRADE REP PAGE 007 Dantzier Lumber and Export Co. Miami Lakes, Florida "We expect sales into Mexico to Increase by 10 percent or more in the upcoming year. My last sales trip to Mexico City was a great success." Joe Sala Export Sales Manager Dantzler sold over $300,000 worth of yellow pine lumber and plywood in Mexico during 1991, the company's first year in the market. Dantzler, a minority-owned lumber company, employs 40 people with annual sales of $30 million. Export sales manager, Joe Sala, views Mexico as the top export market for Dantzler's Alabama, Georgia, and Louisiana grown softwoods. Sala has taken a direct sales approach by traveling to Guadalajara, Mexico City, and Merida this year. Common language and culture have enabled Sala to penetrate the market on his own and bypass distributors. International Microtronics Corp. Tuscon, Arizona "NAFTA is potentially beneficial for all countries involved. The positive lessons from European integration show the benefits of free trade." Dr. Otto Fest Chief Executive Officer International Microtronics Corporation (IMC) is a minority-owned manufacturer of process control instrumentation. Chief Executive Officer, Dr. Otto Fest, credits Mexico with 11 percent of IMC's $2.5 million in sales during 1991. Dr. Fest's 18 person company has been exporting process controls to Mexico for three years. IMC currently manufactures all its products in Tuscon, Arizona, and Dr. Fest is interested in setting up a maquiladora operation to expand production capacity. JUL 23 '92 16:57 FROM US TRADE REP PAGE 008 M.J. Carrillo Company, Inc. Laredo, Texas "We help make the process of Importing and exporting go smoother. Mexico holds great opportunities for companies like ours, as well as those wishing to export their products." J.J. "Oscar" Carrillo President Established in Laredo in 1944, M.J. Carrillo Company is a family-owned customs brokerage house with annual revenues of $1.8 million. Hispanic President, J.J. Carrillo, generates 100 percent of his revenue from Mexican business. Increased trade with Mexico has prompted the company to add eight employees to its workforce over the last few years. The company expects to grow by 30 percent in the near future. Mentra Labs Inc. Miami, Florida "Mexico has advantages over our other export markets. closeness, stability in the economy, strong identification with our products and industry, and a clear understanding of the latest technologies. Mexico is more up to date than other Latin American countries. Juan A. Ortiz Director of Marketing for Latin America Mentra Labs is a minority-owned export management company for medical, laboratory, and hospital supplies. Mentra Lab's six person staff exports to Mexico, Latin America, the Caribbean, and the Middle East. Juan A. Ortiz, Mentra's Director of Marketing for Latin America, decided to enter the Mexican market two years ago. Mexico accounted for 15 percent of Mentra Lab's $2.6 million in export sales during 1991. Ortiz says that the market for health care equipment in Mexico is highly competitive but offers excellent opportunities for growth. JUL 23 '92 16:58 FROM US TRADE REP PAGE 009 Proin Inc. Los Angeles, California "Mexico is one of our key areas... being bilingual helps.' Jim Ruiz Vice President Proin Inc. is a Los Angeles, California manufacturer's representative for American-made food processing and packaging machinery. The Hispanic-owned company employs four people and currently exports to Mexico, Latin America, the Caribbean and the Philippines. Last year, sixty percent of Proin's $1 million in sales came from exports to Mexico. Jim Ruiz, Vice President at Proin, has been able to leverage his knowledge of Hispanic language and culture to capitalize on market opportunities in Mexico and Latin America. Proin's specialty is vegetable oil extraction machinery. Ruiz says that with sales to the U.S. vegetable oil industry in decline, Proin has been able to maintain sales growth by cultivating Mexico. the market in Mexico. Ruiz also expects continued growth from after sales service in El Centro Electronics Company, Inc. McAllen, Texas "We would never have been able to expand or thrive without our Mexican customers. In the future we're hoping to increase sales to Mexico by 20 percent per year." Armando G. Ybarra Partner El Centro Electronics is a McAllen, Texas-based audio and video equipment distributor and exporter with $800,000 in sales to Mexico. The minority-owned company began in 1987 with two employees and has since hired five new people, due largely to its success in exporting to Mexico. Eighty percent of El Centro's $1 million in annual revenues come from Mexican customers. JUL 23 '92 16:58 FROM US TRADE REP PAGE 010 Chuls Lumber Corporation National City, California "I believe 100% in a North American Free Trade Agreement. It will help open up the market and unlock tremendous opportunities there." Trino Gonzalez President and Owner Chula Lumber Corporation's Hispanic President, Trino Gonzalez, has been exporting to Mexico since 1964. His seven person company sold nearly $2 million worth of American grown lumber, plywood and construction supplies to Mexico last year. Chula relies on Mexico for 95 percent of annual sales revenue. Gonzalez predicts that sales of lumber and construction supplies will increase by 25 percent in Mexico next year. Gonzalez credits his 28 years of success in Mexico to the long term stability of the market. Cavazos Wholesale Company, Inc. Laredo, Texas "Our workforce has doubled since 1987, and half of that growth is @ direct result of our sales to Mexico". Laura Cavazos Zepeda Company Spokesperson Cavazos Wholesale Company of Laredo distributes fruits, vegetables, candy and related products to the U.S. and Mexican market. Current sales for the minority-owned company are $8.5 million, with 50 percent of revenues coming from sales in Mexico. All of the products Cavazos' distributes are made in the United States. In 1987, the company had 20 employees, but has since added 20 more to keep up with the growth of sales in the U.S. and Mexico. Almost all of Cavazos' employees speak Spanish, which has helped the company eliminate the need for middlemen in its dealings with the Mexican market. BORDERING ON THE FUTURE: CONTINENTAL FREE TRADE By: Robert B. Zoellick¹ Some have asked whether the North American Free Trade Agreement, particularly our negotiation of a free trade agreement with Mexico, is motivated by foreign or by economic policy interests. My answer is yes and yes. Economic policy is and must become an increasingly critical component of the United States' foreign policy strategy. That is why this free trade agreement is so important: It is a rare strategic opportunity to secure, strengthen, and develop our continental base economically and politically in a way that will promote America's foreign policy agenda, our economic strength and leadership, and U.S. global influence. The North American FTA would increase sales opportunities for U.S. firms, improve their operating efficiency, increase real income in the U.S., create jobs, and spur growth in all three nations. Our neighbors' growth multiplies benefits for the United States. For each dollar of growth in Mexico, 14 cents is spent on U.S. goods. As Mexico grows more, it will import more. Seventy cents of each Mexican import dollar is spent on goods from the United States. This is an important point: Trade is not a "you win, I lose" proposition. By generating growth, trade multiplies the purchasing power of our trading partners. Of course, Mexico's economy is relatively small compared to that of the United States. Its GDP, approximately $280 billion, is about the same as Illinois. Because Mexico's economy is only about 1/20th the size of the U.S. economy and its exports only amount to about 6 percent of U.S. imports, the scare stories of mass dislocations from reducing barriers simply are not credible. Moreover, the factual record since 1986, when Mexico began a major opening of its economy, tells a very encouraging story. U.S. exports to Mexico have increased from $12.4 to $33.3 billion, making Mexico our third largest export market. of this total, U.S. manufacturing exports increased from $10.4 to $26.7 billion, almost twice the rate of our overall growth in manufacturing exports during this period. Consumer goods exports tripled from $1 to $3 billion. Agricultural exports jumped from $1.1 to $2.8 billion, making Mexico our third largest customer in 1991. Exports of autos and auto parts more than doubled. Exports of telecommunications equipment doubled. In fact, we now have surpluses in steel and textiles. 1 Robert Zoellick is Counselor of the Department of State. This piece is excerpted from his April 11, 1991 statement before the Senate Foreign Relations Committee. Data have been updated as of July 22, 1992. Our bilateral trade deficit shifted from $4.9 billion in 1986 to a $2.7 billion surplus in 1991 that is projected to approach $9 billion by year end. Our exports to Mexico may reach $44 billion in 1992, placing our exports to the Mexican market at almost the same level as these to Japan. NAFTA will create good jobs at good wages. Independent studies suggest it could create between 64,000 and 240,000 new U.S. jobs. Because our trade-weighted tariff for Mexican goods is only about 3-4 percent (45 percent of Mexico's goods already come in duty free), we can use NAFTA to slash Mexico's higher barriers and lock in the new market openings. And it's useful to note for the record that past dire warnings about losses from. reducing U.S. barriers turned out flat wrong: for example, after the Caribbean Basin Initiative opened our markets, we turned a $200 million deficit with these nations in 1986 into a $6.1 billion surplus in 1991. Jobs don't flee to places just because wages are lower. If they did, I imagine Haiti -- which has the benefit of duty-free entry into the U.S. under CBI for many products -- would be the manufacturing center of the world. The economic integration spurred by the FTA should make U.S. firms more competitive globally. Japanese firms have grown stronger by sourcing components in Asia. EC firms are doing the same with inputs from Southern Europe. Integrated operations that produce or assemble parts in Mexico can help our higher-wage workers in the same way. We even could expect a bonus because Mexican workers will buy more from us. It would be extremely short-sighted to permit lower value-added jobs to shift to locations that strengthen export machines in Japan and Europe. And we should be mindful of the boon to U.S. exporters that would come from U.S. firms shifting their production in Asia closer to our backyard: U.S. subsidiaries in Mexico buy 46 percent of their components from the United States, while U.S. subsidiaries in Asia buy just 14 percent of their imports from the United States. Worker readjustment can be addressed through a long transition period, safeguard provisions, and the program under the 1988 Economic Dislocation and Worker Adjustment Assistance Act. EDWAA, funded at $540 million in 1992, will have served approximately 750,000-800,000 workers in its first three years, achieving a placement rate of about 66 percent. If we send a signal to the Mexican people that we intend to reject their historic opening to North America -- if we say trade agreements with the U.S. are fine for Israel, Canada, and multilaterally, but not for Latins -- I could see Mexico's return to autarky and protectionism. In 1933, FDR charted a new course with Mexico through his Good Neighbor Policy. About 30 years later, another new President, JFK, called for an Alliance for Progress with Latin America. Now, another 30 year later, we have the opportunity to sustain and invigorate that vision. This generation, on both sides of the border, could integrate North America in a way that will build a foundation for stronger cooperation on diverse issues: economics, environment, energy, labor narcotics, education, and immigration -- to name a few already on our common agenda. NAFTA SOURCE BOOK I. OVERVIEW TAB - General Talking Points on NAFTA 1 - U.S.-Mexico Relations 2 - Why NAFTA: North America Trade Relationship 3 - May 1 Commitments Met 4 - Summary of Changes in U.S. Law 5 - Legislative Next Steps 6 II. EXECUTIVE SUMMARY OF NAFTA AGREEMENT III. FACT SHEETS ON NAFTA AGREEMENT - Agriculture 1 - Automotive Sector 2 - Dispute Settlement 3 - Duty Drawback 4 - Energy 5 - Financial Services 6 - Government Procurement 7 - Insurance 8 - Intellectual Property 9 - Investment 10 - Land Transportation 11 - Market Access 12 - Rules of Origin 13 - Safeguards 14 - Sanitary and Phytosanitary Measures 15 - Services 16 - Standards 17 - Telecommunications 18 - Temporary Entry 19 I Textiles and Apparel 20 - Trade Remedies 21 IV. LABOR - Jobs and Adjustment 1 - Worker Adjustment Program 2 - Implementation of 1991 MOU 3 - Long-Term Cooperation 4 V. ENVIRONMENT - NAFTA Environmental Overview 1 - Environmental Review 2 - NAFTA Environmental Provisions 3 - U.S. -Mexico Border Plan 4 - Parallel Track: Longer Term Cooperation 5 VI. OTHER ISSUES - Mexico's Anti-Corruption Campaign 1 - Mexico's Anti-Narcotics Campaign 2 - Border - Diminished Violence 3 - Border - Economic Development 4 - Mexico's Changing Relationship with Cuba 5 - Human Rights 6 - Immigration 7 - Maquiladoras 8 - Political Reform and Democracy 9 - Protecting Marine Wildlife 10 - [NAFTA and CFTA] 11 VII. NAFTA AND THE STATES - [State and Regional Breakdowns of Exports to Mexico and Canada and Jobs Dependent Thereon] VIII. QUESTIONS AND ANSWERS - General 1 - Environment 2 - Labor 3 - Immigration 4 - The Border 5 IX. BUSINESS INFORMATION ABOUT MEXICO - Commerce Department Flash Facts System 1 - National Technical Information Service 2 - National Trade Data Bank 3 FACT CHECK COPY (Duggan/NixY/Wälters Walters July 23, 1992 Draft One HB PRESIDENTIAL REMARKS: HISPANIC BUSINESS LEADERS Dayole THE ROSE GARDEN THE WHITE HOUSE TUESDAY, JULY 28, 1992 9:30 A.M. From [Acknowledgments] Welcome to the White House. Jesus and [Chavarria, publisher of Hispanic Business], thanks for Hispanic Business your leadership in bringing together so many dynamic women and mag. men from Hispanic-owned businesses. You enliven this country, you're keeping America great -- each one of you. 11 Your dreams and your hard work animate every kind of 38-39 industry all across this country. There's Irma Elder from FiBC Shree Michigan whose thriving business is -- what else -- selling cars. HBC checking There's Frank Flores from the printing industry in New York. And pg 56 Shiru Rick Rendoza Benjamin Acebedo, with a lumber company in California. And pg52HBc executives from the largest minority-owned bank in the United t Pg 48 HBC 48 pg States -- the Sanchez family's IBC in Laredo, Texas. CHANGE We're together today because we believe in the future -- and we know how to get there. Our future depends on freedom. Freedom works. Freedom is right. 11 All around the world, dictatorships are giving way to democracy. Command-and-control economies are falling on the ash heap. As never before in the history of the world, people are free to think and to speak -- free to live and work and worship as they wish. They're choosing new governments that respect people's freedom to buy and to sell and to create. 11 In the Western Hemisphere, freedom's tide has never been 2 higher. If I may make a prediction, that tide will soon drown Latin America's last dictatorship -- the Castro regime. And on the crest of that tide will rise a new democracy in Cuba. 11 Here at home, we're renewing the freedoms that foster new thinking and create new jobs. I'm overhauling the entire system of federal government regulation. This year alone, I've directed an unprecedented cutback of controls and red tape that have no place in a free society. [details with impact on jobs and consumers] I'm fighting to halt the epidemic of lawsuits -- a hidden tax on your business. It's time we sued each other less and helped each other more. I'm fighting the old politics of tax and spend. I'm battling to spur new investment and job creation by cutting the tax on capital gains. 11 When I sent my legal reform bill to Capitol Hill, our opponents said no. They and their friends in the trial lawyers' lobby circled the wagons, closed ranks, and hung tough to protect the status quo. 11 When I asked for tax breaks for young homeowners, when I asked for the capital gains cut we need so urgently -- our Affairs opponents passed a bill to raise your taxes by a hundred billion dollars. This time, I said no -- I cast my veto. Gary Next year we'll see a change. Next year we'll have a Andres dramatically different Congress. Next year, I am confident, we'll break the logjam of the old politics. We'll win legal 'yes 4790 OMB, David Taylor 3 reform and tax relief. We'll restore government that lives within limits. \ Government that respects people's labor and property. \ Government that trusts the American people. 11 One the most exciting developments in our nation's history is coming to fruition right now -- the North American Free Trade Agreement. [report latest status of NAFTA] Everyone wins through open trade with Mexico and Canada. Open trade will make each of us better neighbors and closer friends. Open trade will offer tremendous new opportunities for people to invent and produce and take new goods and services to market. [export examples] ChiefEcomest Open trade will fuel the growth of jobs in the United States David Nick of America. During the recent, partial opening of the Mexican Brader Watters USTR markets since 1986, U.S. exports to Mexico have almost tripled. mouthan 3583 That has meant the creation of A 300, 000 new jobs. We enjoy a $2.1 robust trade surplus with Mexico -- $1.6 billion last year. And the new jobs created by trade with Mexico are to be found not Elaine Brown only in the border states, but all across the country. Our top X3583 USTR ten states exporting to Mexico now include Michigan, Illinois, New York, Pennsylvania and Florida. When the trade agreement goes to Congress -- not if, but when -- I'll need the utmost help from each and every one of you. Please don't have any illusions this will be an easy fight. Don't count on candor from our opponents. Some politicians pay lip service to open trade -- but when it's time for a real decision, they put their proxies in the pockets of the big unions 4 and the ideological interest groups. 11 And I scarcely need to tell this audience about this ugliness we've heard. I don't like to think this kind of thing still happens in America, but we've heard it. We've heard the whispering campaign that doesn't even pretend to address economics. It's the old appeal to prejudice. 11 As long as I'm President, we'll never turn back the clock. I'll oppose intolerance and nativism in any form. 11 In the next century, our kids -- and indeed, some of you younger entrepreneurs -- will help make commonplace things that now exist only in dreams: faster travel, cultural progress, cures for diseases. The dream of open trade and strong, respectful ties between the workers \ the business people \ and the families \ of Mexico, Canada and the United States is so near it's almost palpable. Let's resolve together, today, to make that dream real -- to make it a solid foundation for our future. Thank you, and may God bless all the people of the Americas. # # # Mendoza: : one CE. propeled is alex Mermelo in Texas [MER - E L - 0) Int'l Bank a Commerce pizza Loca 714-670-0934 Buse L.A Park county 4 or le people Cal State lumber sales Fony & Dennis Nexing will be and Mn. 5 alim s there Benjamin Acebado acebedo IBC largest + havy alice minority - owned strong NAFTA supporter bank in the u.s. San Isido right on The border in otay Mesa 619-661-6599 Lanedo Troy Fond Troy, rich Irma Elder - mis tremenlous smouth There be Florida chief Jushie of Rosemary Fla. ct. 1st Hisream. Iis mony my "Best Meridian is Irma Elder's sister ster antone is Sierra she'll si be here Chain an 305-445-1110 313-585-4000 in N.Y. Frank Flores Marsda Regroductions a judge in Hispen entrepranem of The yea am 212-725-9220 Jesus Chavarria 10th annual listing is May 1991 Bush t Shinee on the may. cover circ. 150, 000 monthly THE WHITE HOUSE WASHINGTON 5-28 DATE: FROM THE PRESIDENT To: speechwrstis Some good NAFTA facts here cry DEPARTMENT THE THE TREATMENT THE SECRETARY OF THE TREASURY WASHINGTON 1789 May 27, 1992 MEMORANDUM TO THE PRESIDENT FROM: Nicholas F. Brady 27B As mentioned in the PCG meeting this morning, I think your speeches ought to include examples of how NAFTA and an open trading system works in addition to expressing determination to complete the NAFTA agreements. This would give specificity and give people a better understanding of what you are driving at. I am sure your own speech writers can come up with plenty of good examples but here are some that I have been using: "U. S. exports to Mexico have almost tripled since 1986, creating 300,000 American jobs." "In 1991 U. S. export growth to Mexico outpaced import growth by 5 to 1, providing a $1.6 billion trade surplus." "The new jobs are not occurring only in the obvious growth regions of the country. We would expect the border states of California and Texas to be among the chief exporters to Mexico, and they are. But who would guess that our top ten exporters to Mexico today would include Michigan, Illinois, New York, Pennsylvania and Florida? They do." "U. S. exports to Latin America and the Caribbean have doubled since 1986. They now amount to almost $63 billion annually and have created over 600,000 U. S. jobs." "Over the last five years, export expansion has accounted for over one-third of GDP growth, and for every 2 1/2 percent growth in GDP, we create almost 2 million new jobs per year." (Duggan/Walters) July 23, 1992 Draft One HB PRESIDENTIAL REMARKS: HISPANIC BUSINESS LEADERS THE ROSE GARDEN THE WHITE HOUSE TUESDAY, JULY 28, 1992 9:30 A.M. [Acknowledgments] Welcome to the White House and to the Rose Garden. You know my position on creating new jobs and giving new benefits to our consumers through open trade with Mexico and Canada. Don't count on candor from the opponents of open trade Some politicians pay lip service to open trade and then -- when it's time for a real decision they put their proxies in the pockets of the big unions and the ideological interest groups. And I don't need to tell this audience about the really ugly side of the campaign against better relations ties with Mexico and mishory our other southern neighbors. It's the whispering campaign that doesn't even pretend to make a point about economics. It's the old appeal to nativism, to prejudice. 11 As long as I'm President, you can be sure I'll fight any attempt to turn back the clock. I'll fight any attempt to revive nativism and prejudice. 11 build. Leaders like you helped us win a tough round of political fighting last year for this free trade agreement. (Duggan/Walters) July 23, 1992 Draft One HB PRESIDENTIAL REMARKS: HISPANIC BUSINESS LEADERS THE ROSE GARDEN THE WHITE HOUSE TUESDAY, JULY 28, 1992 9:30 A.M. [Acknowledgments] Welcome to the White House and to the Rose Garden. You know my position on creating new jobs and giving new benefits to our consumers through open trade with Mexico and Canada. Don't count on candor from the opponents of open trade. Some politicians pay lip service to open trade and then -- when it's time for a real decision -- they put their proxies in the pockets of the big unions and the ideological interest groups. And I don't need to tell this audience about the really ugly side of the campaign against better relations with Mexico and our other southern neighbors. It's the whispering campaign that doesn't even pretend to make a point about economics. It's the old appeal to nativism, to prejudice. 11 As long as I'm President, you can be sure I'll fight any attempt to turn back the clock. I'll fight any attempt to revive nativism and prejudice. 11 build. Leaders like you helped us win a tough round of political fighting last year for this free trade agreement. Continued Cooperation estment Week Ending Friday, January 27, 1989 Inaugural Address blowing, and a world refreshed by freedom congressional session of January 20, 1989 seems reborn. For in man's heart, if not in fact, the day of the dictator is over. The Mr. Chief Justice, Mr. President, Vice totalitarian era is passing, its old ideas President Quayle, Senator Mitchell, Speaker blown away like leaves from an ancient, eral Ethics Law Wright, Senator Dole, Congressman Michel, lifeless tree. A new breeze is blowing, and a and fellow citizens, neighbors and friends: nation refreshed by freedom stands ready There is a man here who has earned a to push on. There is new ground to be lasting place in our hearts and in our histo- broken and new action to be taken. There ry. President Reagan, on behalf of our are times when the future seems thick as a No. 1)-119 nation, I thank you for the wonderful things fog; you sit and wait, hoping the mists will that you have done for America. lift and reveal the right path. But this is a I've just repeated word for word the oath time when the future seems a door you can taken by George Washington 200 years ago, walk right through into a room called to- and the Bible on which I placed my hand is morrow. inksgiving-102 the Bible on which he placed his. It is right Great nations of the world are moving that the memory of Washington be with us toward democracy through the door to today not only because this is our Bicenten- freedom. Men and women of the world -134 releases-134 nial Inauguration but because Washington move toward free markets through the door nouncements— remains the Father of our Country. And he to prosperity. The people of the world agi- would, I think, be gladdened by this day; tate for free expression and free thought enate-133 for today is the concrete expression of a through the door to the moral and intellec- stunning fact: our continuity these 200 tual satisfactions that only liberty allows. years since our government began. We know what works: Freedom works. We meet on democracy's front porch. A We know what's right: Freedom is right. good place to talk as neighbors and as We know how to secure a more just and friends. For this is a day when our nation is prosperous life for man on Earth: through made whole, when our differences, for a free markets, free speech, free elections, moment, are suspended. And my first act as and the exercise of free will unhampered President is a prayer. I ask you to bow your by the state. heads. ues Nos. 1-3 of For the first time in this century, for the Heavenly Father, we bow our heads and first time in perhaps all history, man does week's issue and thank You for Your love. Accept our thanks not have to invent a system by which to for the peace that yields this day and the live. We don't have to talk late into the shared faith that makes its continuance night about which form of government is likely. Make us strong to do Your work, will- better. We don't have to wrest justice from ing to heed and hear Your will, and write the kings. We only have to summon it from on our hearts these words: "Use power to within ourselves. We must act on what we nittee of the Federal help people." For we are given power not know. I take as my guide the hope of a 23607; 1 CFR Part to advance our own purposes, nor to make saint: In crucial things, unity; in important a great show in the world, nor a name. things, diversity; in all things, generosity. rintendent of Docu- There is but one just use of power, and it is ton, DC 20402. The America today is a proud, free nation, its will be furnished to serve people. Help us remember, Lord. decent and civil, a place we cannot help er year ($105.00 for Amen. but love. We know in our hearts, not loudly for $80.00 per year, Government Print- I come before you and assume the Presi- and proudly but as a simple fact, that this e for a single copy is dency at a moment rich with promise. We country has meaning beyond what we see, live in a peaceful, prosperous time, but we and that our strength is a force for good. tion of material ap- can make it better. For a new breeze is ntial Documents. But have we changed as a nation even in 99 Jan. 20 / Administration of George Bush, 1989 our time? Are we enthralled with material decisions based on honest need and prudent final lesson of Vi things, less appreciative of the nobility of safety. And then we will do the wisest thing nation can long af work and sacrifice? of all: We will turn to the only resource we memory. A new b My friends, we are not the sum of our have that in times of need always grows: old bipartisanship possessions. They are not the measure of the goodness and the courage of the Ameri- To my friends- our lives. In our hearts we know what mat- can people. friends-in the loy ters. We cannot hope only to leave our chil- And I am speaking of a new engagement mean loyal, I put 0 dren a bigger car, a bigger bank account. in the lives of others, a new activism, hands- out my hand to We must hope to give them a sense of what on and involved, that gets the job done. We putting out my h: it means to be a loyal friend; a loving must bring in the generations, harnessing Leader. For this is parent; a citizen who leaves his home, his the unused talent of the elderly and the of the offered hand neighborhood and town better than he unfocused energy of the young. For not clocks, and I don't found it And what do we want the men only leadership is passed from generation to fathers were young and women who work with us to say when generation but so is stewardship. And the ences ended at th we're no longer there? That we were more generation born after the Second World don't wish to turn driven to succeed than anyone around us? War has come of age. mothers were you Or that we stopped to ask if a sick child had I have spoken of a thousand points of the Congress and t gotten better and stayed a moment there to light, of all the community organizations ble of working trade a word of friendship? that are spread like stars throughout the budget on which t No President, no government can teach Nation, doing good. We will work hand in us negotiate soon us to remember what is best in what we are. But if the man you have chosen to lead hand, encouraging, sometimes leading, let us produce. Th this government can help make a differ- sometimes being led, rewarding. We will action. They didn' work on this in the White House, in the They ask us to rise ence; if he can celebrate the quieter, san. "In crucial thi deeper successes that are made not of gold Cabinet agencies. I will go to the people friends, is crucial. and silk but of better hearts and finer souls; and the programs that are the brighter To the world, to if he can do these things, then he must. points of light, and I'll ask every member of ment and a rene America is never wholly herself unless my government to become involved. The strong to protect she is engaged in high moral principle. We old ideas are new again because they're not hand is a reluctar as a people have such a purpose today. It is old, they are timeless: duty, sacrifice, com- and can be used to make kinder the face of the Nation and mitment, and a patriotism that finds its ex- are today America gentler the face of the world. My friends, pression in taking part and pitching in. their will in forei we have work to do. There are the home- We need a new engagement, too, be- who are unaccoun less, lost and roaming. There are the chil- tween the Executive and the Congress. The shown here and V dren who have nothing, no love and no challenges before us will be thrashed out Good will begets normalcy. There are those who cannot free with the House and the Senate. And we be a spiral that en themselves of enslavement to whatever ad- must bring the Federal budget into balance. Great nations li diction-drugs, welfare, the demoralization And we must ensure that America stands their word. When that rules the slums. There is crime to be before the world united, strong, at peace America means it conquered, the rough crime of the streets. and fiscally sound. But of course things may agreement or a V( There are young women to be helped who be difficult. We need to compromise; we've We will always are about to become mothers of children had dissension. We need harmony; we've candor is a compl they can't care for and might not love. had a chorus of discordant voices. good and has its They need our care, our guidance, and our For Congress, too, has changed in our alliances and frie education, though we bless them for choos- time. There has grown a certain divisive- strong, ever stro! ing life. ness. We have seen the hard looks and new closeness wi The old solution, the old way, was to heard the statements in which not each sistent both with think that public money alone could end other's ideas are challenged but each progress. One mis these problems. But we have learned that other's motives. And our great parties have tionship in part that is not so. And in any case, our funds too often been far apart and untrusting of hope and streng are low. We have a deficit to bring down. each other. It's been this way since Viet- hope is good, an We have more will than wallet, but will is nam. That war cleaves us still. But, friends, lance. what we need. We will make the hard that war began in earnest a quarter of a Here today are choices, looking at what we have and per- century ago, and surely the statue of limita- citizens who feel haps allocating it differently, making our tion has been reached. This is a fact: The faction of those W 100 Administration of George Bush, 1989 / Jan. 20 d and prudent final lesson of Vietnam is that no great mocracy and seen their hopes fulfilled. But e wisest thing nation can long afford to be sundered by a my thoughts have been turning the past y resource we memory. A new breeze is blowing, and the few days to those who would be watching always grows: old bipartisanship must be made new again. at home, to an older fellow who will throw of the Ameri- To my friends-and, yes, I do mean a salute by himself when the flag goes by friends-in the loyal opposition-and, yes, I and the woman who will tell her sons the V engagement mean loyal, I put out my hand. I am putting words of the battle hymns. I don't mean tivism, hands- out my hand to you, Mr. Speaker. I am job done. We putting out my hand to you, Mr. Majority this to be sentimental. I mean that on days is, harnessing Leader. For this is the thing: This is the age like this we remember that we are all part lerly and the of the offered hand. And we can't turn back of a continuum, inescapably connected by ung. For not clocks, and I don't want to. But when our the ties that bind. generation to fathers were young, Mr. Speaker, our differ- Our children are watching in schools hip. And the ences ended at the water's edge. And we throughout our great land. And to them I econd World don't wish to turn back time, but when our say, Thank you for watching democracy's mothers were young, Mr. Majority Leader, big day. For democracy belongs to us all, and points of the Congress and the Executive were capa- and freedom is like a beautiful kite that can organizations ble of working together to produce a go higher and higher with the breeze. And roughout the budget on which this nation could live. Let to all I say, No matter what your circum- work hand in us negotiate soon and hard. But in the end, stances or where you are, you are part of nes leading, let us produce. The American people await this day, you are part of the life of our great ling. We will action. They didn't send us here to bicker. nation. House, in the They ask us to rise above the merely parti- A President is neither prince nor pope, o the people san. "In crucial things, unity"-and this, my and I don't seek a window on men's souls. the brighter friends, is crucial. In fact, I yearn for a greater tolerance, and ry member of To the world, too, we offer new engage- easy-goingness about each other's attitudes nvolved. The ment and a renewed vow: We will stay and way of life. se they're not strong to protect the peace. The offered There are few clear areas in which we as acrifice, com- hand is a reluctant fist, once made, strong it finds its ex- and can be used with great effect. There a society must rise up united and express our intolerance. The most obvious now is ching in. are today Americans who are held against ent, too, be- their will in foreign lands and Americans drugs. And when that first cocaine was who are unaccounted for. Assistance can be smuggled in on a ship, it may as well have Congress. The shown here and will be long remembered. been a deadly bacteria, so much has it hurt thrashed out ate. And we Good will begets good will. Good faith can the body, the soul of our country. And into balance. be a spiral that endlessly moves on. there is much to be done and to be said, Great nations like great men must keep but take my word for it: This scourge will merica stands their word. When America says something, stop. ng, at peace se things may America means it, whether a treaty or an And so, there is much to do. And tomor- romise; we've agreement or a vow made on marble steps. row the work begins. And I do not mistrust We will always try to speak clearly, for the future. I do not fear what is ahead. For mony; we've candor is a compliment; but subtlety, too, is our problems are large, but our heart is es. good and has its place. While keeping our larger. Our challenges are great, but our inged in our alliances and friendships around the world will is greater. And if our flaws are endless, tain divisive- strong, ever strong, we will continue the God's love is truly boundless. d looks and new closeness with the Soviet Union, con- Some see leadership as high drama and ch not each sistent both with our security and with the sound of trumpets calling, and some- d but each progress. One might say that our new rela- times it is that. But I see history as a book parties have tionship in part reflects the triumph of with many pages, and each day we fill a untrusting of hope and strength over experience. But y since Viet- page with acts of hopefulness and meaning. hope is good, and so is strength and vigi- But, friends, The new breeze blows, a page turns, the lance. quarter of a story unfolds. And so, today a chapter Here today are tens of thousands of our tue of limita- begins, a small and stately story of unity, citizens who feel the understandable satis- a fact: The diversity, and generosity-shared, and writ- faction of those who have taken part in de- ten, together. 101 Jan. 20 / Administration of George Bush, 1989 Thank you. God bless you. And God bless gather together on this day in homes and Thank you all ve the United States of America. places of worship to pray in thanksgiving you. We'll scoot on in for our blessings of peace, freedom, pros- Note: The President spoke at 12:05 p.m. perity, and Independence. Let all Ameri- Note: The President from a platform erected at the West Front cans kneel humbly before our Heavenly the Executive Entran of the Capitol. Immediately before the ad- Father in search of His counsel and for His dress, the oath of office was administered divine guidance and wisdom upon the lead- by Chief Justice William H. Rehnquist. The ers of the United States of America. address was broadcast live on radio and In Witness Whereof, I have hereunto set television. my hand this twentieth day of January, in Question-and-Answ the year of our Lord nineteen hundred and Reporters eighty-nine, and of the Independence of January 21, 1989 the United States of America the two hun- Proclamation 5936-National Day of dred and thirteenth. The President. ( [Helen Thomas, Unit Prayer and Thanksgiving, 1989 George H.W. Bush January 20, 1989 First Day of the Pres [Filed with the Office of the Federal Regis- Q. How are you? ] By the President of the United States ter, 12:07 p.m., January 23, 1989] President? of America The President. It A Proclamation in now, after the gla! On this Bicentennial of the Presidency of the inauguration. It's the United States of America, it is fitting to Remarks to Visitors of the mother here, the le recall our first President, George Washing- White House great joy to have ou ton, who believed in our country's divine last night. One got si January 21, 1989 destiny. He said, "No people can be bound about 6 a.m. this mo to acknowledge and adore the invisible The President. Good morning, everybody. pumped a half a Tyle hand, which conducts the affairs of men, looking good. Ate Thank you. Thank you all very much. Let more than the people of the United States." me just say that I know some of you have you'd call a rapid rec As we celebrate this American Bicenten- been up all night long. And so, what we Q. Which one was nial Presidential Inaugural, we celebrate want to do is not delay this but take whoev- The President. Elli- America's brotherhood-our common er is first. And I gather that's been sorted "Thousand Points 0 ideals, our common kinship, our national out by whoever got first in line into the across in the comm unity. We celebrate America as "one nation Visitors. No! exciting over there under God." As I assume the office of President, I am The President. Not quite? the family all there We have a luncheon humbled before God and seek His counsel Visitors. No! Mrs. Bush. Oh, re: and favor on our land, and join with our The President. Okay, so there's some in- The President. Yes first President who said, it would be justice out there. [Laughter] Visitor. We love you, George. I love you. Mrs. Bush. Oh, my peculiarly improper to omit in this first offi- cial act, my fervent supplications to that The President. No, but this is the people's Q. Are you respon house, and it just seemed appropriate on 1 you responsible for 2 Almighty Being who rules over the uni- Mrs. Bush. No. [L verse that his benediction may conse- this first day that we welcome as many as crate to the liberties and happiness of the we can. I have a little hiatus in the middle Q. What are your people of the United States, a government because I do have to go over to this build- Mrs. Bush. What C instituted by themselves for these essential ing. I'm sure most of you recognize that as Q. What are your purposes." the West Wing, and then the office you see Mrs. Bush. Oh, I t Now, Therefore, I, George Bush, Presi- in the corner is the President's Oval Office. ing day of my life so dent of the United States of America, by And I have to go sign one or two things and derful. Everything h the authority vested in me by the Constitu- at least start to work over there, and then I thing is so beautifully tion and laws of the United States, do will come back. Barbara will be here-some The President. Th hereby proclaim January 22, 1989, a Nation- of our kids inside. But we just wanted to me not to brag abo al Day of Prayer and Thanksgiving and call wish you well and welcome you to the peo- my knees when I upon the citizens of our great Nation to ple's house. You're looking at her 102 tie to Trust theme . (Duggan/Nix) July 23, 1992 Draft One HB PRESIDENTIAL REMARKS: HISPANIC BUSINESS LEADERS THE ROSE GARDEN THE WHITE HOUSE TUESDAY, JULY 28, 1992 9:30 A.M. [Acknowledgments] Welcome to the White House and to the Rose Garden. Jesus [Chavarria, editor/publisher of Hispanic Business], thank you for your leadership in bringing together so dynamic women and men who are making Hispanic-owned many businesses in the United States grow so rapidly. here? line Your dreams and your hard work animate every kind of industry all across this country. There's Irma Elder from Michigan whose thriving business is -- what else -- selling cars. There's Frank Flores from the printing industry in New York. And Benjamin Acebedo, with a lumber company in California. And executives from the largest minority-owned bank in the United States -- the Sanchez family's IBC of Laredo, Texas. We're together today because we believe in the future -- and we know how to get there. Our future depends on freedom. Freedom works. Freedom is right. All around the world, dictatorships are giving way to on junh heap democracy. Command-and-control economies are going by the wayside. As never before in the history of the world, people are free to think and to speak They're choosing new governments - flive work + Worsby asthey wish that respect people's freedom to buy and to sell and to create. In the Western Hemisphere, freedom's tide has never been higher. In fact, if I may make a prediction, that tide will soon 2 last dictator Ling drown the last dictatorship in Latin America the Castro regime. And on the crest of that tide will rise a new democracy in Cuba. 11 Here at home, we're renewing the freedoms that foster new thinking and create new jobs. I'm overhauling the entire system of federal government regulation. This year alone, I've directed an unprecedented cutback of controls and red tape that have no place in a free society. [details with impact on jobs and consumers] A tax HI Deh on your furnises I'm fighting to halt the epidemic of lawsuits. It's time we sued each other less and helped each other more. 11 I'm fighting the old politics of tax and spend. I'm battling to spur new investment and job creation by cutting the tax on capital gains. 11 When I sent my legal reform bill to Capitol Hill, our opponents said no. They and their friends in the trial lawyers' civeled the wagons - closed raules lobby labored to protect the status quo. When I asked for tax breaks for young homeowners, when I asked for the capital gains cut we need so urgently -- our opponents passed a bill to raise your taxes by a hundred billion dollars. And to this I said no -- I cast my veto. 11 This time Next year we'll see a change. Next year we'll have a dramatically different Congress. Next year, I am confident, we'll break the logjam of the old politics. We'll win victories for legal reform and tax relief. Victoris for Amenica... One the most exciting developments in our nation's history 3 sounds bottom like 2 of outs, CE. three " this image is coming to fruition right now -- the North American Free Trade last Agreement. Two weeks ago in San Diego I told President Salinas at we'd reached the top of the ninth inning in our free trade talks. bat. Now we're in the bottom of the ninth. [update if need be] Everyone wins through open trade with Mexico and Canada. Open trade will make each of us better neighbors and closer friends. Open trade will offer tremendous new opportunities for people to invent and produce and take new goods and services to market. ?, Open trade will fuel the growth of jobs in the United States of America. During the recent, partial opening of the Mexican markets since 1986, U.S. exports to Mexico have almost tripled. That has meant the creation of 300,000 new jobs. We enjoy a robust trade surplus with Mexico -- $1.6 billion last year. And the new jobs created by trade with Mexico are to be found not only in the border states, but all across the country. Our top ten states exporting to Mexico now include Michigan, Illinois, New York, Pennsylvania and Florida. notif but when - - When the trade agreement goes to Congress ^ I'll need the utmost help from each and every one of you. Please don't have any illusions this will be an easy fight. Don't count on candor from our opponents. Some politicians pay lip service to open trade -- but when it's time for a real decision, they put their proxies in the pockets of the big unions and the ideological interest groups. And I scarcely need to tell this audience about the ugly to 4 to m side of the opposition. It's the whispering campaign that doesn't even pretend to address economics. It's the old appeal to prejudice. 11 As long as I'm President, we'll never turn back intolerancet the clock. I'll oppose nativism in any form. 11 & In the next century, our kids -- and indeed, some of you younger entrepreneurs -- will help make commonplace things that now exist only in dreams: faster travel, cultural progress, cures for diseases. The dream of open trade and strong, respectful ties between the workers and the businessmen and the families of Mexico, Canada and the United States is so near it's almost palpable. Let's resolve together, today, to make that dream real -- to make it a solid foundation for our future. Thank you, and may God bless all the people of the Americas. # # # THE WHITE HOUSE Office of the Press Secretary (Chicago, Illinois) For Immediate Release September 20, 1991 REMARKS BY THE PRESIDENT AT THE 12TH ANNUAL NATIONAL CONVENTION OF THE UNITED STATES HISPANIC CHAMBER OF COMMERCE Hyatt Regency Hotel Chicago, Illinois 1:45 P.M. CDT Secretaries to thank you of THE for that PRESIDENT: warm reception Thank you here. very First, much. And I really want Skinner, who years is with us today; and also many of you known over the my Cabinet -- Secretary Lujan, who may I salute have two in a sense just came in with us from California, Secretary Sam Chicago and doing a great job as Secretary of Transportation. a son of airport and the here Mayor May of this I also great thank city, the Mayor Governor Daley, of the state, Jim Edgar; both showing up certainly not a partisan gathering, and I this is, as I view it, and welcoming us to Illinois and Chicago. for greeting And me at the (Laughter and applause.) together, side-by-side, was a manifestation think of their that. thank your very you all, able But president; may I thank Gabe Jose, Aguirre, Jose the Nino, outgoing who just introduced me, newly elected chair. me congratulate my fellow Texan, once Delia again, that very welcome. Let ladies and gentlemen, for, chairman. warm And that are here. And warmest greetings to the many Reyes, dignitaries your I Would know you it happens believe all we experienced a slight flight delay? scheduled. (Laughter.) I'm here a little later than originally Michael Jordan the time. We had to circle you've just heard reason, too -- if I may be And there's a second practiced takeoffs and landings out the here. city (Laughter.) while catch Jack Kemp speak -- and I thought candid. you'd want I know to your breath for a little bit. (Laughter.) generate back to our -- can't first If you're Cabinet still meeting feeling and winded, I asked it's my fault. It goes it today. But he's you work up a little more enthusiasm?" Jack, "Can't you management and Urban Development. doing His a concept, great job our for us as Secretary of And Housing you saw then, Jack -- and and home ownership offers really concept, hope to of tenant and most visionary all our administration believe millions. But ensuring that of American ideals, the -- ideal of in the greatest work will take them. people can go as far as their abilities real and equality their hard -- brought the combination Hispanic Five of America centuries into ago, being. men crossed Ever since the then, great ocean and. called it a New World. not a new colony, not a new settlement. on these vast We've lands not a new territory, European and American peoples we have called of forces peoples, fed its the Hispanic growth: grand enterprise America transoceanic arose of discovery out trade, of risk the and movement and development. romance. and mingling Several On MORE - 3 - But these reforms -- it's not a one-way street -- these reforms have helped Mexico -- a classic win-win situation, if you will. Fidel Velazquez Sanchez, the head of the Mexican Labor Confederation, recognizes that increased trade will create new jobs, indeed, new industries, in Mexico, and he strongly supports the trade agreement. What's good for Hispanic America will be good for the United States. And with open trade, by the year 2000, United States firms will be doing a robust business with dynamic economy of 100 million Mexican consumers. The prospects seem equally exciting south of Mexico, true, We've heard a lot about the Mexican free trade agreement. We've heard about the negotiations. They are our friendly neighbors on the border and we ought to -- parenthetically, I might say, we should never just take those friends for granted, whether it be to our north or to our south. We are blessed by peaceful borders. But we're already advancing creative plans now to reduce debt, boost investment and increase trade. We've now signed framework trade So liberalization agreements involving 28 countries in the hemisphere. it's not just Mexico. But we need your help. authority and funding, and to give us the ability to contribute to Congress still has failed to give us debt reduction the Multilateral Investment Fund. This would help stimulate please, speak out in support of the Enterprise for the Americas investment and build stable democracies within our hemisphere. So to Initiative. And join me in urging Congress to pass the legislation put it into full effect. Enterprise for the Americas is countries south of the Rio Grande, and it will be good for American slogan. It will strengthen democracy and freedom in those friendly not a exports, and that means it will be good for American jobs. boost when my friend, Jose Martinez, becomes Director of the United Our efforts to expand U.S. exports will get another States Trade and Development Program. and all that we really have entered into a new era of freedom and And, of course, one more event will demonstrate to one opportunity. (Applause.) I'm speaking of Cuba's becoming free and democratic. dictatorship. And the day is coming, I'm absolutely convinced of Today we hear the creaking and crumbling of that Castro this, sooner than Castro dares to believe, when the people of Cuba of will reclaim their destiny and rejoin the Western Hemisphere's family free nations. (Applause.) peoples, we must do more than lift economic and political barriers. And if we want to make our hemisphere a neighborhood of Our administration also has promoted educational and cultural As exchanges in between our country and our neighbors in the hemisphere. Hispanic Americans. commerce, the natural leaders in this enterprise will be Common cultural roots enable us all to seek a shared destiny for us. our You see, something more than mere geography unites hemisphere, for ourselves. its endorsement of our America 2000 Education Strategy. I And I want to thank the Hispanic Chamber of Commerce for could our kids, beginning in the kindergarten. And now, if only someone to grateful for your initiatives to teach economics and entrepreneurship am shape around here. (Laughter and applause.) do the same for economists, I think we'd be in pretty good MORE - 4 - an article of faith: We believe that parents care about their America 2000, like our economic proposals, begins with help their children reach their potential. So we want to expand children, care about education, and can help find schools that will purchase peanut butter. crucial matter of education as they now have when they wish to parental choice so that parents will have as much choice in the invite competition and show just how well we can do. And if we want to make the most of ourselves, we must America 2000 will enable Hispanic communities to teachers upon their natural strengths and values. And it will enable parents, draw American education. and, yes, church and business leaders to help reinvent Hispanic the President's Advisory Commission on Educational Excellence membership To further this goal, I have announced the of role International, in will chair the panel, and its work will Ameritech a major Americans. Chicago's own Andres Bande, CEO of for unleashing the America 2000 revolution in education. play I (Applause.) know, This is important work he's about to be this. And stand up -- right there. Thank you for undertaking I understand Andres is here today, and I'd like him to cooperation. on his behalf, I'd like to solicit your ideas engaged and your in. full international about earlier development. It's a term of art, of concept we Let -- me close with a few comments on a talked material fuzzy or financial euphemism wealth. for "poverty" -- for a nation country" short on sort of economics. We tend to use "developing course, as in a forget still its deeper meaning. Isn't the United States -- way, we But when we use the term "development" in this moral and or stagnant? And if we're not giving can we afford become -- static "developing"? For all our present wealth, must it not to be are we a intellectual inheritance as good as our parents our children gave us, a "developed" society? the centuries effort ago. some were wise, some were foolish. And five I think again of the explorers on our continent place, those adventurers were not just looking in the Cities Gold. And wasted in trying to find the imaginary Seven we remember of and soul. men and women, in "human resources", in mind treasure and is, they in were searching for the wrong treasure. The wrong was, And these, not unearned bonanzas, build civilizations. and muscle barriers excitement. In these hopeful times, as we tear down life's Our work never ends. That's the key to shall. fundamentals -- of a good society. Together, I know the that values we -- the supplying our own sons and our own daughters confines, with we must continue and liberate ourselves from ideological economic Barbara privileged and to serve as President of the United States, House and more You know, the longer I'm in the White of this his excellent way every day, or Jim Daley confronts in I discuss these enormous problems that Mayor and the more we state, confronts in his very effective way Edgar, as the Governor country of contemplate those problems and the more I look Governor -- the -- and I must ours that I'm privileged to lead at this point at in this great have got to that family is absolutely essential to our more Barbara We I conclude say it's a very exciting point -- the history and like involved. And when I speak to this to stay fundamentally stay involved -- (applause) -- we have got success. the prime preaching to the choir because I think if you group, it's almost American culture values and principles that this group and, exemplify Hispanic one of all across our country exemplifies, is indeed, love of - 5 - freest family and and its faith and its conviction about our great country, the fairest on the face of the Earth. (Applause.) So thank you very much for letting me come country. great this highly joy to successful be back with convention. you again. And And let may me God tell bless you our by that and great it's visit a Thank you very very much (Applause.) END 2:05 P.M. CDT JUL 22 '92 12:21 FROM US TRADE REP PAGE. 002 DOC draft LULY NAFTA and Hispanics The NAFTA will bring exciting opportunities for U.S. Hispanic businesses. Mexico's dynamic growth and rapidly growing population offer unprecedented demand for goods and services that Hispanic-American businesses are uniquely able to supply. The majority of Mexican enterprises are small and medium-sized, by U.S. standards, and are eager to work with innovative U.S. firms the same size. The opportunities for matching Hispanic business expertise with entrepreneurs south of the border have only begun to be tapped. U.S. Government Activities U.S.-Mexico Minority Business Development Missions: First U.S. government-led Minority Business Development Mission to Mexico on February 23-25, 1991. Eleven minority-owned companies participated in the mission led by the International Trade Administration and the Minority Business Development Agency. A second mission is planned for November 1992. Seminars and Conferences: Six conferences in 1992 across the U.S. for Minority businesses to bring the nuts-and-bolts of doing business in Mexico to the minority and small business community. Conferences have been held in New York, Miami, San Jose and Los Angeles, and are scheduled for Chicago and San Antonio. Matching Hispanic/minority-owned firms with environmental needs in Mexico through U.S.-Mexico Environmental Business Committee technical assistance programs. U.S. Government "Matchmaker" to introduce small U.S. minority businesses to Mexican commercial partners scheduled for early 1993. Joint ITA/MBDA projects to increase direct linkages (trade and joint ventures) between U.S. Hispanic and minority firms and Mexican businesses. Mexican Outreach Mexican Council for Hispanic Business, created by President Salinas in April 91 in recognition of the importance of strengthening commercial and cultural linkages between Mexican citizens and descendants of Mexicans in the U.S.. The Council provides Hispanic entrepreneurs preferential and swift access to the Mexican business structure by coordinating the different Mexican organizations that promote business with the U.S. Hispanic community. There are Mexican Communities Abroad liaisons at Mexican consulates throughout the United States that are contact points for these programs. The Mexican government has hosted fourteen regional Hispanic trade missions from across the U.S. throughout the first half of 1992. Missions have gone from Texas, Arizona, New Mexico, Florida, California, the Midwest, and the nationwide JUL 21 '92 17:25 PAGE. 002 JUL 22 '92 12:21 FROM US TRADE REP PAGE. 003 memberships of the Hispanic Alliance for Free Trade, the National Council of La Raza, the Hispanic National Bar and the Mexican American Women's National Association (MANA) among others. These events are scheduled to continue monthly through the end of this year. Five conferences on business opportunities in Mexico for U.S. Hispanics have been sponsored by SECOFI and local co-sponsors in Denver, Houston, Miami, San Francisco and Sacramento. Two more are scheduled for the second half of 1992. Hispanic Organizations and Free Trade The following Hispanic organizations have recognized the opportunities for Hispanica through increased trade with Mexico and have participated in NAFTA outreach. Those in bold-face have specifically endorsed a NAFTA: National American G.I. Forum (Hispanic Veterans) The U.S. Hispanic Chamber of Commerce The Hispanic Alliance for Free Trade Latin American Management Association (LAMA) National Council of La Raza National Image (ref. Luis de la Calle, FTA Office) Society of Hispanic Professional Engineers National Association of Latino Elected and Appointed Officials (NALEO) National Hispanic Business Group Mexican American Legal Defense Fund (MALDEF) Hispanic American Construction Industry Association Hispanic Alliance for Career Enhancement Regional Arizona Hispanic Chamber of Commerce The California Hispanic Chambers of Commerce Federacion de Comerciantes Y Profesionales de NY Gulf Coast International Hispanic Chamber of Commerce (Louisiana) Hispanic American Chamber of Commerce (Passale, New Jersey) Hispanic Business Association of Ohio Hispanic Chamber of Commerce of Wisconsin Inland Hispanic Chamber of Commerce (California) Latin Chamber of Commerce of Nevada, Inc. Latin Chamber of Commerce of Illinois Latin Chamber of Commerce of Nevada Long Island Hispanic Chamber of Commerce Louisiana Hispanic Chamber of Commerce Mexican American Chamber of Commerce of Illinois, Inc. Michigan Hispanic Chamber of Commerce JUL 21 '92 17:26 PAGE. 003 JUL 22 '92 12:22 FROM US TRADE REP PAGE. 004 Midwest Effort for Free Trade New York State Federation of Hispanic Chambers of Commerce Northwest Indiana Hispanic Coordinating Council Fennsylvania Hispanic Chamber of Commerce Statewide Hispanic Chamber of Commerce of New Jersey Texas Association of Mexican Chambers of Commerce (TAMACC) United States-Mexican Chamber of Commerce (Northeast) Local Abilene Hispanic Chamber of Commerce Albuquerque Hispano Chamber of Commerce Atlanta Hispanic Chamber of Commerce Bergen County Hispanic Chamber of Commerce (New Jersey) Camara de Comercio Hispana de Amarillo Camara de Comercio Latina de Elizabeth (New Jersey) Camara de Comercio Latina de la Bahia de Tampa Cen-Tex Hispanic Chamber of Commerce Centro Unido de Detailista de Puerto Rico Cermak Road Chamber of Commerce & Industry (Chicago) Chicago Cuben-American Chamber of Commerce Chicago Puerto Rican Chamber of Commerce Cincinnati Commission on Spanish Speaking Affairs Cleveland Hispanic Business Association Coastal Bend Hispanic Chamber of Commerce (Texas) Comercientes Organizados Mexico-Americanos (COMA) (Lubbock) Corpus Christi Hispanic Chamber of Commerce Dallas Hispanic Chamber of Commerce Detroit Hispanic Business Alliance El Paso Hispanic Chamber of Commerce Forth Worth Hispanic Chamber of Commerce Greater Fort Wayne Hispanic Chamber of Commerce Greater Milwaukee Avenue Chamber of Commerce (Chicago) Greater Washington Ibero-American Chamber of Commerce Hialeah Latin Chamber of Commerce and Industries Hispanic Chamber of Commerce of Greater Baytown (Texas) Hispanic Chamber of Commerce of Modesto Hispanic Chamber of Commerce of Santa Clara County Hispanic Chamber of Commerce of Stanislaus (California) Hispanic Chamber of Commerce of Travis County (Austin) Houston Hispanic Chamber of Commerce Houston InterAmerican Chamber of Commerce Indianapolis Hispanic Chamber of Commerce Interamerican Businessman Association (Miami) Latin American Chamber of Commerce of Central Jersey Latin American Chamber of Commerce of USA (CAMACOL) (Miami) Entin Business Association (Los Angeles) Village Chamber of Commerce (Chicago) PAGE 004 JUL 22 '92 12:23 FROM US TRADE REP PAGE. 005 Midwest Effort for Free Trade New York State Federation of Hispanic Chambers of Commerce Northwest Indiana Hispanic Coordinating Council Pennsylvania Hispanic Chamber of Commerce Statewide Hispanic Chamber of Commerce of New Jersey Texas Association of Mexican Chambers of Commerce (TAMACC) United States-Mexican Chamber of Commerce (Northeast) Local Abilens Hispanic Chamber of Commerce Albuquerque Hispano Chamber of Commerce Atlanta Hispanic Chamber of Commerce Bergen County Hispanic Chamber of Commerce (New Jersey) Camara da Comercio Hispana de Amarillo Camara de Comercio Latina de Elizabeth (New Jersey) Camara de Comercio Latina de la Bahia de Tampa Cen-Tex Hispanic Chamber of Commerce Centro Unido de Detailista de Puerto Rico Cermak Road Chamber of Commerce & Industry (Chicage) Chicago Cuban-American Chamber of Commerce Chicago Puerto Rican Chamber of Commerce Cincinnati Commission on Spanish Speaking Affairs Cleveland Hispanic Business Association Coastal Bend Hispanic Chamber of Commerce (Texas) Comerciantes Organizados Mexico-Americanos (COMA) (Lubbock) Corpus Christi Hispanic Chamber of Commerce Dallas Hispanic Chamber of Commerce Detroit Hispanic Business Alliance El Paso Hispanic Chamber of Commerce Forth Worth Hispanic Chamber of Commerce Greater Fort Wayne Hispanic Chamber of Commerce Greater Milwaukee Avenue Chamber of Commerce (Chicago) Greater Washington Ibero-American Chamber of Commerce Hialeah Latin Chamber of Commerce and Industries Hispanic Chamber of Commerce of Greater Baytown (Texas) Hispanic Chamber of Commerce of Modesto Hispanic Chamber of Commerce of Santa Clara County Hispanic Chamber of Commerce of Stanisiaus (California) Hispanic Chamber of Commerce of Travis County (Austin) Houston Hispanic Chamber of Commerce Houston InterAmerican Chamber of Commerce Indianapolis Hispanic Chamber of Commerce Interamerican Businessman Association (Miami) Latin American Chamber of Commerce of Central Jersey Latin American Chamber of Commerce of USA (CAMACOL) (Miami) Latin Business Association (Los Angeles) Little Village Chamber of Commerce (Chicago) JUL 21 182 17:26 PAGE 004 JUL 22 '92 12:23 FROM US TRADE REP PAGE. 006 Long Island Hispanic Charaber of Commerce Mexican American Bar Association of Los Angeles Midland Hispanic Chamber of Commerce Miami Hispanic Chamber of Commerce (CAMACOL) Milwaukee Hispanic Chamber of Commerce Milwaukee Hispanic Coalition Morris County Hispanic-American Chamber of Commerce Nicaraguan Bankers and Business Association North Pulaski Chamber of Commerce (Chicago) Odessa Mexican-American Chamber of Commerce Philadelphia Hispanic Chamber of Commerce San Antonio Hispanic Chamber of Commerce San Diego County Hispanic Chamber of Commerce San Marcos Hispanic Chamber of Commerce St. Louis Hispanic Chamber of Commerce Stockton Mexican American Chamber of Commerce (California) Tucson Metropolitan Chamber of Commerce Valley Hispanic Chamber of Harlingen (Texas) Victoria Mexican American Chamber of Commerce Westchester Hispanic Chamber of Commerce July 22 1992 Drafted by DOC Laura Buss Office of Mexico International Trade Administration (202) 377-0300 JUL 21 '92 17:27 PAGE. 005 July 20, 1992 MEMORANDUM TO JOSEPH P. DUGGAN FROM: ED WALTERS OW SUBJECT: HISPANIC BUSINESS LEADERS Jeff Vogt in Public Liaison had some very general guidance on the Hispanic Business Leaders event. He suggested broad mention of competitiveness issues, especially the importance of NAFTA in keeping an edge over foreign competition. Other notables: encouraging entrepreneurs, risk taking, the importance of small businesses and job creation, tax incentives, deficit reduction, workforce preparation and education, regulatory reform, etc. Same old business fare. He also pointed out that reg. reform has saved this nation $15- 20 billion dollars if you count government and private sector savings. I will check out some of the President's recent remarks to business leaders for some good language as well. July 16, 1992 MEMORANDUM TO JOE DUGGAN FROM: ED WALTERS DW SUBJECT: HISPANIC BUSINESS LEADERS I just met with Shiree Sanchez in Public Liaison about the Hispanic Business Leaders event July 28. She identified some contact people and some winning issues that we should tap into. In particular, she suggested that NAFTA is a popular initiative in the Hispanic community because it expands markets and breaks down language barriers with consumers. Also reg. reform and capital gains tax cuts are good issues. She said that Jeff Vogt would be able to offer guidance on the business side of this. Some important contacts: - Rick Mendoza, Senior Editor of Hispanic Business Magazine (805-682-5843), - Tony Villamil of Commerce (377-8181), - Josh Smith of the Council for Minority Business Development (523-0030), - Joe Lira, Director of the Minority Business Development Association in Commerce (377-5061). I have attached a copy of Hispanic Business magazine (which points out that the top 500 Hispanic businesses experienced 10.1 percent growth in this "recession") and a propaganda pack from the Minority Business Development Agency. July 13, 1992 MEMORANDUM FOR JOE DUGGAN FROM: ED WALTERS SUBJECT: HISPANIC BUSINESS LEADERS Please find attached the President's remarks at the Forum of the Americas event April 23, 1992, as well as an AP wire story the next day comparing the Bush and Clinton appeals to the Hispanic community. I will find some opposition stuff tomorrow. 690 Apr. 23 / Administration of George Bush, 1992 Administration of George Bush, 1992 / Apr. 23 691 Remarks at the Signing Ceremony of the new globalization of trade will be for the Paper Market Access world-class quality, competitive pricing, and dent's house more than 200 years ago amid One of the things I enjoy the most is taking Agreement With Japan of course, excellent service. apple orchards owned by a colonial farmer our foreign visitors over here when the tours April 23, 1992 This alliance also recognizes that inter- named Peerce. Being a surveyor by trade, are on. And I'll never forget the reaction active partnerships like this one strengthen Washington knew what he was doing. Abigail when I introduced a monarch to the visiting The President. May I thank Ambassador each of us and fire up the engine of economic Adams, the first lady to live here, wrote, tourists coming through here. And one of the Kuriyama for being here with us today, Ja- growth. At the same time, it strengthens the "This is a beautiful spot. And the more I view kids started yelling, "It's a real live king, Dad. pan's Ambassador to the United States, and relationship between us and makes the world it, the more I am delighted with it." It's a real live king." [Laughter] And it was also Mike Moskow up here. Everybody a better, friendlier place for our children and It was Thomas Jefferson who suggested a a good experience for the real live king to knows him, and we're grateful to him for his our grandchildren. national competition to design the Presi- see how the people consider this properly participation in all of this. So I am delighted to be here. And I wel- dent's house. Washington himself chose the their house. Today does mark a milestone for both the come all of you from industry and from the design of the winner, James Hoban, an Irish One of the great blessings of the Presi- United States and Japan, a ceremony rep- diplomatic corridors. And let me just say in immigrant then living in Charleston. Hoban's dency, obviously, is to live within the walls resenting another step toward our two coun- conclusion, I view this relationship between plan won out over grander designs, some of of this house, to roam its hallways, to absorb tries becoming equal partners in trade. The the U.S. and Japan as very, very important. which included vast central courts, rotundas, its history, and to be reminded at every turn agreement I sign today is an important, posi- And I will do my level-best as President of and-here's an intriguing idea-a draped of the noble men who have lived here and tive development stemming from our Janu- the United States to keep it on a stable, for- throne for the President. [Laughter] His de- of their families. But a President can never, ary trip to Japan. ward-looking basis. It is essential, and it is sign was plainer than the others, more befit- obviously, be more than a caretaker or a ten- And I am pleased that since January, in our best interest that it remain strong. ting the house of a democratic leader, but ant in this house, for the White House be- American companies have begun to enjoy a So, Mr. Ambassador, you are entitled to it was still stately and dignified, as Washing- longs, as it has for 200 years, to every Amer- more positive atmosphere for doing business equal time, or should we-why don't you go ton wanted. ican. in Japan. The broader commitment which ahead, and then— Incidentally, when he won the contest, And we are very grateful, Barbara and I Prime Minister Miyazawa and I made during Ambassador Kuriyama. Well, thank you Hoban began another Capital tradition. He both. And we pray that God continues to my visit was the Tokyo Declaration, and an very much, Mr. President. bless this house as He blesses the United promptly leaked the news to his hometown important part that was the Global Partner- The President. Thank you for being with papers in Charleston. And after many revi- States of America. Thank you all very much ship Plan of Action, an agreement to us, sir. sions to the original design and after some for coming. And now, Mike, do the honors. strengthen trade between our two countries, [At this point, Ambassador Kuriyama spoke.] unfortunate redecorating by British troops in all part of our efforts to make the relationship [At this point the stamp was unveiled.] 1814, the President's house assumed the between us a true partnership. This is a very The President. Thank you, sir, very much. graceful form that we celebrate today. That concludes our brief ceremony, but important relationship. And that all will en- Now I will witness, if you all do the signing. sure that U.S. firms have the same degree And 1992 marks the 200th anniversary of thank you all very much for coming. of access to the Japanese market that Japa- this magnificent building. The cornerstone Note: The President spoke at 11:49 a.m. in Note: The President spoke at 3:30 p.m. in nese firms enjoy in the United States. the Roosevelt Room at the White House. Am- was laid in October of 1792, just a few yards the Rose Garden at the White House. In his The Paper Market Access Agreement will bassador Takakazu Kuriyama of Japan and from here, though the stone itself, I'm told remarks, he referred to Acting Postmaster increase opportunities and sales for foreign by the historians and the custodians, has Deputy U.S. Trade Representative Michael General Michael S. Coughlin. never been found. You'll notice we're restor- firms exporting paper products into Japan. H. Moskow signed the agreement. And hereafter, the Government of Japan will ing the exterior stone walls of the Residence encourage its paper distributors, converters, as part of the anniversary, a celebration that printers, and major corporate users to in- includes commemorative books and museum Remarks to the Forum of the crease imports of competitive foreign paper Remarks on Presentation of the exhibitions and symposiums. The far side of Americas products. That official encouragement will the house has been stripped down and paint- White House Commemorative Stamp open the way for America's paper industry ed. And I'm told again by the historians that April 23, 1992 April 23, 1992 to export its products into Japan's $27 billion this is the first time that the building has Please be seated. And David, thank you, market. Thank you, Mike, very much. And greet- been taken down to its original stone. sir. And thank you for your really vital work Today's action is good for all concerned: The celebration also includes a commemo- ings to all of you. May I greet Edward in rallying the private sector and congres- good for the Japanese consumer, good for Horgan and Kenneth Hunter, Associate Post- rative postage stamp which is what brings us sional support for the North American free American industry, and good for the Amer- masters General; Mike, thank you, sir, for the here this afternoon. And I thank everyone trade agreement, for the Enterprise for the ican worker. And it is also an important step introduction and those remarks; old friend, who worked so hard to make this stamp pos- Americas Initiative. And let me say to his forward in our large global trading system. George Haley, here, the Chairman of the sible, particularly the former Postmaster many friends here that David's personal in- As William McKinley said back in 1897, Postal Rate Commission. General Anthony Frank, who authorized it; volvement has been a major factor in the suc- "Good trade ensures good will." And the And welcome to Peerce Farm, or as we Jack Ruther, who we just met, who did the cess we've enjoyed so far with both of these partnership between the United States of call it nowadays, the White House. George superb design. And I hope the stamp serves significant initiatives. And I also want to pay America and Japan ensures that the hallmark Washington selected this site for the Presi- as a reminder to every American that this my respects to another old friend, Ambas- place is truly the people's house. sador George Landau of the Americas Soci- 692 Apr. 23 / Administration of George Bush, 1992 Administration of George Bush, 1992 / Apr. 23 693 ety, and Antonio Del Valle of the Business computers, one of our strongest export earn- The new spirit was demonstrated in June have in Minneapolis. And with new tech- Council of Latin America, and Tom Aquino ers. Trade covered today by today's deregula- of last year, when the OAS General Assembly nologies, creators of services in Denver may of the Business Council on National Issues. tion amounts to about $2.5 billion. passed a resolution designed to strengthen be able to tap markets in Santiago as readily And I am grateful for all your leadership. Here in our own hemisphere, the Ameri- the international response to threats to de- as those in Chicago. I'll work to assure that I understand also-and I can't see too well cas have launched an era of far-reaching and mocracy. Consolidating this revolution will Government protection and excessive regula- out here with these bright lights-that some- hopeful change. We've made history, all of not be easy; we understand that. Millions of tion don't stand in their way. To do this, we'll where out there sits an old friend, a former us. We're well on our way to creating some- people in our hemisphere are still mired in have to overcome the stunted vision of some colleague at the United Nations who went thing mankind has never seen, a hemisphere poverty and political alienation. Recent special interests. And I am determined that on to greater heights than being an ambas- events in Haiti, Venezuela, and Peru remind we can and will do exactly that. wholly free and democratic, with prosperity sador there, an old friend, Javier de Cuellar, flowing from open trade. us that democracy is still fragile and faces I've made it a top priority to conclude a is with us. And I am just delighted that he continued dangers. In all our nations, power- free trade agreement designed to remove all From Mexico City to Buenos Aires, that could be here. And I just wish I could see ful special interests cling to old ideas and tariffs on trade between the United States, him. Javier? There he is. vision is becoming a reality. For the first time privileges, promote protectionism. They re- Canada, and Mexico. This agreement will And may I particularly welcome all of our in many years, more private capital is flowing sist expanded trade. build on our historic free trade agreement into the Americas for new investments than guests from south of the Rio Grande, leaders For the diehards, for Castro's totalitarian with Canada. The success of the agreement from both the public and the private sectors. is flowing out. In country after country, the regime, for those in the hemisphere who with Canada demonstrates how free trade I see several ambassadors here and many hyperinflation that literally devastated the re- would turn the clock back to military dicta- can benefit all concerned. others that are in the Government sector but gion's economies, particularly its poor, has torship, for the stubborn holdouts for eco- We cannot achieve this breakthrough by so many from the private sector. And we sa- been halted. In nearly every nation, real nomic isolation, I want to make one point equivocating between the status quo protec- lute you for your leadership. And let me just growth has returned. A growing number of clear: Hundreds of millions of Latin Ameri- tionists and the movement for freedom and say this: Public or private, from the United nations are taking advantage of the Brady cans share a faith in human freedom and op- change. Some suggest that we can hide in States, we are glad to be your partners. Plan, an important initiative of our adminis- portunity. And I stand with them. And as a cocoon of protection and pretend still to And I can't think, really, of a more impor- tration designed to reduce the debt burden long as I am President of this great country, benefit from the fresh air of competition. tant moment than now to convene again this of our neighbors and set the stage for the the United States will devote its energies to Well, if there's ever an audience that under- Forum on the Americas. Over the last 3 renewal of growth. Barriers to trade and in- the true and lasting liberation of the people stands this, you and I know that is simply years, we've seen our world literally trans- vestment are coming down. Go to the finan- of the Western Hemisphere. wrong-headed. Our economic future must formed: the Berlin Wall torn down and Ger- cial centers of the world, and you'll get the Sharing the democratic spirit makes a dif- not depend on those who pay lip service to many peacefully unified; the people of East- same message: One of the most exciting re- ference on every issue we care about. De- free trade but full service to powerful special ern Europe and the Soviet Union liberated gions for investment is Latin America. mocracy's rebirth led Argentina and Brazil interests. We cannot have it both ways. from communism; and South Africa's historic Alongside this economic revolution, we to join hands to halt the spread of nuclear In our own War for Independence, those vote to reject apartheid. And we've seen Arab have witnessed and played a vital role to arms. Democracy energized Brazil to slow who took this kind of stand were known as neighbors negotiating for the first time face shape a political revolution just as powerful. deforestation of the Amazon Rain Forest. the "summer soldiers." And they wanted the to face with Israel; and a worldwide coalition Two years after we initiated Operation Just Democracy gave Argentina the will to stop glory of the revolution without showing the under the banner of the United Nations Cause, Panama has replaced the repression the Condor ballistic missile program fi- gumption to stand for freedom even in tough stand up and turn back Iraqi aggression of the Noriega era with freedom and democ- nanced by Libya and Iraq. Colombia's de- times. Our stand is clear; my stand is clear: against Kuwait. And there's been a profound racy. In El Salvador, after 12 years of civil mocracy is leading the fight against the drug Open trade is vital to this country, to the change with meaning for every man, woman, war, our consistent efforts have brought trade and working to restore its economic vi- United States, and every bit as vital as domes- and child on the face of the Earth. And we peace. In Nicaragua, we succeeded in our tality. The restored democracy in Panama has tic reforms to renew our system of education, have drastically-and this is one I take great goal of restoring peace and democracy passed tough new laws to combat money health care, Government, and administration pleasure in having been a small part of-we through free elections. And throughout laundering, and it's working to renew its im- of justice. have drastically reduced the threat of nuclear Central America, civilian presidents hold of- portance as an East-West trade corridor. A free trade area comprising the United war. fice, and the principle of consent of the gov- Make no mistake: political and economic States, Mexico, and Canada would be the And just today, the United States took erned is now firmly established. And in South freedom are linked; they are inseparable. largest market in the entire world: 360 mil- steps to facilitate trade in high technology America, Chile and Paraguay have rejoined And just as people have a God-given right lion consumers in a $6 trillion, $6 trillion goods, an initiative made possible by the the community of democracies. to choose who will govern them, they also economy. Mexico-and I salute its President, changed strategic environment and the This peaceful revolution throughout the must be free to make their own economic it's business people here tonight-Mexico is peaceful rebirth of freedom in the formerly Americas did not happen by accident. It is choices. When we lift barriers to economic among the fastest growing national markets Communist lands. We relaxed trade restric- the work of a new generation of courageous freedom within and among our countries, we for U.S. exports today. And over the last 3 tions on exports that served us well during and committed democratic leaders with unleash powerful forces of growth and cre- years alone, American merchandise exports the cold war era but are no longer necessary whom we have worked closely in pursuit of ativity. to Mexico have increased by two-thirds, two- in our new world. And our actions today will common goals, those leaders supported by Before I leave office I want manufacturers thirds. Our exports of autos, auto parts, tele- eliminate requirements for thousands of ex- this dynamic private sector that is so beau- in Cleveland to enjoy virtually the same ac- communications equipment to Mexico have port licenses, including many that affected tifully represented here tonight. cess to markets in Monterrey as they now doubled. And while members of this audi- 694 Apr. 23 / Administration of George Bush, 1992 Administration of George Bush, 1992 / Apr. 23 695 ence may be aware of this, I doubt it is widely Now, to other friends here let me say this: I have helped persuade our allies in Eu- and Asia. All of our aims are consistent with known in the United States that two-thirds The North American free trade agreement rope and Japan to contribute nearly two- the global policies of GATT. : of all imports into Mexico come from the is only a beginning. Our Enterprise for the thirds of a $1.5 billion fund to help Latin And I would just like to commend the su- United States. Americas Initiative already has made note- American reformers. This fund, administered perb leadership of Arthur Dunkel, GATT's It's not just the border States that profit worthy progress to open markets, expand in- by the Inter-American Development Bank, Director General, who spoke to you earlier from this growth. During my Presidency, 45 vestment flows, reduce official debt, and would help people privatize old state enter- today. And I want to assure you I urgently of our 50 States have increased their exports strengthen the environment throughout the prises at the grass roots, with job retraining want to open up global markets through suc- to Mexico. Our top 10 exporters to Mexico hemisphere. and small business loans. But Congress has cess with the Uruguay round. We all have today include Michigan, Illinois, New York, The Enterprise for the Americas Initiative refused to vote a penny for the U.S. share. a stake, a big stake, in a successful conclusion Louisiana, Pennsylvania, Florida, and Ohio, reflects a revolution in thinking. Through this I will keep on fighting for these vital pro- of the Uruguay round of the GATT. as well as Texas, California, and Arizona, initiative, the United States is not seeking to grams of the Enterprise for the Americas Ini- And if the equivocators and the protection- those border States. impose our ideas on our neighbors. Rather, tiative until Congress demonstrates the vision ists and the pleaders for special interests Trade with Mexico already supports hun- our program is designed to empower them and fortitude to provide the support they de- want to debate this, bring them on. I will dreds of thousands of U.S. jobs. And just as to succeed with free market economic re- serve. And if we can invest in the trans- take the case for increased trade to the peo- an example: Thousands of good jobs in War- forms they've chosen on their own, ideas de- formation of Eastern Europe and the old So- ple in every corner of the United States of ren, Ohio, and Rochester, New York, depend veloped in Latin America for Latin Ameri- viet Union, and we must do so, then we can America. And I will make this abundantly on sister plants in Mexico to keep their prod- cans. and must invest in the efforts of our closest clear: Free trade means more exports, more ucts competitive. A North American free The courageous Latin American leaders neighbors on their peaceful road to true lib- investment, more choices, more jobs for trade agreement would create thousands who are reforming their economies and eration and prosperity. Americans. Our great country is the number more. It would create competitive effi- breaking down barriers to trade and invest- The United States' economic destiny is one exporter in the world, over $422 billion ciencies and economies of scale that will help ment need our support. And they are the true linked to Latin America's. No army of protec- last year. Imagine that, $422 billion. And we American companies compete in world mar- liberators of our era. True success will mean tionists can change that. When Latin Amer- intend to pursue trade policies to keep that kets. opening up statist systems formerly rigged to ica suffered its debt crisis of the early growth up now and in the future. And we will knock down barriers wherever we find Free trade with Canada and Mexico will protect wealthy elites and closed to working eighties, 1980's, we suffered through a cor- make all of us winners in economic endeavor, responding drop in trade. We did. If you them to open markets, for instance, for our people and the poor. Free market reforms but our relationship goes well beyond trade. don't believe me, ask Caterpillar workers computer software, movies, books, and phar- will banish burdensome regulations that now We share borders that span the continent. prevent the urban poor from starting new from Illinois or employees from Cessna in maceuticals. We will fight hard against pro- tectionism both at home and abroad. We're linked by centuries-old ties of family businesses or campesinos from gaining access Kansas. Ask them if they suffered when our and culture. I share a warm friendship with best customers in Latin America were in cri- And five centuries ago, a man of courage to credit and title to their land. Economic and vision set sail from Europe searching for Prime Minister Brian Mulroney of Canada, reform must also include honest government. sis. new trade routes and opportunities. And he whom I consult frequently. I count President Corruption is the enemy of both growth and With the rise of democracy and economic defied the timid counsel of those who said Carlos Salinas also as a dear friend. And he democracy. New investment will flow only reform, U.S. exports to Latin America have the Earth was flat. Christopher Columbus' and I have been promoting the "spirit of where the rule of law is secure, the courts surged by nearly one-third in just 2 years, voyage to the Americas transformed human Houston" ever since our summit meeting just are fair, and bidding processes are open to from $49 billion in 1989 to $63 billion in history. Columbus was an entrepreneur, and after both of us were elected in 1988. And all. 1991. This is a much faster rate of growth the risk he took 500 years ago continues to both President Salinas and Prime Minister To support reformers, to realize the hope- than for our exports to Asia or Europe. It pay off abundantly today. And today, we still Mulroney are bold and imaginative leaders, ful new vision in Latin America, the United points to the fact that a stable, prosperous have to combat the flat-Earth mentality, the and I am committed to working with them States Congress must meet its responsibility. Latin America is a natural market for United mind-set that urges us to barricade our bor- to forge enduring friendship among our I asked Congress to take long overdue action, States goods and services. Strengthening our ders against competition, to shut off the free countries, based on open trade, cooperation, to invest $310 million in this fiscal year under neighbors' economies will result in more ex- exchange of food and machinery and skills and mutual respect. the Enterprise for the Americas Initiative. ports and more good jobs for people in the and ideas. Now, you may have heard some suggest With this, we could write off more than $1 United States. But the future does not belong to the sta- that politics will dictate delaying the North billion in the hemisphere's official debts and When any of us speak with our friends out- tus quo. It is the legacy of people like your- American free trade agreement until after generate millions of dollars to preserve the side the Western Hemisphere, we need to selves, people with far-sighted vision and the election. Well, let me say this: These environment. But regrettably, Congress has assure them as clearly as possible there is then a spirit of enterprise. The future await- voices are not speaking for me. The time of refused to approve any funds for this pur- nothing exclusionary in our vision of open ing the Americas is a time of rediscovery, opportunity is now. I have instructed our ne- pose. Congress apparently doesn't believe in trade and economic integration in our hemi- a time for empowering the poor through new gotiators to accelerate their work. I believe return on investment, but I do. And our sphere. Our aim is simply to lower barriers investment, trade, and growth, a time for cul- we can conclude a sound, sensible deal be- truckers and railroad people do. And our to economic freedom within and among the tural renewal. Our efforts and the efforts of fore the election. I want to sign a good agree- auto and electronics makers do, as do our nations of the Western Hemisphere, not, I millions of citizens of the Americas can ment as soon as it is ready. And there will environmental engineers and many, many repeat, not to create any barriers between achieve new gains for honest, democratic, be no delay because of American politics. more. ourselves and the nations of Africa, Europe, limited Government. And together, we can 696 Apr. 23 / Administration of George Bush, 1992 Administration of George Bush, 1992 / Apr. 24 697 usher in a new order of peace, a new time Proclamation 6423-National Farm of prosperity, both animated by personal which are far greater than the billions of dol- United States of America the two hundred Safety Week, 1992 freedom. lars in lost productivity and medical ex- and sixteenth. & April 24, 1992 penses-warrant a strengthened commit- George Bush Thank you all very much for what you are ment to improved safety measures and to doing to strengthen free trade in this hemi- By the President of the United States healthier life-styles. [Filed with the Office of the Federal Register, sphere. And let me say again how grateful of America The solutions are relatively simple and in- 2:04 p.m., April 24, 1992] I am to David and the other leaders of this expensive, and they begin with the whole wonderful organization for vitalizing and get- A Proclamation family. For example, farmers and ranchers Note: This proclamation will be published in ting that public sector involved in all of these can reduce their risk of developing der- the Federal Register on April 28. decisions. It is an absolutely essential ingredi- The United States is no longer a primarily matitis, lung disease, hearing loss, and other ent if we are going to succeed. And of course, agrarian society, but we Americans still rely common occupational illnesses by wearing it is mutually beneficial. on our farmers and ranchers as heavily as protective gloves, respirators, and ear plugs we did more than 200 years ago. By helping when the job calls for it. Empty pesticide Remarks at the Presentation Now, I heard you were having broccoli for to feed and to clothe millions of workers and containers should be disposed of safely, and Ceremony for the National Crime dinner, so I'm out of here. Many, many their families, members of the agricultural leftover chemicals should be stored out of Victims' Rights Awards thanks. And may God bless all of you. industry have enabled this country to achieve the reach of children. In addition to being April 24, 1992 the world's highest standards of health and given clear and consistent examples of pru- Note: The President spoke at 8 p.m. at the productivity. In today's expanding global dence and caution-be it at work, on the Please be seated, and welcome. Welcome Sheraton-Washington Hotel. In his remarks, economy, which is creating opportunities to road, or at play-youngsters should be taught to the Rose Garden on this beautiful Friday. he referred to David Rockefeller, chairman market an ever-wider array of agricultural We're here to commemorate National Crime the dangers of playing on or near farm ma- of the Americas Society. A tape was not avail- products and by-products, our farmers and chinery. Children should also be encouraged Victims' Rights Week. I first salute the Attor- able for verification of the content of these ranchers have an increasingly important role to recognize health hazards such as dust, ney General, who is doing a superb job for to play in promoting our Nation's competi- our country in the whole area of law enforce- remarks. noise, toxic fumes, and extreme exposure to tiveness and strength. Because we depend ment, Bill Barr, standing here. May I also the sun, and every member of every farm on these enterprising individuals for our daily single out Director Sessions, the head of the family should know what to do in the event sustenance and for so much more, it is fitting FBI, with us today. Bill, welcome, sir. of an emergency. Only when injury and ill- that we set aside a special week to promote And to others, may I just say that the peo- ness prevention becomes a daily priority for their health and safety. ple seated in this garden are representatives Nomination of Richard Goodwin all those who live and work on our Nation's of one of this country's strongest traits, com- Capen, Jr., To Be United States Thanks in large part to public awareness farms and ranches can we reap a full harvest passion. And this compassion is the driving Ambassador to Spain campaigns such as National Farm Safety of better health and safety. force behind the improvements that are bal- April 23, 1992 Week, we have made notable progress in our Now, Therefore, I, George Bush, Presi- ancing the scales of justice, strengthening the efforts to protect the lives and health of dent of the United States of America, by vir- rights of the crime victims. For far too long, The President today announced his inten- America's agricultural workers. According to tue of the authority vested in me by the Con- the agonizing experiences each victim must tion to nominate Richard Goodwin Capen, the National Safety Council, a private, non- stitution and laws of the United States, do endure have been overlooked. The seldom- Jr., of Florida, to be Ambassador to Spain. profit organization that is dedicated to pro- hereby proclaim the week of September 20 realized truth is that the crime is just the He would succeed Joseph Zappala. moting public safety, the number of work- through September 26, 1992, as National beginning of a process that will last months, related deaths among agricultural workers Farm Safety Week. I urge all those who live Currently Mr. Capen serves as a consult- if not years or lifetimes. has dropped over the past 10 years from an and work on our Nation's farms and ranches The award winners we honor today realize ant for Knight-Ridder, Inc. Prior to this, he served as vice chairman and director for average of 54 per 100,000 to 42 per 100,000. to make health and safety an integral part this fact. They've set out to improve, protect, The Council reports that nonoccupational ac- of their daily activities. I call on organizations and strengthen the rights of crime victims. Knight-Ridder, Inc., in Miami, FL, 1989-91; cidents in rural areas have also decreased. that serve agricultural workers and their fam- As Attorney General Barr will explain shortly, as director of Knight-Ridder, Inc., 1987-91; ilies to sponsor or to support rural health and each and every one of them is a hero worthy and as chairman and publisher of the Miami Despite such encouraging trends, how- safety programs, and I encourage all Ameri- of saluting in this war on crime. But before Herald, 1983-89. From 1979 to 1982, Mr. ever, far too many farmers and ranchers con- cans to observe this week with appropriate the Attorney General begins the presen- Capen served as senior vice president for op- tinue to suffer from injuries and illnesses that activities as an expression of our gratitude tations, I would like to take this opportunity erations of Knight-Ridder, Inc. could be prevented. Improper and prolonged for the many contributions that men and to reinforce our administration's commit- exposure to chemicals and environmental Mr. Capen graduated from Columbia Col- women in agriculture make to our individual ment to the rights of crime victims. This ad- elements is having a harmful effect on the lege (B.A., 1956). He was born July 16, 1934, and collective well-being. ministration, in particular the Department of health of many agricultural workers and thus in Hartford, CT. Mr. Capen served in the In Witness Whereof, I have hereunto set Justice, has fought hard to make strides on on their livelihood as well. Serious accidents U.S. Navy, 1956-59. He is married, has three are often the cruel price of carelessness and my hand this twenty-fourth day of April, in behalf of the victims in the courtroom. children, and resides in Miami, FL. haste. The costs in human terms alone- the year of our Lord nineteen hundred and In 1991, we gained a landmark Supreme ninety-two, and of the Independence of the Court decision for crime victims in the case PAGE 2 1ST STORY of Level 1 printed in FULL format. The Associated Press' The materials in the AP file were compiled by The Associated Press. These materials may not be republished without the express written consent of The Associated Press. April 24, 1992, Friday, AM cycle SECTION: Political News LENGTH: 666 words HEADLINE: Bush, Clinton Offer Hispanic Group Different Economic Views BYLINE: By TERENCE HUNT, AP White House Correspondent KEYWORD: Bush- Clinton BODY: Offering starkly opposing views of the economy, President Bush and Democratic challenger Bill Clinton made long-distance appeals Friday for support of Hispanic Americans, a key voting bloc in the presidential race. In rare back-to-back appearances, Clinton and Bush spoke via satellite hookups to the National Association of Hispanic Journalists, meeting in Albuquerque, N.M. Bush was at the White House; Clinton was in Columbus, Ohio. "The economic news is a little better," Bush said. "And as that turns around, and I'm confident it will, I think we'll see this country coming together, I think we 11 see a return to a little more optimism." Clinton, however, charged that "the middle class is collapsing, literally reducing in numbers while more people work harder for lower wages. We're not moving in the right direction. We have lost our economic leadership." The audience of 700 people listened politely to both candidates. There was some hissing and laughter when Bush said Hispanic families epitomize family values, noting that he has three Hispanic American grandchildren. He got the same reaction when he said he would continue to name conservatives to the federal bench. Traditionally, Hispanic Americans split 2-1 for Democrats, though Republicans hope to make gains, particularly with the growing Hispanic American middle class. "I think the Hispanic community might well determine the outcome of this presidential election," Clinton said. Clinton seized on Bush's references to family values. At a news conference afterward, he said the president is fond of promoting family values in campaign rhetoric but has done little to help struggling families. "What I would like to point out is the president has an obligation to go beyond loving his own family and loving the idea of family and recognize what has happened to American families," Clinton said. LEXIS·NEXIS® LEXIS·NEXIS® LEXIS:NEXIS® Services of Mead Data Central, Inc. Recyclable PAGE 3 The Associated Press, April 24, 1992 He said families with an unemployed breadwinner have "agony at dinner every night - that's a violation of family values." Referring to the 38 million people without health insurance, he said "that does violence to family values." Clinton's lone rival for the Democratic nomination, Jerry Brown, was invited to speak but never replied to the invitation, said Paula Maes, a convention organizer. In his remarks, Bush portrayed himself as a statesman, saying that one of his top priorities was to "consolidate the peaceful revolution that's taken place in Latin America over the past decade. I am determined to keep working to promote and protect democracy in Latin America." He pledged anew to fight for a free trade agreement with Mexico, and reiterated his belief that communist-ruled Cuba soon will be freed. "I expect one day soon, after the inevitable fall of the Castro dictatorship, to be the first president of the United States to visit the free soil of Cuba," Bush said. On the question of statehood for Puerto Rico, Bush said he supports statehood, but that the matter should be left to the people of Puerto Rico. Clinton said, "let the people vote make their own decision and honor whatever decision they make." In large measure, Bush and Clinton delivered elements of their standard stump speeches. The president ignored Clinton, but the Democrat repeatedly attacked Bush, particularly on the economy. He said the Reagan-Bush administrations had produced a massive redistribution of wealth to the richest 1 percent of Americans and an explosion of poverty and social problems. Bush said he looks at every piece of legislation "to see that it does nothing but strengthen the American family We must strengthen the family values." Clinton said that in his administration, there "won't be just a Hispanic spot in the Cabinet or a black spot in the Cabinet or a female spot in the Cabinet," rather the Cabinet will be "deep and diverse," more 50 than any other president. Bush pledged to be "dedicated in rededicating our administration to fair play for our Hispanic American citizens." TM LEXIS·NEXIS® LEXIS·NEXIS® LEXIS:NEXIS® Services of Mead Data Central, Inc. Recyclable FORUM OF THE AMERICAS SHERATON WASHINGTON HOTEL WASHINGTON, D.C. THURSDAY, APRIL 23, 1992 8:00 P.M. THANK YOU DAVID, AND THANK YOU FOR YOUR VITAL WORK IN RALLYING PRIVATE SECTOR AND CONGRESSIONAL SUPPORT FOR THE NORTH AMERICAN FREE TRADE AGREEMENT AND THE ENTERPRISE FOR THE AMERICAS INITIATIVE. YOUR PERSONAL INVOLVEMENT HAS BEEN A MAJOR FACTOR IN THE SUCCESS WE'VE ENJOYED so FAR WITH BOTH INITIATIVES. I ALSO WANT TO PAY MY RESPECTS TO GEORGE LANDAU, ANTONIO DEL VALLE, AND TOM D'AQUINO. 11 - 2 - I CAN'T THINK OF A MORE IMPORTANT MOMENT THAN NOW TO CONVENE THIS FORUM ON THE AMERICAS. OVER THE LAST THREE YEARS, WE HAVE SEEN OUR WORLD TRANSFORMED: THE BERLIN WALL TORN DOWN AND GERMANY PEACEFULLY UNIFIED; THE PEOPLE OF EASTERN EUROPE AND THE SOVIET UNION LIBERATED FROM COMMUNISM; AND SOUTH AFRICA'S HISTORIC VOTE TO REJECT APARTHEID. WE HAVE SEEN ARAB NEIGHBORS NEGOTIATING FOR THE FIRST TIME FACE-TO-FACE WITH ISRAEL; AND A WORLDWIDE COALITION, UNDER THE BANNER OF THE UNITED NATIONS, STAND UP, AND TURN BACK, IRAQI AGGRESSION AGAINST KUWAIT. AND THERE'S BEEN A PROFOUND CHANGE WITH MEANING FOR EVERY MAN, WOMAN AND CHILD ON EARTH: WE'VE DRASTICALLY REDUCED THE THREAT OF NUCLEAR WAR. 11 - 3 - JUST TODAY, THE UNITED STATES TOOK STEPS TO FACILITATE TRADE IN HIGH TECHNOLOGY GOODS, AN INITIATIVE MADE POSSIBLE BY THE CHANGED STRATEGIC ENVIRONMENT AND THE PEACEFUL REBIRTH OF FREEDOM IN THE FORMERLY COMMUNIST LANDS. WE RELAXED TRADE RESTRICTIONS ON EXPORTS THAT SERVED US WELL DURING THE COLD WAR ERA -- BUT ARE NO LONGER NECESSARY IN OUR NEW WORLD. OUR ACTIONS TODAY WILL ELIMINATE REQUIREMENTS FOR THOUSANDS OF EXPORT LICENSES, INCLUDING MANY THAT AFFECTED COMPUTERS - ONE OF OUR STRONGEST EXPORT EARNERS. TRADE COVERED BY TODAY'S DEREGULATION AMOUNTS TO ABOUT $2.5 BILLION DOLLARS. HERE IN OUR OWN HEMISPHERE, THE AMERICAS HAVE LAUNCHED AN ERA OF FAR-REACHING AND HOPEFUL CHANGE. WE HAVE MADE HISTORY. WE'RE WELL ON OUR WAY TO CREATING SOMETHING MANKIND HAS NEVER SEEN: A HEMISPHERE WHOLLY FREE AND DEMOCRATIC, WITH PROSPERITY FLOWING FROM OPEN TRADE. - 4 - FROM MEXICO CITY TO BUENOS AIRES, THAT VISION IS BECOMING A REALITY. FOR THE FIRST TIME IN MANY YEARS, MORE PRIVATE CAPITAL IS FLOWING INTO THE AMERICAS FOR NEW INVESTMENTS THAN IS FLOWING OUT. IN COUNTRY AFTER COUNTRY, THE HYPERINFLATION THAT DEVASTATED THE REGION'S ECONOMIES, PARTICULARLY ITS POOR, HAS BEEN HALTED. IN NEARLY EVERY NATION, REAL GROWTH HAS RETURNED. A GROWING NUMBER OF NATIONS ARE TAKING ADVANTAGE OF THE BRADY PLAN -- AN IMPORTANT INITIATIVE OF MY ADMINISTRATION DESIGNED TO REDUCE THE DEBT BURDEN OF OUR NEIGHBORS AND SET THE STAGE FOR THE RENEWAL OF GROWTH. BARRIERS TO TRADE AND INVESTMENT ARE COMING DOWN. GO TO THE FINANCIAL CENTERS OF THE WORLD AND YOU WILL GET THE SAME MESSAGE: ONE OF THE MOST EXCITING REGIONS FOR INVESTMENT IS LATIN AMERICA. - 5 - ALONGSIDE THIS ECONOMIC REVOLUTION, WE HAVE WITNESSED AND PLAYED A VITAL ROLE TO SHAPE A POLITICAL REVOLUTION JUST AS POWERFUL. TWO YEARS AFTER WE INITIATED OPERATION JUST CAUSE, PANAMA HAS REPLACED THE REPRESSION OF THE NORIEGA ERA WITH FREEDOM AND DEMOCRACY. IN EL SALVADOR, AFTER 12 YEARS OF CIVIL WAR, OUR CONSISTENT EFFORTS HAVE BROUGHT PEACE. IN NICARAGUA, WE SUCCEEDED IN OUR GOAL OF RESTORING PEACE AND DEMOCRACY THROUGH FREE ELECTIONS. THROUGHOUT CENTRAL AMERICA, CIVILIAN PRESIDENTS HOLD OFFICE, AND THE PRINCIPLE OF CONSENT OF THE GOVERNED IS NOW FIRMLY ESTABLISHED. AND IN SOUTH AMERICA, CHILE AND PARAGUAY HAVE REJOINED THE COMMUNITY OF DEMOCRACIES. - 6 - THIS PEACEFUL REVOLUTION THROUGHOUT THE AMERICAS DID NOT HAPPEN BY ACCIDENT. IT IS THE WORK OF A NEW GENERATION OF COURAGEOUS AND COMMITTED DEMOCRATIC LEADERS WITH WHOM WE HAVE WORKED CLOSELY IN PURSUIT OF COMMON GOALS. THE NEW SPIRIT WAS DEMONSTRATED IN JUNE OF LAST YEAR, WHEN THE O.A.S. GENERAL ASSEMBLY PASSED A RESOLUTION DESIGNED TO STRENGTHEN THE INTERNATIONAL RESPONSE TO THREATS TO DEMOCRACY. CONSOLIDATING THIS REVOLUTION WILL NOT BE EASY. MILLIONS OF PEOPLE IN OUR HEMISPHERE ARE STILL MIRED IN POVERTY AND POLITICAL ALIENATION. RECENT EVENTS IN HAITI, VENEZUELA, AND PERU REMIND US THAT DEMOCRACY IS STILL FRAGILE AND FACES CONTINUED DANGERS. IN ALL OUR NATIONS, POWERFUL SPECIAL INTERESTS CLING TO OLD IDEAS AND PRIVILEGES, PROMOTE PROTECTIONISM, AND RESIST EXPANDED TRADE. - 7 - FOR THE DIEHARDS -- FOR CASTRO'S TOTALITARIAN REGIME, FOR THOSE IN THE HEMISPHERE WHO WOULD TURN THE CLOCK BACK TO MILITARY DICTATORSHIP, FOR THE STUBBORN HOLDOUTS FOR ECONOMIC ISOLATION -- I WANT TO MAKE ONE POINT CLEAR: HUNDREDS OF MILLIONS OF LATIN AMERICANS SHARE A FAITH IN HUMAN FREEDOM AND OPPORTUNITY. AND I STAND WITH THEM. AS LONG AS I AM PRESIDENT, THE UNITED STATES WILL DEVOTE ITS ENERGIES TO THE TRUE AND LASTING LIBERATION OF THE PEOPLE OF THE WESTERN HEMISPHERE AM SHARING THE DEMOCRATIC SPIRIT MAKES A DIFFERENCE ON EVERY ISSUE WE CARE ABOUT: DEMOCRACY'S REBIRTH LED ARGENTINA AND BRAZIL TO JOIN HANDS TO HALT THE SPREAD OF NUCLEAR ARMS. DEMOCRACY ENERGIZED BRAZIL TO SLOW DEFORESTATION OF THE AMAZON RAINFOREST. DEMOCRACY GAVE ARGENTINA THE WILL TO STOP THE CONDOR BALLISTIC MISSILE PROGRAM FINANCED BY LIBYA AND IRAQ. COLOMBIA'S DEMOCRACY IS LEADING THE FIGHT AGAINST THE DRUG TRADE AND WORKING TO RESTORE ITS ECONOMIC VITALITY. THE RESTORED DEMOCRACY IN PANAMA HAS PASSED TOUGH NEW LAWS TO COMBAT MONEY LAUNDERING, AND IT'S WORKING TO RENEW ITS IMPORTANCE AS AN EAST-WEST TRADE CORRIDOR. - 8 - AND MAKE NO MISTAKE: POLITICAL AND ECONOMIC FREEDOM ARE INSEPARABLE. JUST AS PEOPLE HAVE A GOD- GIVEN RIGHT TO CHOOSE WHO WILL GOVERN THEM, THEY ALSO MUST BE FREE TO MAKE THEIR OWN ECONOMIC CHOICES. AND WHEN WE LIFT BARRIERS TO ECONOMIC FREEDOM WITHIN AND AMONG OUR COUNTRIES, WE UNLEASH POWERFUL FORCES OF GROWTH AND CREATIVITY. BEFORE I LEAVE OFFICE I WANT MANUFACTURERS IN CLEVELAND TO ENJOY VIRTUALLY THE SAME ACCESS TO MARKETS IN MONTERREY AS THEY NOW HAVE IN MINNEAPOLIS. WITH NEW TECHNOLOGIES, CREATORS OF SERVICES IN DENVER MAY BE ABLE TO TAP MARKETS IN SANTIAGO AS READILY AS THOSE IN CHICAGO. AND I'LL WORK TO ASSURE THAT GOVERNMENT PROTECTION AND EXCESSIVE REGULATION DON'T STAND IN THEIR WAY. TO DO THIS, WE'LL HAVE TO OVERCOME THE STUNTED VISION OF THE SPECIAL INTERESTS. AND I AM DETERMINED THAT WE CAN AND WILL DO EXACTLY THAT. 11 - 9 - I'VE MADE IT A TOP PRIORITY TO CONCLUDE A FREE TRADE AGREEMENT DESIGNED TO REMOVE ALL TARIFFS ON TRADE BETWEEN THE UNITED STATES, CANADA AND MEXICO. THIS AGREEMENT WILL BUILD ON OUR HISTORIC FREE TRADE AGREEMENT WITH CANADA. THE SUCCESS OF THE AGREEMENT WITH CANADA DEMONSTRATES HOW FREE TRADE CAN BENEFIT ALL CONCERNED. - 10 - WE CAN'T ACHIEVE THIS BREAKTHROUGH BY EQUIVOCATING BETWEEN THE STATUS QUO PROTECTIONISTS AND THE MOVEMENT FOR FREEDOM AND CHANGE. SOME SUGGEST THAT WE CAN HIDE IN A COCOON OF PROTECTION AND PRETEND STILL TO BENEFIT FROM THE FRESH AIR OF COMPETITION. WELL, YOU AND I KNOW THAT IS SIMPLY WRONG-HEADED. OUR ECONOMIC FUTURE MUST NOT DEPEND ON THOSE WHO PAY LIP SERVICE TO FREE TRADE BUT FULL SERVICE TO POWERFUL SPECIAL INTERESTS. WE CAN'T HAVE IT BOTH WAYS SH IN OUR OWN WAR FOR INDEPENDENCE THOSE WHO TOOK THIS KIND OF STAND WERE KNOWN AS THE "SUMMER SOLDIERS." THEY WANTED THE GLORY OF THE REVOLUTION WITHOUT SHOWING THE GUMPTION TO STAND FOR FREEDOM EVEN IN TOUGH TIMES. MY STAND IS CLEAR: OPEN TRADE IS VITAL TO THE UNITED STATES -- EVERY BIT AS VITAL AS DOMESTIC REFORMS TO RENEW OUR SYSTEMS OF EDUCATION, HEALTH CARE, GOVERNMENT AND ADMINISTRATION OF JUSTICE. 11 - 11 - A FREE TRADE AREA COMPRISING THE UNITED STATES, MEXICO AND CANADA WOULD BE THE LARGEST MARKET IN THE WORLD -- 360 MILLION CONSUMERS IN A $6 TRILLION ECONOMY. MEXICO IS AMONG THE FASTEST GROWING NATIONAL MARKETS FOR U.S. EXPORTS TODAY. OVER THE LAST THREE YEARS ALONE, AMERICAN MERCHANDISE EXPORTS TO MEXICO HAVE INCREASED BY TWO-THIRDS. OUR EXPORTS OF AUTOS, AUTO PARTS, AND TELECOMMUNICATIONS EQUIPMENT TO MEXICO HAVE DOUBLED. AND WHILE MEMBERS OF THIS AUDIENCE MAY BE AWARE OF THIS, I DOUBT IT IS WIDELY KNOWN IN THE UNITED STATES THAT TWO-THIRDS OF ALL IMPORTS INTO MEXICO COME FROM THE UNITED STATES. IT'S NOT JUST THE BORDER STATES THAT PROFIT FROM THIS GROWTH. DURING MY PRESIDENCY, 45 OF OUR 50 STATES HAVE INCREASED THEIR EXPORTS TO MEXICO. OUR TOP 10 EXPORTERS TO MEXICO TODAY INCLUDE MICHIGAN, ILLINOIS, NEW YORK, LOUISIANA, PENNSYLVANIA, FLORIDA AND OHIO -- AS WELL AS TEXAS, CALIFORNIA AND ARIZONA. - 12 - TRADE WITH MEXICO ALREADY SUPPORTS HUNDREDS OF THOUSANDS OF U.S. JOBS. JUST AS AN EXAMPLE: THOUSANDS OF GOOD JOBS IN WARREN, OHIO AND ROCHESTER, NEW YORK DEPEND ON SISTER PLANTS IN MEXICO TO KEEP THEIR PRODUCTS COMPETITIVE. A NORTH AMERICAN FREE TRADE AGREEMENT WOULD CREATE THOUSANDS MORE. IT WOULD CREATE COMPETITIVE EFFICIENCIES AND ECONOMIES OF SCALE THAT WILL HELP AMERICAN COMPANIES COMPETE IN WORLD MARKETS. - 13 - FREE TRADE WITH CANADA AND MEXICO WILL MAKE ALL OF US WINNERS IN ECONOMIC ENDEAVOR -- BUT OUR RELATIONSHIP GOES WELL BEYOND TRADE. WE SHARE BORDERS THAT SPAN THE CONTINENT. WE'RE LINKED BY CENTURIES-OLD TIES OF FAMILY AND CULTURE. I SHARE A WARM FRIENDSHIP WITH PRIME MINISTER BRIAN MULRONEY, WHOM I CONSULT FREQUENTLY. I COUNT PRESIDENT CARLOS SALINAS ALSO AS A DEAR FRIEND -- HE AND I HAVE BEEN PROMOTING THE "SPIRIT OF HOUSTON" EVER SINCE OUR SUMMIT MEETING JUST AFTER BOTH OF US WERE ELECTED IN 1988. BOTH PRESIDENT SALINAS AND PRIME MINISTER MULRONEY ARE BOLD AND IMAGINATIVE LEADERS -- AND I AM COMMITTED TO WORKING WITH THEM TO FORGE ENDURING FRIENDSHIP AMONG OUR COUNTRIES, BASED ON OPEN TRADE, COOPERATION AND MUTUAL RESPECT. - 14 - NOW, YOU MAY HAVE HEARD SOME SUGGEST THAT POLITICS WILL DICTATE DELAYING THE NORTH AMERICAN FREE TRADE AGREEMENT UNTIL AFTER THE ELECTION. WELL, THOSE VOICES ARE NOT SPEAKING FOR ME. 11 THE TIME OF OPPORTUNITY IS NOW. I'VE INSTRUCTED OUR NEGOTIATORS TO ACCELERATE THEIR WORK. I BELIEVE WE CAN CONCLUDE A SOUND, SENSIBLE DEAL BEFORE THE ELECTION -- AND I WANT TO SIGN A GOOD AGREEMENT AS SOON AS IT'S READY. 11 AXX THE NORTH AMERICAN FREE TRADE AGREEMENT IS ONLY A BEGINNING. OUR ENTERPRISE FOR THE AMERICAS INITIATIVE ALREADY HAS MADE NOTEWORTHY PROGRESS TO OPEN MARKETS, EXPAND INVESTMENT FLOWS, REDUCE OFFICIAL DEBT, AND STRENGTHEN THE ENVIRONMENT THROUGHOUT THE HEMISPHERE. THE ENTERPRISE FOR THE AMERICAS INITIATIVE REFLECTS A REVOLUTION IN THINKING. THROUGH THIS INITIATIVE, THE UNITED STATES IS NOT SEEKING TO IMPOSE OUR IDEAS ON OUR NEIGHBORS. RATHER, OUR PROGRAM IS DESIGNED TO EMPOWER THEM TO SUCCEED WITH FREE MARKET ECONOMIC REFORMS THEY HAVE CHOSEN ON THEIR OWN -- IDEAS DEVELOPED IN LATIN AMERICA FOR LATIN AMERICANS. - 15 - THE COURAGEOUS LATIN AMERICAN LEADERS WHO ARE REFORMING THEIR ECONOMIES AND BREAKING DOWN BARRIERS TO TRADE AND INVESTMENT NEED OUR SUPPORT. THEY ARE THE TRUE LIBERATORS OF OUR ERA. TRUE SUCCESS WILL MEAN OPENING UP STATIST SYSTEMS FORMERLY RIGGED TO PROTECT WEALTHY ELITES AND CLOSED TO WORKING PEOPLE AND THE POOR. FREE MARKET REFORMS WILL BANISH BURDENSOME REGULATIONS THAT NOW PREVENT THE URBAN POOR FROM STARTING NEW BUSINESSES OR CAMPESINOS FROM GAINING ACCESS TO CREDIT AND TITLE TO THEIR LAND. ECONOMIC REFORM MUST ALSO INCLUDE HONEST GOVERNMENT. CORRUPTION IS THE ENEMY OF BOTH GROWTH AND DEMOCRACY. NEW INVESTMENT WILL FLOW ONLY WHERE THE RULE OF LAW IS SECURE, THE COURTS ARE FAIR, AND BIDDING PROCESSES ARE OPEN TO ALL. - 16 - TO SUPPORT REFORMERS -- TO REALIZE THE HOPEFUL NEW VISION IN LATIN AMERICA -- THE UNITED STATES CONGRESS MUST MEET ITS RESPONSIBILITY. I ASKED CONGRESS TO TAKE LONG OVERDUE ACTION -- TO INVEST $310 MILLION IN THIS FISCAL YEAR UNDER THE ENTERPRISE FOR THE AMERICAS INITIATIVE. WITH THIS, WE COULD WRITE OFF MORE THAN $1 BILLION IN THE HEMISPHERE'S OFFICIAL DEBTS AND GENERATE MILLIONS OF DOLLARS TO PRESERVE THE ENVIRONMENT. BUT CONGRESS HAS REFUSED TO APPROVE ANY FUNDS FOR THIS PURPOSE. CONGRESS APPARENTLY DOESN'T BELIEVE IN "RETURN ON INVESTMENT" -- BUT I DO. AND OUR TRUCKERS AND RAILROAD PEOPLE DO. AND OUR AUTO AND ELECTRONICS MAKERS DO. AS DO OUR ENVIRONMENTAL ENGINEERS, AND MANY, MANY MORE. - 17 - I'VE HELPED PERSUADE OUR ALLIES IN EUROPE AND JAPAN TO CONTRIBUTE NEARLY TWO-THIRDS OF A $1.5 BILLION FUND TO HELP LATIN AMERICAN REFORMERS. THIS FUND, ADMINISTERED BY THE INTER-AMERICAN DEVELOPMENT BANK, WOULD HELP PEOPLE PRIVATIZE OLD STATE ENTERPRISES AT THE GRASS ROOTS -- WITH JOB RETRAINING AND SMALL BUSINESS LOANS. BUT CONGRESS HAS REFUSED TO VOTE A PENNY FOR THE U.S. SHARE. I'LL KEEP ON FIGHTING FOR THESE VITAL PROGRAMS OF THE ENTERPRISE FOR THE AMERICAS INITIATIVE UNTIL CONGRESS DEMONSTRATES THE VISION AND FORTITUDE TO PROVIDE THE SUPPORT THEY DESERVE IF WE CAN INVEST IN THE TRANSFORMATION OF EASTERN EUROPE AND THE OLD SOVIET UNION -- AND WE MUST DO SO -- THEN WE CAN AND WE MUST INVEST IN THE EFFORTS OF OUR CLOSEST NEIGHBORS ON THEIR PEACEFUL ROAD TO TRUE LIBERATION AND PROSPERITY. - 18 - THE UNITED STATES' ECONOMIC DESTINY IS LINKED TO LATIN AMERICA'S. NO ARMY OF PROTECTIONISTS CAN CHANGE THAT. WHEN LATIN AMERICA SUFFERED ITS DEBT CRISIS OF THE EARLY 1980S, WE SUFFERED THROUGH A CORRESPONDING DROP IN TRADE. IF YOU DON'T BELIEVE ME, ASK CATERPILLER WORKERS FROM ILLINOIS, OR EMPLOYEES FROM CESSNA IN KANSAS. ASK THEM IF THEY SUFFERED WHEN OUR BEST CUSTOMERS IN LATIN AMERICA WERE IN CRISIS. WITH THE RISE OF DEMOCRACY AND ECONOMIC REFORM, U.S. EXPORTS TO LATIN AMERICA HAVE SURGED BY NEARLY ONE-THIRD IN JUST TWO YEARS -- FROM $49 BILLION IN 1989 TO $63 BILLION IN 1991. THIS IS A MUCH FASTER RATE OF GROWTH THAN FOR OUR EXPORTS TO ASIA OR EUROPE. IT POINTS TO THE FACT THAT A STABLE, PROSPEROUS LATIN AMERICA IS A NATURAL MARKET FOR UNITED STATES GOODS AND SERVICES. STRENGTHENING OUR NEIGHBORS' ECONOMIES WILL RESULT IN MORE EXPORTS AND MORE GOOD JOBS FOR PEOPLE IN THE UNITED STATES. - 19 - WHEN ANY OF US SPEAK WITH OUR FRIENDS OUTSIDE THE WESTERN HEMISPHERE, WE NEED TO ASSURE THEM AS CLEARLY AS POSSIBLE: THERE IS NOTHING EXCLUSIONARY IN OUR VISION OF OPEN TRADE AND ECONOMIC INTEGRATION IN OUR HEMISPHERE. OUR AIM IS SIMPLY TO LOWER BARRIERS TO ECONOMIC FREEDOM WITHIN AND AMONG THE NATIONS OF THE WESTERN HEMISPHERE -- NOT, I REPEAT, NOT -- TO CREATE ANY BARRIERS BETWEEN OURSELVES AND THE NATIONS OF AFRICA, EUROPE AND ASIA. ALL OF OUR AIMS ARE CONSISTENT WITH THE GLOBAL POLICIES OF GATT -- AND I WOULD JUST LIKE TO COMMEND THE SUPERB LEADERSHIP OF ARTHUR DUNKEL, GATT'S DIRECTOR GENERAL, WHO SPOKE TO YOU EARLIER TODAY. AND I WANT TO ASSURE YOU I URGENTLY WANT TO OPEN UP GLOBAL MARKETS THROUGH SUCCESS WITH THE URUGUAY ROUND. A - 20 - IF THE EQUIVOCATORS AND THE PLEADERS FOR SPECIAL INTERESTS WANT TO DEBATE THIS, BRING THEM ON. 11 I WILL TAKE THE CASE FOR INCREASED TRADE TO THE PEOPLE IN EVERY CORNER OF THE UNITED STATES. AND I'LL MAKE THIS ABUNDANTLY CLEAR: FREE TRADE MEANS MORE EXPORTS, MORE INVESTMENT, MORE CHOICES, MORE JOBS FOR AMERICANS. # THIS GREAT COUNTRY IS THE NUMBER ONE EXPORTER IN THE WORLD -- OVER $422 BILLION LAST YEAR -- AND WE INTEND TO PURSUE TRADE POLICIES TO KEEP THAT GROWTH UP NOW AND IN THE FUTURE. WE'LL KNOCK DOWN BARRIERS WHEREVER WE FIND THEM -- TO OPEN MARKETS, FOR INSTANCE, FOR OUR COMPUTER SOFTWARE, MOVIES, BOOKS AND PHARMACEUTICALS. WE WILL FIGHT HARD AGAINST PROTECTIONISM BOTH AT HOME AND ABROAD. - 21 - FIVE CENTURIES AGO, A MAN OF COURAGE AND VISION SET SAIL FROM EUROPE SEARCHING FOR NEW TRADE ROUTES AND OPPORTUNITIES. HE DEFIED THE TIMID COUNSEL OF THOSE WHO SAID THE EARTH WAS FLAT. CHRISTOPHER COLUMBUS'S VOYAGE TO THE AMERICAS TRANSFORMED HUMAN HISTORY. COLUMBUS WAS AN ENTREPRENEUR - -- AND THE RISK HE TOOK 500 YEARS AGO CONTINUES TO PAY OFF ABUNDANTLY TODAY. 11 TODAY, WE STILL HAVE TO COMBAT THE FLAT-EARTH MENTALITY THE MINDSET THAT URGES US TO BARRICADE OUR BORDERS AGAINST COMPETITION, TO SHUT OFF THE FREE EXCHANGE OF FOOD AND MACHINERY AND SKILLS AND IDEAS. - 22 - BUT THE FUTURE DOESN'T BELONG TO THE STATUS QUO. IT IS THE LEGACY OF PEOPLE LIKE YOURSELVES -- PEOPLE WITH FAR-SIGHTED VISION AND A SPIRIT OF ENTERPRISE. THE FUTURE AWAITING THE AMERICAS IS A TIME OF REDISCOVERY. A TIME FOR EMPOWERING THE POOR THROUGH NEW INVESTMENT, TRADE AND GROWTH. A TIME FOR CULTURAL RENEWAL. OUR EFFORTS -- AND THE EFFORTS OF MILLIONS OF CITIZENS OF THE AMERICAS -- CAN ACHIEVE NEW GAINS FOR HONEST, DEMOCRATIC, LIMITED GOVERNMENT. TOGETHER WE CAN USHER IN A NEW ORDER OF PEACE -- A NEW TIME OF PROSPERITY -- BOTH ANIMATED BY PERSONAL FREEDOM. THANK YOU, AND MAY GOD BLESS ALL OF YOU. # # # July 13, 1992 MEMORANDUM FOR JOE DUGGAN FROM: MICHELE NIX UN SUBJECT: HISPANIC BUSINESS LEADERS I talked to Public Liaison about the event. Shiree Sanchez is the project officer. She is out today, but her assistant, Jeannie, will be checking in with her later this afternoon. All Jeannie knows at this point is that there will be 250 invitees, Hispanic business leaders. They were ones mentioned in Hispanic Business Magazine. OPL has not yet mapped out the scenario for the event -- all we know is that it's a Rose Garden event, starting at 9:30 a.m. In the meantime, OPL is getting me a copy of the magazine article from the magazine. I've attached one of our most recent speeches to Hispanic audiences -- Cinco de Mayo by Hinchliffe/Gershowitz. One recent criticism the President's had re his speeches to this group is too much pandering. We need to watch that in this upcoming draft. 762 May 4 / Administration of George Bush 1992 ton, DC, 1983-89; as staff director for the Rema at the Cinco de Mayo Republican staff of the Committee on Mer- Ceremonic chant Marine and Fisheries at the U.S. House of Representatives, 1981-83; and as May 5, 1992 a senior Republican professional staff mem- ber at the Committee on Public Works and If I might be informal, Gus, thank you Transportation for the U.S. House of Rep- much for the warm introduction anothe resentatives, 1978-81. warm welcome. And I just can't tell you how pleased I am to be in this beautiful place. Mr. Toohey graduated from the University There are many familiar faces out there, so of California at Berkeley, School of Forestry many Members of both Chambers from and Conservation (B.S., 1971). He was born Mexico. We salute you, and we welcome you all. I had a chance to greet the members a February 1, 1949, in Helena, MT. Mr. second ago. Members of the Mexican-Amer- Toohey served in the U.S. Army Corps of ican business community, we're very pleased Engineers, 1971-75. He is married, has three to have you all here. I see Senator Gramm children, and resides in Great Falls, VA. and Representatives Kolbe and Gilman and Tallon, all here to salute this show of force and show of friendship for the delegates from south of the Rio Grande. Nomination of John C. Harper To Be The interparliamentary union, the Mexi- Chairman of the Advisory Council on can-American interparliamentary relation- Historic Preservation ship is a good one, and I can tell some of you older members of this delegation that May 4, 1992 I was a member of that interparliamentary action back in 1968 and 1969 and 1970. So The President has announced his intention I welcome you all once again. to appoint the Reverend John C. Harper to be Chairman of the Advisory Council on His- I was pleased earlier to see Jose Niño and toric Preservation. He would succeed John Raul Yzaguirre, two American leaders who F. W. Rogers. do so much for strong relations between Mexico and the United States. And, of Since 1963, Dr. Harper has served as rec- course, I want to take this opportunity to con tor of St. John's Episcopal Church, Lafayette gratulate President Carlos Salinas for pre- Square, Washington, DC. He currently serving this remarkable historical landmark serves on the Decatur House Council, pre- and for creating the institute to strengthen viously served on the Woodrow Wilson the ties of friendship between our two na House Council, and is an ex officio member tions. of the National Trust for Historic Preserva- Relations between the United States and tion. He has also been active in the ongoing restoration of St. John's Church and its parish Mexico are tremendously important to both house, Ashburton House, both of which are our countries, and it's exciting to note, and I would note, and I'd say with some pride listed on the National Historic Register. that relations between Mexico and the Unit- ed States have never been better than the Born in Winthrop, MA, Dr. Harper grad- are now. And I take great pride in that, as uated from Harvard University (A.B., 1946), I say, but I commend especially Carlos Sali Episcopal Theological School (B.D., 1953), nas for the role that he's played in strength George Washington University (D.D., 1966), ening this special friendship that benefits and Nashotah House (D.C.L., 1983). He is both our peoples. The Mexican President has married, has three children, and lives in done an awful lot to hold out his hand to Washington, DC. us, to emphasize the importance to Mexico George 1992 Administration of George Bush, 1992 / May 5 763 de Mayo of the U.S.-Mexican relationship. And he's tional holiday, a day of de in Mexican cul- done a wonderful job. ture, a day of pride in Mexican tage I want to thank all of you for letting me The Los Angeles Unified School share this special day, a day made even more sponsors an annual Cinco de Mayo essay con- meaningful because 1992 marks 500 years of test, and I just want to share with you a cou- Gus, thank you Hispanic heritage in this hemisphere. And ple of the quotes. A senior high school stu- roduction and the this heritage is a wonderful, rich tapestry that dent wrote that this day, and here's the can't tell you how our kids, Barbara, and I were lucky enough quote, "instilled within me pride and appre- is beautiful place to first experience during our west Texas ciation for the beauty of my people and the faces out there SO: years. I remember our Cinco de Mayo festivi- richness of my roots." And a middle school 1 Chambers from ties out there, exploring the ties between our student wrote, "The real significance of id we welcome.you countries: ties of family, friendship, and faith. Cinco de Mayo is the pride Mexicans every- eet the members a So, my exposure to Cinco de Mayo started where have in their heritage." he Mexican-Amer- in the year 1949 out in west Texas, and it's And that's a glorious thing to celebrate. we're very pleased been a part of us ever since. And when I think of the Hispanic community e Senator Gramm The Bushes are very lucky to be able to in our country, the first words to come to e and Gilman and keep that celebration alive. Our daughter-in- mind are faith, family, and freedom. These this show of force law, as some of you know, was from Mexico, the delegates from values have been interwoven into the strong, now an American citizen, and we take great bright fabric of the Hispanic tradition for pride in that. Three of our grandchildren are generations, and they're also the very values Hispanic-American, and they bring the won- that this Nation was founded on. union, the Mexi- der of this dual heritage into our family. I Cinco de Mayo shows that we all have mentary relation- have only one complaint with them. All four debts to our ancestors who took risks and I can tell some of of them, my daughter-in-law and the three made sacrifices for us, whether on the battle- is delegation that grandchildren, none of them has been able field or out in the farm field. And we must interparliamentary to teach their grandfather to speak Spanish. honor these men and women who ached to !969 and 1970. So [Laughter] When things calm down a little, pass on a richer life, a freer life, a better in. maybe I can make a little more headway. life, who sacrificed all they had in order to I remember being so proud when Noelle, guarantee opportunity, freedom, and hope see Jose Niño and our granddaughter and her mariachi group for their children and their children's chil- rican leaders who sang at Barbara's First Ladies luncheon dur- dren. One essay winner in this Los Angeles relations between ing our inauguration. I heard the mariachi contest wrote, "Celebrating the deeds of our States. And, of group upstairs, and I'm kind of glad that ancestors helps us keep in touch with our pportunity to con- there wasn't a comparison between Noelle's history and reminds us of past suffering and Salinas for pre- mariachi group and this group of wonderful istorical landmark hardship that brought about the comfort we musicians that enlivened the festivities here. have today." Cinco de Mayo, it does not be- rute to strengthen But I was delighted to hear the music today. long solely to another land; it's a celebration ween our two na- We all know the facts of Cinco de Mayo, of ideals that know no border. And today we that long-ago May 5th when General rejoice at the men and women who came Zaragoza and his outnumbered troops stood to this country from across the world, United States and up to the empire of Napoleon III. Stirring brought their finest strengths, their rich cul- important to both facts, but what's most important is the spirit ture, their proudest tradition and fit them iting to note, and of that day, the spirit of those few poorly- into the vibrant mosaic that is America. with some pride, armed men who turned the battle into a glo- We must also look toward the future to xico and the Unit- rious symbol. Cinco de Mayo is a symbol of prepare the legacy we will leave our children. 1 better than the struggle for self-determination against as- I believe of all the gifts that we could give pride in that tounding odds, and it's the symbol of a brave them, the three most important are jobs, cially Carlos Sali- people's unbeatable determination to fight family, and peace. And the America we will layed in strength- for their own destiny. It's a day like the leave to our country will be a better land hip that benefits downing of the Berlin Wall, the vote against ican President has and a more just land if we make progress apartheid, the defeat of Iraq's aggression: 1 out his hand to here on five key areas. I'm thinking of our events that transform our world and the way ortance to Mexico health care system, our legal system, our edu- we see each other. It's also of course, a na- cation system, our system of Government, 764 5 / Administration of George Bush, 1992 and of course, we must expand world trade. But as knows and all of us, I think, These are the keys to thriving in the future. know, a free }g market made up of these And so much depends upon trade. Mexico three nations, Mexic Canada, and the Unit and the United States share a great deal. ed States, would be the Study of dreams on President Salinas, as I say, is a dear friend. of the largest markets in the world, He also is a bold and imaginative leader, and lion consumers in a $6 trillion economy. the deep and enduring relationship we're Now, Mexico is among the fastest-growing forging between our countries is based on national markets for U.S. exports, and they've cooperation, mutual respect, and open trade. increased by two-thirds just over the past 3 And I will fight to tear down economic bar- years. And our exports of auto parts and tele- riers with Mexico. communications equipment have doubled. I notice the portrait of Juarez watching us. Imagine what will happen under a free trade And seeing him reminds me of that great agreement. It will create thousands more fresco I saw upstairs, "The Liberators of the jobs on both sides of the border. And all of American Continent." For those who haven't us will be winners. And in that spirit of vital seen it, it's a symbol of the friendship and cooperation, I know that we will grow to union that we share. It shows the great lead- gether. ers of our lands and a picture of North Amer- But all communities within the United ica and Latin America shaking hands. This States need to pause right now in the wake idealized portrait shows what we're going to of tragic events in Los Angeles. We must achieve in trade because I am absolutely rethink and reaffirm the bonds that knit all committed-put the politics aside-I am ab- nationalities together. The violence brought solutely committed to signing a sound North much suffering to the Los Angeles Hispanic American free trade agreement just as soon community. And I am certain that many of as possible. The time of opportunity is now. you, as did I, shared in their pain. And even I've told our negotiators to accelerate their as my heart, too, goes out to them, I found work. I believe we can conclude a sound and in the midst of the devastation, there wer sensible deal before this United States elec- signs of promise, neighbor helping neighbor, tion, and I will sign it just as soon as it's ready. regardless of race or cultural background. Converging in Los Angeles were three A great lesson of our age is that trade and fundamental issues of a civilized society: jus- enterprise can build jobs and certainly can tice, order, and tolerance. And these must preserve freedom. NAFTA, the North Amer- remain our goals as we mend the wounds ican free trade agreement, will be the key of Los Angeles. From New York to San Anto- to higher standards of living for the peoples nio to San Jose, we must redouble our efforts of our continent. I hope it helps, and I'm to build on our strengths, the same strengths sure it will, the standard of living in Mexico. of character that are at the heart of the His- I know it will do the same for the United panic community here in the United States States. And then I believe the benefits will and in Mexico as well. flow south where it will open the door for My friends, I look forward to spending fu- other such free trade agreements. It will lib- ture Cinco de Mayo days with you. I loved erate our markets, and it will increase trade, the music, as I said. I can't wait to hear it investment, and jobs, yes jobs, in Mexico, in again. And thank you very much, Gus, for Canada, and right here in the United States including me in this wonderful day. And of America. here's something my 8-year-old grandson, I must say, as I look over here I have a Jebby, did teach me: Vaya con Dios. little guilt complex because I see Bernie Thank you very, very much. Aronson who is working so very hard and in such effectiveness to bring forth a trade Note: The President spoke at 2:17 p.m. a agreement, and he's done a wonderful job the Mexican Cultural Institute. In his re in our relationship. Bernie, I should have marks, he referred to Ambassador Gustavo mentioned you earlier, but I'm just delighted Petricioli of Mexico; Jose Niño, president of you're here. the U.S.-Hispanic Chamber of Commerce; 07/20/1992 10:03 FROM HISPANIC BUSINESS, INC. TO 12024561647307 P.01 R Hispanic8USINESS FAX COVER LETTER FOR THE ATTENTION OF: Shiree Sanchez COMPANY OR ORGANIZATION: The White House FAX NUMBER: (202)456-1647 DATE: 7-20-92 PAGES (Including this one): 3 FROM: Rick Mendosa This is the most definitive S tatement of on the Hispanic MESSAGE: Business College Fond. Jesús would like it. to Know what the President is young to say about we would hope that he would say that Hispanic Businessed are taking the lead in creating a capital feard that will enable Hispanie young people to 90 Rih to college for business & entrepreneurial studies. If you did not receive all of the pages sent, please call: 805-682-5843( Our fax number is: 805-687-4546. 360 South Hope Avenue, Santa Barbara, CA 91305 Contributors to Date: Hispanic Adorno & Zeder Hank Adorno Bacardi Imports Inc. Business Jose Aragon Lord & Company Juan Cabrera Armando Chapelli Washington Consulting Group College Jesus Chavarria Hispanic Business magazine Cinema Video Alex Guadalupe Hernandez Engineering Inc. Miguel Hernandez Fund Kemron Environmental Services Juan Gutierrez 07/20/1992 10:04 FROM BUSINESS, INC. HISPANIC MVM Inc. Dario Marquez Teresa McBride McBride & Associates AT&T Andrew Peña Cordoba Corporation George Pla IQ Management Corporation Luis Quifionez Advanced Data Concepts Frank Rivera Ruiz Food Products Fred Ruiz Handy Andy Supermarkets David Salazar Miller Brands Inc. Joe Sanchez Computer Resources Management Erwin Torrez 1-Day Paint & Body Centers Javier Uribe Software Control International Lynette Vivas LoGo TOBE DESIGNED BY BUFFALO TO 12024561647307 For more information, please contact: Name Name Hispanic Business Inc. 360 South Hope Avenue, Suite 300C Santa Barbara, CA 93105 P.02 Phone: (805) 682-5843 Fax: (805) 687-4546 Purpose PANIC BUSINESS magazine, committed to contribute to and take a leading role in organizing the Fund. This was accomplished through The Hispanic Business College Fund proposes to serve as a finan- a series of organizing meetings held in Miami in September 1991, 07/20/1992 cial assistance venue for deserving Hispanic individuals seeking a Los Angeles in November 1991, San Antonio in February 1992, and higher education in business, SO that they can compete with their Washington in May 1992. Subsequently, other prominent Hispanic peers and with other ethnic groups. The Fund will also assist in de- CEOs contributed, Abel Holtz (Capital Bank), Javier Uribe (1-Day veloping a new educated Hispanic leadership. and unite and em- Paint & Body Centers), Teresa McBride (McBride & Associates), power Hispanic business communities, for the good of all Hispanics. Arturo Torres (formerly CEO of Pizza Management Inc.), Lauro Garcia (Bancroft, Garcia & Lavell), Armando Chapelli (Washington Nationally, the Hispanic small business community is suffering from Consulting Group), and Fred Ruiz (Ruiz Food Products) 10:04 FROM HISPANIC a shortage of educated, experienced professionals in the areas of management, law, finance/accounting, marketing, and sales-all Goals desperately needed to serve fast growing markets. Now Hispanic CEOs can fill that void by reaching Hispanic individuals who seek a Current goals of the Hispanic Business College Fund are to: higher education in business. To accomplish these goals, the Fund must raise its first year's operating budget of $300,000 by Fall 1992. Raise first year's operating budget to establish an adminis- This will finance an administrative office in Washington, D.C., em- trative office and professional fundraiser.. BUSINESS, INC. ployment of a professional fundraiser, and general operating ex- Establish a nationwide "Blue Ribbon Committee" of penses. Two 25-member board--a board of directors and a board of Hispanic educators to define a national scholarship strategy. trustees-will be appointed by fourth quarter 1992. Approach Fortune 1,000 companies and major foundations for contributions, with the understanding that 100 percent of History their contributions will fund business scholarships. Establish a 25-member Board of Directors and a 25- In November 1990, HISPANIC BUSINESS magazine published a com- member Board of Trustees by fourth quarter 1992. pelling letter to the editor from Andrew Ramon, a prospective law student, describing his disillusionment when he sought financial aid Sponsors TO 12024561647307 from chief executive officers profiled in the magazine. Several CEOs and other readers of the magazine who came across his letter were Hispanic CEOs will be the Fund's main promoters. A 25-member inspired to help create and donate to the new Hispanic Business Board of Directors will each contribute $5,000 annually, and a 25- College Fund. The first to respond was Frank Rivera, CEO of Ad- member Board of Trustees will each contribute $2,500 annually. vanced Data Concepts Inc. in Portland, Oregon. Mr. Rivera offered- Funding will be solicited from CEOs on the annual HISPANIC BUSI- also through a letter to the editor-to make a $1,000 contribution to NESS 500 list through ad campaigns, fundraising dinners, and public a Hispanic Business College Fund, if at least 10 of his fellow CEOs relations efforts. Funds will also be sought from the would make matching contributions. The Hispanic-owned law firm and from Congressional House Resolution 2801, P.03 of Adorno & Zeder in Miami volunteered its services on a pro bono Gold Coin Act." It is understood that part of the funds basis. Mr. Rivera and Jesus Chavarria, editor and publisher of His- Hispanic business community will go toward operations. Clinton signed an English -only bike NAFTA talk one of both sides 7 their monthly Bush has done so me l to re-estable rel. w/ mexico JUL 22 '92 12:20 FROM US TRADE REP PAGE. 001 TELEFAX COVER PAGE OFFICE OF THE U.S. TRADE REPRESENTATIVE 600 17TH STREET, NW WASHINGTON, DC 20016 July 22, 1992 Number of Pages Including Cover Sheet: TO: FAX NUMBER Joe Dugan 456-6218 FROM: Erin McGuire Endean Executive Assistant to the USTR PHONE/FAX: (202) 395-6850 / (202) 395-3390 Background material on NAFTA and hispanics for your use. Commerce Department drafter (last page) may be able to help further. JUL 27 '92 11:50 FROM TO 94566218 PAGE. 001/013 FACSIMILE COVER SHEET THE UNITED STATES TRADE REPRESENTATIVE Public Affairs/Private Sector Liaison Executive Office of the President Washington, D.C. 20506 Date Number of Pages Excluding Cover Time Sent TO: NAME: OFFICE: PHONE: FAX#: Ed Walters 456-6218 FROM: Ti Caudran PHONE: FAX#: (202)395-7226 CONTACT: If you have any problems call 395-3230 SUBJECT: COMMENTS: JUL 27 '92 11:50 FROM TO 94566218 PAGE. 002/013 July 14, 1992 FACT STREET NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA) NEGOTIATIONS THE NAFTA RECORDING D The United States, Mexico and Canada began nagotistions on a North American Free Trade (NAFTA) Agreement in June 1991. Linking the U.S. with our largest trading partner, Canada, and our third-largest partner, Mexico, into 4 single continental free-trade zona, the NAFTA will strangthan America's ability to Compate more affectively in the world market. The goal of the NAFTA is = remove barriers to trade in goods, services and investment and to provide protection for intellectual property rights. D Substantial prograss has been achieved in the year since nagotiations began. Most issues have been resolved or are near resolution, with the understanding that, as in any agreement, nothing is agreed until everything is agreed. Although some very sensitive issues remain for our three nations, we believe that we can soon achieve an agreement that provides significant new aconomic opportunities for Americans. 0 The NAFTA will create one of the richest markets in the world, with over 360 million consumers and producers and over $6 trillion in annual output. THE POSITIVE ECONOMIC IMPACT OF A NAFTA o Mexico is the fastest growing U.S. export market. From 1985 to 1991, as Maxico reduced import barriers, our marchandise exports to Maxico grew twice as fast as exports to the world, from $12.4 billion to $33.3 billion. U.S. agricultural exports TOES 173 parcent to $3 billion; consumer goods exports tripled to 53.4 billion; and exports of capital goods increased from s5 billion to 811.3 billion. o Under a NAFTA, the U.S. can expect even greater export growth. Maxico still has higher trade barriers than the U.S.: its average duty is roughly 108, compared to 4% in the United States. Significant Maxican nontarist barriers remain; therefore, we have much to gain from the elimination of these burriers. JUL 27 '92 11:51 FROM TO 94566218 PAGE. 003/013 0 The overwhelming consensus of the nearly two dozen aconomic analyses of the NAFTA is that A free trade agreement with Mexico will generate more jobs and higher wages for both the U.S. and Mexico. Some estimated the gain to the U.S. Gross Domestic Product at $35 billion (1990 prices) by the year 2002. 0 The U.S. will benefit from Mexican growth: for each dollar Mexico spends on imports, an estimated 70 cents is spent on U.S. goods; for each dollar of GNP growth, an estimated 15 cents is spant on U.S. goods. Mexico's growth in spending mans growth in jobs for the U.S. JOBS FOR AMERICANS 9 More than 600,000 U.S. jobs were related to U.S. exports to Mexico in 1991. The Institute for International Economics has estimated that over several years the NAFTA will create a net increase of some 130,000 additional U.S. jobs. © Export-related jobs are better paying jobs for all Americans. Analyses of recent wage statistics have found that U.S. workers employed in export-ralated jobs SEEN 17% more than the avarage worker in the United States. Mersover, service jobs in the export sector were found to pay mere on average than manufacturing jobs in the overall sconemy. D Between 1988 and 1991, U.S. marchandise exports have accounted for 70% of U.S. economic growth. The data for 1990 indicate that each $1 billion in increased marchandise exports from the U.S. supported an estimated 19,100 jobs for U.S. workers. LABOR AND INDUSTRY ADJUSTMENT 0 Worker dislocations in the United States should be minimal, since U.S. trade and investment barriers are already low. 0 For sensitive U.S. sectors, tariffs and other barriers will be phased out gradually over time. The NAFTA will allow safaguard mechanisms for temporary re-imposition of tariffs for industries impacted by import increases. The Administration is firmly committed to providing adjustment assistance to U.S. workers who may become dialocated as a result of the Agreement. We are now consulting with Congress, organized labor, industry, and other interested parties on adjustment services for NAFTA-displaced workers. Whether provided through the improvement of an existing program or JUL 27 '92 11:52 FROM TO 94566218 PAGE. 004/013 through the creation of in new program, assistance will be timely, comprehensive and effective. Worker adjustment assistance will be taken up by the Congress during its consideration of the NAFTA implementing legislation. LABOR COOPERATION JOINT COMMITMENTS © The U.S. and Maxino are pursuing a bilsteral cooperation program on labor issues. This program is well underway and addresses a broad spectrum of labor practices, standards and enformament issues. A five-year Mangrandum of Understanding between the Secretaries of Labor of our two countries elaborates as broad program sovering occupational health and safety standards, child labor, labor statistics, worker rights- labor management relations systems, quality and productivity, and workplace training. Joint activities already conducted under the MOU which should anhance enformement of Mexican labor laws include, for example, a tripartite confarence an hazard abatament in the iron and steal industry, training in labor statistics and industrial hygians, and technical assistance. MEXICO'S COMMITMENT 0 Mexican labor law is comprehensive in its coverage of worker rights. The sconomic benefits of the NAFTA will provide Mexico with additional resources which could be used to improve the enforcement of its labor laws. a Maxico has recently taken a number of steps that demonstrate the commitment of the Salinas Administration =0 the enhancement and enforcement of worker rights. They include the targeting of high-hazard firms for programs on preventing secidents and work-related illnesses, the establishment of an industrial hygisms laboratory, a series of health and safety seminars simed at maquiladora operators, and raising the level of compulsery education from the sixth to the ninth grade. PROTECTING THE ENVIRONMENT JOINT COMMITMENTS 0 The U.S. and Mexico are working cooperatively to enhance ragional environmental protection and enforcement. D Related to our integrated plan to address environmental problems on the U.S. -Maxican border. Mexico has committed JUL 27 '92 11:52 FROM TO 94566218 PAGE. 005/013 8460 million over three years for border environmental initiatives. The Administration is committing 6241 million in fiscal year 1993 alone to border projects. THE U.S. COMMITMENT The NAFTA will promote economic development in an environmentally sound manner. The NAFTA will go further than any other comprahensive trade agreement in addressing environmental concerns. The NAFTA Will ensure that the U.S. can maintain its high standards of environmental protection, and retain the right to ban imports that do not meet U.S. health OF safaty requirements. The NAFTA will preserve U.S. rights and the rights of states to impose stringent pasticide, energy conservation, toxic waste, and health and safety standards. The NAFTA will honor our commitments under international environmental treaties on endangered species and protection of the ozone layar. MEXICO'S COMMITMENT Based on U.S. law, Mexico's environmental law and standards are a solid foundation for tackling its environmental problems. NAFTA will promote mechanisms that ensure all new invastments CIRIZE be held to the highest environmental standards. TIMING OF CONGRESSIONAL CONSIDERATION Timing of congressional consideration is governed by "fast- track" procedures, which Congrass last year extended for agreements signed bafore June 1, 1993. Under those procedures: Once agreement is reached by the U.S., Canadian, and Maximan negotiators, the U.S. private sector advisory committees prepare reports avaluating the agreement. Once the reports are ready, the President may give formal notice to the Congrass of his intant to enter into the agresment. - Ninety calendar days after giving notice, the President may sign the agreement. JUL 27 '92 11:53 FROM TO 94566218 PAGE. 006/013 - The President may submit implementing legislation to Congress any time after signing the agreement, normally after working with Congress on the details of the legislation. : Once the legislation is submitted, it will be entitled to "fast track" treatment. Fast track treatment means that Congress will vote "yes" or "no" on the agreement (no amendments) and will do so within specified time periods amounting to no more than 90 session days of Congress. In practice, passage has taken considerably less time bacause Congress and the Administration have collaborated on the drafting of implemanting legislation. The Administration smoke to continue this practice in the case of NAFTA. B It is possible for the nagotiations to be concluded and for the President to sign the NAFTA this year. However, given the Congressional calendar, it is not anticipated that Congrassional consideration of implementing legislation will cesur until next year. # # # JUL 27 '92 11:54 FROM TO 94566218 PAGE. 007/013 KEY POINTS IN NATTA REGOTYATIONS TO DATE June 10, 1990 President Eush and Mexican President Salinas issue & joint statement endorsing the idea of a comprehensive free trade agreement between the United States and Mexico, and direct their trade ministers to undertake consultations and preparatory work. August 8, 1990 U.S. Trade Representative Carla A. Hills and Mexican Secretary of Commerce Jaime Serra Puche report back to the two Presidents, jointly recommending the initiation of formal negotiations. August 21, 1991 President Salinas writes to President Bush proposing that the United States and Maxico negotiate a free trade agreement, a step required by U.S. law. September 25, 1990 President Bush writes to the Chairmen of the House Ways and Means and Senate Finance Committees notifying the committees of free trade negotiations with Mexico, at step required by U.S. law. In his letter, the President also informs the Chairmen that Canada has expressed a desire to participate in the negotistions. February 5, 1991 President Rush, President Salinas, and Canadian Prime Minister Brian Mulroney announce their intention to pursue a North American Free Trade Agreement, creating one of the world's largest liberalized markets. February 5, 1991 President Bush writes to the Chairman of the House Ways and Means and Senate Finance Committees of his desire to enter into trilsteral nagotiations with Mexico and Canada for a North American Free Trade Agreement (NAFTA). February 6 & 20, 1991 Senate Finance Committee holds public hearings on the proposed negotiations. February 20-21, 1991 International Trade Subcommittee of the House Ways and Means Committee holds public hearings or the proposed negotiations. February 27, 1991 Sixty-day legislative review period expires, during which time the Senate Finance Committee or House Ways and Means Committee could have voted to deny fast-track procedures to lagislation implementing a free trade agreement with Mexico. March 1, 1991 President Bush requests & two-year extension of fast- track procedures for legislation implementing trade agreements, a necessary step if the procedures are to be used for a NAFTA. JUL 27 '92 11:54 FROM TO 94568218 PAGE. 008/013 July 14, 1992 Presidents Bush and Salinas and their trade ministers, Hills and Serra, meet to discuss status of the NAFTA talks and announce the beginning of the final stage of negotiations. 7/13/92 JUL 27 '92 11:55 FROM TO 94566218 PAGE. 009/013 December 14, 1991 Presidents Bush and Salinas mest at Camp David, agree on importance of NAFTA and need for broad, comprehensive agreement. December 31, 1991 Negotiators complete composite bracketed texts. January 6-10, 1992 Mestings at Georgatown University in Washington, D.C. to prepare composite taxts. January 16-17, 1992 Chief Negotiators meet to review negotiations in Washington, D.C. February 2-3, 1992 Ambassador Carla A. Hills leads delegation of 26 private sector representatives and 11 Members of Congress to Marico. Delegation meets with President Salinas, Secretary of Commerce Serra, and other key Mexican government and private sector officials. February 9-10, 1992 Fourth Trilateral Ministerial Oversight meeting held in Chantilly, Virginia. February 10-12, 1992 U.S. and Mexican officials, along with organized labor, hold hazardous industry conference focusing on iron and steal industry. February 17-21, 1992 Plenary session in Dallas, Texas chaired by Chief Negotiators of the three countries. February 25, 1992 President Bush receives NAFTA Environmental Review and Environmental Border Plan from USTR Carla A. Hills and EPA Administrator William K. Reilly in Los Angeles, California. February 26, 1992 President Bush and USTR Hills discuss NAFTA progress with President Salinas and Minister Serra in San Antonio, Texas on the maryins of the Drug Summit. March 4-5, 1992 Plenary session in Washington, D.C. chaired by Chief Negetiaters of the three countries. March 23-27, 1992 Plenary session in Washington, D.C. chaired by Chief Negotiators of the three countries. April 6-8, 1992 Fifth Trilsteral Ministerial Oversight meeting held in Montraal Canada. April 27-May 1, 1992 Plenary sussion in Mexico City, Mexico chaired by Chief Negotiaters of the three countries. May 13-15, 1992 Plenary mussion in Toronto, Canada chaired by Chief Negotiation of the three countries. June 1-5, 1992 Plenary sussion in Crystal city, Virginia chaired by Chief Megotiators of the three countries. June 17-19, 1992 Chief Negotiators meet to review negotiations in Washington, D.C. June 29-July 3, 1992 Chief Negotiators meet to review negotiations in Washington, D.C. July 7-10, 1992 Chief Negotiators meet to review negotiations in Washington, D.C. JUL 27 '92 11:55 FROM TO 94566218 PAGE. 010/013 THE WITTE HOUSE Office of the Press Secretary 7/14/ (San Disgo, California) For Immediate Release BUSH-SALINAS BAN DIEGO MERTING STATEMENT BY THE PRESIDENT of the status of negotiations among our two countries and Canada President Salinas and I had an extramely constructive discussion to creats a North American Free Trade Area (NAFTA). We reaffirmed our commitment to reaching are sound NAFTA agreement as this historic undertaking. soon as possible. Let me just say a word about the importance o We live in a global economy. The fastest growing sector of the American economy today is our export sector - and Mexico is the fastest growing market for U.S. exports in the world. U.S. worldwide. for each of the last 5 years - twice as fast as U.S. exports merchandise exports to Mexico have increased 22 percent per year Having added over 300,000 new jobs to our economy since 1986, we now have over 600,000 total U.S. jobs built on our exports to Mexico. California alons exported 85.5 billion in goods and services to Mexico last year. Virtually every state has shared in that growth, not just states on the border. Michigan, Illinois, Chie, New York, and Pennsylvania are among the top tan exporters to Mexico along with California, Texas, and Arizona. By building together the largest free trading region in the world Mexico, the United States, and Canada are working to ensure that for the sitizens of each of our countries. the future will bring increased prosperity, trade, and new jobs Because our trade ministers and their teams have made impressive prograss in recent weeks we agreed that our meeting today marks the beginning of the final stage of negotiations. In the spirit ninth inning of negotiations. of this evening's All-Star Game, we are entering the top of the President Salinas and I have instructed our trade ministers to meet on July 25 to bring this final stage of negotiations to an early and successful conclusion. We have consulted with Canadian minister. Prime Minister Mulroney and he has similarly instructed his trade We also agreed on the importance of pressing ahead with parallel efforts to assure that the NAFTA enhances environmental quality and that labor issues are addressed effectively. 1 4 # JUL 27 '92 11:56 FROM TO 94566218 PAGE. 011/013 OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE EXECUTIVE OFFICE OF THE PRESIDENT WASHINGTON 20506 U.S. EXPORTS CREATE HIGH-WAGE EMPLOYMENT Summary Expansion of U.S. exports is likely to increase the overall average real wage of all American workers, according to an analysis completed by the U.S. Trade Representative. In a study of recent wage statistics, USTR's office of the Chief Economist found that U.S. workers employed in export-related jobs earn 17% more than the average worker in the United States. Export-related wages are higher for manufactured and service jobs. Moreover, while service-related jobs generally pay less than manufacturing jobs, service jobs in the export sector were found to pay more on average than manufacturing jobs in the overall economy. The policy implications are clear: exports are good for the United States and good for U.S. workers. Better paying U.S. jobs are created when foreign markets are open to exports of U.S. goods and services. Initiatives such as the North American Free Trade Agreement, the Uruguay Round of the GATT, and bilateral accords generate growth in exports and an increase in wages for American workers. Higher paying export jobs are threatened when protectionist measures close our borders and invite retaliation. The US must not shrink from international competition, at home or abroad. U.S. Average Hourly Wages in 1990: e Export-related jobs pay more and All Jobs* and Merchandise Export-Related Jobs* are higher skilled than average jobs $12.00 in the U.S. economy. Legand Exports are also important because: $10.00 All Joint Export Related Jobs Since 1988, exports have accounted $8.00 for 75% of U.S. growth. Average Hourly Wege *(Private Sector, Non-Agricultaral) $8.00 . In 1991, the U.S. was the world's No. 1 exporter, with $591 billion $4.00 worth of goods and services exported. Analysts estimate at least $2.00 $610 billion in exports for 1992. 0 Each $1 billion in merchandise $0.00 All Industries Manufacturing Services exports creates over 19,000 new jobs. JUL 27 '92 11:57 FROM TO 94566218 PAGE. 012/013 3 USTR's findings are consistent with those of a recent academic study (see below), which further found that, # export-intensive industries in the United States also employ more skilled workers and do more research and development than import-intensive industries 18 Conclusions from USTR Study There has been significant public discussion recently suggesting that U.S. real wages over the last 15 to 20 years have not been growing. Furthermore, critics claim, new job creation has been in low-skill, low-paying jobs. Some critics go on to argue that the United States should engage in protectionist policies designed to keep imports out and keep the "good jobs" at home. On the basis of the data presented here, that policy prescription is certainly ill-founded. While many factors influence changes in real wages over time, this study shows that export-related industries generate jobs that pay significantly better, and therefore, one might assume, are more highly skilled, than the average job in the United States. Therefore, continuing U.S. efforts to further open foreign markets and expand U.S. exports appear most likely to keep Americans at work with good wages. Coupled with the fact that each $1 billion in merchandise exports generates more than 19,000 new jobs, according to the Department of Commerce, and that total trade (exports and imports) has almost doubled in the last 20 years as a percentage of GDP (11.2% in 1970 to 21.3% in 1990), the arguments for free markets and open trade become even more compelling. Background Notes on USTR's Calculations In April 1992, the U.S. Department of Commerce released a study entitled U.S. Jobs Supported by Merchandise Exports. This study estimated that 7.2 million full-time equivalent U.S. jobs were directly or indirectly supported by merchandise exports in 1990, up 42% (more than 2 million new jobs from 5.0 million base) since 1986. The study includes service-sector jobs indirectly supported by merchandise exports. However, it does not include jobs supported by U.S. exports of services (currently running at roughly 35 percent of the value of U.S. merchandise exports). The Commerce Department study does not deal with the issue of wages for export-related workers. Still, its data base, in a relatively straightforward manner, can be paired with U.S. wage data to analyze wages for expert-related jobs. The Commerce Department study measures two types of export-related U.S. jobs, direct and indirect. Some export-related jobs are directly required to produce U.S. merchandise exports. other export-related jobs are indirectly required upstream to produce TO .92 11:57 FROM ?? A NAFTA WOULD CREATE ONE OF THE WORLD'S LARGEST FREE TRADE AREAS A North American Free Trade Agreement (NAFTA) would create an enormous market, encompassing some 360 million consumers and total output of more than $6 trillion. 0 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. The successful implementation 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. THE IMPORTANCE OF NORTH AMERICAN TRADE 0 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 neighbor have grown substantially faster than those to the rest of the world. REMOVAL OF BARRIERS WOULD CREATE NEW TRADE AND INVESTMENT OPPORTUNITIES Since Mexico joined the General Agreement on Tariffs and Trade (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. n 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. (Duggan/Walters/Nix) July 27, 1992 Draft Five HB PRESIDENTIAL REMARKS: HISPANIC BUSINESS LEADERS THE ROSE GARDEN THE WHITE HOUSE TUESDAY, JULY 28, 1992 9:30 A.M. Secretary of Commerce Barbara Franklin, U.S. Trade Representative Carla Hills, thank you. To all of you, welcome to the White House. Jesus [Chavarria, editor and publisher of Hispanic Business], thanks for your leadership in bringing together so many dynamic women and men from Hispanic-owned businesses. You enliven this country, you're keeping America great -- each one of you. 11 We're together today because we believe in the future -- and we know how to get there. Our future depends on freedom. Freedom works. Freedom is right. 11 You're the heroes of our economy. You create jobs, you meet a payroll. The only people with a tougher challenge might be the coach of the Angolan basketball team or that guy who shot the arrow to light the Olympic torch. You've come to Washington at a tough time: Too late for the cherry blossoms, just in time for the humidity. And today, for the next few minutes, If you don't mind, I'd like to add a little heat. \ 'Cause I've got something on my mind. \ The economy is growing -- Hispanic-owned businesses are in the vanguard of this growth, in the forefront of creating good new jobs for Americans. We need to grow faster, and we know what's holding us back. Let me sum it up in a single sentence: 2 Government is too big -- and it spends too much. 11 An old guard of tax-and-spend politicians has controlled Congress for most of the past 40 years. ((And believe me, this is not a broken record: \ It's the same old tune -- it's called the Middle Class Blues.) Already this year, I've given Congress a choice between economic growth and big government. Congress took sides with big government. Here's what happened: In January, I proposed a common- sense, comprehensive plan to get this economy moving faster, right now. The plan includes tax incentives to encourage businesses to hire new workers and breaks for young families who want to buy a first home. Half a million jobs would have been created, if if Congress had acted right away. But they didn't. Instead, Congress passed a package of new government spending and new taxes. A package they knew I'd veto. So I sent their plan back. I'm still waiting. almost 200 days later. This economic recovery plan is being held hostage, and the ransom note reads: "wait till after the election." The party that controls the Congress is holding jobs and free enterprise hostage to their hopes that they can elect a tax- and-spend partisan of their very own to the White House. The other party talks about "class warfare" about squeezing more from the so-called "rich." What they don't say is that more than half of those affected by their proposed hike in individual tax rates are family farmers small business men and women 3 people like yourselves. \ You're trying to create jobs. You need a pat on the back not $100 billion in new taxes and federal mandates on your shoulders. 11 I understand you're going up to Capitol Hill later in the day. I'd ask you to take a message up there with you: Tell your members of Congress we need quicker growth now. Tell them to approve my growth initiatives -- without delay. 11 Tell them to release this economy, \ approve my jobs program, and put America back to work now. 11 You and I are together today because we also share a vision for the long term: We want to build a solid foundation for America's future in the world economy. And one of the most exciting developments in our nation's history is coming now to fruition. I'm talking about the North American Free Trade Agreement. Our negotiators reported solid progress from the meetings in Mexico City last weekend. They'll meet again [date and place]. We're very close to completing an agreement that will mean more jobs / more growth /more opportunity for American workers. Look at the numbers: During the recent, partial opening of the Mexican markets since 1986, U.S. exports to Mexico have almost tripled. More than 600,000 American workers now owe their jobs to trade with Mexico. We enjoy a robust trade surplus with Mexico -- $2.1 billion last year, and it's estimated we'll achieve a surplus of more than $8 billion this year. The new jobs created by trade with Mexico are to be found not only in the 4 border states, but all across the country. Our top ten states exporting to Mexico now include Michigan, Illinois, New York, Pennsylvania and Florida. When the trade agreement goes to Congress -- not if, but when -- I'll need the utmost help from each and every one of you. Please don't have any illusions this will be an easy fight. The leadership of Hispanic business men and women was crucial in winning our fast-track effort last year. This new round of the battle will make fast-track seem easy by comparison. Very frankly I'm worried about my opponent. He pays lip service to open trade -- but when it comes to a real decision, I'm worried he'll put his proxy in the pockets of the big unions, the ideological interest groups, and the protectionist faction in Congress. 11 We've consulted closely with Congress and with business leaders every step of the way in these negotiations. We made commitments to Congress last year, and we will meet each one of them. And when we wrap up the North American Free Trade Agreement, it will be a good deal for American consumers and businesses -- and especially American workers. America faces a choice this year between starkly different philosophies. The other side doesn't trust the American people with their own earnings, with their own property, with their own plans and dreams for the future. I'm going to stand up for something different. Something that's right for America. To me ideas like free trade are worth 5 fighting for -- because we're fighting for our children's future. I know that's not politically popular in all places. Too many of us in national politics too often act like an old South Carolina Senator, Oliver Johnston. Johnston didn't like to cover anything controversial in his newsletter to his constituents. He told his aide, just put in a column about communism. The aide complied, writing a crackerjack column exposing the evils of communism and putting the good senator squarely on the side of America. Johnston read the draft and asked, "Son, how many communists do you think we have in South Carolina?" The aide answered, "I suppose five or six." Senator Johnston replied, "Just make sure they don't get this newsletter." Well, I know that more than five or six people are going to stand against free trade. But I'm not going to back down. You know it's right, and I know it's right. Let's do what is right for America -- let's do what's right for the future. I hope you'll agree with me. Thanks again for all that Hispanic businessmen and women are doing to build a solid foundation for our future. May God bless all of you. # # # July 13, 1992 MEMORANDUM FOR JOE DUGGAN FROM: MICHELE NIX SUBJECT: HISPANIC BUSINESS LEADERS I talked to Public Liaison about the event. Shiree Sanchez is the project officer. She is out today, but her assistant, Jeannie, will be checking in with her later this afternoon. All Jeannie knows at this point is that there will be 250 invitees, Hispanic business leaders. They were ones mentioned in Hispanic Business Magazine. OPL has not yet mapped out the scenario for the event -- all we know is that it's a Rose Garden event, starting at 9:30 a.m. In the meantime, OPL is getting me a copy of the magazine article from the magazine. I've attached one of our most recent speeches to Hispanic audiences -- Cinco de Mayo by Hinchliffe/Gershowitz. One recent criticism the President's had re his speeches to this group is too much pandering. We need to watch that in this upcoming draft.