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Congressional Testimony
May 16, 2000, Tuesday
SECTION: CAPITOL HILL HEARING TESTIMONY
LENGTH: 1507 words
HEADLINE:
TESTIMONY May 16, 2000 PHILIP M. CRANE VICE CHAIRMAN HOUSE
SMALL BUSINESS TAX, FINANCE, AND EXPORTS CHINA TRADE IMPACT ON SMALL BUSINESS
BODY:
May 16, 2000 Vice Chairman of House Ways and
Means Committee Philip M. Crane Statement in Support of China PNTR At Committee
on Small Business Subcommittee on Tax, Finance and Exports Chairman Manzullo
thank you for inviting me to testify before your Committee in support of
granting China permanent normal trade relations and its
importance to small businesses throughout the United States. I would like to
enter a copy of my statement into the record. I want to share with you the
results of a General Accounting Office (GAO) report I requested on the impact of
international trade on small- and medium-sized U.S. businesses. But first, I
want to talk about the overall importance to our country of granting China
permanent normal trade relations. Approving permanent
normal trade relations with China will create new jobs for a new
economy. We are talking about more American jobs -- jobs paying a higher wage
because export related jobs pay an average of 1 7 percent more than non-export
related jobs according to the Department of Commerce. The choice facing us on
normalizing trade relations with China is historic, perhaps the most important
vote the House will cast this decade. The new trade agreement with China is a
one- way deal in our favor because it does not increase access to the U.S.
market for the Chinese. The United States represents only 5 percent of the
world's population while China is nearly 20 percent. We can sell only a limited
number of products and services within the United States. In order to keep our
economy growing, we have to have access to a market the size of China's. Not
only as it exists today - which is huge-but access as it continues to grow into
the world's largest consuming market. In a global economy, increasing trade with
China is not only the best way to keep our economy growing, but it is also the
best way to help improve the standard of living and human rights conditions in
China. This is clearly a win, win for America but it is also good for the
Chinese people. While we are all in agreement we need to continue to keep the
pressure on the Chinese government to improve human rights, labor, and
environmental conditions, giving the Chinese people access to products and
services -- manufactured and created with our standards is the best way to
improve conditions in their country. Mr. Chairman, as you know, small- and
medium-sized businesses are huge exporters of products and services. The
non-partisan GAO study I requested shows that over 202,000 small- and
medium-sized businesses in 1997 exported goods to countries around the world, a
figure nearly double the 1 12,854 companies that exported goods in 1992. 1 would
like to enter the complete study into the record The study also found that
companies with less than 500 employees accounted for 97 percent of all U.S.
exporters in 1997, which is the most recent year that data is available. Some of
the other highlights of the GAO Study include: Exports by small and medium-sized
firms account for one-third of the total value of exported U.S. goods. In 1997,
these businesses exported goods valued at $172 billion and accounted for 31
percent of total U.S. exports. In 1987, small and medium-sized firms exported
$42 billion in goods, or 26 percent of all U.S. exports that year. Small and
medium-sized businesses represented the highest shares of total U.S. exports in
miscellaneous manufactured goods (66%), lumber and wood products (64%), and
apparel (51%). By value, U.S. goods exports rose from $251 billion in 1987 to
$689 billion in 1997. U.S. goods exports increased from 5 percent of gross
domestic product (GDP) in 1987 to 8 percent of GDP in 1997. Similarly, U.S.
service exports rose from $99 billion in 1987 to $258 billion in 1997. Since
1990, small businesses have created 75 percent of all net new jobs. This study
shows that it's not just Wall Street that will benefit from trade with China,
but Main Street small business started by American entrepreneurs that represent
the heart of our economy as well. For hundreds of thousands of these businesses,
expanded trade has meant more and better jobs, higher wages, and better benefits
for their employees. This report is another indication that expanding trade with
China will open international markets even more to these diesel engines of our
nation's economy. In today's international marketplace, small and medium sized
businesses are no longer competing here in America, but around the world. I hope
my Colleagues who remain undecided on the upcoming vote on China will remember
how vitally important international trade is to small businesses and the
thousands they employ in their districts back home. Thank you, Mr. Chairman.
LOAD-DATE: May 20, 2000, Saturday
