[News Release - Congressman John E. Peterson - Pennsylvania's Fifth District - 1020 Longworth House Office Building - Washington, D.C. - 202-225-5121]
FOR IMMEDIATE RELEASE
May 23, 2000 
CONTACT: Jen Bennett
202/225-5121 
 
Normal Trade Relations with China will
Benefit Pennsylvania Farmers and Open Markets 
for All Businesses
By Congressman John Peterson 
 
Washington—The US House of Representatives later this week is scheduled to consider a bill that could  mean the difference between prosperity or financial hardship for our nation's farmers.   

A few weeks ago, I met with 200 members of the Pennsylvania Farm Bureau who came to Washington to discuss their legislative goals and priorities. I was the keynote speaker at their dinner and met with dozens of them individually.  They all told me the same thing in regards to their biggest concern: It is imperative that Congress reduce trade barriers so that America's farmers can be competitive. My offices have also received hundreds of communications from other Pennsylvania farmers who echo the same concerns.

Whether we like it or not, it is reality that we live in a global economy.  America's strongest economic sectors, which in addition to agriculture, includes the automobile and computer manufacturing industries, and financial and telecommunications services, rely more and more on foreign markets to stay solvent.  None of these industries can afford to be cut out of fair and equal trade with any nation--especially one with a population exceeding one billion.

Exports are increasingly important to Pennsylvania's agriculture and state-wide economy.  Since 1991, our state's reliance on agriculture exports has risen from 10 percent to 14 percent.  In 1998, Pennsylvania's agricultural sales overseas totaled about $580 million. These exports help boost the economy and farm prices while also supporting about 8,800 jobs (both on and off the farm). But as world demand increases, so does competition between exporting nations.

This week, I plan to cast my vote in support of reduced trade barriers, in support of our nation's farmers and in support of permanent normal trade relations with China. Our farmers cannot afford to have it any other way.

I know there is a great deal of misunderstanding and misinformation regarding what normal trade relations mean for our nation and our farmers.  But in summary, Congress recognizes  the importance of trade with China and has approved annual trade status for the past two decades  (US Trade with China is hardly something new). China is destined to become part of the World Trade Organization with or without Congress' approval of permanent normal trade relations, and when it does, China will have to make certain trade concessions with the nations with which it currently trades.   If the US has a normal trading status with China, we will have more bargaining power to significantly reduce tariffs on American products as well as eliminate a host of other protectionist barriers such as import quotas and distribution barriers.  

Some who are opposed to a permanent normal trading status with China will cite a recent report of the Economic Policy Institute claiming that such a trade status will cause a 817,000 loss of American jobs over the next 10 years.  The report and estimate is riddled with flaws and this is why:

The elimination of trade barriers does not destroy jobs. According to the Economic Report of the President, during the past 10 years, as trade barriers have been reduced and trade has expanded, total civilian employment in the US has doubled.   In addition, the unemployment rate falls as imports grow.  Since 1973, every percentage point increase in imports was associated with a .1 point decrease in the unemployment rate. (My source for this information is both the President's Economic Report and the Heritage Foundation)

The Economic Policy Institute study calculated the estimated initial increase in Chinese imports to the US (given Congress' approval of permanent normal trade relations) and assumed that the increase would continue at its estimated rate every year during the next decade.  This assumption greatly exaggerates the expected increase resulting from US-China trade.

Finally, it is a fact that more workers lose their jobs because of a labor dispute than because of import competition.

There is great merit to considering the 1.3 billion population of China.  These 1.3 billion people must eat and if we do not provide them with agricultural products, another nation will.

Two other issues that are being discussed during the debate about US-China trade are those of national security and human rights.   I plan to support an amendment to the China trade bill which requires the Central Intelligence Agency to report to Congress about potential national security dangers, if any, which may exist with increased US-China trade.  In addition, religious leaders such as Pat Robertson and Bill Graham have expressed support for the China trade bill. Their notion, which is similar to mine, is that if we are engaged with China, we are more likely to influence their apparent effort to improve the way the nation treats its citizens.

America is at a crossroads with many of our industries, but particularly agriculture.  If we do not reduce trade barriers, our farmers fail and continue their exodus from the industry and from family farms.  A permanent, normal trading relationship with China will provide more opportunities for our farmers. As the Representative of the 5th Congressional district, I came to Congress with the promise to enhance job creation and protect farmers. US-China trade will do both.
 
 

 
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