Tom Donohue, President & CEO
U.S. Chamber of Commerce
May 21, 2001
 

You may not realize it, but you have made history by being here today.  This event marks the first time ever that the senior leadership of the worldwide Chamber of Commerce business federation has come together under one roof.

We have business leaders from 60 different countries in this room. Now that should tell you something about the importance of what it is we’ve gathered to discuss.

The Chamber Federation consists of 3 million businesses, 3,000 state and local chambers in the U.S., 850 business associations, and 90 American Chambers of Congress in 78 countries.  No other entity in the world has the breadth, scope or diversity of this group of business leaders. When we work together as a single unit, there is nothing we cannot achieve.

IMPORTANCE OF TRADE

Why have we come from far and wide to be here today?  I can think of three reasons. First, trade is essential to America’s economic prosperity, as well as part of the fabric of American history and culture.

American exports support 12 million U.S. jobs and account for almost one-third of real U.S. economic growth over the past decade.  The tradition of trade in this country stretches back to the brave men who founded America.

The great explorers whose names are engraved on the flags above us risked their lives to find new markets and to create greater prosperity for their families back home.  The tradition was carried on by the very first settlers who uprooted their families for greater economic opportunity.

Free trade is an American ideal. It embodies everything this country stands for – opportunity, progress, free enterprise, democracy, and freedom.  America has worked hard and sacrificed much to protect those values and achieve its position in the world today.

Business has played a big role, making smart decisions and investing in new technologies that have made us the world’s most prosperous, advanced nation.  We can’t afford to waste the sacrifices and contributions of our parents and grandparents by turning inward and rejecting opportunities to export American products, ideas, and values.

And shame on us if we choose to jeopardize the future of our children and grandchildren by failing to seize every chance possible to advance free and fair trade.

Second, we recognize that advancing trade is not just our duty, but a moral imperative.

For too long, the debate over trade has bogged down over a dizzying array of acronyms.  We need to step back and look at the big picture. 

Free trade lifts poor countries out of poverty, improves the environment, champions human rights, and advances labor standards.

It gives the poor new hope, the politically oppressed greater freedom, the war-ravaged a better chance to live in peace, and the hard-working an opportunity to realize their dreams.  It keeps the cost of goods and services low and offers more choices.  It’s led to new discoveries and brought together diverse people separated by tens of thousands of miles.

And free trade treats everyone equally. It does not pick favorites. It does not discriminate against race, color, origin, religion, or gender. It carries with it greater opportunity and prosperity for all people.

In short, trade has been one of the most important catalysts of human progress since the beginning of civilization. 

And the third reason we’re here is because we all realize the need the act…to mobilize the Chamber Federation in support of expanded free trade…to launch a massive grassroots initiative that will influence lawmakers…and to challenge the naysayers and tell the good story about trade.

FALLING BEHIND

We can’t wait to act next year, or even next month.  We must act now because the U.S. is quickly losing ground in the free trade arena.

As more and more countries begin to realize the tremendous benefits of free trade, the U.S., in contrast, appears to be backing away from the mushrooming number of bilateral, multilateral, and regional free trade agreements being negotiated around the world.

U.S. companies want to be a party to free trade pacts. They are confident they can compete against anybody in the world and win… if given the chance. But too often their hands are tied by our very own government.

The World Trade Organization counts more than 130 regional free trade agreements in force around the globe.  The U.S. is a party to just two – one with Canada and Mexico and the other with Israel.

Only 11 percent of world exports are covered by U.S. free trade agreements, compared with 33 percent for the European Union.  And while Western European nations have negotiated more than 900 bilateral investment treaties, the U.S. is party to just 43.

I recently spent two days in Mexico. That country had 32 free trade agreements when I got there and 33 when I left.  This country can no longer afford to sit on the sidelines while other nations are busy cutting deals with one another.

Globalization is inevitable, irreversible, and in fact, desirable. If we don’t embrace it and accept the changes that come with it, we risk falling by the wayside and losing our position in the world.

America has no choice but to re-engage international markets and reassert its global influence. Our future is at stake.  For that to happen, there are four very important priorities we must tackle immediately.

POLICY PRIORITIES

First, we need to restore trade promotion authority to the president.

Under this authority, Congress agrees to grant the president the privilege of an up-or-down vote, within a specified period of time, on agreements negotiated between the U.S. and its trading partners. 

Every president since Gerald Ford has enjoyed this right; it’s a critical element to the success of any negotiating strategy—especially now, given the recent explosion of global trade.

Trade promotion authority gives U.S. negotiators the kind of credibility that is essential for free trade agreements.  Negotiators from our potential trading partners must feel confident that U.S. negotiators have the full backing of the U.S. government, and that Congress won’t try to undermine them by adding controversial and unrelated amendments to their agreements.

Our trading partners are reluctant to even take a seat at the table knowing Congress has the opportunity to significantly change whatever agreement they work long and hard on to reach.

How could you blame them? As anyone in business knows, you don’t negotiate with people who are not in a position to keep their promises.  We cannot dally on trade promotion authority.  Congress must act in time for the upcoming new round in Qatar.

Qatar is the first opportunity to advance worldwide free trade since the Seattle meeting two-and-a-half years ago.  Our leadership role at this very important gathering will be severely diminished if our president isn’t empowered with trade promotion authority.

Second, we must separate trade from labor and environmental rules.

Trade agreements are already difficult to achieve. They could become impossible if negotiations become loaded down with non-trade issues.  We are an easy target for anti-free traders who say business doesn’t care about workers’ rights and environmental standards.

But they’re wrong. Business does not oppose discussions on labor and environmental issues.  Our potential negotiating partners have stated repeatedly that they want these issues dealt with separately.

Efforts to include them in free trade agreements will derail negotiations or result in a slew of economic sanctions that end up hurting U.S. businesses and workers.  Worse yet, if locked out of free trade deals, U.S. companies will move jobs and operations to foreign countries, and many small companies will go out of business.

And let’s not forget; history has proven that countries that trade with the United States not only create more jobs, but also raise their standard of living and generate additional wealth to pay for environmental improvements.

When it comes to labor and environmental protections as they relate to trade, we can learn some valuable lessons from some of our neighbors.  Canada signed free trade agreements with Chile and Costa Rica that created a parallel accord setting up an independent review of labor and environmental issues.

The U.S. is too often cut out of the loop as it is. Introducing labor, environmental and other social policy provisions in trade negotiations will only put us further out on the fringe.  We will use the full resources of the Chamber Federation to vigorously oppose efforts to hold U.S. competitiveness hostage with labor and environmental provisions.

Third, we must eliminate U.S. unilateral sanctions.

We currently have in place unilateral sanctions against 70 countries, and not once have they achieved their stated goal of fostering the spread of human rights, democracy, and freedom.

But they’ve had great success in making martyrs out of tyrants and putting U.S. businesses at a competitive disadvantage with the rest of the world.  More than forty years of unilateral sanctions against Cuba hasn’t changed much in that country. It still has an anti-democratic government, a socialist economy, and a poor record on human rights.

Clearly, our government is applying a tactic that doesn’t work, and our businesses are paying the price.  Engagement…the exchange of goods, values, ideas, and people. Those are the things that will foster the growth of free enterprise, democracy and liberty in countries like Cuba, Iraq and Syria.

Finally, the U.S. must seek opportunities to aggressively expand free trade by all available means.

The U.S. must have a seat at the table anytime trade is discussed. We might not always reach a deal; there will be times when talks break down because of unfair terms.  But we must never disengage. The lines of communication should be open at all times.

We don’t suffer from a lack of potential trading partners or avenues – there’s the WTO, the Free Trade Area of the Americas, the Asia-Pacific Economic Cooperation process, to name just a few. Each must be pursued with vigor and determination.

I should mention that the four principles I have just laid out are summarized in the Summit Declaration that you received before the Summit and which are included in the briefing books.

During lunch, you’ll be able to sign a poster-sized copy of the Declaration. The goal is to relay to the Administration and the Congress that the Chamber is united and committed on trade, and that we will we fight for these goals until we’ve achieved them.

ACHIEVING POLICY PRIORITIES

That begs the question, “How do we do that?

First, we build strong grassroots support by telling the powerful story of free trade back in our communities.

We’ll win the free trade debate against protestors and labor union bosses if we do a better job communicating the tremendous benefits of trade to the ordinary folks we live with — the factory worker, the owner of the hardware store, the city council member.

That’s why the U.S. Chamber created Trade Roots, the nation’s only ongoing, national grassroots trade education program.  How many Americans know that U.S. exports support one in five manufacturing jobs? 

How many Americans realize export-related jobs pay 13 to 18 percent more than other jobs?  And how many Americans understand that one in three acres of U.S. farmland is planted with crops for export?  I’m willing to bet not many.

The Trade Roots program is working hard to help people understand that expanded trade creates stronger, more prosperous communities.

And the program has been successful. The hundreds of educational seminars, literature packets, media interviews, and paid advertisements put forth by Trade Roots made the difference on China PNTR.  With your help, the Chamber can also make a difference on trade promotion authority, unilateral sanctions and our other trade priorities.

Second, we must make effective use of the media to send our message.

Hundreds of ads, interviews, newspaper columns, and Internet communications pushed us over the edge on China PNTR and will be key to future successes.

Finally, we have to skillfully lobby Congress and the White House. Gaining the support of the general public is essential, but in Washington, you also need those face-to-face meetings with congressmen, senators, and White House officials.

We’ve increased our influence in this town by attracting the best and brightest lobbyists and policy experts, and also by becoming more involved in the electoral process.

We won’t let up in our crusade for free and fair trade. We’ll be closely watching every trade vote, and those who vote against granting U.S. companies the opportunity to compete internationally will be held accountable.

CONCLUSION

Ladies and gentlemen, the next two days present an historic opportunity for the business community to put Congress, the White House, global governing bodies, and governments around the world on notice that we are very serious about creating greater opportunities for free and fair trade around the world.

Our argument is quite simple. Expanded free trade is one of those few issues where everybody involved comes out a winner. Free trade is like a rising tide — it lifts all boats.  But isolationists and protectionists around the world are intent on painting a different reality. They try to sow fear among the many to protect the interests of a few.

That’s why it’s so important that the spirit of this two-day Summit cease not to exist after we adjourn.  We must carry the message of free trade—the hope, opportunity, and progress it delivers— back to the countries and communities where we live.

 Thank you.