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EXECUTIVE SESSION -- (Senate - February 06, 2001)

I never mind saying this because it is just true. Even though you talk about one region of the State, you never want to act as if you don't care about other regions. Northeastern Minnesota is like a second home to Sheila and I. This is where our campaign started in 1989. They supported me when no one

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thought I ever had a chance. These are people with the greatest work ethic in the world. They are just incredible people. There are a lot of broken lives, broken dreams, and potentially broken families in northeastern Minnesota.

   I always go to one high school just to stay in touch with the students there. I have been there about three or four times in the last year or two. The discussions with the students are so poignant. They want to know if they can afford college. They want to know what is going to happen to their mom or dad, and whether or not there will be any jobs for them. These are good jobs that pay probably $65,000 a year, counting health benefits. There are not a lot of other jobs such as that. Of course, there will be a future because when you have people with such a strong work ethic and who are so self-reliant and self-sufficient it will happen.

   But I want to say this on the floor of the Senate. When I was at this gathering, I was looking out over about 1,000 workers. And I thought to myself: These are industrial workers. All too often in our trade policy and all too often on the floor of the Senate and on the floor of the House of Representatives, they have been out of sight and out of mind. I could add the autoworkers to the steelworkers, and a lot of industrial workers as well.

   In this particular case, the import surge of steel --in the case of taconite workers, it is semifinished steel --slab steel from Brazil, from South Korea, from Russia, and from other countries way below our cost of production has essentially put them out of work. These steel workers on the Iron Range of Minnesota want to know where they fit into this international economy. I say this to Mr. Zoellick--and I will say it every day for the rest of my time in the Senate--why can't we have a trade policy that, of course, recognizes the importance of trade but also works for working people in our country? If it is true that we live in an international economy--yes, it is true--then if you care about human rights, you have to care about it not only in our country but other countries. If you care about the right of people to join a union and make decent wages for their families--you have to care about that, not only in our country but other countries as well--if you care about religious freedom, you have to care about this in our country but other countries as well. If you

   care about the environment, you have to care about it in an international context. But from NAFTA to GATT to WTO to efforts to have fast track here and there, I have not seen an effort to really talk about a fair trade policy.

   I am not an isolationist. I am an internationalist. My dad was born in Odessa, Ukraine. He fled persecution in Russia. He spoke 10 languages fluently. I grew up in a family where there was no other choice but to be an internationalist. But there has to be some new rules that come with this international economy.

   This has to be an international economy and global economy that works for steelworkers--workers for autos, workers for family farmers, the environment, and human rights. That is not the case now. Lord, I have given enough speeches on the Senate floor about human rights violations in China and other countries as well. I will not do that today.

   I make this appeal to Mr. Zoellick and appeal to my colleagues that, whatever we do, let's try to figure out some additional steps we can take that will give some assurance to hard-working people in our country so they don't get the short end of the stick and get spit out of the economy because we have no level playing field.

   That is what has happened to these steelworkers on the Iron Range. That is exactly what has happened to these taconite workers.

   I think Senator Dayton would say the same thing. We are desperately trying, with Congressman Oberstar and others, to get trade adjustments to people. We hope the taconite workers fit into that. We want to talk about section 201, and the Rockefeller bill deals with the whole problem of unfair trade in steel , and whether or not we have to say to the other countries we can't deal with these import surges, especially if we think it is a dumping of steel , or semifinished steel well below the cost of production; especially when you talk about countries where people do not get decent wages, where there are no OSHA or any workplace safety rules.

   There has to be a way we can have some competition and a trade policy that makes sure steelworkers on the Iron Range of Minnesota and family farmers and people who care about the environment and people who care about human rights figure in. I think those industrial workers are simply off the radar screen when it comes to politics in the Nation's Capital today.

   There are two Senators on the floor: Senator Grassley from Iowa, who is chair of the Finance Committee, one of the best Senators in the Senate--he is wrong on every issue but he is one of the best Senators in the Senate--and Senator Baucus, who is also ranking member of the Finance Committee, who is very skillful. I say to both of my colleagues and other Senators, I hope maybe this year, since we are 50/50, and we will have a lot of passionate debates, there are certain areas where maybe we can work together. Maybe there are some things we can do to try to make this trade policy work a little better for some of the people in our country and in this particular case for some of the steelworkers on the Iron Range and some other people in my State much less other States. That is the appeal I make today.

   I yield the floor.

   The PRESIDING OFFICER. The Senator from Iowa is recognized.

   Mr. GRASSLEY. Mr. President, I yield myself such time as I might consume.

   GRANT ALDONAS

   Mr. GRASSLEY. Mr. President, I rise for a very special purpose relating to the work of the Senate Finance Committee and the aspect of our work that deals with international trade and the high caliber of staff who have been on the International Trade Subcommittee over a long period of time. But I take special note of one of our staff people, our chief trade counsel, Grant Aldonas. He is right here.

   He is going to soon be leaving the position that he has with our committee. It is going to be a loss for our committee, and particularly for me as a new chairman. It is going to be a tremendous loss because people of his caliber who are so successful in the private sector and are willing to come back into public service are few and far between. He is one who has done that. He has done it for 3 1/2 years as the Finance Committee's top trade lawyer. He served Senator Roth before me with the greatest of professionalism and diligence; he has done a very good job.

   Grant has left his mark on some of the Senate's most significant trade policy initiatives--the passage of the Trade and Development Act of 2000, and the passage of the bill that has been on everybody's mind over the last 3 or 4 years giving permanent normal trade relations status to the great country of China. This was chief among all the work that he did for that period of time on the Senate Finance Committee.

   I think I can speak for members of the Senate Finance Committee on both sides of the aisle.

   They have come to rely upon Grant's skill and judgment. Even though he is very skillful, judgment is the greatest asset that he has when dealing with the policies of international trade, not only from the domestic standpoint but from the international standpoint. Judgment with good common sense is very important.

   I have already referred to his success in the private sector. That is because he is a good lawyer. He is also a good public servant and just a plain good person.

   I wish you, Grant, and your wife Pam all the best in your new life beyond the Hill. Thank you very much for your services.

   I yield the floor.

   The PRESIDING OFFICER. The Senator from Montana.

   Mr. BAUCUS. I yield myself such time as I consume.

   I join in the remarks of our distinguished chairman to Grant Aldonas. I am fond of saying I believe the most noble human endeavor is service--service to church, to family, to the community, State and Nation; whatever makes the most sense for each one of us graced to be on the face of this Earth particularly public service--more particularly, public service where

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you don't get your name in the headlines or the evening news, public servants who don't have huge egos but are working for the country in the best interests of the United States of America and all Americans. Grant certainly is in that category.

   Grant is a guy who works behind the scenes to get results. Again, it is not headlines. It is talking to all the Senators, the Senators' staffs, the administration, whoever it is he must talk to in order to get a result, legislation, something passed for the sake of the people.

   He is a great bipartisan kind of a guy. He is particulary effective because of his prior service, whether USTR, the State Department, or private sector.

   I do think his background as a lawyer helps. The understanding of the law helps one be effective. There are very bright and fine ways to get around that stuff, but generally I think a legal background is quite helpful.

   Whether it is China, PNTR, or trade bills of Africa, Caribbean, Grant has been there--a true professional, calm, even tempered, smart, creative thinking, diligent, hard working, focused on getting results.

   I underline the point the chairman made; namely, of Grant's sense of judgment and his common sense, a commodity which is probably one of the most important a person can have. We will miss you, Grant. We know you will go on to bigger and better things. We also know in the real sense you will not have left. We will still be able to call you, seek your advice, and wish you the very best.

   In the remaining minutes, I thank the Senators who have spoken. They make very good points on which I know the administration and Mr. Zoellick will focus.

   How we bring all the components together for coherent consensus in developing a trade policy for America is extremely difficult. It includes business interests of America, labor interests in America, and environmental interests in America. It includes all the Americans who think they are left out of trade and the benefits of trade agreements. Companies do pretty well in some places and employees wonder where they fit in to all of this. We have to work harder to develop that consensus. I very much look forward with the chairman and people such as Grant and others in the administration to develop that consensus. Frankly, we have no other choice. We have to find that consensus to be effective and serve our people.

   I suggest the absence of a quorum.

   The PRESIDING OFFICER. The clerk will call the roll.

   The legislative clerk proceeded to call the roll.

   Mr. DASCHLE. Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.

   The PRESIDING OFFICER. Without objection, it is so ordered.

   Mr. DASCHLE. Mr. President, I want to say a few things about the nominee and about the larger issue of trade.

   I commend my distinguished ranking member for his comments earlier and those who have already expressed themselves. It goes without saying, and it ought to be emphasized, that Robert Zoellick is going to be an excellent Trade Representative. He has broad Government experience and a record of achievement that is enviable. His experience in the State Department, the Treasury Department, and the White House is a clear demonstration of his commitment to public service and public policy.

   The USTR role is one that I think is an increasingly important role in the Federal Government, particularly given the increasing importance of trade and globalization generally.

   I am concerned about reports that consideration was given to downgrading the position from its Cabinet rank, and I am very pleased that the Cabinet rank in this case will be retained.

   As I look back over the 106th Congress, one could argue that some of our greatest achievements were in the field of trade. We enacted the Caribbean Basin and African trade bill. We met our obligation under the WTO regarding FSC. We granted permanent normal trading relations to China, paving the way for the most populous country in the world to join the global rules-based trading system.

   Now we have a chance to build upon the achievements and the record of the 106th Congress by promoting the economic, national, and foreign policy interests of the United States in a global economy.

   The United States is uniquely positioned to benefit, in my view, from increased globalization. First, we have the most productive economy in the world. Second, we have a comparative advantage in an increasingly information-based global economic framework.

   Globalization improves productivity as countries specialize in areas of comparative advantage and puts downward pressure on prices consumers face. We have seen examples of that over and over.

   The promotion of international understanding and the reduction of international conflict is critical if this is going to happen in the months and years ahead.

   The freer flow of goods, capital, people, and ideas around the world creates interdependence and understanding that both can help lower the probability of conflict and raise the cost of conflict.

   There is an economic cost to a nation being ostracized from the global economy. Economic liberalization advances key foreign policy goals such as increased economic freedom and reduced poverty. So the stakes could not be much higher for us or for the world as we create this global framework and recognize the advantages of participating in it.

   We also have to recognize that participation in and of itself is not all necessarily positive. There is a lack of domestic consensus on expanded trade and globalization, and as we consider all of the public policy choices we will face in the 107th Congress, I hope we work to try to build a better consensus, one we did not have in all occasions last year.

   We start building that better consensus by recognizing that

   globalization can inflict costs on certain groups, and those costs need to be addressed.

   Workers in import-competing countries may face downward wage pressure and job loss. In a recent study, ``Americans on Globalization'' the author, Steven Kull, found that people would be much more supportive of increased globalization if the government did more to help people who lose out through trade. I believe that is true. I do not think there is any question that if we could find ways with which to address that concern, a consensus could be more the reality than it is today.

   Fully 66 percent of respondents agreed with the following statements: I favor free trade, and I believe it is necessary for the government to have programs to help workers who lose their jobs.

   That is all they seem to be asking: the realization that there are people who get hurt as this new infrastructure gets established.

   Another 18 percent favored free trade in the absence of such help, while 14 percent opposed it with or without the help. We have 66 percent of the people who say they favor free trade so long as we address the problems of free trade. We need to work together to do that to address those problems.

   Our challenge is to build that consensus on trade policy in a global economy, not only in this country but around the world.

   I look forward to working with Bob Zoellick and my colleagues on the challenge we face in doing that constructively and successfully.

   There are some key elements, in my view, for building that consensus. First, I believe one of the key and perhaps one of the fundamental approaches that will be required is a realization that expanded worker adjustment assistance is one way with which to ease the pain and address the problem. A more broad-based, flexible, and effective adjustment assistance program is clearly needed, and I hope we all can accept that realization.

   A smooth transition from displacement back into the workforce is important for communities and the overall economy, and such assistance is critical to building consensus on moving forward on greater trade liberalization.

   Bob Zoellick was a key member of the Trade Deficit Commission. The Commission did not agree on the underlying cause of the trade deficit or how to remedy it. The only area of broad bipartisan agreement was for expanded worker adjustment assistance.

   I look forward to working with Mr.

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Zoellick in this area. I look forward to recognizing the possibility for bipartisan consensus on expanded worker adjustment assistance. I hope it will be an integral part of anything we do in the longer term with regard to trade policy.

   A second element is increased support and emphasis on lifetime learning. A policy that waits until someone loses a job is doomed to failure. Over time, the goal has to be to embed the culture with an appreciation of learning and upgrading skills throughout one's life, and that by doing so, economically and educationally, this new construction of lifelong learning can be an integrally important and extremely essential part of anything we do to advance the cause of world trade.

   Let's recognize that building those learning skills and upgrading them throughout life must not be viewed simply as an education issue but as a trade issue.

   Third, we must advance labor and environmental standards around the world. I believe this has to be done on a bilateral and multilateral basis. Recent bilateral trade pacts, such as the one with Jordan, have begun to make progress in this critical area. But there is so much more that needs to be done. We recognized it in the bilateral arrangement with Jordan. We ought to recognize it in any new bilateral arrangement. But, clearly, we have to recognize it in multilateral efforts as well.

   We recognize how difficult it is. We recognize how challenging. We recognize how divisive. We recognize how much debate, and in some ways confrontation, has occurred over issues relating to labor and environmental standards. But we also must recognize that if we are going to address increased consensus, we must address this issue.

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