Sen. Grassley submitted the following statement into the record at today's subcommittee hearing on the Andean Trade Preferences Act.
I want to commend Senator Graham for introducing the Andean Trade Preference Expansion Act on March 13th of this year. This bill would re-authorize and expand the coverage of ATPA to include many textile and apparel products, similar to the benefits provided to eligible countries under NAFTA and the Caribbean Basin Trade Partnership Act. Renewing and enhancing the Andean Trade Preferences Act is an important trade and foreign policy priority for President Bush and myself. I look forward to working with Chairman Baucus and Senator Graham to get it done this year. I would like to make three points.
First, renewing and enhancing ATPA has important foreign policy implications. The ATPA is a critical tool in our effort to fight drug trafficking. The intent of the Andean Trade Preference Act, from the beginning, was to advance our efforts to combat illegal drug production and trafficking. It was then and is now not so much a trade initiative as it is an effort to assist important allies in a critical fight. The nations of Latin America expect us to continue to stand by their side as we fight the scourge of drugs. They have paid a high price to aid us in this effort. It is a battle we cannot afford to lose. So we cannot fail to do our duties as legislators. We must renew the ATPA this year.
My second point is that this committee should not be satisfied with a short-term reauthorization of the current program. Today, only 10 percent of imports from ATPA countries enter the United States exclusively under the ATPA provisions. That means the current program is helping create economic opportunity in the Andean Region, but its impact is limited by the scope of its coverage.
It is a simple formula. The degree to which we are willing to expand the Andean Trade Preferences Act correlates strongly with the impact we can expect to have. The more we expand product coverage under the Act, the more economic growth we can expect it to generate. And the more economic growth it generates, the more employment it creates, and the less likely people will turn to drug trafficking for a living. So not only should we renew the program this year, we should work hard to expand it.
Third, the ATPA is important but there is something more we can do for ourselves and our Latin American nations. And that is pass Trade Promotion Authority this year.
Allow me to quote from a letter sent by nine Latin American ambassadors to a member of Congress on July 20, 2001, on the importance of Trade Promotion Authority. The ambassadors write:
"We are writing to you regarding an issue of utmost importance to our countries: the passage of Trade Promotion Authority (TPA) by Congress. As you know, our economic prosperity is intextricably linked to that of the United States. The United States has been historically willing to help the nations of Latin America during difficult times. We are grateful for that support. But as our nations continue to grow economically and become more fully integrated into the global economy, more and more we are looking for a strategic partnership with the United States. We believe that expanded trade is important to establish that partnership, and we believe that TPA is the foundation for increasing trade between the United States and Latin America."
The letter continues:
"Trade is a two way street. TPA will give all sides the confidence necessary to strike the best deal. Without TPA, the opportunity for changing what was agreed upon looms in the minds of your negotiating partners. With TPA, we are more confident that the agreement as struck will hold. That gives us all the more incentive to work hard to achieve consensus with your negotiators. We urge you to consider supporting TPA because we know it will be in our interest and your interest as well."
I could not have said it better myself. Let's do the right thing and pass both ATPA and TPA this year.