03.10.09

Cantwell Calls on U.S. Trade Representative Nominee Kirk to Move Quickly to Remove Barriers to Increase U.S. Competitiveness in 21st Century Global Economy

Urges Kirk to work with Congress to secure U.S. - South Korea Free Trade Agreement, designate Reconstruction Opportunity Zones, and reach bilateral agreement with China on alternative energy sources and technologies

 
WASHINGTON, DC – Monday, during a Senate Commerce Committee hearing on the nomination of former Dallas mayor, Ron Kirk to be the United States Trade Representative, U.S. Senator Maria Cantwell (D-WA) called on Kirk to work with Congress on a number of provisions designed to address current economic challenges by opening new markets to American goods and services. Specifically, Cantwell spoke of the need to secure a U.S. –Korea Free Trade Agreement. She also discussed the importance of designating Reconstruction Opportunity Zones throughout Afghanistan and the border regions of Pakistan and reaching a bilateral agreement with China to eliminate tariffs on clean energy goods and services. 
 
“In these times of economic uncertainty, it’s clear that we need swift and decisive action, both here and abroad, to help reverse the current economic slowdown,” said Senator Cantwell. “As one of the most trade dependent states in the country, Washington knows how important exports are to economic growth. Specifically, we must work to resolve differences in order to move ahead with the U.S. – Korea Free Trade Agreement to lock up important long-term contracts and shelf space with Washington state’s 5th leading export partner. We must also work with China to eliminate tariffs on clean energy and environmental goods and services by the Asia Pacific Economic Cooperation (APEC) organization summit, which the U.S. will host in 2011. I also look forward to partnering with Mr. Kirk to pass the Afghanistan/Pakistan Reconstruction Opportunity Zone Bill to give those nations the tools they need to create jobs and empower their communities against extremism. No nation can exist as an island. There is a broader, more valuable perspective when we are able to see the world from multiple vantage points, and by working cooperatively we can create more opportunities to get our economy back on track."
 
Senator Cantwell has been a long-time, vocal proponent of the United States’ bilateral alliance with Korea. In 2008, U.S. bilateral trade with Korea increased from $82 to $83 billion. South Korea was Washington state’s fifth largest trading partner. Specifically, Korea is an important market for both Boeing commercial aircraft and defense equipment. Under the U.S. - Korea Free Trade agreement there would be an immediate elimination of a 24 percent tariff on sweet cherries and an immediate elimination of the 30 percent tariff on wine, which boost Washington state exports.
 
Cantwell has long made increasing the dialogue between the U.S. and China a priority. During Monday’s hearing, she called on Kirk to join former United States Trade Representatives Michael Kantor, Carla Hills, and William E. Brock, in calling for President Obama to establish a cooperative, mutually-beneficial bilateral agreement between the United States and China on ways to reduce pollution and promote the use of cleaner, more diverse sources of energy through eliminating tariffs on clean energy goods and services. This U.S.-China cooperation could lead to a broader agreement to reduce tariffs within APEC.
 
The World Bank estimates that between now and 2015 roughly half of the world's new building construction will take place in China, highlighting the important role the construction of energy efficient buildings can have in shaping China’s energy footprint for the next 50 years, the average lifespan of buildings. These new Chinese building codes will generate demand for green building design and materials worth approximately $220 billion between now and 2020.
 
The Reconstruction Opportunity Zones Act, which Senator Cantwell re-introduced last week would:
 
Give the president the authority to designate "Reconstruction Opportunity Zones" (ROZs) in Pakistan's frontier area with Afghanistan and within Afghanistan. These ROZs would permit non-trade sensitive exports (i.e. textiles, apparel, agricultural products, and hand-crafted goods) from these areas to enter the U.S. duty-free, creating a strong incentive for private sector investment and job-creation. 
 
In order for an area to be designated as a ROZ so that goods may qualify for benefits, the president must determine that Pakistan or Afghanistan have established, or are making continual progress towards establishing: 
 
-         A market-based economy;
-         The rule of law;
-         The elimination of barriers to U.S. trade and investment;
-         The protection of intellectual property;
-         Efforts to combat corruption;
-         Policies to reduce poverty;
-         Policies increasing availability of health care and educational opportunities;
-         The protection of human rights and internationally recognized workers rights.
 
For a copy of the letter, please reference the attached document, or contact Cantwell's press office at (202) 224-8277.
 
 
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