U.S. exporters applaud passage of trade act as crucial to business confidence
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| Trade Promotion Authority (TPA) is a cornerstone of the Bush administration's economic policy |
New York, 2 August 2002 - America's leading international companies have hailed the US Senate's passage of the Trade Act of 2002 as a critical step in reinvigorating economic growth and restoring business confidence.
"This is a very welcome sign of renewed U.S. leadership in the global economy," said Thomas Niles, president of ICC's American affiliate organization, the United States Council for International Business (USCIB).
The USCIB is a leading pro-trade group that, in concert with other business organizations, lobbied in favor of the act on Capitol Hill.
"It reassures American exporters that we intend to push forward in opening up new markets abroad,"
Niles added.
The Senate adopted the Trade Act of 2002 this afternoon. Its key provisions would reinstate Presidential Trade Promotion Authority (TPA) for the first time since it lapsed in 1994. TPA provides
for an up-or-down vote by Congress on international trade agreements entered into by the U.S. President Bush calls TPA a cornerstone of his administration's economic policy and has pledged to sign the bill.
"Renewing TPA ensures that the U.S. can participate effectively in international trade talks on a number of fronts," according to Mr. Niles. "Our trading partners have shown themselves unwilling to make any serious commitments without assurances that Congress will not seek to renegotiate hard-fought trade pacts."
The U.S. is involved in ambitious talks launched last year by the World Trade Organization to lower global trade barriers. In addition, negotiations continue on the proposed Free Trade Area of the Americas, while the U.S. is in the advanced stages of free-trade talks with Chile and Singapore, and has announced plans for negotiations with the nations of Central America. USCIB has identified a number of key priorities for U.S. business in each of these initiatives.
A January 2001 study by the University of Michigan and Tufts University concluded that reducing global tariffs and other trade barriers by just one-third would boost world economic growth by $613 billion per year, with the boost to the U.S. economy alone estimated at $177 billion. The latter figure translates into a $2,500 yearly raise for a family of four.
The USCIB says the trade act would also:
· put in place a truly comprehensive trade adjustment assistance program to assist workers displaced by trade, including for the first time help with health insurance and wage insurance for older workers;
· expand the Andean Trade Preference Act, including previously excluded products of interest to Bolivia, Colombia, Peru and Ecuador;
· reinstate the Generalized System of Preferences for developing countries, and make duty-free treatment retroactive to September 30, 2001, when GSP expired.
USCIB is a member of the steering committee of USTrade, a broad industry coalition formed last year with the objective of securing Trade Promotion Authority. USTrade members together represent some 150 million Americans engaged in trade-related businesses and $2 trillion in annual trade flows.
USCIB promotes an open system of global commerce in which business can flourish and contribute to economic growth, human welfare and protection of the environment. Its membership includes some 300 leading U.S. companies, professional services firms and associations whose combined annual revenues exceed $3 trillion. As American affiliate of the leading international business and employers organizations, USCIB provides business views to policy makers and regulatory authorities worldwide and works to facilitate international trade.
Contact:
Thomas Niles, President, USCIB
+1-212-703-5055 or Click here to send a mail
or Jonathan Huneke, VP Communications
+1-212-703-5043 (office), +1-732-261-3133 (mobile) or Click here to send a mail