Secretary's Speech

Secretary of Commerce Carlos M. Gutierrez
Washington International Trade Association
Washington, D.C.

Thank you, John Castellani, for your introduction, and congratulations to WITA on this 25th anniversary.

I’d like to thank Steve Lamar and James Wilkinson for their leadership, and congratulate all of you on this important milestone. I’d also like to thank members of Congress who are here, in particular, my friend, Chairman Charlie Rangel.

The Bush Administration has kept our economy strong and vibrant through expanded economic opportunities at home and abroad. This vision, outlined in the National Export Strategy we are releasing tonight, has delivered results.

Since the end of World War II, the U.S. has led the global effort to dismantle trade barriers and advance worldwide prosperity. The worldwide economy has since experienced unprecedented growth.

Now we face a test to that continued leadership role. On May 10, Administration officials and members of Congress reached a bipartisan consensus on trade, yet there are still challenges on how to proceed with pending Free Trade Agreements with Peru, Colombia, Panama and Korea.

These agreements will set the tone for America’s policy and trade agenda for many years to come. So, we’re counting on House leadership to stand by its commitments.

We know that FTAs work. The U.S. is now experiencing record export growth on more than $1.4 trillion last year. 2006 exports grew at 12.7 percent, and year-to-date as of May, our exports have increased by 10.8 percent—more than twice the rate of imports.

Although America is the largest exporter in the world, we can do more, and we must do so by engaging with growing opportunity markets.

Nowhere is our vision for opening markets more clear than in our hemisphere. This Administration has been focused on the Western Hemisphere from the beginning.

• The President’s first foreign trip was to Mexico.
• Six of the 11 FTAs implemented under this Administration have been in this hemisphere.

Now we need to pass the Peru, Colombia and Panama Free Trade Agreements. In fact, we are calling on Congress to take action on the Peru FTA this month.

And in the case of the agreement with Colombia, President Uribe has been our staunchest ally in the region. He has shown tremendous courage by standing up to guerilla movements and narcotics traffickers. Ironically, there are those who cite violence as the reason not to pass this FTA.

Think about the message that sends Colombians and those in the region who want to replace violence with hope and opportunity!

In an editorial yesterday, former Spanish Prime Minister Aznar wrote that it would be “. . .unbearably cynical. . .to cite the failings of the Colombian democracy as an excuse to kill the U.S.-Colombia Free Trade Agreement. . .closing the door on Colombia either on the security front or on trade will strike at the very heart of the cause for freedom in Latin America.”

This is not the way to treat one of our best friends in the region, nor is it the message we should send to our allies.

The U.S. is not the only country vying for attention in Latin America today. Others have a different perspective on what the neighborhood should look like. While others seek to suppress people, ideas and debate, we seek the empowerment of the individual.

While some seek state control and the nationalization of economic sectors, we seek free markets. Think about this: a vote against these FTAs is a vote to slow vital reforms, helping those who wish to hamper the spread of free enterprise and democracy.

Chile is a great example of the positive results of free trade. Two-way trade over the first three years of our FTA rose by more than 150 percent, including 22 percent so far this year.

U.S. exports to our CAFTA-DR partners are up 16 percent over last year. And NAFTA has delivered real results, increasing trade flows by nearly 200 percent since 1993. Today, NAFTA is our largest trading partner with more than $865 billion of total trade.

The fourth pending FTA is with South Korea. Korea is our 7th largest export market—larger than Brazil and India combined. Yet there is far more potential for growth with the passage of an FTA.

An FTA will open up Korea’s markets for agriculture, autos and other American goods and services. It will eliminate nearly 95 percent of tariffs on consumer and industrial goods within three years.

Consider this: the FTA with Korea will diversify our economic engagement in the region.

Another effort toward regional diversification in Asia is our engagement with Vietnam. This year Vietnam joined the WTO and our two-way trade with Vietnam will likely top $10 billion. I’m pleased to announce tonight that I’ll be leading a trade mission to Vietnam later this year.

Let me turn to the topic of China. China is a rising economic power and a tremendous market for U.S. exporters. But when we find unfair practices we will work to level the playing field in China or elsewhere.

This Administration has demonstrated it will use every tool at its disposal to enforce our trade laws, from applying anti-subsidy and anti-dumping laws on Chinese imports to filing WTO cases. We play by the rules, and we expect others to do the same.

We have also communicated that the safety of our food, medicines and other products from our trading partners is of paramount importance. We believe this is a watershed moment for China.

A China that is part of the international trade community and is fair and open in its economic dealings is very much in the interest of the United States. Our dialogue with China is focused on this goal.

Looking forward, I am optimistic about our nation’s future. A lot is at stake. This is not a time to retreat, or to pull back. History shows that our country is at its best when we lead internationally, not when we adopt protectionist policies which convey a lack of confidence.

This is what you all have been focused on for 25 years. The Administration looks forward to working with you to foster bipartisan support for trade. We want to do that based on the May 10th agreement, starting with the four FTAs before us, and as always, Doha and TPA renewal remain important priorities.

In 1961, President John F. Kennedy created the Alliance for Progress. President Kennedy was a true internationalist who sought to establish economic cooperation between the U.S. and Latin American countries. At that time he said:

“We must support all economic integration which is a genuine step toward larger markets and greater competitive opportunity. The fragmentation of Latin American economies is a serious barrier to industrial growth.”

Ladies and gentleman, I wonder what John F. Kennedy would say about our debate today?

I believe he would encourage us to move forward and seek greater economic ties with our Latin neighbors.

Thank you.

This speech has been clarified since an earlier version of these prepared remarks.