{ NOT AN OFFICIAL TRANSCRIPT OF THE SENATE PROCEEDINGS.}
ORGANIZED LABOR, BECAUSE WHERE ARE THEY?
I HEARD FINALLY -- FINALLY -- BACK TO TOWN CAME THE LEADER, MS.
HE HAVELY DUBREAUX. SHE IS THE BEST OF THE BEST. SHE WON THE
PRESIDENTIAL MEDAL HERE LAST MONTH AND I CONGRATULATE HER. SHE
HAS BEEN OUTSTANDING OVER THE MANY, MANY YEARS. AND MAYBE IF I
CAN EXPLAIN THIS BILL LONG ENOUGH, WE MIGHT BE ABLE TO PICK UP
{12:30:37} (MR. HOLLINGS) { NOT AN OFFICIAL TRANSCRIPT }
SOME VOTES. NOW, MR. PRESIDENT, I DO SEE SOME OTHERS WAITING. I
SAID I WOULD TAKE AT LEAST 15 MINUTES, BUT MY GOOD FRIEND FROM
MINNESOTA WHO REALLY HELD THE FORT ON YESTERDAY HAS BEEN TRYING
TO BE RECOGNIZED AND SAY JUST A FEW WORDS. I YIELD THE FLOOR.
{12:30:57 NSP} (MR. WELLSTONE) { NOT AN OFFICIAL TRANSCRIPT }
MR. WELLSTONE: MR. PRESIDENT?
I -- MR. PRESIDENT?
{12:31:01 NSP} (THE PRESIDING OFFICER) { NOT AN OFFICIAL TRANSCRIPT }
THE PRESIDING OFFICER: THE SENATOR FROM MINNESOTA.
{12:31:04 NSP} (MR. WELLSTONE) { NOT AN OFFICIAL TRANSCRIPT }
MR. WELLSTONE: I SEE THE SENATOR FROM OHIO IS HERE, AND I WOULD
SAY TO MY COLLEAGUE, MAYBE WE COULD, IF IT IS ALL RIGHT, COULD
I ASK UNANIMOUS CONSENT TO FOLLOW THE SENATOR FROM OHIO?
{12:31:14 NSP} (THE PRESIDING OFFICER) { NOT AN OFFICIAL TRANSCRIPT }
THE PRESIDING OFFICER: WITHOUT OBJECTION. THE SENATOR FROM OHIO
IS RECOGNIZED.
{12:31:18 NSP} (MR. DEWINE) { NOT AN OFFICIAL TRANSCRIPT }
MR. DEWINE: I THANK MY COLLEAGUE FROM MINNESOTA FOR THE
COURTESY. AND JUST FOR HIM AND THE SENATOR FROM CALIFORNIA, I
PLAN ON SPEAKING ABOUT 1 MINUTES. MR. PRESIDENT, YESTERDAY --
ABOUT 12 MINUTES. MR. PRESIDENT, YESTERDAY I FILED AN AMENDMENT
TO H.R. 434 THE AFRICA GROWTH AND OPPORTUNITY ACT WHICH
AMENDMENT WOULD IMPROVE OUR NATION'S ABILITY TO RETALIATE
AGAINST ILLEGAL TRADE PRACTICES BY FOREIGN GOVERNMENTS. DESPITE
{12:31:49} (MR. DEWINE) { NOT AN OFFICIAL TRANSCRIPT }
EFFORTS TO REDUCE EUROPEAN TRADE BARRIERS AGAINST AMERICAN
AGRICULTURE, DESPITE RULINGS BY INTERNATIONAL TRADE BODIES THAT
EUROPEAN TRADE BARRIERS ARE ILLEGAL -- REPEATED RULINGS --
THERE STILL, MR. PRESIDENT, REMAINS A FORTRESS EUROPE
MENTALITY. A FORTRESS EUROPE MENTALITY AGAINST FREE AND FAIR
TRADE. THE AMENDMENT THAT I HAVE OFFERED AND HAVE FILED IS
DESIGNED TO STRENGTHEN THE ONE AND ONLY ALLOWABLE WEAPON IN OUR
{12:32:21} (MR. DEWINE) { NOT AN OFFICIAL TRANSCRIPT }
ARSENAL AGAINST W.T.O. NONCOM IPS PLINS. THE ONLY WEAPON THAT
-- NONCOMPLIANCE. THE ONLY WEAPON WHEN A COUNTRY IS FOUND IN
VIOLATION OF THE W.T.O. AND REPEATEDLY REFUSE IT TO COMPLY, THE
ONLY WEAPON WE HAVE, THE ONLY METHOD OF ENFORCING COMPLIANCE,
IS TARIFF RETALIATION. MR. PRESIDENT, THE AMENDMENT I FILED
ENJOYS WIDESPREAD BIPARTISAN SUPPORT. IN FACT, THE BILL THAT I
{12:33:00} (MR. DEWINE) { NOT AN OFFICIAL TRANSCRIPT }
FILED THAT IS SIMILAR TO THE AMENDMENT HAS NOW 24 SPONSORS AND
IT IS BIPARTISAN. THIS BILL -- THIS AMENDMENT -- HAS STRONG
BACKING BY OUR VERY DIVERSE AGRICULTURE COMMUNITY. AND THIS IS
CERTAINLY NO SURPRISE. ASK ANY CORN GROW WE ARE ORCA TELL
PRODUCER OR PORK PRODUCER; THEY KNOW AND UNDERSTAND THAT THEIR
WELL-BEING DEPENDS ON EXPANDING OUR EXPORT MARKETS. WE HAVE THE
{12:33:34} (MR. DEWINE) { NOT AN OFFICIAL TRANSCRIPT }
GREATEST AGRICULTURE IN THE WORLD. WE DO IT MORE EFFICIENTLY
AND CHEAPER AND BETTER THAN ANYONE EVER HAS IN ANYONE DOES IN
THE WORLD TODAY. AND ALL OUR FARMERS SAY IS, GIVE US A CHANCE
TO SELL. GIVE US A CHANCE TO COMPETE. AND THAT IS WHAT THIS
AMENDMENT IS ABOUT. IT IS MY HOPE, MR. PRESIDENT, THAT THE
SENATE, BY ADOPTING THIS AMENDMENT, WILL TAKE A STAND FOOUR
FARMERS AND OUR RANCHERS AND SEND A STRONG SIGNAL TO THE
EUROPEAN UNION THAT THEIR GROSS VIOLATIONS OF INTERNATIONAL
{12:34:07} (MR. DEWINE) { NOT AN OFFICIAL TRANSCRIPT }
TRADE LAW SIMPLY MUST STOP.
SPECIFICALLY: THE EUROPEAN UNION, MR. PRESIDENT, DESPITE YEARS
OF EFFORT TO FIND A FAIR SOLUTION, CONTINUES TO DEFY THE WORLD
TRADE ORGANIZATION'S RULINGS AGAINST ITS BAN ON U.S. BEEF
IMPORTS AND ITS BANANA IMPORT RULES. BOTH CASES, MR. PRESIDENT
-- BOTH CASES -- ARE IMPORTANT, NOT JUST TO THE SPECIFIC
PRODUCERS AND THE DISTRIBUTE TORS WHO ARE IMPACTED ON THESE TWO
CASES. BUT IT IS IMPORTANT FOR EVERY AMERICAN BUSINESS,
{12:34:41} (MR. DEWINE) { NOT AN OFFICIAL TRANSCRIPT }
PARTICULARLY SMALL BUSINESSES WHO SEEK A FAIR SHOT AT THE
EUROPEAN MARKET. NOW MR. PRESIDENT, TO APPRECIATE THE MAGNITUDE
OF UNION EUROPE'S CURRENT ACTIONS AGAINST AMERICAN AGRICULTURE,
IT IS IMPORTANT TO PUT IT IN THE CONTEXT OF RECENT HISTORY.
BOTH THESE SPECIFIC TRADE CASES TOOK SEVERAL YEARS TO WORK
THROUGH THE W.T.O. AND WERE UNDERTAKEN AT GREAT EXPENSE TO THE
UNITED STATES GOVERNMENT AND THE PRODUCERS IN THE BUSINESSES
THAT ARE AT THE HEART OF THIS DISPUTE. HERE, MR. PRESIDENT, ARE
{12:35:13} (MR. DEWINE) { NOT AN OFFICIAL TRANSCRIPT }
THE ESSENTIAL FACTS. THIS IS THE STORY. THE E.U. FIRST IMPOSED
THEIR BONN ON BEEF WITH GROWTH PORE E. HORMONES IN 1985 AND
OFFICIALLY BANNED ALL BEEF IN 1989. WHEN THE U.S. SOUGHT
RULINGS ON THIS BAN EITHER THROUGH THE W.T.O. OR THE GENERAL
AGREEMENT ON TARIFFS AND TRADE PROCESS, THE RESULT WAS THE
SAME. THE E.U.'S BAN WAS FOUND TO BE WITHOUT MERIT, AND IN
VIOLATION OF INTERNATIONAL TRADE RULES. THAT WAS THE RULING --
REPEATEDLY, TIME AFTER TIME AFTER TIME. FIRST, MR. PRESIDENT,
{12:35:51} (MR. DEWINE) { NOT AN OFFICIAL TRANSCRIPT }
THROUGH THE GATT PROCESS, AND THEN THROUGH THE W.T.O. THE
RESULTS WERE THE SAME. IN OTHER WORDS, THE W.T.O. AND BEFORE
THAT THE GATT, FOUND FENCE THE EUROPEAN UNION FOR VIOLATING
TRADE LAWS. HOWEVER, MR. PRESIDENT, IN SPITE OF THESE RULINGS,
THESE REPEATED RULINGS, THE E.U. HAS REFUSED TO COMPLY AND TO
THIS VERY DAY, THIS HOUR, THIS MINUTE, THEY CONTINUE TO REFUSE
TO COMPLY. IN SPITE OF THE RULINGS THE E.U. HAS REFUSED TO
{12:36:28} (MR. DEWINE) { NOT AN OFFICIAL TRANSCRIPT }
CHANGE ITS PRACTICES. IN SPITE OF THESE RULINGS, THEY CONTINUE
TO THUMB THEIR NOSE AT THE W.T.O. DECISION. THE REAL QUESTION,
MR. PRESIDENT, IS WHETHER OR NOT THE W.T.O. RULINGS ARE
ENFORCEABLE. DO THEY MEAN ANYTHING?
AND I THINK WE ALL HAVE -- EVERY NATION -- AS A MEMBER OF THE
W.T.O., HAS A VESTED INTEREST IN MAKING SURE THAT THE RULGTS
ARE ENFORCEABLE; THAT THEY DO MEAN SOMETHING, THAT THEY DO
MATTER. AND THAT'S WHAT THIS AMENDMENT IS ABOUT. NOW, MR.
{12:37:04} (MR. DEWINE) { NOT AN OFFICIAL TRANSCRIPT }
PRESIDENT, IN THE FACE OF NONCOMPLIANCE BY THE E.U., THE U.S.
ONLY HAS THE ONE REMEDY, AND THAT REMEDY IS TARIFF RETALIATION.
WE HAVE NO OTHER WAY TO GO. THIS IS PRESCRIBED. IT IS ALLOWED.
IT IS PROVIDED FOR IN THE W.T.O. RULES. THIS IS THE ONLY
RECOURSE A COUNTRY HAS WHEN ANHER COUNTRY REFUSES TO COMPLY.
MR. PRESIDENT, UNDER CURRENT W.T.O. RULES THE U.S. CAN
RETALIATE AGAINST THE BEEF BACK BY IMPOSING TARIFFS ON EUROPEAN
{12:37:36} (MR. DEWINE) { NOT AN OFFICIAL TRANSCRIPT }
IMPORTS AT A TOTAL AMOUNT EQUAL TO THE AMOUNT OF FINANCIAL PAIN
BEING INFLICTED ON OUR U.S. BEEF INDUSTRY. THE W.T.O.
DETERMINED IN THIS PARTICULAR CASE THAT THE E.U. BEEF BAN WAS
INFLICTING SLA 116.8 BILLION PER YEAR IN ECONOMIC DAMAGES TO
U.S. FARMERS. NOW ALTHOUGH THE W.D.O. $116 -- $116 MILLION
FIGURE IS SIGNIFICANT, OUR OWN CATTLE INDUSTRY BELIEVES THIS IS
A VERY, VERY CONSERVATIVE ESTIMATE. THEY BELIEVE THE ACTUAL
{12:38:09} (MR. DEWINE) { NOT AN OFFICIAL TRANSCRIPT }
IMPACT IS CLOSER TO $1 BILLION ANNUALLY. NOW, LET ME TALK FOR A
FEW MOMENTS ABOUT THE OTHER CASE. THE BANANA CASE. WITH
BANANAS, THE E.U. IMPOSED QUOTAS IN THE EARLY 1990'S. WHILE THE
U.S. PRODUCES BANANAS IN HAWAII WE ALSO HAVE A SIGNIFICANT
STAKE IN THE DISTRIBUTION AND SALE OF BANANAS DOMESTICALLY AND
INTERNATIONALLY. SEVEN TIMES -- SEVEN TIMES, MR. PRESIDENT, THE
W.T.O. RULED THAT THE EUROPEAN UNION'S ATTEMPTS TO OBSTRUCT
{12:38:46} (MR. DEWINE) { NOT AN OFFICIAL TRANSCRIPT }
U.S. BANANA DISTRIBUTION VIOLATED W.T.O. RULES. SEVEN DIFFERENT
RULINGS. THE W.T.O. DETERMINED THAT ITS BANANA POLICY, THE
BANANA POLICY OF THE E.U. IS RESULTING IN $191.4 MILLION WORTH
OF ECONOMIC DAMAGE ANNUALLY TO U.S. INTERESTS. NOW AGAIN,
IMPACTED U.S. COMPANIES BELIEVE THE ACTUAL DAMAGE IS MORE THAN
A BILLION DOLLARS ANNUALLY. AGAIN THE U.S. IN REGARD TO
BANANAS, AS WAS THE CASE IN REGARD TO BEEF, HAS THE AUTHORITY
{12:39:21} (MR. DEWINE) { NOT AN OFFICIAL TRANSCRIPT }
TO IMPOSE RETALIATORY TARIFFS AGAINST E.U. PRODUCTS. LET ME
RECAP WHERE WE ARE IN THE STORY. BOTH BANANAS AND BEEF, THE
E.U. HAS BEEN REPEATEDLY IN VIOLATION OF THE W.T.O. RULES. THE
EUROPEAN UNION REFUSED IN SPITE OF THE RULINGS TO CHANGE ITS
POLICIES. THE W.T.O. PROCEDURES PROVIDE A WAITING PERIOD OF 15
MONTHS FOR A NATION THAT IS FOUND TO BE IN VIOLATION OF RULES
TO COMPLY. IN OTHER WORDS, NOTHING HAPPENS HAPPENS. EVEN AFTER
THE RULING COMES OUT, NOTHING HAPPENS FOR 15 MONTHS. WHAT
{12:40:01} (MR. DEWINE) { NOT AN OFFICIAL TRANSCRIPT }
HAPPENED HERE IN 15 MONTHS WAS NOTHING. ABSOLUTELY NOTHING. THE
EUROPEAN UNION AGAIN CONTINUED FOR THAT 15 MONTH PERIOD OF TIME
TO NOT COMPLY. NOW IN THE BEEF AND BANANA CASES WE WAITED THESE
15 MONTHS. THE EUROPEAN UNION STILL DIDN'T COMPLY. SO AT THAT
POINT, THE UNITED STATES SIMPLY HAD NO CHOICE BUT TO IMPOSE
TARIFFS IN RETALIATION. TARIFFS THAT ARE FULLY ALLOWED UNDER
THE W.T.O. NOW MR. PRESIDENT, THE PURPOSE FOR ALLOWING THE U.S.
TO IMPOSE TARIFFS IS OF COURSE TO COMPEL COMPLIANCE WITH THE
{12:40:32} (MR. DEWINE) { NOT AN OFFICIAL TRANSCRIPT }
W.T.O. RULINGS. NOW IT HAS BEEN SIX MONTHS -- SIX MONTHS, MR.
PRESIDENT, SINCE TARIFFS ON EUROPEAN IMPORTS WERE IMPOSED IN
RESPONSE TO THE BANANA CASE. AND IT HAS BEEN THREE MONTHS SINCE
TARIFFS WERE IMPOSED IN RESPONSE TO THE BEEF BAN. SO WE HAD THE
15 MONTH WAITING PERIOD, WE HAD SOME OTHER TIME THAT ELAPSED
THEN WE HAD THE SIX MONTHS AND THE THREE MONTHS IN 9 IN THE
BANANAS BE BEEF CASES. AFTER ALL THIS, ARE THE EUROPEANS MAKING
ANY EFFORT TO COMPLY WITH EITHER RULING?
{12:41:06} (MR. DEWINE) { NOT AN OFFICIAL TRANSCRIPT }
WE KNOW THE ANSWER AND THE ANSWER IS NO ON BOTH COUNTS. THEY
ARE STILL ARE NOT IN COMPLIANCE AND THEY STILL GIVE ABSOLUTELY
NO INDICATION THAT THEY ARE GOING TO COME INTO COMPLIANCE. NOW,
MR. PRESIDENT, THIS IS NOT JUST ABOUT BEEF. IT'S VERY
IMPORTANT. IT IS NOT JUST ABOUT BANANAS. IT IS ABOUT WHETHER OR
NOT THE W.T.O. IS GOING TO MEAN ANYTHING. IT IS ABOUT WHETHER
OR NOT THE RULINGS OF THE W.T.O. ARE GOING TO MEAN ANYTHING. I
THINK WE HAVE TO LOOK AT THE BIG PICTURE AND PUT THIS IN
PERSPECTIVE. WHILE THE EUROPEAN UNION, THE E.U. CONTINUES THIS
{12:41:39} (MR. DEWINE) { NOT AN OFFICIAL TRANSCRIPT }
FORTRESS MENTALITY AND THUMBS ITS NOSE THE W.T.O. RULINGS,
OTHER W.T.O. MEMBER-NATIONS FINDING THEMSELVES ON THE WRONG
SIDE OF A W.T.O. RULING, HAVE ACTED RESPONSIBLY. MEMBERS OF THE
SENATE MAY ASK WHAT'S HAPPENED IN OTHER CASES WHEN OTHER
COUNTRIES HAVE BEEN FOUND TO BE IN NONCOMPLIANCE, TO HAVE
VIOLATED THE W.T.O. AND THE RULINGS HAS COME DOWN AND THEY HAVE
LOST THEIR CASE AND LOST THEIR APPEAL WHAT HAVE THEY DONE?
THE ANSWER MR. PRESIDENT IS THAT THEY HAVE DONE WHAT YOU WOULD
EXPECTS THEM TO DO. THEY HAVE COMPLIED. THE UNITED STATES HAS
{12:42:19} (MR. DEWINE) { NOT AN OFFICIAL TRANSCRIPT }
LOST FOUR SEPARATE W.T.O. CASES. IN EACH CASE AFTER LOSING, WE
COMPLIED. CANADA HAS LOSS THE, AND THEY COMPLIED. KOREA LOST,
AND KOREA COMPLIED. JAPAN LOSS, AND JAPAN -- JAPAN LOST, AND
JAPAN COMPLIED. EVERYBODY -- EVERYBODY -- BUT THE E.U. ALL OF
THESE COUNTRIES THAT LOST THEIR CASES CAME INTO COMPLIANCE. IN
FACT EVERY NATION SOUND IN VIOLATION OF A P.R.W.T.O. RULING HAS
{12:42:49} (MR. DEWINE) { NOT AN OFFICIAL TRANSCRIPT }
COME INTO COMPLIANCE. EVERY NATION EXCEPT FOR THE NATIONS OF
THE EUROPEAN UNION. NOW MR. PRESIDENT, RETALIATION IS THE ONLY
AUTHORIZED TOOL TO BRING A COUNTRY INTO COMPLIANCE WITH W.T.O.
RULINGS. THAT'S THE POINT OF THIS AMENDMENT, TO MAKE THIS
AUTHORIZED RETALIATION MORE EFFECTIVE, AND TO GET THE JOB DONE.
WHAT IS A NATION TO DO IF ITS CURRENT LIST OF IMPORTS SUBJECT
TO RETALIATORY TARIFFS IS NOT WORKING TO MOVE THE OFFENDER LIKE
THE E.U. INTO COMPLIANCE?
{12:43:22} (MR. DEWINE) { NOT AN OFFICIAL TRANSCRIPT }
THE SOLUTION, I BELIEVE, IS TO SEEK OTHER PRODUCTS TO TARGET
AND AT TARIFF LEVELS THAT WOULD IMPOSE THE KIND OF PAIN THAT
WILL CAUSE THE EUROPEAN UNION TO SEEK COMPLIANCE AS THE RELY
DIP. THIS IS A PROCESS KNOWN AS CAROUSELING, THAT'S WHAT THIS
AMENDMENT IS ABOUT. IN BOTH THE CASE WITH BANANAS AND THE CASE
WITH BEEF, WE CAME FORWARD IN A LIST OF PRODUCTS THAT WE WERE
{12:43:55} (MR. DEWINE) { NOT AN OFFICIAL TRANSCRIPT }
RETALIATING AGAINST. AND THE DUTIES WERE IMPOSED. NOTHING HAS
HAPPENED. WHAT OUR AMENDMENT SAYS, AND I WILL DISCUSS THIS IN
GREATER DETAIL LATER WHEN I FORMALLY OFFER THIS AMENDMENT --
BUT WHAT OUR AMENDMENT PROVIDES FOR IS THAT IF THE FIRST LIST
OF ITEMS THAT WE ARE IMPOSING TARIFFS ON TO RETALIATE AGAINST
THE E.U., IF THE FIRST LIST QUITE CANDIDLY DOESN'T INFLICT
ENOUGH PAIN TO GET THEIR ATTENTION, THEN WE NEED TO CAROUSEL OR
CHANGE THE LIST. THE AMENDMENT PROVIDES THAT AT LEAST ONE OF
{12:44:29} (MR. DEWINE) { NOT AN OFFICIAL TRANSCRIPT }
THE ITEMS MUST BE CHANGED. PROVIDES TT MANY CAN BE CHANGED, BUT
AT LEAST ONE HAS TO BE CHANGED. AND THE WHOLE IDEA IS, IN THIS
ONLY WAY THAT WE CAN GET THEIR ATTENTION, THE ONLY REMEDY THAT
WE HAVE, THE ONLY TOOL THAT WE HAVE, THE ONLY STICK THAT WE
HAVE, IS THIS TYPE OF RETALIATION. WE MUST MAKE SURE IT IS
EFFECTIVE. AND WE MUST MAKE SURE THE CORRECT PRODUCTS ARE BEING
CHOSEN THAT DO INFLICT THE PAIN TO GET THE ATTENTION OF THE
E.U., AND THAT'S WHAT THIS AMENDMENT IS ALL ABOUT. IT IS A
RATHER MODEST AMENDMENT, BUT IT IS AN
{END: 1999/10/27 TIME: 12-45 , Wed. 106TH SENATE, FIRST SESSION}
{ NOT AN OFFICIAL TRANSCRIPT OF THE SENATE PROCEEDINGS.}