| | Remarks of Assistant Secretary for Economic Development David A. Sampson - U.S.A/Mexico Strategic Alliance November 7, 2001 | Back |
| | Good afternoon. Thank you President Levin (Cecilia Levin President Strategic Alliance) for the gracious introduction. Secretary Evans asked me to pass along his greetings and express his appreciation for inviting him to speak today. He regrets that he is unable to be here. I am honored to have been asked by Secretary Evans to represent him at this important conference.The friendship between the United States of America and Mexico is indeed a special one, and one the people of the United States value greatly. A clear indication of this special relationship is the fact that the first head of state President Bush hosted in Washington was President of Mexico, Vicente Fox. Like our two nations, President Bush and President Fox have forged a close relationship, a relationship I am pleased to highlight here today.The Alliance and the Department of Commerce share the same mission in the border region - facilitating private sector investment. By creating a climate conducive to the development of private enterprise in the region, we help fortify both of our nations' economies while providing good jobs for citizens on both sides of our border.As you know, this conference was delayed by two months due to the despicable terrorists attacks on New York, Washington, D.C. and our entire nation. I was in New Jersey on September 11th visiting a number of sites where the Economic Development Administration has made investments and I was planning to fly to El Paso that afternoon. In the space of minutes, we learned that there are evil forces at work in the world that have no respect for innocent civilians, who see human life as utterly expendable. In the space of just a few hours we learned how vulnerable the freedom of travel and movement, which serves as the under pinning of the North American economy, can be. And so, I commend you for your dedication in going forward with this conference. In the space of day's we learned the true spirit of America, our capacity of caring and the resilience of and resolve of America.The impressive and inspiring rescue efforts we witnessed in New York City and the Pentagon displays the vigor and heroism of our public safety officers. No one could help but feel how great a people, how great a nation, we have the honor to belong to. How sensitive, compassionate and resilient is the society we have built over the last 225 years, and how capable of withstanding the most unexpected strain.I believe that America and the world have seen in President Bush over the last eight weeks, the kind of leader that has inspired so much confidence in those of us who have worked for him both as Governor of Texas and as a business executive. He is firm of resolve and unwavering in purpose to bring terrorists to justice or justice to terrorists. He has said this is the defining moment of this new century. We are in a war against evil - an evil that has hijacked not only airliners and turned them into guided missiles but also hijacked an entire nation and turned it into a training ground for terrorism.President Bush has spoken clearly and truthfully to the American people. He has warned that the task ahead will not be easy. We must prepare ourselves for hard and heavy news. The terrorists may for a time be dazzled and dizzy with their own schemes of aggression and a sense of delight in the devastation they have wrought. Is it possible they do not realize that we shall never cease to persevere against them until they have been isolated and utterly cut off? In the days after the Japanese attack on Pearl Harbor, many of our enemies discounted the power of the United States. Some said we were soft, others that we would never be united, that we could not endure casualties. Our open democratic system of debate and elections would paralyze our war effort. But one man did not underestimate us. British Prime Minister Winston Churchill said, "The United States is like a gigantic boiler. Once the fire is lighted under it there is no limit to the power it can generate." The boiler has once again been lit.The soul of freedom is deathless. It cannot and will not perish. President Bush has said that no one should doubt that this is a difficult and dangerous effort on which we have embarked. No one can foresee precisely what course it will take or what costs will be incurred. Many months of sacrifice, self-discipline and vigilance lie ahead. Our patience will be tested. But as President Kennedy said in announcing the strict quarantine during the Cuban Missile Crisis in October 1962, "The greatest danger of all would be to do nothing." The war on terrorism today is full of hazards just as was America's resolve to stand against Soviet missiles in Cuba, but as President Kennedy said then, "It is the path most consistent with our character and courage as a nation and our commitments around the world. The cost of freedom is always high - but Americans have always paid it."Recently I toured the World Trade Center site and met with leading members of New York City's business community. Ground zero is quite literally beyond comprehension or description. But equally moving was the sight of thousands of New Yorkers who were lined up outside of Madison Square Garden to participate in a job fair for displaced workers. The Administration and the Department of Commerce are committed to the economic revitalization of New York. The Administration is providing considerable funding for efforts that are under way to support the city's recovery and economic revitalization. In this context this means we are developing a multi-pronged approach at getting people back to work and businesses both large and small back on their feet.While New York City and Washington D.C. bore the brunt of the terrorist attacks, we realize these acts of war were committed not just against New York City or Washington, D.C. but was meant to be a direct assault on our entire nation and economy. This war is being fought on many fronts: diplomatic, financial, intelligence, law enforcement and military. There is another important front on this war against terrorism and that is the economic front.The American and indeed the global economy were showing signs of sluggishness prior to September 11th. Statistics released last week by the Department of Labor and the Department of Commerce clearly indicates that our economy has taken a significant hit in the wake of the September 11th terrorist attacks. Unemployment surged by half a percentage point to 5.4%. Consumer confidence showed an 11.5% decline since September. The manufacturing sector has also been hit.Today, I would like to talk with you about two important components of the President's economic growth strategy. The first is securing Trade Promotion Authority and second is working with Congress to enact a comprehensive, balanced economic stimulus package.Expanding trade opportunities for Americans is critical to our nations economic health. To succeed in opening new markets, President Bush needs Trade Promotion Authority (TPA).TPA would give the President congressional approval to negotiate trade deals that could be voted up or down, not amended and loaded-up by Congress with special interest provisions and restraints that would limit our ability to compete in the global marketplace. Most importantly, however, it would give our trading partners the assurance that they can rely on the deals they negotiate.Right now the United States is sitting on the sidelines and that hurts the global economy. There are more than 130 trade agreements in the world and the United States is party to only two. During the past forty years, trade liberalization has been a key factor leading to the longest post-war period of economic growth. It is simply imperative that our nation pursue free markets with vigor.President Bush is deeply committed to opening trade. He knows knocking down barriers to trade creates the best scenario for fostering economic prosperity in all countries. It is in our nation's best interest to pursue free markets.Further, when U.S. companies involved in the export markets see Congress and the President are working together on trade, investment by and in these businesses will increase, hiring will increase and the entire economy will become more confident.Recent studies suggest that if global trade barriers were cut by one-third, the world's economy, from the United States to India, from Mexico to New Zealand, would grow by more than $600 billion. As the late Senator Dirksen might say, that's real money. President Bush's trade agenda is aggressive and multi-faceted. The President's agenda seeks to eliminate industrial tariffs, places a special focus on eliminating trade barriers, eliminates all barriers to the export of U.S. services, which now represents the largest sector of the U.S. economy, and applies strict enforcement of our trade agreement rights. Recent studies suggest that if global trade barriers were cut by 1/3, the world economy would grow by more than $600 billion a year.If trade promotion authority was important prior to September 11th it is even more critical to our nation and the world today. That is because human freedom is indivisible, whether we are talking about economics or politics. When governments promote individual success, allowing for people to provide for themselves and their families, freedom and democracy are much more likely to exist. When free people are working in free markets, political stability begins to weave itself through a nation's social fabric. President Bush knows that free and open trade brings freedom and democracy for all the world's peoples and nations.We need look no further than the great country of Mexico to see the positive implications that a free trade policy can have on a nation. A liberalized economic system has given rise to a more open political system. We have seen the same thing happen in Taiwan, South Korea and other countries that have opened their economic systems to trade and competition. Competition is good in the market place of ideas, policy and politics as well as in the market place of goods and services.NAFTA has proven key to the political and economic transformation of Mexico. As a result of NAFTA, Mexico's GDP has grown on average 3.5 percent annually during the 1990s. Over the past five years, Mexico's GDP has grown at an annual average rate of 5.5 percent. Half of the 3.5 million jobs created in Mexico since 1995 are connected to trade. President Bush has made strengthening U.S. ties to Mexico a top priority of his Administration. As the former Governor of Texas, President Bush also recognizes that increased trade opportunities has created a conducive climate for capital investment and job creation along the Texas Mexico border as well.This is where the U.S. government can play a constructive role. Over the past 9 years, the Department of Commerce's Economic Development Administration has invested over $419 million in public work and planning grants to U.S. counties that directly border Mexico to enhance the area's success in taking advantage of increased economic activity and attract private sector capital investment and higher skilled/higher-wage jobs.But free trade doesn't end with Mexico. Soon the United States will be asked to join other global leaders in igniting a new wave of global economic growth by dramatically changing the world's trading systems. Launching a new round of global trade talks later this year is a key objective to which this Administration is strongly committed.Now is the time to extend Trade Promotion Authority to the President of the United States. For it is the only way our trading partners will know we are committed to the negotiated free trade deals.At key moments in our nation's history we faced an intense political debate - whether we would retreat into isolationism or engage the world in trade, commerce, culture and ideas. We have always chosen engagement over isolationism and both the United States and the world are better off. I am confident that after a vigorous debate our nation will make the right decisions again.Certainly those of you gathered at the U.S./Mexico Strategic Alliance conference recognize how closely linked our two economies are. Now is also the time for Congress to pass a comprehensive, balanced economic stimulus package. President Bush has outlined the principles that will provide an immediate stimulus to the economy and position us for long-term sustained robust growth. City, state, and business leaders and the federal government need to work cooperatively to develop a comprehensive and effective solution.The economic stimulus package that President Bush advocates is proper and disciplined. The plan provides the best formula to help the Nation recover from these attacks. The plan focuses on growth-centered strategies.The President encourages and additional $60 to $75 billion stimulus to encourage consumer confidence, to enhance business investment, and to take care of displaced workers. President Bush's strategy is designed to strengthen the Nation's economic recovery in the short term while not having any long-term implications.In addition, we need to bolster consumer demand by both accelerating the tax cuts that now exist, as well as providing rebates for non-taxpayers, but who filed tax returns.Tax relief is also needed to encourage investment, which encourages the flow of capital. We need to reform the alternative minimum tax on corporate America, so corporate America doesn't have to get penalized during times of declining earnings, as well as encourage investment in new plant and equipment.The fundamentals of economic development don't change. Businesses will make a capital investment only when consumer demand will justify the risk. Therefore, you need to encourage both consumer demand and private sector capital formation so businesses will invest capital and create jobs.Now is the time for strong leadership internationally, nationally, and within the business community. The stakes are high: freedom of trade and commerce; personal and political liberty; and national and individual security. Your leadership, in your communities, is as important to the outcome of this struggle as is the leadership in Washington and Mexico City.Again, thank you for your invitation to participate in the US/Mexico Strategic Alliance conference. |
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