A Conversation on Capitol Hill: Trade and Competitiveness in the Americas

Speakers:

• John Tanner, Representative from the 8th District of Tennessee, Member of the Committee on Ways and Means and Committee on Foreign Affairs
• Kevin Brady, Representative from the 8th District of Texas, Ranking Republican of the Ways and Means’ Subcommittee on Trade
• James Bacchus, Former Member of Congress and Chairman of the Global Practice Group, Greenberg Traurig
• R. Scott Miller, Director, Global Trade Policy, The Proctor & Gamble Company

Closing Remarks:

• Henry Cuellar, Representative from the 28th District, Texas

Summary

The Council of the Americas organized an October 29 bipartisan discussion on Capitol Hill concerning the role of U.S. trade policy in building stronger partnerships, economic and job recovery, and broad-based development in the Western Hemisphere.

First Panel: Building Hemispheric Partnerships via Trade Policy

In the first panel with Congressmen John Tanner (D-TN) and Kevin Brady (R-TX), Tanner opened by addressing the emotional rather than practical side of the trade debate. He noted that while remaining open to trade makes sense economically, the United States has historically been sensitive to the matter. Trade can be framed as a villain when economic woes arise. However, he stressed that it is a vital topic for U.S. Congress to focus on and framed trade as a matter of national security. Emphasizing the importance of building partnerships throughout the Western Hemisphere, the congressman urged support for pending free trade agreements with Colombia and Panama. He said the pacts would boost U.S. hemispheric relations while benefiting those two Latin American economies.

Brady agreed with Tanner on the importance of passing free trade agreements. He voiced concern that the United States showed signs of falling behind, warning that Washington is losing out on valuable economic partnerships while the Canada, China, and the EU forge ties throughout the Americas. He added that, should the United States want to remain a world economic leader, it must engage in new trade initiatives, work to move forward with the Doha Round of trade talks, and stop stalling on trade agreements. He urged leadership from the White House and support from bipartisan members of Congress to act now and help pass agreements with Colombia, Panama, and South Korea.

Second Panel: Multilateral Trade Initiatives and the Mutual Benefits of Free Trade

The second panel brought together James Bacchus of Greenberg Traurig, LLP and R. Scott Miller of Proctor & Gamble. Bacchus stressed the importance of promoting multilateral trade initiatives such as the Doha and the World Trade Organization (WTO). He encouraged looking toward practical economics in order to gain support for free trade and draw down the energy of the emotional aspect of the trade discussion. Bacchus forecast a rise in the use of the WTO’s dispute settlement mechanism while Doha remains stalled. He pointed out that if Doha talks moved forward, Washington could negotiate wins even while making concessions to other countries, but losing a case in a dispute leads only to making concessions with nothing to gain.

Miller discussed the potential for rising consumer demand in developing nations and how lowering international trade barriers can boost growth for countries involved in trade pacts. He walked listeners through the mutually beneficial outcomes of trade agreements, pointing out that free trade helps to raise living standards in emerging economies by boosting incomes. Lowering tariffs in turn makes U.S. exports more attractive through decreased prices. Thus, Miller sees free trade as a valuable tool to expand U.S. exports into dynamic emerging markets, overcoming saturated domestic markets and creating new growth opportunities.

Closing Remarks: Making Trade a Priority

In closing remarks, Rep. Henry Cuellar (D-TX) said that even though health care is currently the focus of Congress, time does not stop for trade issues just because they don’t gain attention on the floor. He spoke about the benefits of free trade, including job creation and opportunities for small business growth. He also declared that if trade agreements with Panama and Colombia were to reach the floor of Congress, the agreements would pass. The real obstacle, he said, was to get them on the agenda at a time when trade is not seen as a priority. Like all of the panelists, he urged support for the free trade agreements with Colombia and Panama and described the agreements as valuable opportunities for growth and partnership in the Western Hemisphere.

The program was moderated by Vice President and head of the Washington office Eric Farnsworth and introduced by Director of Government Relations Brian Wanko.