United States - Morocco Free Trade Agreement Implementation Act
UNITED STATES-MOROCCO FREE TRADE AGREEMENT IMPLEMENTATION ACT -- (House of Representatives - July 22, 2004)
Mr. THOMAS. Mr. Speaker, pursuant to House Resolution 738, I call up the bill (H.R. 4842) to implement the United States-Morocco Free Trade Agreement, and ask for its immediate consideration.
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Mr. CRANE. Mr. Speaker, I thank the chairman for yielding me time.
Mr. Speaker, I am quite pleased that the United States and the Kingdom of Morocco have reached agreement on a bilateral free trade agreement. Morocco has long been a key ally in the Middle East. As many have noted, Morocco was the first country to recognize our sovereignty; and in 1786 we signed the U.S.-Morocco treaty of peace and friendship, which remains the longest unbroken treaty in our Nation's history.
Once implemented, this treaty agreement will be the second of its kind between the U.S. and a moderate Muslim ally, following our trade agreement with the Kingdom of Jordan.
This is an important strategic agreement. While we have had a long-standing diplomatic relationship with Morocco, the U.S.-Morocco FTA cements the economic relationship between our countries. Two-way trade between the U.S. and Morocco is significant, at nearly $1 billion per year. The United States exported over $465 million to Morocco last year, with a trade surplus of over $79 million.
This FTA will eliminate trade barriers, lower tariffs, and provide increased market access for U.S. companies. By knocking down trade barriers in Morocco and in the rest of the world, we can help support even more American jobs. In fact, the International Trade Commission estimates that trade between our countries should double once this agreement is implemented.
This is a strong agreement for all sectors of the U.S. economy. Under its terms, over 95 percent of U.S. exports of consumer and industrial goods to Morocco will become duty free immediately. This follows the high standards set by recently passed trade agreements with Singapore, Chile, and Australia. This is important for U.S. manufacturers.
This is also a strong agreement for the services sector of our economy, whether it be telecommunications, e-commerce for digital commerce, or new opportunities for U.S. financial institutions. The agreement also contains state-of-the-art intellectual property provisions, including commitments in trademarks, copyrights and patents, as well as tough penalties for piracy and counterfeiting. Taken together, these provisions continue a trade policy that best helps U.S. business compete in a global marketplace.
Mr. Speaker, the Farm Bureau strongly supports this agreement, which covers all agricultural products, because for every $1 in increased imports from Morocco, U.S. farmers can expect $10 in increased exports to Morocco. In 2003, the United States had a trade surplus in agricultural products with Morocco of about $82 million, with exports of over $152 million. The Farm Bureau estimates that this agreement could increase U.S. agricultural exports to over $450 million by 2015, tripling our current exports. Furthermore, because Morocco's agreement with the European Union does not include agriculture, this FTA should give American farmers a competitive advantage over our EU counterparts.
Some have questioned whether labor laws in Morocco are adequate. To that end, I would like to point out that the U.S.-Morocco FTA, like all of our trade agreements, requires Morocco to enforce domestic labor laws in accordance with the bipartisan guidance provided by the Congress in Trade Promotion Authority.
Furthermore, in anticipation of a U.S.-Morocco FTA, the Moroccan government, business community, and labor force, working together in a tripartite manner, found consensus in passing a comprehensive new labor law earlier this year that is consistent with ILO standards. Accordingly, the agreement language creating an obligation to effectively enforce one's laws is, in essence, the same as an enforceable ILO standard in this agreement. I, for one, applaud Morocco for its efforts in overhauling its labor laws in anticipation of completing this important trade agreement.
Some on the other side, including the Subcommittee on Trade ranking member, the gentleman from Michigan (Mr. Levin), and the Committee on Ways and Means ranking member, the gentleman from New York (Mr. Rangel), have raised thoughtful questions with regard to various provisions contained in this agreement. I think we have worked well together to address these concerns, and I am pleased that we have their support. While we may continue to disagree on certain issues, there is a lot of common ground from which to work, and I look forward to continuing to work with them to pass important trade agreements.
Unfortunately, I am sure that a small group on the other side who do oppose free trade may come to the House floor today and argue that this agreement is inadequate in certain respects.
I would ask my colleagues to not be fooled by this rhetoric, which we hear every time when we contemplate trade agreements. We heard it last week during debate on our Australian Free Trade Agreement, a country with which we have a $9 billion trade surplus; we heard it during debate 1 year ago regarding Chile and Singapore; and I am sure we will hear it today with regard to Morocco, a country with which we have a trade surplus.
Please do not be fooled. This discomfort has less to do with the provisions of this agreement than it does their dislike of free trade generally.
Mr. Speaker, the vast majority of Members on both sides of the aisle think differently. The American people know that millions of American jobs are dependent upon free trade. U.S. products exported to Morocco currently face an average tariff of more than 20 percent. This FTA will give American businesses exporting to Morocco a leg up to compete as they compete with the European Union. That means better, higher-paying jobs here at home. Perhaps that is why the U.S.-Morocco FTA passed the Committee on Ways and Means by a 26 to 0 vote on Tuesday and passed the Senate by an overwhelming vote of 85 to 13 yesterday. I look forward to another strong, bipartisan vote today.
Mr. Speaker, I would like to emphasize my strong support for this agreement and my appreciation to the administration and Members on both sides of the aisle for their efforts in completing it.
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Mr. CRANE. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, concerns about the consistency of any future drug reimportation provisions with this free trade agreement are hypothetical. The agreement has no force under U.S. law except to the extent that Congress passes an implementing bill to change U.S. law.
Thus, even if Congress changes U.S. law and the new law were somehow inconsistent with the agreement, that new law would trump the agreement. The agreement cannot prevent Congress from allowing drug reimportation.
The drug reimportation debate in Congress has focused on changes to the Federal Food, Drug and Cosmetic Act that would be necessary to allow drug reimportation, such as changing its provision that only the original manufacturer may reimport a drug. There is nothing in the Morocco FTA or the implementing bill that addresses the Federal Food, Drug and Cosmetic Act for this requirement.
Mr. Speaker, I yield 2 minutes to our distinguished colleague, the gentleman from Florida (Mr. Shaw).
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Mr. CRANE. Mr. Speaker, I yield 4 minutes to the gentleman from Pennsylvania (Mr. English), who is cochair of the Morocco Caucus.
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Mr. CRANE. Mr. Speaker, I yield myself such time as I may consume.
The new Morocco labor law is a significant improvement over existing labor laws and regulations. The law raises the minimum employment age from 12 to 15 to combat child labor, reduces the work week from 48 to 44 hours with overtime rates payable for additional hours, and calls for a periodic review of the Moroccan minimum wage.
Effective July 1, 2004, the minimum wage in Morocco will increase by 10 percent. Morocco did this to make itself a more attractive FTA partner.
Mr. Speaker, I yield 2 minutes to the gentleman from Texas (Mr. Brady).
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Mr. CRANE. Mr. Speaker, let me first congratulate the former speaker for his presentation and what he had to say.
Mr. Speaker, I yield 3 minutes to the gentleman from Nebraska (Mr. Bereuter).
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Mr. PITTS. Mr. Speaker, I would like to thank the gentleman from California (Chairman Thomas) as well for his leadership on the U.S.-Morocco Free Trade Agreement. I am a free trader and believe that free trade helps our Nation and the nations of the world. However, I am deeply concerned about the issue of Western Sahara, and I have had concerns that the U.S. needed to make clear that this free trade agreement covers only the internationally- and the U.S.-recognized borders of Morocco and does not include the disputed territory of Western Sahara. It is my understanding that the language in the conference report makes clear that the free trade agreement does not cover resources, goods, services, or any other entity related to trade that originates in Western Sahara.
I would ask the gentleman, does the U.S.-Morocco Free Trade Agreement cover trade with the disputed territory of Western Sahara?
Mr. CRANE. Mr. Speaker, will the gentleman yield?
Mr. PITTS. I yield to the gentleman from Illinois.
Mr. CRANE. The Committee on Ways and Means' report states the clear coverage of the free trade agreement. "The committee notes that the FTA will cover trade with and investment in the territory of Morocco as recognized by the United States, which does not include the Western Sahara."
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Mr. CRANE. Mr. Speaker, I yield 2 minutes to the gentleman from Pennsylvania (Mr. Pitts).
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Mr. CRANE. Mr. Speaker, I yield 2 minutes to the gentlewoman from Connecticut (Mrs. Johnson).
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Mr. CRANE. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I appreciate the gentlewoman's comments, but we are discussing the U.S.-Morocco FTA, which passed the Committee on Ways and Means by a vote of 26 to nothing. In addition, we have a trade surplus with Morocco. Trade with Morocco creates jobs. The projections are right now that over the next decade our exports will triple in the agricultural sector alone, and the Trade Adjustment Assistance Program already provides benefits to anyone adversely effected by trade, and there is no need for a new program.
Mr. Speaker, I yield 3 minutes to the gentleman from Arizona (Mr. Kolbe).
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Mr. CRANE. Mr. Speaker, can the Chair tell me how much time we have remaining.
The SPEAKER pro tempore (Mr. Ose). The gentleman from Illinois (Mr. Crane) has 29 minutes remaining. The gentleman from Michigan (Mr. Levin) has 16 minutes remaining. The gentleman from Ohio (Mr. Brown) has 14 ½ minutes remaining.
Mr. CRANE. Mr. Speaker, I yield 3 minutes to the distinguished gentlewoman from Washington (Ms. Dunn), a member of the Committee on Ways and Means.
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Mr. CRANE. Mr. Speaker, I yield myself such time as I may consume.
I think it is important for everyone to understand that we have a trade surplus at the current time with Morocco. The projections are, though, that with this free trade agreement we will have a very dramatic increase in our exports, especially our exports in the agricultural community with that dramatic drop in tariff barriers that have struck our access there, but we are making progress, dramatic progress.
Mr. Speaker, I yield 5 minutes to the gentleman from Wisconsin (Mr. Ryan), our distinguished colleague on the committee.
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Mr. CRANE. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I commend the gentleman from New York (Mr. Crowley) for his outstanding commitment in this effort to advance our free trade relations and to advance the civilized values that free trade causes. He has done outstanding work in that effort, and I commend him. I thank his colleagues on his side of the aisle for their strong bipartisan support on this important bill.
Mr. Speaker, the administration strongly supports H.R. 4842, which will approve and implement the U.S.-Morocco Free Trade Agreement, as signed by the United States and Morocco on June 15, 2004.
The U.S.-Morocco FTA advances U.S. economic interests and meets the negotiating principles and objectives set out by the Congress in the Trade Act of 2002. The FTA will benefit the people of the United States and Morocco and illustrate to other developing countries the advantages of more open markets for trade and investment.
The FTA provides for increased access for American farmers, workers and businesses to Morocco's markets. Pursuant to the agreement, Morocco will provide strong protection for intellectual property, ensure that rules on electronic commerce are nondiscriminatory, and provide U.S. firms access to covered government procurement opportunities on the same basis that Moroccan firms enjoy.
The U.S.-Morocco FTA provides a significant opportunity to encourage economic reform and development in a moderate Muslim nation and is an important step in implementing the President's plan for a broader U.S.-Middle East Free Trade Area. It also sets a strong example of the benefits of open trade and democracy. Opening markets is part of the President's six-point plan for continuing to strengthen America's economy and to create more opportunities for American farmers, workers and businesses.
Mr. Speaker, I reserve the balance of my time.
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Mr. CRANE. Mr. Speaker, I reserve the balance of my time.
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Mr. CRANE. Mr. Speaker, I yield myself such time as I may consume.
I want to first commend our colleagues on the other side of the aisle on the Committee on Ways and Means for guaranteeing unanimous commitment to passage of our Free Trade Agreement with Morocco and look forward to working with them in the future.
Mr. Speaker, I yield the balance of my time to the distinguished gentleman from California (Chairman Thomas).
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Mr. CRANE. Mr. Speaker, I object to the vote on the ground that a quorum is not present and make the point of order that a quorum is not present.