WAYS AND MEANS APPROVES AMENDED ANDEAN TRADE PACT

WASHINGTON (Oct. 5, 2001) -- The House Ways and Means Committee approved an
amended extension of a trade pact with the Andean region Friday, despite
Democratic concerns over the bill's impact on American apparel
manufacturers and tuna canneries.

The committee approved the reauthorization of the Andean Trade Preference
Act, now called the Andean Trade Promotion and Drug Eradication Act (H.R.
3009), by a voice vote. A substitute amendment by Chairman Bill Thomas,
R-Calif., that made several changes to the bill was also approved by a
voice vote.

The Andean bill affects U.S. trade with Bolivia, Ecuador, Colombia and
Peru. The administration has touted the trade pact as an effective way to
help stop the flow of drugs from the region -- specifically Colombia, the
major producer of coca -- to the United States. After Congress approved
$1.3 billion aid in mostly military aid as part of the U.S. contribution to
the counter-drug program Plan Colombia last year, the Colombian government
lobbied Congress on the trade bill to provide economic assistance.

The original law, which was enacted in 1991, is set to expire December 4,
2001. Two-way trade between the United States and the Andean region nearly
doubled between 1991 and 1999 under the law, according to the Office of the
U.S. Trade Representative. But a recession in the region has since hurt
U.S. exports.

Cut flowers are the leading U.S. import under the arrangement.

Unlike the original Andean trade pact, the new measure had provisions for
the duty free and quota free import of some items of clothing from the
member countries.

Imports of apparel from those countries made from regional fabric and yarn
now make up less than one percent of U.S. apparel imports, committee staff
said. The new bill would cap those imports at 3 percent for the first year,
increasing the cap to 6 percent by 2006. Rep. Sander Levin, D-Mich.,
ranking member on the trade subcommittee, said that Democrats had wanted a
1.5 percent cap on apparel imports, and questioned why there were no
requirements in the bill for the use of U.S. yarn.

Thomas said that the Republican and Democratic staffs were unable to reach
agreement on those matters.

He expressed irritation over Democratic objections to the bill, saying it
was an opportunity to help countries that had been cooperating with the
United States. He said he was "somewhat concerned" that while there was
talk of aiding countries who are now joining the new, U.S.-led coalition
against terrorism, while traditional allies were being "somewhat ignored."

Democrats also expressed concerns about the bill's potential impact on tuna
fishermen and canneries in American Samoa and California. Because of the
success of Ecuador's tuna industry, the ranking member, Charles Rangel,
D-N.Y., offered an amendment to strike preferences for canned tuna from the
bill. The committee voted down the amendment 17-23 [Vote 1].

Rep. Phil English, R-Pa., argued that the StarKist tuna company, which
employees a large percentage of the workforce in American Samoa, had
supported the measure, and that U.S. tuna production cannot meet all
domestic needs.

Rep. Xavier Becerra, D-Calif., countered that the company had made comments
in American Samoa that contradict that position. "For American Samoa, this
is life," he said.

Rangel later offered two more amendments, one making technical changes to
the bill, and the other adding Namibia and Botswana to a list of
beneficiary countries under another trade measure, the Africa Growth and
Opportunity Act. After assurances from U.S. Trade Representative Robert
Zoellick that both amendments had the support of the administration, they
were approved by unanimous consent and moved as part of the substitute
amendment.

The bill also makes several amendments to the Caribbean Basin Trade
Partnership Act and the Africa trade pact, such as doubling the cap on duty
free benefits to apparel made in Africa from regional fabric to 3.5 percent
over eight years.

Rep. William Jefferson, D-La., offered, and then later withdrew, an
amendment that would have established a trade fund to provide technical and
other assistance under the Africa agreement after Chairman Thomas expressed
concerns that the issue might fall under the jurisdiction of another committee.

Jefferson said he had planned another amendment, which he did not offer,
that would have removed duty-free treatment for sugar, syrup and molasses
from Andean pact countries.

Under the new bill, the U.S. International Trade Commission and the
Secretary of Labor would be required to report annually to Congress on the
economic impact of the bill on U.S. industries, workers and consumers.

Recorded Votes
Bill: H.R. 3009 Vote: 1
Rangel - Andean Bill on Tuna

Tally: Yes, 17 No, 23 Not Voting 1

Republicans (24)
N Thomas (R-Calif.)
N Crane (R-Ill.)
N Shaw (R-Fla.)
N Johnson (R-Conn.)
NV Houghton (R-N.Y.)
N Herger (R-Calif.)
N McCrery (R-La.)
N Camp (R-Mich.)
N Ramstad (R-Minn.)
N Nussle (R-Iowa)
N Johnson (R-Texas)
N Dunn (R-Wash.)
Y Collins (R-Ga.)
N Portman (R-Ohio)
N English (R-Pa.)
N Watkins (R-Okla.)
N Hayworth (R-Ariz.)
N Weller (R-Ill.)
N Hulshof (R-Mo.)
N McInnis (R-Colo.)
N Lewis (R-Ky.)
N Foley (R-Fla.)
N Brady (R-Texas)
N Ryan (R-Wis.)

Democrats (17)
Y Rangel (D-N.Y.)
Y Stark (D-Calif.)
Y Matsui (D-Calif.)
N Coyne (D-Pa.)
Y Levin (D-Mich.)
Y Cardin (D-Md.)
Y McDermott (D-Wash.)
Y Kleczka (D-Wis.)
Y Lewis (D-Ga.)
Y Neal (D-Mass.)
Y McNulty (D-N.Y.)
Y Jefferson (D-La.)
Y Tanner (D-Tenn.)
Y Becerra (D-Calif.)
Y Thurman (D-Fla.)
Y Doggett (D-Texas)
Y Pomeroy (D-N.D.)