The North American Free Trade Agreement (NAFTA) and its impact on the textile/apparel/fiber and auto and auto parts industries : hearing before the Commerce, Consumer, and Monetary Affairs Subcommittee of the Committee on Government Operations, House of Representatives, One Hundred Third Congress, first session, May 4, 1993
242 pages
English

The North American Free Trade Agreement (NAFTA) and its impact on the textile/apparel/fiber and auto and auto parts industries : hearing before the Commerce, Consumer, and Monetary Affairs Subcommittee of the Committee on Government Operations, House of Representatives, One Hundred Third Congress, first session, May 4, 1993

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English
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' FREE TRADE AGREEMENTTOE NORTH AMERICAN \V^ ^ AND ITS IMPAQ ON THE TOCnLE/[NAFTA] AND AUTO AND AUTO PARTSAPPAREL/FIBER INDUSTOES Y4.G74/7:AH3/3 lARING The Korth Ancricin Free Trade . .ftqree.' EFORE THE AND MONETARYCOMMERCE, CONSUMER, AFFAIRS SUBCOMMITTEEI OF THE COMMITTEE ON GOVERNMENT OPERATIONS HOUSE OF REPRESENTATIVES ONE HUNDRED THIRD CONGRESS FIRST SESSION MAY 19934, Printed for the use of the Committee on Government Operations nconClTiODV OCT 12 1993 I "TAK^ '''i\^t'U0^^ :„v:-v...'..:y U.S. GOVERNMENT PRINTING OFFICE 70-612 CC WASmNGTON : 1993 For sale the U.S. Government Officeby Printing of Documents, Sales Office, DC 20402Superintendent Congressional Washington, ISBN 0-16-041348-6 IHADEWE NORIH AMERICAN FREE AGREEMENT \' AND ITS IMPACT ON THE TEHILE/[NAFTA] AND AUTO AND AITTO PARTSAPPAREL/FIBER INDUSTTUES ^^~ Y 4. G 74/7: AM 3/3 !ARING The Horth ftnericin Free Trade Agree... EFORE THE AND MONETARYCOMMERCE, CONSUMER, AFFAIRS SUBCOMMITTEE1 OF THE COMMITTEE ON GOVERNMENT OPERATIONS HOUSE OF REPRESENTATIVES ONE HUNDRED THIRD CONGRESS FIRST SESSION MAY 19934, Printed for the use of the Committee on Government Operations nuD/iQirnDv I OCT 12 1993 U.S. GOVERNMENT PRINTING OFFICE 70-612 CC WASHINGTON : 1993 For sale the U.S. Government Officeby Printing ofDocuments, Sales Office, DC 20402Superintendent Congressional Washington, ISBN 0-16-041348-6 COMMITTEE ON GOVERNMENT OPERATIONS JOHN ChairmanJr.,CONYERS, Michigan, CARDISS Hlinois WILLIAM F.COLLINS, CLINGER, Jr.

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'
FREE TRADE AGREEMENTTOE NORTH AMERICAN
\V^
^
AND ITS IMPAQ ON THE TOCnLE/[NAFTA]
AND AUTO AND AUTO PARTSAPPAREL/FIBER
INDUSTOES
Y4.G74/7:AH3/3
lARING
The Korth Ancricin Free Trade . .ftqree.' EFORE THE
AND MONETARYCOMMERCE, CONSUMER,
AFFAIRS SUBCOMMITTEEI
OF THE
COMMITTEE ON
GOVERNMENT OPERATIONS
HOUSE OF REPRESENTATIVES
ONE HUNDRED THIRD CONGRESS
FIRST SESSION
MAY 19934,
Printed for the use of the Committee on Government Operations
nconClTiODV
OCT 12 1993
I
"TAK^
'''i\^t'U0^^
:„v:-v...'..:y
U.S. GOVERNMENT PRINTING OFFICE
70-612 CC WASmNGTON : 1993
For sale the U.S. Government Officeby Printing
of Documents, Sales Office, DC 20402Superintendent Congressional Washington,
ISBN 0-16-041348-6IHADEWE NORIH AMERICAN FREE AGREEMENT
\'
AND ITS IMPACT ON THE TEHILE/[NAFTA]
AND AUTO AND AITTO PARTSAPPAREL/FIBER
INDUSTTUES
^^~
Y 4. G 74/7: AM 3/3
!ARING
The Horth ftnericin Free Trade Agree... EFORE THE
AND MONETARYCOMMERCE, CONSUMER,
AFFAIRS SUBCOMMITTEE1
OF THE
COMMITTEE ON
GOVERNMENT OPERATIONS
HOUSE OF REPRESENTATIVES
ONE HUNDRED THIRD CONGRESS
FIRST SESSION
MAY 19934,
Printed for the use of the Committee on Government Operations
nuD/iQirnDv
I OCT 12 1993
U.S. GOVERNMENT PRINTING OFFICE
70-612 CC WASHINGTON : 1993
For sale the U.S. Government Officeby Printing
ofDocuments, Sales Office, DC 20402Superintendent Congressional Washington,
ISBN 0-16-041348-6COMMITTEE ON GOVERNMENT OPERATIONS
JOHN ChairmanJr.,CONYERS, Michigan,
CARDISS Hlinois WILLIAM F.COLLINS, CLINGER, Jr., Pennsylvania
GLENN Oklahoma AL CaliforniaMcCANDLESS,ENGLISH,
HENRY A. California J. DENNIS IllinoisWAXMAN, HASTERT,
MIKE Oklahoma JON L. ArizonaSYNAR, KYL,
STEPHEN L. North Carolina CHRISTOPHER ConnecticutNEAL, SHAYS,
TOM California STEVEN New MexicoLANTOS, SCHIFF,
C. CaliforniaMAJOR R. New YorkOWENS, COX.
EDOLPHUS New York CRAIGTOWNS, THOMAS, Wyoming
ILEANA FloridaJOHN M. South CarolinaSPRATT, JR., ROS-LEHTINEN,
RONALD K. Rhode IslandGARY A. CaliforniaCONDIT, MACHTLEY,
DICK NewCOLLIN C. MinnesotaPETERSON, ZIMMER, Jersey
Florida WILLIAM H. NewKAREN L. ZELIFF, JR., HampshireTHURMAN,
BOBBY L. Illinois JOHN M. New YorkMCHUGH,RUSH,
B. New York STEPHEN CaliforniaCAROLYN MALONEY, HORN,
THOMAS M. Wisconsin DEBORAH OhioBARRETT, PRYCE,
FloridaDONALD M. New JOHN L.PAYNE, Jersey MICA,
FLOYD H. New YorkFLAKE,
BERNARD VermontJAMES A. LouisianaHAYES, SANDERS,
CRAIG A. TexasWASHINGTON, (Independent)
BARBARA-ROSE COLUNS, Michigan
CORRINE FloridaBROWN,
MARJORIE MARGOLIES-MEZVINSKY,
Pennsylvania
C. CaliforniaLYNN WOOLSEY,
Julian DirectorEpstein, Su^
Matthew R. DirectorFletcher, Minority Sta/f
and Monetary Affairs SubcommitteeCommerce, Consumer,
Carolina ChairmanJOHN M. jR. SouthSPRATT,
CaliforniaBOBBY L. Illinois C. CHRISTOPHERRUSH. COX, ConnecticutMARJORIE MARGOLIES-MEZVINSKY, SHAYS,
NewWILLIAM H.Pennsylvania ZELIFF, JR., Hampshire
BARBARA-ROSE COLLINS, Michigan
Ex Officio
WILLIAM F.JOHN CLINGER, JR., PennsylvaniaCONYERS, Jr.. Michigan
Theodore J. DirectorStaffJacobs,
THOMAS S. CounselKahN, Chief
Donald P. EconomistChiefTucker,
Stephen R Senior CounselMcSpadden,
Richard W.Peterson,
FayE ClerkBaixard,
Sandra L. Assistant ClerkKnox,
Doug RIGGS, Minority Professional Sta/f
(II)CONTENTS
Page
1held on 19934,Hearing May
of:Statement
Service ... 78Samuel US. CustomsH., Commissioner,Banks, DeputyActing
andSeth executive National KnitwearBodner, M., airector, Sportswear
114Association
and international aflairseconomicCollins, director, department,Stephen,
American Automobile Associa-aimirspublic division, Manufacturing
customsThomas Collins, chairman, oonunittee,tion, accompanied by
General Motors 145and customs administrator. Corp
director of thesales, Co., accompanied byGridley, David, Torrington
Stewart & DC 161Terence Stewart,Stewart, Washington,
assistant to theArthur, president, ClothingGundersheim, Amalgamated
and Textile Workers Union on behalf of Jack[ACTWIJ], Sheinkman,
Edward localresident, Nichols, president, 1093T,accompanied by
1316ock SCHUl,
for the Western Hemi-Ann AssistantH., Deputy SecretaryHughes,
69U.S. ofCommercesphere, Department
Trade and Gen-Allan IntemationadMendelowitz, I., Director, Finance,
accom-eral Government U.S. General Office,Division, Accounting
Sheila K.Curtis F. AssistantTumbow, Director,by
and William J. seniorSanied assistant Gorman,atzenberger, general counsel;
9evaluator
American Textile Manufac-Carlos executive viceMoore, F.J., president,
W. executiveturers Bulcao,Institute, accompanied by Douglas deputy
100vice president
of the U.S. TradeOfficeIra, general counsel, Representative,Shapiro,
Textile 46bvaccompanied Caroyl Miller, Deputy Negotiator
Assistant for Tariff andJohnSimpson, P., Deputy Secretary Regulatory,
U.S. of the 62Trade Enforcement, Department Treasury
a in from the StateHon.Spratt, John, Jr., Representative Congress
South and andof chairman, Conunerce, Consumer, MonetaiyCarolina,
statement 1Affairs Subcommittee: Opening
submitted lor the record:Letters, statements, etc.,
Samuel U.S. Customs Service:Commissioner,Banks, H., Acting Deputy
statement 81Prepared
Seth executive National Knitwear andM., director, SportswearBodner,
118Association: statementPrepared
economic and international affairsairector, department,Collins, Stephen,
aimirs American Automobile Associa-division, Manufacturingpublic
148tion: statementPrepared
director of the Co.: statement . 164Gridley, David, sales, Torrington Prepared
Assistant for the Western Hemi-AnnHughes, H., Deputy Secretaiy
U.S. ofCommerce: statement 72sphere, Department Prepared
International Trade and Gen-Allan Finance,Mendelowitz, I., Director,
U.S. General Office:eral Government Division, Accounting Prepared
11statement
executive vice American Textile Manufac-CarlosMoore, F.J., president,
104turers Institute: statementPrepared
Office of the U.S. TradeIra, counsel. Representative:Shapiro, general
51statement
Prepared
and Textile WorkersSheinkman, Jack, Amalgamated Clothingpresident,
134Union statement[ACTWU]: Prepared
for Tariff andJohn AssistantP., Deputy Secretary Regulatory,Simpson,
U.S. of the state-Trade Enforcement, Department Treasury: Prepared
64ment
(III)IV
Pace
—submitted for the record ContinuedLetters, statements, etc.,
William a in from the StateZeliir, H., Jr., CongressRepresentative
statementofNew 6Hampshire: Prepared
APPENDIXES
—1. Additional submitted to vdtnesses and 183Appendix questions responses—2. Press 232 clippingsFREE TRADETHE NORTH AMERICAN AGREE-
AND IMPACT ON THEMENT ITS[NAFTA]
TEXTILE/APPAREL/FIBER AND AUTO AND
AUTO PARTS INDUSTRIES
MAY 1993TUESDAY, 4,
House of Representatives,
andCommerce, Consumer,
Monetary Affairs Subcommittee
OF THE on GovernmentCommittee Operations,
DC.Washington,
to at 9:35 in roomThe subcommittee met, pursuant notice, a.m.,
House Office Hon. John M. Jr.2247, Raybum Spratt,Building,
ofthe(chairman subcommittee) presidmg.
Present: John M. Jr.,Representatives Spratt, Marjorie
C. and William H.Cox, Zeliflf,MargoHes-Mezvinsky, Christopher
Jr.
Also Theodore J. staff Thomas S.Jacobs, director; Kahn,present:
mi-chief Sandra L. assistant andcounsel; Knox, clerk; Doug Riggs,
Committee on Grovemmentprofessional staff, Operations.nority
OPENING STATEMENTOFCHAIRMAN SPRATT
Mr. Spratt. In the interest of I think it would be wise totime,
Affairsstarted. the andget Commerce, Consumer, MonetaryToday
FreeSubcommittee meets to hold a on the North Americanhearing
areTrade [NAFTA]. Our focus thisparticular morningAgreement
the rules of and how these rules will to the textile/ap-origin apply
indus-industries and to the automobile and autoparel/fiber parts
tries.
These rules of are central to NAFTA because deter-origin they
mine which in two sectors of our willproducts significant economy
receive treatment in somepreferential duty and, cases, preferential
treatment when come into this or are tradedquota they country
in the free trade area. These rules of thatgenerally origin provide
NAFTA will benefit those that are made inprincipally products—North America to state but in the aresimple implementation they
and differ from sector to sector.extraordinarily complex, they
has not been asked to the or toCongress yet approve agreement
for NAFTA. As we there areadopt implementing legislation meet,
still side between the United and Mex-agreements States, Canada,
ico and we will be asked to on the wholebeing negotiated, pass
when it is So it is that we examinepackage completed. important
the core the central ofNAFTA that areissues, importantprovisions
(1)to its if we are to have on the finalregulation going any impact
implementing £igreements. —— a willI that our witnesses and we have numberhope today
us with concrete recommendations to make the rules of ori-provide
in rules ofand more enforceablegin stronger and, reality, genuine
are almost exquisitelv figged. Theyorigin. They nicely configured,
in but still thehave been hammered out some detail they beg ques-
will will we enforce r

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