PACIFIC BASIN ECONOMIC COUNCIL
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Policy Priorities for the New Administration Gary Benanav Chairman, PBEC US Member Committee Chairman & CEO, New York Life International 2001 Annual Policy Conference PBEC U.S. Member Committee January 31, 2001 LADIES AND GENTLEMEN, I wanted to close off the day with just a few brief remarks about U.S. economic engagement in Asia Pacific this year and the role of PBEC in influencing that engagement. We have a tremendous opportunity this year. Here at home, a new administration has taken office. The initial signs have been positive. Although the hotly contested presidential election significantly shortened the time available to the Bush transition team, the President and his staff moved forward very quickly in putting together their economic team. As its initial actions have shown, the Bush Administration must focus immediately on the fundamental goal of sustaining economic growth here in the United States. It undertakes this challenge in an environment of economic and political uncertainty both at home and abroad. The new political team cannot meet this goal unless they address the economic and political issues in Asia Pacific that are vital to U.S. economic growth and stability. PRIORITIES FOR U.S. ECONOMIC POLICY IN ASIA PACIFIC This morning we had an extensive discussion about U.S. economic relations with China. I believe China's accession to the World Trade Organization (WTO) should be the highest priority trade issue facing the Administration. Last year Congress gave the President the authority to grant PNTR status to China. But as you heard again today, he can only do so when China completes the multilateral negotiations required for WTO entry. It is in everyone's interest that this happen as soon as possible, and certainly no later than mid year. I recognize the United States alone cannot determine the progress of the WTO Working Party talks in Geneva, and much depends on the willingness of China's leaders to make difficult decisions in areas such as agriculture and services. These decisions involve domestic risks for China, since economic change is not always painless. But the potential gains for China and for the rest of the world are enormous, if China successfully manages the transition to full participation in the global economy. We at PBEC US encourage China and the U.S. to complete the Accession process quickly. A second priority is the Asia Pacific Economic Cooperation (APEC) process, which China is chairing. By choosing to chair an organization whose express goal is free and open trade in the Asia Pacific by a date certain, China has taken a bold and progressive step. China's chairmanship will provide a venue for the new Administration to work constructively with the Chinese government and with the growing private sector in China to eliminate obstacles to the region's economic expansion. PBEC-US will ensure that the Bush Administration's economic and foreign policy team understands the opportunities that APEC presents in 2001 and takes the requisite steps to ensure that these opportunities are not lost. The third priority is continued trade liberalization. On the bilateral front, U.S. business interests would be substantially advanced by congressional approval of the U.S.-Vietnam Bilateral Trade Agreement (BTA). The agreement will allow American companies and products to compete effectively with Europe and Asia in the Vietnamese market, benefiting American firms, workers, farmers and consumers. The Bush Administration needs to quickly formulate its strategy for winning legislative approval for the BTA, and PBEC-US is ready to help in this campaign. Two other agreements under negotiation will require concessions from both sides, the U.S. free trade agreement talks with Chile and Singapore. The new Administration should move forward aggressively to complete them, and should consider other bilateral FTA's. These bilateral efforts should support, not replace, work towards the larger goal of multilateral trade liberalization in the WTO. That will require U.S. leadership on the built-in agenda on agriculture and services, as well as renewed efforts to launch a global round of trade negotiations. None of this, China, Vietnam, the WTO, can occur without a strong domestic consensus on trade. The fast track debates of the past four years and the contention over the China PNTR vote showed how deeply divided we are at home. We need to agree on the goals and find a way to proceed. It will be up to President Bush and his team to bridge that divide, not only on Capitol Hill, but also among the American people. I hope that President Bush will use his pulpit to advance these goals. Finally, the Administration must engage our allies and friends in the region. The tasks are varied. They range from easing tensions on the Korean Peninsula to engaging Japan on both trade and financial issues. The tasks include dealing with political unrest in some of the ASEAN nations, as well as dealing with ASEAN as a coherent group. I would like to thank each of the speakers and panelists who participated in today's conference, and I would also like to thank each of you in the audience for your participation and attention. You represent the voice of the American private sector and your support of PBEC US is indispensable.