Orrin Hatch: “the trade bill before us represents a milestone in U.S. trade policy. This bill, and especially the African Growth and…”

“the trade bill before us represents a milestone in U.S. trade policy. This bill, and especially the African Growth and Opportunity Act found at Title I, acknowledges the social, health, and political problems as well as the economic challenges facing a group of states, most of which are developing nations. It is not that our trade policies have not concerned themselves with developing countries before--that commitment is evident in the Generalized System of Preferences (GSP), the Caribbean Basin Initiative, and many other trade initiatives. However, this bill is unique in many ways. First, we are acknowledging that the mere existence of a trade agreement does not produce immediate results. The strength of a society and its polity profoundly affect the development of the capabilities that allow for globalization. Developing countries, for example, need investment, but prudent companies do not commit their resources unless some very fundamental conditions exist, conditions that exceed those addressed in the Trade-Related Investment Measures (TRIMS) Agreement of the World Trade Organization. The bill before us does that. We underscore the importance of political stability; we provide opportunities for technical assistance that can create a banking and legal structure to repatriate profits and to protect the sanctity of the contract.”