[Senate Hearing 107-329]
[From the U.S. Government Publishing Office]
S. Hrg. 107-329
NOMINATIONS OF:
GRANT D. ALDONAS, KENNETH I. JUSTER,
MARIA CINO, AND ROBERT GLENN HUBBARD
=======================================================================
HEARING
before the
COMMITTEE ON
BANKING,HOUSING,AND URBAN AFFAIRS
UNITED STATES SENATE
ONE HUNDRED SEVENTH CONGRESS
FIRST SESSION
ON
NOMINATIONS OF:
GRANT D. ALDONAS, OF VIRGINIA, TO BE UNDER SECRETARY OF THE
INTERNATIONAL TRADE ADMINISTRATION
U.S. DEPARTMENT OF COMMERCE
__________
KENNETH I. JUSTER, OF THE DISTRICT OF COLUMBIA
TO BE UNDER SECRETARY OF THE BUREAU OF
EXPORT ADMINISTRATION, U.S. DEPARTMENT OF COMMERCE
__________
MARIA CINO, OF VIRGINIA, TO BE ASSISTANT SECRETARY AND
DIRECTOR GENERAL, UNITED STATES AND FOREIGN COMMERCIAL SERVICE
U.S. DEPARTMENT OF COMMERCE
__________
ROBERT GLENN HUBBARD, OF NEW YORK, TO BE
CHAIRMAN OF THE COUNCIL OF ECONOMIC ADVISERS
__________
APRIL 24, 2001
__________
Printed for the use of the Committee on Banking, Housing, and Urban
Affairs
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COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS
PHIL GRAMM, Texas, Chairman
RICHARD C. SHELBY, Alabama PAUL S. SARBANES, Maryland
ROBERT F. BENNETT, Utah CHRISTOPHER J. DODD, Connecticut
WAYNE ALLARD, Colorado TIM JOHNSON, South Dakota
MICHAEL B. ENZI, Wyoming JACK REED, Rhode Island
CHUCK HAGEL, Nebraska CHARLES E. SCHUMER, New York
RICK SANTORUM, Pennsylvania EVAN BAYH, Indiana
JIM BUNNING, Kentucky ZELL MILLER, Georgia
MIKE CRAPO, Idaho THOMAS R. CARPER, Delaware
JOHN ENSIGN, Nevada DEBBIE STABENOW, Michigan
JON S. CORZINE, New Jersey
Wayne A. Abernathy, Staff Director
Steven B. Harris, Democratic Staff Director and Chief Counsel
Brian J. Gross, Deputy Staff Director and Counsel
Linda L. Lord, Chief Counsel
Amy F. Dunathan, Senior Professional Staff Member
Tom Loo, Senior Economist
Martin J. Gruenberg, Democratic Senior Counsel
George E. Whittle, Editor
(ii)
C O N T E N T S
----------
TUESDAY, APRIL 24, 2001
Page
Opening statement of Chairman Gramm.............................. 1
Opening statements, comments, or prepared statements of:
Senator Schumer.............................................. 6
Prepared statement....................................... 13
Senator Santorum............................................. 7
Senator Hagel................................................ 9
Senator Corzine.............................................. 11
NOMINEES
Grant D. Aldonas, of Virginia, to be Under Secretary,
International Trade Administration, U.S. Department of Commerce 2
Prepared statement........................................... 13
Biographical sketch of nominee............................... 16
Response to written questions of Senator Schumer............. 70
Kenneth I. Juster, of the District of Columbia, to be Under
Secretary, Bureau of Export Administration, U.S. Department of
Commerce....................................................... 4
Prepared statement........................................... 25
Biographical sketch of nominee............................... 26
Maria Cino, of Virginia, to be Assistant Secretary and Director
General,
United States and Foreign Commercial Service, U.S. Department
of
Commerce....................................................... 5
Prepared statement........................................... 38
Biographical sketch of nominee............................... 40
Robert Glenn Hubbard, of New York, to be Chairman of the Council
of
Economic Advisers.............................................. 6
Prepared statement........................................... 45
Biographical sketch of nominee............................... 46
(iii)
NOMINATIONS OF:
GRANT D. ALDONAS, OF VIRGINIA
TO BE UNDER SECRETARY OF
THE INTERNATIONAL TRADE ADMINISTRATION
U.S. DEPARTMENT OF COMMERCE
----------
KENNETH I. JUSTER, OF THE DISTRICT OF COLUMBIA
TO BE UNDER SECRETARY OF
THE BUREAU OF EXPORT ADMINISTRATION
U.S. DEPARTMENT OF COMMERCE
----------
MARIA CINO, OF VIRGINIA
TO BE ASSISTANT SECRETARY AND
DIRECTOR GENERAL, UNITED STATES AND
FOREIGN COMMERCIAL SERVICE
U.S. DEPARTMENT OF COMMERCE
----------
ROBERT GLENN HUBBARD, OF NEW YORK
TO BE CHAIRMAN OF THE COUNCIL OF
ECONOMIC ADVISERS
----------
TUESDAY, APRIL 24, 2001
U.S. Senate,
Committee on Banking, Housing, and Urban Affairs,
Washington, DC.
The Committee met at 3 p.m., in room SD-538 of the Dirksen
Senate Office Building, Senator Phil Gramm (Chairman of the
Committee) presiding.
OPENING STATEMENT OF CHAIRMAN PHIL GRAMM
Chairman. Gramm. Let me call the Committee to order. The
first thing I should do is introduce our panel, then administer
the oath, and then I will ask each of you to make an opening
statement. I would like to ask you to keep it within 5 minutes,
but if you run over a little, I am not going to stop you.
I would first like to introduce Grant Aldonas of Virginia.
He is nominated by the President to be Under Secretary of
Commerce for International Trade. I have known Grant and worked
with him on the Finance Committee, I am very pleased that you
have been nominated for this position. Opposing protectionism
and promoting free trade is God's work, and as should be true
in all of God's noble efforts, there should be little
compromise and much effort.
Our next nominee is Ken Juster of the District of Columbia.
He is nominated to be Under Secretary of Commerce for Export
Administration. Ken, let me welcome you before the Senate
Banking Committee.
As you know, we have reported the Export Administration
Act. It represents a major modernization of an important law
that expired in 1995, and we hope to see this bill passed into
law this year. We expect you to be effective in promoting
American exports and protecting American technology under this
new law, and I look forward to working with you.
Maria Cino of Virginia to be Assistant Secretary of
Commerce and Director General of the United States and Foreign
Commercial Service. Let me say that one of our Members, Rick
Santorum, is going to be here at some point, and when he
arrives, we will give him an opportunity to introduce you.
Let me say to Ken Juster that Senator Chuck Schumer is
inserting in the record his introduction of you. He had
intended to be here, but we have all kinds of things going on
today.
Finally, Glenn Hubbard, who is an economist and professor
of Economics and Finance at Columbia University. He is
nominated to be a member and Chairman of the President's
Council of Economic Advisers. Glenn, we are very happy to have
you here with us today.
Let me get each of you to rise and raise your right hand.
[Witnesses sworn.]
Chairman Gramm. Please be seated. Grant, why don't you
begin?
STATEMENT OF GRANT D. ALDONAS, OF VIRGINIA
TO BE UNDER SECRETARY
INTERNATIONAL TRADE ADMINISTRATION
U.S. DEPARTMENT OF COMMERCE
Mr. Aldonas. Thank you, Mr. Chairman. It is an honor to
appear before you today as President Bush's nominee to be Under
Secretary of Commerce for International Trade. I have a longer
statement that I would with your consent submit for the record.
Chairman Gramm. I will put the extended statement of each
of our witnesses in the record.
Mr. Aldonas. I will summarize my points here. First, I want
to express my thanks to President Bush and Secretary Evans. I
am humbled by the confidence they have placed in me and I look
forward to representing our Nation's interests--and God's
interest as well, Mr. Chairman--in the international trade
arena if confirmed.
Second, I want to thank----
Chairman Gramm. Don't forget the order.
[Laughter.]
Mr. Aldonas. I am conscious of that. Second, I want to
thank you for making time on the Senate Banking Committee
schedule. The Senate Banking Committee obviously has been
punching things out left and right early on in this year, and I
appreciate your making time for us.
I want to assure you of my interest in building a strong
partnership with the Committee, and I hope that I can call
regularly on your advice and good counsel and on your staff
regarding all matters before the International Trade
Administration.
Third, I want to underscore how proud I am to have the
opportunity to serve with the professionals at the
International Trade Administration, whether it is the industry
experts in Trade Development, the Market Access and Compliance
staff responsible for enforcing our trade agreements, the staff
of Import Administration that are responsible for addressing
foreign unfair trade practices, or the officers of United
States and Foreign Commercial Service that link American
business to export opportunities abroad.
I also want to say how pleased I am to have colleagues like
Maria Cino with her experience and stature and expertise as a
part of our team in ITA to head the United States and Foreign
Commercial Service, and Ken Juster, who is going to be heading
the Bureau of Export Administration.
Fourth, in terms of priorities, I believe we should pursue
the overall goal of shaping an economic environment in which
goods, services, capital and ideas flow freely, because that is
the environment in which the American entrepreneurs' risk, and
American workers' labor, will be ultimately rewarded.
At a practical level in the International Trade
Administration, that means focusing the Department's resources
on the objective of expanding export and business development
opportunities abroad, including the use of tools that the
Senate Banking Committee has given us, like the Trade Promotion
Coordinating Committee; making clear our commitment to see that
our trade agreements are enforced and that our exporters
receive the benefit of the bargain that our negotiators reach
at the negotiating table; and adopting the same results-
oriented approach to the enforcement of our unfair trade laws.
And here, with respect to the unfair trade laws, I want to
be clear that we would like to use these as tools not as an end
in and of themselves but as tools to encourage the elimination
of the underlying unfair trade practices, the market
distortions they create, and the limitation they impose on our
exporters.
Finally, I would like to express my thanks to Senator Bill
Roth for the opportunity he gave me to serve as Chief of the
International Trade Counsel on the Finance Committee while he
was Chair for 4 years, and to both Senator Roth and Senator
Moynihan, the Ranking Member on the Finance Committee. I owe
them a debt that I hope my continued public service can, in
part, repay.
Most importantly, I would like to thank my wife, Pam, who
has been my partner.----
Chairman Gramm. Why don't you introduce any members of your
family who are here?
Mr. Aldonas. This is my wife, Pam Olson, who has been my
partner in every endeavor for the last 21 years. We just got
through another anniversary, for which I am always grateful.
[Laughter.]
This is my son, Noah, who is all of 10 and is cross with me
because he missed a good lunch and a field trip to come down to
the Senate Banking Committee this afternoon.
[Laughter.]
I have two daughters who are not here, Nicole and Kirsten,
who are off at college, and hopefully will be coming home
pretty soon. I have my brother John, who is the workout expert
at the Overseas Private Investment Corporation. So, when
anything bad happens at OPIC, he has to take care of it.
The other point I would make, Mr. Chairman, particularly
for you, knowing that you sit on the Finance Committee, is Pam
recently left her partnership at Skadden Arps and her role as
the first woman chair of the ABA Tax Section to become the
Deputy Assistant Secretary for Tax Policy. And all I can say is
that for 20 years, I have assiduously followed her advice, and
I would recommend that you do the same on tax policy.
[Laughter.]
Mr. Aldonas. I would be pleased to answer any questions you
may have.
Chairman Gramm. Ken, why don't you, if you have any
kinfolks here, introduce them and then make your statement.
STATEMENT OF KENNETH I. JUSTER, OF THE
DISTRICT OF COLUMBIA, TO BE UNDER SECRETARY
BUREAU OF EXPORT ADMINISTRATION
U.S. DEPARTMENT OF COMMERCE
Mr. Juster. Thank you, Mr. Chairman. It is a great honor
for me to be here today as the President's nominee for the
position of Under Secretary of Commerce for Export
Administration.
I thank the President and Secretary Evans for their
confidence and trust in me. I appreciate the time that several
Members of the Committee have taken in the past few weeks to
meet with me in-
dividually to discuss export and related issues. I regard
consulta-
tion with this Committee as an important and ongoing process,
and
if confirmed, I will look forward to working closely with you
and your staff.
The Bureau of Export Administration operates at the
intersection of issues involving industry and national
security. As you know, a principal focus for the Bureau is
administering an export control system that is intended to
further the growth of U.S. exports while protecting our
national security.
On the one hand, it is important to enhance the operation
of the system for the 21st Century in a manner that affords
business the opportunity to compete effectively in today's
increasingly competitive global marketplace.
It is in my view essential to the health of our Nation's
industrial and technological base that U.S. companies be able
to export their goods, services and technology without being
hindered by arbitrary or unnecessary export controls. At the
same time, however, as someone who has worked at the U.S.
Department of State, I fully appreciate the critical importance
of protecting this country's national security by ensuring that
our sensitive technologies do not fall into the wrong hands.
The challenge for all of us in government and in the
private sector is to have a tough minded yet common sense
export control regime that strikes the proper balance between
sharing our technology with friends and protecting against the
transfer of sensitive technology to potential adversaries.
If confirmed, I am committed to the pursuit of policies and
procedures that will advance these objectives.
If confirmed, I also will try to enhance multilateral
cooperation to control the proliferation of the most critical
technologies to potential adversaries. If the U.S. Government
determines that our companies should not make a particular
technology available to certain countries, then we owe it to
our business community to make every effort possible to ensure
that our allies and partners do not undercut us by making that
same technology available.
Finally, the Bureau's work involving industry and national
security extends to assisting in the coordination of the U.S.
Government's initiatives on critical infrastructure protection.
This effort includes promoting public-private partnerships
across industry sectors, integrating the various infrastructure
plans developed by these partnerships into a comprehensive
national plan, and assisting Federal departments and agencies
in assessing their own reliance on critical infrastructures.
In an era when cyberterrorism is a real and dangerous
threat, I regard the work of the Bureau's Critical
Infrastructure Assurance Office as an important component of
our overall mission.
Let me conclude by thanking the Committee for its prompt
consideration of my nomination and by reiterating my commitment
to work closely and cooperatively with you.
Thank you.
Chairman Gramm. Ms. Cino.
STATEMENT OF MARIA CINO, OF VIRGINIA
TO BE ASSISTANT SECRETARY AND DIRECTOR GENERAL
UNITED STATES AND FOREIGN COMMERCIAL SERVICE
U.S. DEPARTMENT OF COMMERCE
Ms. Cino. Mr. Chairman, Senator Hagel, it is an honor and a
privilege to come before you as President Bush's nominee for
the position of Assistant Secretary and Secretary General of
the United States and Foreign Commercial Service.
Thank you for granting me this hearing today. I know how
busy you are, and I appreciate your attention to this
nomination. I look forward if confirmed to working with the
Members and staff of this Committee on matters related to
export promotion.
I would also like to thank President Bush and Secretary of
Commerce Don Evans for their support in my nomination.
Small- and medium-sized American businesses understand and
appreciate the unique and valuable role played by commercial
service in trade promotion and trade compliance. If confirmed,
I have set three goals for the agency: First, to increase the
number of exports from traditionally underserved communities,
which would include minority, rural and women-owned businesses.
Second, increase the number of new exporters, and help
current exporters increase the number of markets to which they
export.
And third, to include the quality of export assistance
provided to American companies by the Commercial Service by
enhancing the skills of our employees through professional
development opportunities. I welcome the challenge of leading a
worldwide, field-based operation of 1,700 dynamic individuals.
My 20 plus years of leading field-based organizations
developing and adhering to complex budgets, setting goals,
long-term and short, building coalitions and developing,
motivating and mentoring staff have prepared me for this
position.
Finally, let me say that I am humbled. I could never
imagine, our growing up in blue collar ethnic and conservative
household, that I would be sitting here today before the U.S.
Senate in a confirmation hearing to be Assistant Secretary and
Director General for the United States and Foreign Commercial
Service.
I want to thank my loving parents for teaching me that if I
work hard, anything was possible. I would also like to thank my
colleagues and my friends who challenged me and gave me the
opportunity to grow. I deeply appreciate the honor of being
here today.
If confirmed, I look forward to working with Grant Aldonas
and my sister International Trade Administration bureaus to
promote U.S. exports, to support U.S. trade policies, and to
enforce trade agreements.
Thank you.
Chairman Gramm. Thank you.
Glenn, I know that your family is here. Why don't you start
by introducing them, then give us your statement.
STATEMENT OF ROBERT GLENN HUBBARD, OF NEW YORK
TO BE CHAIRMAN OF THE COUNCIL OF
ECONOMIC ADVISERS
Mr. Hubbard. Thank you, Mr. Chairman.
My wife Constance is here and my two sons, Raph and Will. I
think Will has escaped into a nap. My older son, Raph, may
follow our footsteps as an economist, Mr. Chairman, but he may
decide to be a baseball pitcher instead, so I don't know
whether we will snag him.
Chairman Gramm. The money's better in baseball.
[Laughter.]
Mr. Hubbard. That is what my wife reminds me of. If he can
become a New York the Yankee, that is fine. I am also
privileged to have my wife's parents, Cecil and Betty Pond,
with me, and my children's godparents, Bev and Bill Roberts.
I would like to begin, Mr. Chairman, just by thanking you
for the timely consideration of my nomination--especially given
the pressures under which the Committee is operating. I am very
honored to be the President's nominee as Chairman of the
Council of Economic Advisers.
Because I am an advocate of a tax cut, I will start out by
reducing the length of my oral remarks.
Chairman Gramm. Let me stop you a minute on that thought,
and let me recognize Senator Schumer who wanted to say a word
on behalf of Maria Cino.
COMMENTS OF SENATOR CHARLES E. SCHUMER
Senator Schumer. Ken Juster and Maria Cino are both New
Yorkers, and are extremely well-qualified. I apologize for
being late, but it has been a busy day. I hope the Committee
gives each of them a unanimous recommendation and I thank you,
Mr. Chairman, for the time, and apologize to Mr. Hubbard for
interrupting.
I am back to the Judiciary Committee. I apologize to the
witnesses. Thank you.
Mr. Hubbard. I am also a transplanted New Yorker--another
one of your constituents.
Senator Schumer. Transplanted coming or going?
Mr. Hubbard. Both. I am not a native New Yorker and I am
living in Washington.
Senator Schumer. I am sure those few years in New York have
helped Mr. Hubbard along.
[Laughter.]
Chairman Gramm. Go ahead.
Mr. Hubbard. Thank you, Mr Chairman.
Again, I would like to say at the outset that I am honored
to be President Bush's choice to be Chairman of the Council of
Economic Advisers. Should you confirm me, I will take very
seriously the long-standing tradition of the Council in
providing economic analysis to the President and to the
Executive Branch.
The stewardship of the Council is a wide-ranging
responsibility for everything from the preparation of the
Economic Report of the President to the advice to the President
and the Vice President.
As I had mentioned to you, Mr. Chairman, when we met in
your office, I intend to continue the tradition of applying the
highest professional standards possible. I share your concern
for the Lord's work, as you know. The Lord, I think, is usually
on the side of
economic efficiency. The constituency for the Lord's work is
some-
times small, but, at the Council, we count ourselves as part of
that constituency. I look forward to working with you on this
Committee and other Committees in the Congress in the economic
policy process.
Thank you.
Chairman Gramm. Thank you.
Let me recognize Senator Santorum, who wanted to make a
comment on behalf of Maria Cino.
COMMENTS OF SENATOR RICK SANTORUM
Senator Santorum. First let me apologize for being late,
but I wanted to get over here and introduce to the Committee
Mario Cino, and just tell you that I have the utmost respect
for this young woman. She is someone who I got to know when she
did everything she could to elevate a rather fumbling
politician from outside of Buffalo, NY, named Bill Paxon, into
the leadership of the House of Representatives.
She did an outstanding job with him in running his office,
and just amazed me with her incredible confidence and work
ethic, and under understanding of the process as well as the
politics of the process. She went over and she did some great
work in the political realm for a while.
Again, she was just someone I felt knew her job and did it
as well as she could, no matter what job it was.
When I found out that she was interested in taking a job
with the Administration, frankly it did not matter what job she
was taking, in my mind, because I knew that she would take the
kind of energy and effort and professionalism to that position
that would be beyond what anyone could possibly hope for.
I am excited she has agreed to come on to this
Administration and work for the United States and Foreign
Commercial Service. I know she will do an outstanding job in
our Government and for the businesses who rely on the Foreign
and Commercial Service.
Chairman Gramm. Thank you, Senator Santorum. I have just a
couple of points I would like to make.
First, Mr. Juster, have you had an opportunity yet to study
the Export Administration Act reported by this Committee?
Mr. Juster. Yes, I have, Senator.
Chairman Gramm. Do you feel comfortable in vigorously
supporting it?
Mr. Juster. I commend this Committee on its work on S. 149
and I do regard it as a very positive step toward reform of the
export control system.
I should note that, while I have not been involved in
Administration discussions regarding the legislation, the
Administration has indicated its support for the legislation.
If confirmed, I would be joining the Administration in
supporting the legislation.
Chairman Gramm. Thank you.
Let me go back to Mr. Aldonas and just simply say that I
have had, in my political career, the following experience, and
I would submit that you will have it in your new job.
People knock on my door and tell me terrible stories about
how these foreigners are cheating, and how they won't allow
goods they produce to come into this foreign country.
Then I say to them, well, what do you want me to do?
They say, not in these words, but the basic translation is,
foreign governments cheat their consumers, and I want you to
cheat American consumers by protecting me from foreign
competition.
I would say of 100 people who come to see me with a trade
complaint, 99 of them do not have the least interest in dealing
with that complaint. They simply want to use that trade
complaint as a reason for imposing protectionism in the
American market.
I had the president of a major automobile company once try
to explain to me his effort to force the Japanese to open their
market. And so I listened and listened and listened, trying to
determine the relevance of what he was saying to me.
And finally it became clear that the relevance was
justification for erecting protectionist barriers against
Japanese automobiles in the American market. So I just commend
that experience.
Maybe your experience will turn out to be different than
mine. Maybe yours will be one in a thousand instead of one in a
hundred that have a legitimate case that they actually want to
be fixed.
But I think it is very important that the Commerce
Department set a very high standard when people are actually
asking for trade remedies that will put Americans out of work,
that will make America noncompetitive in many different areas.
As you know, the political base for international trade,
like the political base of freedom, is often very, very small.
I have found, of all issues that I have dealt with in public
life, that trade is the least well-understood. Of all issues
that I have dealt with, it is the most difficult because it is
counterintuitive. It is like skiing.
[Laughter.]
Chairman Gramm. So I commend you to your task.
Senator Hagel.
COMMENTS OF SENATOR CHUCK HAGEL
Senator Hagel. Thank you, Mr. Chairman.
I too welcome each of you this afternoon. I note with some
curiosity that there is such a big deal made, Mr. Chairman of
being from New York, when I would rather think that a Texas
background might serve you better.
But if you cannot be from Texas or Nebraska, then I guess
New York will have to suffice.
[Laughter.]
Senator Hagel. I do not say that in any gratuitous way to
curry favor with the Chairman. We have never done such a thing
here, and I am not about to violate that principle.
Chairman Gramm. Well, all of their bosses are from Texas.
You need to understand that.
Senator Hagel. Well, I am glad. But we do not have anybody
from Nebraska, unless you have claimed Nebraska.
I might add, as long as we are on Nebraska, did you know,
Mr. Chairman, that the Navy pilot that brought the P-3 in
successfully on Hainan Island was from Nebraska. I do not know
what that has to do with your hearing.
[Laughter.]
Chairman Gramm. Isn't he the Navy pilot that ran down that
jet fighter?
[Laughter.]
Senator Hagel. We have a big airspace in Nebraska. That is
where he learned how to fly.
[Laughter.]
Senator Hagel. Nonetheless, picking up a little bit on
where the Chairman left off on his observations during his
distinguished career about trade, I happen to concur with the
Chairman on that point.
Not that I have been in Congress near as long as Chairman
Gramm, but at one time, I was a business man. And at one time,
I did a lot of work around the world, or attempted to do work
around the world.
So I have seen from various perspectives the importance of
this government in promoting trade and trade policy. I do not
believe there is a more important dynamic for the future of
this country and the future of the world than trade. I think it
is that important.
The three of you--and we will get to Mr. Hubbard in a
moment--are charged with a heavy responsibility which each of
you I think understands.
And I would be very interested in getting each of your
thoughts on where we should direct more of our focus on trade
issues.
I left a meeting about half an hour ago of the United
States/China Security Commission. It was a Commission set up
which you know about, Mr. Aldonas, to look at some of the more
high tech, dual use pieces of equipment and exports that we now
export specifically to China, especially in light of events of
the last few weeks.
We are now confronted, your Administration and the
Congress, together are confronted with this perplexing dilemma.
Do we pull back on trade with China? Do we try to punish China.
Do we adjust our relationship with China through trade.
I have never believed that that is effective. As a matter
of fact I think it is counterproductive. That is aside from the
point that I would again like to ask each of you to share with
this Committee some of your thoughts about where we should be
doing better, how can we do better, how will you lead that
effort to promote trade.
Mr. Aldonas, we will begin with you.
Mr. Aldonas. Maybe I could divide the answer between some
of the policy priorities and some of the practicalities,
Senator. It is the right question to be asking of us and of the
Administration at this point. On the policy priorities, I think
the President was clear in Quebec. His stance is that this
Administration is going to be an Administration that stands for
free trade, for trying to create the environment in which
entrepreneurs can succeed where capital is at risk and where
workers can see rising standards of living. Trade is essential
to that.
The first near-term prospect, as outlined by the President,
is the Free Trade Agreement of the Americas. We have an
opportunity to build out the arrangements we have with the
Canadians and Mexicans into an agreement that covers the 34
democracies in the western hemisphere.
The President is focused on that. We have a window of
opportunity because of the President's focus. The President's
agenda can be changed and be shaped by events like those in
China. I think this is an opportunity for our trading partners
in Latin America to seize as much as it is an opportunity for
us. But that is the first target out of the box.
It is also a good precursor to what we should be doing with
in the framework of the World Trade Organization which is
launching a new round of multilateral trade negotiations.
As you well know, it is essential to our agricultural
community to be in the WTO. We have the agriculture
negotiations as part of the built in agenda, which have gotten
a lot farther than frankly I would have expected at this point
without having a solid push from the prior Administration. This
Administration is fully behind that effort.
There is one essential element that is missing as a part of
that package, however, which is to get trade promotion
authority from the Congress. The President is committed to
doing that by the end of the year.
Although the argument is many times made that it is our
trading partners that have to know we have trade promotion
authority, in my view, it is our negotiators that need to know
it. What they need to know is that there is a contract between
the Congress and the Executive about what the agenda is when
they sit down to negotiate at a table. That is the critical
element that I think in many respects has been missing, as we
have gone to the negotiating table in recent years.
On the practical side, I would like to see us at the
Commerce Department get focused on trade agreements compliance
in a way we haven't in the past. So, if it is a problem with a
customs inspector, in Shanghai, we solve that problem there, so
it doesn't become a debate about principles.
If it is a systemic problem among all customs inspectors in
China, I want to hear about it, so we can bring the weight of
the U.S. Government to bear on that and resolve that at the
political level before we end up in a larger dispute.
If it is a problem with the EU, where we realize we are
going to be headed for litigation in the WTO, then I think all
of us at the Commerce Department need to be building an
effective record that allows us to vindicate our rights when we
are in that forum at the end of the day.
And, I will be dedicating most of my time to focusing on
ensuring that the trade agreements we have reached and the
bargains our negotiators negotiated are going to be fulfilled.
Chairman Gramm. Mr. Juster, did you want to answer that
question as well?
Mr. Juster. I would be happy to.
Senator Hagel. Thank you, Mr. Chairman.
Mr. Juster. As you noted, Senator Hagel, my area focuses on
the exports of sensitive technology to countries around the
world. In terms of my overall philosophy, it would be to
promote such exports when we are dealing with allies and
partners and we can work together in areas of defense
cooperation.
But we must be more careful when we are exporting sensitive
technology to countries of concern. We might permit such
exports if they are going to help the people of a country and
open up their society without enhancing their weapons
capabilities.
But if there is a true national security concern, we want
to restrict such exports. In those circumstances, it is
incumbent upon us to try to get multilateral cooperation on
restricting these exports, so that we are not just restricting
our own companies' ability to export such technology. Instead,
we should be working in a cooperative way with allies and not
having our own exports undercut by the same technology being
shipped abroad by our allies.
I therefore want one of my priorities to be to enhance
multilateral cooperation of export controls, and to try to make
sure that we
are working effectively with our allies and partners in terms
of stopping the proliferation of weapons capabilities in
countries
of concern.
Chairman Gramm. Senator Corzine.
COMMENTS OF SENATOR JON S. CORZINE
Senator Corzine. Yes, Mr. Chairman. I appreciate very much
the time and service that this outstanding panel is about to
begin. Tremendous credentials.
I have actually worked with several of these folks on a
personal level and give testimony to their excellence and
commitment to integrity, but I would be remiss if I did not--
and I hope this question has not been asked of a future
Chairman of the Counsel of Economic Advisers on his current
views of how the economy is evolving. I do not know whether
someone asked that question, but I would love to hear your
comments, sir.
Mr. Hubbard. Certainly, Senator. In my view, the economy's
current rate of growth is unacceptably low. That is, the
economy's potential rate of growth is substantially above the
rate of growth that we have experienced in the past two
quarters.
In the first quarter, the economy's rate of growth likely
will be in the range of 1 to 2 percent at an annual rate.
I share the predictions of many private forecasters that
the economy's rate of growth is likely to improve toward the
end of 2001, and going into 2002. I would caution, however,
that part of the prediction of improvement in growth by private
forecasters reflects a belief that a more stimulative fiscal
policy will be in place.
To give a quick answer to your question, Senator, I believe
we are in a growth slowdown at the moment. The rate of growth
is unacceptably low, but we are likely not at the present time
to be in a recession.
Senator Corzine. Thank you, Mr. Chairman.
Chairman Gramm. Let me thank each of you for coming today.
We will try to have a mark-up and report each of your
nominations to the floor of the Senate as soon as we can.
And again I want to thank each of you for your willingness
to serve. Thank you very much.
[Whereupon, at 3:35 p.m., the hearing was adjourned.]
[Prepared statements, biographical sketches of the
nominees, and response to written questions follow:]
PREPARED STATEMENT OF SENATOR CHARLES E. SCHUMER
Thank you, Mr. Chairman. I want to thank you for having this
hearing today and getting the nomination process moving.
I would like to welcome our New Yorkers, Ken Juster and Maria Cino
It is good to see that New York, which breeds talent as well as the
spirit of public service, has excellent representation on this panel.
In particular, I have the privilege of introducing Ken Juster, who has
been nominated by the President to serve as the Under Secretary of
Commerce for Export Administration.
Ken is eminently well qualified to be the Under Secretary, not
simply because he was born and raised in New York. Although that helps.
Ken has had a distinguished academic and professional career. He
received a B.A. from Harvard College--my alma mater--and then received
a law degree from the Harvard Law School--also my alma mater. After a
clerkship with the Second Circuit Court of Appeals, Ken came to
Washington, DC, where he joined Arnold & Porter, practicing in
international economic and legal matters, including export issues,
economic sanctions, and foreign investment.
In the previous George Bush Administration, Ken served as an
adviser to Lawrence Eagleburger and became Counselor of the State
Department in 1992. While at State, Ken managed a wide-range of policy
issues relating to many of the same countries with which he will have
to deal if confirmed for his new position. Upon completion of his
tenure, Ken received the Distinguished Service Award and Medal, which
is the State Department's highest honor, then returned to Arnold &
Porter.
Ken has the intellect and broad experience needed for an Under
Secretary in Export Administration. He also has a great sense of humor,
and he is someone with whom I am sure we will all enjoy working. In
short, I think we are fortunate to have someone of Ken's caliber
willing once again to enter public service. And I would like to welcome
him here today.
----------
PREPARED STATEMENT OF GRANT D. ALDONAS
Under Secretary-Designate
International Trade Administration
U.S. Department of Commerce
April 24, 2001
Mr. Chairman, Senator Sarbanes, and Members of the Committee, I am
honored to appear before you today as President Bush's nominee to be
Under Secretary of Commerce for International Trade. I am humbled by
the confidence the President and Secretary Evans have placed in me. I
look forward to representing our Nation's interests in the
international trade arena and am eager to tackle that challenge.
America's ability to lead on trade ultimately depends on a
partnership between Congress and the President. That boils down to a
question of trust between Members of Congress and the President and his
team. If I am fortunate enough to be confirmed by the Senate, my
primary objective will be to establish a strong working relationship
with the Members of the Committee and your staff to ensure that ours is
a partnership that works.
I intend to establish a regular schedule of meetings with your
staff to ensure that you are fully informed of our progress. I will
always be on call and will always be interested in your views on how we
can improve our performance at the Commerce Department. I look forward
to your advice and counsel.
President Bush and Secretary Evans are fond of quoting Ronald
Reagan for the proposition that trade represents a ``forward strategy
for freedom.'' The Commerce Department's International Trade
Administration (``ITA'') is on the front lines in that effort.
The staff in Trade Development are the U.S. Government's industry
experts, providing technical support to our trade negotiators, advice
to American exporters, and advocacy for U.S. firms in sector-specific
talks with our trading partners. Officials in Market Access and
Compliance (``MAC'') advocate the American exporter's interest in trade
negotiations and are responsible for ensuring that American firms get
the benefit of the bargain under our trade agreements. Import
Administration ensures that our firms compete internationally on a
level playing field. The officers of the United States and Foreign
Commercial Service link American firms--particularly small- and medium-
sized businesses--with trade and business development opportunities
abroad.
I have had the good fortune to work with many of the professionals
in International Trade Administration throughout my career, both in my
prior public service with the State Department, the Office of the U.S.
Trade Representative, and on the staff of the Senate Finance Committee,
as well as during the many years I spent in the private sector. I want
to underscore for the Committee, and for my friends in the Department,
that I consider it an honor to have the opportunity to work side-by-
side with them in advancing America's trade agenda. I also want to
underscore how pleased I am that a colleague of Maria Cino's experience
and stature will join our team in ITA as the head of the United States
and Foreign Commercial Service.
We live in a time of unprecedented economic opportunity and
unprecedented economic challenge. The end of Cold War barriers to
peaceful commerce and the changing nature of communications and
transportation technology have made us neighbors of every country
around the globe. The challenge lies in ensuring that those changes
expand the economic opportunity for all Americans.
The Commerce Department's International Trade Administration has a
significant role to play in that effort. It is the American
entrepreneur who puts his or her capital at risk and American workers
who with their labor ensure that American goods and services represent
a hallmark of quality around the world. It is their efforts, not the
government's, that create economic prosperity. What we in government
can do, however, is help shape an environment in which goods, services,
capital and ideas flow freely because that is the environment in which
the entrepreneur's risk and the American worker's labor will ultimately
be rewarded.
I would like to outline three priorities I intend to focus on if
confirmed as Under Secretary for International Trade that I believe
will serve that end. First and foremost is expanding export
opportunities for American business. At a practical level, that effort
involves concentrating the Department's resources in ways that are
likely to provide the greatest pay-off for American businesses trying
to gain access to world markets.
The challenge within ITA is to ensure that the component parts stay
fixed on a single goal--identifying promising targets for our exporters
and providing the support they need to reach those markets. The Senate
Banking Committee has been in the forefront of providing the Department
with the tools to improve our performance in that regard. In
particular, I would like to reinvigorate the Trade Policy
Coordinating Committee as the vehicle for bringing not just the
Department's
resources to bear on behalf of U.S. exporters, but the resources of the
government
as a whole.
The Commerce Department can also contribute to the effort to expand
the benefits of trade to all Americans. I intend, for example, to work
closely with other parts of the Department, other U.S. agencies, and
with trade promotion offices at the State-level to reach out to
minority-owned businesses interested in international markets. I am
committed to working closely with the Small Business Administration, in
particular, to ensure that those small- and medium-sized businesses
that provide the overwhelming source of new employment in our economy
have the opportunity to ``go global'' from the outset of their
existence.
Second, I want the Bush Administration's tenure to reflect the
strongest possible commitment to the enforcement of our trade
agreements. Both the President and Secretary Evans fully support that
effort. We cannot expect the American public's support for an active
trade agenda if our exporters do not get the benefit of the bargain
they have a right to expect from our trade agreements.
What that means in practical terms is ensuring that each and every
employee in the Commerce Department is focused on serving our exporters
on the ground. If the problem lies with an errant interpretation of the
World Trade Organization Customs Valuation Agreement by a customs
official in Marseille, I want our Foreign Commercial Service officers
to solve that problem at a working level in Marseille so that the goods
can reach their markets without further delay. If the problem is a
systemic one--a pattern of behavior that violates our rights under
trade agreements, I want to hear about it immediately so that the staff
in Trade Development can bring the weight of the U.S. Government to
bear on the problem at a political level as early as possible in
pursuit of a practical solution to our exporters' problems. If the
problem is one that requires us to go to dispute settlement under our
various trade agreements, I want our Market Access and Compliance
officers to understand the importance of building the factual record
for our claim and working closely with our counterparts in the Office
of the U.S. Trade Representative to ensure that the dispute settlement
process vindicates our rights.
Third, I would like to adopt the same results-oriented approach to
the administration of our unfair trade laws by the Import
Administration. Congress never intended antidumping and countervailing
duty actions to be an end in themselves. Rather, the unfair trade laws
represent tools that should be used in an effort to eliminate the
underlying unfair trade practices that distort markets and deny
American firms--and firms worldwide--to compete on an equal basis.
The debate over the earliest versions of the U.S. countervailing
duty law in the 1890's reflected Congress' intent to offset the market
distortions introduced into the sugar trade by Russian subsidies to
sugar production. Congress' action, however, also reflected an intent
to provide leverage to pursue the elimination of such practices and
their harmful effects on U.S. markets.
It is time to restore that focus to our efforts. Whether the issue
is steel, lumber, semiconductors, or supercomputers, our goal should be
the elimination of unfair practices that interfere with the market's
ability to guide investment to its most productive use in our own
economy and in markets for goods and services world wide. The capital
markets impose a strict discipline that steers capital to those
activities that generate the highest possible rate of return. Trade
distorting subsidies and other unfair practices that interfere with the
ability of the capital markets to impose that discipline impose a high
cost on our exporters and on our economy as a whole.
In his conversations with me, Secretary Evans has put that in more
human and tangible terms. He has often said that there is nothing more
dispiriting to American workers and American entrepreneurs who put
capital at risk than to see that they are not competing on a level-
playing field. If confirmed by the Senate, I pledge to work within the
Department, with other agencies, and, most importantly, with American
industry to ensure that our policies and our actions target the
elimination of trade-distorting practices and the costs they impose.
Let me close by once again thanking the President and Secretary
Evans for nominating me to serve the American public as Under Secretary
of Commerce for International Trade. I would also like to reiterate my
appreciation to you, Mr. Chairman, to Senator Sarbanes, and to the
other Members of the Committee for allowing me to appear before you
today.
I would like to thank Senator Bill Roth for having given me the
opportunity to serve as the Chief International Trade Counsel while he
was Chairman of the Finance Committee for the past 4 years. Chairman
Roth and his esteemed friend and colleague, Senator Pat Moynihan, the
Ranking Member on the Finance Committee, exemplified the spirit that
should always imbue the democratic process. I will be forever in their
debt for the education and inspiration their leadership provided.
Last, and most importantly, I would like to thank my wife, Pam, and
my children, Nicole, Kirsten, and Noah, for their support for me while
I have been in public service. Pam recently left her law partnership
and her role as the first woman ever to chair the American Bar
Association's Section of Taxation to serve President Bush and Treasury
Secretary O'Neill as the Deputy Assistant Secretary of Treasury for Tax
Policy. I can say, objectively, based on 21 years of evidence that Pam
is the best partner anyone could ask for--the President and Secretary
O'Neill could not have found a better choice.
I would be pleased to answer any questions you may have.
PREPARED STATEMENT OF KENNETH I. JUSTER
Under Secretary-Designate
Commerce for Export Administration
U.S. Department of Commerce
April 24, 2001
Chairman Gramm, Senator Sarbanes, and Members of the Committee: It
is a great honor for me to be here today as the President's nominee for
the position of Under Secretary of Commerce for Export Administration.
I thank the President and Secretary Evans for their confidence and
trust in me.
I appreciate the time that several Members of the Committee have
taken in the past few weeks to meet with me individually to discuss
export and related issues. I regard consultation with this Committee as
an important and ongoing process. If confirmed, I will look forward to
working closely with you and your staff.
The Bureau of Export Administration operates at the intersection of
issues involving industry and national security. A principal focus for
the Bureau is administering an export control system that is intended
to further the growth of U.S. exports while protecting our national
security. On the one hand, it is important to enhance the operation of
the system for the 21st century in a manner that affords business the
opportunity to compete effectively in todays increasingly competitive
global marketplace. It is essential to the health of our Nation's
industrial and technological base that U.S. companies be able to export
their goods, services, and technology without being hindered by
arbitrary and unnecessary export controls.
At the same time, however, as someone who has worked at the U.S.
Department of State, I fully appreciate the critical importance of
protecting this country's
national security by ensuring that our sensitive technologies do not
fall into the
wrong hands. The challenge for all of us--in government and in the
private sector--is to have a tough-minded, yet common-sense export
control regime that strikes the proper balance between sharing our
technology with friends and protecting against the transfer of
sensitive technology to potential adversaries. If confirmed, I am
committed to the pursuit of policies and procedures that will advance
these objectives.
If confirmed, I also will try to enhance multilateral cooperation
to control the proliferation of the most critical technologies to
potential adversaries. If the U.S. Government determines that our
companies should not make a particular technology available to certain
countries, then we owe it to our business community to make every
effort possible to ensure that our allies and partners do not undercut
us by making that same technology available.
Finally, the Bureau's work involving industry and national security
extends to
assisting in the coordination of the U.S. Government's initiatives on
critical infra-
structure protection. This effort includes promoting public-private
partnerships across industry sectors, integrating the various
infrastructure plans developed by these partnerships into a
comprehensive national plan, and assisting Federal departments and
agencies in assessing their own reliance on critical infrastructures.
In an era where cyber-terrorism is a real and dangerous threat, I
regard the work of the Bureau's Critical Infrastructure Assurance
Office as an important component of our overall mission.
Let me conclude by thanking the Committee for its prompt
consideration of my nomination and by reiterating my commitment to work
closely and cooperatively with you.
PREPARED STATEMENT OF MARIA CINO
Assistant Secretary and Director General-Designate
United States and Foreign Commercial Service
U.S. Department of Commerce
April 24, 2001
Mr. Chairman, Ranking Member Sarbanes, Members of this Committee,
it is an honor and a privilege to come before you as President Bush's
nominee for the position of Assistant Secretary and Director General of
the United States Foreign and Commercial Service. Thank you for
granting me this hearing today. I know how busy you are and I really
appreciate your attention to this nomination. I look forward, if
confirmed, to working with the Members and staff of this Committee on
matters related to export promotion.
I would like to thank Senator Santorum for that kind introduction.
Ten years ago when Senator Santorum was first elected to Congress I was
Chief of Staff to Congressman Bill Paxon. Our office acted as ``big
brother'' to his office and we introduced him to the culture on Capitol
Hill. We must have been good teachers. After only one term in the U.S.
House of Representatives he came back as a U.S. Senator.
I also want to thank President George W. Bush and Secretary of
Commerce Don Evans for their support of my nomination.
Mr. Chairman, Congress created the United States Foreign and
Commercial Service to provide export assistance at a reasonable cost to
American companies. From the beginning, our mission has been to help
small- and medium-sized American business export their U.S. made
products and services and protect the interests of U.S. businesses
abroad. The Commercial Service has grown into a worldwide organization
that facilities export transactions by linking U.S. suppliers with
international buyers through our network of 105 domestic and 159
international field offices.
Small- and medium-sized American businesses understand and
appreciate the unique and valuable role played by the Commercial
Service in trade promotion and trade compliance. Federal, State and
local international trade agencies also value the Commercial Service.
Over the years we have forged a strong partnership with the Trade
Promotion Coordinating Committee to leverage scarce resources and
provide seamless export assistance to clients.
If confirmed, I will work to further strengthen the partnerships
created through the Trade Promotion Coordinating Committee to better
leverage Federal resources. The Commercial Service actively pursues
partnerships with government agencies and the private sector. I believe
that working together through partnerships at the point of service
delivery is the most effective way to help American exporters in
today's climate of increased global competition.
We live in a rapidly changing society. Our Nation continues to
evolve into a service orientated, high-tech based economy where an
increased number of exporters are from nontraditional backgrounds. The
Commercial Service must continue to respond to these changes.
If confirmed, I have set three goals for the Agency:
Increase the number of exporters from traditionally under-
served communities (minority, rural and women-owned businesses).
Increase the number of new exporters and help current
exporters increase the number of markets to which they export.
Improve the quality of export assistance provided to American
companies by the Commercial Service by enhancing the skills of our
employees through professional development opportunities.
This is truly an exciting time and one of tremendous opportunity
for U.S. exporters. Commercial Service employees are dedicated,
hardworking and committed to providing export assistance services that
are second to none. Their enthusiasm is contagious. I invite each of
you to visit your local U.S. Export Assistance Center to observe
firsthand the tremendous service that these men and women provide to
your constituent businesses seeking to export.
I welcome the challenge of leading a worldwide field-based
organization of 1,700 dynamic individuals. My 20-plus years of leading
field-based organizations, developing and adhering to complex budgets,
setting short and long term strategic goals, building coalitions, and
developing, motivating and mentoring staff have prepared me for this
position. In addition, the contacts I have made in Federal, State and
local agencies will enable me to further the goals of the U.S.
Commercial Service. It is my hope that my skills in developing
successful, strategic marketing and outreach programs will heighten the
awareness and value of the Commercial Service's programs to American
companies.
Finally, let me say that I am humbled. I could never have imagined
that while growing up in a blue-collar, ethnic and conservative
household, I would be sitting here today before the U.S. Senate at a
confirmation hearing to be the Assistant Secretary and Director General
for the United States and Foreign Commercial Service.
I want to thank my loving parents for teaching me that if I worked
hard, anything was possible. I especially want to thank my late father
for not heeding the advice of my grandfather who insisted that it would
be a waste of money to send a girl to college. I also want to thank my
colleagues and friends who challenged me and gave me the opportunity to
grow.
I deeply appreciate the honor of being here today. If confirmed I
look forward
to working with Grant Aldonas and my sister International Trade
Administration
bureaus to promote U.S. exports, support U.S. trade policies and
enforce trade
agreements.
Thank you.
PREPARED STATEMENT OF ROBERT GLENN HUBBARD
Chairman of the Council of Economic Advisers-Designate
April 24, 2001
Mr. Chairman, Senator Sarbanes, and other distinguished Members of
the Committee, it is an honor and privilege for me to appear before you
today as the President's nominee to be Chairman of the Council of
Economic Advisers. I am mindful of the Council's significant
responsibilities in the economic policy process, and I am eager to
assume the duties of the position should I be confirmed.
Since my designation as Chairman, I have had the pleasure of
visiting with many of you personally, and I look forward to meeting
with all of you as your schedules permit. I have enjoyed the occasion
to discuss the many economic priorities and opportunities we face in
this Congress and the new Administration. Let me assure you that I am
committed to a frank and outgoing dialogue with Members of Congress.
Your input and advice are valuable to me personally and to the workings
of the Council.
Before my recent nomination, I served as Russell L. Carson
Professor of Economics and Finance at the Graduate School of Business
and Department of Economics of Columbia University. While at Columbia
University, I also served as a research associate of the National
Bureau of Economic Research (in programs on monetary economics,
economic fluctuations and growth, public economics, industrial
organization, and corporate finance) and as a visiting scholar and
director of the Tax Policy Program of the American Enterprise
Institute. I have, in the past, worked with committees in both the
House and the Senate on a range of economic policy issues, and I have
acted as adviser to various government agencies. It is with this
background that I come before this Committee to seek confirmation as
Chairman of the Council of Economic Advisers.
Our Nation today confronts economic opportunities and challenges.
Technological change and economic growth have increased living
standards. We face the challenge of sustaining the economy's expansion.
Though no single policy can generate the sustained growth and stability
of our economy, the Administration is committed to a set of basic
principles to, achieve this objective.
As Chairman of the Council of Economic Advisers, I will be an
adviser to President Bush, Vice President Cheney, and other
Administration officials on all aspects of economic policy. The Council
will provide the soundest possible advice on the major issues of
concern to the American people.
Mr. Chairman and Senator Sarbanes, as I have assured you
personally, the recommendations of the Council of Economic Advisers
will be based on a reasoned and comprehensive view of the economic
environment and empirical evidence. We will be diligent in our efforts
to continue the Nation's economic growth and in our response to events
in the national and international economy.
In closing, I would like to take this opportunity to thank you, Mr.
Chairman, and the Committee for the prompt consideration of my
nomination. Mr. Chairman, I would be delighted to answer any questions
you and the other Members of the Committee may have.
RESPONSE TO WRITTEN QUESTIONS OF SENATOR SCHUMER FROM GRANT D.
ALDONAS
Q.1. American cosmetics constitute one of our Nation's most
important consumer product export sectors. American
manufacturers have raised strong concerns about new regulations
issued by the Korean Food and Drug Administration (KFDA) that
are purported to insure the safety and efficacy of a wide range
of skin care products that are already widely used and accepted
both here and around the world. The American firms complain
that the KFDA regulations are extremely discriminatory and in
reality are serving as enormous barriers to the entry of safe
and desirable American skin care products into the Korean
Market. Indeed, of approximately 450 product applications
submitted to date under the new regulations, only a handful
have been approved, all of which were submitted by Korean
firms. No foreign firm applications approved. Would you commit
to expeditiously looking into this serious issue and reporting
back quickly to the Committee about the status and avenues for
redressing this apparent cosmetics trade barrier problem with
Korea?
A.1. Yes. I understand this is an important market access
issue for U.S. companies and, if confirmed, I will make it a
priority for the International Trade Administration (ITA). Once
confirmed, I will report back to you and the Committee on the
extent to which our ITA compliance officers have already been
actively monitoring the issue of trade barriers to exports of
cosmetics in Korea and what future steps we will take to
improve the prospects for our exporters in the Korean market.