39 



Ambassador Kantor. Thank you, Mr. Rose. I appreciate that. As 

 I said, we are working on our pohcy. This is our seventh week and 

 we're going to address these problems. You can be sure of that. 



Mr. Rose. Thank you. 



The Chairman. I thank the gentleman. 



Mr. Ambassador, our colleague mentioned with regard to peanuts 

 transshipment and that the People's Republic of China doesn't 

 have to worry about transshipment of honey. We only charge them 

 1-cent-a-pound duty. So this is something that I know we visited 

 and you will be addressing that issue. 



Within the overall, there needs to be some consistency. This is 

 driving a whole segment of agriculture out of business. Some critics 

 are taking shots at our producers because it is considered cute by 

 some editorial writers, yet we afford foreign producers a give-away 

 tariff. It is inconceivable that we would do that while the rest of 

 the world has duties, with the exception of Canada, which I think 

 is 1.5 cents. But beyond that, it is anywhere from 20 to 100 percent 

 tariff. I do hope there is a GATT solution — but since the/re not 

 members of GATT, I think we must address that on a bilateral 

 level, and make it GATT consistent. 



Ambassador Kantor. The Chinese, of course, are imploring us to 

 help them with the GATT accession. I had sent a team from the 

 USTR to China. They were just there 10 days ago. We made it 

 quite clear that until in fact their markets opened up and there 

 was reasonable market access, we weren't going to be as favorable 

 toward GATT accession as they may have wanted us to be. 



I think, Mr. Chairman, that the President's speech at the Amer- 

 ican University made it quite clear. We are going to insist that our 

 trading partners in this new world — this post cold war world — be 

 comparably open to our products as ours are to theirs. We welcome 

 their products, but we expect them to welcome ours. 



The Chairman. That is exactly true. The old saying is "Business 

 is business." You have to do business in a business-like manner 

 and not give away the store. 



Ambassador Kantor. And these are not just theories. All of your 

 members know that there are real businesses and real American 

 workers that have a stake in this. Trade is $1.6 trillion of this 

 economy. That is $1 out every $4. We can no longer afford to open 

 our markets and not insist our trading partners do the same. 



The Chairman. Good for you. We will work with you. 



Mr. Gunderson. 



Mr. Gunderson. Mr. Ambassador, welcome. 



I couldn't help but reflect as I have been following your activities 

 in the paper and listening to you this morning that I bet the cam- 

 paign was easier than this. 



ii^bassador Kantor. No, Mr. Gunderson, it wasn't. 



Mr. Gunderson. That may be encouraging. 



Ambassador Kantor. Let m.e say that this is a delight given the 

 political campaign. No. 1, I can be bipartisan, nonpartisan and 

 work with both sides of the aisle. No. 2, I can work with a Presi- 

 dent who truly understands not only what I am doing, but frankly 

 what everybody else is doing and has set a real consistent policy 

 for us. No. 3, I can come up here without having to advocate politi- 

 cally and advocate for the American people. 



