48 



There was just recently a story on "60 Minutes" regarding a 

 large number of immigrants coming into this country. If we become 

 more lax along our borders in Texas and in California, what type 

 of an increase in enforcement are we going to have on our borders 

 as well? 



Ambassador Kantor. Without addressing what is a Customs 

 problem, the rules of origin in the NAFTA itself are very strict. We 

 don't want Mexico to become a platform, in fact, of products from 

 other countries, as you suggest. And we have a very good dispute 

 resolution mechanism in the NAFTA itself which involves every- 

 thing all the way to retaliation, if in fact there has been an offense 

 committed. 



Therefore, we believe in the NAFTA itself what you have sug- 

 gested is covered as adequately as it can be. That doesn't mean it 

 is going to be perfect. That doesn't mean that in certain cases there 

 might not be transshipments that in fact violate these rules of ori- 

 gin, but we believe the Mexican Government is very serious about 

 this and negotiated this agreement seriously in this respect. We 

 are confident that we can enforce it. 



Mr. Sarpalius. Well, saying it and putting it on a piece of paper 

 and doing it is something else. 



Ambassador Kantor. It certainly is. 



Mr. Sarpalius. That is one of the major concerns that I hear 

 about — what assurance do we have that there really will be some 

 enforcement of this. I assume you're convinced in your mind that 

 that problem is taken care of 



Ambassador Kantor. I don't want to overstate the case. No one 

 should in my position. In my confirmation hearings in the other 

 body, I made it quite clear that I believe half of my job is enforce- 

 ment, not only agreements that are currently in effect but also U.S. 

 laws, whether it be 301, 201 in other areas. 



We have to make sure that we enforce the laws on the books and 

 these agreements in order to make sure that they work and also 

 to gain the confidence of the American people, frankly. I believe 

 that is an important part of what I do. 



Mr. Sarpalius. My time has expired. Thank you. 



Ambassador Kantor. Thank you, sir. 



Mr. English. Mr. Barrett. 



Mr. Barrett. Thank you, Mr. Chairman. 



I, too, Mr. Ambassador, want to congratulate you on your new 

 station in life. My apologies for not being present when you had the 

 dialog with members of this committee earlier. So in the interest 

 of time, I would also like to submit a series of questions to you and 

 hope that you could respond in writing, specifically with reference 

 to commodities, wheat, sugar, and drj' beans. 



However, I have one quick question. 



I continue to receive word that there has been a side agreement 

 with sugar. Sugar producers even are telling me that there perhaps 

 has been some agreement. 



If we are revisiting this subject, I am sorry, but for my benefit 

 and perhaps for the record, Has there been any agreement up to 

 this point with sugar? 



Ambassador Kantor. There is no agreement other than what is 

 in the NAFTA itself, which for the first 6 years we stay at 7,350 



