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ment. This administration will take whatever steps are necessary to assure that 

 U.S. workers are not injured because of illegal activity by those who would try to 

 import non-NAFTA goods to the United States, passing them off as the product of 

 a NAFTA country. 



Finally, let me address your question regarding how we will protect U.S. produc- 

 ers who are injured by increased imports from Mexico. I would first remind you that 

 NAFTA is a package. This package includes supplemental accords on environmental 

 issues, labor issues, and import surges. I won't discuss these accords in great de- 

 tail — I will defer to Ambassador Kantor to address the specifics of these agreements. 

 But each of these plays a key role in protecting American jobs and protecting the 

 American worker. 



Under the environment and labor accords, each Party has the obligation to ensure 

 that its laws and regulations provide a high level of protection for the environment, 

 and high labor standards. Together with the NAFTA, the side agreement on envi- 

 ronment requires Mexico to enforce its environmental standards and discourages 

 Mexico from lowering its standards to attract iobs and investment to its country. 

 High-level commissions will be created to evaluate and settle disputes, and this 

 process will be open to the public to fully expose violations. The United States can 

 ultimately impose trade sanctions against Mexico if it fails to enforce its own domes- 

 tic environmental and labor laws. 



The import surges accord supplements the many safeguards already included in 

 the NAFTA text to protect U.S. industries, sectors of agriculture, and workers 

 against damaging import surges. This accord sets up a system to help us identify 

 potential surges in imports. It provides each country the opportunity to use NAFTA 

 safeguard measures in a timely fashion to protect workers from being injured by in- 

 creased imports and provides the other NAFTA countries with "early warning" of 

 the need to take such measures. 



But as I said, this is a package, and these agreements are only a part of this 

 package. I should note that the administration will be working with Congress to ful- 

 fill its promise to U.S. citizens to develop and fund a strong worker adjustment pro- 

 fram. This, too, is part of the NAFTA package. The President has pledged that the 

 enefits of trade in terms of jobs and growth should not be used as an excuse to 

 forget the potential impact on those who, already, are increasingly vulnerable to 

 global competition. 



Secretary Reich, who is a strong supporter of NAFTA, will lead this administra- 

 tion's efforts to make it possible for those workers who are affected by NAFTA, and 

 there will be some, to find a new, better paying job. But I assure you that I will 

 be beside Secretary Reich in this campaign, not behind him, working to provide 

 rural America with a reemployment system, not just an unemployment system. 



CONCLUSION 



Mr. Chairman, let me close with a few general comments. 



The greatest challenge we face in the world today is one of economic competition 

 and growth. To expand and prosper, U.S. agriculture needs growing export markets. 

 NAFTA will put U.S. farmers in the middle of the world's largest and richest free 

 trade area, with more people, more income, and more potential for future growth 

 in food demand than the 12-nation European Community. It will secure future 

 growth opportunities for U.S. agriculture within our own hemisphere. 



The latest USDA forecasts indicate that our two closest neighbors together will 

 purchase a record $9.0 billion in U.S. farm and food products this fiscal year. That 

 is over 20 percent of our total agricultural exports — more than either Japan or the 

 EC is expected to buy. North America has become our largest agricultural export 

 market, and NAFTA will lay the foundation for continued export growth far into the 

 next century. 



Mexico, in particular, represents an agricultural market of great growth potential. 

 Income growth and the emerging demand for better, more diverse diets already 

 present substantial opportunities not present in the relatively mature U.S. and Ca- 

 nadian markets, and Mexico's population is growing at a much faster rate. In fact, 

 over the next 20 years, Mexico is expected to add more people to North America's 

 total population than the United States and Canada combined. 



NAFTA will protect and expand U.S. access to this market, while bolstering Mexi- 

 can economic growth and the demand that results from higher incomes. The ratifica- 

 tion of this agreement will demonstrate to the world what can be achieved when 

 nations recognize the benefits of fair and free trade and are committed to realizing 

 those benefits for their farmers and ranchers, their citizens, and their economies. 



Mr. Chairman, that concludes my statement. I will be glad to answer your ques- 

 tions and those of the committee. 



