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S. HRG. 115–33 

NOMINATION OF WILBUR L. ROSS, JR., 

TO BE SECRETARY OF 

THE DEPARTMENT OF COMMERCE 

HEARING 

BEFORE THE

COMMITTEE ON COMMERCE, 

SCIENCE, AND TRANSPORTATION 

UNITED STATES SENATE 

ONE HUNDRED FIFTEENTH CONGRESS 

FIRST SESSION 

JANUARY 18, 2017 

Printed for the use of the Committee on Commerce, Science, and Transportation 

( 

(II) 

SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION 

ONE HUNDRED FIFTEENTH CONGRESS 

FIRST SESSION 

JOHN THUNE, South Dakota, Chairman 

ROGER F. WICKER, Mississippi 

ROY BLUNT, Missouri 

TED CRUZ, Texas 

DEB FISCHER, Nebraska 

JERRY MORAN, Kansas 

DAN SULLIVAN, Alaska 

DEAN HELLER, Nevada 

JAMES INHOFE, Oklahoma 

MIKE LEE, Utah 

RON JOHNSON, Wisconsin 

SHELLEY MOORE CAPITO, West Virginia 

CORY GARDNER, Colorado 

TODD YOUNG, Indiana 

BILL NELSON, Florida, Ranking 

MARIA CANTWELL, Washington 

AMY KLOBUCHAR, Minnesota 

RICHARD BLUMENTHAL, Connecticut 

BRIAN SCHATZ, Hawaii 

EDWARD MARKEY, Massachusetts 

CORY BOOKER, New Jersey 

TOM UDALL, New Mexico 

GARY PETERS, Michigan 

TAMMY BALDWIN, Wisconsin 

TAMMY DUCKWORTH, Illinois 

MAGGIE HASSAN, New Hampshire 

CATHERINE CORTEZ MASTO, Nevada 

NICK ROSSI, Staff Director 

ADRIAN ARNAKIS, Deputy Staff Director 

JASON VAN BEEK, General Counsel 

KIM LIPSKY, Democratic Staff Director 

CHRIS DAY, Democratic Deputy Staff Director 

RENAE BLACK, Senior Counsel 

(III) 

C O N T E N T S 

Page 

Hearing held on January 18, 2017 ......................................................................... 1 

Statement of Senator Thune ................................................................................... 1 

Letter dated December 19, 2016 to Hon. John Thune from Carlos Gutierrez, Secretary of Commerce (2005–2009)—George W. Bush ..................... 31 

Letter dated December 20, 2016 to Hon. John Thune from William M. 

Daley .............................................................................................................. 32 

Letter dated December 20, 2016 to Senator John Thune from Donald 

L. Evans, 34th Secretary of Commerce ....................................................... 33 

Letter dated January 6, 2017 to Hon. John Thune and Hon. Bill Nelson 

from Peter Tichansky, President and CEO, Business Council for International Understanding ............................................................................... 34 

Letter dated January 9, 2017 to Senator Thune from Leo W. Gerard, 

President, United Steel Workers ................................................................. 35 

Letter dated January 10, 2017 to Hon. John Thune and Hon. Bill Nelson 

from Peter G. Peterson, U.S. Secretary of Commerce, 1972–73 ............... 36 

Statement dated January 18, 2017 from Senator Chris Dodd, Chairman 

and CEO, Motion Picture Association of America, Inc. ............................. 37 

Statement of Senator Nelson .................................................................................. 2 

Prepared statement .......................................................................................... 4 

Letter dated January 17, 2017 to Wilbur Ross from Florida scientists: 

Senthold Asseng, Professor, Department of Agricultural and Biological 

Engineering, University of Florida; Keren Bolter, Research Affiliate, 

Center for Environmental Studies, Florida Atlantic University; Jeff 

Chanton, Professor, The John Widmer Winchester Professor of Oceanography, Department of Earth, Ocean and Atmospheric Science, Florida 

State University; David B. Enfield (ret. 2015), Dept. of Physical Oceanography, NOAA Atlantic Oceanographic & Meterological Laboratory; 

Pamela Hallock Muller, Ph.D., Professor, College of Marine Science, 

University of South Florida; David Hastings, Professor, Marine Science 

and Chemistry, Eckerd College; Barry Heimlich, Vice Chair, Climate 

Change Task Force, Broward County; Ben Kirtman, Professor, Department of Atmospheric Science, Rosenstiel School for Marine and Atmospheric Sciences, University of Miami; John H. Parker, Professor Emeritus of Chemistry and Environmental Science, Department of Earth 

and Environment, Florida International University; Randall W. Parkinson, Ph.D., P.G., Research Faculty Affiliate, Institute for Water and 

Environment, Florida International University; Brad E. Rosenheim, 

Ph.D., Associate Professor, College of Marine Science, University of 

South Florida; Philip Stoddard, Professor, Department of Biological 

Sciences, Florida International University, Mayor of South Florida; 

and Harold R. Wanless, Professor and Chair, Department of Geological 

Sciences, College of Arts and Sciences, University of Miami .................... 92 

Article dated December 2016 from NOAA’s National Centers for Environmental Information ....................................................................................... 94 

Statement of Senator Cantwell .............................................................................. 41 

Statement of Senator Blunt .................................................................................... 44 

Statement of Senator Klobuchar ............................................................................ 45 

Statement of Senator Sullivan ............................................................................... 47 

Statement of Senator Blumenthal .......................................................................... 49 

Statement of Senator Heller ................................................................................... 51 

Statement of Senator Wicker .................................................................................. 52 

Statement of Senator Schatz .................................................................................. 54 

Statement of Senator Gardner ............................................................................... 56 

Statement of Senator Peters ................................................................................... 58 

Page

IV 

Statement of Senator Cortez Masto ....................................................................... 60 

Statement of Senator Johnson ................................................................................ 61 

Statement of Senator Hassan ................................................................................. 63 

Statement of Senator Udall .................................................................................... 65 

Statement of Senator Lee ....................................................................................... 67 

Statement of Senator Young ................................................................................... 68 

Statement of Senator Duckworth ........................................................................... 70 

Statement of Senator Booker .................................................................................. 72 

Statement of Senator Fischer ................................................................................. 74 

Statement of Senator Cruz ..................................................................................... 75 

Statement of Senator Baldwin ................................................................................ 77 

Statement of Senator Moran .................................................................................. 79 

Statement of Senator Capito .................................................................................. 81 

Statement of Senator Inhofe ................................................................................... 83 

Statement of Senator Markey ................................................................................. 84 

WITNESSES

Hon. Marco Rubio, U.S. Senator from Florida ...................................................... 5 

Wilbur L. Ross, Jr., to be Secretary of the Department of Commerce ................ 6 

Prepared statement .......................................................................................... 8 

Biographical information ................................................................................. 9 

APPENDIX

Response to written questions submitted to Wilbur L. Ross, Jr. by: 

Hon. John Thune .............................................................................................. 99 

Hon. Roger F. Wicker ....................................................................................... 99 

Hon. Deb Fischer .............................................................................................. 100 

Hon. Dan Sullivan ............................................................................................ 100 

Hon. Cory Gardner ........................................................................................... 101 

Hon. Todd Young .............................................................................................. 101 

Hon. Bill Nelson ............................................................................................... 102 

Hon. Maria Cantwell ........................................................................................ 104 

Hon. Amy Klobuchar ........................................................................................ 117 

Hon. Richard Blumenthal ................................................................................ 119 

Hon. Brian Schatz ............................................................................................ 123 

Hon. Edward Markey ....................................................................................... 125 

Hon. Cory Booker ............................................................................................. 129 

Hon. Tom Udall ................................................................................................ 135 

Hon. Gary Peters .............................................................................................. 140 

Hon. Tammy Baldwin ...................................................................................... 142 

Hon. Tammy Duckworth .................................................................................. 144 

(1) 

NOMINATION OF WILBUR L. ROSS, JR., 

TO BE SECRETARY OF 

THE DEPARTMENT OF COMMERCE 

WEDNESDAY, JANUARY 18, 2017 

U.S. SENATE, 

COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION, 

Washington, DC. 

The Committee met, pursuant to notice, at 10:03 a.m. in room 

SD–G50, Dirksen Senate Office Building, Hon. John Thune, presiding. 

Present: Senators Thune [presiding], Nelson, Cantwell, Blunt, 

Klobuchar, Sullivan, Blumenthal, Heller, Wicker, Schatz, Gardner, 

Peters, Cortez Masto, Johnson, Hassan, Udall, Lee, Young, 

Duckworth, Booker, Cruz, Baldwin, Moran, Capito, Inhofe, Markey, 

and Fischer. 

OPENING STATEMENT OF HON. JOHN THUNE, 

U.S. SENATOR FROM SOUTH DAKOTA 

The CHAIRMAN. Good morning. We are meeting today to consider 

the nomination of Mr. Wilbur Ross to be the next Secretary of 

Commerce. If confirmed, Mr. Ross would bring decades of business, 

entrepreneurial, and civic experience to this important position. 

Mr. Ross is perhaps best known for his expertise in revitalizing 

distressed businesses, such as those in the United States steel industry. At a time when most inventors had abandoned the industry—investors I should say had abandoned the industry, he organized International Steel Group in 2002 and, through acquisitions, 

made it the largest integrated steel company in North America. 

Later, it merged with Mittal Steel to form the largest steel company in the world. 

Mr. Ross’s strong record of achievement in business led 

Bloomberg Businessweek to name him one of the 50 Most Influential People in Global Finance in 2011. It’s also why he is the only 

person elected to both the Turnaround Management Hall of Fame 

and the Private Equity Hall of Fame. 

Mr. Ross’s business experience is complemented by his service to 

the community. Mr. Ross served as a First Lieutenant in the U.S. 

Army, and he is currently a Member of the Dean’s Advisory Board 

of Harvard Business School. He is also an Advisory Board Member 

of the Yale University School of Management, which has presented 

him with its Legend of Leadership Award. 

Mr. Ross’s nomination comes at an important time in our Nation’s economic recovery. I believe his extensive management expeVerDate Nov 24 2008 09:55 Jul 10, 2017 Jkt 075679 PO 00000 Frm 00005 Fmt 6633 Sfmt 6633 S:\GPO\DOCS\25974.TXT JACKIE
2 

rience in the private sector, and his understanding of the challenges faced by workers and businesses alike, will equip him well 

for the job of leading the Department of Commerce. 

This large department, which has 12 different bureaus and nearly 47,000 employees located in all 50 states and around the world, 

oversees a diverse array of issues, from trade to fishery management, and from weather forecasting to the Census Bureau. 

I will be asking Mr. Ross about many of the challenges facing the 

Department and our economy. First and foremost, I will be asking 

how he plans to deal with trade matters as the Secretary of Commerce. 

I also want to explore how, if confirmed, he would continue to 

play a lead role in advocating for policies that promote American 

innovation, like freeing up government spectrum for private use 

and facilitating the growing Internet of Things. 

Mr. Ross’s experience turning around businesses should help him 

anticipate and mitigate the risks of major programs like FirstNet, 

the independent authority charged with creating a nationwide 

broadband network for first responders, and the acquisition of critical weather satellites by the National Oceanic and Atmospheric 

Administration. 

Finally, I would note that collaboration between the public and 

private sectors is one of the hallmarks of the Department’s work, 

as exemplified by the ongoing development of cybersecurity best 

practices and standards, which this Committee has strongly endorsed. 

Mr. Ross, should you be confirmed, we will be depending on you 

to continue this collaboration and strengthen it where necessary. 

Mr. Ross, I believe your business know-how and intelligence 

make you an excellent candidate to serve as the next Secretary of 

Commerce, and I look forward to supporting your nomination. 

I want to turn now to our Ranking Member, the distinguished 

Senator from Florida, Senator Nelson, for any opening remarks 

that he would like to make. 

STATEMENT OF HON. BILL NELSON, 

U.S. SENATOR FROM FLORIDA 

Senator NELSON. Thank you, Mr. Chairman. 

Mr. Wilbur Ross and Hilary Ross, we welcome you both to the 

Committee. I want to congratulate you on your nomination. You 

and, interestingly, the incumbent, Secretary Pritzker, have some of 

the most extensive financial holdings of any nominees who have 

appeared before this Committee. After reviewing your financial disclosure and ethics agreement, it’s my understanding that you have 

agreed to divest the vast majority of your personal holdings and resign from nearly 50 boards and organizations. I believe that’s the 

right thing to do, and it tells me that you are committed to doing 

the job the right way by placing the public’s interest ahead of your 

own. It’s my hope that President Trump will follow your lead and 

the example that you set to eliminate any business dealings that 

could pose potential conflicts of interest. 

Now, in recent years, the Commerce Secretary post has not been 

one of the most sought after or one of the most appreciated posiVerDate Nov 24 2008 09:55 Jul 10, 2017 Jkt 075679 PO 00000 Frm 00006 Fmt 6633 Sfmt 6633 S:\GPO\DOCS\25974.TXT JACKIE
3 

tions in Washington, but I have a feeling that that’s about to 

change in a big way. 

As the President-elect has indicated, he is going to look to you 

to help lead the Administration’s trade agenda. That’s a departure 

from past Commerce Secretaries and the role that they played, 

which was much smaller in setting U.S. trade policy. Given that 

expanded role and the incoming President’s desire to make job creation and overhauling trade deals top priorities, I hope that we’ll 

hear from you today, as the Chairman has already indicated, on 

the administration’s trade plans and how you hope to create jobs 

that will benefit all Americans. 

I would like for you to tell us more about how your trade duties 

might expand and how this could impact the role of the U.S. Trade 

Representative, who traditionally has taken the lead on trade negotiations. 

And while we’re on the topic of protecting American workers, 

there has been some negative commentary on how you built your 

business empire by buying and selling troubled companies. Others 

have lauded you for saving companies and thousands of jobs. I 

think it would be most helpful to all of us on the Committee if we 

could get an assessment from you on your record of job creation 

and what lessons you’ve learned that will help you grow the economy and protect American workers. 

Now, while I expect a good portion of today will be spent talking 

about trade and jobs and your experience, there is a lot more to the 

Department of Commerce. This Department, of some 40,000 employees, impacts our daily lives in a a number of ways: providing 

vital weather forecasts to millions of Americans through NOAA 

and the National Weather Service, playing a huge role in building 

out our Nation’s digital infrastructure, helping grow and expand 

minority-owned businesses, collecting all sorts of data, including 

data critical to jobs and the economy, as well as monitoring environmental conditions and climate change. 

And that brings me to one of my last topics and one that is especially important to, Mr. Ross, your state of Florida, that is, sea 

level rise and global warming. Florida has over 20 million people 

and 75 percent of them live on the coast, including the two of you. 

The state’s highest point is only 345 feet. That, by the way, a piece 

of trivia, in the Peninsula State, is a position in the middle of the 

state where Bok Tower at Lake Wales is located. 

Because of the work of NOAA and NASA and other agencies, we 

have measurements and forecasts that can tell us when a monster 

storm is coming. And we also have the science to know that coastal 

communities face peril even on sunny days because of the longterm atmospheric trends. Scientifically accurate data from weather 

satellites shows that this is, in fact, happening. And the problem 

is that some folks will go to any lengths to deny this truth, including gagging climate scientists. Now, that shouldn’t happen and 

that should be troubling to all of us. 

So given your personal experience of being a Floridian, I hope 

that you will agree on the need to continue vital scientific research 

to inform the public about extreme weather events and trends over 

time. And it’s my hope that we’ll get a commitment from you to not 

4 

allow intimidation or censorship of climate scientists under your jurisdiction. 

And with that, Mr. Chairman, I see my colleague, my fellow Floridian, Senator Rubio. He has come back to the Committee, and I 

know you are going to introduce him. I’m looking forward to having 

him formally introduce our nominee. 

[The prepared statement of Senator Nelson follows:] 

PREPARED STATEMENT OF HON. BILL NELSON, U.S. SENATOR FROM FLORIDA

Mr. Ross, as a fellow Floridian, I’d like to welcome you here and congratulate you 

on your nomination. 

I can’t promise you today’s hearing will be a piece of cake, but I’m looking forward 

to having a comprehensive and cordial discussion about your qualifications and how, 

if confirmed, you might handle many of the pressing issues you could face. 

I’d like to start by acknowledging that it’s no secret you have some of the most 

extensive financial holdings of any past or present nominee before this committee. 

After reviewing your financial disclosure and ethics agreement, I want to note that 

it’s my understanding that you have agreed to divest the vast majority of your personal holdings and resign from nearly 50 boards and organizations. I believe that 

was the right thing to do and tells me you’re committed to doing the job the right 

way by placing the public’s interests ahead of your own. 

It’s my hope President Trump will follow your lead to eliminate any business dealings that could pose potential conflicts of interest. 

Mr. Ross, in recent years the Commerce Secretary post has not been one of the 

most sought after or appreciated positions in Washington. But I have a feeling that’s 

about to change in a big way. 

As the President-elect has indicated, he is going to look to you and Secretary of 

State nominee Rex Tillerson to lead the administration’s trade agenda. That’s a departure from the recent past when previous commerce secretaries played much 

smaller roles in setting U.S. trade policy. 

Given that expanded role and the incoming president’s desire to make job creation 

and overhauling trade deals top priorities, I hope we’ll hear more from you on the 

administration’s trade plans and how they will create jobs and benefit all Americans. 

Additionally, I’d like for you to tell us more about how your trade duties might 

expand and how this could impact the role of the U.S. Trade Representative, who 

traditionally has taken the lead on trade negotiations. 

And while we’re on the topic of protecting American workers, Mr. Ross, there’s 

been some who have suggested that you built your business empire on the backs 

of workers who lost their jobs after buying and then ultimately profiting from the 

sale of troubled companies. Others have lauded you for saving companies and thousands of jobs. 

I think it would be most helpful to all of us on the Committee if we could get 

an assessment from you on your record of job creation and what, if any, lessons 

you’ve learned that will help grow and protect American workers. 

While I expect a good portion of today will be spent talking about trade, jobs and 

Mr. Ross’ experience, there’s lots more to the Department of Commerce. 

This little department of some 47,000 employees impacts our daily lives by: 

• Providing vital weather forecasts to millions of Americans though NOAA and 

the National Weather Service; 

• Playing a huge role in building out our Nation’s digital infrastructure; 

• Helping grow and expand minority owned businesses; and, 

• Collecting all sorts of data—including data critical to jobs and the economy, as 

well as monitoring environmental conditions and climate change. 

That brings me to my last topic and one especially important to Florida—sea level 

rise and global warming. 

Of Florida’s 20 million people, over 75 percent live in coastal counties, including 

Mr. Ross. The state’s highest point is only 345 feet above sea level. 

Because of the work NOAA and other agencies are doing, we have measurements 

and forecasts that can tell us when a monster storm is coming. 

We also have the science to know that coastal communities face peril even on 

sunny days because of longer-term atmospheric trends. 

I know some people think climate change is a hoax. 

5 

But the data—scientifically accurate data—from weather satellites shows that it 

is happening. 

The problem is that some folks will go to any length to deny this truth, including 

gaging climate scientists. That should be very troubling to us all. 

So, Mr. Ross, given your personal experience of living in Florida, I hope you agree 

with me on the need to continue vital scientific research to inform the public about 

extreme weather events and trends over time. Additionally, it’s my hope we’ll get 

a commitment from you to not allow intimidation and censorship of climate scientists under your jurisdiction. 

With that Mr. Chairman, I’d like to welcome my colleague and fellow Floridian, 

Senator Marco Rubio, back to the Committee to introduce Mr. Ross. 

The CHAIRMAN. Thank you, Senator Nelson. 

We are very privileged to have Senator Rubio here, your colleague from Florida, and our colleague in the U.S. Senate, to introduce Mr. Ross. 

And so I welcome you back to the Committee, Senator Rubio, and 

please proceed with your remarks. 

STATEMENT OF HON. MARCO RUBIO, 

U.S. SENATOR FROM FLORIDA 

Senator RUBIO. Thank you, Mr. Chairman. I must say to the 

Members, you guys look different from this side of the dais. 

[Laughter.] 

Senator RUBIO. But anyway, thank you. I appreciate the honor 

of being here, Mr. Chairman. I’m honored to be here to introduce 

Wilbur Ross, who is a fellow Floridian, and he is President-elect 

Trump’s nominee for Secretary of Commerce. I also want to thank 

you and Senator Nelson for allowing me this honor, especially as 

you said, I enjoyed serving on this Committee for the past 6 years. 

So to say that Mr. Ross has extensive business experience and 

extensive experience working in the private sector I believe is quite 

an understatement. For more than half a century now, there is virtually no part of the American economy in which he has not created jobs. This includes industries such as airlines and apparel, 

auto parts, banking, beer, chemicals, credit cards, electric utilities, 

food service, furniture, home building, insurance, marine transport, 

mortgages, oil and gas, railcar manufacturing and leasing, real estate, restaurants, shipyards, steel, textiles, and trucking. 

In all, Mr. Ross has been Chairman or Lead Director of more 

than 100 companies operating in more than 20 different countries. 

And he would bring this real-world experience to a department 

whose mission is fundamentally about expanding opportunity for 

American entrepreneurs and workers all over the world. 

Despite his professional commitments in the private sector, Mr. 

Ross has also devoted time to public service, answering the call 

from leaders in both parties. 

All-in-all, Mr. Ross will bring an important perspective to major 

policy debates we need to have. This includes modernizing our tax 

codes, strengthening our economy, empowering entrepreneurs and 

small businesses, increasing wages for hard-working families, and 

ensuring a fair and competitive playing field when it comes to selling American products and services to the rest of the world. I am 

confident that Mr. Ross will serve this Nation admirably, and I am 

proud to introduce him to the Committee here today. 

6 

And I thank you, Mr. Chairman, and I thank the Ranking Member. 

The CHAIRMAN. Thank you, Senator Rubio. 

I want to ask Mr. Ross, please come forward and take the witness stand, and we’ll look forward to hearing directly from you. 

I see you’re surrounded by Floridians today, Senator Nelson. And 

I know that there are many of Senator Klobuchar’s and my constituents who end up being part-time constituents of yours this 

time of the year in Florida. 

Senator NELSON. And eventually they become full-time. 

[Laughter.] 

Senator NELSON. And, Mr. Chairman, we are looking forward to 

hosting you in Florida, as you so graciously hosted me in South Dakota. So, too, we’re going to show you the amazing River of Grass, 

the Everglades. 

The CHAIRMAN. Thank you. And thank you for doing it in February. 

[Laughter.] 

The CHAIRMAN. Mr. Ross, please proceed. Welcome. 

STATEMENT OF WILBUR L. ROSS, JR., TO BE SECRETARY OF 

THE DEPARTMENT OF COMMERCE 

Mr. ROSS. Thank you, Mr. Chairman, Ranking Member Nelson, 

and Members of the Committee. I am very grateful for the opportunity to appear before you today. As a proud resident of Florida, 

I would also like to thank Senator Marco Rubio for his kind introduction. 

With me today is my wife, Hilary Geary Ross. 

Since President-elect Trump announced my nomination, I’ve had 

the opportunity to meet with many of you. In our meetings, I’ve 

heard firsthand how we can work together to the benefit of the 

American people. These meetings have been helpful to me, and I 

look forward to continuing the dialogue. 

I may be the only nominee ever for Commerce Secretary who actually worked as a Census taker. When I was working my way 

through Harvard Business School, I was a Census taker, what they 

more technically call an enumerator, in the Scollay Square area of 

Boston. And that task was quite fascinating in that they had me 

wear a big white belt, it ran diagonally from the shoulder to the 

waist, and then a big white one around the waist, and a big kind 

of school patrol badge, and then we had to talk our way into people’s households to get them to let us take the Census. So I have 

firsthand expertise in that, and I can appreciate the enormity of 

the task for the 2020 Decennial Census. 

I’ve also been, over the years, a very large consumer of various 

forms of data put out by different departments of the Department 

of Commerce: census data, BEA data, data from NOAA. All kinds 

of information have come out, and I believe it’s the case that the 

Commerce Department emits 40 percent of all the data to the public that comes out of all of the departments combined. So that’s a 

huge task. Getting it right, getting it timely, is a big challenge and 

one that we will work a lot on. 

Another very, very important function, of course, is spectrum. We 

need more spectrum in the private sector. And I will try my best 

7 

to help convince those government agencies that have spectrum 

and don’t really need it to permit it to be commercialized, and that 

may very well be a help toward extending broadband to some of the 

more rural communities and other segments that are underserved 

right now. 

I have some firsthand experience there in that I have been Vice 

Chair of my community in southern Florida that’s in the process 

of undergrounding its utilities to bring fiber optic service and 21st 

century service throughout the community, and also to protect us 

better against the exigencies of weather, which, as Senator Nelson 

and Senator Rubio pointed out, is a big threat in southern Florida. 

Weather sensitivity is something that comes to you naturally if 

you’re in Florida. Hilary and I live right on the water there, and 

so we’re well aware of the importance of timely warning of impending hurricanes. And I’m also aware that until NOAA has been 

launching its new series of satellites, there had been an inferiority 

of our weather forecasting relative to what was done in Europe and 

in Japan. As far as I can tell, the new sensing devices will more 

than bring us up to equal and probably ahead of the others. 

Southern Florida also is characterized by very great importance 

of fishing and tourism, and if there is one consistent message I got 

as I met with the various Members of the Committee, it’s just how 

important fishing is. I didn’t really understand quite how intricate 

an industry it is. I think I now have some fundamental grasp of 

it and its importance. 

One of the things I would like to try to help correct is we, believe it or not, have a trade deficit in fishing of some $11 billion a year. 

Given the enormity of our coastlines, given the enormity of our 

freshwater, I would like to try to figure out how we can become 

much more self-sufficient in fishing and perhaps even a net exporter of fishing. 

As to trade, over the years, I’ve had businesses that actually operated in some 23 countries. For the most part, our businesses 

have been domestic, but we have been on the ground in all of the 

major trading partners of this country. As a result, we know directly both what’s good and a lot of the things that are not so good 

about the trade policies of many of these other countries. 

I am not anti-trade, I am pro-trade, but I’m pro-sensible trade, 

not pro-trade that is to the disadvantage of the American worker 

and the American manufacturing community. 

I think we should provide access to our markets to those countries who play fair, play by the rules, and give everybody a fair 

chance to compete. Those who do not should not get away with it, 

they should be punished, and severely. 

I think that we cannot afford trade that is inherently bad for 

American workers and for American businesses, but I think there 

are plenty of opportunities to expand our exports, and I think the 

number one objective will be expanding our exports. I think that 

there are many things that we can do that we haven’t been doing, 

and I look forward to discussing some of those as we get into more 

detailed questions. 

Very recently, the President-elect has convened meetings with 

various of the high-tech executives, and I’ve been impressed to 

learn from them how similar the problems they face with the proVerDate Nov 24 2008 09:55 Jul 10, 2017 Jkt 075679 PO 00000 Frm 00011 Fmt 6633 Sfmt 6601 S:\GPO\DOCS\25974.TXT JACKIE
8 

tectionism and a variety of other countries to the problems that 

manufacturing businesses face. So while the exact implementation 

of the improper things is not the same, the general direction is the 

same, trying to thwart American progress. That’s something we 

need to try to fix. 

There are many, many more functions that the Commerce Department has, but in the limited time of introductory remarks, I 

think I’ll stop there and hopefully deal with the others during the 

question and answer period. 

So I thank you again for having me here today. 

[The prepared statement and biographical information of Mr. 

Ross follow:] 

PREPARED STATEMENT OF WILBUR L. ROSS, JR., NOMINEE FOR SECRETARY, UNITED STATES DEPARTMENT OF COMMERCE

Mr. Chairman, Ranking Member Nelson, and members of the Committee, thank 

you for the opportunity to appear before you today. As a proud resident of Florida 

I am honored by the presence of both of my home State Senators, and I would also 

like to thank Senator Marco Rubio for his kind introduction. 

With me today is my wife, Hilary Geary Ross. 

Since President-elect Trump announced my nomination, I’ve had the opportunity 

to meet with many of you. In our meetings, I’ve heard firsthand how we can work 

together on behalf of the American people. These meetings have been helpful to me. 

I look forward to our continued dialog. 

Mr. Chairman, I am honored to be under consideration for Secretary of the United 

States Department of Commerce. I’m particularly interested in the Department of 

Commerce for several reasons. 

First, I may be the only nominee for Secretary of Commerce that was a U.S. Census Taker. I was working my way through Harvard Business School and that was 

one of the jobs that I had during college. At that time, we would put on the big 

white sash along with a badge and we would visit individual homes and record information for the Census. I was assigned to Scollay Square in Boston. We had to 

convince people through a small opening of the door that we were helping record 

an accurate count. So I have some personal experience with the Census—a very important function within the Department of Commerce. 

Second, like many other business people across the United States, I have been a 

consumer of the data and information the Department provides an a periodic basis. 

Data the Department gathers and makes public, such as the Census data, the data 

that the BEA puts out and NOAA’s reports, to name a few, are essential functions. 

I believe there is greater potential in the breadth and the depth of the data the Department provides to encourage new investment. 

Third, in terms of telecommunications, the Department auctions spectrum and 

helps bring access to broadband to communities nationwide. In some small way I 

have direct experience with broadband deployment. Before this nomination, I was 

the Vice Chair of the Utilities Undergrounding Task Force where I live in Southern 

Florida. The Task Force is eager to move to fiber optics and telecommunications to 

our community. In order to do so the Task Force had to do it in way that was not 

damaging to the Everglades. 

That brings me to NOAA. Living on the coast in Southern Florida, we are all very 

sensitive to weather because of the yearly hurricane season. So weather information 

is critical to us, like so many communities across the United States. I am also well 

aware of the importance of the fishing industry and tourism to coastal economies, 

so I am looking forward to the individual issues on those matters that fall within 

the jurisdiction of the Department of Commerce. 

And then there is trade. I’ve made my livelihood for over five decades dealing in 

international commerce. My companies have operated on the ground in some 23 

countries around the world. Sometimes those operations have progressed happily, 

sometimes a lot less happily. 

I’ve also been in the middle of complicated situations in our domestic manufacturing sector and being subjected to some of the bad trade activities of other countries, both in terms of non-tariff trade barriers that some countries impose on us 

and state subsidies of foreign exports coming into the United States. I think I’ve 

probably had more direct experience than any prior Cabinet nominee has had with 

unfair trade in the steel business, in the textile business, in the auto parts business 

9 

and other sectors. I am very well aware of the issues many companies face and I’m 

sensitive to both the issues abroad and the issues here at home. 

While I have worked with many people across many lands, the thing I’m proudest 

about in my whole career is working with Leo Gerard, the President of the United 

Steel Workers of America, and other unions in saving the American steel industry. 

Working together we were able to save thousands of jobs and ensure this important 

industry continued in the United States. 

I also understand that at the end of the day, each of our trading partners want 

access to our market. The United States should provide that access to nations who 

agree to play by our standards of fair trade. We should not put up with malicious 

trading activities, state owned enterprises, or subsidized production. 

So I am not anti-trade. I am pro trade. But I am pro sensible trade, not trade 

that is detrimental to the American worker and to the domestic manufacturing base. 

During these past few weeks, President-elect Trump has met with many business 

leaders from across many industries. I have attended many of the meetings. One 

of the meetings was with leaders from the tech industry. I was amazed how similar 

the problems they are facing, both in terms of trying to compete in foreign jurisdictions and competition coming in from abroad, are to the problems faced by more traditional industries like steel and textiles. The techniques and products of the tech 

industry are different but the nature of the adverse trade activities they face are 

very similar to those experienced by the industries I’ve worked in for many years. 

The Department serves many more functions, and I very much look forward to 

helping the American entrepreneur, the American worker, and American companies 

both big and small drive this economy forward and to create jobs. 

I want to thank my wife for supporting my decision to enter public service, and 

to thank you once again for the opportunity to be here in front of this Committee. 

If confirmed I look forward to working with you and with the many dedicated public 

servants at the Department of Commerce. 

I look forward to your questions. 

A. BIOGRAPHICAL INFORMATION

1. Name (Include any former names or nicknames used): Wilbur Louis Ross, Jr. 

2. Position to which nominated: Secretary of Commerce. 

3. Date of Nomination: November 30, 2016. 

4. Address (List current place of residence and office addresses): 

Residence: Information not released to the public. 

Office: 1166 Avenue of the Americas; 25th Floor, New York, NY 10036. 

5. Date and Place of Birth: November 28, 1937; Weehawken, NJ. 

6. Provide the name, position, and place of employment for your spouse (if married) and the names and ages of your children (including stepchildren and children 

by a previous marriage). 

Spouse: Hilary Geary Ross, Writer, Home. 

Children: Jessica Colby Ross, 55; Amanda Colby Ross, 51. 

Stepchildren: Alfred Harrison Geary II, 42; John White Geary III, 39. 

7. List all college and graduate degrees. Provide year and school attended. 

Bachelor of Arts, Yale University, 1959. 

Master of Business Administration, with distinction, Harvard University, 1961 

8. List all post-undergraduate employment, and highlight all management level 

jobs held and any non-managerial jobs that relate to the position for which you are 

nominated: 

Date Company Position 

2000 to present WL Ross & Co. LLC Chairman and Chief 

Strategy Officer 

1997–2000 Rothschild Recovery Fund Chairman, Chief 

Investment Officer 

1996–98 New Communication Inc. CEO 

10 

Date Company Position 

1976–2000 Rothschild, Inc. and its predecessor. New 

Court Securities Corp. 

Executive Managing 

Director 

1964–76 Faulkner Dawkins & Sullivan Securities 

Corp. 

President 

1964–66 Winthrop de Vegh Management Company Research Analyst 

1964–66 Wood Struthers & Winthrop Research Analyst 

1964–66 De Vegh International Corp. Vice President 

1961–63 U.S. Army Adjutant General Corps, Fort 

Benjamin Harrison & Fort Dix 

Served to First Lieutenant 

9. Attach a copy of your resume. 

Please see Attachment 1 attached. 

10. List any advisory, consultative, honorary, or other part-time service or positions with Federal, State, or local governments, other than those listed above, within the last ten years. 

Government Entity Position 

Town of Palm Beach—Board of Trustees of Retirement System Chairman 

Town of Palm Beach—Board of Trustees of Retirement System Trustee 

Town of Palm Beach—Fire Fighters Retirement Fund Trustee 

Town of Palm Beach—Utilities Underground Task Force Vice Chairman 

11. List all positions held as an officer, director, trustee, partner, proprietor, 

agent, representative, or consultant of any corporation, company, firm, partnership, 

or other business, enterprise, educational, or other institution within the last ten 

years. 

Please see Attachment 2 attached. 

12. Please list each membership you have had during the past ten years or currently held with any civic, social, charitable, educational, political, professional, fraternal, benevolent or religious organization, private club, or other membership organization. Include dates of membership and any positions you have held with any organization. Please note whether any such club or organization restricts membership 

on the basis of sex, race, color, religion, national origin, age, or handicap. 

Please see Attachment 3 attached. No such club or organization listed therein restricts membership on the basis of sex, race, color, religion, national origin, age, or 

handicap. 

13. Have you ever been a candidate for and/or held a public office (elected, nonelected, or appointed)? If so, indicate whether any campaign has any outstanding 

debet, the amount, and whether you are personally liable for that debt. 

No. 

14. Itemize all political contributions to any individual, campaign organization, 

political party, political action committee, or similar entity of $500 or more for the 

past ten years. Also list all offices you have held with, and services rendered to, a 

state or national political party or election committee during the same period. 

Please see Attachment 4 attached. 

15. List all scholarships, fellowships, honorary degrees, honorary society memberships, military medals, and any other special recognition for outstanding service or 

achievements. 

• Fifty Most Influential People in Global Finance, Bloomberg (2015) 

• Elected to Private Equity Hall of Fame 

• Elected to Turnaround Management Association Hall of Fame (2013) 

• Awarded medals by the governments of the Republic of Korea and Japan 

• Awarded Businessman of the Year by Florida Trend 

• Chairman of Marquis Who’s Who 

11 

16. Please list each book, article, column, or publication you have authored, individually or with others. Also list any speeches that you have given on topics relevant to the position for which you have been nominated. Do not attach copies of 

these publications unless otherwise instructed. 

Since entering the workforce in 1963, I have participated regularly as a speaker 

in industry and other events relevant to my professional career. Attachment 5 attached includes the speeches over the past ten years that I have been able to identify from my records and electronic searches, as well as books, articles, and other 

publications. 

17. Please identify each instance in which you have testified orally or in writing 

before Congress in a governmental or non-governmental capacity and specify the 

date and subject matter of each testimony. 

Date Committee Subject Matter 

January 30, 1990 House Committee on the Judiciary Leveraged Buyouts and 

Bankruptcy 

February 29, 1006 House Committee on Transportation 

and Infrastructure 

Reauthorization of Airport 

Improvement Act 

March 10, 2004 House Committee on Small Business Spike in Metal Prices: 

What Does it Mean for 

Small Manufacturers 

18. Given the current mission, major programs, and major operational objectives 

of the department/agency to which you have been nominated, what in your background or employment experience do you believe affirmatively qualifies you for appointment to the position for which you have been nominated, and why do you wish 

to serve in that position? 

Over the past 55 years, I have participated as an owner, lead director, or chairman of over 100 different businesses, providing me with a deep understanding of 

what makes a successful, job-creating enterprise. I have experienced first-hand both 

the power of innovative technologies to propel U.S. companies to be industry leaders, as well as the job dislocation that can result from these advancing technologies, 

especially for workers in manufacturing and natural resource industries. I am fully 

familiar with the challenges of global competition. I am particularly well-versed in 

the problems of manufacturing industries that are confronting a quickly changing 

competitive landscape—and with successful strategies for revitalizing them. I am 

proud of my contributions to help rescue failing firms in the automotive, steel, and 

textile industries. 

I have broad international business experience, some of it quite unusual and instructive. In addition to my involvement in the purchasing of failed U.S. financial 

institutions from the Federal Deposit Insurance Corporation, I have negotiated the 

acquisition of troubled financial institutions with the governments of Japan, the Republic of Korea, the United Kingdom, Ireland, Greece, and Cyprus. 

Other experiences involving public/private partnerships include my work as privatization advisor to New York Mayor Giuliani, and service on the Board of the 

U.S.-Russia Investment Fund during the administration of President Clinton. 

The opportunity to serve as Secretary of Commerce would present a welcome new 

challenge for me: How to apply the sum of my decades of experience to spark innovation and to ensure effective implementation of the Dcpm1ment’s programs in support of the great task before us: Creating strong economic growth, good jobs and, 

most importantly, a shared belief that every American will have abundant opportunities to achieve financial stability and personal happiness. 

19. What do you believe are your responsibilities, if confirmed, to ensure that the 

department/agency has proper management and accounting controls, and what experience do you have in managing a large organization? 

Based on the Inspector General’s report, the Department failed to achieve targets 

for 5 of its 24 tasks, and in some cases this failure has continued for multiple years. 

Correcting these shortfalls will be a priority. Among many other critical tasks requiring dedicated management attention will be the preparation for and implementation of an efficient and accurate 2020 Census that utilizes sophisticated technologies where possible; launching three more NOAA satellites; and shortening the 

lead time and increasing the depth and breadth of information generated by the Department’s vast number of users. As explained in my response to question 18, I believe that my management experience gained over the past 55 years involving the 

12 

most challenging business matters will enable me to lead the Department effectively. 

20. What do you believe to be the top three challenges facing the department/ 

agency, and why? 

I believe that the top three challenges facing the Department are: 

• Increasing the Department’s responsiveness to the needs of the Committee and 

the user universe; 

• Expanding U.S. exports and reducing the U.S. trade deficit; and 

• Integrating technology into the Department to improve efficiency as well as the 

timelines, depth, and breadth of data, while improving the protection of intellectual property created in this country. 

B. POTENTIAL CONFLICTS OF INTEREST

1. Describe all financial arrangements, deferred compensation agreements, and 

other continuing dealings with business associates, clients, or customers. Please include information related to retirement accounts. 

I have an Individual Retirement Account (IRA) and participate in a 40l(k) Plan. 

Please see also my response to Question E7. 

2. Do you have any commitments or agreements, formal or informal, to maintain 

employment, affiliation, or practice with any business, association or other organization during your appointment? If so, please explain. 

No. 

3. Indicate any investments, obligations, liabilities, or other relationships which 

could involve potential conflicts of interest in the position to which you have been 

nominated. 

In connection with the nomination process, I am consulting with the Office of Government Ethics and the Department of Commerce’s designated agency ethics official 

to identify any potential conflicts of interest, including any potential conflicts that 

may arise in connection with my retained investments. Any potential conflicts of interest will be resolved in accordance with the terms of an ethics agreement into 

which I will enter with the Department’s designated agency ethics official and will 

provide to this Committee. I am not aware of any potential conflicts of interest other 

than those that will be the subject of my ethics agreement. 

4. Describe any business relationship, dealing, or financial transaction which you 

have had during the last ten years, whether for yourself, on behalf of a client, or 

acting as an agent, that could in any way constitute or result in a possible conflict 

of interest in the position to which you have been nominated. 

In connection with the nomination process, I am consulting with the Office of Government Ethics and the Department of Commerce’s designated agency ethics official 

to identify any potential conflicts of interest, including any potential conflicts that 

may arise in connection with my retained investments. Any potential conflicts of interest will be resolved in accordance with the terms of an ethics agreement into 

which I will enter with the Department’s designated agency ethics official and will 

provide to this Committee. I am not aware of any potential conflicts of interest other 

than those that will be the subject of my ethics agreement. 

5. Describe any activity during the past ten years in which you have been engaged 

for the purpose of directly or indirectly influencing the passage, defeat, or modification of any legislation or affecting the administration and execution of law or public 

policy. 

I recall expressing support to Members of Congress and the Administration for 

the Car Allowance Rebate System (CARS) program, although I do not recall specific 

activities regarding that program. I do not recall any other active support during 

the past to years for other specific legislative or policy initiatives. 

6. Explain how you will resolve any potential conflict of interest, including any 

that may be disclosed by your responses to the above items. 

In connection with the nomination process, I am consulting with the Office of Government Ethics and the Department of Commerce’s designated agency ethics official 

to identify any potential conflicts of interest, including any potential conflicts that 

may arise in connection with my retained investments. Any potential conflicts of interest will be resolved in accordance with the terms of an ethics agreement into 

which I will enter with the Department’s designated agency ethics official and will 

provide to this Committee. I am not aware of any potential conflicts of interest other 

than those that will be the subject of my ethics agreement. 

13 

C. LEGAL MATTERS

1. Have you ever been disciplined or cited for a breach of ethics, professional misconduct, or retaliation by, or been the subject of a complaint to, any court, administrative agency, the Office of Special Counsel, professional association, disciplinary 

committee, or other professional group? No. 

2. Have you ever been investigated, arrested, charged, or held by any Federal, 

State, or other law enforcement authority of any Federal, State, county, or municipal entity, other than for a minor traffic offense? If so, please explain. 

Yes. In September 1991, I was stopped in Southampton, New York, for a traffic 

violation, and subsequently charged with driving while ability impaired by alcohol 

(DWAI). In November 1991, I paid a fine of approximately $400, and my license was 

suspended for 90 days. 

3. Have you or any business or nonprofit of which you are or were an officer ever 

been involved as a pm1y in an administrative agency proceeding, criminal proceeding, or civil litigation? If so, please explain. 

Yes, please see Attachment 6 attached. In addition, I have been associated with 

a number of corporations and other entities and, from time to time, such entities 

(including, in some instances, their directors, officers and employees) in the ordinary 

course, have been involved in judicial or regulatory proceedings relating to their 

businesses. 

4. Have you ever been convicted (including pleas of guilty or nolo contendere) of 

any criminal violation other than a minor traffic offense? lf so, please explain. 

Yes. Please see my answer to Question C.2, above. 

5. Have you ever been accused, formally or informally, of sexual harassment or 

discrimination on the basis of sex, race, religion, or any other basis? If so, please 

explain. No. 

6. Please advise the Committee of any additional information, favorable or unfavorable, which you feel should be disclosed in connection with your nomination. 

None to my knowledge. 

D. RELATIONSHIP WITH COMMITTEE

1. Will you ensure that your department/agency complies with deadlines for information set by congressional committees? Yes. 

2. Will you ensure that your department/agency does whatever it can to protect 

congressional witnesses and whistleblowers from reprisal for their testimony and 

disclosures? Yes. 

3. Will you cooperate in providing the Committee with requested witnesses, including technical experts and career employees, with firsthand knowledge of matters 

of interest to the Committee? Yes. 

4. Are you willing to appear and testify before any duly constituted committee of 

the Congress on such occasions as you may be reasonably requested to do so? Yes. 

ATTACHMENT ONE

Resume ́ of Wilbur L. Ross, Jr. 

Education 

U.S. Army Adjutant General Corps, Fort Benjamin Harrison and Fort Dix 

Served to First Lieutenant (1961–1963) 

Harvard University 

M.B.A., with Distinction (1961) 

Yale University 

A.B. (1959) 

St. Francis Xavier High School, New York City. NY (1951–1955) 

Public School #9, North Berger, NJ (1943–1951) 

Employment 

WL Ross & Co. LLC 

Chairman & Chief Strategy Officer (2000–Present) 

Rothschild Inc. and its predecessor, New Court Securities Corp. 

Executive Managing Director (1976–2000) 

Faulkner Dawkins & Sullivan Securities Corp. 

President (1964–1976) 

14 

Winthrop de Vegh Management Company—Research Analyst 

Wood Struthers & Winthrop—Research Analyst 

De Vegh International Corp.—Vice President (1964–1966) 

Selected Present & Past Boards of Directors 

• ArcelorMittal 

• Nexeo Solutions (Chairman) 

• International Textile Group (Chairman) 

• International Steel Group (Chairman) 

• International Auto Components (Chairman) 

• Navigator Holding (Chairman) 

• Diamond S. Shipping (Chairman) 

• Bank of Cyprus (Vice-Chairman) 

• Bank United 

• Revere Copper and Brass 

• Allis-Chalmers Corp. 

• Air Lease 

• Greenbrier 

• Bank of Ireland 

• Biocraft Labs. Inc. 

• Fur Vault Inc. 

• RH Cement 

• Fresca Credit Land Co. 

• Clarent Hospital Corp. (Chairman) 

Selected Present & Past Public Service & Non-Profit 

• Mayor Rudy Giuliani (Privatization Advisor) 

• U.S. Russia Investment Fund (Board Member) 

• Smithsonian Institution National Board (Chairman) 

• National Museum of American Art (Chairman) 

Activities 

• New York Historical Society (Chairman) 

• National Academy of Design (Chairman) 

• Brooklyn Museum (Vice Chairman) 

• Yale School of Management (Advisory Board Member) 

• Yale Beijing Center (Advisory Board Member) 

• Japan Society (Chairman) 

• Economic Studies Council Brookings Institute (Chairman) 

• Whitney Museum of American Art Institution (Trustee) 

• Brookings Institution (Trustee) 

• Yale University Council Committee on the Yale (Chairman) 

• The New Museum, New York City (Trustee) 

• Sarah Lawrence College (Trustee) 

• Smithsonian Bi-Centennial Celebration (National Chairman) 

Honors 

• Fifty Most Influential People in Global Finance, Bloomberg (2015) 

• Elected to Private Equity Hall of Fame 

• Elected to Turnaround Management Association Hall of Fame (2013) 

• Awarded medals by the governments of the Republic of Korea and Japan 

• Awarded Businessman of the Year by Florida Trend 

• Chairman of Marquis Who’s Who 

15 

ATTACHMENT TWO

11. List all positions held as an officer, director, trustee, partner, proprietor, 

agent, representative, or consultant of any corporation, company, firm, partnership, 

or other business, enterprise, educational, or other institution within the last ten 

years. 

Organization Position 

Absolute Recovery Capital Partners, LLC Managing Member 

Absolute Recovery Hedge Fund, Ltd.; Absolute Recovery Master 

Fund Ltd. 

Director 

Air Lease Corp Director 

ArcelorMittal Director 

Assured Guaranty Director 

Bank of Cyprus Director/Vice Chairman 

BankUnited FSB; Bank United, Inc. Director 

Blue Ocean Re Holdings Ltd. Director 

Brookings Economic Studies Council Director, Chairman 

Brookings Institution Trustee 

Clarent Hospital Corporation Director 

The Committee on Capital Market Regulation Inc. Director 

Compagnie Europeenne de Wagons S.a.r.l. Chairman 

Diamond S Shipping Group, Inc. Non-Executive Chairman 

Diamond S Shipping LLC Chairman 

DSS Holdings LP Director/Chairman 

El Vedado LLC Managing Member 

Exco Resources Independent Director 

First Michigan Bank/Talmer Bancorp Director 

Governor and Company of the Bank of Ireland Director 

Greenbrier Companies, Inc. Director 

Halla Cement Director 

Homeward Residential, Inc. (f/k/a American Home Mortgage 

Servicing, Inc. and AH Mortgage Acquisition Co. Inc.) 

Chairman/President 

Huaneng Invesco WLR Investment Consulting Company Ltd. Director 

IAC Asia Holdings, Inc; IACNA International, Inc.; IACNA 

Korea, Inc.; IAC Mexico Holdings, Inc.; IAC Spartanburg, Inc.; 

IAC U.S. Holdings, Inc. 

Director 

India Asset Recovery Management Limited Director 

Insuratex, Ltd. Chairman 

International Automotive Components Group, S.A. Non-Executive Chairman 

16 

Organization Position 

International Automotive Group GmbH Chairman and Director 

International Automotive Group Japan, LLC Director/Chairman 

International Automotive Group North America (Inc., LLC, and 

Holdings, Inc.) 

Chairman and Director 

International Coal Group, Inc. Non-Executive Chairman 

International Textile Group Non-Executive Chairman 

Invesco, Ltd. and its affiliates Chairman/Chief Strategy 

Officer 

Invesco Private Capital, Inc. Director 

Invesco Private Capital Investments, Inc. Director 

Invesco WLR Limited Director 

INVESCO WLR Private Equity Investment Management Ltd. Director 

Kansai Sawayaka Bank (Nippon Partners) Director 

Montpelier Re Holdings Ltd. Director 

Nano-Tex, Inc. Chairman 

Navigator Holdings Ltd. Director/Chairman 

NBNK Investments PLC Director/Chairman 

Nikko Electric Industry Co. Ltd. Director 

Nexeo Solutions (f/k/a WL Ross Holding Corp.) Chairman/Director 

OCM, Ltd. Director 

Ocwen Financial Corp. Director 

Ohizumi Manufacturing Director 

Palm Beach Retirement System Co-Chairman/Trustee 

Panther Re Holdings Ltd. Director/Deputy 

Chairman 

PB Materials Holdings, Inc. Director 

Phoenix International Holding Co. Director 

PLASCAR and its holding company Director 

Pan Ross LP Managing Member 

Ross Expansion FLP, LP General Partner 

Ross Expansion GP LLC Managing Member 

Spice Jet, Ltd. Director 

Sun BanCorp Director 

Sun National Bank Director 

Syms Corp. Director 

17 

Organization Position 

Tong Yang Life Director 

Wagon PLC Non-Executive Director 

W.L. Ross & Co., LLC Chairman/CEO 

WL Ross & Co. (India) LLC Director 

WLR Cardinal Mezzanine Fund L.P. Director 

WLR China Energy Associates, Ltd. Director 

WLR/GS (India) Limited Director 

WLR Master Co-Investment SLP GP, Ltd. Director/Chairman 

1116 South Main Street, LLC Managing Member 

781 Fifth Ave. LLC Managing Member 

ATTACHMENT THREE

12. Please list each membership you have had during the past ten years or currently held with any civic, social, charitable, educational, political, professional, fraternal, benevolent or religious organization, private club, or other membership organization. Include dates of membership and any positions you have held with any organization. Please note whether any such club or organization restricts membership 

on the basis of sex, race, color, religion, national origin, age, or handicap. 

Organization Position Dates 

American Friends of the Rene Magritte 

Museum 

President 2014 to Present 

The Beach Club Member 2004 to Present 

Blenheim Foundation USA Trustee 2008 to Present 

Briarcliff Condominium Apartment 

Building 

Director 2007 to Present 

British American Business, Inc. Director 2010 to Present 

Brookings Economic Studies Council Director, Chairman 2012 to Present 

Brookings Institution Trustee 2013 to Present 

Business Roundtable Member 2003–2014 

Century Association Member 1987–2010 

Club Collette (Palm Beach, FL) Member 2005 to Present 

Coconuts Member 2005 to Present 

Financial Analysts Federation, 

Chartered 

Chartered Financial 

Analyst 

>50 years ago to 

Present 

Harry’s Bar Member 2005 to Present 

Harvard Business School Club of New 

York, Inc. 

Director 2011 to Prescnt 

Harvard Business School Dean’s 

Advisory Board 

Director 2012–2015 

18 

Organization Position Dates 

Harvard Club of the Palm Beaches Member 2015 to Present 

Harvard University—Committee on 

University Resources 

Member 2010 to Prcsent 

The Japan Society, Inc. Director. Chairman 2005 to Present 

Kappa Beta Phi Member. Various 

Positions 

2006 to Present 

Mark’s Club Member 2005 to Present 

Mory’s Association Member 2011 to Prcsent 

Musee des Arts Decoratifs International Council 

Member 

2014 to Present 

New York Society of Security Analysts Member >35 years ago to 

Present 

Palm Beach Civic Association Executive Committee 

Member 

2006 to Present 

Palm Beach Preservation Foundation Trustee 2010 to Present 

Palm Beach Fire Fighters Retirement 

Fund 

Trustee 2008–2012 

Partnership for New York City Executive Committee 

Member 

2010 to Present 

The River Club Member 2016 to Present 

Southampton Bath and Tennis Club Chairman 2002 to Present 

U.S.-India Business Council Member, Chairman’s 

Circle 

2006–2013 

Whitney Museum of American Art Trustee 2006–2010 

Yale Club of the Palm Beaches Member 2015 to Present 

Yale University School of 

Management—Board of Advisors 

Member 2010 to Present 

5 Hertford Street Member 2013 to Present 

ATTACHMENT FOUR

14. Itemize all political contributions to any individual, campaign organization, 

political party, political action committee, or similar entity of $500 or more for the 

past ten years. Also list all offices you have held with, and services rendered to, a 

state or national political party or election committee during the same period. 

My political contributions over the past ten years are listed in the chart below. 

A separate chart, itemizing the ultimate recipients of the joint contributions listed 

below, immediately follows. 

Date Recipient Amount Notes 

1/26/2007 John S. McCain (John McCain 2008, 

Inc.) 

$4,200.00 

3/19/2007 Rudolph W. Giuliani (Rudy Giuliani 

Presidential Committee, Inc.) 

$2,300.00 

19 

Date Recipient Amount Notes 

3/19/2007 Rudolph W. Giuliani (Rudy Giuliani 

Presidential Committee, Inc.) 

$2,300.00 

3/23/2007 John S. McCain (John McCain 2008, 

Inc.) 

–$1,900.00 

2/22/2008 Rudolph W. Giuliani (Rudy Giuliani 

Presidential Committee, Inc.) 

–$2,300.00 

5/6/2008 Invesco PLC PAC $750.00 

7/30/2009 Invesco PLC PAC $750.00 

3/26/2010 Marco Rubio (Marco Rubio For President) $4,800.00 

3/29/2010 Bill Nelson (Bill Nelson For U.S. Senate) $2,400.00 

3/29/2010 Bill Nelson (Bill Nelson For U.S. Senate) $2,400.00 

3/31/2010 Marco Rubio (Marco Rubio For President) –$2,400.00 

3/31/2010 Marco Rubio (Marco Rubio For President) $2,400.00 

4/20/2010 Invesco PLC PAC $1,000.00 

5/12/2010 Investment Company Institute Political Action Committee $1,000.00 

3/26/2011 Mr. Ed Royce (Royce Campaign Committee) $2,500.00 

5/10/2011 Mr. Allen B. West (Deep Strike PAC) $2,500.00 

5/10/2011 Mr. Allen B. West (Deep Strike PAC) $2,500.00 

5/27/2011 Boehner for Speaker (FOJB–NRCC) $25,000.00 See Receipts for Joint 

Contributions Chart 

9/16/2011 National Republican Congressional 

Committee 

$5,784.89 

1/18/2012 Mitt Romney/Paul D. Ryan (Romney 

For President, Inc.) 

$2,500.00 

3/9/2012 Debbie Stabenow (Stabenow For U.S. 

Senate) 

$2,500.00 

3/9/2012 Debbie Stabenow (Stabenow For U.S. 

Senate) 

$2,500.00 

4/2/2012 Invesco PLC PAC $1,000.00 

4/3/2012 Restore Our Future, Inc. $100,000.00 

4/4/2012 Eric Cantor (Cantor for Congress) $2,500.00 

4/4/2012 Eric Cantor (Cantor for Congress) $2,500.00 

4/23/2012 Romney Victory, Inc. $50,000.00 See Receipts for Joint 

Contributions Chart 

20 

Date Recipient Amount Notes 

5/15/2012 Romney Victory, Inc. $75,800.00 See Receipts for Joint 

Contributions Chart 

5/21/2012 Romney Victory, Inc. -$35,800.00 

10/31/2012 Romney Victory, Inc. –$16,700.00 

3/8/2013 Rubio Victory Committee $10,000.00 See Receipts for Joint 

Contributions Chart 

4/23/2013 McConnell Victory Kentucky $15,000.00 See Receipts for Joint 

Contributions Chart 

5/1/2013 Boehner for Speaker $25,000.00 See Receipts for Joint 

Contributions Chart 

6/6/2013 McConnell Cornyn Leadership Victory 

Committee 

$5,000.00 See Receipts for Joint 

Contributions Chart 

12/3/2013 Elizabeth (Liz) Cheney (Cheney For 

Wyoming) 

$2,000.00 

12/18/2013 National Republic Senatorial Committee $32,400.00 

3/18/2014 Reclaim America (Marco Rubio Victory 

Committee) 

$5,000.00 

5/13/2014 Paul Ryan $5,000.00 

6/30/2014 Congressman John Conyers $1,000.00 

7/28/2014 Republican Governors Association RGA 

(Aug. 17th Event) 

$150,000.00 

8/21/2014 American Opportunity Alliance $50,000.00 

10/16/2014 Kentuckians for Strong Leadership 

(replacing his McConnell Victory Kentucky contribution) 

$10,000.00 

10/23/2014 Arkansas Victory Fund $2,600.00 See Receipts for Joint 

Contributions Chart 

11/24/2014 Senate Battleground Fund $50,000.00 See Receipts for Joint 

Contributions Chart 

12/1/2014 National Republican Senatorial Committee $23,700.00 

12/15/2014 Republican National Committee $23,700.00 

1/23/2015 Congressman Ed Royce (event) $5,000.00 

2/19/1015 Boehner for Speaker (event) $5,000.00 

2/27/2015 Blunt Toomey Joint Committee: 

Friends of Pat Toomey 

$2,500.00 

2/27/2015 Blunt Toomey Joint Committee: 

Friends of Roy Blunt 

$2,500.00 

3/25/2015 Reclaim America PAC $5,000.00 See Receipts for Joint 

Contributions Chart 

21 

Date Recipient Amount Notes 

3/25/2015 Rubio Victory Committee (Marco 

Rubio) 

$400.00 

3/31/2015 Rubio Victory Committee $10,000.00 See Receipts for Joint 

Contributions Chart 

4/13/2015 Boehner for Speaker $10,000.00 See Receipts for Joint 

Contributions Chart 

4/27/2015 Republican Governors Association $250,000.00 

5/21/2015 Republican National Committee $33,200.00 

5/21/2015 Republican National Committee $33,400.00 

6/5/2015 Boehner for Speaker, National 

Republican Congressional Committee, 

Freedom Project 

$10,000.00 

6/12/2015 Marco Rubio (Marco Rubio For 

President) 

–$2,700.00 

6/18/2015 Friends of John McCain $5,400.00 

6/30/2015 Rubio Victory Committee –$4,600.00 

7/13/2015 Boehner for Speaker $20,000.00 See Receipts for Joint 

Contributions Chart 

7/31/2015 Boehner for Speaker $5,000.00 

8/21/2015 Republican National Committee $500.00 

8/28/2015 Republican National Committee $100,000.00 

9/1/2015 Republican National Committee $50,000.00 

9/14/2015 John S. McCain {Friends Of John 

McCain, Inc.) 

$2,700.00 

11/10/2015 Friends of Jeb Hensarling $1,000.00 

11/16/2015 John A. Boehner {Friends of John 

Boehner) 

–$2,700.00 

1/15/2016 Team Ryan (Speaker Paul Ryan) 

(hosted event) 

$125,000.00 

3/21/2016 Congressman Joe Heck $5,400.00 

3/21/2016 Republican National Committee $50,000.00 

6/24/2016 Donald J. Trump for President, Inc. $5,400.00 

6/24/2016 Republican National Committee $33,400.00 

7/8/2016 Marco Rubio For Senate $5,400.00 

7/18/2016 Trump Victory $200,000.00 See Receipts for Joint 

Contributions Chart 

9/30/2016 Marco Rubio For U.S. Senate 2016 $2,700.00 

22 

Receipts for Joint Contributions 

Date Recinient Amount of 

Contribution 

5/31/2011 National Republican Congressional Committee $20,000.00 

6/9/2011 John A. Boehner (Friends Of John Boehner) $2,500.00 

6/9/2011 John A. Boehner (Friends Of John Boehner) $2,500.00 

4/23/2012 Republican National Committee $30,800.00 

4/23/2012 Mitt Romney/Paul D. Ryan {Romney for President, Inc.) 52,500.00 

7/31/2012 Idaho Republican Party $4,175.00 

7/31/2012 Massachusetts Republican Party $4,175.00 

7/31/2012 Oklahoma Leadership Council $4,175.00 

7/31/2012 Vermont Republican Federal Elections Committee $4,175.00 

9/4/2012 National Republican Congressional Committee $20,000.00 

11/2/2012 National Republican Senatorial Committee –$8,350.00 

11/2/2012 National Republican Congressional Committee –$8,350.00 

3/8/2013 Marco Rubio {Marco Rubio For President) $2,400.00 

3/8/2013 Marco Rubio (Marco Rubio For President) $2,600.00 

3/31/2013 Reclaim America PAC $5,000.00 

5/31/2013 John A. Boehner (Friends Of John Boehner) $2,600.00 

5/31/2013 John A. Boehner (Friends Of John Boehner) $2,600.00 

5/31/2013 National Republican Congressional Committee $19,800.00 

6/6/2013 John Cornyn (Texans For Senator John Cornyn, Inc.) $2,500.00 

6/30/2013 Republican Party of Kentucky $9,800.00 

6/30/2013 Mitch McConnell (McConnell Senate Committee) $2,600.00 

6/30/2013 Mitch McConnell (McConnell Senate Committee) $2,600.00 

12/1/2014 National Republican Senatorial Committee $23,700.00 

12/6/2014 William M. Cassidy (Bill Cassidy For U.S. Senate) $2,600.00 

12/15/2014 Republican National Committee $23,700.00 

3/31/2015 Marco Rubio (Marco Rubio For President) $300.00 

3/31/2015 Reclaim America PAC $5,000.00 

4/13/2015 John A. Boehner (Friends Of John Boehner) $2,700.00 

4/13/2015 John A. Boehner (Friends Of John Boehner) $2,700.00 

4/13/2015 National Republican Congressional Committee $4,600.00 

7/13/2015 National Republican Congressional Committee $20,000.00 

7/18/2016 Republican Party of Arkansas $5,545.45 

23 

Receipts for Joint Contributions—Continued 

Date Recinient Amount of 

Contribution 

7/18/2016 Republican Party of Louisiana $5,545.45 

7/18/2016 Donald J. Trump/Michael R. Pence (Donald J. Trump For 

President, Inc.) 

$2,700.00 

7/18/2016 Donald J. Trump/Michael R. Pence (Donald J. Trump For 

President, Inc.) 

$2,700.00 

7/18/2016 Mississippi Republican Party $5,545.46 

7/18/2016 West Virginia Republican Party $5,545.45 

7/18/2016 Republican Party of Virginia, Inc. $5,545.45 

7/18/2016 Republican National Committee $33,400.00 

9/27/2016 South Carolina Republican Party $5,545.45 

9/30/2016 Tennessee Republican Party Federal Election Account $5,545.45 

9/30/2016 New Jersey Republican State Committee $5,545.45 

9/30/2016 Connecticut Republican Pm1y $5,545.45 

ATTACHMENT FIVE

16. Please list each book, article, column, or publication you have authored, individually or with others. Also list any speeches that you have given on topics relevant to the position for which you have been nominated. Do not attach copies of 

these publications unless otherwise instructed. 

Speeches 

1. CalPERS Speech, January 10, 2006 

2. Detroit Auto Show, January 11, 2006 

3. Keynote Address: 6th CoalTrans Americas Conference, January 31, 2006: ‘‘Investment and Growth in Basic Industries: The Case of Coal’’ 

4. Japan Investor Conference, March 3, 2006: ‘‘Changing Political and C01porate 

Governance Landscape in Japan’’ 

5. Taiyo CalPERS Conference, March 3, 2006 

6. Hong Kong Convention & Exhibition Centre, March 28, 2006: ‘‘PRIME 

SOURCE, The Networking Event for the International Apparel Industry’’ 

7. Federal Reserve Bank of Chicago, Detroit Branch, April 18, 2006: ‘‘Prospects for 

Automotive Suppliers’’ 

8. AlixPartners Conference, Key Biscayne, Florida, April 28, 2006: ‘‘The Restructuring of American Basic Industries’’ 

9. Siguler Guff Annual Meeting, New York, New York, May 10, 2006: ‘‘What Does 

It Take for Some U.S. Industries to Survive?’’ 

10. Third Annual Conference on Distressed Investing—Europe, May 18–19,2006: 

‘‘Strategies for Restructuring Legacy Industries’’ 

11. Organization of Women in International Trade, June 7, 2006: ‘‘The Restructuring of American Basic Industries’’ 

12. JP Morgan Auto Conference, August 8, 2006: ‘‘Perspectives on the Automotive 

Supply Sector’’ 

13. OESA Conference Rationalizing the Auto Supplier Industry: Carving Out Profit from M&A Activity Detroit Marriott Pontiac at Centerpoint, Pontiac, Michigan, 

August 23, 2006: ‘‘Realizing Profit From Consolidation: Assembling A Global Interior 

Supplier’’ 

14. Original Equipment Suppliers Association Conference, Detroit Marriott Pontiac at Centerpoint, Pontiac, MI, August 23, 2006: ‘‘Rationalizing the Auto Supplier 

Industry’’ 

15. Credit Suisse Automotive Conference, September 7, 2006: ‘‘Rationalizing the 

Auto Supplier Industry’’ 

24 

16. NanoCon International—Mandalay Bay, Las Vegas, Nevada, September 20, 

2006: ‘‘Nanotechnology—Impacting Change Today’’ 

17. SAE Global Leadership Conference, The Greenbrier, West Virginia, October 

13, 2006: ‘‘Thoughts About the U.S. Auto Supply Industry’’ 

18. 20th Anniversary Dinner of the Program on International Financial Systems, 

October 19, 2006: ’’Keynote Presentation’’ 

19. Amvescap Investors Forum, November 30, 2006 

20. GAIM USA 2007, January 24, 2007: ‘‘Thoughts on Distressed Investing Today’’ 

21. 2007 Turnaround Management & Distressed Investing Forum, February 6–7, 

2007: ‘‘Thoughts on Private Equity Distressed Investing Today’’ 

22. AIM Analyst Symposium, March 6, 2007: ‘‘Are We Distressed Yet?’’ 

23. Taiyo Pacific Partners 2nd Annual Investor Conference, March 29, 2007: ‘‘Welcoming Remarks’’ 

24. Textile and Apparel Products from Vietnam, Import Monitoring Program, Public Hearing, April 24, 2007: ‘‘Prepared Testimony’’ 

25. Blue Cloud Award from the China Institute: June 11, 2007 

26. INVESCO Private Capital—Private Equity Educational Summit, New York, 

NY, June 12, 2007: ’’Value Creation Through Distressed Investing’’ 

27. 2007 Japan-U.S. Symposium, Harvard Law School, September 15, 2007: Topic 

3: Retrospective Views on 10 Years of the Symposium and of a Financial Reform in 

the Japan and the U.S. 

28. Financial Services MandA Keynote, September 25, 2007: ’’Recent tightening 

of credit markets has caused investors to wonder if this is. . .’’ 

29. The Fall Investment Management Forum for Endowments & Foundations, 

September 25, 2007: ‘‘The Future of the Credit Markets’’ 

30. INVESCO Board of Directors Meeting, October 9, 2007: ‘‘Are We Distressed 

Yet?’’ 

31. CoalTech Asia, December 3–4, 2007: ‘‘Overcoming Challenge to the Growth of 

Coal’’ 

32. 2008 Automotive News World Congress, January 22, 2008 

33. Automotive News Speech, January 2008 

34. AIM Analyst Symposium, March 5, 2008: ‘‘Are We Distressed Yet?’’ 

35. KPMG and Partnership for New York City, March 13, 2008: ‘‘India in the 21st 

Century’’ 

36. FINAL CNBC, March 31, 2008: ‘‘How We Operate’’ 

37. North Carolina Investment Forum, March 31, 2008: ‘‘Distressed Opportunities 

in the Financial Services Sector’’ 

38. Asian Venture Capital Journal, Middle East 2008: P1ivate Equity & Venture 

Forum, Emirates Palace, Abu Dhabi, April 21, 2008: ‘‘The Financial Crisis in the 

U.S.’’ 

39. DuPont, April24, 2008: ‘‘The Financial Crisis in the U.S.’’ 

40. Long Island Chapter of Turnaround Management Association, April 24, 2008: 

‘‘The Financial Crisis in the U.S.’’ 

41. GPL U.S. Financial Crisis, April 25, 2008 

42. Florida Atlantic University/Harry & Anna Trust, Video Conference, April 25, 

2008: ‘‘The Financial Crisis in the U.S.’’ 

43. Siguler Guff Annual Meeting, May 6, 2008: ’’The Financial Crisis in the U.S.’’ 

44. ABI Sub-Prime Panel, May 12, 2008: ‘‘Potential Topics’’ 

45. California Bankruptcy Forum Annual Conference, May 16, 2008: ‘‘The Financial Crisis in the U.S.’’ 

46. FRB Story AIM Trimark, California Bankruptcy Forum Annual Conference, 

May 28, 2008: ‘‘The Financial Crisis in the U.S.’’ 

47. Wards 2008 Auto Interiors Show, June 5, 2008: ‘‘The Outlook for Auto Suppliers’’ 

48. Invesco Perpetual’s Investment Summit, Henley-on-Thames, UK, July 10, 

2008: ‘‘The Implications & Opportunities of Major Economic Problems’’ 

49. August 20, 2008: ‘‘Institutional Sales’’ 

50. The United States Bankruptcy Court for the District of Delaware, 

September 11, 2008: ‘‘Delaware Bankruptcy)’’ 

51. Huaneng Signing Ceremony, September 16, 2008: ‘‘Remarks’’ 

52. Invesco Investors’ Forum 2008, Tokyo, September 18, 2008 

53. Institutional Investor 5th Annual India Forum, New York, September 23, 

2008 

54. September 2008: ‘‘CIO Statement’’ 

55. The Post, September 25, 2008 

56. Invesco Global Headquarters, October 2, 2008: ‘‘The Outlook for the Economy 

Post the TARP Bill Failure’’ 

25 

57. Minister of Coal, Government of India, October 9, 2008: ‘‘His Excellency 

Santosh Bagrodia’’ 

58. October 12, 2008: ‘‘James Doan’’ 

59. Invesco Private Capital Annual Partners Meeting, October 23, 2008 

60. November 19, 2008: ‘‘Malcolm Gladwell Intro’’ 

61. 2008: ‘‘Mike Gibbons’’ 

62. Museum of American Finance, January 21, 2009: ‘‘President Obama’s Economic Programs’’ 

63. Tuck School of Business at Dartmouth, February 6, 2009: ‘‘Private Equity’’ 

64. Taiyo’s 4th Annual Investors Conference, February 25, 2009: ‘‘Speech’’ 

65. 2009 Wharton Restructuring Conference, February 27, 2009 

66. M&A Advisor Lifetime Achievement Award Ceremony, March 16, 2009: ‘‘2009 

M&A Advisor Lifetime Achievement Award Ceremony’’ 

67. Securities Conference, March 19, 2009: ‘‘SIFMA Insurance & Risk-Linked’’ 

68. PLATTS Coal Conference videotaped, March 20, 2009 

69. Skadden Arps Restructuring Group, Apri1 21, 2009: ‘‘’Distressed Investments 

& Turnarounds in the Current Economic Environment’’ 

70. Housing Policy Council, May 6, 2009: ‘‘Keynote Address’’ 

71. Sixth Annual Distressed Investing Europe Conference, May 7, 2009: ‘‘What 

Have We Learned from this Crisis About Distressed Investing?’’ 

72. International Bar Association 15th Annual Global, May 18, 2009: ‘‘lnsolvencv 

& Restructuring Conference—Cash of the Titans Keynote Speech’’ 

73. 14th Annual NEPC Client Conference, May 20, 2009:’’Where Do We Go From 

Here?’’ 

74. International Insolvency Institute, June 1, 2009: ‘‘Keynote Address’’ 

75. The Coller Institute of Private Equity, June 4, 2009 

76. Allen & Co. LLC Sun Valley Conference, July 8, 2009: ‘‘’The State of Finance’’ 

77. AIM Investment Symposium, June 24, 2009 

78. Auto Conference Frankfurt Germany, September 17, 2009: ‘‘New Directions for 

Auto Suppliers: A Radical Industry Reconfiguration?’’ 

79. Invesco AIM Focus 2009 Investment Symposium, September 24, 2009: ‘‘Keynote Address’’ 

80. International Insolvency Institute 9th Annual Conference—New York, October 

22, 2009: ‘‘Keynote Address’’ 

81. 15th Annual ABS East Conference, October 27, 2009 

82. Goldman Sachs Alternative Investments Conference, October 29, 2009 

83. BAB Awards Dinner, November 3, 2009 

84. State Administration of Foreign Exchange 2010 Perspective, Hainan Island 

China, November 13, 2009: ’’Distressed Environment Today, Opportunities & Pitfalls’’ 

85. November 17, 2009 ‘‘Welcome Address’’ 

86. WL Ross & Co. Limited Partners’ Meeting, November 17, 2009 

87. State of South Carolina Retirement System Investment Commission Investment Retreat, November 18, 2009 

88. Town of Palm Beach United Way Business and Professional Breakfast, December 10, 2009 

89. Norton Annual Review of International Insolvency, December 15, 2009: ‘‘Keynote Address’’ 

90. Temasek Annual Offsite Speech, January 7, 2010 

91. Detroit Auto Show, January 13, 2010: ‘‘2010 Automotive News World Congress’’ 

92. 1st Annual Private Equity Symposium, January 21, 2010: ‘‘The New Private 

Equity Paradigm’’ 

93. Bank of America Merrill Lynch Auto Conference Speech, March 26, 2010 

94. Bank of America Merrill Lynch’s Inaugural New York Automotive Summit, 

March 31, 2010 

95. Australian Investor Conference, April 12, 2010 

96. Investor Conference 2010, Taiyo Pacific Partners LP, April 14, 2010: ’’Sovereign Debt Considerations for Investors in Japanese Equities’’ 

97. Reference: Greece, May 10, 2010 

98. May 11, 2010: ‘‘The Crisis Two Years Later: Opportunities in the Distressed 

& Where We Go From Here’’ 

99. HBS Honor, May 17, 2010 

100. Siguler Guff Annual Meeting, May 20, 2010 

101. Japan Society Annual Dinner, May 24, 2010 

102. Invesco Investment Symposium, May 26, 2010 

103. Invesco Investment Forum, June 8, 2010: ‘‘The Latest Crisis’’ 

26 

104. July 21, 2010: ‘‘WL Ross & Co. and Invesco Private Capital Presentation to 

the Invesco Ltd. Board of Directors’’ 

105. PFNYC Geithner Meeting, August 2, 2010 

106. KBW Insurance Conference, September 7, 2010: ‘‘Thoughts About the Mortgage Crisis’’ 

107. INVESCO Board Meeting, October 11, 2010 

108. Japan Society Board of Directors Dinner, October 20, 2010: ‘‘Remarks’’ 

109. Bank of America/Merrill Lynch 4th Annual Private Company Conference, October 28, 2010: ‘‘What’s Next’’? 

110. The Chinese Finance Association Conference, October 30, 2010: ‘‘Global Recovery and Financial Structural Changes after Crisis: Opportunities and Challenges 

for China’’ 

111. Invesco Real Estate Conference, November 3, 2010: ‘‘Distressed Investment 

Opportunities’’ 

112. 9th Annual M&A Advisor Awards & Summit, December 14, 2010: ‘‘Keynote 

& Roundtable’’ 

113. National Retirement Fund Investment Committee, December 14, 2010 

114. Automotive News World Congress, January 11, 2011: ’’National/Industrial 

Manufacturing Policy: Do we need one? How do we create and/or save jobs?’’ 

115. 2011 Leadership in the Distressed Markets Argyle Executive Forum, January 

13, 2011: ‘‘Where Are the Distressed Investment Opportunities?’’ 

116. Japan Society, January 19, 2011: ’’What’s Next for the Global Economies?’’ 

117. Tiger 21 Annual Conference, January 27, 2011: ‘‘Where Are the Distressed Investment Opportunities?’’ 

118. BankUnited Closing Dinner, February 10, 2011: ‘‘A Rhyming Thank You For 

BKU’ 

119. Atlantic Trust Client Conference, February 11, 2011: ‘‘Where Are the Distressed Investment Opportunities?’’ 

120. February 16, 2011: ‘‘An Ode to Mario’’ 

121. Palm Beach Civic Association Community Forum, February 28, 2011 

122. March 1, 2011: ’’USIBC: India’s Annual Budget Briefing’’ 

123. New York State Common Retirement Fund Investment Conference, 

March 23, 2011: ‘‘Distressed Investment Opportunities’’ 

124. Partnership For New York City China—U.S. Business Leaders Roundtable, 

April 7, 2011 

125. Siguler Guff Annual Meeting, May 17, 2011 

126. J.P. Morgan China Conference 2011, June 1, 2011 

127. Bloomberg Markets 50 Summit, September 15, 2011: ‘‘Austerity and Other 

Growth Obstacles’’ 

128. Marcum LLP, September 21, 2011: ’’Alternative Assets and the Outlook on the 

Capital Markets’’ 

129. CICC Forum Panel II, September 26, 2011 

130. September 28, 2011: ‘‘Extra Pages’’ 

131. Tokyo Nikkei Forum, October 24, 2011: ‘‘Facing Challenges with Superior 

Management Vision’’ 

132. Blenheim Foundation, October 27, 2011 

133. Marine Money 12th Annual Ship Finance Forum, November 10, 2011: ‘‘An 

Investor’s Perspective on the Shipping Industry’’ 

134. WL Ross & Co. LLC 2011 Annual Partners Meeting, November 16, 2011 

135. 17th Annual Beard Group Distressed Investing Conference, November 28, 

2011 

136. The M&A Advisor, December 12, 2011: ‘‘Deal of the Decade Awards’’ 

137. January 19, 2012: ‘‘Kappa Beta Phi Speech’’ 

138. Meeting with Bank of Ireland, January 27, 2012 

139. Meeting with NTMA Brian Murphy & National Pension Reserve Fund, January 27, 2012 

140. Daiwa Capital Markets America Luncheon, February 8, 2012: ‘‘What’s Next 

for Investors in Japan?’’ 

141. The Ireland Funds, February 16, 2012 

142. Ireland-US Council Lunch, February 17, 2012 

143. Yale SOM Leaders Forum, April 10, 2012 

144. 40 Under 40 Awards Commentary, May 1, 2012 

145. Invesco Investment Symposium, May 2, 2012 

146. NYU Economic Forum, May 10, 2012 

147. Marine Money Week, May 2012 

148. 2nd Annual American Banker M&A Symposium, May 21, 2012 

149. Siguler Guff & Company 2012 Conference, May 23, 2012: ‘‘A Tale of Two Cities: Athens & Dublin’’ 

27 

150. June 23, 2012: ‘‘Transcription of IPI Keynote Interview with Consuelo Mack’’ 

151. June 2012: ‘‘IPI Summary’’ 

152. Japan Society, June 7, 2012: ‘‘Remarks’’ 

153. Marine Money, June 20, 2012: ‘‘The Shipping Industry in 2015’’ 

154. Marine Money Singapore, September 25, 2012: ‘‘A Marine Transport Investor’s Point of View’’ 

155. Invesco U.S. Retail Client Investment Symposium, September 27, 2012 

156. Invesco Board Speech, October 7, 2012 

157. Invesco Board Meeting, October 7, 2012 

158. Japan Society Evening, January 15, 2013: ‘‘Banker to the World—Lessons 

from the Front Lines of Global Finance’’ 

159. Automotive News Congress, January 16, 2013: ‘‘Our Changing Industry’’ 

160. YPO Economic Summit V, January 18, 2013: ‘‘Keynote Speech’’ 

161. Yale SOM Leaders Forum Speakers Series, January 29, 2013: ’’A Conversation with Wilbur Ross’’ 

162. The Ireland-U.S. Council Winter Meeting, February 15, 2013: ‘‘Presentation 

to The Ireland-U.S. Council Winter Meeting’’ 

163. Worldwide Ireland Fund Leadership Forum: February 26, 2013 

164. NMS Family Office Forum, March 5, 2013; ‘‘A Look Ahead’ 

165. BritishAmerican Business CEO Roundtable, March 13, 2013: ‘‘Lessons 

Learned from Corporate Restructuring’’ 

166. The Ireland Day Pre Summit Dinner, March 14, 2013: ‘‘Outstanding Contribution to Business in Ireland’’ 

167. Ireland Day 2013 at the NYSE, March 15, 2013: ‘‘Opportunities for Ireland 

Inc.’’ 

168. Gatestone Luncheon, March 21, 2013: ‘‘How to Jumpstart the Economy’’ 

169. American Bankruptcy Institute Commission Hearing to Study Reform of 

Chapter 11, April 19, 2013 

170. Berkeley Point Annual Customer Conference, May 2, 2013: ‘‘Thoughts on 

Current Major Events Affecting Global Economies’’ 

171. May 22, 2013: ‘‘Lessons from Other Banking Crises’’ 

172. Japan Society Annual Dinner, June 3, 2013: ‘‘Chairman’s Remarks’’ 

173. June 19, 2013: ‘‘Private Equity in Shipping’’ 

174. Tokyo Speech Investment Strategies, July 18, 2013: ‘‘Our investment Strategies’’ 

175. Finance Panel Discussion Boehner for Speaker Team Retreat, August 29, 

2013 

176. RBS Credit & Asset-Backed Conference, September 5, 2013: ‘‘Opportunities 

Created by the Financial Crisis’’ 

177. Invesco Board Meeting, October 9, 2013 

178. October 18, 2013: ‘‘WLR Speech’’ 

179. Marine Money Conference, February 27, 2014: ‘‘2014 Private Equity and 

Shipping’’ 

180. Capital Link Shipping Forum Luncheon Keynote, March 20, 2014: ‘‘Private 

Equity View of Marine Transport’’ 

181. WL Ross & Co. LLC 2014 Annual Meeting, March 25, 2014: ‘‘WL Ross Organizational Changes’’ 

182. The Ben Graham Centre Value Investing Conference, April 8, 2014: ‘‘Lessons 

from the Bank of Ireland Saga’’ 

183. 15th Anniversary of Leading Brands of Spain Association, April 24, 2014: 

‘‘Competing Globally: Perspectives from a Leading Investor’’ 

184. Invesco Canada Client Event Luncheon Keynote, May 18, 2014 

185. St. George’s Society of New York, May 21, 2014: ‘‘St. George’s Medal Acceptance Speech’’ 

186. Daiwa Capital Markets Speech, May 27, 2014: ‘‘What’s Next for Investors in 

Japan?’’ 

187. Japan Society, September 10, 2014: ‘‘The Central Banks of U.S., Europe and 

Japan and Their Impact on Each Economy’’ 

188. Daiwa 50th Anniversary, September 18, 2014 

189. Quarterly Call, October 15, 2014 

190. American Irish Historical Society, November 6, 2014 

191. Marine Money, November 12, 2014 

192. December 11, 2014: ‘‘Oil-OPEC’’ 

193. The Yale CEO Leadership Summit, December 18, 2014: ‘‘Legends of Leadership Award’’ 

194. Aegon Annual Meeting, January 16, 2015 ‘‘Where Is Oil Going?’’ 

195. Palm Beach Pundits Luncheon Keynote Speech, March 2, 2015: ‘‘Income Inequality and Upward Mobility in the U.S.’’ 

28 

196. National Institute of Social Sciences, March 6, 2015: ‘‘Income Inequality and 

Upward Mobility in the U.S.’’ 

197. James Gorman Japan Society Lunch Intro, March 12, 2015 

198. Ireland Day Keynote, March 13, 2015: ‘‘The Irish Economy: Laying Foundations for Sustainability and Success’’ 

199. March 23, 2015: ‘‘Capital Link Shipping Conference Keynote Speech’’ 

200. March 23, 2015: ‘‘WL Ross Limited Partner Annual Dinner Speech’’ 

201. NY Common Videoconference, April 15, 2015 

202. Invesco Canada Client Event Keynote Speech, May 21, 2015: ‘‘The Economic 

Outlook for the U.S. Europe, Japan, China and Canada’’ 

203. June 4, 2015: ‘‘Questions for Rutgers Business School Panel’’ 

204. June 10, 2015: ‘‘Macro Environment’’ 

205. Japan Society Annual Dinner, June 11, 2015 

206. Invest Cyprus Awards, July 1, 2015 

207. The Vietnam Conference, July 1, 2015: ‘‘Why U.S. Corporate and Private Equity Investors Should Look at Vietnam Now’’ 

208. Wall Street Journal Europe, July 3, 2015: ‘‘The Lessons Greece Didn’t Learn’’ 

209. Ascension Health Meeting, July 16, 2015: ‘‘Three Complex Topics: Greece, Oil 

and China’’ 

210. BritishAmerican Business, July 20, 2015: ‘‘Is the Sovereign Debt Crisis Over?’’ 

211. NYSSA, July 27, 2015: ‘‘Greece’’ 

212. SentryWorld Badger/Gopher Roundtable, July 31, 2015: ‘‘Three Puzzles: 

Greece, Oil and China’’ 

213. August 26, 2015: ‘‘Governor Kuroda Introduction’’ 

214. August 26, 2015: ‘‘Potential Initial Questions for Governor Kuroda’’ 

215. The Future of Finance Conference, September 9, 2015: ‘‘IT and Regulatory 

Challenges and Opportunities Facing Bank Managements’’ 

216. Brookings Dinner for the President of Cyprus, September 24, 2015: ‘‘President of Cyprus Intro’’ 

217. NYSSA Annual Dinner, October 10, 2015: ‘‘NYSSA Lifetime Achievement 

Award’ 

218. JP Morgan Private Client Event, November 20, 2015 

219. 2015: ‘‘The strategic issue steel versus other materials’’ 

220. Stifel Transportation & Logistics Conference, February 9, 2016: ‘‘Keynote 

Speech’’ 

221. Foreign Policy Association, February 10, 2016: ‘‘China & Oil: Two BIG 

Issues’’ 

222. Mayor and Town Council, Palm Beach, Florida, March 30, 2016, ‘‘Pension 

Fund Presentation’’ 

223. Marriott Essex House, April 11, 2016: ‘‘Fund VI & Tactical Energy Meeting 

with Pepperdine University’’ 

224. Capital Roundtable Conference, April 14, 2016: ‘‘Capital Roundtable PE in 

Distressed Companies’’ 

225. IPI Spring Forum, May 17, 2016 

226. Market Groups Private Equity Americas Forum, May 18, 2016: ‘‘Macro Outlook on Private Equity’’ 

227. June 1, 2016: ‘‘Introduction of Brian Moynihan, BOA’’ 

228. Japan Society Annual Dinner, June 1, 2016: ‘‘Chairman Remarks’’ 

229. June 28, 2016: ‘‘Brexit and Trump’’ 

230. July 6, 2016: ‘‘How to Create 200,000 High-paying Jobs While Lowering the 

Federal Deficit by $50 Billion’’ 

231. Town Hall of Palm Beach, Florida, July 12, 2016: ‘‘Retirement Fund Information’’ 

232. July 13, 2016: ‘‘How to Fix Our Trade Policy’’ 

233. July 27, 2016: ‘‘Donald Trump’s Repatriation Solution for Infrastructure 

Funding’’ 

234. August 3, 2016 Speech 

235. August 17, 2016 Speech 

236. August 22, 2016: ‘‘Hillary’s Plan Doesn’t Work’’ 

237. August 30, 2016 Speech 

238. September 6, 2016: ‘‘Wilbur L. Ross Background Information’’ 

239. September 12, 2016 Speech 

240. China institute, September 27, 2016: ‘‘China and Trump’’ 

241. October 14, 2016 Speech 

242. October 15, 2016: ‘‘Speech for Teddy’’ 

243. 2016 IIF Annual Membership Meeting, October 3, 2016: ‘‘International 

Trade’’ 

29 

244. 2016 IIF Annual Membership Meeting, October 8, 2016; ‘‘Free Trade Agreement’’ 

245. 2016 IIF Annual Membership Meeting, October 8, 2016: ‘‘Panel Presentation 

to the institute for International Finance’’ 

246. October 13, 2016: ‘‘TPC Panel Speech’’ 

247. Real Clear Policy, October 30, 2016: ‘‘Donald Trump’s Contract with the 

American Voter’’ 

248. November 7, 2016: ‘‘Marine Money Speech (if Trump Wins)’’ 

249. November 16, 2016 

250. 2016: ‘‘Regulatory and Trade Talking Points’’ 

Books 

1. Workouts and Bankruptcy Reorganization Workshop (1986) 

2. My One Big Break, Spotlight Press (2004) 

3. 10-Year Treasury Runs Risk of 25 percent Decline (2013) 

4. Afterword: Opportunity Knocking: Lessons from Business Leaders (2014) 

Articles/Columns/Publications 

1. The Wall Street Journal Online, October 25, 2016, OPINION, 1008 words, A 

Vote for Trump Is a Vote for Growth; The Republican’s policies will create 25 million new jobs, boost incomes and generate trillions in additional tax revenues. 

2. Wall Street Journal Abstracts, October 14, 2016 Friday, A; Pg. 10, 26 words, 

TRUMP’S RIGHT: NAFTA HAS BEEN LOSER FOR US. 

3. September 29, 2016, Scoring the Trump Economic Plan: Trade, Regulatory and 

Energy Policy Impacts 

4. Washingtonpost.com, September 27, 2016 Tuesday 4:11 AM EST, Editorial; Pg. 

A19, 863 words, How Trump would boost the U.S. economy. 

5. Financial Times, August 28, 2016, Trade Imbalances 

6. Wall Street Journal Abstracts, August 26, 2016 Friday, A; Pg. 10, 32 words, 

WILBUR ROSS RESPONDS TO HIS CRITICS ON TRADE. 

7. Wall Street Journal Abstracts, August 15, 2016 Monday, A; Pg. 10, 28 words, 

MR TRUMP MAKES SOME GOOD POINTS ON TRADE. 

8. Detroit Free Press (Michigan), August 12, 2016 Friday, 1 Edition, OPINION; 

Pg. Al2, 725 words, Clinton is taking the wrong approach to trade deals. 

9. Toledo Blade (Ohio), August 2, 2016 Tuesday, FINAL Edition, PAGES OF 

OPINION; Pg. A6, 666 words, Unions won’t support Clinton’s flip-flop. 

10. Pittsburgh Post-Gazette, August 1, 2016 Monday, SOONER EDITION, EDITORIAL; Pg. A–9. 607 words. CLINTON’S BAIT-AND-SWITCH ON TRADE; WHY 

HILLARY CLINTON IS GOING TO BE A TOUGH SELL IN THE UNION HALLS. 

11. The Wall Street Journal Online, July 2, 2015, OPINION, 622 words, The Lessons Greece Didn’t Learn; If Athens had implemented reforms swiftly, it would be 

on the road to prosperity today. 

12. Welath Arabia, June 2012, How I made it. 

13. WALL STREET JOURNAL ABSTRACTS, June 25, 2009 Thursday, Section A; 

Column 4; Pg. 14, I6 words, NOTHING DARWINIAN ABOUT GM BANKRUPTCY. 

14. Avenue Magazine, April 2009, MoneyTalk. 

15. The New York Post, November 6, 2008 Thursday, All Editions; Pg. 37, 511 

words, O’S JOB NO. 1: AMERICAN JOBS. 

16. The New York Post, October 2, 2008 Thursday, All Editions; Pg. 36, 589 

words, A PLAN FOR EVERY HOMEOWNER—A FEDERAL INSURANCE 

SCHEME TO BENEFIT WALL STREET AND MAIN STREET. 

17. The New York Post, September 28, 2008 Sunday, All Editions; Pg. 35, 666 

words, PASS THE PLAN NOW! WARTS AND ALL, $700B BAILOUT IS BEST 

STEP FORWARD: ROSS. 

18. WALL STREET JOURNAL ABSTRACTS, March 10, 2008 Monday, Section A; 

Column 1; Pg. 14, 42 words, REVIEW & OUTLOOK—THE MUNI PLAY. 

19. WALL STREET JOURNAL ABSTRACTS, September 24, 2007 Monday, Section A; Column 5; Pg. 10, 37 words, IN BRIEF—ROSS OFFERS TO ACQUIRE 

MAJOR MORTGAGE SERVICE, 

20. WALL STREET JOURNAL ABSTRACTS, November 21, 2006 Tuesday, Section C; Column 5; Pg. 5, 36 words, LEAR CORP. 

21. The News & Observer (Raleigh, North Carolina), August 15, 2006 Tuesday, 

Final Edition, EDITORIAL/OPINION; Point of View; Pg. A9, 16 words, Textiles’ 

stake in trade with Vietnam. 

22. The Sunday Telegraph (LONDON), July 30, 2006 Sunday, CITY; Pg. 7, 1414 

words, ‘Here comes a bankruptcy boom’ As leveraged deals get ever larger, Wilbur 

Ross expects a rapid rise in the number of companies falling into difficulty. 

30 

23. The Wall Street Journal Asia, June 8, 2006 Thursday, Pg. 13, 827 words, Who 

Does Arcelor Belong To? 

24. The Wall Street Journal Europe, June 7, 2006 Wednesday, Business Europe; 

Pg. 12, 931 words, A Raw Deal for Shareholders. 

25. WALL STREET JOURNAL ABSTRACTS, June 7, 2006 Wednesday, Section 

A; Column 4; Pg. 14, 57 words, WHO DOES ARCELOR BELONG TO? 

26. Information Bank Abstracts, WALL STREET JOURNAL ABSTRACTS, August 12, 2003, Tuesday, Section A; Page 13, Column 1, 24 words, BUSH MUST 

STAY THE COURSE ON STEEL TARIFFS. 

27. The Bond Buyer, February 26, 1996, Monday Correction Appended, OPINION; 

Pg. 30, 726 words, Theory Aside, Privatize When the Numbers Show Consumers 

Will Benefit. 

28. The Bond Buyer, April 3, 1995, Monday, OPINION; Pg. 31, 557 words, How 

an Internal Revenue Service Rule Is Standing in the Way of Privatization. 

29. Information Bank Abstracts, WALL STREET JOURNAL, June 6, 1991, Thursday, Section A; Page 19, Column 1, 29 words, LETTERS TO THE EDITOR. 

ATTACHMENT SIX

3. Have you or any business or nonprofit of which you are or were an officer ever 

been involved as a party in an administrative agency proceeding, criminal proceeding, or civil litigation? If so, please explain. 

Following are matters of which I am aware, based on my records and an electronic search. As noted in the response to Question C.3, I also have been associated 

with a number of corporations and other entities and, from time to time, such entities (including, in some instances, their directors, officers and employees) have been 

involved, in the ordinary course, in judicial or regulatory proceedings relating to 

their businesses. 

Caption Dates(s) Filed Description Resolution 

Storper v. Ross, No. 652772/2016 

(N.Y. Sup. Ct.) 

May 23, 2016 Contract Dropped as defendant 

Lowinger v. Ross, No. 651440/2015 

(N.Y. Sup. Ct.) 

Apr. 29, 2016 Contract Discontinued 

Kramer v. Ross, No. 6470 

(Del. Chancery) 

May 11, 2011 Fiduciary duty Settled 

Lusk v. Ross, No. 603825/2005 

(N.Y. Sup. Ct.) 

Oct. 27, 2005 Contract Settled 

Ross v. Caraher, No. 18898/2003 

(N.Y. Sup. Ct.) 

Aug. 21, 2003 Zoning Remanded for 

new hearing 

Ross v. McCaughey Ross, Nos. 108031/ 

2000, 350272/1999, 350723/1998 (N.Y. 

Sup. Ct.) 

Apr. 11, 2000 

Apr. 21, 1999 

Nov. 4, 1998 

Divorce Settled/divorce 

granted 

Ross v. Ross, Nos. 128305/1995, 

300010/1993 (N.Y. Sup. Ct.) 

Nov. 29, 1995 

Jan. 5, 1993 

Divorce Divorce granted 

Ross v. Commissioner of IRS, No. 

008580–85 (U.S.T.C.) 

Apr. 1, 1986 Tax Settled 

The CHAIRMAN. Thank you, Mr. Ross. 

Before we begin our questions, I want to ask unanimous consent 

to put multiple letters of support for Mr. Ross into the record, including those from four former Secretaries of Commerce from both 

parties endorsing him for the position. 

Without objection, it’s so ordered. Thank you. 

[The information referred to follows:] 

31 


118CARLO.eps

December 19th, 2016 

The Honorable John Thune 

511 Dirltsen Senate Office Building 

United States Senate 

IV ashi ngton, DC 20510 

Dear Chaimtan Thune, 

I am writing in support of President Elect Donald Trump's U.S. Commerce secretary nominee. 

Wilbur Ross. a distinguished business leaders with vast e.xpcrience in the United States and 

around the wol'ld. 

I had the opponunity to meet and work with Mr. Ross when I was Secretary of Commerce. His 

business acumen, experience. and wisdom are unparalleled. His deep understanding of 

manufacturing will be a tremendous asset for American workers. 

If con finned. the country will be fortunate to have an American of Mr. Ross' stature serve as the 

U.S. Commerce Secretary. He will represent our country with great distinction and loyalty. 

With great pleasure I wholeheartedly support Mr. Ross's nomination for U.S. Secretary of 

Cornmerce. 

Sincerely, 

Carlos Gutierrez 

Secretary of Commerce (2005-2009)- George W. Bush 
32 


118DALEY.eps

WILLIAM M. DALEY 

December 20,2016 

Senator John Thune 

United S~11cs Scnotc SD-511 

Washington, I)C 20510 

Dcnr Mr. Chninnan. 

I am writing in suppon of Wilbur Ross to be confirmed as the next Secretary 

of Commerce. I have kno" n Mr. Ross ond have observed his business 

acumen O\er many )'Cars. lie is o pen;on of integrit) and a(.;compli!)hmcnt. I 

believe he \\ill represent the interest of the American Business Community 

and the economic interests of the American people with character and honor. 

As a fonncr Secretary. I understand the challenges 1c~ading the depanment in 

these quickly changing. ~nd challenging cx:onomic times. I believe Mr. Ross 

will do u superb job on bch•lf of the people of the United States of America. 

Sincere!). 
33 


118EVANS.eps

DONALD L. EVANS 

December 20. 2015 

Senator John Thune, Chair 

U.S. Senate Committee on Commerce, Science & Transportation 

512 Ditt<sen Senate Building 

Washington, DC 20510 

Dear Senator Thune, 

RECEIVED JI.N 0 3 lOll 

rt is a pleasure for me to highly recommend Mr. Wilbur Ross to you to serve as the 39th Secretary 

for the U.S. Department of Commerce. 

I have known Mr. Ross for over 16 years and can attest to the fact that he possesses the qualities 

that are critical to managing this unique Department and its diverse agencies. As an outstanding 

leader in the business community, he brings 'hith him a wealth of eJ<perience that is a natural fit for the Department's mission of promoting the interests of America's private sector business both 

here and abroad. 

As you know, I had the honor of serving as the 34th Secretary of Commerce, and In that capacity 

had an opportunity to meet with thousands of men and women who are running America's 

companies. hiring American workers and providing the economic engine of our country. As a 

successful entrepreneur, Mr. Ross has a keen understanding of the challenges that businesses 

of all sizes face in this compet~ive global economy, and I am conrJdent his experience will prove 

to be invaluable as Secretary of Commerce. 

Most Importantly, I know Mr. Ross as a true patriot- a man who has the besl interest of our great 

country at heart. He wilt always put America first. He wm serve as an outstanding leader as the 

next Secretary of Commerce. 
34 


118BCIU.eps

January6,2017 

The Honor-able John Thune, Chairman 

BCIU 

BUSINESS COUNCIL 

for INTERNATIONAL 

UNDERSTANDING 

The Honorable Bill Nelson, Ranking Member 

United States Senate Committee on Commerce, Science and Transportation 

512 Dlrttsen Senate Office Building 

Washington, DC 20510-6225 

Dear Chairman Thune and Ranking Member Nelson: 

I am writing In support of the nomination of Wilbur Ross to ser\le as tht> 39th Secretary of Commerce of 

the United St-ates of America. Mr. Ross has actively supported the Business Coundl of International 

Understo~~n ing's (BCIU's) mi»ion for many years by contributing through ovr acUvities his deep 

knowledge and experience in global investing to senfor U.S. and global pollcymakers. 

BC1U is a non-profit, non-partisan assoelatfon c:reated on November 10, 1955 by President Owlg.ht 0. 

Eisenhower to "inspire, encourage and assist American companies operating abroad to help create wider 

international understanding of the United States." BOU was an expression of Eisenhower's pledge in his 

first inaugural that, "We shall strive to foster everywhere, and to practice ourselves, policies that 

encourage productivity and profitable trade ... For all our own material might, even we need markets in 

the world for the surpiUSe$ of our fa rms and our factories. Equally, we need for these same farms and 

factories vital materials and products of distant lands:" 

Since its Inception, BCIU l\as been a private sector partner of the U.S. Commerce Department, and if 

confinned, I am certain that Mr. Ross will perform exemplary servi~ in driving the Department's 

instituHonal directive as a forceful achJocate for the global interests of American companies and workers. 

Mr. Ross' real world understanding of the Oepartmt!nt's mission, and his trac.k'i'ecord of leading large and 

complex organizations, uniquely pre~re him for the important respon.sibility to create jobs and stimulate 

economic growth through inward investment, increa.sed exports, and effective inter-national trade 

polides. 

Thank you for the opportunity to express my views to the Committee. Thank you for your work and 

contribution to the productive development of economic and trade policy in the United States and I urge 

your support in favor of Mr. Ross' nomination as Secretilry of Commerce. 

Sincerely. 

Peter T~ehansky 

President & C£0 

CC: Members of the Committee on Commerce, Science and Transportation 
35 


118USW.eps

UNITED STEELWORKERS 

10M leo W. Gerard 

lnlernotionol Pre$ident 

UNITY AND STRENGTH FOil WOi!KERS -----------------------

United States Senate 

Washington, D.C. 20510 

Dear Senator: 

January 9, 2017 

On behaW of the United Steelworkers (USW) representing hundreds of thousands 

of American workers, we urge you to support Wilbur Ross, Chairman and Chief Strategy 

Officer of WL Ross & Co., LLC, to serve as Secretary of the U.S. Department of 

Commerce. 

Mr. Ross has shown a deep commitment to the future of our domestic 

manufacturing sector. Many of us have seen firsthand how he has worked to keep 

production and manufacturing jobs here in the U.S. The USW worked directly with Mr. 

Ross to save thousands of jobs in the steel industry at a time of crisis. In fact, there are 

now thousands of our members in lhe steel and auto parts sectors thai are working 

because of our ability to work together to save a critical piece of America's industrial 

base. 

He knows what it takes to get the economy back on track, create jobs, and keep 

jobs from leaving the United States and build a framework so that American workers 

and companies are competitive and innovative in the 21" Century. There is much work 

to be done to restore America's manufacturing base and the good jobs it supports. As 

Secretary, Wilbur Ross will be someone who has a deep understanding of the 

challenges this v~al sector faces. 

We urge the Senate to move swiftly on his nomination and look forward to 

working w~h him to create more jobs for American workers. 

Sincerely, 

£,., t..l · )l~ 

Leo W. Gerard 

USW lntemational President 
36 


118PETER.eps

January 10,2017 

The Honorable John Thune 

Chain nan 

PET£R G. PETERSON 

Committee on Commerce, Sci(.'flCC, and Transporuuion 

512 Dirksen Senate Office Building 

Washington, DC 20510 

The Honorable Bill Nelson 

Ranking Member 

Committee on Commerce, Science, and Transportation 

425 Hart Senate Office Building 

Washington. DC 205 I 0 

Dear Chaimtan Titune and Ranking Member Nelson: 

I write in support of Wilbur Ross as our next Secretary of the United States Department of 

Commerce. 

As a former Commerce Secretary. I am confident that the Department and the nation will benefit 

greatly from Wilbur's wisdom, experience and integrity. Wilbur possesses a vast knowledge 

ba~e and extensive business expertise across multiple sectors, which wiJI serve him well in 

guiding policies that spur economic growth and create jobs. 

Importantly. Wilbur has canted a reputation as an honest negotiator who is open to all good 

ideas, and he has successfully buih relationships across the political aisle. Following in the 

tradition of former Commerce Secretaries like Don Evans, Rob<!rt Mosbacher, and Bill Daley, 

Wilbur's collaborative approach will help foster progress in areas like innovation, 

competitiveness, and widely-shared economic opponunity. 

Wilbur is an excellent choice for this critically imponant role for America's economy, and I hope 

you will give him every consideration. 

Sincerely, 

U.S. Secretary of Commerce, 1972-73 

711 f 111Ttt AVf.NOE. Ntw YOJC.K, i:"\BW YOIIK 10019 

Puo..:F.: :ll.l.541.Q2oa FAx: l.l:l.<;.U.Q:l.O'i 
37 


118MPAA.eps

January I 8, 20 I 7 

The following is a statement from Senator Chris Dodd, Chairman and 

CEO of the Motion Picture Association of America, Inc., on the 

appointment of Wilbur Ross for Secretary of Commerce. 

"The MPAA welcomes the appointment by President-elect Donald Trump of 

Wilbur Ross Jr. for Secretary of Commerce. The film and television industry is one 

of America's greatest exports and a key driver of the U.S. economy, supporting 

nearly two million jobs spanning all 50 states, more than $121 billion in wages, 

and S 16.3 billion in ex)JQrts. The Commerce Department plays a critical role in 

fostering vibrant creative industries through the lntemational Trade 

Administration's efforts to improve access to foreign markets, the United States 

Patent and Trademark Office's promotion of strong copyright policy at home and 

in trade deals, and the National Telecommunications and Information 

Administration's work to facilitate and expand legitimate digital trade. Mr. Ross 

has an impressive background in business, and his understanding of the global 

competitive marketplace will make him a strong advocate for the United States' 

economic interests. The MPAA looks forward to working with Mr. Ross and his 

Commerce Deparnnent colleagues." 

I /II 

Abouttht MPAA 

nu: lvloliou Picture A.}.)fN:imlrm of Americ:a, luc. {!11/,AA) .\l.!fl'i'$ (1.\ !he \'fJiCf! am/ Od\'(JtL'tl/1! <if the 

Amencfln motwn p1cture. home wdeo and telt!I'Mion mdusfriesjromJIS office ... m/.11s Anj{t!les 

and Wa~hmgwn, D.C. lis members mc/udt!: W<1ft DlsJu•y Swdm.ot A/(){um Plcmre.,·: P<~rammmt 

PtCIIII'f!S Corporal inn; Stmy Ptclure.f Emertai/IJJit!Jllluc.: rwenflt'lh Cemury Fox Ftlm 

Corporation: ui~·et· w/ Cuy SJudim.I.I.C: tllkl Wm·uer Hro.f. 1-:mtwammemluc. 
38 

The CHAIRMAN. And we will now turn to questions. 

Mr. Ross, according to media accounts, should you be confirmed 

as Secretary of Commerce, President-elect Trump will formally tap 

you to oversee the Nation’s trade policy, and I’m wondering what 

you might be able specifically to describe in terms of what you’ll 

be seeking to accomplish with regard to trade policy in the first 100 

days of the Trump administration. If you could hone in a little bit 

because a lot of the media reporting, specifically with regard to 

China, and also there were some stories this morning regarding 

Canada and NAFTA. So if you could talk, speak, to those issues. 

Mr. ROSS. Surely, sir. We are well aware of the legislated powers 

of the U.S. Trade Representative. And obviously, neither the President nor I is going to try to do anything that is adverse to the congressional mandate given to the U.S. Trade Rep. 

Having said that, though, we think it is good for trade policy to 

bring all of the intellectual resources that we can muster—— 

[Interruption by protestors.] 

Mr. ROSS. That was not part of my prepared remarks. 

[Laughter.] 

The CHAIRMAN. Thank you. Please proceed. 

Mr. ROSS. I was saying I think it’s important to bring all the intellectual resources and experience that we can to helping solve the 

trade issues. And, therefore, we view that there will be a collaborative process among the U.S. Trade Rep, myself, and Peter 

Navarro, the White House Director of the National Trade Council. 

We will try our best, collectively, to do what’s best for this country. 

So that’s how we visualize the interaction of those parties working. 

As to Canada and Mexico, the President-elect has made no secret 

in his public remarks, nor have I, in earlier remarks during the 

campaign that NAFTA is logically the first thing for us to deal 

with. We ought to solidify relationships in the best way we can in 

our own territory before we go off to other jurisdictions. So I think 

that should be, and hopefully will be, if I’m confirmed, a very, very 

early topic in this administration. 

The CHAIRMAN. And China? 

Mr. ROSS. China is the most protectionist country of the very 

large countries. They have both very high tariff barriers and very 

high non-tariff trade barriers to commerce. So they talk much more 

about free trade than they actually practice. We would like to 

levelize that playing field and bring the realities a bit closer to the 

rhetoric. 

The CHAIRMAN. Mr. Ross, you coauthored President-elect 

Trump’s America’s Infrastructure First plan, which is described as 

featuring a major private sector, revenue-neutral option to help finance a significant share of the Nation’s infrastructure needs. 

There is bipartisan interest in working together on infrastructure 

issues, but there are also questions about how the new administration’s plan will address infrastructure projects do not have a readily available revenue source, and that would apply to most rural 

projects. 

Could you provide some insights as to how the America’s Infrastructure First plan will address the infrastructure needs in rural 

America? 

39 

Mr. ROSS. Surely. Well, first of all, as to the plan that we wrote 

about during the campaign, that concept of the public-private partnership with tax incentives for equity investment was simply 

meant to be yet another tool because I think there are three categories of infrastructure projects. One are the ones that are simple 

to finance, where they have inherent well-documented, reliable 

source of revenue from user fees. Those don’t really need much 

more help because they have access to the tax-exempt bond market 

and to the corporate debt market. 

The third category is the trickiest one, and some of the rural activities go in that. That’s ones where it’s very hard to find a convincing source of revenue. It seems to me those will have to be subsidized by someone as part of an overall infrastructure project. 

The one in the middle is the ones that have a potential revenue 

source, but it isn’t as clearly defined that you can just do it without 

needing equity. So the purpose of the plan that we put forward, the 

public-private partnership, was to fill that second gap. So it’s not 

in place of concepts like Build America Bonds, it’s not in place of 

conventional financing, it simply was meant to provide another 

tool. And the reason I think we need another tool is the infrastructure needs of this country are so monumental that we need any 

available source of capital in order to meet it on a timely basis. 

The CHAIRMAN. Well, I would just simply say that there are a lot 

of Members of this Committee on both sides of the aisle that represent large geographic areas and would look forward to working 

with you as you shape that plan to ensure that rural areas are not 

left out of the equation. 

My time is expired, but before we turn to other Members for 

questions, I wanted to seek clarification from you, Mr. Ross, on one 

additional subject. Upon your nomination and as part of this confirmation process, it’s my understanding that you determined that 

you had hired a household employee in 2009 who presented a Social Security card, and the employee’s name along with a valid 

driver’s license, but who recently was unable to provide similar 

documentation again. 

Once you made this discovery, I understand you immediately terminated that particular household employee and informed the 

Committee. Prior to this discovery, however, you had used the Social Security Number this person provided you to pay all applicable 

taxes for this household employee from 2009 to 2016 without incident. 

I want to say, Mr. Ross, thank you for being forthcoming with 

the Committee about this particular matter, and I would ask you 

if I have explained accurately the facts, and if there is anything 

further that you would like to add about this matter at this point. 

Mr. ROSS. Those are the facts, and we did the best that we 

thought we could do in order to verify the legality of the employment, and it turned out that was incorrect. So, but we did pay all 

of the withholdings, so did that employee, and so did all the other 

employees that we’ve had. 

What happened was when I was getting ready for this hearing, 

I wanted to recheck all of our present and former employees. They 

all produced the appropriate records again, and in many cases, 

they had now advanced to the point where they’re actually citizens, 

40 

so I’m very happy with that. This one employee was unable to, and, 

therefore, was terminated. 

The CHAIRMAN. Thank you, Mr. Ross. 

Senator Nelson. 

Senator NELSON. And I think it’s important to point out that that 

wasn’t just one or two employees; you had a battery of employees 

over those years. 

Mr. ROSS. Yes, Senator, that’s correct, a dozen or so. 

Senator NELSON. I have, of course, talked to the Chairman about 

this. You were forthcoming in your questionnaire that you filled out 

for the Committee. You were a private citizen all that period of 

time, and it was only until such time that you had been named 

Commerce Secretary that you rechecked and then found out that 

one of your dozen or so employees had, in fact, deceived you. Is 

that correct? 

Mr. ROSS. Yes, it is, Senator. 

Senator NELSON. And then you immediately dismissed that employee. 

Mr. ROSS. That is correct, sir. 

Senator NELSON. And that all occurred sometime within the past 

month. 

Mr. ROSS. That is correct also. 

Senator NELSON. OK. Can you share with the Committee what 

I referred to in my opening statement about how you have bought 

and sold many businesses. You know what the critics have said. 

You know those who have said that you have been a job creator, 

praising your work. 

So could you share with us how you would characterize that part 

of your businesses? And does your record demonstrate that, as Secretary of Commerce, you’re going to be putting businesses first, and 

especially American workers first? 

Mr. ROSS. Thank you for that question, Senator. Some of the 

companies that we have been cited, International Steel Group, 

there is clearly no question whatsoever, the work that Leo Gerard, 

the head of the Steel Workers Union, and I did together, Leo believes and I believe probably saved 100,000 jobs in America. And, 

frankly, that’s the series of events I’m most proud of in my entire 

career. 

Second, there was talk in one of the press about International 

Auto Components and a couple of hundred jobs being moved to 

Mexico during a little time period. During that same time period, 

we grew net-net-net our jobs in this country to 11,000 jobs, which 

was more than a 10 percent increase from what we had before it. 

The only reason we moved a couple of workers to Mexico was our 

business is making interior parts for cars. Those are just-in-time 

deliveries, so you have to be right contiguous to the factory that 

you’re supplying, the original equipment manufacturer or factory. 

The customer of those factories that laid the people off moved to 

Mexico, so there was no longer a customer. That customer asked 

us to relocate workers to Mexico. We really didn’t have much alternative to do so because once the customer is gone, and since he insists that you be right next-door to him so that he doesn’t have to 

keep any inventory, we had no choice. But net-net IAC was an 

adder of jobs. 

41 

Similarly, International Textile Group, it is true that it had to 

reduce its workforce. It is also true we are probably the last large 

domestic manufacturer of textiles left standing with maybe one or 

two other exceptions. And subsequent to our work at ITG, their 

main union became—used its pension fund to invest in my funds. 

So, clearly, UNITE, which is the union that has organized the textile and apparel industry, felt that we did responsible things and 

that we were certainly not anti-worker. 

I think, in reality, if we hadn’t also begun some foreign operations, we would have had to shut down far more of the domestic 

activities. So I believe if you add and subtract, we have been a very 

large net creator of jobs during this whole period in the United 

States. 

Senator NELSON. Mr. Chairman, I’m going to take the prerogative to ask one more question, and I emphasized it in my opening 

remarks. 

Under the NOAA Scientific Integrity Policy, NOAA scientists do 

not need to ask for permission to share their expertise on scientific 

matters with the public or with the press. Do you support that 

right? 

Mr. ROSS. I support the dissemination of valid information to the 

public. I don’t think that valid information should be concealed. 

And in general, I have great respect for the scientific quality of 

NOAA. It’s my understanding that there are four Nobel Prize winners at NOAA, and that is certainly a measure of their expertise. 

So I think that communication of factual information and data 

is very, very important. 

Senator NELSON. Do you consider the rise of the sea level as 

valid scientific data? 

Mr. ROSS. It’s very hard for me, Senator Nelson, to parse which 

part of data is what, but in general, I think that there will be a 

very big report forthcoming from NOAA. Every three years they 

send a report to the International Climate Group. That should be 

coming out very, very shortly, and I think it will be very, very interesting to see what their updated findings are on that topic as 

well as on other topics. 

Senator NELSON. Well, Mr. Chairman, just in closing, I will point 

out that NOAA and NASA measurements over the course of the 

last 4 decades have shown in southeast Florida that the sea level 

has risen from 5 to 8 inches. That is data that should be reported 

again in this report that you’re talking about that’s coming out. 

Thank you. 

Mr. ROSS. Since you’ve asked me, sir, not to edit the report, I 

probably won’t have any control over whether they put those specific facts in or not, but I am sure they are mindful of the facts. 

The CHAIRMAN. Thank you, Senator Nelson. 

I’ve got Senator Cantwell followed by Senator Blunt followed by 

Senator Klobuchar. 

STATEMENT OF HON. MARIA CANTWELL, 

U.S. SENATOR FROM WASHINGTON 

Senator CANTWELL. Thank you, Mr. Chairman. I thought you 

were going back and forth. 

The CHAIRMAN. I am. 

42 

Senator CANTWELL. OK. Don’t leave the room. I guess that’s the 

key thing there. 

Mr. Ross, you mentioned obviously maritime issues and fisheries, and for us in the Northwest, this is big jobs—$30 billion in annual 

revenue and 148,000 direct and indirect jobs in the maritime sector. And I don’t have the information right in front of me, but your 

ethics documentation is not requiring you to divest your Diamond 

Shipping Company, which operates 33 tanker vessels and transports petroleum products of over $1.2 billion. Is that correct, you’re 

not divesting from that? 

Mr. ROSS. That is correct. The research we’ve done suggests that 

there has never been a shipping case come before the Department 

of Commerce. And in our case, the vessels are the most environmentally up-to-date vessels that you are going to find on the water. 

As you know, there are some new regulations coming in about 

ballast water and other things, but we believe that our vessels, 

even before those rules came in, have been very well brought, for 

the most part, up to snuff. So we are proud that the vessels are 

the best we can do environmentally. 

In addition, we don’t take any risk in the cargo. We simply are 

like a taxicab. They put cargo on it, we discharge it in another location, and we’re paid a fee for so doing. But I will have no involvement with the operation of the business. 

Senator CANTWELL. And I think my question—well, first of all, 

I’m sure when we get into larger infrastructure discussions, there 

will be a lot of Members of this Committee that will say, ‘‘What can 

we do to provide more shipbuilding jobs in the United States of 

America?’’ and I would think there are probably many Members of 

this panel who believe in shipbuilding in the United States and 

that there is much more to do. 

But I’m sure you remember the Exxon Valdez, and I’m sure you 

appreciate that the pristine waters all throughout the Pacific 

Northwest are of high economic value. I’m sure you get that, being 

a Floridian, there is a high economic value to the pristine coastlines of a state. 

Mr. ROSS. Sure. 

Senator CANTWELL. So my question—and I’m happy to provide 

this for you for the record, but there are many, many, many, many 

aspects of your new job that will be about the regulation of this industry: the Oil Spill Liability Trust Fund and how much shippers 

pay into that; there were obviously after the Deepwater Horizon catastrophe similar issues; and there’s the Oil Pollution Act governing our maritime liability and response. 

So I want to make sure that as these issues are discussed within 

your organization, if you’re still going to hold that position in that 

company or whether you’re going to recuse yourself from those 

issues. 

Mr. ROSS. Well, on issues—our vessels are only transoceanic vessels. We are not Jones Act participants, so we don’t do port-toport—— 

Senator CANTWELL. Do you support the Jones Act? 

Mr. ROSS. The Jones Act is a fact. I’ve been living with it. I have 

never voiced any opposition to it. It’s just not relevant to what 

we’ve been doing. 

43 

But the Jones Act has been useful in continuing U.S. shipbuilding. I think without the Jones Act, you would have even less 

U.S. shipbuilding than you have now because of the requirement 

that the intracoastal activities be Jones Act-qualified vessels and 

Jones Act-qualified crews. 

Senator CANTWELL. Well, I want to make sure that—I will get 

this to you, and you can respond in writing, but there will be times 

in which those interests will be impacted by decisions made by 

your organization. And if you would take a look at the specific 

questions and areas where you would recuse yourself in addition to 

what you’ve already done with ethics, I would so appreciate this. 

Mr. ROSS. Oh, I intend to be quite scrupulous about recusal and 

any topic where there is the slightest scintilla of doubt. 

Senator CANTWELL. Thank you. Well, we’ll get back to you. I 

have a few minutes, a few seconds left. The President-elect’s administration is trying to bring in a lot of private sector experience. 

I appreciate private sector experience, but oftentimes that experience is about answering to shareholders and other special interests. 

This is about answering to the public interest. And as it regards 

the huge issues we have on pensions, you know, we’ve had so many 

things that have happened in these last several years of our economy where people have been able to come in, reap the assets of 

companies and organizations, and then leave the Federal Government or the workers with the liability. 

Do you support shoring up the miners’ pension multiemployer 

program, and do you support shoring up the PBGC? 

Mr. ROSS. Well, let me talk about the pension situation in general. What happens in bankruptcy court is that the debtor, not the 

potential buyer, but the debtor itself, has the burden of proving to 

the court that it is not reorganizable without dealing with the pension and retiree health liabilities. The court makes that determination. In every case where we’ve bought and where the pension plan 

was terminated, that decision had been made by the court prior to 

our advent on the scene. So the idea that we terminated anybody’s 

pension plan is simply false. 

Senator CANTWELL. I’m not asking that. And I’m out of time. We 

can come back to this in round two, but I want to know now, when 

wearing that hat, you know, as Commerce Secretary, I want to 

know what your viewpoint is from the worker perspective and 

whether you support shoring up that aspect of the pension program? 

And since I’m out of time, Mr. Chair, we can go to round two or 

we can get a written answer on those questions. 

Mr. ROSS. Should I answer the question, sir? 

The CHAIRMAN. Well, if—can you be very, very brief? 

Mr. ROSS. I will. I’m quite familiar with the Pension Benefit 

Guaranty Corp, and, as you know, we—Commerce has a board seat 

on PBGC. They are the insurer of last resort. I think they need to 

be even more scrupulous about risk-based pricing so that they 

themselves don’t run out of money as further pension obligations 

find their way to them. 

The CHAIRMAN. Thank you, Senator Cantwell. 

Senator Blunt. 

44 

STATEMENT OF HON. ROY BLUNT, 

U.S. SENATOR FROM MISSOURI 

Senator BLUNT. Thank you, Chairman. 

And thank you, Mr. Ross, for being here, for being willing to 

serve. And I look forward to your leadership at Commerce and 

what I think, from everything I read, would be an expanded role 

beyond Commerce because of the President-elect’s confidence in 

you. 

On the infrastructure side, we had Secretary Chao, former Secretary of Labor, and I suspect the future Secretary of Transportation, in the other day, and one of the questions I asked her was 

about the importance of better intermodal strategy for transportation. 

I live in Missouri. The Mississippi River is there, the Missouri 

River flows into the Mississippi, but across the—we are really at 

the water nexus of the country, but also the rail and highway 

nexus of the country. I’m sure all of those need to work together 

even better for us to have the competitive potential we need. And 

I would like you to talk just a little bit about your sense of how 

we look at those more interrelated transportation systems. 

Mr. ROSS. Well, as you know, we have been in the railcar manufacturing business for quite a long time, and one of our major products were the types of cars that were best suited to intermodal because there’s a role for truck, there’s a role for barges, there’s a role 

for rail. 

And I think people keep trying, and will eventually succeed, at 

finding new and better ways to facilitate those transfers from one 

mode of transportation to another. I think that’s a very, very vital 

thing for this country because for many industries, transportation 

cost is as much as 20 percent of their total cost. So anything that 

can be done to facilitate transportation will help the economy just 

in and of itself, let alone infrastructure spending has a very high 

labor content, generally around 44 percent. So it’s a very good way 

to provide high-paying jobs to ordinary people. 

Senator BLUNT. And if I understood your three-level matrix of 

how you finance, one was things that have an obvious and easyto-understand financing component that have access to the credit 

world because of that; another may have some components, like a 

rural cable, that could pay part of the bill, but not all of the bill; 

but then in the middle, you had that greater category of things 

that just can’t happen without a partnership. 

Would you give me an idea both of what one of those might be 

and what the private sector opportunity that we’re not seeing or 

not using effectively could be as we look down the road? 

Mr. ROSS. Yes, sir. I think we’re fortunate to be coming to grips 

with infrastructure in a relatively low-interest-rate environment 

because that will facilitate getting a lot of projects done that could 

not be done in a lower interest rate environment because there 

would be a crowding out effect. 

But even so, there will be, in many cases, a need either for the 

public policy decision to have government play a direct role or for 

a way to encourage private sector to participate. 

45 

So I think it won’t be one size fits all. It’s a very large and every 

complex problem, and it needs very large, very inventive, and complex solutions. 

Senator BLUNT. And you’re also proposing that as you look at infrastructure, that we’re making a greater effort to incorporate new 

technologies into that infrastructure? 

Mr. ROSS. Yes, sir. And that’s a lot of what we’re doing in Florida 

right now. It’s not just to get away from the hurricanes, we’re also 

building in extra conduit beyond even the optical fiber that we’re 

putting in, in the first instance to allow for potential developments 

in the future because it’s a lot easier to lay the second or third conduit at the same time than it would be to have to close that up and 

then come back 5 years from now. So we’ve been trying to get a 

little bit ahead of the game. And in that particular case, it’s being 

financed by tax-exempt bonds. 

Senator BLUNT. So Senator Klobuchar and I have been particularly involved in the travel and tourism issues, thinking that is 

often described as the low-hanging fruit in the economy, particularly foreign travel to our country. The current Secretary has been 

very interested in that; it’s part of the portfolio of Commerce. 

Would you talk just a little bit about that and how it impacts the 

economy? 

Mr. ROSS. Surely. First of all, having been involved—I worked 

with the labor unions and the Pan American World Airways bankruptcy. I was their financial adviser. I was bondholder adviser in 

TWA, preferred stock adviser in Eastern. So I’m pretty familiar 

with the airline industry, and actually had been on the board of 

Wien Airlines up in Alaska for quite a while. 

I’m a big proponent of the Open Skies policy. I think that’s an 

important thing. I think developing tourism is extremely important. And I think something like a ninth of all the jobs in this 

country are one way or another dependent on tourism. So it is a 

powerful economic factor, and it is one of the segments of Commerce Department that I will certainly be paying attention to, if 

confirmed. 

Senator BLUNT. And I’ll just say in closing, Mr. Chairman, and, 

too, Mr. Ross, it’s also an area where we’ve got a very active publicprivate effort going on right now to encourage people to discover 

America. 

So thank you, Chairman. 

The CHAIRMAN. Thank you, Senator Blunt. 

Senator Klobuchar. 

STATEMENT OF HON. AMY KLOBUCHAR, 

U.S. SENATOR FROM MINNESOTA 

Senator KLOBUCHAR. Thank you very much. 

Congratulations on your nomination, Mr. Ross. 

Mr. ROSS. Thank you. 

Senator KLOBUCHAR. And thank you, Senator Blunt, for asking 

those important tourism questions. Of course, Senator Blunt and I 

won’t ask you if you think the Mall of America in Bloomington or 

Branson, Missouri, are better places to visit than Florida, but I 

think one of our reasons in taking this on is there is tourism all 

across America that’s very important. 

46 

I want to lead with something you and I discussed, and that is 

iron ore and steel. My state, as you know, is one of the leading producers of iron ore. It’s in my family. My grandpa worked as an iron 

ore miner 1,500 feet underground most of his life. We’ve had an incredible downturn due in part to overcapacity, but also due to steel 

dumping that is illegal. And recently there have been some good 

actions taken by the Commerce Department. Congress has given 

more funds, which has been helpful. And we’ve seen a bit of improvement. 

And I wonder if you could address how you would build on this 

work and improve it even more for our hard-working miners and 

people in the steel industry. 

Mr. ROSS. Well, sure. As you can appreciate, I probably have 

greater familiarity with mining than most people up for this position. 

The fundamental problem with the steel industry is overcapacity, 

particularly in China. China has 1 billion tons of capacity. That’s 

half of the world’s capacity. They need something like 700 million 

tons domestically. They’re actually producing 800 million tons and 

putting 100 million tons out into the world markets often at dumping prices. And so I think one of the things where we do need very 

careful attention to more tariff activity is the anti-dumping requirements that we should impose on the steel industry and on the aluminum industry as well. 

That’s a very big issue, and unfortunately until fairly recently, 

Europe was even more reticent to impose countervailing duties 

than we are, but finally they seem to be feeling the pinch of it, and 

they’re starting to come around as well. 

Senator KLOBUCHAR. Right. As you know, they just launched the 

Global Forum on Steel Excess Capacity in Berlin in December. So 

I assume you will be willing to work with our allies on that. 

Mr. ROSS. Oh, absolutely. I know many of them anyway because 

Arcelor had been very active throughout Europe. 

Senator KLOBUCHAR. OK. Thank you. And will you work with 

our Customs and Border Patrol? You and I discussed the issue of 

these shipments coming in with illegal steel. 

Mr. ROSS. Yes. One of the things that horrified me as I studied 

enforcement is there are literally billions of dollars of countervailing duties that are never collected because the foreigners set up 

little shell companies here, we impose a duty, there’s nobody home 

when we come time to collect. I think that kind of thing has to be 

fixed. There’s not much point going through a multiyear trade case, 

if then, in case you win, you don’t even collect the countervailing 

duties. That doesn’t change anybody’s behavior, and it’s a loss of 

revenue to the Federal Government. 

Senator KLOBUCHAR. Thank you. And I appreciate that. I think 

that’s one of the reasons you just got the Steelworkers support 

from Leo Gerard in a letter dated January 9. 

The last thing I wanted to ask you about was Cuba. I lead the 

battle to lift the embargo. I know that it’s an issue in Florida on 

both sides, and we, of course, have Republican support on this bill 

as well. My view is 50-plus years of a failed policy is enough. 

What’s your position on ending the embargo? 

47 

And then also a second related question deals with the rollbacks. 

How do you think we should be rolling back any of the existing opportunities for American air carriers’ businesses that have come 

about because of President Obama’s executive orders, because a lot 

of these businesses in America are making plans. We have 1.5 million visitors now forecasted from our country a year. 

Mr. ROSS. Well, I must make a confession, I’ve never been in 

Cuba, so I have no firsthand knowledge. I do have quite a number 

of Cuban American friends in Florida, and I notice that it’s a sufficiently complex issue that even within individual families there are 

people who disagree about what should be done. So this is one area 

I would like to become much more educated in as time goes. 

I am aware that Starwood and some other hotel people have already made some deals for Cuba, so there seems to be a lot of interest on the part of American companies in doing business there, 

but I don’t feel I am expert enough in that right now to have a firm 

view. 

Senator KLOBUCHAR. All right. Well, we look forward to talking 

with you about that. I will put in the record some questions about 

broadband, the Dig Once proposal we have so that when people are 

digging for utilities we make sure we lay fiber for broadband, and 

also about the importance of the foreign commercial service, and, 

finally, softwood lumber. But we can leave that for the written 

questions. 

Thank you very much. 

Mr. ROSS. Thank you, Senator. 

The CHAIRMAN. Thank you, Senator Klobuchar. 

Senator Sullivan. 

STATEMENT OF HON. DAN SULLIVAN, 

U.S. SENATOR FROM ALASKA 

Senator SULLIVAN. Thank you, Mr. Chairman. 

And, Mr. Ross, welcome. I appreciate your willingness to serve 

and your previous service to our country. And you and I talked 

about it in our meeting before this hearing, but I had an opportunity to have a front-row seat in some ways working at the National Security Council staff at the White House on economic issues 

on what happened with the steel industry and what you were able 

to do, and I think that’s something that is an important and positive part of your record. And I know that there are thousands and 

thousands of steelworkers who appreciated that. 

We also had the opportunity to talk about that to me, one of the 

most important issues that we can face as a Nation right now, and 

that’s the issue of economic growth. And as you know, over the last 

10 years, we’ve had a lost decade of economic growth. President 

Obama is going to be the first President never to hit 3 percent GDP 

growth ever in a year, almost never hit it in a quarter. And so the 

Obama administration has now said, well, that’s the new normal, 

we shouldn’t expect to hit traditional levels of American growth, 

3.5, 4 percent, 4.5 percent. 

Do you agree with that, that the new normal is something that 

we’re achieving our full maximum potential as an American economy at 1.5, 2 percent growth, the numbers over the last 10 years, 

48 

or can we get back to traditional levels of American growth? And 

if so, how do we do that? 

Mr. ROSS. I think we can. During the campaign, I characterized 

the 1.5, 2 percent, not as the new normal, but as the new dismal. 

I don’t think we need to have the new dismal—— 

Senator SULLIVAN. So you think the narrative that’s very pervasive in Washington, D.C., that the new normal is here to stay, this 

is what we should achieve, this is what we should expect. I think 

it’s a surrender. So you disagree with that. 

Mr. ROSS. I’m pretty sure that if that proves true, you won’t be 

seeing me much longer because the President-elect won’t put up 

with it. 

Senator SULLIVAN. So how do we get to traditional levels of 

American growth, 3.5, 4 percent, 4.5 percent? Which, by the way, 

Democrat and Republican administrations have achieved this. 

Mr. ROSS. Right. 

Senator SULLIVAN. This has been the—that’s the new—that’s the 

normal for America. 

Mr. ROSS. Well, I think—I wrote an editorial with Peter Navarro 

that outlined four planks to the economic policy. One was regulatory reform. I’m not against all regulations, obviously, but I do 

think that pendulum perhaps has swung a bit further than it 

should. And I believe the President will roll back some of the regulations. I don’t know which ones, but I think he’ll roll back some. 

And that’s one of the most frequent complaints I hear from the 

business community, is about overregulation. 

Second is the energy policy, both making us closer to being energy self-sufficient because we still are a net importer of energy, 

and however you look at it, that’s a drain on the economy. 

Third is what we’ve been talking about before, helping our balance of trade, particularly by increasing the exports. I think if we 

combine each of those and just get a fraction of a percent more 

growth from each, we’ll get to the kinds of numbers that you were 

talking about. 

And last, of course, being the infrastructure. We desperately 

need infrastructure, not only because of the direct jobs it creates, 

but inefficient and archaic infrastructure is itself a drain on the 

economy, the grid. All kinds of things have to be fixed if we’re 

going to be a truly competitive economy. 

Senator SULLIVAN. Thank you. And we want to work with you on 

those four elements of getting back to the traditional levels of 

American growth. 

I want to talk next—and I appreciate you highlighting the issue 

of fisheries and their importance to coastal communities. You 

know, in my state of Alaska, employment in the fishing industry 

is actually bigger than even in the oil and gas industry. So healthy 

coastal communities, a well-managed sustainable fishery—our fishery is considered probably the most well-managed sustainable fishery on the planet—is very important. 

I have the honor of chairing the Subcommittee on Oceans and 

Fisheries and the Coast Guard on this Committee. So I just want 

to get your commitment that, as you know, a big part of the Commerce Department is NOAA, is fisheries, is focusing on that data 

to keep our fisheries well managed. 

49 

I just want to get your commitment to working with this Committee, working with me, working with the Subcommittee, on those 

important issues for the country, for my state, and also on some 

of the personnel decisions that you’ll be making, that the Administration will be making, on having the best people who understand 

fisheries, understand Alaska. You know, I like to say we’re the superpower of seafood. Almost 60 percent of all seafood harvested in 

the United States comes from Alaska’s waters. So if confirmed, I 

would like to get your commitment to working closely with us on 

those important issues. 

Mr. ROSS. Well, you certainly have it. And I am very mindful of 

the discussion we had about king crabs coming in from Russia as 

part of our trade problem. And I assure you that, too, will be something I’ll look into if confirmed. 

Senator SULLIVAN. Thank you. 

Thank you, Mr. Chairman. 

The CHAIRMAN. Thank you, Senator Sullivan. 

Senator Blumenthal. 

STATEMENT OF HON. RICHARD BLUMENTHAL, 

U.S. SENATOR FROM CONNECTICUT 

Senator BLUMENTHAL. Thanks, Mr. Chairman. 

Welcome to the Committee, and thank you for being willing to 

serve, Mr. Ross. 

Let me begin where my colleague Senator Sullivan finished. On 

the issue of fisheries, as you know, you have very substantial authority under your emergency powers to correct for inequities and 

overfishing. I would like a commitment that you will consider using 

those emergency powers to address the flow of certain fish stocks, 

which you and I have discussed, from the middle Atlantic states to 

the New England states without the authority to fish at sufficient 

quotas for the fishermen of New England. 

Mr. ROSS. Right. Well, I do remember very clearly our conversation. And I think it will be important to make sure that quotas are 

allocated properly. I’ll need to do research to follow up on the indications you gave me in order to figure out exactly where I come out 

on exact details. 

Senator BLUMENTHAL. This system is broken. It is broken from 

an environmental and an economic standpoint. It’s costing jobs, 

and it is preventing the United States from using its fish stocks, 

and instead, as you and I discussed, has resulted in importing—— 

Mr. ROSS. Right. Well—— 

Senator BLUMENTHAL.—which destroys livelihoods and economic 

well-being in the New England states, and I would like your commitment that you will work with me to use your emergency powers, 

but also to support legislative reform. 

Mr. ROSS. I’m very interested in helping balance the payments. 

I’m very interested in helping the fisheries. So I look forward to 

seeing the details of the suggested legislation. 

Senator BLUMENTHAL. And I want to welcome your modification, 

I’ll put it somewhat delicately, of the plan that you and Mr. 

Navarro submitted, or your clarification of it, to permit other authorities like an infrastructure bank and a public financing authority, which I think are key to the public side of investment. And 

50 

there has to be a robust public investment in our infrastructure, 

taking advantage of the low-interest environment as you very correctly suggested. 

Mr. ROSS. Yes, I think we’re very fortunate, Senator, that it is 

a low-interest rate environment where we’re trying to solve this 

problem. If it were a very high-interest rate environment, the problem would be two or three times as hard to solve. 

Senator BLUMENTHAL. Let me focus on another area where I 

think you have really made a very personal sacrifice. Your service 

has resulted in your divesting yourself of literally hundreds of millions of dollars in assets so that you could reach an agreement with 

the Office of Government Ethics. I don’t want to embarrass you or 

presume, but obviously of all of the billions of dollars in holdings 

that you own now, you have divested more than 90 percent, and 

you have resigned from 50 positions. The process has been enormously complex and challenging and costly to you personally; correct? 

Mr. ROSS. Yes, sir. 

Senator BLUMENTHAL. And I want to ask you very directly, 

shouldn’t the President of the United States do the same? 

Mr. ROSS. Well, as I understand it, the ethics rules that apply 

to Senate-approved nominees do not apply to the President. 

Senator BLUMENTHAL. But simply as a matter of appearance and 

morality for that matter, you were able to do it. Why not the President? 

Mr. ROSS. I’m not familiar enough, Senator, with the exactitudes 

of his holdings to have any judgment as to how easy or hard it 

would be to do it. 

Senator BLUMENTHAL. You did it to avoid any conflicts of interest; correct? 

Mr. ROSS. That is correct, sir. 

Senator BLUMENTHAL. You may head an agency that will have 

direct authority that potentially could impact very seriously the 

President’s financial well-being; correct? You had, for example, the 

Patent and Trademark Office. 

Mr. ROSS. Yes, sir. 

Senator BLUMENTHAL. The President’s organization has eight 

pending applications for new trademarks. His trademarks for hotel, 

clothing, and real estate, could well come before the Trademark 

Trial and Appeal Board. You appoint that Board; correct? 

Mr. ROSS. Well, I had a discussion yesterday morning with the 

current head of the U.S. Patent and Trademark Office, and I asked 

her how she was feeling with the matters relating to her former relationship with Google, and she outlined what I thought was a very 

thorough process for recusal and determining recusal, and I would 

intend to emulate the standard that she has set. 

Senator BLUMENTHAL. But there is no way to avoid a conflict of 

interest when the one with that interest is the President of the 

United States. He is your boss; he’s her boss; he is the one who 

presides over the entire United States Government, and you appoint the judges who will sit on that Appeals Board; correct? 

Mr. ROSS. That is correct. 

Senator BLUMENTHAL. And so I would respectfully suggest that 

that conflict of interest is inevitable so long as the President of the 

51 

United States refuses to divest himself. Creating the trust as he 

has done is no substitute for complete divestiture. I realize you 

can’t order him to do so, but you will be in effect put in a very difficult, if not impossible, position as the Secretary of Commerce, 

who has appointing authority and ultimately approval authority 

over the Patent and Trademark Office. 

Mr. ROSS. Well, I am quite sure everyone will be watching all of 

those matters, and, therefore, they will certainly be subject to public scrutiny. 

Senator BLUMENTHAL. My time is expired. Thank you, Mr. Chairman. 

The CHAIRMAN. Thank you, Senator Blumenthal. 

Senator Heller. 

STATEMENT OF HON. DEAN HELLER, 

U.S. SENATOR FROM NEVADA 

Senator HELLER. Mr. Chairman, thank you. 

And, Mr. Ross, congratulations to you and to Hilary and to any 

family member that may be here or may be watching today’s hearing. I’m grateful that you’re here, and I’m grateful that you are 

willing to take this upon yourself. 

The article that you referred to, based on the questioning from 

Mr. Sullivan, that you wrote on your four platforms for economic 

growth, you mentioned regulatory reform. And I thought about that 

a little bit. You said you weren’t sure where the President might 

be on regulatory reform or what he’s going to do the first days of 

office. 

Not knowing that, what would you recommend to him, with your 

background and experience, that would help immediately in regulatory reform? 

Mr. ROSS. Well, I think what we ought to do is to try to deal with 

things that really inhibit business and yet aren’t all that important, a kind of cost-benefit analysis. The part of the CBO that reviews regulations is a very small department, I think it has fewer 

than 50 employees, so many, many new things that have been put 

in have never had a cost-benefit analysis. I think the majority of 

them, in fact, have not. It would be very useful to conduct that 

kind of analysis as part of the process for determining which things 

should be rolled back and which should be preserved. 

Senator HELLER. So you don’t have any specific recommendation 

at this point? 

Mr. ROSS. At this point, no. The President has not asked me for 

specific recommendations. 

Senator HELLER. I appreciate your comments, though, on costbenefit analysis. I’ve been arguing for that since I’ve been here in 

Congress, that any new regulation that comes out of this Committee or any other committee should have to be run through some 

cost-benefit analysis in order to be assured that it isn’t costing 

more than the benefits of that particular regulation. 

Let’s go down to the balance of trade. You mentioned in your four 

steps also. What’s your process, thought process, here on increasing 

trade? 

Mr. ROSS. A couple of things. One, in general, I think it’s easier 

and quicker to negotiate bilateral agreements than it is multilatVerDate Nov 24 2008 09:55 Jul 10, 2017 Jkt 075679 PO 00000 Frm 00055 Fmt 6633 Sfmt 6601 S:\GPO\DOCS\25974.TXT JACKIE
52 

eral. And my concerns about the multilaterals are not that there 

is anything inherently wrong with them, but as somebody who has 

negotiated a lot of transactions, I can tell you the more complex the 

environment within which you’re negotiating, the less likely you 

are to get to a sensible result because what really happens is several things. 

Say you’re negotiating with 12 different countries. You go to the 

first one and you want some concession from them. They say, ‘‘Yes, 

we’ll give you that concession, but we want something back.’’ So 

that takes a little nick out of us. Then you go to the next country 

and you negotiate with them, they take a little nick. You keep 

doing that 12 times, you get a lot of nicks, and what happens is 

the other countries get the benefit of things they didn’t even ask 

for because you had to give them to someone else. So I think that’s 

a fundamental concern. 

Second—— 

Senator HELLER. Mr. Ross, I hate to cut you off because I don’t 

have a lot of time, but am I to take from that that you weren’t impressed with TPP? 

Mr. ROSS. Initially, when I read the first press reports of TPP 

was very favorable toward it. As I delved into the thousands of 

pages of document, I came across some things that I felt were not 

consistent with what had been advertised. 

I’ll give you a couple of examples. One is the concept of TPP was 

to build a wall around the countries that were participants, but in 

automotive, for example, they permit more than 60 percent of the 

content of a car to come from outside TPP and yet have all the tariff benefits. That didn’t strike me as the world’s best idea, particularly from the point of view of protecting the automotive industry 

because in automotive, about 70 percent of the jobs are in the parts 

suppliers, not in the OEs. So—— 

Senator HELLER. Again, sorry to cut you off, but I only have a 

couple seconds. 

Mr. ROSS. I’m sorry. 

Senator HELLER. Would that argument be that you would then 

oppose a 35 percent tariff, as the President-elect has proposed, on 

foreign cars? 

Mr. ROSS. I think that it’s a complicated issue whether you 

should have one flat tariff on everything or whether it should be 

more tailored to the individual situations, and—— 

Senator HELLER. Do you support tariffs? 

Mr. ROSS. I think tariffs play a role both as a negotiating tool 

and, if necessary, to punish offenders who don’t play by the rules. 

Senator HELLER. Mr. Chairman, my time has run out. Thank 

you. 

The CHAIRMAN. Thank you, Senator Heller. 

Senator Wicker has returned. He’s up next. 

STATEMENT OF HON. ROGER F. WICKER, 

U.S. SENATOR FROM MISSISSIPPI 

Senator WICKER. Thank you very much. 

Mr. Ross, there has been a lot of talk about outsourcing. 

Mr. ROSS. About? 

Senator WICKER. About outsourcing of jobs. 

53 

Mr. ROSS. Yes, sir. 

Senator WICKER. And we need to continue talking about that. 

But the other side of that is insourcing, and I can just tell you that 

in my state of Mississippi, we’re tickled to death to have Toyota, 

Nissan, Airbus, Yokohama Tire, building things for the rest of the 

world and employing Americans right there in Mississippi. 

Of course, our states have a lot to do with recruiting these industries, but can you highlight for us your ideas about how to have 

more of this? As we try to combat outsourcing of American jobs to 

other countries, how can we insource companies like Nissan and 

Toyota and Airbus? 

Mr. ROSS. Sure. I think the best incentive for foreign companies 

to come here is, first of all, we’re the world’s largest markets, and 

so that’s a big encouragement, but if we lowered the corporate tax 

rate, it will be a further inducement for them to come. 

Right now, we’re not competitive in terms of our marginal tax 

rate with many other countries against whom we compete. Take, 

for example, Mexico; the corporate tax rate there is about half what 

it is in our country, and that’s true in many of the other countries. 

So I think if we can become more competitive in the tax rate, it 

would be a very good thing not only for keeping American companies staying here, but also for encouraging foreign companies to 

come here. So I think that’s probably the biggest single tool that 

we could use. 

Senator WICKER. OK. That’s the biggest single tool. You’re free 

to give other suggestions. 

Mr. ROSS. Oh, surely. I think some degree of deregulation would 

also be very, very helpful. And if we can use an energy policy that 

keeps energy costs low, that would be very, very powerful as well. 

So I’m much more in favor of carrots than of sticks. 

Senator WICKER. With regard to a 21st century tax structure 

that puts us more in line with the modern day and gets us out of 

1986, are you involved in those discussions at the transition level? 

And will you be part of writing the administration’s tax proposal? 

Mr. ROSS. I believe the President will be listening to some suggestions from me, but he has a whole apparatus on tax that’s quite 

independent of me. But because tax is so important to commerce, 

I hope that he will have some consultation with me. 

Senator WICKER. Well, I think based on your answer to the previous question, the President-elect would be well advised to listen 

to you. 

You’ve had a lot to say about infrastructure, and let me just tell 

you, I hope I’m able to assist the Trump administration in supporting an infrastructure program for the United States of America. Infrastructure includes roads, bridges, highways, rail. Do you 

consider the buildout of broadband to be part of infrastructure? 

And should it be part of the Trump administration’s infrastructure 

plan? 

Mr. ROSS. I think broadband is an essential part. Broadband is, 

to a very large degree, a path to the future, and I think, therefore, 

it’s a very essential component of economic policy altogether, including the infrastructure component. 

Senator WICKER. All right. And you’re going to look around the 

room here and see people from Nevada to Hawaii to Mississippi to 

54 

Nebraska, and a lot of rural folks on this Committee. I hope you 

will commit to this Congress and to this Committee that you will 

work with us on making rural broadband more accessible and 

make the buildout more expeditious. 

Mr. ROSS. I certainly will try to cooperate with you. As you know, 

it’s the intersection of myriad policy decisions, some of which are 

quite outside my control. 

Senator WICKER. You’re probably aware of this, and my time has 

expired, but you’ve been around the track. There is a second level 

of bureaucracy in your department. There is a third level of bureaucracy. You’re going to have to fight those people, and sometimes you’re going to have to make sure that they understand that 

elections have consequences. 

I want to do a shout-out to your predecessor, Secretary Pritzker, 

who helped Senator Cochran and me and the Governor of our state 

and the people in Mississippi who wanted to save lives through an 

innovative way to put doctors in emergency vehicles, and it took 

quite an effort on the part of Secretary Pritzker to cut through that 

bureaucracy and make sure the law was followed. 

I hope you can show that kind of determination, too, and we can 

work on a bipartisan basis with people, with my Democratic 

friends, and people on our side of the aisle, too, to cut through 

some of this red tape and do things like Secretary Pritzker did in 

helping save lives for Americans in Mississippi. 

Mr. ROSS. I’m certainly in favor of saving lives, and I’m clearly 

certainly in favor of enforcing the law, so I look forward to working 

with you on it. 

Senator WICKER. Thank you, sir. 

The CHAIRMAN. Thank you, Senator Wicker. 

Next up is Senator Schatz followed by Senator Gardner. 

STATEMENT OF HON. BRIAN SCHATZ, 

U.S. SENATOR FROM HAWAII 

Senator SCHATZ. Thank you, Mr. Chairman. 

Mr. Ross, thank you for your commitment to serve the public. 

Your predecessor successfully negotiated a couple of very thorny 

issues over the last few years regarding telecommunications: the 

U.S.-EU Privacy Shield and the IANA transition. The successful 

negotiation of the U.S.-EU Privacy Shield and the smooth transition of the IANA functions from the Department of Commerce to 

the global multistakeholder community were widely supported by 

a range of stakeholders, including the Congress. Do I have your 

commitment to continuity in these respects? 

Mr. ROSS. Well, as I understand it, there is no real alternative 

on the table to the ICAP situation. So for the moment, there is 

nothing else to consider. I’m not aware that there’s a realistic way 

to do anything about it. 

On the privacy side of life, I think we need to balance a couple 

of things going forward. The treaty, the agreements, that exist obviously exist, but I think going forward, there will be a tension between privacy on the one hand and problems of localization of data 

and the implications that they have for the Internet as we go forward. So I think that’s going to be a very tricky balancing act, but 

I look forward to consulting with you on it. 

55 

Senator SCHATZ. Thank you. In Fiscal Year 2016, the NOAA budget was about $6 billion, making up 60 percent of the Department of Commerce’s budget, but in recent years, NOAA’s budget 

has stagnated, as critical coastal and ocean programs have been 

held level to pay for satellites. As a result, NOAA has had to rely 

on aging, rundown buoys and ships to measure high-impact global 

ocean conditions such El Nin ̃ o events. El Nin ̃ o events originate in 

the Western Pacific, as you know, but their impact is felt around 

the world. The data that NOAA gathers in the Pacific using a 

small network of buoys is essential for forecasting these impacts 

across the country. 

These NOAA coastal and ocean programs are critical, but they’re 

not as interesting, not as expensive, as the satellite programs that 

you referred to earlier. What is the strategy to restore balance to 

the NOAA budget so that all of its critical programs are adequately 

funded? 

Mr. ROSS. Well, the big capital expenditures right now are for 

the satellites. As you know, there are several more that are scheduled to be launched. And then the next biggest capital expenditures 

will be to update the vessels. 

As someone who has operated vessels, I’m well aware that old 

vessels are quite inefficient to operate, number one. And number 

two, that the technology of these research ships has improved quite 

a bit in the years since those vessels were built. 

To the best of my knowledge, they actually are beyond their depreciable life, so they’re pretty ancient. As for appropriations and 

finance to wrestle through, how much money do we get altogether 

and how much of that gets spent on what? But I do think that it’s 

important to continue both the existing service functions and meet 

these very pressing capital expenditure needs. 

There’s a similar problem with the Census. It has been hard getting commitments for the appropriation the Census really needs for 

its mission, and that’s something I hope we’ll have further discussion about as well. 

Senator SCHATZ. I would like to follow up on Senator Nelson’s 

question regarding scientific integrity. As you know, in 2011, 

NOAA adopted an explicit Scientific Integrity Policy essentially ensuring independence for NOAA scientists. I’m satisfied with your 

answer both in this forum as well as in our private conversations, 

but just so that the record is totally clear, do you intend to uphold 

the 2011 Scientific Integrity Policy? 

Mr. ROSS. Well, as I’ve said, I believe that science is science, and 

scientists should perform science. I haven’t studied the intricate details frankly of that document, so I can’t make a formal commitment to it. But as to the general concept of scientists doing the 

science, I’m totally in support of that. 

Senator SCHATZ. Thank you. And, finally, on the question of trying to facilitate the reaching of our goal with respect to international visitors, and there are a lot of members of this Committee 

who care very deeply about tourism, part of the role of the Department of Commerce is not just to be a cheerleader for that stated 

goal that the Department of Commerce under Secretary Pritzker 

established, but to serve as a convener because there has to be a 

little bit of wrangling among departments. Some of the issues have 

56 

to do with the Department of Transportation and their throughput 

capacity and certainly the Department of Homeland Security and 

Customs and Border Protection. 

So can we have your commitment to continue the leadership of 

Secretary Pritzker in terms of convening the agencies and working 

with the White House and making sure that as we deal with all 

of our security and homeland security concerns, that commerce and 

tourism and those national policy objectives have a seat at the 

table? 

Mr. ROSS. Well, I know Secretary-designate Chao quite well from 

some of her former incarnations, and I look forward to working 

with her on stimulating tourism. 

Senator SCHATZ. Thank you. 

The CHAIRMAN. Thank you, Senator Schatz. 

Senator Gardner. 

STATEMENT OF HON. CORY GARDNER, 

U.S. SENATOR FROM COLORADO 

Senator GARDNER. Thank you, Mr. Chairman. 

Thank you, Ranking Member Nelson, as well as Mr. Ross, for 

being here this morning. Thank you to your family for being here. 

I’m all the way over here at the end, so it’s—yes, I know. Elaine 

Chao was here last week, and I think she actually thought I was 

in the audience sitting over here. So thanks for your willingness to 

serve the country and I appreciate the time we’ve been able to 

spend together in my office. 

We talked a little bit about trade and the importance of trade in Colorado, $9 billion worth of exports from Colorado, about half of 

which, $4.5 billion worth of goods, annually are sent to nations in 

Asia, and half of our state’s exports go to Asian nations. Given the 

position of the new administration on the Trans-Pacific Partnership, how do we make sure that we are increasing American exports abroad? And just as importantly, what areas, what markets, 

do you see as the most lucrative opportunities for the U.S. in the 

next 4 years? 

Mr. ROSS. Well, that’s obviously a very complex question, and we 

discussed it some in your office. The things we’re the best at in 

many ways are the technologically advanced things, and I think 

more research and development, more encouragement of technological breakthrough, is clearly an important thing. But at the 

same time, we need to protect our existing industries because they 

really are very much labor-intensive. 

And I think we also are going to have to cope with the challenge 

that’s combined with the opportunity of some of the technological 

advances. For example, driverless cars are probably a very good 

thing, they seem to be, in any event, an inevitable thing, but that 

presumably will also lead to driverless trucks. Well, there is something like 3 million American adults who depend on over-the-road 

trucks for their livelihood, and it’s a pretty good livelihood. And 

then you also have the shorter trip drivers as well. 

So I think what we have to do is to figure out how to make sure 

we get the benefits of the improved technology and yet cope with 

the dislocation that it inevitably will produce in certain of the industries. So I think that’s going to be a real balancing act. 

57 

Senator GARDNER. Thank you. In my opportunities to meet with 

leaders from around the globe, it’s very important that we make 

sure that we continue to be a leader in trade and exports and commerce because as nations look to other nations for leadership, as 

they look to economic opportunity, we need to make sure that 

international norms are set on standards that we believe are best 

for the world and economic opportunity. We should not give other 

nations a chance to take over U.S. leadership, which is very important because they’re relying on the United States to continue to 

lead. 

I want to thank you for your opening statement. Senator Rubio 

and I last year worked on and will continue to work this year on 

evaluation of Federal spectrum holdings to make sure that we understand the opportunity cost that having that spectrum held and 

not utilized means to this country and to the government. So thank 

you very much for that commitment to the evaluation. 

The National Institute of Standards and Technology has a laboratory in Boulder, Colorado, a major campus. Of course, one of the 

key areas of work that NIST at Boulder pursues is cyber areas. It’s 

a nonregulatory approach that NIST continues, and that’s their 

mission, but they do a lot of work when it comes to cyber. I’m very 

concerned about our construct in government, the way the Congress works, the way our Executive Branch works, when it comes 

to understanding cyber, being fully capable of implementing ideas 

that will protect both our private sector as well as national security 

interests. 

And so will the Trump administration—will you at Commerce 

continue to—can you commit to preserving the non-regulatory status of NIST to ensure that this work with the private sector on 

cyber can continue? 

Mr. ROSS. Well, I think cyber, if nothing else, was a big enough 

issue in the campaign that everybody is very sensitized to it for 

very local reasons. But it is going to be an increasing issue from 

a whole variety of directions. And, again, it’s one of these that’s 

very complicated. You don’t want to compromise the privacy side 

of things; on the other hand, you need real-world protection against 

people who intend to do us harm, economic harm or military harm. 

So I think that’s a difficult thing that will have to be balanced, and 

it wouldn’t surprise me at all if that will be the kind of thing that 

will come before the Congress over and over again. 

Senator GARDNER. Thank you. In 2015, there were estimates in 

2015 that up to $2 billion a day was lost in economic productivity 

due to the West Coast ports slowdown. Labor agreements for workers on the West Coast and East Coast ports are scheduled for near 

simultaneous expiration in both 2018 and 2019 respectively, excuse 

me, 2019 for West Coast, 2018 for East Coast. 

In the last Congress, I introduced the Ports Act, which would 

have provided Governors with the flexibility to address slowdowns 

and strikes at our Nation’s ports to reduce the damage of such catastrophes. 

Given how these dates are quickly approaching, and future labor 

negotiations are moving, how do you plan to avoid similar disruptions at our ports? And will you commit to making sure we have 

a report on the economic impact it would have? 

58 

Mr. ROSS. Well, that, thank you, is a very good and very complex 

question. We have tried very hard in our commercial activities to 

avoid strikes and showdown—slowdowns and things of that sort. I 

think in general, those are the failure of negotiation, and I think, 

therefore, the first thing is to try to figure out, how can there be 

a better process for negotiation so that we come to a resolution 

without this sort of showdown at the OK Corral? I think that’s 

number one, preventive medicine. 

Number two, that is clearly much more in the province of the 

Labor Secretary than it would be Commerce. We will be interested 

observers, and given that we’ve had a history with successful work 

with Labor, to the degree that they want, I will be glad to give my 

thoughts on how to try to help. 

Senator GARDNER. Thank you, Mr. Chairman. 

The CHAIRMAN. Thank you, Senator Gardner. That is an important issue because it affects the supply chain. Everybody was very 

much impacted by that incident a year ago. 

Senator Peters is up next. 

STATEMENT OF HON. GARY PETERS, 

U.S. SENATOR FROM MICHIGAN 

Senator PETERS. Thank you, Mr. Chairman. 

And, Mr. Ross, welcome to the Committee. I appreciate the time 

that we spent in the office together talking about a variety of 

issues, and certainly one thing that I was very pleased to hear was 

your extensive knowledge of Michigan and the industry there from 

the work that you did with the steel industry as well as automotive 

sector and other industries there. 

And I am particularly pleased as well with the comments that 

you made in regard to a question from one of my colleagues here 

related to TPP and the impact that the TPP would have on the 

auto industry, a very negative impact, in particular, with the suppliers in that industry. It would have had a devastating impact on 

jobs. And it’s not about protecting the auto industry; this is just 

about having fair rules where we treat the auto industry and the 

workers in America fairly with others. And we know we can 

outcompete anybody as long as the rules are fair, and I appreciate 

your stance on that and your comments. 

And along those lines, I wanted to address something that is 

critically important, which is enforcement. If we’re dealing with 

any kind of rules, whether they’re trade deals or the legal authority 

under the WTO, certainly the administration will play a vital role. 

In fact, you, if confirmed as the Secretary of Commerce, will play 

a vital role in enforcing those rules. 

And under current law, the Secretary can self-initiate anti-dumping and countervailing duty investigations. However, the use of this 

tool under previous administrations, I’m sad to say, has been virtually non-existent. In fact, I think the last time was in the 1990s. 

It’s been a long time since the Commerce Department has self-initiated these types of investigations. 

And normally we only have investigations that are initiated after 

a formal complaint by an industry. You know firsthand about that 

from your work in the steel industry. And that’s a very imperfect 

process. Usually, it’s large companies with high-priced lobbyists 

59 

that get noticed and get action in the Commerce Department, but 

if you’re dealing with small-and mid-sized businesses in Michigan 

and other states around the country, they don’t have the resources, 

and the impact of unfair trade practices often goes unnoticed and 

unfortunately not investigated. 

If confirmed, will you be more aggressive and commit to using 

your legal authority as Secretary to enforce the rules protecting 

against unfair trade practices and self-initiate anti-dumping and 

countervailing duty investigations? 

Mr. ROSS. As we discussed, Senator, when I was in your office, 

I’m an activist, and I think that that tool of self-initiation is a very 

useful one for several reasons. One is the one you mentioned. Industries that have a lot of small companies, it’s very hard for them 

to get the data together, to get the funding together, and worst of 

all, it takes a very long time for them to initiate a case. 

I think the duration of these cases has got to be shortened, and 

anything we can do to shorten it at the front end would be good. 

Self-initiation is a very good tool for that, and I think it’s a good 

tool in another regard in that, to me, part of any negotiation is the 

psychology of the participants. And to the degree that we show 

them we’re willing to self-initiate, that’s a more aggressive stand 

on cheating than perhaps has been exemplified before. 

So I think it’s important both from its actual curative effect, its 

preventive effect, and the psychological effect on the cheaters. 

Senator PETERS. Well, I appreciate that answer, Mr. Ross. And 

I guess the pushback that we have had from previous administrations as we have attempted to do this is that they have said that 

they lack some of the resources necessary. That’s why I’ve led efforts to fund the Interagency Center on Trade Implementation, 

Monitoring, and Enforcement, which is a mouthful, but what they 

do is assist our efforts in trying to get the self-initiated enforcements. So I would hope that I can enlist your support with bipartisan support here in Congress to provide resources necessary to do 

that critical function. 

Mr. ROSS. We would welcome more resources. 

Senator PETERS. Great. Great. Final question, as my time is expiring here: The issue of outsourcing is a critical concern as we continue to see American jobs go overseas. And I know you are committed to trying to stem that tide and bring jobs back and keep the 

jobs that we have. But what I have found is that it’s often difficult 

to get information as to what jobs are actually being outsourced, 

where jobs are being created. Companies and others will report 

that they are hiring workers, but we don’t know where those workers necessarily are. We find that the information regarding 

outsourcing is opaque, incomplete, and often entirely inaccessible. 

Will you, as Commerce Secretary, commit to work with Congress 

to develop some new corporate transparency measures that will 

allow us to have that information so that we can make sure our 

policies are actively addressing the problem of outsourcing? 

Mr. ROSS. Well, I have a very heartfelt saying in management 

that anything you can’t measure you can’t manage. So that’s one 

of the things that’s good about the Commerce Department, it has 

all kinds of measurement activities. And I was not aware that this 

was a particular problem, but certainly understanding the paramVerDate Nov 24 2008 09:55 Jul 10, 2017 Jkt 075679 PO 00000 Frm 00063 Fmt 6633 Sfmt 6601 S:\GPO\DOCS\25974.TXT JACKIE
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eters of problems helps you figure out how to deal with them. So 

I look forward to further discussions with you. 

Senator PETERS. Great. Thank you. 

The CHAIRMAN. Thank you, Senator Peters. 

Senator Cortez Masto. 

STATEMENT OF HON. CATHERINE CORTEZ MASTO, 

U.S. SENATOR FROM NEVADA 

Senator CORTEZ MASTO. Thank you. 

Welcome, Mr. Ross. It’s nice to meet your wife as well. And I 

want to thank you for taking the time to meet with me, and I 

thought we had a good conversation. 

I want to follow up on some of the comments that you’ve made 

just to put it on the record. I suspect, based on our conversation, 

I know where you stand on these, but when it comes to tourism in 

Nevada, it’s obviously a very important issue. Most people don’t realize, but just in 2016 alone, there were approximately 43 million 

visitors to Southern Nevada. This injects $45 billion into our economy, and actually provides good-paying jobs for 400,000 Nevadans. 

So something that’s very important for Nevada is Brand USA. 

And we’ve talked about this, and I just want a commitment. Are 

you committed to supporting Brand USA as it fits into your strategy to promote travel and tourism? 

Mr. ROSS. Everything I’ve heard about Brand USA is that it’s 

been positive and that it’s been helpful. So in the absence of some 

sort of contrary information, it sounds to me like a pretty good 

idea. 

Senator CORTEZ MASTO. Great. Thank you. Along those lines, the 

Survey of International Air Travelers is a primary research program which gathers statistical data about air passenger travelers 

in the U.S. overseas, and U.S.-Mexican air markets. And the Survey data provides information on passenger trip planning, travel 

patterns, demographics, and spending. It is a survey that is used 

to analyze visitor segments, and it is used by the Convention Authority in Southern Nevada and all industry groups, and they use 

the data directly as part of their marketing plans. Will you commit 

to expanding the scope and size of the Survey of International Air 

Travelers so that industry can better target their marketing campaigns and attract more tourists from around the world? 

Mr. ROSS. As I’ve said, Senator, I’m in favor of the idea that you 

can’t manage things that you don’t measure, so we need measurement of those kinds of data. 

Senator CORTEZ MASTO. Thank you. And I appreciate that because I’m a big proponent of data analytics, and I don’t think we 

do enough of that particularly in government. 

A part of your role will be overseeing the Minority Business Development Agency. I think the small businesses in the country, this 

country, are the backbone of our economy, and particularly in Nevada there are over 230,000 small businesses, many of them owned 

by Latinos, Asians, and African Americans. 

One thing I find after talking to small businesses is the lack of 

access to capital, particularly access to capital for small, minorityowned businesses. We haven’t had a discussion on this. I’m questioning your thoughts on promoting and continuing to support miVerDate Nov 24 2008 09:55 Jul 10, 2017 Jkt 075679 PO 00000 Frm 00064 Fmt 6633 Sfmt 6601 S:\GPO\DOCS\25974.TXT JACKIE
61 

nority-owned businesses, not only in Nevada, but across this country. 

Mr. ROSS. I’ve been a supporter of minority-owned businesses. In 

fact, at the International Automotive Group, we have had a number of joint ventures with minority-owned businesses in the auto 

parts space, and I think they can be done very, very well, and they 

help develop leadership within those communities so that they can 

go on and do independent businesses on their own. And I think the 

automotive industry has been relatively a leader in fostering minority business development. 

Senator CORTEZ MASTO. So can I get your commitment? I know 

the Minority Business Development Agency has business centers 

around the country. I think they’re underfunded. I think they need 

more resources to work with our small businesses. Will you commit 

to looking at that funding and continuing to support those centers? 

Mr. ROSS. Well, as I explained to you, I very much like the idea. 

I’m not intimate enough with the details of it yet to know exactly 

what it needs, but the idea I certainly support. 

Senator CORTEZ MASTO. Thank you. And then, finally, we’ve 

talked about this as well. Many major U.S. corporations are taking 

a public stance in supporting immigration reform efforts because 

we know that passing immigration reform will contribute to our 

economy. And I know in our private meeting we talked about this, 

and you said you were open to anything that will stimulate the 

economy. That is our job at Commerce. 

So a question for you is, can you commit today to supporting a 

comprehensive immigration reform package with a pathway to citizenship for undocumented immigrants that would be positive for 

the economy and stimulate job growth? 

Mr. ROSS. Well, as I said when we were together, anything that 

stimulates the economy in truth, I would be in favor of. 

Senator CORTEZ MASTO. Thank you. Mr. Ross, thank you so 

much. And again congratulations on your nomination. 

Mr. ROSS. Thank you very much, Senator. 

The CHAIRMAN. Thank you, Senator Cortez Masto. 

Next up we have Senator Johnson. 

STATEMENT OF HON. RON JOHNSON, 

U.S. SENATOR FROM WISCONSIN 

Senator JOHNSON. Thank you, Mr. Chairman. 

Mr. Ross, I’m over here where Senator Gardner was. First of all, 

thank you for being willing to leave your life in the private sector 

and serve our Nation here. I truly appreciate that. 

To me, our number one priority has to be to grow our economy, 

to make sure that we realize the full potential of this marvel we 

call the American economy. What do you believe is the growth potential of the American economy? Do you have kind of a figure in 

your head? 

Mr. ROSS. Well, I think we can certainly get north of 3 percent 

growth if we do all the elements of the President’s program. 

Senator JOHNSON. By the way, that has been the average since 

the Great Depression, about 3.2 percent to the American economy. 

So I would hope that’s a minimum goal. 

62 

You know, from my standpoint, there are four main reasons 

we’re not achieving that full potential: overregulation; completely 

uncompetitive tax system; we’re not using our energy resources; 

and the fourth I often don’t list because there are so many lawyers 

here, tort reform. 

Can you talk about, from your perspective, maybe you’ve got 

other ones, I know you’re talking about expanding exports, but 

what do you think are the primary reasons, and kind of expand on 

the answer if you would, that we’re not realizing the full potential 

of our economy? 

Mr. ROSS. Well, I wrote an editorial that outlined the four, what 

I think are the four, or five key planks: regulatory reform, not just 

wildly abolishing all regulation, but doing cost-benefit analysis and 

having sensible regulation; second, improving our trade balance, 

particularly by stimulating exports; third, having an energy policy 

that takes advantage of our natural resources and keeps energy 

prices low; fourth, an infrastructure program that’s a sensible one 

that leads to more efficiency in the economy and a better capability 

for dealing with the new technologies as they come through. I think 

if we do all those and we have a sensible tax system, I think the 

economy will do very, very well. 

Senator JOHNSON. Talk about your plans or what you would 

think would be best suited toward stimulating exports. 

Mr. ROSS. Well, I think the first thing we have to do is to deal 

with the unfair both tariff and non-tariff trade barriers that other 

countries impose on us. It’s a little weird that we have very low 

tariffs, and that China has very high tariffs. That seems to me to 

be a bit of an imbalance. And it’s one thing to talk about free trade; 

we would like to have our trading partners also practice free trade 

and do it in a more balanced manner than has been done at 

present. 

So I think a lot of what we need is elimination of inappropriate 

and, in most cases, improper trade barriers to us. I think American 

ingenuity, American management, and American labor can compete very, very effectively if it’s a fair fight. In a lot of cases, it’s 

not a fair fight. 

Senator JOHNSON. Talk about the non-tariff trade barriers. You 

talked earlier about we have to adjudicate those claims in a far 

more rapid fashion. But specifically talk, prioritize and rank, how 

harmful the non-tariff trade barriers are. 

Mr. ROSS. Well, take, for example, automobiles. Some countries 

with whom we’ve had treaties agree to lower the tariff, but then 

they’ll suddenly say, ‘‘We have a different environmental standard 

for cars than what you have, and, ha-ha, your cars don’t qualify as 

environmentally correct in our country.’’ I can’t imagine that there 

is anything that our environmental requirements have missed that 

other countries have found. So it’s clearly just a device to make it 

more difficult for American companies to have to tailor-make cars 

for that market. So that’s one example. 

The famous debates over mad cow disease I think are another 

very glaring example. I eat quite a lot of beef, and as far as I know, 

I don’t have mad cow disease, although some people think applying 

to be Secretary of Commerce is a sign that perhaps I do. 

[Laughter.] 

63 

Mr. ROSS. But leaving that aside, it’s hard for me to imagine that 

there is any legitimacy to saying that our beef shouldn’t be exported to wherever. If it’s good enough for Americans to eat, it 

ought to be good enough for foreigners to eat. So I think those are 

a couple of glaring examples. 

Other ones are inordinate delays at the ports for undue inspections delaying products getting in, just harassing the export process in general. There are myriad, myriad ways, and as you can 

gather, I’m quite familiar with a lot of the tactics because I’ve been 

a personal victim of them. 

Senator JOHNSON. So your approach would be to simply target 

those abuses. 

Mr. ROSS. Yes, sir. 

Senator JOHNSON. OK. Thank you, Mr. Ross. 

Thank you, Mr. Chairman. 

The CHAIRMAN. Thank you, Senator Johnson. 

Next up we have Senator Hassan. 

STATEMENT OF HON. MAGGIE HASSAN, 

U.S. SENATOR FROM NEW HAMPSHIRE 

Senator HASSAN. Thank you, Mr. Chair. 

And, Mr. Ross, congratulations on your nomination. 

Mr. ROSS. Thank you, Senator. 

Senator HASSAN. And I’m sorry, we have two hearings going on 

at the same time, so we’re back and forth. And I wanted to thank 

you again for coming to my office and meeting with me. 

I wanted to touch on just about three issues. The first is small 

business. New Hampshire has been rated the best state for business friendliness in the country, and many of the businesses in 

New Hampshire are small businesses. In fact, the majority of them 

are. 

During our meeting, you emphasized that one of the Department 

of Commerce’s main roles in finding ways to help small businesses 

is to help small businesses find ways to grow and be able to export 

their products. In the most recent monthly report from the ExportImport Bank, New Hampshire businesses and small businesses financed almost $800,000 in exports from New Hampshire. 

How will you coordinate and work with other departments and 

administrations, such as the Small Business Administration and 

the EXIM Bank, through existing or new collaborative programs to 

achieve these goals? 

Mr. ROSS. Well, I believe that we need some mechanism that 

helps finance exports. All the other countries around the world 

have one. I know there have been some individual criticisms of various aspects of EXIM, but I think the idea of some sort of financing 

tool, particularly for small businesses, is really important. If you’re 

a little manufacturer somewhere in the Heartland and you’ve never 

exported, just trying to figure out, ‘‘How do you get letters of credit 

so that you can really do the business?’’ can be daunting. 

And I think that part of the Department of Commerce, with its 

field offices, needs to be even a better outreach to the small business community to say, ‘‘Yes, we know it’s a big challenge. We’re 

here to help you. We’ll help you figure out the letter of credit.’’ BeVerDate Nov 24 2008 09:55 Jul 10, 2017 Jkt 075679 PO 00000 Frm 00067 Fmt 6633 Sfmt 6601 S:\GPO\DOCS\25974.TXT JACKIE
64 

cause however good their product is, if they’re not able to work out 

things like letter of credit, they’re not going to export. 

And I think it’s tragic that only a couple percentage points of all 

American businesses ever export anything. That can’t be the best 

solution and it can’t be the right solution. 

Senator HASSAN. Thank you. I wanted to talk a little bit about 

what the Department and we can all do to help innovation-based 

companies. In Manchester, New Hampshire, we have businesses 

like Scribe Software and Retrieve Technologies, SilverTech, and 

Dyn, and it’s really helping position our largest city as one of the 

top emerging areas for tech jobs in the country. 

So how can the Department of Commerce on its own and with 

other organizations support innovation-based new and young businesses and really help them grow? 

Mr. ROSS. Well, I think we need to outreach. There are also private sector enterprises, like the National Association of Manufacturers, which has some 14,000 mostly smaller companies as members. I’m very grateful that they are one of the groups that has endorsed my nomination for Commerce, and I intend to work very 

closely with them because I think they have very many of the similar objectives to what you and I discussed in your office. 

Senator HASSAN. Great. 

Mr. ROSS. And there are other groups similarly. The state development agencies can also be useful things because more and more 

states have export development agencies, not just those to attract 

factories to their locales. 

Senator HASSAN. Great. Thank you. Third, and I know a couple 

of the other Senators have touched on the issue of fisheries this 

morning. I just wanted to touch on a New Hampshire-specific issue. 

The work that NOAA does is so important, and I look forward 

to working together with them in the future. It provides essential 

and sometimes life-saving information and services, weather forecasts, severe storm warnings, climate monitoring. 

But in New Hampshire, we have a particular issue. We have almost, if not exclusively, a small boat fishing industry. The industry 

is more sensitive to changes in the fee structures prescribed by 

NOAA than many. And in the new rules, NOAA has said that fishermen will have to pay for at-sea monitors, which in New Hampshire is costing small boat fishermen as much as $700 a day, and 

it’s just not sustainable. 

So in 2016, NOAA agreed to pay 85 percent of that cost, but in 

2017, unless we do something about it, that cost is going to shift 

back to our fishers unless another agreement is reached. So how 

would you approach negotiations with small businesses and industries in this and other situations similar to this? 

Mr. ROSS. Well, as we discussed, it’s really a question of, how can 

we set up the least expensive mechanism for assuring that people 

are adhering to the rules? 

Senator HASSAN. Yes. 

Mr. ROSS. And usually putting in technological devices is a net 

saver of costs. It sounds in this particular case like it’s the reverse. 

So I would look forward to researching that and trying to figure 

out, how do we accomplish the necessary objective of enforcement 

without putting undue hardship on the small boat fishermen? 

65 

Senator HASSAN. Thank you very much. And again thank you for 

being here this morning. 

The CHAIRMAN. Thank you, Senator Hassan. 

Senator Udall has returned, he’s up next. And then I have Senator Lee. 

STATEMENT OF HON. TOM UDALL, 

U.S. SENATOR FROM NEW MEXICO 

Senator UDALL. Thank you very much, Mr. Chairman. 

And, Mr. Ross, I want to welcome you today and thank you for 

your willingness to serve. I appreciated meeting with you in my office earlier this month. And you have an extensive business background that spans numerous industries. This experience should 

prove useful to you at the Department of Commerce, where you 

will lead a diverse collection of agencies. Commerce does everything 

from forecasting the weather to managing Federal use of wireless 

spectrum. But the common thread is promoting job creation, economic development, sustainable development, and improved standards of living for Americans. So I certainly want to work with you 

to ensure that the Commerce Department meets those goals in my 

home state of New Mexico. 

I would like to follow up today on some of what we’ve discussed 

in my office earlier this month. 

First, Mr. Ross, you are reportedly going to be taking a big role 

on in renegotiating trade agreements in international trade policy. 

The President-elect and his family have a wide variety of assets 

around the world that other countries could seek to use as leverage 

with the U.S. in negotiations. 

If confirmed as Secretary of Commerce, you are committed to divesting your assets, a major undertaking. Would it make your job 

negotiating international trade issues easier if the President-elect 

did as you are doing and divested his financial holdings to avoid 

any complications? 

Mr. ROSS. I made the decision that I did because I thought and 

agreed with the OGE that this was the right thing for me to do. 

As I understand it, the rules are different as they apply to the 

President, and I think it’s for him to judge what is the appropriate 

disposition or non-disposition of his assets. I’m not intimate enough 

with the details of his holdings to even have a clear understanding 

of just how extensive they are, although I know they are quite 

huge. So I think that’s really a personal decision that he’ll have to 

make. 

Senator UDALL. Mr. Ross, but you understand that his businesses are in many countries; the Trump Organization is all over 

the world, and this could raise some real conflicts for you in terms 

of doing your job. Will you commit that you will notify this Committee if another country offers incentives or threatens consequences to the Trump family or Trump Organization’s assets in 

the course of your international trade negotiations and efforts to 

promote exports? 

Mr. ROSS. Well, anything that interferes with my job is something that I will have very little tolerance for if I’m confirmed. That 

I can assure you of. 

66 

Senator UDALL. And will you commit to report to this Committee—that’s kind of a yes-or-no answer—if another country offers 

incentives or threatens consequences to the Trump family or the 

Trump organization assets in the course of doing your job and 

working on trade? 

Mr. ROSS. Well, certainly if they threaten me, I would be able to 

make people aware of it, but the hypothetical that you’re posing 

might very well be something I’m not even aware of. So that would 

make it very difficult to inform anyone of anything. 

Senator UDALL. Well, I’m talking about if in the course of doing 

your job—— 

Mr. ROSS. Right. 

Senator UDALL.—and working on trade negotiations somebody 

comes to you with either a threat or incentive that involves the 

Trump Organization, would you let us at this Committee know that 

that was happening? 

Mr. ROSS. Well, I’ll tell you two things. I know the Presidentelect quite well, and I think people who threaten him or offer inappropriate things will find he doesn’t take that very lightly. There 

will be a very strong response on his part, quite independently of 

anything I would do. 

Senator UDALL. Well, I’m urging you to try to let us know if that 

situation comes up because I think it’s very important in terms of 

the objectives of your Department to make sure we keep those conflicts out. 

Now, Mr. Ross, Democrats understand a lot of the frustration 

about trade that President-elect Trump campaigned on. During my 

time in Congress, I’ve supported some trade agreements and opposed others that I believed hurt American workers and chipped 

away at environmental protections. For example, I voted against 

permanent normalized trade relations with China and more recently came out in opposition to the Trans-Pacific Partnership. 

My question really is, will the Trump administration use TPA to 

pass trade deals without amendment from Congress, which really 

cuts our constituents out of this and cuts Congress out? 

Mr. ROSS. Well, that is certainly a decision the President would 

have to make. If confirmed, I don’t believe I would have the unilateral power to make that decision. That’s something that would be 

at the Presidential level, and I’m sure he would take into account 

whatever considerations he could under the prevailing facts at that 

particular point in time. 

Senator UDALL. Do you personally support the use of TPA for 

trade deals? 

Mr. ROSS. I think you need to assure your counterparty that 

there’s a reasonable and quick process for solving the negotiations. 

So far, TPA is the law of the land, and until there is some specific 

alternative proposed, I don’t think there is any real alternative to 

it. 

Senator UDALL. Thank you for your courtesy. 

Sorry, Mr. Chairman, for running over a little bit there. 

The CHAIRMAN. Thank you, Senator Udall. 

Senator Lee is up next. 

67 

STATEMENT OF HON. MIKE LEE, 

U.S. SENATOR FROM UTAH 

Senator LEE. Thank you, Chairman Thune. 

And thank you, Mr. Ross, for being here today. I look forward to 

our conversation. I’ve enjoyed hearing your responses to questions 

asked by my colleagues. And I enjoyed meeting with you last week 

as well. 

Throughout the 2016 election cycle, we heard a lot from President Trump about our country’s approach to international trade 

and about the fact that international trade generally, and, in particular, international trade agreements, have culminated in things 

that Mr. Trump insisted were negative consequences to American 

workers and to the economy. 

He stated that he would have the Secretary of Commerce, the 

person holding the seat that we’re now considering you for and that 

you will hold if you’re confirmed, along with the U.S. Trade Representative to, quote, identify all foreign trading abuses that unfairly impact American workers and direct them to use every tool 

under American and international law to end those abuses immediately. 

I certainly believe that our country should not accept any trade 

deal or any practice under any trade deal that unfairly harms 

Americans. And for similar reasons, I also think that we should be 

cognizant of the fact that any action we take in retaliation, whether through retaliatory tariffs or otherwise, can also bring about a 

set of circumstances that could be adverse to the American people, 

some unpleasant consequences. There are some risks that have to 

be taken into account where you have to wonder whether in some 

cases the medicine might be worse than the underlying ailment for 

which the medicine was administered. 

So I would ask you, if you’re confirmed to this position, as you’re 

considering in that position a particular trade deal or a particular 

action to be taken relative to trade, will you take into account the 

potential retaliation on American consumers and American supply 

chains what spillover consequences these might have and take 

those into account in making the decision? 

Mr. ROSS. Well, surely. Having been part of those supply chains, 

I have some fair understanding as to how they work and how 

they’re essential. 

But on the topic of retaliation, my mindset will be that of a 

world’s largest customer dealing with his vendors. I view these 

other countries with whom we have trade deficits as our vendors. 

And while you need to treat the vendors with respect, they must 

also treat you as their largest customer, both with respect and, 

more importantly, playing by the rules of the road. And to the degree they don’t, it must be enforcement because we are a country 

of the rule of law. Some of these other countries are instead the 

law of the ruler. That’s an asymmetry that permeates all kinds of 

sectors of their economies and ours, and we need to deal with that. 

Senator LEE. Thank you. I appreciate your commitment to that, 

to the rule of law. It absolutely is important. It’s been a key part 

of why our economy has been so successful and a key part of what 

makes us competitive in the global marketplace. And I appreciate 

your willingness to consider those potential spillover effects. 

68 

You know, as you know, Article I, Section 8, the very first clause 

of Article I, Section 8, where most of Commerce’s powers are outlined, gives Congress the power to set tax rates, among other 

things, to lay and collect taxes, duties, imposts, and excises, and 

the third clause of that same section also gives Commerce the 

power—Congress the power to regulate Commerce with foreign nations in between the states. 

Do you believe that Congress should have a role in determining 

trade policy? And will you commit to work with us and to consult 

with us before taking any action on your own? 

Mr. ROSS. Well, I certainly believe it has to be an interactive 

process between Congress and each of the departments. And I see 

no reason that I would deviate from that practice. 

Senator LEE. In the final seconds I have, I just want to note I 

appreciate your willingness to look at spectrum, to take a look at 

the spectrum that the Federal Government currently holds and to 

look at areas where we might be able to release some of that federally held spectrum that will help us address some real significant 

needs that we have in rural states and states like mine, like the 

state of Utah, where we could benefit from it. 

I see my time is expired. Thank you, Mr. Ross. 

Thank you, Mr. Chairman. 

The CHAIRMAN. Thank you, Senator Lee. And ditto on the spectrum issue. 

Next up is Senator Young. 

STATEMENT OF HON. TODD YOUNG, 

U.S. SENATOR FROM INDIANA 

Senator YOUNG. Thank you, Chairman. 

And, Mr. Ross, thanks for your interest in serving here in this 

capacity. I enjoyed our visit some days ago. 

And I would like to begin by asking you a question about the 

steel industry. In my state of Indiana, the steel industry employs 

directly roughly 25,000 Hoosiers, and I routinely hear from those 

individuals, their families, members of their community, that they 

have concerns about the market-distorting practices from the Chinese government, something that may have come up earlier today 

in the midst of my other two confirmation hearings. 

This overcapacity issue that threatens numerous Hoosier manufacturing jobs is one that has really come to the fore over the last 

8 years. And the incoming administration has routinely pledged to 

fight very hard on behalf of American workers. They’ve indicated 

the Department of Commerce would have an expanded role in advocating on behalf of fair trade practices. 

Could you please elaborate on your plans to push back against 

unfair trade practices from China and other steel-dumping countries? 

Mr. ROSS. Yes. I’m glad you point out that it isn’t just China, and 

part of my feeling is that China is the largest but by no means the 

only problem in that regard. There is a global problem of overcapacity, but it’s mainly focused in China. 

And an interesting fact in terms of the question of government 

subsidy, there are some of the state-owned enterprises, something 

like a third of them, have never made a profit, they keep—they’re 

69 

being kept alive by the state-owned banks. To me, that looks and 

feels and tastes a lot like artificial subsidy. 

So I think we need to be very sophisticated in the way we look 

at the forms of subsidy. It isn’t just things like VAT and it isn’t 

just things like that, it’s all kinds of intricate corporate relationships, many of which have not really been attacked before. I think 

we will be very scrupulous if I’m confirmed at dealing with those 

issues. 

Senator YOUNG. Well, that’s very encouraging. We don’t want to 

jump to conclusions too quickly. One is very quick when prices rise, 

to charge monopolistic pricing; when prices are the same level 

roughly, they charge parallel pricing; and when a competitor has 

undercut us, we often say that dumping is going on. So we want 

to make certain that we are sure that’s what’s occurring, but at the 

same time, we want to act, and we want to act boldly. And I hear 

your commitment to do that here today. 

Indiana is home to many auto manufacturers that have global 

supply chains, something that was just invoked. For example, GM’s 

assembly in Roanoke employs nearly 4,000 Hoosiers. Subaru in Lafayette employs 5,000; Toyota in Princeton, roughly 4,500 Hoosiers. 

Then we have a whole distinct recreational vehicle industry up 

near Elkhart. 

So these jobs provide Hoosiers with a secure middle-class income 

at a time when a lot of people are anxious about their ability to 

land those jobs and to keep them. Can you reassure the tens of 

thousands of Hoosiers, autoworkers and others, whose jobs rely on 

free trade, that their livelihoods will not be put at risk by restrictive tariffs which might interrupt these global supply chains? 

Mr. ROSS. Well, as I’ve said quite often publicly, I think the best 

way to deal with the trade deficit is increased exports. I think 

that’s the A number 1 priority. B, number two is to get the Toyotas 

and other companies like that to build their factories here so that 

workers do have not only continued employment but enhanced employment. And I think with the right tax policies, regulatory policies, and other policies, we can accomplish that. 

Senator YOUNG. But it’s your goal with respect to tariff policies 

that you consult with others in the Administration—— 

Mr. ROSS. Well, I—— 

Senator YOUNG.—for there to be no interruption to those Hoosiers, tens of thousands, who are currently employed in the auto 

industry and other industries who reply upon global supply chains. 

Mr. ROSS. Well, I well understand that, having been part of 

it—— 

Senator YOUNG. Yes. 

Mr. ROSS.—I very well understand it. Tariffs do have a useful 

role. They do have a useful role in correcting inappropriate practices. They also do have a useful role as a negotiating tool. I’m 

keenly aware of Smoot-Hawley and the effect that it had on trade 

in general and our trade in particular, and if there is nothing else, 

we can learn from history that that kind of approach didn’t work 

very well, and it didn’t work very well then, and it very likely 

wouldn’t work very well now. 

Senator YOUNG. I’m encouraged that those historical lessons will 

inform your practices as the next head of the agency. Thank you. 

70 

The CHAIRMAN. Thank you, Senator Young. 

Senator Duckworth is up next? Are you ready, Senator, or would 

you like us to—— 

STATEMENT OF HON. TAMMY DUCKWORTH, 

U.S. SENATOR FROM ILLINOIS 

Senator DUCKWORTH. Thank you, Mr. Chairman. We had some 

microphone issues. There we go. 

Mr. Ross, congratulations on your nomination, and thank you so 

much for visiting with me last week to discuss the issues that are 

so important to Illinois’ workers and our economy. 

When we met last week, I think we had common cause in our 

shared conviction that rule breakers should be held accountable, 

and if those rules are set by the international trading system, then 

we should exercise our rights to enforce those rules and penalize 

the rule breakers. 

And we talked at length about the impact illegal steel-dumping 

has had on our Nation’s economy, and particularly in Illinois, 

where it has contributed to over 2,000 Granite City steelworkers 

getting laid off, through no fault of their own, just days after 

Christmas a couple years ago. 

I’ve been pushing for stronger enforcements against violation of 

trade laws that make it difficult for American manufacturers, including steel, to compete. Will you work with me to crack down on 

currency manipulation? 

Mr. ROSS. Yes. I think currency manipulation is just another device, another non-tariff barrier, that countries use to attack our 

economy. 

Senator DUCKWORTH. How would the Commerce Department 

plan to make enforcement of trade laws a priority, and here I’m 

talking about timely enforcement, before workers have lost their 

jobs? 

You and I spoke a little bit, and I told you the story of U.S. Steel 

in Illinois, where because of illegal dumping of foreign steel, they 

had to cut down production and lay off all of those workers. And 

the steel company itself that was going into bankruptcy had to take 

on the responsibility of bringing the case to the international court 

system. That is, I feel, an unfair burden on these companies that 

are already suffering from the currency manipulation, the dumping 

of products, by competitors. At the same time, their competitors 

abroad don’t have to take on that burden. Can you speak a little 

bit more to this process? 

Mr. ROSS. Yes. As we discussed, Senator, I like the idea of occasionally using self-initiation by the Department of Commerce to 

bring these cases. It will shorten the duration of the preparatory 

time, and if we’re also stricter about not granting extensions to the 

perpetrators. Historically, the people who have been the dumpers 

refuse to comply on a timely basis with requests for information. 

I’m not going to look—if confirmed, I would not look very kindly 

on the perpetrators deliberately delaying cases by not providing information. 

Senator DUCKWORTH. You had mentioned the potential in our 

meeting for having a special liaison in your office or someone who 

would work to be the point person—and you can correct my phrasVerDate Nov 24 2008 09:55 Jul 10, 2017 Jkt 075679 PO 00000 Frm 00074 Fmt 6633 Sfmt 6601 S:\GPO\DOCS\25974.TXT JACKIE
71 

ing—for bringing forth these cases when American industry is 

being unfairly burdened so that it’s not on the shoulders of U.S. 

Steel to bring the case to the international court system. But they 

would have someone in Commerce who is already looking out and 

able to be that point person. 

And can you talk about how you would set up that, I don’t know 

if it’s a person or an office, what the relationship would be to you 

as Secretary? 

Mr. ROSS. Right. Well, first of all, we’re not going to self-initiate 

every case, we don’t have the staffing to do it, but I think by picking strategic cases and initiating them, it will, A, send a message 

to the people on the other side that we’re getting more serious 

about this; second, it would definitely accelerate the process. And, 

therefore, I’ll figure out some way, if confirmed, to allocate people 

power to that activity. It will be a much more important activity 

if I’m Secretary of Commerce than it had been historically. 

Senator DUCKWORTH. Thank you. I think for the families of those 

steelworkers, time is of the essence. They’re the ones who are missing mortgage payments. They’re the ones who now have to tell 

their children, ‘‘You can’t go back to college because we can’t afford 

tuition.’’ They’re the ones who are about to lose their homes. So 

anything that we can do to speed up that process for any of America’s industries, not just the steelworkers. 

I would like to shift a little bit and talk about the Minority Business Development Agency. What new support will you give the 

MBDA to answer the growing call for a larger footprint of services 

so more minority businesses can grow through M&A and high-tech 

opportunities? 

Mr. ROSS. Well, I think it’s an essential thing because those are 

some of the industries of the future. I think what we will need to 

do is to find people who have the technological capabilities. And as 

you and I discussed, one of the problems is our educational system 

is stinting on STEM—science, technology, engineering, and math 

courses, and we’re also stinting on vocational training. 

So one of the problems is there is a lack, particularly in some of 

the minority communities, of the capabilities to do that. And that’s 

a very serious problem. We can hope to cope with some of that with 

apprenticeship programs. We, as a country, are the worst in the 

OECD on having apprenticeship programs. We’re also the worst on 

having vocational training. 

So I think we have to have an overall approach to solving the 

problem of making sure that people are qualified to do the technological innovation. 

Senator DUCKWORTH. Thank you. And if there is a second round 

of questions, I will definitely be asking about what you are going 

to do for existing minority-owned businesses today. 

I’m out of time, Mr. Chairman. 

The CHAIRMAN. Thank you, Senator. 

Mr. ROSS. Well, the entity within Commerce, I have been told, 

has done a pretty good job. I hear reports that people are pretty 

satisfied with what it’s been doing, but there is always more that 

you can do to be more aggressive in helping. So I will work with 

the staff of the MBDA to try to figure out how we can most sensibly expand those activities. 

72 

The CHAIRMAN. Thank you, Senator Duckworth. 

Mr. Ross, I would defer to you on this, in terms of when, if you 

would like a break. We have a number of Members to get to in the 

first round, and a couple who would like to ask questions in a second round. So I assume at some point you would want to take a 

break, but I’ll—whenever that point occurs—— 

Mr. ROSS. Well, I could go another 10 minutes, sir. 

The CHAIRMAN. OK. We have in order right now Senator Booker 

and Senator Fischer. 

STATEMENT OF HON. CORY BOOKER, 

U.S. SENATOR FROM NEW JERSEY 

Senator BOOKER. Mr. Chairman, as always, I would defer to Senator Fischer on anything. So if she would like to go first, I can go 

second. 

Senator FISCHER. No, no, you were here before me. 

Senator BOOKER. Thank you very much. 

Mr. Chairman, thank you. 

Mr. Ross, it’s very good to see you. Thank you very much for taking time to come and sit with me. I know it’s an expected gesture, 

but it meant a lot to me, and I appreciated our conversation. 

I want to start with the first issue I started with when you came 

to my office, and that’s the issue of infrastructure. In last week’s 

hearing with the Secretary of Transportation nominee Chao, she 

told me that she believes that President-elect Trump’s $1 trillion 

infrastructure package will include direct Federal spending. 

While I know you and I talked about the totality of the picture 

in my office, the report that you co-authored for the campaign really only talked about tax breaks to private investors. You and I both 

know there are many ways to invest in projects, especially those, 

as we discussed, that don’t have a clear obvious revenue stream, 

especially those that often affect people in rural areas, people in 

poor communities, people that often need critical infrastructure to 

live healthy lives to be able to pursue happiness, life, and their liberty. 

Your report says, rightfully, that there are about 2,000 additional 

water systems with excessive levels of contamination, including 

those that serve our schools and day care centers. Do you agree 

that repairing and rebuilding water infrastructures in places like 

Flint and Newark, where residents cannot afford utility rates, requires direct Federal spending, especially given the consequences 

to the development of children who have elevated blood lead levels, 

which are not lead poisoning, but just elevated blood lead levels, 

which are directly correlated to poor performance in school, a lack 

of executive function. For the most important economic agents in 

our Nation, lead undermines their success and contributions in the 

economic marketplace. 

Mr. ROSS. Well, those situations, it seems to me, are a matter of 

public policy, and that will take cooperation between the Congress 

and the President to solve. The infrastructure paper that I put out, 

as you know, Senator, was meant to provide another tool, not to 

be the be-all and end-all. And I certainly think there’s a role for 

the Federal Government to play, just as there is for state and local 

73 

government to play, in dealing with some of these critical infrastructure needs of communities. 

Senator BOOKER. So I appreciate that. And just succinctly then, 

you support direct spending by government on infrastructure. 

Mr. ROSS. I think there will be some necessity for it. Whether it’s 

in the form of guarantees or direct investment or whatever, but it’s 

really for the Congress and the President to figure out what should 

be the quantity of it and what should be the nature of the projects. 

Senator BOOKER. But as a person with vast business experience, 

understanding how balance sheets work, people who are concerned 

about debt to GDP ratio, investments in infrastructure, especially 

in the region that you and I both know best, you might call it the 

greater New York metropolitan area, I call it the greater Newark 

metropolitan area, you understand that investing in infrastructure 

produces two to three dollars of return in economic growth, and 

that could be a wise business investment; yes? 

Mr. ROSS. Well, as you know, I think the labor content and the 

profit content of infrastructure construction can go a long way toward offsetting tax revenues that aren’t there because labor content is around 44 percent in an infrastructure project. So if you 

allow for the wages on that, then you allow for taxes on the profit 

of the contractor, you have something coming back in. 

Senator BOOKER. I appreciate it could be really economically 

stimulative; correct? 

Mr. ROSS. Yes. 

Senator BOOKER. Yes, sir. And so I also understand that the 

President-elect team is putting together a list of specific high-priority infrastructure projects from around the country that they 

plan to seek funding for. What’s the criteria for those projects to 

be included on the list? And will that list be shared soon? And do 

you and President-elect Trump plan on requesting direct Federal 

spending for those high-priority projects? 

Mr. ROSS. Well, I don’t think the list has been refined as yet. You 

probably saw in the media recently he has appointed a business 

partner of mine, Richard LeFrak, and Steve Roth to head up the 

infrastructure consulting project. So I think they will play a big 

role in helping him determine what are the key projects and how 

to implement them. 

Senator BOOKER. And not just because you’re a young man born 

and raised in New Jersey, and Mr. LeFrak is obviously from New 

Jersey as well, but you understand that the busiest river crossing 

in all of North America is the Hudson River crossing, that that is 

a chokepoint for our Nation in one of the most economically productive regions on the globe, and the fact that that infrastructure is 

failing now. It is critical that we open up those arteries like a stint 

on the Northeast Corridor, where more people travel by rail than 

they travel by air. You understand the urgency of that project 

given the role of this region in the GDP of our country. 

Mr. ROSS. I surely do, Senator. You and I have probably made 

that crossing more often than anybody else in this room. 

Senator BOOKER. Thank you, sir. Thank you very much. 

Mr. Chairman, thank you. 

The CHAIRMAN. Thank you, Senator Booker. 

Next up is Senator Fischer. 

74 

STATEMENT OF HON. DEB FISCHER, 

U.S. SENATOR FROM NEBRASKA 

Senator FISCHER. Thank you, Mr. Chairman. 

And thank you, Mr. Ross, for your willingness to serve this country in the position of Secretary of Commerce. As you know, the Department of Commerce has put a lot of work into thinking of ways 

to encourage the growth of the Internet of Things, and I commend 

the Department for those efforts. Senators Booker and Gardner 

and Schatz and myself, we recently reintroduced the Digit Act, 

which would create a working group convened by the Department 

of Commerce to make recommendations to Congress on ways to advance the Internet of Things. 

As Secretary, would you plan to continue the Department’s efforts to collaborate with both private stakeholders and other government entities, including Congress, to encourage the development of the Internet of Things? 

Mr. ROSS. Well, I think all aspects of Internet need encouragement. There are issues, technical issues, privacy issues, and such 

as that that come up, so it’s not a simple subject. But when President-elect Trump convened the meeting of the high-tech CEOs 

some weeks ago, he was kind enough to have me be very much involved with that. And I was impressed with how willing the hightech people were to work with the new administration to try to deal 

with these kinds of issues even though, as it happens during the 

campaign, we would not necessarily be the recipient of much support from them. 

So I think that was a very good thing, and some of those leaders 

have followed up with me subsequently with some more specific 

suggestions. So I look forward to a constructive relationship in that 

series of areas. 

Senator FISCHER. That’s good to hear. As you know, the Internet 

of Things, when we look at all that can be created and the innovation that takes place and really the business growth for entrepreneurs, it is going to be a huge area for growth in this sector and 

one that I’ve enjoyed working with on a bipartisan basis with Members of this Committee. 

We also discussed during our meeting that agriculture is the economic engine of the state of Nebraska. In fact, cattle outnumber 

people four to one in our state. And Nebraskans work very hard 

to produce food, fiber, and fuel for the rest of the world. 

In 2015, Nebraska’s agricultural exports amounted to roughly 

$6.4 billion, and of that, our delicious Nebraska beef exports accounted for about $1 billion. And that is why access to global markets is really extremely important to my constituents, all the people of Nebraska. 

If confirmed, what approach do you believe that you will take to 

ensure that we have those global market opportunities and that 

they are available for industries like Nebraska, where we can continue to grow and develop? 

Mr. ROSS. Well, agriculture certainly is one of the industries 

where we remain the world leader in technology and in execution. 

So it’s one of the very strong points of our economy. 

75 

Second of all, many of the other countries, our trading partners, 

literally cannot feed themselves, so they’re going to have to buy 

food from somewhere outside. 

Take China, for example, only 13 percent of that huge land mass 

is arable because so much of it is desert, so much is mountainous, 

so much is just not farmable. So there are some structural disadvantages that many of our trading partners have where they 

very much need us. I think that is actually not something to be 

feared in those negotiations; I think it’s one of our strengths. 

Senator FISCHER. Yes, obviously. 

Mr. ROSS. And soybeans basically come from two places, U.S. and 

Brazil. I don’t know where they would get the soybeans if somehow 

they tried to cut us off. 

Senator FISCHER. Right. Thank you. There was some talk earlier 

about federally held spectrum, and the NTIA has a very important 

role in making more spectrum available for commercial use, which 

I think is a laudable goal. 

I am also a Member of the Senate Armed Services Committee, 

and as such, I believe it is also very important that the agencies 

that are responsible for protecting the homeland have the spectrum 

that they need to do that. 

As Secretary of Commerce, how would you approach the task of 

balancing the commercial sector’s need for additional spectrum 

while still obviously recognizing but also putting as a priority the 

importance of our national security and making sure we have the 

spectrum needed to defend this country? 

Mr. ROSS. Well, for sure, the first—the vast majority of the federally occupied spectrum that’s unused now is in the hands of the Department of Defense. So the first objective has to be do no harm. 

We can’t compromise national defense homeland security at all, but 

we also need to be rational, and it can’t be that there’s hoarding. 

And I think one of the tricky problems is, how do you incentivize 

any department that has the spectrum to give it up? I think that’s 

the trickiest part, is how to motivate them to do so, and that’s 

something we should all give some thought to. 

Senator FISCHER. Thank you very much. 

Thank you, Mr. Chair. 

The CHAIRMAN. Thank you, Senator Fischer. 

How are we doing, Mr. Ross? Would you like to—— 

Mr. ROSS. This would be an opportune moment. 

The CHAIRMAN. All right. Good. Well, let’s take a quick 10 minutes and reconvene as quickly as possible so we can keep plowing 

on. So thank you. We will briefly recess. 

Mr. ROSS. Thank you, Chairman. 

[Recess.] 

The CHAIRMAN. All right. We’re back. We will pick up where we 

left off and start with Senator Cruz for his questions. 

STATEMENT OF HON. TED CRUZ, 

U.S. SENATOR FROM TEXAS 

Senator CRUZ. Thank you, Mr. Chairman. 

Mr. Ross, congratulations to you and your family on this nomination. I think you’re going to do a terrific job, and I look forward to 

this Committee working closely with you. 

76 

I’ll tell you one of the things I’m most excited about. You and I 

had an opportunity to visit at length, and your commitment to regulatory reform, to working to reduce the burdens of Washington on 

small businesses and job creators, I think is critically important, 

and I think it is shared by Cabinet appointees throughout this administration, and that is one aspect that is going to have among 

the most dramatic impacts on bringing back jobs, expanding the 

number of high-paying jobs, and raising wages across the country, 

and so I commend you for that. 

I want to talk about a number of specific areas. I want to start 

with addressing spectrum, which, as you know, has been a long 

time interest of this Committee. And the demand for spectrum continues growing at remarkable levels. Indeed, U.S. mobile data doubled usage from 2012 to 2013, and it’s projected to increase by 650 

percent by 2018. 

And spectrum is always scarce, but that’s exacerbated by the fact 

that the Federal Government owns or shares roughly half of the 

spectrum, and that presents both a challenge and an opportunity. 

It is a challenge in that government agencies have been notoriously 

reluctant to give up or share any of the spectrum that they have 

control of. It is an opportunity in that it provides the potential for 

billions of dollars of revenue to the Federal Government while at 

the same time opening up new spectrum that can create millions 

of high-paying jobs and increase wages across the country. 

So I wanted to ask you, I think there is room for a lot of creative 

policymaking working with your fellow Cabinet members who have 

control of spectrum to find a way to incentivize those agencies to 

work to make more spectrum available for the public and have it 

be a win-win all around. I wanted to ask you to comment on that, 

and, in particular, for your commitment to work with me and work 

with this Committee to explore significantly increasing the bandwidth and spectrum that’s available to the public and the revenue 

accordingly that would be available to the Federal Government. 

You need to turn your microphone on, sir. 

Mr. ROSS. I think it’s absolutely essential, Senator, that we do 

that. I think the tricky part is the one that you and I discussed at 

some length, which is, how do you incentivize other agencies to 

give up the spectrum that perhaps they don’t really need? I think 

there is a natural tendency for everyone to want to keep on to 

things in case they need it. 

So I think the tricky thing, which probably would involve public 

policy questions for the Congress, would be, how do you provide 

some sort of an incentive? If there is something that Commerce 

itself can do, if confirmed, I will do my best to put that into effect, 

but I don’t see anything immediately obvious as a solution that 

Congress itself could do. 

Senator CRUZ. Well, I look forward to our working together and 

to solve that together creatively. 

Let me shift to a different topic, which is there has been growing 

concern about China making acquisitions in the United States, 

and, among other things, gaining significant influence in the U.S. 

movie industry, making major acquisitions, potentially creating an 

environment where entertainment companies in the United States 

engage in self-censorship because of foreign ownership. That conVerDate Nov 24 2008 09:55 Jul 10, 2017 Jkt 075679 PO 00000 Frm 00080 Fmt 6633 Sfmt 6601 S:\GPO\DOCS\25974.TXT JACKIE
77 

cerns all of us who care about free speech and do not want to see 

speech censored by other nations. 

Do you share those concerns? And what steps do you see potentially that we could take to mitigate those concerns? 

Mr. ROSS. Thank you, Senator, for that question. I think it’s one 

of the most important questions facing us right now. And it’s not 

just food. The food is certainly an element of national security by 

any measure, but it’s also little high-tech companies. They’re making a lot of venture capital investments, and maybe the dollars 

aren’t so significant, but the technology potentially is. In areas like 

semiconductor, I’m very, very concerned about that because they 

are the world’s largest—they, the Chinese, are the world’s largest 

consumer of semiconductors, so far are mainly importing it a lot 

from here. And semiconductors are a basic building block. 

Second, when President-elect Trump convened the high-tech 

CEOs a few weeks ago, I was struck to learn from them that the 

closer they get to content, the more constrictive the Chinese are on 

their activities. So it seems not very reciprocal that they want to 

control entertainment and other media here and yet are denying 

our companies anything getting remotely close to that. So there 

isn’t even a balance, and that’s a separate problem that’s characteristic of a lot of the relationships with them. 

Senator CRUZ. I look forward to working with you on that issue. 

My time is expired, but let me briefly ask a final question, which 

is this Committee has expressed considerable concern over the decision of the prior administration to transfer control of ICANN, the 

basic infrastructure of the Internet, to a consortium of foreign 

countries, including countries like Russia and China and Iran. 

Do you share those concerns and will you commit to working 

with this Committee to ensure that we protect free speech on the 

Internet and that we do not allow enemies of free speech to exercise authority that restricts our freedoms here in America? 

Mr. ROSS. Yes. As such a big market and really as the inventors 

of the Internet, I’m a little surprised that we seem to be essentially 

voiceless in the governance of that activity. That strikes me as an 

intellectually incorrect solution. But I’m not aware of what it is 

that we actually can do right now to deal with that. It exists. If 

some realistic alternative comes up, I’ll be very interested to help 

explore it. 

Senator CRUZ. Very good. Thank you. 

Thank you, Mr. Chairman. 

The CHAIRMAN. Thank you, Senator Cruz. 

Senator Baldwin is up next. 

STATEMENT OF HON. TAMMY BALDWIN, 

U.S. SENATOR FROM WISCONSIN 

Senator BALDWIN. Thank you, Mr. Chairman. 

And, Mr. Ross, it’s good to see you again. I appreciate your coming by my office last week to discuss various trade issues, and 

that’s where I want to start. You authored the Trump Trade Doctrine, and it’s something I think I shared with you. At first glance, 

I agree with substantial parts of it. 

Like you and President-elect Trump, I believe that we need a 

new approach to trade, and I hope that we can, in fact, work toVerDate Nov 24 2008 09:55 Jul 10, 2017 Jkt 075679 PO 00000 Frm 00081 Fmt 6633 Sfmt 6601 S:\GPO\DOCS\25974.TXT JACKIE
78 

gether on creating a new trade agenda that increases wages, creates jobs, cracks down on cheating from countries like China, and 

strengthens the manufacturing sector in our country and in states 

like Wisconsin. 

I hope that we can work together to achieve these goals in the 

years ahead. While trade has gained a lot of national attention recently, it’s really been on the top of my mind for many years, and 

certainly my constituents, too. Given that we share some of the 

trade priorities, I would like to take the opportunity of this Q&A 

to drill down a bit further into some of your plans to ensure that 

they will improve economic opportunities of Wisconsinites, who are 

on the brunt of some bad trade deals very directly. 

Mr. Ross, you and the President-elect have spoken often about 

your desire to renegotiate one of our Nation’s trade agreements, 

NAFTA. I, too, have concerns with that agreement, most notably, 

its prohibition of Buy America programs. The procurement chapter 

of that agreement allows Mexican and Canadian companies to bid 

for American taxpayer-financed projects as domestic companies. 

Can you commit to eliminating the procurement chapter in 

NAFTA? 

Mr. ROSS. I think all aspects of NAFTA will be put on the table, 

and that certainly is going to be a topic that would come up, but 

you don’t have a deal on anything until you have a deal on everything, so exactly what would come in a final treaty or not is a little 

bit premature to say, but I’m certainly aware of the issue and certainly aware of the President-elect’s view about Buy America. 

Senator BALDWIN. Let me ask it then in a slightly different way, 

understanding the complexities of renegotiating multilateral trade 

agreement. Going forward, do you believe that our trade agreements should allow foreign companies to bid as American companies for taxpayer-funded projects? 

Mr. ROSS. I think it’s a highly questionable practice, and I think 

that it is one that has to be done with extreme care. There are 

probably some few segments where there may be a technology that 

someone has that we can’t avail ourselves of. There may be some 

circumstances where it’s totally appropriate. But many countries 

have the equivalent of Buy America, so that’s not an unusual factor. 

And the Chinese, most of all, have very good—good in the sense 

of strong—policies, and I think that there should be a reciprocity, 

and at least if American companies can’t bid on projects there, it 

doesn’t strike me as very logical that their companies should be 

able to bid on projects here. 

Reciprocity seems to me as a fundamental principle, even of the 

WTO, and it’s one that’s mostly honored in the breach by some of 

our major trading partners. 

Senator BALDWIN. In the Trump Economic Plan, you discuss the 

outsourcing phenomenon as caused by both a push of burdensome 

American regulations and the pull from foreign countries who do 

not have our labor or environmental standards. You’ve also been 

critical of the Obama administration and their actions to prevent 

climate change and to protect labor rights domestically. 

79 

In order to level the playing field, as you propose, will you commit to holding our trading partners to higher standards or only to 

lowering ours? 

Mr. ROSS. Well, the existing trade agreements have very, very 

weak enforcement in general, and particularly weak enforcement 

on environmental and labor. Take Mexico for example. The minimum wage in Mexico has barely changed in pesos for quite a few 

years, and the peso has depreciated quite a lot against the dollar. 

So on a purchasing power basis, the average Mexican worker is far 

worse off than he or she was 5 or 10 years ago. That was not the 

original intent of NAFTA. One of the original intents was to bring 

up the standard of living there, bring up the labor conditions there, 

make them a little bit more stable and more prosperous economy, 

and, frankly, reduce the gap in productivity-adjusted wages between the two countries. It hasn’t worked that way, and that has 

to be, or if I’m confirmed, will be, a very serious topic for consideration. 

Senator BALDWIN. Thank you. 

The CHAIRMAN. Thank you, Senator Baldwin. 

Senator Moran. 

STATEMENT OF HON. JERRY MORAN, 

U.S. SENATOR FROM KANSAS 

Senator MORAN. Mr. Ross, thank you very much for your interest 

in public service and your care for Americans and their jobs. Let 

me first just associate myself with what the Senator from Mississippi, Senator Wicker, indicated to you and the conversation that 

we had in my office. I would add to his voice that an infrastructure 

program needs to include broadband expansion, particularly in 

rural and unserved areas. And so Mr. Wicker raised that topic with 

you. I won’t spend any more time on it. 

I wanted to talk a bit about spectrum, wireless. First of all, Senator Udall and I have worked on legislation that was included in 

the Bipartisan Budget Act of 2015. It provided more funding and 

flexibility for Federal agencies to use the Spectrum Reallocation 

Fund for research and development related to their spectrum activities. It was our intention that this additional funding and flexibility would result in a more efficient use of spectrum by Federal 

users and free up more government spectrum for commercial use. 

OMB oversees that fund, but it does so in consultation with the 

National Telecommunications and Information Administration 

that’s part of the Department of Commerce. I would like to have 

you assure me that the SRF will be utilized to achieve those goals 

in your administration at the Department of Commerce. 

And as a follow-on, I would indicate to you in following the Senator from Nebraska’s commentary about the use of spectrum, 

there’s a 2011 GAO Report that basically said that NTIA needed 

to improve its spectrum management policies to promote more efficient use of Federal spectrum. And the way I read that, I think it 

bluntly indicated that NTIA oversees—while it oversees the spectrum, it is often pushed around by bigger Federal agencies and departments, and therefore it’s difficult to get them, those agencies 

and departments, who have little incentive to cooperate, to give up 

80 

their valuable spectrum, and I would ask you, what can be done 

at NTIA to get this to work better than it does today? 

Mr. ROSS. Well, I don’t intend to be pushed around by anyone. 

Senator MORAN. I like the answer. 

[Laughter.] 

Senator MORAN. It also allows me to ask an additional question. 

[Laughter.] 

Senator MORAN. We’ve taken a special interest in the efficiency 

of IT procurement. And you indicated in your testimony that it’s an 

area of your—that you have interest in. Senator Udall again and 

I introduced an Act we call ‘‘Move It.’’ It later evolved into legislation that is designed to better accommodate agencies who seek to 

update their IT systems, but they’re unable to do so in their current budget framework. I again would ask you to commit attention 

toward modernizing the Department of Commerce and its IT infrastructure, particularly its legacy IT. And do you believe that the 

Federal Government can better leverage commercial cloud-based 

solutions to save money and increase security? 

Mr. ROSS. Well, I’m a very big proponent of cloud. We’ve used it 

a lot in private sector. And as far as we can tell, it is not only more 

efficient, it’s probably also more secure for lots of very complicated, 

technical reasons. I think that it’s a very important thing for government to do. And also to have systems that talk to each other. 

There’s an awful lot of siloing both within Commerce and outside 

of Commerce, and I think that is not a very satisfactory end result. 

We need to all be on similar quality and efficiency of communication. 

I think the tricky part of it is, where do you get the funding to 

make the changeover? Because there are some one-time costs to 

doing these. Commerce already has several initiatives underway, 

and I’m certainly encouraged by what I’ve learned about those, and 

I think much more could be done. 

Senator MORAN. Mr. Ross, thank you. I would indicate that too 

many times the headline issues that we can deal with are left— 

they overcome the good government issues that so desperately need 

attention. 

Let me finally say, as I indicated in my office, that trade is an 

important—exports are an important matter to Kansans, manufacturing of airplanes sold around the globe, agriculture commodities. 

I would highlight that for you, but I also would point out the view 

that China recently increased its anti-dumping duties and its antisubsidy tariffs on U.S.-dried distillers grain. The decision came just 

days after the Chinese government decided to increase tariffs on 

U.S. ethanol from 5 percent to 30 percent. 

Kansas farmers also continue to be held back by China’s refusal 

to approve new varieties of biotech corn, which happened in 2014. 

I supported a WTO case that brought challenging China’s domestic 

support of rice, corn, and wheat. 

My point is that too often we negotiate trade agreements and 

they are designed to level the playing field in regard to tariffs, that 

in all the other issues that a country can bring to play, we highfive ourselves with the satisfaction of reaching a trade agreement, 

but then we miss the point of defending and fighting the other 

81 

things that prevent our products from getting into other countries, 

and it seems compatible with what you’ve been testifying. 

Mr. ROSS. Oh, it is. I’ve been a victim over the years of some of 

these non-trade and untariffed trade barriers, and they’re quite insidious, but also, unfortunately, they can be quite effective. We 

need to deal with those. 

It’s not enough to have a trade agreement that just hits tariffs, 

and it’s one of the reasons I think there should be systematic reopeners of trade agreements after a few year period because it’s 

hard to anticipate the ingenuity that some of these folks have to 

get around the intent of the agreement. 

So I think an automatic reopener, whether it’s a sunset provision 

or just a reopener, would be a very useful thing to look back on 

what was originally contemplated, look back on what was originally projected to occur, and to say, well, if we didn’t achieve those 

objectives, why not, and what do we need to do to fix them? And 

I think an agreement like NAFTA, that is more than 40 years old 

and there has never been a systematic transparent review of it. 

Senator MORAN. Mr. Ross, if you are confirmed, I intend to be 

gum on your shoe in regard to the exports of agricultural products 

and commodities from Kansas and manufactured airplanes and the 

other things we do in the global economy. 

Mr. ROSS. I got that impression the other day, sir. 

Senator MORAN. Thank you, sir. 

The CHAIRMAN. Thank you, Senator Moran. 

He’s gum on our shoe a lot, too, so just to that point, we’ve been 

victims, my state has, our agricultural producers, particularly bee 

producers of this gaming, and we call it honey laundering, which 

is something that the Chinese have been particularly effective at, 

and we do need to enforce our laws and make sure that people are 

playing by the rules. So a very important issue to a lot of people 

on this Committee. 

Senator Capito. 

STATEMENT OF HON. SHELLEY MOORE CAPITO, 

U.S. SENATOR FROM WEST VIRGINIA 

Senator CAPITO. Thank you. 

Good afternoon now, Mr. Ross, and thank you as well for joining 

me in my office last week. I enjoyed our conversation. And I just 

wanted to kind of reiterate a few of the issues that you and I 

talked about, and no surprise here for you in terms of what’s important to the state of West Virginia. We talked about the 

transitioning of our state from a coal economy hopefully to a more 

high tech, keeping our coal economy going but also trying to diversify. 

And one of the administrations under the Department of Commerce is the EDA. Recently, the EDA has taken a renewed interest, thank goodness, at my and other people’s urging, to really look 

at the severe job loss in our regions and to use those dollars to 

maximize the effect of entrepreneurship, capacity building, and 

other ways for us to diversify our economy, whether it’s agriculture, 

high tech, energy sector jobs. 

And so I would just like to reiterate to you, since the last 2 years 

we’ve made good strides here, that this is important. Even though 

82 

it’s not a large agency in terms of appropriation, it does and can 

have a far-reaching effect in the distressed areas in our country 

where I’m living and where many of us are. 

So I would just like to reiterate my commitment and hopefully 

your commitment to work together to see that the EDA continues 

the progress we’ve made over the last several years. 

Mr. ROSS. Yes. I think EDA can be a very valuable source of seed 

money for projects—— 

Senator CAPITO. Right. 

Mr. ROSS.—and kind of matching things, triggering other sources 

of economic help to get things jumpstarted. I think given its budgetary constraints, that’s probably the most that it can do, but I 

think that can be a very valuable function if properly applied. 

Senator CAPITO. It absolutely can, and in some of the rural areas 

where we have trouble attracting capital and attracting investment, it can be first in or last in, and have some complete projects 

at the same time. 

So I don’t want you to think that you’re in an echo chamber, but 

I am going to talk a bit about rural broadband, which we discussed. 

I was really pleased to learn, and you told me that day, but you 

reiterated in your remarks, that you have some direct experience 

with broadband deployment in the state of Florida. A little bit different terrain than the state of West Virginia, that’s for sure, but 

the rural areas are really behind here. And, again, if we’re 

transitioning or if we’re going to go to the next economy, if we don’t 

have that stool of infrastructure development, we’re going to be further behind. 

Secretary Chao was here last week. I reiterated to her how important I think an infrastructure package has to include broadband 

deployment in the underserved and unserved areas. And since you 

have experience in this issue, I’m sure that you can see what it can 

do to the development of areas that have been undeveloped, and 

what it can do for health care, education, and other aspects of people’s quality of life. 

So, I look forward to working with you in this area and learning 

from you on the best ways to get to that broader and bigger elimination of the digital divide that exists. 

Mr. ROSS. Thank you very much, Senator. 

Senator CAPITO. Last, I mentioned to you that, and I was glad 

to see in your remarks you talked about NOAA and how important 

it is from the aspect of living in Florida. NOAA has a large and 

significant presence in West Virginia, and I think I can reasonably 

state it was probably an earmark from Senator Robert C. Byrd, so 

it’s still there and doing well, and it’s the primary backup for all 

of NOAA’s emergency contingency operations. It’s key to making 

sure, for instance, the GOES–16 satellite that was just launched, 

this facility serves as the consolidated backup facility for the mission. 

We’ve still got capacity to grow here, so we’re hoping that NOAA, 

because I have confidence in our abilities now, will work with us 

in West Virginia to grow that footprint and use us as the highly 

technical skilled folks that we have. And we’re growing a technology corridor down through sort of the middle of the state to try 

83 

to work with that. So I want to work with you with NOAA, and 

hopefully we can visit those facilities together. 

Mr. ROSS. Yes. From everything I’ve heard, NOAA is quite happy 

with the relationship they have with the local community there. 

Senator CAPITO. Well, good. That’s great. The FBI is right down 

the street, so maybe they have to be happy. 

[Laughter.] 

Senator CAPITO. Thank you very for—sorry, I think I might be 

the last one of the—oh, no. I forgot Chairman Inhofe right to my 

left here. So I appreciate it and I look forward to working with you 

at the Department of Commerce and look forward to voting in the 

affirmative for your nomination. 

Mr. ROSS. Thank you, Senator. 

Senator CAPITO. Thank you. 

The CHAIRMAN. Thank you, Senator Capito. 

Senator Inhofe is next, and then Senator—— 

STATEMENT OF HON. JIM INHOFE, 

U.S. SENATOR FROM OKLAHOMA 

Senator INHOFE. Yes. Thank you, Mr. Ross. And I enjoyed, first 

of all, the visit we had in my office. And I’ll make mine a lot 

quicker than most of them. I do apologize. The reason for all of us 

being late is that, in my case, we have our Oklahoma Attorney 

General up, has been nominated to be the Director of the EPA, and 

I have more than just a casual interest in that. In fact, the last 

four of the Members here are late because they’re over at that 

hearing. So this is not the way it should be, I suppose, but it’s the 

best that we can do. 

Let me just mention one thing. Back, way back, when NAFTA 

was passed, in our delegation of seven Members from Oklahoma, 

I was the only one who voted against it. And I would just like to 

be drawn into the loop as you make progress on the changes you 

may want to make just so that we’ll be aware of that and can perhaps participate in a small way. 

Mr. ROSS. Surely. I believe there is a consultative process provided in the TPA regulations and that, therefore, there will be at 

least that level of consultation. 

Senator INHOFE. Good. I talked to you also about Taiwan being 

a close friend and ally of the United States, and our ninth largest 

trading partner. That’s very significant, and we could further 

strengthen the U.S.-Taiwan relationship by engaging in direct bilateral trade agreements. 

Now, these, in negotiations, would need to address Taiwan’s current ban on importing pork containing ractopamine, a food additive 

that the Chairman of this Committee has talked about, he’s concerned about some of the things that we want to do with Taiwan. 

So I would say, as Secretary, would you just consider prioritizing 

the United States’ trade relationship with Taiwan and consider laying the groundwork for direct bilateral negotiations? 

Mr. ROSS. Well, as you know, that’s a very complex issue—— 

Senator INHOFE. I know it is. 

Mr. ROSS.—because of the One China/Two China policies. So I 

think that there we would need some guidance from the President 

as to what direction he wishes to go. 

84 

Senator INHOFE. And that’s the very reason I worded it the way 

I did, just consider. 

As I mentioned at my office, you were kind enough to give me 

quite a bit of time. I’ve had a very close relationship with Africa 

and have actually made 144 African country visits. I am concerned 

about Africa and our lack of a good relationship that we’ve had historically. 

Now, when we did our NDAA, National Defense Authorization 

Act, I put an amendment on there that we titled the African Free 

Trade Initiative Act that was passed that is now a part of the bill 

that is going to take care of our NDAA needs for the next year. 

Now, it’s a step in the right direction to partner and secure deeper ties with a fast-growing economy such as that in Sub-Sahara Africa. There are nations eared to engage in direct bilateral negotiations on trade with the United States, and I just would hope that 

you would work with me to focus U.S. trade efforts in Africa. 

Mr. ROSS. It’s almost impossible to imagine ignoring such a large 

continent with such rapid growth to it with such strategic importance and potentially such economic importance. So clearly there’s 

a role for us to play with Africa, and I think one of the concerns 

that we should all share is that China has been all over the map 

in Africa building high schools, building soccer playing fields, doing 

all kinds of things, and gobbling up natural resources as well. Nature abhors a vacuum, and to the degree that we’ve let a vacuum 

be created there, there’s a countervailing force that’s going to fill 

it, and that’s not us. 

Senator INHOFE. That is a beautiful response. I appreciate that 

very much. I might add China doesn’t even use their labor when 

they’re in these projects. 

So anyway, I look forward to supporting your confirmation, and 

thank you very much for being willing to do it. 

Mr. ROSS. Thank you, Senator. 

The CHAIRMAN. Thank you, Senator Inhofe. 

And I think last up on the first round is Senator Markey. Senators Inhofe and Capito both left time on the clock. I think that’s 

the first time that’s happened today, so we must be winding down. 

Senator Markey. 

STATEMENT OF HON. EDWARD MARKEY, 

U.S. SENATOR FROM MASSACHUSETTS 

Senator MARKEY. Thank you, Mr. Chairman, very much. 

Mr. Ross, we’re in the world of the Internet of Things, as the 

Internet is built into the appliances which we use, the machines 

which we use, the automobiles, the SUVs, everything now is part 

of the world of the Internet of Things. But IoT isn’t just going to 

stand for Internet of Things, it’s also going to stand for the Internet of Threats to the security, to the privacy, of all Americans, as 

this technology is built into every device. 

So as we move forward, we have to think at the same time about 

cybersecurity, about privacy, about what are the protections which 

we’re going to give to Americans so that their privacy and security 

is not constantly subject to compromise. Could you tell the Committee what your views are on that issue and what you would recommend that we do in order to protect Americans? 

85 

Mr. ROSS. Well, we’ve had some direct—I’ve had some direct experience with it. As you know, we’ve invested in a number of small 

and medium-sized banks around the country, and even they are 

subject to cyber attacks from all over the place. Some are just from 

hackers who simply seem to want to prove that they can do it, but 

others are evil ones trying to steal people’s identities, trying to 

steal people’s money, all kinds of things. 

So it certainly is a serious problem and it’s the unfortunate 

flipside of interconnectedness, is, how do you balance interconnectedness and two-way communication and two-way or multiple-way 

everything with protecting people? 

I think we need to be extremely vigilant and keep developing 

new and better systems because the people who have bad intent 

are certainly trying to develop new and better ways to break in. So 

it’s a continuing challenge. 

Senator MARKEY. I’ve introduced legislation, which is essentially 

a cyber labeling program, that would just say to industries of the 

United States you have to label your devices in terms of how secure 

they are from being hacked, from having privacy compromised. 

What do you think about that idea? And don’t you think on a voluntary basis that is something that we could ask for American industry now to adopt as a practice? 

Mr. ROSS. Well, I’m quite sure that American industry is becoming more and more sensitized to the problem. There is no company 

I know of, of any size whatsoever, that hasn’t been having these 

threats, ranging from electric utilities to every other kind of endeavor. 

So I think everybody appreciates the problem. Exactly what’s the 

solution and whether one size fits all I think is a more complicated 

issue and one that needs a lot of very thorough investigation, 

but—— 

Senator MARKEY. And I appreciate that. The one problem, of 

course, is that there are many companies that are never going to 

invest in cybersecurity protections, and that is where the problem 

is going to be created, where the vulnerability is going to be created. So I’m looking forward to working with you on that. 

Senator Fischer and I have introduced the Federal Spectrum Incentive Act, which offered new incentives for Federal agencies to 

relinquish underutilized spectrum. I know that Senator Cruz just 

asked about whether we should incentivize Federal agencies to vacate or share spectrum they don’t need. Will you commit to working 

with Senator Fischer and me so that we can try to find a way of 

moving forward legislation that does create those incentives for the 

Federal agencies to free up the spectrum that the private sector 

could use? 

Mr. ROSS. Right. Well, I think it probably would need to be a legislative solution because it’s fairly clear to me that Commerce does 

not have the power to do it on its own. So to the degree that there 

is going to be an incentive given, I think it would absolutely have 

to be legislated. 

Senator MARKEY. And New Bedford, Massachusetts, is the highest grossing fishing port in the United States. What actions would 

you support to ensure that seafood brought to the market is legally 

caught and sustainable? 

86 

Mr. ROSS. Well, I think that’s very, very important. For one 

thing, in terms of the domestic catch, clearly the objective should 

be the maximum sustainable yield, so that, as a starting principle. 

But also a lot of the imports that come in are produced under conditions that would not be tolerable in the United States, and I 

think that needs to be dealt with. It needs to be dealt with also 

at the port level. 

My understanding is that if a shipment of food comes in that for 

whatever reason is rejected at a given port, all that happens is 

then that vessel diverts to another port and hopes to get the same 

food in. Well, since only 2 percent of the cargos are ever inspected, 

that means they’ve got a 98 percent chance to get away with it the 

second time, and meanwhile the food is a couple of days older and 

perhaps a couple of days worse condition. So I think we need to 

deal with it at a whole series of levels. 

Senator MARKEY. Thank you, Mr. Chairman. 

The CHAIRMAN. Thank you, Senator Markey. 

And, again, I would echo what’s been said about finding more 

spectrum. We’re going to absolutely have to have it. We have 16 

billion wireless devices today and headed toward 50 billion by 

2020, so it’s absolutely essential. 

Senator Blumenthal I think wanted to ask some additional questions. 

Senator BLUMENTHAL. I have just a few questions. As you know, 

one aspect of the very broad and varied responsibilities that you 

would have, if confirmed, pertain to fighting boycotts of American 

companies that, in effect, refuse to do business with countries. 

Israel is one where action has been taken. 

Your Department has within its authority the Bureau of Industry and Security, which is tasked with prohibiting businesses with 

a U.S. presence from boycotting those countries like Israel based on 

foreign laws or at the request of a foreign government. 

In 2015, I wrote to the Commerce Department, and I was joined 

by a number of my colleagues, including several on the Committee: 

Senators Booker, Schatz, and Markey. We wrote in response to a 

number of claims and incidents in which travelers with Israeli 

passports were denied. And we wrote to the United States Department of Transportation, which agreed that the incidents warranted 

further inquiry. 

The Department of Commerce, in effect, deflected our inquiry, 

providing little information or concern. That raises for me a very 

important overall issue, standing up to efforts to boycott Israel or 

any other country in these kinds of business dealings. 

I’m asking you to commit to make this issue a priority and agree 

to enforce the anti-boycott laws to the fullest extent of your authority. We’re talking about existing laws that need enforcement. 

Mr. ROSS. I believe, Senator, that the President-elect has made 

clear his pro-Israel attitude, and I certainly will do my part to uphold the laws. 

Senator BLUMENTHAL. Thank you. I would like to ask you also 

about cybersecurity, following up on the very helpful comments you 

just made. As you well know, this Nation is under cyber attack literally every day from the Russians, Chinese, North Koreans. There 

have been repeated instances of it. In this very room, where the 

87 

Armed Services Committee meets and holds hearings—I’m a Member of that Committee—we’ve heard chilling and staggering accounts about the extent and magnitude of cyber warfare. 

Would you agree that this Nation has to develop better policies 

to deter and punish the Russians and other countries that currently are attacking us literally every day and interfering with our 

economic system, threatening our economic network, our electronic 

grid, our transportation system, as well as our military defense? 

Mr. ROSS. I absolutely do, Senator Blumenthal. I think to me the 

most terrifying form of warfare would be if there was some simultaneous cyber attack on our grid, on the banking system, and on 

our transportation system. That would be quite a devastating 

thing, and yet, in theory, absent some real protective measures, 

that could happen. 

Senator BLUMENTHAL. And we should send the Russians or any 

other country that would threaten us in that way an unmistakable 

message that such an attack will be met by a aggressive effective 

response. 

Mr. ROSS. I think we don’t have very much choice because the 

danger is both large and imminent. 

Senator BLUMENTHAL. And imminent is also extraordinarily 

frightening because so much of our Nation depends on the interconnection between different sectors of our economy, and our private sector needs to be given impetus to do better. 

Mr. ROSS. Yes. And it was either in my discussion with you or 

perhaps with Senator Markey that we talked about the situation 

where a fellow had a generator in his house in case the power went 

off, but the generator was interconnected or was on natural gas, 

which presumably would also get cut off. So partial prophylactics 

are not a very good solution in this area. We need things that are 

quite all-embracing and quite thorough. 

Senator BLUMENTHAL. Would you agree with me that deterrents 

against this kind of attack should include measures not only in the 

cyber domain but also economic sanctions if necessary, and foreign 

exchange sanctions? 

Mr. ROSS. Well, I think what we need is an overall coordinated 

policy to deal with these cyber problems. But it gets into a lot of 

departments that go well beyond Commerce, as you’re aware. 

Senator BLUMENTHAL. I fully agree, but Commerce can play and 

should play an important role. 

Mr. ROSS. I promise you we’re on it. 

Senator BLUMENTHAL. One last question. I will be introducing a 

measure that would prohibit look-alike toy guns, which can cause 

tragedies. You may be familiar with the tragedies that have occurred around the country where police in tense situations encounter sometimes young people with look-alike toy guns that they mistake for real weapons, and the result is the police respond by using 

their weapons and people may be injured or killed. 

The measure that I am going to introduce will strengthen the 

protections against those kinds of look-alike or toy guns. I am asking for your support because the Secretary of Commerce, along 

with the Consumer Product Safety Commission, the CPSC, would 

have responsibility for developing regulations under this law. 

88 

I’m asking for your support to ensure that toy look-alike or imitation firearms are not allowed to enter Commerce unless they are 

made abundantly clear to be toy guns. Will you commit to supporting such legislation? 

Mr. ROSS. I look forward to reading the legislation and discussing it with you, Senator. 

Senator BLUMENTHAL. Do you agree, in principle, that this kind 

of protection is necessary? 

Mr. ROSS. Well, I think anything that prevents people from being 

killed or injured unnecessarily is a good idea, but we would have 

to look at—I would have to look at the actual draft legislation. 

Senator BLUMENTHAL. In the course of your investments or other 

endeavors, have you ever done any work on smart guns? 

Mr. ROSS. Smart guns? No, sir. What is that? 

Senator BLUMENTHAL. Well, guns that may be limited to firing 

or use if they have the biometric kinds of—— 

Mr. ROSS. Oh. Yes, I’ve heard of it. I’ve never seen them in action, and so I don’t really have a very well-formed opinion of them. 

Senator BLUMENTHAL. Well, I look forward to talking to you 

about this topic. I’m out of time. And you’ve been very patient because you do have jurisdiction over the National Institute of Standards and Technology, which could play a part in developing standards and technology for smart guns. 

Mr. ROSS. Sure. Well, developing standards for any innovative 

process is obviously a very critical function and one that the Department takes quite seriously. 

Senator BLUMENTHAL. I hope you will take this one seriously. I 

know you will. 

Mr. ROSS. I will, Senator. 

Senator BLUMENTHAL. Thank you. 

The CHAIRMAN. Thank you, Senator Blumenthal. 

Senator Sullivan. 

Senator SULLIVAN. Thank you, Mr. Ross. And I know you heard 

that a number of us are moving between committees for other confirmation hearings. So if I ask a question that you already answered, please bear with me. 

But I very much appreciated your focus in earlier rounds of questions on economic growth where you’re talking about energy. As 

you know, in Alaska, we have a lot of it, and we need to produce 

more of it. And we’re very much looking forward to having an Executive Branch that wants to help us, not stop us from producing energy, like we have with the Obama administration, rolling back 

some of the unnecessary regulations, infrastructure, and then 

trade. 

And I think on the issue of trade, I know you’ve answered a couple questions on it, but as you and I discussed, I believe the Trump 

administration is going to be the first administration in U.S. history to come into office with trade promotion authority, and a number of us supported that in part because President Obama had 2 

years of it, but we were hoping the next President would be a Republican and would have 4 years of it. That’s happened. The Administration doesn’t have to spend one ounce of political capital on 

getting TPA, and that’s usually hard to get over the goal line. 

89 

So, can you just talk a little bit about your views on bilateral 

trade priorities? But also there have been reports in the press 

about some kind of 35 percent tariff. That would seem to me to be 

about as anti-growth as possible. I know you mentioned in some of 

your answers Smoot-Hawley. But how are you going to look at the 

trade element and really take advantage of what’s an enormous opportunity, which is TPA, that you can use that’s a very, very powerful tool to help American exports? 

Mr. ROSS. Well, TPA is an important tool because what it gives 

is relative assurance to the party with whom you are negotiating 

that you can deliver because any negotiation is handicapped if 

you’re not sure the other guy can deliver on what has been negotiated. So it’s a big help in that regard. 

And there are, as you know, some consultative steps that are required vis-a`-vis between the President and the Congress on TPA. 

And I’m quite sure that if he uses it, the President-elect will adhere to those requirements. So those are good and useful components of the trade process. 

And in terms of the 35 percent and some of the other statements, 

I think the President has done a wonderful job preconditioning the 

other countries with whom we’ll be negotiating that change is coming. The peso didn’t go down 35 percent on accident. Even the Canadian dollar has gotten somewhat weaker, also not an accident. 

So I think he has done some of the work already that we need 

to do in order to get better trade deals because when you start out 

with the adverse party understanding that he or she is going to 

have to make concessions, that’s a pretty good background for any 

negotiation to begin. So I’m very grateful that he has made this 

task a little bit easier by alerting everybody that change is coming. 

Senator SULLIVAN. Well, would 35 percent tariffs be pro-growth 

or not? 

Mr. ROSS. Oh, I think that the pro-growth thing is stimulating 

exports much more than just curtailing imports, but tariffs can 

be—countervailing duties and punishment to people for dumping is 

essential because there are inappropriate and illegal trade practices being performed, and if you don’t really punish them, you’re 

never going to modify their behavior. So there is certainly a role 

for it there. 

Senator SULLIVAN. Let me ask just a related question when 

you’re talking about trade tools, and that’s—I know there’s been a 

lot of focus on China. That’s in the area of reciprocity. But right 

now, as you know, there are stories, and it’s happening, China has 

two very large investment funds where they’re buying up strategic 

companies in Western Europe, trying to in the United States. Some 

are strategic, some are just important, you know, they’re looking 

certainly at the movie industry in Hollywood and ship manufacturers. 

And yet I think it’s pretty common knowledge that if our companies wanted to go to China and buy up a big movie industry or buy 

up a big ship manufacturer or buy up a tool and die industry that’s 

very—or a company that’s very strategic, the answer would certainly be no. 

Mr. ROSS. Right. 

90 

Senator SULLIVAN. So in the WTO, their accession, as far as I 

know, did not have a reciprocity requirement with regard to investment. However, do you think it would be in the interest of the 

United States—and it’s a debatable topic here, a number of us are 

looking at legislation to maybe include investment reciprocity as 

part of the CFIUS process—do you think that would be wise or do 

you think that would undermine the vitality of the United States 

by restricting investment even though there is clearly no reciprocity going on right now between the number one and number 

two economies in the world? And in my view, it’s an unlevel playing field. China can do it, they’re doing it. If want to go over and 

do it, we couldn’t. How do we deal with that? 

Mr. ROSS. Well, I think reciprocity in an important concept in 

trade agreements, and I think there are other important concepts 

as well. To me, another one is simultaneity of concessions. We have 

tended in prior trade agreements to make our concessions up front, 

and the other party makes their concessions later, but the problem 

is that later sometimes doesn’t come, because when you have weak 

enforcement provisions and you’ve already made your concessions, 

it’s a little bit hard to unscramble the egg. 

So I think reciprocity is an important concept going forward. I 

think simultaneity is an important concept going forward. I think, 

as I mentioned I think while you were out of the hearing room, the 

concept of an automatic reexamination after a period of time to find 

out, well, what worked? what didn’t work? and what should we fix? 

I think there are a number of these conceptual issues that have 

not been present in prior trade agreements. But I would hope that 

if confirmed, I can contribute toward designing kind of a model 

trade agreement where we would introduce into it certain principles that would have to be in any agreement. I think it’s a huge 

mistake to start out each time with kind of a blank page from 

ground zero. It makes it take longer, it makes it harder to negotiate. 

The best negotiating tool is to be able to tell someone, ‘‘I can’t 

change this. This is official policy. You know it is. We’ve got it in 

10 other deals. We’re not going to give you anything different.’’ 

That’s a much better position, in my opinion, than starting out 

with a blank slate. 

Senator SULLIVAN. Thank you. 

Mr. Chairman, may I have the opportunity to answer—or ask 

one more question? 

[No audible response.] 

Senator SULLIVAN. Thank you. 

Mr. Ross, I wanted to talk just a little bit on the infrastructure 

element. I think you’re going to see a number of Senate colleagues 

on both sides of the aisle be supportive of doing more with regard 

to infrastructure. And as we talked about, one element that I think 

a number of us see as critical when we move forward on a big, 

large-scale infrastructure initiative is fixing the Federal Government’s broken permitting system. 

Mr. ROSS. Yes. 

Senator SULLIVAN. So whether that’s—on average right now it 

takes 6 years to permit a bridge in the United States of America. 

We had a hearing here on airport infrastructure last year. It took 

91 

the Seattle Airport to build a new runway 15 years to get the Federal permits. In Alaska, it took Shell 7 years to get the Federal 

Government’s permission to drill one exploration well in 100 feet 

of water. It’s a broken system. And if we have an infrastructure 

package that’s in the hundreds of billions without a dramatic overhaul of our permitting system, I fear it’s going to be money that 

can’t be deployed. 

Would you agree to work with us on not only focused on the financing of infrastructure, but the very, very important issue of fixing a broken Federal permitting system where this country used to 

build big things on time, and now we can’t permit a bridge inside 

of a half a decade? 

Mr. ROSS. Well, I know the permitting is an issue. I think it’s 

one of the reasons why there weren’t so many shovel-ready projects 

when President Obama got money for infrastructure. And the permitting isn’t just on big projects. In some parts of this country, if 

you want to put a porta-potty on a well site, you have to go get 

a permit, and it takes weeks to do that. That’s not even drilling a 

hole in the ground, it’s not invasive, it’s not anything. I think we’ve 

gone a little permit nutsy. 

Senator SULLIVAN. Well, I look forward to working with you on 

that, and I look forward to your speedy confirmation. 

Thank you, Mr. Chairman. 

The CHAIRMAN. Thank you, Senator Sullivan. All good lines of 

questioning. I know I have found the answers and responses today 

on some of the trade issues to be somewhat reassuring. I think 

there are a lot of folks who are spooked when they hear rhetoric 

surrounding 35 percent tariffs and that sort of thing, and I think 

you’ve given good insights into how that might be interpreted 

today. 

Senator Nelson I think has a couple of cleanup questions, and 

we’ll probably get you out of here shortly. 

Senator NELSON. Well, you have certainly seen by the questions 

today and the breadth of the subjects covered by the Commerce 

Committee the intense interest, and you have comported yourself 

quite well. You have been very detailed and non-evasive in your 

answers, and that is appreciated. And albeit the length of this 

hearing, let me assure you that this hearing is a piece of cake compared to some of the other nominees that are going through the 

process of the constitutionally required advise and consent. 

Your wife, Hilary, has been most patient back there and has not 

looked around the room. She has been very attentive, so my compliments to her as well. 

Just for a couple of cleanup things here. I want to insert in the 

record, Mr. Chairman, a letter by 10 scientists, many of whom are 

professors at Florida universities, having to do with a concern of 

our state being so fragile when it comes to sea level rise. And I 

would quote just one paragraph in this letter addressed to you. 

‘‘Like you, climate scientists are facing a distressing situation as 

we study the projected impacts of sea level rise. However, we remain optimistic that our challenges can be solved with American 

ingenuity, entrepreneurship, strategy and new technologies.’’ 

The CHAIRMAN. Without objection, we’ll have it included in the 

record. 

92 

[The information referred to follows:] 

January 17, 2017 

WILBUR ROSS, 

Invesco Global Headquarters, 

Atlanta, GA. 

Dear Mr. Wilbur Ross, 

Congratulations on your nomination. You have a distinguished career and now 

you are presented with the opportunity to become the next Secretary of Commerce— 

a position with enormous influence on American society. 

We are a group of Florida scientists, many of whom work daily with data from 

the National Oceanic and Atmospheric Administration (NOAA); one of the agencies 

you will be in charge of at the Commerce Department. 

Like you, we share an affinity for Florida. As a Florida resident, you know how 

precious the coastline is, and the fragile beauty of our state. 

You are known for your problem solving skills, and your ability to salvage distressed businesses. We were struck by a statement you made in your CNBC interview where you said, ‘‘the solutions are always more fun than identifying problems. 

We’re basically optimists even though we’re dealing with situations that have a lot 

of pessimism.’’ 

Like you, climate scientists are facing a distressing situation as we study the projected impacts of sea level rise. However, we remain optimistic that our challenges 

can be solved with American ingenuity, entrepreneurship, strategy and new technologies. 

We encourage you to use your exceptional problem solving skills to look closely 

at the intersection between our changing climate, our economy, agriculture, industry, jobs and human health. 

The Commerce Department defines part of its mission as ‘‘work[ing] with businesses, universities, communities, and the Nation’s workers to promote job creation, 

economic growth, sustainable development, and improved standards of living for 

Americans.’’ 

In your new role as the Secretary of Commerce, you have a unique ability to influence multiple sectors of our economy. You will direct scientific research both within 

government, and at universities through NOAA. You can also work with businesses, 

engineers, and industries to develop solutions to address climate and energy challenges. 

We call on you to: 

Protect our coastline. 

Florida has over 1,100 miles of coastline, a portion of which you are intimately 

familiar with, and surely appreciate. Current forecasts predict up to six feet of sea 

level rise in the next century. Under a worst-case scenario we could see two feet 

of sea level rise by 2060. And while that may seem like a distant threat, right now 

with king tides there can be ‘‘sunny day flooding’’ in coastal states. 

In order to protect our coastlines, it is crucial to continue the monitoring and projection of future environmental changes in the atmosphere and the ocean. None of 

this research can happen without adequate funding. We must prioritizing research 

funding in the direction of climate change studies, especially in the context of sea 

level rise. Vital observations and research into phenomena affecting climate change 

impacts, such as variations in the ocean circulation that can, and already are, increasing sea level rise along our coastline must be maintained. 

Support robust science. 

The same way that you evaluate companies before you purchase them, scientists 

are learning about our climate, our weather, our oceans, and our coast, so that policymakers can make informed decisions. We echo The Union of Concerned Scientists’ call for a strong and open culture of science and believe in adhering to high 

standards of scientific integrity and independence. You know from experience the 

role of in-depth research in executing a successful strategy, and so you should appreciate the value that scientists bring to the table to understand the impacts that 

change in our natural world will have on human systems—our ports, our coastal 

properties, and our weather patterns. 

Embrace clean technology. 

As the Secretary of Commerce you can help put America at the forefront of scientific research, and position us as leaders in the international competition for clean 

technology development. 

93 

We know many of your investments have been in traditional industries like coal 

and steel, but we encourage you to learn as much as you can about new energy technologies. Embrace clean energy solutions not only to address our energy needs but 

to create good paying jobs in our communities. 

The Department of Commerce encompasses much more than just NOAA, but we 

want to make a heart-felt plea to you to understand how incredibly important 

NOAA’s contribution to society is. NOAA states on its website that it ‘‘enriches life 

through science.’’ NOAA’s mission is ‘‘Science, Service and Stewardship.’’ 

You have an incredible opportunity to be a steward who will help restructure 

America’s energy problems, and turn our climate crisis into another American success story. 

We want to emphasize the magnitude of the problem—the future of Florida hangs 

in the balance. The stakes could not be higher. 

You are in a critical position to support sound science and solutions that can help 

America solve this problem. We implore you to recognize the urgency of climate 

change, and take your new position with great humility and the same dedication 

and tenacity you have shown throughout your career. 

Thank you, and good luck on your nomination hearing. 

Sincerely, 

Senthold Asseng, Professor 

Department of Agricultural and 

Biological Engineering 

University of Florida 

Keren Bolter, Research Affiliate 

Center for Environmental Studies 

Florida Atlantic University 

Jeff Chanton, Professor 

The John Widmer Winchester Professor 

of Oceanography 

Department of Earth, Ocean and 

Atmospheric Science 

Florida State University 

David B. Enfield (ret. 2015) 

Dept. of Physical Oceanography 

NOAA Atlantic Oceanographic & 

Meteorological Laboratory 

Pamela Hallock Muller, Ph.D., Professor 

College of Marine Science 

University of South Florida 

David Hastings, Professor 

Marine Science and Chemistry 

Eckerd College 

Barry Heimlich, Vice Chair 

Climate Change Task Force 

Broward County 

Ben Kirtman, Professor 

Department of Atmospheric Science 

Rosenstiel School for Marine and 

Atmospheric Sciences 

University of Miami 

John H. Parker, Professor Emeritus of 

Chemistry and Environmental Science 

Department of Earth and Environment 

Florida International University 

Randall W. Parkinson, Ph.D., P.G., 

Research Faculty Affiliate 

Institute for Water and Environment 

Florida International University 

Brad E. Rosenheim, Ph.D., Associate 

Professor 

College of Marine Science 

University of South Florida 

Philip Stoddard, Professor 

Department of Biological Sciences 

Florida International University 

Mayor of South Miami 

Harold R. Wanless, Professor and Chair 

Department of Geological Sciences, 

College of Arts and Sciences 

University of Miami 

Disclaimer: The views and opinions expressed in this letter are strictly those of the 

individuals and do not necessarily reflect the official policy or position of their respective organization. 

Senator NELSON. That sounds like quite a reasonable approach. 

And here I would also like to insert a document just released this 

morning at 10:30 from NOAA’s National Centers for Environmental Information, marking some of the measurements with regard to consecutive years of record warmth on the globe. And I 

think that’s instructive for us to have from NOAA itself. 

The CHAIRMAN. Without objection. 

[The information referred to follows:] 

94 


118NOAA1.eps

J.ll l017 

Global Summaty I nfonnation - December 2016 

See Full Repcn 

2016 is Earth's warmest year, culminating in a remarkable 3-year streak of record warm years for the 

globe 

The globally averaged temperature over land and ooean surtaces tor 2016 was the highest among au years sinoe re<X>fd 

keeping began in 1880. CUring the final month, the December oombined global land and ocean average surtace temperature 

was the third highest tor December In the 137·year record. 

SeleCted Climate Events 8 Anoma.ties tor Calendar Year 2016 

Global highlights: Calendar Year 2016 

For extended analysis ot global climate patterns, please see our lull AMual report 

During 2016. lhe all<!rage lemperalure across global land and oooan surtaoos was 1 .oo•F (0.94'C) abOII<l llle 20"'oonlury 

av&fage. This was the highest among all 137 yeats In the 1880-2016 record. surpassing the previous record set last year 

by 0.07°f (0.0411C). The first eight months of the year had record high temperatures lor their respective months. Slnoe the 

start of lhe 21" century, the annual global temperature record has been broken""" times (2005, 2010, 2014, 2015, and 

2016). The record warmth in 2016 was broadlY Sl)fead around the world. 
95 


118NOAA2.eps

J.lll017 

During 2016, the gklbally·averaged land surface temperature was 2.57°F (1.43°C) above the 20th century average. This 

was the highest among aJI yeats in the 1~20 6 re<:ofd, surpassing the previous record of 2015 byO t8 F (O.tOOC). 

o Re<:ofd high temperatures over land surfaces were measured across Far East Russia, Alaska, far western Canada. a 

swath of the eastern United States, muCh of Central AmeriCa and f\OC'thern South AmeriCa, southern Chite, muCh of 

eastern and western AfriCa, nor1h oontral Siberia, parts or south Asia, muCh Of southeast Asia iSland nations and Papua 

New Guinea. and parts Of Australia, especially along the northern and eastern coasts. No land areas were cooler than 

average IOf' the year. 

During 2016, the gklbally·averaged sea surface temperature was 1 .350f (0. 750C) above the 2(/h century average. This was 

the highest among all years In the 1880- 2016 record, surpassing the previous reoo<d o1 last year by 0.02"F (0.01'C). 

o Reoord high sea surface tempetatures were observed across the nor1hem Pacific waters near Alaska, the Bering Sea. 

par1s of the southern and western Pacific, a long swath of the western Atlantic stretctling to the Gul1 of Mexico, parts of 

the southern and eastern Indian Ocean extending across the waters of souUleastem Asia island nations and Oceania. 

The only ocean area with record ookl temperatures was east of the Drake Passage near the Antalctic Peninsula, an area 

that has been much oooler than average sinoe late 2013. 

According to data lrom NOAA analyzed by the Rutgers Gklbal Snow Lab. the average annual Northern Hemisphere snow 

cover extent during 2016 was 9.5 milliOn squate miles. ThiS was ab0u1100,000 square mneslesslhan the 1981-2010 

avec age, and tied 2005 tor 12'"smallest 01 the 47 complete yews on reootd since 1968. 

Recent trends In the deCline ot Arctic polar sea keextentoontinuect In 2016. When averagklg da•y data from the National 

Snow and tee Data Center. and noting that there was an unanticipated sensor transition during the year. the estimated 

average annual sea Ice extent ln the Alctic was approximately 3.92 million square miles, the smaltest annual average In the 

record. 

The annual Antarctic sea Ice extent was the seoonef smallest on reoot'd, behlnt11986, at 4.31 million square miles. Both the 

November and Oeoember 2016 extents were reootef smau. 

Global highlights: December 2016 

During December, the avetage temperature across global land 

and ocean surfaces was 1.42°F (0.79°C) above the 201h century 

average. This was the third highest for December In the 188o2016 record. Only the Decembers o12014 and 2015 were 

warmer. 

During December, the globalfy·averaged land surface 

temperature was 2.30<"F ( 1 .28-G) above the 20th century 

average. This was the sixth highest for December in the 188o2016 record. 

During December, the globalfy·averaged sea surface 

temperature was t. 10"'F (0.610C) above the 20t" century 

avetage. ThiS was also the highest lor December in the t88Q2016 record. Only the Decembers ol 2009. 2014, and 2015 were 

warmer. 

latld&OowiT~~O.C:2018 

f!O,A",,._...O.... ... '------

-- !! ~ - ~-

2.1 
96 


118NOAA3.eps

J.lll017 

The average Arctic sea ice extent for December was 4.67 million square miles. according to analysis by the National Snow 

and Ice Oata Center based on data from NOAA and NASA. This value is 400.000 square miles (7.9 percent) below the 

1981- 2010 average, and the second smallest December extent since records began In 1979. 

Antarctic sea ice during December was 3.41 million square ml es. according to analysis by the National Snow and Ice Data 

Center based on data from NOM and NASA. This vafue is 970.000 square mites (22.2 percent) below the 1981-2010 

aYerage, and the smallest December extent on record. 

According to data lrom NOAA analyzed by the Rutgers Gk>bal Snow Lab. the Northern Hemlsphefe snow OOY&f extent 

during December was 17.5 min.on square miles, wttlcn Is 550,000 square mlieS abOve the 1981- 2010 avefage. This was 

th<l eighth largest December Northern Hemispllere snow cover extent in the SO·year periOd ol reoo<O. 

For extended analysis ot global temperature and I)C'eclpl1atlon p.anems, please see our full Oecembet report 

JJ 
97 

Senator NELSON. Senator Blumenthal asked what I was going to 

ask about our support for Israel and your attitude about that, and 

I think you’ve covered that. 

And I would, finally, appeal to you, as a Floridian who lives on the coast, that there is not only a tourist industry, which is an $85 

billion a year industry, in Florida, almost a million jobs connected 

with tourism, much of which depends on the very attractive and 

pristine beaches that we have. And we learned a valuable lesson 

in the Deepwater Horizon oil spill when that oil fortunately did not 

get to all of our beaches, but, instead, got to Pensacola Beach, 

which was covered in oil, some oil on Destin Beaches, as well as 

tar balls as far east as Panama City. But what it did, is it shut 

down the tourist season for one entire year on the Gulf Coast. 

And had that spill been at a time when the loop current that 

comes off of the western end of Cuba and loops up into the Gulf 

of Mexico, then turns south, goes around the Florida Keys and becomes the Gulf Stream that hugs the coast not only at Miami, but 

at your residence in West Palm Beach all the way up to Fort Pierce 

before it takes off further out into the Atlantic from the coast—had 

that spill or any future spill gotten into the loop current, we would 

have had that effect on the east coast of Florida and the resulting 

debacle with regard to our tourism industry. 

Now, there is one other reason why this is so important to us, 

and you and I have not had a chance to talk about this. The largest 

training and testing area for the United States military in the 

world is the Gulf Coast off of Florida. 

Mr. ROSS. Right. 

Senator NELSON. It is the Gulf Testing and Training Range, and, 

thus, the extensive activities at not only Eglin Air Force Base, but 

also Tyndall Air Force Base at Panama City. I have two letters 

from two Republican Secretaries of Defense saying we simply cannot have oil drilling activities, that it is incompatible with the testing and training of some of our most sophisticated weapons. When 

you combine that with the fact that the geology shows that there 

is very little oil off of Florida, the oil is off of Louisiana, where all 

of the sediments came down the Mississippi—— 

Senator SULLIVAN. And Alaska. 

Senator NELSON. I’m talking about the Gulf of Mexico right now. 

I won’t get into the Bering Sea and the North Slope and all of that. 

I’m tending to Florida. You tend to Alaska. 

[Laughter.] 

Senator NELSON. That the effects would be devastating so much 

so that my colleague, a Republican former Senator, Senator Mel 

Martı ́nez, joined with me for all of the reasons that I’ve stated, and 

we put in law, off limits until the year 2022 drilling in the Gulf 

of Mexico off of Florida; that’s in law. 

And so I ask you to consider this because there are going to be 

others in the Cabinet in which you serve and their idea will be 

‘‘Drill, baby, drill.’’ This Senator is not objecting to drilling if it’s 

in the right places. But for all the reasons that I’ve stated, I felt 

it incumbent for me to bring it up to you since you are going to 

be, obviously, by virtue of your testimony today, you’re going to be 

a very, very influential voice in the Cabinet, and I hope in the 

White House. 

98 

So with that, Mr. Chairman, thank you for the extent to which 

your, mine, and Mr. Ross’s posteriors have endured almost 4 hours. 

The CHAIRMAN. Thank you, Senator Nelson. 

And, yes, this has been a lengthy hearing, but I think a very, as 

you pointed out, productive one in terms of the responses it has 

generated and the substance of the discussion. There has been, I 

think, a wide range of questions posed from Members of this Committee, who represent very different areas of the country. But the 

range of the issues this Committee has jurisdiction over is such 

that it requires a good amount of knowledge on behalf of our nominee, and we certainly appreciate the way in which he’s stepped up 

to that challenge and responded to our questions today. 

I have one last question and then we’ll let you get out of here, 

and I think it’s the only subject that hasn’t been covered today, or 

at least it hasn’t been covered much, and that is, Mr. Ross, in 2012, 

FirstNet was established as an independent authority to implement a nationwide broadband network dedicated to first responders. And as FirstNet makes progress, and it has made some 

progress in acquisition activities, consultation, and internal controls, it still faces a good number of challenges. 

So I want to emphasize that FirstNet is an independent authority, but I want to ask also whether you will commit to being engaged on the progress of FirstNet and to inform this Committee if 

you observe any waste, fraud, or abuse within that program should 

you be confirmed. 

Mr. ROSS. I certainly support the concept of FirstNet. I gather 

there is some controversy in some states about it. And I gather 

there have been some technical issues. I’m obviously not yet conversant with them. But the idea of giving the first responders all 

the tools that you can imagine that could be useful has to be the 

right direction to go. So I’m certainly supportive of that. And to the 

degree there are issues with it, I’ll do my best, if confirmed, to try 

to figure out how to overcome them. 

The CHAIRMAN. Well, and we look forward to having you bring 

your expertise in solving problems and managing difficult circumstances to bear on this issue as well. 

I believe that’s it. Given our hope to confirm Mr. Ross as soon 

as possible, we’ll keep the hearing record open until 12:30 p.m. tomorrow. During this time, Senators are asked to submit any additional questions for the record, and upon receipt, we would ask our 

nominee to submit written answers to the Committee as soon as 

possible so that we can get about the process of scheduling you and 

reporting you out of here and getting you to the floor for a vote. 

So with that, I thank Members of the Committee. 

Thank you, Mr. Ross, for your willingness to serve our country, 

and for those who came with you today, and your wife, Hilary, for 

your patience. It’s a long hearing, but it’s an important one. 

So with that, this hearing will be adjourned. 

Mr. ROSS. Thank you, Senators. 

[Whereupon, at 1:55 p.m., the hearing was adjourned.] 

(99) 

A P P E N D I X 

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. JOHN THUNE TO

WILBUR L. ROSS, JR. 

Question 1. The United States faces growing cybersecurity threats. As recent news 

reports show, malicious hackers harm our economy and national security through 

unauthorized access to private sector intellectual property, sensitive data, and critical infrastructure. Cyberespionage costs companies billions of dollars every year. 

While Congress and the Department of Commerce’s National Institute of Standards 

and Technology (NIST) collaborated on the successful Cybersecurity Framework for 

Critical Infrastructure, the battle is far from over. Under your leadership, what will 

be the Department’s approach to working with industry in order to combat ongoing 

cyber threats? 

Answer. Cybersecurity is a huge and immediate problem. Strengthening our 

cybersecurity is critical to U.S. trade and national security. If confirmed, I will work 

proactively through NIST and with our interagency and industry partners to address the cybersecurity and privacy challenges that our Nation currently faces and 

will regularly review the Department’s efforts to ensure that markets remain open 

to U.S. innovators. 

Question 2. The Committee has struggled for some time with receiving timely responses to letters, questions following hearings, and other requests for information 

from NOAA. There have also been instances when the Congressional Budget Office 

(CBO) has had a hard time getting responses from NOAA, which has slowed down 

CBO’s ability to issue scores on bills the Committee is trying to advance. Such 

delays make effective Congressional oversight and passing legislation difficult, and 

are unacceptable. Do you commit to ensuring NOAA provides me and my staff with 

timely and complete responses to inquiries? 

Answer. If confirmed, I will do my best to ensure that all components of Commerce including NOAA will be responsive. 

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. ROGER F. WICKER TO

WILBUR L. ROSS, JR. 

Question 1. The Department of Commerce has a critical role to play in protecting 

U.S. industries from the unfair practices of our trading partners. This has been particularly true over the last 30 years with respect to our domestic softwood lumber 

industry, which the outgoing administration recognized as a ‘‘vital’’ part of the U.S. 

economy just last June. 

Forest products are certainly a vital part of Mississippi’s economy, generating 

more than $1.1 billion in 2015. I support trade practices that will allow the softwood 

lumber industry to continue to thrive in my state and across the country. Over 

350,000 Americans work in the softwood lumber industry, and approximately 11 

million private U.S. landholders depend on the strength of that industry in managing their own family-owned timberlands. 

With the 2015 expiration of the softwood lumber agreement, the Department of 

Commerce is once again at the forefront of protecting U.S. jobs through its enforcement of the United States’ trade remedy laws. 

Are you committed to the strong enforcement of our Nation’s antidumping and 

countervailing duty laws, and will the use and enhancement of trade remedies be 

a priority for the Department? 

Answer. I will work with all the stakeholders, including those at Commerce and 

the other Federal agencies, industry and the Congress, to ensure U.S. companies 

can compete in international markets while protecting our national security and foreign policy interests. I favor quotas to offset stumpage subsidies. 

Question 2. Recently, the President-Elect announced a Manufacturing Council to 

be coordinated by the Commerce Department and the President’s Strategic Policy 

100 

Forum. Each of these initiatives provide business leaders a forum to offer their expertise and advice to the Administration on how to grow the economy and create 

jobs. As you may know, multinational companies employ 20 percent of our Nation’s 

manufacturing force and pay salaries 30 percent greater than the economy-wide average. 

Will you commit to ensuring that these companies have a seat at the table for 

both the Manufacturing Council and the President’s Strategic Forum? 

Answer. If confirmed, I will do my best. 

RESPONSE TO WRITTEN QUESTION SUBMITTED BY HON. DEB FISCHER TO

WILBUR L. ROSS, JR. 

Question. Mr. Ross, if confirmed, will you commit to taking all steps needed to 

ensure that FirstNet will stay within its existing $7 billion authorization as the network is deployed, and that it will not come back to seek more money from Congress? 

It is important to me, and I expect that several of my colleagues on the Committee 

share this view, that the network be built in a cost-effective and efficient way. 

Answer. If confirmed, I look forward to being fully briefed on FirstNet and its deployment strategy. Based on press reports, I am concerned that existing delays point 

toward cost overruns and, if that appears to be the case, will make corrective measures a priority. 

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. DAN SULLIVAN TO

WILBUR L. ROSS, JR. 

Question 1. Commercial and recreational fishing provide significant contributions 

to our Nation’s economy. Alaska’s fisheries are by far the largest in the nation, accounting for over 50 percent of total domestic landings and more than 60,000 jobs— 

making the fisheries industry our largest private employer. Alaska is the superpower of seafood. In many communities, our fisheries are the backbone of their economy. The Magnuson Stevens Fishery Conservation and Management Act (MSA) is 

a big part of the reason that the United States has the world’s best managed fisheries, particularly in Alaska, where we have no overfished stocks. A hallmark of the 

MSA is the Council process, which are stakeholder driven decision-making bodies 

that allow those most qualified and invested in the sustainability and health of the 

resource, the fishermen themselves, to make decisions regarding the management 

of their fisheries. 

Do you share our commitment to sustainable management of U.S. fisheries? Will 

you support maintaining the existing consensus-based regional council system for 

fisheries management? 

Answer. I share the Committee’s commitment to sustainable fisheries as embodied 

in the Magnuson-Stevens Act. Good science on fish stocks and oceanic conditions is 

essential to meet the MSA’s sustainable fishery goals. I also support the Council 

system, though I recognize that fishery management under the Council system faces 

different challenges in each region and look forward to working with each region 

to address those challenges. 

Question 2. In the middle of 2014, Russia put an embargo on seafood imports from 

the U.S. If we look at what the U.S. exported to Russia before this ban took effect, 

we can extrapolate and estimate that we’ve lost well more than $200 million in export value in those two and a half years—most of which would have come from Alaska. In that same period, the U.S. has imported roughly $1 billion in seafood from 

Russia. We know that the Trump Administration places a high value on having fair 

trade relationships our trading partners. 

How will you use your post as Secretary of Commerce to restore fairness to our 

seafood trade with Russia and other trade partners? 

Answer. Russia undoubtedly and unfairly used seafood as a response to our sanctions. We need to find a way to deal with it. 

Question 3. There is a significant backlog of hydrographic charting nationwide, 

which can adversely affect maritime commerce and increase the risk of marine casualties. This is a huge problem in Alaska where some areas off our coast have chart 

data collected back in the 1800s when Russia still owned the territory. There is potential to address this backlog through partnerships with the private sector, but 

there is a need for leadership to make this happen. 

Will you work with me to aggressively reduce this charting backlog and increase 

the use of public private partnerships to achieve this goal? 

101 

Answer. Yes. The charting back-log poses a significant challenge. If confirmed I 

look forward to being briefed on this issue and working with the Department and 

Congress to address it. 

Question 4. For Alaska, NOAA’s missions—managing our Nation’s fisheries, charting our waters, and providing accurate weather forecasting—are of significant importance. Yet, much of the NOAA staffing and infrastructure for Alaska is located 

elsewhere. 

Will you work with me to ensure NOAA personnel and assets are deployed in a 

manner that makes sense for both completing the mission and the taxpayers? 

Answer. Yes. I support cost-effective measures to improve the NOAA’s ability to 

carry out its mission, and, if confirmed, look forward to working with Congress to 

implement those measures. 

Question 5. The increasingly ice free Arctic is one of the most dynamic regions 

of growth and investment on Earth. Russia continues to make investments to develop the Northern Sea Route to not only export natural resources from Russia’s 

Arctic, but also to increase international transshipment with Asian countries. The 

United States has virtually no strategic infrastructure along its Arctic coastline. The 

United States remains critically unprepared to manage an Arctic open for business. 

If confirmed, would you be willing to work with my office on advancing ways to 

address infrastructure investment in the Arctic? 

Answer. Yes. If confirmed, I look forward to being briefed on the efforts to date 

to improve America’s position in the Arctic and working with Congress and the 

State of Alaska to enhance those efforts. 

Question 6. In 2018, the International Whaling Commission will consider quota 

renewal for our subsistence whaling communities in Alaska. The Department of 

Commerce plays a critical role in preserving the ability for our Alaska Native communities to continue whaling as they have for millennia. 

If confirmed will you work to ensure that our communities can continue to hunt 

the bowhead whale? 

Answer. Yes. If confirmed, I look forward to learning more about the Department’s work to support Alaska Native subsistence whaling. 

RESPONSE TO WRITTEN QUESTION SUBMITTED BY HON. CORY GARDNER TO

WILBUR L. ROSS, JR. 

Question. Mr. Ross, in January, the President signed into law my legislation, the 

American Innovation and Competitiveness Act, which I introduced with Senator Peters, Chairman Thune, and Ranking Member Nelson. This legislation promotes the 

great work the American scientific community has done to make America globally 

competitive and aims to refocus our research efforts to keep us competitive. 

A portion of this bill highlights the national network of Manufacturing Extension 

Partnerships (MEPs), which provide small manufacturers with resources and guidance to improve manufacturing processes and bolster domestic manufacturers. My 

state’s MEP, Manufacturer’s Edge, has helped numerous Colorado manufacturers 

gain a competitive advantage and the success of the MEP program is a great example of valuable public-private partnerships. 

Will you commit to supporting the MEP program to ensure that our Nation’s manufacturers have the tools that they need to compete on a global playing field? 

Answer. I have heard only good things about the NIST Manufacturing Extension 

Partnership. If confirmed, I look forward to being fully briefed on the program and 

will carefully consider it when allocating resources within the Department. 

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. TODD YOUNG TO

WILBUR L. ROSS, JR. 

Question 1. Intellectual property is crucial to the well-being of our economy. More 

money is spent on Research & Development in the U.S. than in any other country 

in the world. In fact, approximately 30 percent of the American workforce is employed either directly or indirectly in IP-intensive industries. In order to continue 

accelerating the pace of innovation in our economy, our trading partners must all 

play by the same rules with respect to market access and protecting intellectual 

property. How do you plan to utilize trade negotiations to ensure that any potential 

new trade agreements achieve true 21st century standards in pharmaceutical IP, including, patentability, patent term linkage, patent linkage, and data protection (at 

least 5 years for small and at least 12 years for large molecules)? 

102 

Answer. If confirmed, I look forward to being fully briefed on intellectual property 

issues. Intellectual property rights should be part of any new negotiations with our 

trading partners, and agreed upon provisions in both existing agreements and new 

agreements need enforcement vigorously and urgently. 

Question 2. Mr. Ross, one issue we discussed in our meeting was the sheer size 

and scope of the Commerce Department and the challenges that alone presents to 

you in leading such a large organization. We also discussed the many opportunities 

to streamline department functions, reduce redundancies, and eliminate certain 

Federal Government functions that should be left to the states or private sector. 

Can I get a commitment from you that you will report to me within 180 days of 

your confirmation on efficiencies you will recommend to streamline the work of the 

Commerce Department? 

Answer. If confirmed, I intend to conduct a thorough review of the Department’s 

programs and will urgently develop and report an efficiency program. 

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. BILL NELSON TO

WILBUR L. ROSS, JR. 

Question 1. Last Congress, this committee hosted two weather-related hearings: 

one on the communication of weather information and the other on hurricanes. 

Since you live on one of Florida’s beautiful barrier islands, I know you personally 

understand these issues. To save lives and property, we simply must have accurate, 

timely, and consistent forecasts delivered in a way that is meaningful so that people 

take action to protect themselves. This is the essential function of the National 

Weather Service. 

Would you agree with me, then, that the dedicated employees of the National 

Weather Service—like trained meteorologists—are essential public safety personnel? 

There are vacancies at the National Weather Service that threaten public safety, 

and I can tell you that rehiring those positions takes months on end. NOAA has 

been working to improve the efficiency of the hiring process. 

Answer. I agree that the National Weather Service serves an essential function. 

Timely and accurate weather information is crucial to protect both lives and property, and is also essential to the smooth functioning of numerous areas of commerce, 

including aviation, shipping, fishing and farming, to name just a few. Proper staffing the NWS is therefore important and, if confirmed, I intend to review the current 

efforts and see how they can be improved. 

Question 2. Will you commit to addressing the employment vacancies and exempting National Weather Service public safety employees from any hiring delay or 

freeze? 

Answer. If confirmed, I will do my best to quickly fill all essential positions at 

the National Weather Service. 

Question 3. In 2007, the National Science Board recommended the establishment 

of a National Hurricane Research Initiative. At the time, Senator Mel Martinez and 

I introduced legislation to create one. It didn’t pass, but NOAA initiated one anyway 

and called it the Hurricane Forecast Improvement Project. The goal was to reduce 

the error of hurricane track and intensity forecasts by 20 percent within five years 

and by 50 percent within 10 years. NOAA has met the five-year goal, which is excellent. But it is essential that we continue that progress and meet the ten-year goal. 

That’s why I worked with the former Chairman of this Committee, Senator Rockefeller, to hold hearings on my bill to congressionally authorize the program. That 

is why I have worked with Senator Rubio for two Congresses in a row now to authorize the program. Sure enough, in 2016 we had an active hurricane season in 

Florida, which devastatingly cost lives, damaged property, and harmed our economy. 

We intend to get the bill signed into law, but in the meantime will you also commit 

to maintaining and supporting NOAA’s Hurricane Forecast Improvement Program? 

Answer. As a resident of Southern Florida, I certainly appreciate how important 

it is that our communities have accurate warnings and forecasts. If confirmed, I look 

forward to being fully briefed on the National Weather Service and its programs. 

As I stated at the hearing, it is my experience that European forecasts have been 

more accurate, and I am optimistic that the new satellites that NOAA is launching 

will provide better information that will restore the NWS to world leadership in 

terms of accurate and timely weather forecasting. I am pleased to learn that the 

Hurricane Forecast Improvement Project has been successful to date, and I look forward to learning more about it and working with you on this important issue. 

103 

Question 4. Your questionnaire mentions that one of the tasks at the Department 

of Commerce requiring dedicated management attention is ‘‘launching three more 

NOAA satellites.’’ To which satellites are you referring? 

Answer. My understanding is that the next three scheduled launches are the 

JPSS–1 polar orbiting satellite in 2017, and the GOES–S and GOES–T geostationary satellites in 2018 and 2019, respectively. These are the satellites to which 

I was referring. These satellites are a significant expense item in the Department’s 

budget that must be kept on track. 

Question 5. You graciously provided responses to written questions that I sent you 

prior to this hearing. One of those questions had to do with NOAA’s aging fleet of 

ocean-going ships. I was glad to see in your answer that you know from experience 

how older inefficient vessels can limit the mission of a fleet. NOAA maintains a fleet 

of aircraft from which they take scientific readings, like the fleet of hurricane hunters that fly around, on top of, and even right through the monster storms. These 

hurricane hunter planes are aging. In fact, during Hurricane Hermine, NOAA had 

to ground its one and only Gulfstream jet to do emergency repairs. Luckily, the National Science Foundation and the University Corporation for Atmospheric Research 

were able to step in so that they still got the measurements we needed to know 

what the storm would do. Would you agree with me that it’s too risky to not have 

a backup plan for planes that are aging? 

Answer. As you know from my previous answer, my experience with managing 

shipping assets makes me well acquainted with the costs and inefficiencies of operating older equipment. If confirmed I look forward to learning more about the status 

and issues associated with the hurricane hunter aircraft and will weigh carefully 

the options for their expeditious replacement if needed. 

Question 6. This committee led the effort to create the National Network for Manufacturing Innovation, currently known as Manufacturing USA, which is a network 

of public-private institutes that promote advanced manufacturing in the United 

States. The Manufacturing USA network is spearheaded by an interagency office 

housed at NIST. President-elect Trump has pledged to bring well-paying manufacturing jobs back to the United States. In this effort, if confirmed, will you continue 

to support the Manufacturing USA network in order to promote the growth of advanced manufacturing in the U.S.? 

Answer. I have heard only good reports about the Manufacturing USA program, 

and look forward, if confirmed, to a thorough briefing on it. As you are aware, President Trump intends to make increased manufacturing in the United States a priority, and programs like Manufacturing USA would appear to be in line with that 

goal. 

Question 7. Since the E.U. has very few phosphate reserves, they rely heavily on 

imports. However, the E.U. levies a 6.5 percent tariff on U.S. phosphate producers, 

while the U.S. levies no tariff on phosphate entering our country. That tariff largely 

shuts out U.S. producers from European markets, leaving it to producers from 

China, Morocco and other countries to export to the E.U. What do you plan to do 

to address this problem? 

Answer. I believe in fairness, equality and reciprocity in trade relations. If confirmed, I will look into the situation with respect to phosphates and other items 

where exports from the United States are treated differently from imports into the 

United States. To the extent there are existing tools available to the Department 

to address the issue I would give serious consideration, after consultation with the 

White House and Congress, to making expeditious use of those tools. 

Question 8. According to some news reports, President-elect Trump detests multilateral trade agreements. What do you believe is the best way to harmonize regulatory standards across a variety of trade partners, particularly with regard to the 

automotive industry, medical device industry, boating industry, aerospace industry, 

and other high tech industries? 

Answer. One benefit of reviewing and re-opening as needed our existing trade 

agreements, as well as negotiating agreements with new partners, is that the negotiations present an opportunity for the United States to harmonize regulatory standards in different industry sectors through these new agreements. By negotiating on 

a bilateral basis, the United States can maintain a consistent position with respect 

to standards and each negotiating partner can decide for themselves whether accepting our proposed standards is an acceptable exchange for access to our markets. 

Question 9. You have stated that a top priority will be making changes to the 

North American Free Trade Agreement (NAFTA). Please provide some examples of 

how you would like to change NAFTA? 

Answer. It is obviously premature to discuss the details of what might be negotiated, but during the campaign concerns with compliance and with trade agreement 

104 

details were frequently raised. NAFTA issues of concern include rules for country 

of origin, dispute resolution mechanisms, and simultaneity of concessions. Addressing these concerns will be part of any future negotiations. 

Question 10. In Section 9 of your Ethics Agreement, you commit to divesting yourself of significant assets within 90 days and additional assets within 180 days. How 

do you intend to handle potential conflicts of interest that may arise during this extended period of retained ownership? 

Answer. In the event that a matter involving an asset I still hold should arise, 

I assure you that I will recuse myself in accordance with the commitments that I 

made in my ethics agreement. Further, I will at all times rely on the monitoring 

and judgment of the Department’s ethics officials to ensure that I do not participate 

in any matter about which they advise me that a conflict of interest would arise. 

Question 11. If confirmed, you will be responsible for overseeing the decennial census in 2020, which is required by the U.S. Constitution and used to apportion seats 

to states for the House of Representatives, redistricting state legislatures, and distributing Federal funds to local communities. The 2010 Census was far costlier than 

initial estimates due in large part to poor planning and lack of oversight of its acquisitions. I am concerned that the Census Bureau is repeating some of the same 

mistakes. 

Will you commit to working with the administration to make sure it has the necessary resources and provide regular briefings to Congress to ensure that the Census Bureau effectively manages the 2020 Census so that it is completed on time, 

on budget, and accurately? 

Answer. I will do my very best to ensure that there is a full, fair and accurate 

2020 Census, and I look forward to working with the Census Bureau, the Congress 

and the public in this regard. 

Question 12. The American Community Survey (ACS), which replaced the census 

long form, is conducted every year, and responses are mandatory. The purpose of 

the ACS is to get more timely and accurate information about communities across 

the country so that local and state governments and the Federal Government can 

make informed decisions about the best allocation of resources. Nevertheless, some 

are concerned that the ACS is too detailed, and privacy advocates worry about the 

amount and type of information the Federal Government collects. Do you support 

efforts to keep the ACS mandatory? 

Answer. If confirmed, I look forward to being fully briefed on the American Community Survey. I would like to work with the Census Bureau, the Congress and the 

public to address any concerns and make the ACS as effective as possible in providing full, fair and accurate census data. 

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. MARIA CANTWELL TO

WILBUR L. ROSS, JR. 

Question 1. I am concerned about the new Administration’s orientation toward 

Russia and their autocratic leader, Vladimir Putin, especially after the intelligence 

community’s stunning conclusions about Russia’s attempts to influence our elections. 

You, personally, have experience working with people who are quite close to President Putin. After the Bank of Cyprus was forced to confiscate deposits to stay afloat, 

many from wealthy Russians suspected of using Cyprus for laundering money and 

evading taxes back home, you led a group to purchase a large portion of the bank, 

helping bail out many of these Russian-insider investors. 

Several close Putin allies are large investors in the bank and serve on the Bank’s 

board of directors. You’ve agreed to step down from your positon as vice chair of 

that very board, and divest yourself of those holdings, but obviously those relationships remain. 

How will you shift your focus to represent the interest of the American people instead of your former Russian business partners? 

Answer. The Russians who invested in the Bank of Cyprus were not my partners. 

The Bank of Cyprus is a publicly traded company listed on the London Stock Exchange. I had never had dealings with any of them prior to my investment in the 

Bank. I have only met once, for one hour, the principal Russian investor, and then 

only after he had invested in the Bank. 

Question 2. The National Telecommunications and Information Administration 

(NTIA) is principally responsible for advising the President on telecommunications 

and information policy issues. 

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Historically, NTIA’s programs and policymaking focus largely on expanding 

broadband Internet access and adoption in America, expanding the use of spectrum 

by all users, and ensuring that the Internet remains an engine for continued innovation and economic growth. These goals are critical to America’s competitiveness 

in the 21st century global economy and to addressing many of the Nation’s most 

pressing needs, such as improving education, health care, and public safety. 

In addition NTIA represents the President in both domestic and international 

telecommunications and information policy activities. NTIA is also a leading source 

of research and data on the status of broadband availability and adoption in America. 

Promoting a free and open Internet and unleashing spectrum for broadband applications have been two key drivers of domestic economic growth. And promoting 

these policies overseas have helped our tech companies gain and maintain strength. 

How do you intend to continue these policies in order to create jobs and promote 

the competitiveness that undergirds the success of the Internet economy? 

Answer. If confirmed, I will work with NTIA to promote the availability of spectrum for broadband applications and new innovation, including the Internet of 

Things, while ensuring that the long-term needs of the United States continue to 

be met. 

Question 3. The economy’s future success depends on delivering educational opportunities in computer science based on proven strategies. Research funded 

through this program will enable educators to teach this critical subject more effectively and bring new skills to underserved communities. Computing jobs are growing in every industry and in every state. Despite this compelling fact, there are currently more than 20,000 open computing jobs in Washington state, and more than 

500,000 nationwide. 

The U.S. Department of Labor estimates there will be 4.4 million jobs in computer 

and information technology occupations by 2024. Despite the clear need for a workforce with coding and programming skills, students in 75 percent of our Nation’s 

schools graduate high school with no computer science education. 

The American Innovation and Competitiveness Act S. 3084 which passed at the 

end of last year represents an important in investment in American ingenuity and 

continued and research and development to promote ingenuity and innovation. 

It improves the investment in computer science education by creating a program 

within commerce’s National Science Foundation to promote research on computer 

science teaching models, tools, and materials, with a focus on instruction for lowincome, rural, and tribal students. 

The program also emphasizes preparing incoming teachers to integrate computer 

science and computational thinking into their classrooms in innovative ways. 

What is your view on the role of government to support science research and computer science learning? 

Answer. I agree that science research and computer science learning are important to the economy. If confirmed, I look forward to working with the Department 

and Congress on this important issue. 

Question 4. Mr. Ross, I want to ensure that you are aware of an ongoing dispute 

between the U.S. and the European Union (EU) regarding illegal aircraft subsidies. 

Last September, the World Trade Organization (WTO) ruled that European governments had not removed the harm caused to America’s aerospace sector by $17 billion of illegal subsidies and—to add insult to injury—found that the Europeans have 

dispensed and additional $5 billion in illegal subsidies for the development of the 

Airbus A350 wide body aircraft. That brings the total of illegal European subsidies 

for Airbus to $22 billion. 

In fact, the original WTO panel concluded: ‘‘It is in our view clear that Airbus 

would have been unable to bring to the market the Large Commercial Aircraft 

(LCA) that it launched but for the specific subsidies it received from the European 

Communities and the governments of France, Germany, Spain and the United Kingdom.’’ This company—that the WTO found would not have existed but for these 

huge government subsidies—drove McDonnell Douglas and Lockheed out of the 

commercial aircraft business, taking with them thousands of American jobs. 

Government subsidies to Airbus continue to destroy American jobs. As you may 

know, Boeing manufacturers the vast majority of its commercial aircraft in my home 

state of Washington. And, the export of these aircraft support high-skilled jobs in 

Washington State and throughout the country. According to the Commerce Department: ‘‘In 2015, the U.S. aerospace industry contributed $144.1 billion in export 

sales to the U.S. economy. The industry’s positive trade balance of $82.5 billion that 

year was the largest trade surplus of any manufacturing industry, supporting highwage jobs for hundreds of thousands of American workers.’’ 

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It is imperative that U.S. companies compete with overseas rivals on a level playing field. If confirmed, I would urge you and the rest of the incoming Administration 

to continue to press the Europeans to stop massively subsidizing Airbus aircraft. 

Answer. Based on everything I have read the WTO was correct in finding that 

Airbus received major illegal subsidies but erred in its finding that Boeing received 

illegal state support. 

Question 5. American competitiveness in critical parts of the global innovation 

economy is at risk. While the U.S. economy continues to rely on longstanding principles of private markets and competition, U.S. companies are increasingly facing 

competition in a host of industries from foreign companies backed by the power of 

their home governments. 

My colleagues and I in Congress are troubled to observe that certain foreign governments are subjecting American companies to antitrust investigations that lack 

due process protections in an effort to transfer U.S. patented technology to their domestic companies, or to insulate their domestic companies from U.S.-based competition. Korean and Chinese antitrust investigations in particular have targeted U.S., 

European, and other Asian life sciences companies, automobile companies, and technology companies. 

Over the past two years, we are aware of nearly 30 investigations across a range 

of industries—including manufacturing, life sciences, and technology—brought 

against foreign companies by Chinese and Korean antitrust authorities. 

In particular, foreign governments are using their antitrust authority to diminish 

U.S. intellectual property rights, including patent licensing. As you know, our patent system has been a driver of American innovation since the founding, and the 

protection of intellectual property has been a key component of American economic 

and foreign policy. 

The use of antitrust as a tool of industrial policy undermines U.S. patent rights, 

suppresses innovation, and puts U.S. competitiveness in the industry at risk. In addition, antitrust investigations in China and Korea have been marred by serious 

procedural deficiencies that violate fundamental norms of due process and are inconsistent with international trade obligations. 

How should the U.S. respond to these aggressive tactics to steal U.S. intellectual 

property? What mechanisms are available to U.S. companies subjected to industrial 

policy motivated competition investigations in foreign jurisdictions? U.S. trade 

agreements include important Intellectual Property (IP) and due process protections. If you are confirmed, how will ensure that our trading partners are living up 

to their end of the bargain to treat our companies fairly, including in competition 

proceedings? What actions do you recommend Congress pursue to address these 

challenges? 

Answer. I regard abusive ‘‘anti-trust’’ proceedings as one of the most insidious 

means of intellectual property theft and will work hard to prevent the perpetrators 

from benefitting from such activities. It may well be necessary for there to be Congressional action to deal with this problem and I look forward to working with you 

to determine if such action would be effective. 

Question 6. The U.S. semiconductor industry serves as an instructive example of 

the impact of foreign antitrust policy. According to a 2016 Report from the U.S. Patent and Trademark Office and the Economic and Statistics Administration, semiconductors are among the highest-value intellectual property-intensive exports from 

the United States, accounting for over $54 billion in exports. As a recent report on 

the semiconductor industry from the President’s Council of Advisors on Science and 

Technology highlights, foreign government efforts to support their domestic companies through antitrust enforcement against foreign companies comes as several 

Asian companies position themselves to dominate the 5G wireless standard, which 

the international standards community is currently developing. 

The use of antitrust as a tool of industrial policy undermines U.S. patent rights, 

suppresses innovation in wireless technology, and puts U.S. competitiveness in the 

industry at risk. 

Are you concerned that these policies, if left unchecked, could result in foreign 

control of the 5G wireless standard? Do you agree that foreign control of the stateof-the-art communications standard would have serious implications for U.S. privacy 

and cybersecurity for years, if not decades? If confirmed, how would you address 

these national security concerns? How can we protect U.S. innovators from being 

eclipsed by government-backed competitors? If confirmed as Secretary of Commerce, 

what policies or initiatives would you pursue to bolster U.S. innovation and competitiveness in the global marketplace? 

Answer. It is my understanding that multiple bureaus of the Department are involved in tracking the development of the 5G wireless standards. I share your conVerDate Nov 24 2008 09:55 Jul 10, 2017 Jkt 075679 PO 00000 Frm 00110 Fmt 6601 Sfmt 6621 S:\GPO\DOCS\25974.TXT JACKIE
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cern about foreign efforts to control standards or processes that are essential to continued innovation in communications and other important economic sectors. Standard setting is among the functions of NIST and, if confirmed, I do not intend to yield 

standard setting to foreigners. 

Intellectual property theft by government-backed competitors and State-owned enterprises is also an issue, and if confirmed I will work with the Bureau of Industry 

and Security, USPTO and other elements of the Department to address the multiple 

elements of this issue. 

Strengthening our cybersecurity is critical to U.S. trade and national security. If 

confirmed, I will work proactively with our interagency and industry partners to address the cybersecurity and privacy challenges that our Nation currently faces and 

will regularly review the Department’s efforts to ensure that markets remain open 

to U.S. innovators. 

Foreign control of the semi-conductor industry is also a critical issue. If confirmed, 

I will work with the Bureau of Industry and Security and the Committee on Foreign 

Investment in the United States (CFIUS), along with other elements of the U.S. 

Government, to counteract this problem. 

Question 7. Washington state’s export markets are our North American partners 

as well as Asia. Exports to Mexico, Canada, and China make up more than a third 

of Washington’s total exports. These markets have allowed our state to enjoy a tremendous trade surplus and to create and maintain jobs, something I imagine you 

see as a goal for the Nation. However, the incoming Administration’s proposed trade 

policies will likely have a negative effect on my state’s trade. Do my apple, pear, 

and cherry growers, who together export more than $180 million of product to Mexico every year, need to worry about becoming the victims of a major trade dispute? 

How are your trade policies going to work for all of us and avoid jeopardizing the 

gains we’ve made in international trade? 

Answer. The choices are not NAFTA or a trade war. The President-elect and I 

do favor renegotiation. Because agriculture is one of the activities that Americans 

do best, if confirmed, one of my goals in a renegotiation would be to increase our 

agricultural exports. 

Question 8. Our aerospace industry relies heavily on supply chain integration with 

Mexico and Canada, our North American partners. This is a sector where the U.S. 

value added is at 60 percent. The NAFTA agreement has enabled us to create a 

seamless supply chain, where inputs often cross the border multiple times before 

going into a final product. This has enhanced North America’s competitiveness, allowing our industries to create 21st century jobs for America. 

You are likely familiar with similar cross-border synergies, having served as 

Chairman of the International Auto Components Group. Dismantling the agreement 

would severely impact Washington’s aircraft industry and our entire state’s economy. How will the incoming Administration’s proposed policies ensure that these 

longstanding ties between private businesses continue to thrive? 

Answer. I am thoroughly familiar with the necessity for fully seamless supply 

chains. 

Question 9. You have been a vocal advocate of tariffs as a way to protect domestic 

manufacturers and increase domestic employment, but data consistently proves that 

imposing tariffs on imports does little to bring jobs back to the United States. For 

example, when the United States imposed significant duties on Chinese tire imports 

in 2009, estimates found that—at best—1,200 jobs were saved in the United States, 

but costs to American consumers went up by about $1.1 billion. 

That works out to a cost of $900,000 spent by Americans per job saved. Tariffs 

on other products would likely have the same effect—few jobs saved, since manufacturing would likely either shift to other low-cost production sites or to more automation, rather than hiring more workers at home. 

Separate from that, of course, is the jobs that will be lost at home when our trading partners respond in kind by putting tariffs on imports into their countries or 

stop buying the goods and services of U.S. companies operating in their markets directly. Are you concerned the tariff proposals you are considering may ignite trade 

wars? 

Answer. As I said at the hearing, tariffs are simply one tool in our trade toolbox. 

Used properly, tariffs can be an effective tool to redress dumping and other unfair 

trade practices. 

Question 10. Thousands of U.S. businesses, large and small, have customers overseas. With the explosion of cloud computing, nearly all of them depend on their ability to transfer information rapidly and efficiently to and from facilities and customers outside the United States. Digitally-enabled trade to and from the United 

States amounts to more than $500 billion and generated a services trade surplus 

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of over $230 billion. It has played a role in the creation of up to 2.5 million U.S. 

jobs. But digital trade is vulnerable to protectionist restrictions imposed by foreign 

governments restricting the free flow of data and requiring that it be stored within 

foreign countries. These forced localization restrictions are increasing across the 

globe. The Commerce Department has been a leader in U.S. efforts to combat such 

restrictions. As Secretary, what efforts will you undertake with foreign governments 

to enable digital trade to thrive and grow? 

Answer. The United States must ensure continued trust in the privacy and security of the Internet, which is necessary to facilitate the continued free flow of information around the world. American businesses in the digital space, both large and 

small, depend on an online digital ecosystem that has the confidence of potential 

users and customers. That is why, if confirmed, I will ensure the Department of 

Commerce has a seat at the table, alongside intelligence, diplomatic and other agencies, in all policy discussions related to practices that may affect digital data flows. 

Question 11. American businesses of all sizes are world leaders in the new datadriven economy, driving the fields of cloud computing, data analytics, the Internet 

of Things, and others. They depend on the ability to transfer information across borders to and from the United States. However, many foreign governments are restricting the free flow of data. We are increasingly seeing policies that try to force 

U.S. businesses to shed jobs in the U.S. and localize them into foreign markets. Congress has called for action against digital trade impediments. The President has extensive trade enforcement authorities. As Secretary, what actions will you pursue 

to obtain a level playing field for America’s digital trade champions? 

Answer. I oppose localization of data and if confirmed will work hard to protect 

our companies against it. It may well be useful to take some countervailing measures. As to Congressional action, if confirmed, I will work with Commerce Department’s General Counsel to determine whether our response to the problem might 

necessitate legislation. 

Question 12. Transatlantic data flows are enormous, and critical to U.S. business 

and to job growth in the United States. But the European Union repeatedly has destabilized data transfers to the United States, most recently by invalidating the Safe 

Harbor Framework administered by the Department of Commerce. Commerce led 

successful efforts to put a successor agreement, the U.S.-EU Privacy Shield, in place 

in 2016. Close to 1,800 companies of all types and sizes already have joined or are 

in the process of signing up for the Privacy Shield. It is of particular benefit to 

smaller and medium-sized companies. European privacy advocates have challenged 

the Privacy Shield, however, including in a pending European court case. As Secretary, what efforts will you take to implement and defend this important agreement? 

Answer. If confirmed, as Secretary of Commerce I will be responsible for promoting the foreign and domestic commerce of the United States. I will do my best 

to do so in all areas, including with respect to digital trade and data privacy. Should 

the European courts find any essential part of the Privacy Shield is contrary to law, 

the Department will once again lead efforts to find a solution. 

Question 13. Cloud computing, data analytics and other technological advances 

have led to incredible growth in the amount and economic importance of data flowing between the United States and Europe. Small and large businesses of all kinds 

in the U.S. rely on data transfers to compete and grow in the EU. However, these 

data flows to the U.S. have been under attack in Europe. One of the most serious 

problems recently was the invalidating of the Safe Harbor Framework administered 

by the Department of Commerce. Concerns about U.S. Government surveillance of 

European communications were a principal cause of this attack on data flows to the 

US. The Commerce-negotiated successor agreement, the U.S.-EU Privacy Shield, 

has been enormously important for U.S. businesses to operate and expand in Europe. The ongoing success of the Privacy Shield requires European confidence that 

our government sufficiently respects foreign privacy interests when conducting national security surveillance. As Secretary, will the Commerce Department work with 

U.S. intelligence and diplomatic agencies to maintain the level of trust on which the 

free flow of data for commercial purposes depends? 

Answer. I am a strong believer in the benefits of cloud computing. If confirmed 

I look forward to learning more about the Department’s work in this area and what 

additional steps the Department can take, both alone and in concert with other Federal agencies, to facilitate cloud computing and other forms of electronic commerce 

and communications. 

Question 14. The Commerce Department has an important role in licensing and 

enforcing U.S. export controls on dual use goods that could be used for either civilian or military purposes. There is always tension between promoting exports and 

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the free flow of commerce and protecting U.S. national security. It is also difficult 

for the U.S. to keep up with technology as it rapidly improves to keep U.S. export 

policy up to date with current technology. What are your priorities for updating U.S. 

Export policy? How will you balance the promotion of exports and the control of 

technology to protect U.S. national security? 

Answer. I will work with all the stakeholders, including those at Commerce and 

the other Federal agencies, industry and the Congress, to ensure U.S. companies 

can compete in international markets while protecting our national security and foreign policy interests. 

Question 15. We do not want to give Russia, China or North Korea any additional 

tools to hack into U.S. systems and infrastructure. Our power grids and other infrastructure are already way too vulnerable. How will you make sure that Russian and 

other foreign companies do not end up with controlled U.S. Technology given some 

of their recent aggressive and hostile actions against the United States? 

Answer. If confirmed, I will review the existing controls with the relevant stakeholders to ensure the controls are sufficient to prevent sensitive U.S. technology 

from ending up in the wrong hands. 

Question 16. Mr. Ross, you have been quoted as being against free trade agreements including the Trans-Pacific Partnership and have stated that the U.S. needs 

a ‘‘more radical, new approach to government.’’ The TPP is significant as it includes 

for the first time ever in a fair trade agreement provisions protecting wildlife and 

farm animals, and some of the toughest environmental protections of any trade 

agreement in history. What does your approach to trade agreements look like and 

does it include consideration for environmental, farm animals, and wildlife protections? 

Answer. Those are certainly appropriate topics for negotiations. But I am a big 

believer in quantification of objectives and having clear tools for enforcement. 

Question 17. As the Secretary of Commerce, you would oversee NOAA, and the 

National Weather Service. President-Elect Trump has called for a ‘‘hiring freeze on 

Federal employees to reduce the Federal workforce.’’ This freeze would not apply to 

the military, or to jobs that impact public health and safety. 

Mr. Ross, if confirmed, would you determine that National Weather Service employees fall under the latter category: jobs that impact public health and safety? As 

of mid-December, more than 650 jobs were vacant at the National Weather Service, 

including many that are deemed ‘‘Emergency Essential’’ by the Department of Commerce. Will filling these vacancies be a priority for you, if confirmed? What will you 

do to ensure that a huge employee deficit, like the one impacting the National 

Weather Service today, does not happen during your tenure as Secretary? 

Answer. An early priority, if confirmed, will be to meet with the management of 

the National Weather Service to understand why they have so many positions unfilled. I will take steps to see that ‘‘emergency essential’’ personnel responsibilities 

are being appropriately handled, and if I am convinced the NWS are understaffed 

I will work diligently to address the issue. 

Question 18. Under your leadership, what improvements could be made to the operations, management and effectiveness of the National Weather Service? Do you 

see opportunities for increased stakeholder engagement in identifying and addressing gaps in technologies and research? 

Answer. If confirmed, I look forward to getting fully briefed on the Weather Service and its programs. I agree the NWS plays a critical role in protecting lives and 

property, and I look forward to working with you and Congress to address these important issues. 

Question 19. One of the primary criticisms of the Weather Service is the fact that 

the operational forecasters at The National Weather Service are in a different silo 

compared to the NOAA scientists in the Office of Atmospheric Research (or OAR) 

who are tasked with research and development of new weather forecasting models, 

etc. While we have been aware of this problem for some time, very little has been 

done to address it. How do you propose we improve research, development and operations of weather research and operations between the National Weather Service 

and the Office of Atmospheric Research? 

Answer. See the answer to the previous question. 

Question 19. In 2011, Washington state became the first state to receive full dual 

polarization Doppler radar coverage—the best Doppler radar technology available. 

Despite this upgrade, there are still Doppler radar coverage gaps, including a large 

gap in Central Washington. Forecasting in this region is essential for emergency responders who need accurate and timely weather data to safely fight wildfires. This 

gap also impacts highly populated areas, including Seattle and Tacoma, because it 

110 

is difficult to track weather systems approaching from the East. I am concerned that 

NOAA does not have a plan to fill the Doppler radar gap in Central Washington. 

As Secretary, will you work with me to address the Doppler radar gap in Central 

Washington? 

Answer. I agree that the NOAA plays a critical role in protecting lives and property through accurate and timely weather forecasting. As a resident of Southern 

Florida, I certainly appreciate how important it is that our communities have accurate warnings and forecasts. If confirmed, I look forward to working with you on 

this issue. 

Question 20. Every day men and women serving in the Coast Guard risk their 

lives to carry out search and rescue missions. On average, the Coast Guard conducts 

45 search and rescue cases per day with many of these operations occurring in very 

remote areas of our country. Success of these missions and the lives of these brave 

men and women are heavily reliant on timely and accurate weather forecasts. 

If confirmed, what is your plan to improving weather data, forecasting, and modeling for remote areas of the country and ensuring these weather products are readily available to the Coast Guard and the public? There are a number of heavy 

weather stations in Washington state. These stations are in areas with significant 

oceanographic and atmospheric monitoring needs to ensure safe transportation 

there. Often buoys are damaged by extreme storms, or are lost at sea. Yet due to 

aging vessel assets and vessel availability, sometimes there is a long lag before 

NOAA weather buoys can be repaired. What will you do to improve response to broken and lost oceanographic infrastructure, particularly in areas that are known to 

be dangerous to mariners, as well as areas that are critical for Coast Guard search 

and rescue operations? 

Answer. I support NOAA’s fleet modernization plan, which would help to address 

this issue. A clear goal of the Weather Service is to provide accurate and timely 

weather forecasting to the public, and if confirmed I look forward to learning more 

about the situation for Washington state and remote communities. 

Question 21. Believe it or not—fisheries will be a big part of your job as Secretary 

of Commerce. Part of supporting fishing and maritime jobs, is ensuring that we will 

continue to support and rebuild sustainable fish stocks that those jobs depend on. 

Will you support Pacific salmon funding including: Pacific Coastal Salmon Recovery 

Fund, the Mitchell Act, Salmon Management, Protected Species: Salmon, and hatchery funding? 

Answer. I have not yet been briefed on Pacific salmon fishing issues. If confirmed, 

I look forward to working with you on this important matter. 

Question 22. As Secretary of Commerce, you would oversee programs critical to 

job growth in Washington state’s $30 billion maritime sector. Fishing supports shipbuilding, gear manufacturing, seafood processing, restaurant, trade and other jobs. 

Will you commit to making fishing jobs a priority of the Department of Commerce? 

What is your plan to support fishing and maritime jobs in the United States? 

Answer. I support sustainable fishing under the Magnuson-Stevens Act. By maintaining healthy fish stocks the Department of Commerce ensures the continuation 

of good jobs in the commercial and recreational fisheries and the marine industries 

that support fishing. 

Question 23. I understand that as a key part of the business plan for Diamond 

Shipping company—one of your ventures—was to build all 33 tanker vessels overseas, in South Korea and Japan not in American shipyards. While you acquired this 

company when these 33 vessels had already been built, your S1 form submitted to 

the SEC in 2014 indicated that Diamond Shipping intended to build 6 new medium 

range tanker vessels in South Korea, for delivery in 2014 and 2016—when you had 

acquired shares and served as the Director. I am concerned that this is another example of exporting potential American middleclass jobs overseas, when we need 

good shipbuilding jobs here at home. As Secretary, what will you do to support 

American shipyards? 

Answer. I support NOAA’s fleet modernization plan. All NOAA vessels are U.S. 

flagged vessels built and repaired in U.S. shipyards. 

Question 24. Yes or no: Do you support the Jones Act? 

Answer. As I said at the hearing, I support the Jones Act and believe it has been 

instrumental in maintaining American shipbuilding jobs. 

Question 25. In an effort to support American shipyards, what shipbuilding, training and other maritime workforce investments will you consider as a part of the 

Trump infrastructure plan? 

Answer. If confirmed, I look forward to working with the President and Congress 

to enact an infrastructure plan that maximizes jobs for American workers while imVerDate Nov 24 2008 09:55 Jul 10, 2017 Jkt 075679 PO 00000 Frm 00114 Fmt 6601 Sfmt 6621 S:\GPO\DOCS\25974.TXT JACKIE
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proving our Nation’s economic foundation and enhancing our technological leadership. 

Question 26. Thousands of commercial, subsistence and recreational fishermen 

have contacted me about protecting salmon in Bristol Bay, Alaska. Bristol Bay is 

home to the largest sockeye fishery in the world, and one of the largest Chinook 

fisheries. The commercial sockeye fishery is worth $1.5 billion alone, supporting 

thousands of jobs in Washington state. 

According to EPA’s Draft Watershed Assessment released on April 30, 2013, ‘‘An 

Assessment of the Potential Mining Impacts on Salmon Ecosystems of Bristol Bay, 

Alaska’’ (EPA 910–R–12–004Ba), the proposed Pebble Mine threatens Bristol Bay 

salmon habitat. The Pebble Mine would be one of the largest hard rock mines in 

the world and the largest copper porphyry mine in the United States. Water contamination and habitat loss from the construction and operation of a hard rock mine 

in Bristol Bay would put thousands of fishery-related family wage jobs at risk. 

NOAA is responsible for research and aspects of salmon management in the Bristol Bay region. What is your position on the proposed Bristol Bay Pebble Mine? Are 

you prepared to direct NOAA fishery scientists and economists to become more engaged with the EPA? 

Answer. NOAA scientists will provide comments on EPA permits for matters 

under NOAA’s jurisdiction as part of the National Environmental Policy Act (NEPA) 

process. I look forward to reviewing those comments, and discussing this issue with 

you as it unfolds. 

Question 27. In addition to the $1.5 billion annual economic value of the Bristol 

Bay sockeye fishery, are you aware of the importance Bristol Bay salmon to Alaska 

Native subsistence users? Subsistence salmon harvest is 60 percent of the overall 

diet of most area residents. Not only is subsistence salmon at the center of Alaska 

Native culture, but today, an economic imperative as well. Are you familiar with the 

cost of living in rural Alaska? The cost of one gallon of milk can be as high as 

$10.00. There is no replacement value for subsistence fish that is a necessary part 

of the subsistence diet. How do you view the Department of Commerce’s role in ensuring subsistence salmon users have healthy salmon runs for generations to come? 

How will your agency work with Alaska Native people to ensure they have a voice 

in fisheries management and research? 

Have you ever consulted with a federally-recognized Tribe? What training have 

you received regarding the Federal Government’s treaty trust responsibility to Indian Tribes? What training will you receive to understand and participate in government to government consultation with Indian Tribes? 

The Council on Environmental Policy in the Executive Office of the President has 

been working with the Department of Commerce and NOAA to better support the 

Treaty Rights At Risk Initiative of the Northwest Indian Fisheries Commission. Will 

you support this work to ensure our tribes have fish for generations to come? 

Answer. If confirmed, I look forward to being involved in government to government consultations with Federally-recognized Tribes and being briefed on the treaties and statutes that are in place to protect subsistence fishing resources in Alaska 

and the Pacific Northwest. It is my understanding that the United States has been 

a global leader in ending high seas driftnet fishing practices that adversely impacted U.S. and Canadian salmon, and that the North Pacific Fishery Management 

Council regularly adopts fishing quotas and bycatch limits that are designed to ensure sustainable subsistence catches in Alaska. 

Question 28. The Commerce Department undertakes many important missions, 

and fisheries management is one of the most significant. As you know, commercial 

and recreational fishing provide material contributions to our Nation’s economy. In 

2015, the commercial marine fishing industry contributed $48.7 billion to the gross 

national product, and U.S. consumers spent an estimated $96 billion on fishery 

products. Some 8.9 million marine recreational anglers fished in 2015, contributing 

additional billions to the U.S. economy. Over the past twenty plus years, this Committee has overseen a significant improvement in the status of the Nation’s fisheries. Since 2000, NOAA Fisheries reports that 40 formerly overfished species have 

been rebuilt and the number of overfished species has dropped from 92 to 38. Continuing this positive trend remains one of the Commerce Department’s most important missions, since struggling fish populations curtail fishing opportunities. 

Do you share our commitment to improving sustainable management of U.S. fisheries, including increasing U.S. jobs and revenue for fishing businesses? 

What should the role of science be in fisheries management? 

What do you see as the primary challenges to improving fisheries management, 

and how would you address those challenges? 

112 

In your submissions to the Committee, you stated that one of the principal challenges facing the Commerce Department is: ‘‘Integrating Technology into the Department to improve efficiency as well as the timeliness, depth, and breadth of data 

. . .’’ 

Many fishermen and others have expressed concern about the nature of fisheries 

data collected by the National Oceanic and Atmospheric Administration, one of the 

Department’s largest subagencies. Stakeholders doubt that NOAA collects data as 

efficiently and effectively as it could, and that antiquated internal processes limit 

the utility of that data when it is collected. 

How would you improve fisheries data collection and analysis? How important is 

user generated data, and to what extent can we leverage that data to improve the 

science behind fishery management decisions? 

Collecting, analyzing and deploying accurate and timely data on the nature, condition, and extent of our fisheries can help ensure that these stocks are managed in 

the most economically effective ways to the long-term benefit of our fishermen and 

fishing communities. As part of this system of management, electronic monitoring 

and reporting of catch can be a cost-effective way to more quickly and efficiently 

embrace these goals. 

Would you support continuing to integrate this technology in order to help fishermen by improving management? 

Answer. I share the Committee’s commitment to sustainable fisheries as embodied 

in the Magnuson-Stevens Act. Good science on fish stocks and oceanic conditions is 

essential to meet the MSA’s sustainable fishery goals. Collecting accurate information regarding directed fishing and bycatch is a critical component of effective fishery management. I am aware that stationing observers on smaller fishing vessels 

can be challenging. If confirmed, I would support continuing to work with industry 

to find cost effective, accurate and timely methods for catch and bycatch reporting 

in order to improve fishery management. 

Question 29. Two-thirds of all seafood landed in the U.S. is exported and twothirds of those exports come from seafood companies operating in Alaska and the 

Pacific Northwest. Our most important markets are China, Japan and the EU. At 

least from a seafood trade perspective, the Trans-Pacific Partnership (TPP) was the 

kind of big win that President-elect Trump has touted for trade agreements. Japan 

reduced or eliminated tariffs for a number of important seafood products exported 

from Washington State, including Alaska pollock, Pacific cod and salmon. The U.S. 

didn’t make any meaningful concessions because we have few tariffs on imported 

seafood. Washington state strongly supported the seafood provisions in the TPP 

which also could have set the stage for a T–TIP agreement that would have provided further benefits. 

Both NOAA Fisheries trade offices and the International Trade Administration 

should be working closely with our seafood industry to knock down foreign tariffs 

and eliminate other trade barriers. Washington seafood companies are facing strong 

headwinds from a strong dollar and stalled trade agreements. 

Will you make seafood export promotion a priority working through two key agencies within the Department of Commerce? 

How do you propose the Administration could work more closely with the fishing 

industry on trade priorities and vulnerabilities? 

Much of the Alaska fishing fleet is based in Washington, creating thousands of 

jobs in both states. Over the past five years, approximately 80 percent of Alaska’s 

groundfish and crab production was sold to export markets—and about one-third of 

that production volume is reprocessed in China. After secondary processing in 

China, these products are re-exported to markets in Europe, the United States, and 

Japan—ultimately bringing money back to the United States and improving our 

trade deficit. Fishing companies and fishermen in Washington are concerned that 

significant import tariff adjustments to reprocessed Alaska groundfish and crab 

products could increase their cost of business, increase prices and harm our state’s 

economy. Do you support maintaining the current tariff schedule for these products? 

Answer. If confirmed, I look forward to finding ways to address the current trade 

imbalance in fisheries so that our fishery resources create more jobs here in America. I have not been briefed on the work that NOAA fishery trade offices and the 

International Trade Administration are doing with industry, but if confirmed I will 

certainly learn more about those efforts and look forward to working with you and 

other members of the Committee on these matters. 

Question 30. The REFI Pacific Act was enacted into law as part of the 2014 National Defense Authorization Act. The REFI Pacific Act authorizes NOAA Fisheries 

to refinance a buyback loan originally issued in 2005 to the west coast groundfish 

sector. The original loan was issued to reduce capacity by decreasing the number 

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of participants in the fishery through a voluntary buyback program to be repaid by 

the remaining participants in the fishery. While it effectively removed excess fishing 

capacity and was an important first step towards the now rationalized and sustainable fishery, the original loan resulted in unintended consequences for the remaining participants in the fleet, including: 

1. The interest rate on the original loan is high, at 6.95 percent, much higher 

than the treasury rate. 

2. The landings fee used to collect the loan payment is high at 5 percent of exvessel landings value per trip. 

3. Due to a failure of NOAA Fisheries to issue regulations in a timely manner to implement the landings fee nearly $8 Million in excess interest accumulated 

on the loan before payments could be made. 

The REFI Pacific Act was enacted into law in order to lower the interest rate 

down to PRIME + 0 percent and lower the landings fee down to 3 percent or lower. 

At the time of its passage, we understood the cost of the legislation to be fully covered by the offsets provided in the NDAA. After enactment, the Office of Management & Budget determined that implementation of the Act would require a $10 Million appropriation to NOAA Fisheries to offset the foregone revenue to the Treasury. While NOAA included this $10M in its FY15 and FY16 Budget requests, the lack 

of completed appropriations bills has made securing this appropriation impossible. 

More importantly, we believe the OMB determination is in error and that such an 

appropriation should not even be required. 

Will you pledge, if confirmed, to work with my office and the other sponsors of 

the REFI Pacific Act as well as OMB to find an effective pathway forward to resolve 

this issue once and for all and provide our west coast fishermen with the economic 

relief they need? Would you support creative approaches, including third party financing to allow fishermen to pay off the loan, soonest? 

Answer. I have not yet been briefed on the REFI Act but if confirmed commit to 

reviewing the matter carefully to identify ways to resolve it. 

Question 31. I am concerned about potential conflicts of interest and appearance 

of conflicts between your position, if confirmed, as Secretary of Commerce, and your 

financial interest in the Diamond S. Shipping Group. In your letter to the Department of Commerce Designated Agency Ethics Official Mr. David Maggi, dated January 15, 2017, you stated your intent to retain financial interest in the Diamond S. 

Shipping Group, the second largest medium-range tanker company in the world. Diamond S. Shipping owns and operates 33 tanker vessels that transport petroleum 

and other potentially hazardous products. The Department of Commerce plays a significant role in oil spill research, mitigation, recovery and response of petroleum 

products, and plays an oversight role when oil is spilled from a ships, including medium range tankers. I request that you supply the members of the Senate Committee on Commerce Science and Transportation with a detailed accounting of 

which specific shipping and oil spill related activities you will recuse yourself from, 

if confirmed as the Secretary of Commerce. 

In March 1989, the Exxon Valdez tanker spilled 11 million gallons of oil in Prince 

William Sound in Alaska, resulting in devastating impacts to the environment and 

the regional economy. Shortly after, the Oil Pollution Act of 1990 (33 U.S.C. § 2701 

et seq.) was signed into law by President George H.W. Bush on August 18, 1990. 

The Oil Pollution Act is the primary law governing polluter liability, the Oil Spill 

Liability Trust Fund, and oil spill response, prevention and research. In summary, 

the Oil Pollution Act is how we make polluters—not taxpayers—pay for oil spills. 

The law grants the Department of Commerce significant authorities and responsibilities with regards to oil spill response and environmental restoration. In the decades 

since the passage of this iconic bill, former Secretaries of Commerce have had a critical role in oil spill response, enhancing and expanding oil spill monitoring, research, risk management and economic development activities related to oil spills 

under their authority. 

As Secretary of Commerce, you would oversee oil spill activities related to the 

shipping industry. Your decisions could impact the regulatory environment for both 

your own and your competitor’s shipping companies. You would also have authority 

to determine the financial liability facing tanker companies that pollute our waters. 

In your letter to Commerce ethics on January 15, 2017, you stated: 

‘‘I will not participate personally and substantially in any particular matter that 

to my knowledge has a direct and predictable effect on the financial interests of 

the entity or its underlying assets for as long as I own it, unless I first obtain 

a written waiver, pursuant to 18 U.S.C. § 208(b)(1), or qualify for a regulatory 

exemption, pursuant to 18 U.S.C. § 208(b)(2).’’ 

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However, when I inquired about your intentions to recuse yourself from oil spill 

related duties if confirmed at your nomination hearing in the Department of Commerce, your response was: 

‘‘The research has suggested that there has never been a shipping case before the 

Commerce Department.’’ 

The Exxon Valdez tanker oil spill is a glaring example of a ‘‘shipping case’’ before 

the Department of Commerce. It has been 27 years since this oil spill—and the Department of Commerce and the National Oceanic and Atmospheric Administration 

(NOAA) are still monitoring, studying and mitigating the oil spill impacts to the environment. In 2014, NOAA published a report on the lessons learned 25 years after 

the spill. The report contained a catalog of devastating ongoing impacts including 

the likely local extinction of a pod of orcas, severe damage to Pacific herring populations, and significant declines in important forage fish species in the marine ecosystem. 

While you stated that your research had not identified a shipping case before the 

Department of Commerce, your own Securities and Exchange Commission filings 

contradict your statement to the Senate Commerce Committee. Diamond S. Shipping Group’s 2014 S1 Form filed with the Securities and Exchange Commission outlined the Oil Pollution Act as a law that applies to the company’s shipping operations, and therefore, investors such as yourself. The Department of Commerce is 

responsible for carrying out significant portions of the Oil Pollution Act. This clearly 

presents a conflict of interest between your potential role as Secretary, and your role 

an investor in the shipping industry as a participant, and a competitor. 

To that end, I ask you to clarify the types of activities that you will recuse yourself from, if you are confirmed, as the Secretary of Commerce. Specifically, will you 

recuse yourself from: 

• Natural Resource Damage Assessments related to oil spills in the marine environment or other environments that fall under the Department of Commerce 

(33 U.S. Code § 2706); 

• Oil spill monitoring decisions, including oversight of the Federal budget requests with respect to monitoring during and after oil spills, as well as determinations with regard to developing baseline datasets needed for future oil spill 

Natural Resource Damage Assessments (33 U.S.C. § 2712); 

• Federal fishery disaster determinations in areas during or after an oil spill (16 

U.S.C § 1861a and 1864); 

• Oil spill research, including oversight of the NOAA budget on oil spill prevention, response, risk management, policy and other research (33 U.S.C. 2761 and 

2762); 

• Any decisions related to NOAA’s participation on the Interagency Coordinating 

Committee on Oil Pollution Research (33 U.S.C. 2761) as well as any influence 

on the prioritization of agency exclusive or collaborative oil spill research 

projects and initiatives; 

• Membership, actions, and decisions related to the Gulf Coast Ecosystem Restoration Council as established by the Resources and Ecosystems Sustainability, 

Tourist Opportunities, and Revived Economies of the Gulf Coast States Act (33 

U.S.C. 1321): 

• Any oversight of oil spill response, preparedness, prevention, risk assessments 

and research which relate to Puget Sound (33 U.S.C. 2761). 

Answer. I am fully supportive of the vital work NOAA is engaged in with respect 

to planning for and executing responses to oil spills in our Nation’s marine waterways, for assessing natural resource damage that results from such spills, and for 

working on mitigation and recovery plans. As I hope I made clear in my testimony, 

I regard the scientific enterprise of NOAA, and other elements of the Commerce Department, as a great national resource. Particularly as a Floridian, I share your concern for protection of all marine environments, and for the economic disruption that 

may result from an oil spill in vital commercial waterways. 

You are certainly correct that, if confirmed, my duties as Secretary of Commerce 

will include oversight to ensure effective execution by NOAA of its oil spill response 

and recovery responsibilities. Indeed, it is exactly because of my role as head of the 

Department, as well as my commitment to these programs, that I cannot undertake 

the broad and preemptive recusal that you propose. Your proposal is far broader 

than the recusal required by Congress in section 208 of Title 18, United States 

Code, and the Executive Branch in implementing regulations. This law and the implementing regulations are administered by Department of Commerce ethics offiVerDate Nov 24 2008 09:55 Jul 10, 2017 Jkt 075679 PO 00000 Frm 00118 Fmt 6601 Sfmt 6621 S:\GPO\DOCS\25974.TXT JACKIE
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cials and the Office of Government Ethics, both of whom review and determine the 

extent of any recusals necessary under the law. 

As you know, Congress in section 1006 of the Oil Pollution Act (33 U.S.C. 2706) 

specifically identified the NOAA Administrator as the primary person in the Department responsible for natural resource damage assessment implementation. The vast 

majority of NOAA oil spill response and recovery activities are conducted within 

NOAA by scientists, NOAA Corps officers, and other professionals under the direction of NOAA’s Administrator and Assistant Administrator, and the NOAA Administrator will remain the lead official in the Department in this regard. In the unlikely event that a matter involving a vessel associated with Diamond S. Shipping 

Group should arise, I assure you that I will recuse myself in accordance with the 

commitments that I made in my ethics agreement. Further, I will at all times rely 

on the monitoring and judgment of the Department’s ethics officials to ensure that 

I do not participate in any matter about which they advise me that a conflict of interest would arise. 

If there is another unfortunate event of the magnitude of the Exxon Valdez or Deepwater Horizon disasters, then there may well be a need for leadership and support of NOAA’s efforts at the Secretarial level. In such a case, and only with the 

agreement of the Department’s ethics officials, it would be my duty as Secretary to 

provide the public and the President the benefit of my experience to supplement 

that of the NOAA Administrator. 

Question 32. I am also concerned about other Department of Commerce activities 

regarding shipping— 

• NOAA maps and monitoring anthropogenic sound impacts on the marine environment—including shipping noise. Shipping noise has had a negative impact 

on endangered Southern resident orcas in Puget Sound and the Salish Sea. Will 

you recuse yourself from anthropogenic sound research, funding for research, 

risk assessments and related endangered species act consultations? 

• As that shipping noise has an impact on Southern resident orcas, will you 

recuse yourself from all activities related to Southern resident orca conservation, research, and critical habitat determinations and consultations? 

• Will you recuse yourself from ballast water policy, research, treatment technology evaluations and invasive species introduction risk assessments and consultations? 

Answer. I share your concern for the marine environment and recognize the many 

different and complex interactions that can have impacts on the health of the marine ecosystem. Invasive species transported by ballast water and noise in the marine environment are two significant examples of how activities vital to our Nation’s 

well-being—for example maritime commerce and national defense—can have unintended impacts on the marine environment. NOAA plays a crucial role in researching and understanding these impacts, and in recommending and implementing 

strategies to address or mitigate them. I fully support the work NOAA and other 

agencies of the Department do in this regard. 

The recusal you request above goes well beyond the scope required by law and 

my ethics agreement and would hinder the performance of my duties to the public 

and the President should I be confirmed as Secretary of Commerce. If confirmed, 

I will faithfully execute the law and the commitments in my ethics agreement, and 

will follow the advice of the Department’s ethics officials with respect to any matter 

about which they advise me that a conflict of interest would arise. 

Question 33. You are founder and former Chairman of the International Coal 

Group, a subsidiary of Arch Coal. Arch Coal was a partner in the proposed Longview coal export terminal until May 2016, when it gave up its 38 percent share to 

Lighthouse Resources, the project’s last remaining supporter. This move came after 

Arch filed for bankruptcy in January 2016. After receiving a $275 million bankruptcy loan, Arch announced that it would continue its operations, despite laying 

off hundreds of miners. In October 2016 the company announced its intent to submit 

a bankruptcy exit strategy in early 2017. 

As Secretary of Commerce, you would be responsible for overseeing departments 

that play a major role in protecting waterways from coal pollution. 

Will you recuse yourself from research, analysis, policy and budget recommendations regarding the impact of coal dust to marine habitats in Washington and the 

United States? 

Do you believe in Climate Change and that humans are part of the problem? Or 

do you believe it is a ‘‘hoax’’ like President-Elect Trump? 

Please describe the role of the Department of Commerce in combatting climate 

change? 

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I am very concerned about the impact of ocean acidification to marine resources. 

In Washington state ocean acidification is a jobs issue. The shellfish industry supports thousands of jobs in Washington, and shellfish are dying because their shells 

are dissolving. Furthermore, ocean acidification impacts species up the food chain, 

including salmon-which also support thousands of jobs and billions in economic activity. Mr. Ross, as someone with a history operating coal companies which contributed to climate change, how will you work to support ALL jobs, including the jobs 

impacted by burning coal in my state? 

Answer. To be clear, Arch Coal acquired International Coal Group in 2011. I have 

never had a position with Arch Coal. 

I share your concern for protection of all marine environments, and for the economic benefits that accrue from healthy waterways. The work of NOAA in support 

of these goals is one of the vital missions of the Department. While I expect the 

NOAA Administrator to exercise primary policy and administrative oversight of 

these responsibilities, I will lead the Department and participate in decisions as necessary and appropriate. If confirmed, I will faithfully execute the law and the commitments in my ethics agreement, and will follow the advice of the Department’s 

ethics officials with respect to any matter about which they advise me that a conflict 

of interest would arise. 

Question 34. NOAA currently operates and maintains a fleet of 16 ships with a 

goal of providing 235 days at sea per ship, annually. These vessels provide ocean 

observation data and support crucial species stock assessments which are critical for 

the health and economic vitality of our Nation’s fisheries. Currently, 8 ships in the 

fleet will either meet or exceed design service life by 2028. 

If confirmed, how would you avoid a gap in NOAA Corps fleet capabilities to ensure timely and fiscally responsible recapitalization of the NOAA Corps fleet? 

Answer. I support modernization of NOAA’s fleet. If confirmed I look forward to 

being briefed fully on NOAA’s current plans and working with you and other members of the Committee to avoid the gap you describe. 

Question 35. The West Coast of the United States is a risk from a near-field tsunami, generated from the 800 mile long Cascadia subduction zone located off the 

coasts of Washington, Oregon and Northern California. Due to the close proximity 

of the fault, small warning windows, the magnitude of previous earthquakes resulting from the fault, and growing populations in the tsunami zone, this could be a 

devastating national emergency with a potential loss of life of over 14,000 Americans. More than 7,000 highway bridges and 16,000 miles of roadway are expected 

to suffer moderate to severe damage, including all routes to the Pacific Coast and 

Washington’s major east-west corridors and ports. The four-day Cascadia Rising exercise carried out in Pacific Northwest in June revealed a grossly inadequate plan 

and lack of resources available to sufficiently address the Cascadia scenario. 

As Secretary of Commerce you will be responsible for all tsunami forecasting, 

monitoring, warnings, and research. 

Is investing the Department of Commerce’s time and resources to expand and enhance the country’s tsunami preparedness a priority for you? 

If confirmed, what steps and actions will you take within your authority to improve and ensure the best available technology is used to protect the tens of thousands of people who will be impacted by a Cascadia Rising tsunami event? 

I am particularly concerned about the Coast Guard members, and their families, 

stationed in the Cascadia inundation zone. I have been working with the Pacific Marine Environmental Laboratory to improve data available to the Coast Guard for 

contingency planning needed to assist the Coast Guard in preparing for a tsunami 

event. If confirmed, will you support continuing the relationship between Coast 

Guard District 13 and the Pacific Marine Environmental Laboratory? What other 

suggestions do you have to improve data availability and coordination to the Coast 

Guard? 

Answer. I support utilizing every cost-effective means at the Department’s disposal to improve the accuracy and usefulness of NOAA’s weather and oceanic data 

in order to protect life and property. Tsunami warnings are important to protect 

people in coastal areas prone to such events, and if confirmed I look forward to 

learning more about the Department’s tsunami warning systems and working with 

Congress to address the needs of affected coastal areas. 

Question 36. Aluminum had been very important to my state for many years. 

However, unfair trade practices have driven ALCOA to close smelters and eliminate 

jobs in Washington state and around the country. In 2015, aluminum smelting and 

fabricating was prioritized, along with steel, in bilateral negotiations, including the 

Strategic & Economic Dialogue (S&ED) and the Joint Committee on Commerce and 

Trade (JCCT). 

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In order to level the playing field and bring back American jobs for manufacturing 

sectors that have been adversely affected by pervasive overcapacity such as aluminum and steel, what policies will this administration put forward? 

What is the new Administration’s plan to address overcapacity in bilateral engagements with China? 

The USTR announced that it is filing a consultation request at the WTO regarding subsidies for Chinese aluminum smelters. 

What role to you anticipate the Department of Commerce to have in that and 

similar cases addressing pervasive overcapacity of Chinese production in the future? 

Answer. As long as the Chinese have massive overcapacity they will continue to 

dump. State-owned enterprises are not required to make a profit because state 

owned banks continue to prop them up. This sort of behavior is part of the proof 

that China is not a market economy. If confirmed, I will seek to implement faster 

and more certain enforcement, ensure collection of duties that are imposed, and will 

include a discussion of the State-owned enterprise problem in all future trade negotiations with the aim of presenting a common front against this problem. 

Question 37. How would you anticipate the Department of Commerce strengthening trade enforcement activities, particularly in cases where foreign producers are 

using innovative but questionable trade practices including transshipment, intentional product misclassification, and other tools of circumvention, to avoid U.S. tariffs and AD/CVD orders—as is the case for aluminum metal and for specific aluminum products? 

How will the U.S. Department of Commerce foster and protect high growth, innovative U.S. manufacturing sectors such aluminum? 

Answer. If confirmed, I intend to address transshipment, misclassification and 

other questionable trade practices as part of all future trade agreements. By addressing these and other issues in fair and balanced trade agreements we create an 

environment in which innovative businesses can thrive and provide high quality 

jobs here in the United States. 

Question 38. The U.S. Department of Commerce works closely with other U.S. 

Government agencies to promote U.S. exports. One of those agencies is the U.S. Export-Import Bank (EXIM Bank). However, EXIM Bank does not have a quorum on 

its Board of Directors and it is currently unable to support deals over $10 million. 

In 2014, the Bank authorized more than $20 billion in export financing and supported almost 165,000 American jobs. However, last year, because it did not have 

a quorum, it was only able to do a fraction—authorizing $5 billion in financing and 

supporting 52,000 jobs. The Bank has been without a quorum despite having broad 

bipartisan support in both chambers as demonstrated when it was reauthorized by 

a supermajority in 2015. 

Given the Bank’s ability to reduce risk and help American manufacturers stay 

globally competitive, do you agree that the Export-Import Bank should be fully operational? 

Do you agree that a working quorum is needed as soon as possible for American 

job growth? 

Answer. I agree that some form of financing is needed to provide a level playing 

field for American companies to export their products overseas. This is particularly 

the case for small and medium size companies who lack the resources and expertise 

available to larger companies. Whatever mechanism Congress chooses to use needs 

to be able to make decisions and award financing in order to be effective in support 

American companies seeking to export overseas. 

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. AMY KLOBUCHAR TO

WILBUR L. ROSS, JR. 

Question 1. As Co-Chair of the Senate Broadband Caucus, I believe that expanding access to broadband is the infrastructure challenge of our generation. I have 

worked on ‘‘dig once’’ policies to coordinate highway construction and installation of 

broadband infrastructure and streamline regulations to promote broadband deployment. I understand you have experience with broadband deployment, including installing conduit to minimize repeated excavations, a key ‘‘dig once’’ principle. 

Given the leadership the Department of Commerce has shown on broadband 

issues, will you work with me to strengthen broadband deployment policies throughout the Federal Government including ensuring that any infrastructure investment 

efforts include ‘‘dig once’’ principles? 

Answer. I believe in the ‘‘dig once’’ principle and look forward to working with 

Congress to implement policies that promote broadband deployment in the most expeditious and cost effective manner possible. 

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Question 2. The Broadband Opportunity Council was formed to coordinate efforts 

across the Federal Government to support and streamline broadband deployment. 

Twenty five Federal agencies and departments are members and it is co-chaired by 

the Department of Commerce and Department of Agriculture. In September 2015, 

the Council issued a report with its recommendations, which incorporated several 

of the comments I had submitted. Since the report was released some of the recommendations have been implemented, but there is still much work to be done. 

If confirmed, will you continue to work with agencies and departments across the 

Federal Government to promote broadband deployment, including by working to implement the outstanding recommendations from the Broadband Opportunity Council? 

Answer. Yes, I support broadband deployment as an important asset needed to 

promote jobs and facilitate advanced manufacturing and technology innovation. I 

look forward to being briefed on the Department’s broadband efforts to date and 

working to maximize the effectiveness of the Department’s programs in this regard. 

Question 3. In 2010 my bill, the Export Promotion Act, was signed into law to improve export assistance for small and medium-sized businesses. Since then, the U.S. 

Foreign and Commercial service has been doing excellent work in Minnesota to help 

these businesses find export markets they could never locate by themselves. I have 

also been an advocate of making our foreign embassies more outward facing with 

a greater focus on discovering opportunities for U.S. businesses. Do you agree that 

the Department of Commerce including the U.S. Foreign and Commercial Service 

have an important role to play in promoting exports? 

Answer. Yes. One objective of the President is to increase exports by U.S. companies, and the USFCS provides assistance to small and medium size U.S. businesses 

that otherwise would face significant barriers to entry in foreign markets due to 

lack of access to local knowledge and assistance understanding foreign government 

practices and regulations. 

Question 4. The 2006 Softwood Lumber Agreement expired in 2015 and the oneyear extension of the agreement expired October 2016. I was active in urging the 

Obama administration to ensure that any negotiated solution provides a long-term 

solution that adequately addresses Canadian timber policies and subsidies. In July 

President Obama and Prime Minister Trudeau made a commitment to seek an 

agreement that maintains Canadian exports ‘‘at or below an agreed market share.’’ 

That commitment is vital because without an effective agreement to cap Canada’s 

market share, Canadian subsidies will allow Canada to continue to gain a larger 

market share, displacing and harming U.S. manufacturers and mill workers. What 

are your views on the softwood lumber issue and how do you plan to work with the 

USTR to ensure that U.S. manufacturers and mill workers are protected? 

Answer. Because the Canadian softwood lumber industry continues to receive 

stumpage subsidies, the United States should take action to address that unfair 

trade practice. 

Question 5. As a former prosecutor and co-chair of the Next Generation 911 Caucus in the Senate I know how important it is for our public safety community to 

be able to communicate during times of crisis. FirstNet—the new national public 

safety broadband network—will be an important tool for first responders in the 

field. As it is being implemented it is critical that states have a seat at the table 

and a chance to give meaningful input. In Minnesota this consultation process has 

gone well and I hope other states have the same chance to provide feedback. Do you 

agree that FirstNet should continue to work closely with state officials to make the 

new network a success? 

Answer. Yes. If confirmed, I look forward to being briefed on FirstNet and its deployment strategy. As I currently understand it, maximizing state participation is 

important in order to minimize the cost to each participant of using the network. 

Question 6. The Department of Commerce and the Economics and Statistics Administration provide crucial up-to-date information about the social and economic 

needs of communities. Both the 2020 Census and American Community Survey are 

important sources of this information. Still, most people aren’t aware that business 

leaders heavily rely on this data. 

Will you continue to strengthen and promote the use of economic statistics provided by the Department of Commerce and are you committed to ensuring the Census Bureau has the resources it needs to conduct an accurate and efficient census 

in 2020? 

Answer. Yes. I understand the importance of conducting a full, fair and accurate 

Census in 2020, and look forward to working with the Census Bureau to accomplish 

that result. Throughout my business career, I have been a consumer of information 

provided by different bureaus of the Department of Commerce, and view the continVerDate Nov 24 2008 09:55 Jul 10, 2017 Jkt 075679 PO 00000 Frm 00122 Fmt 6601 Sfmt 6621 S:\GPO\DOCS\25974.TXT JACKIE
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ued provision of information to the public by the Department as an important national resource. 

Question 7. Chinese officials have pushed for the United States to designate China 

as a market economy. Treating China as a market economy would allow China to 

bypass antidumping laws by manipulating prices to avoid dumping tariffs. In December President Obama announced the U.S. would not change China’s status as 

a non-market economy. What is your position on granting China market economy 

status? How will you work with U.S. allies like the EU and Canada to support the 

U.S. position on China’s market economy status at the World Trade Organization? 

Answer. I do not believe China is a market economy. As long as the Chinese have 

massive overcapacity they will continue to dump. State-owned enterprises are not 

required to make a profit because state owned banks continue to prop them up. This 

sort of behavior is part of the proof that China is not a market economy. 

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. RICHARD BLUMENTHAL TO

WILBUR L. ROSS, JR. 

Question 1. Cybersecurity is a vital element of our national security and it is essential that there are protections in place to protect our nation, businesses, and critical infrastructure from sabotage and espionage. Last week, the National Institute 

of Standards and Technology (NIST) issued a draft update for its Cybersecurity 

Framework. This updated draft provides new details on managing cyber supply 

chain risks, clarifies key terms, and new measurement methods for cybersecurity. 

One concern often expressed about the Cybersecurity Framework is that its use in 

the industry is voluntary. 

If confirmed, what will you do to increase adoption of the Cybersecurity Framework and ensure that our trade secrets and critical infrastructure are adequately 

protected? 

Answer. Cybersecurity is a huge and immediate problem. Strengthening our cybersecurity is critical to U.S. trade and national security. If confirmed, I will work 

proactively through NIST and with our interagency and industry partners to address the cybersecurity and privacy challenges that our Nation currently faces and 

will regularly review the Department’s efforts to ensure that markets remain open 

to U.S. innovators. 

Question 2. Do you agree with the designation of our election infrastructure as 

critical infrastructure? Will you commit to working with the Secretary of Homeland 

Security to ensure robust protection? 

Answer. If confirmed, I look forward to working with the Department of Homeland Security on a range of issues important to our trade and national security, including robust enforcement of our trade laws and effective responses to 

cybersecurity threats. 

Question 3. The Help America Vote Act and the Military and Overseas Voter Empowerment Act require NIST to work with the Election Assistance Commission to 

research and develop standards to help uphold voting rights—a bedrock of our Constitution. Can you assure me that you will do everything you can to ensure these 

laws are fully implemented? 

Answer. If confirmed, I look forward to being fully briefed on this issue and will 

work with NIST to effectively implement its statutory obligations. 

Question 4. Several reports in the past decade have shown that many of the forensic science practices relied upon in investigations and prosecutions lack foundational 

validity and require significant further research. In hundreds of recent exonerations, 

faulty forensics contributed to the wrongful convictions in almost half of these cases. 

NIST plays a crucial role in forensic science, particularly in conducting scientific research and developing science-based standards to ensure that any forensic science 

used in expert testimony is scientifically valid. It has organized hundreds of criminal justice stakeholders in a comprehensive effort to set standards for their use 

moving forward. 

If confirmed, how would you set the research agenda for forensic science? What 

mechanisms would you use to gather input to inform this agenda? 

Answer. If confirmed, I look forward to being briefed on what NIST has done to 

date to improve forensic science and will carefully evaluate those efforts. 

Question 5. If confirmed, will you continue to work with Members of this Committee and the Judiciary Committee to ensure that law enforcement and criminal 

justice stakeholders—such as judges, attorneys, and fact-finders—have the strongest 

and most accurate forensic tools possible to ensure that crimes are correctly solved, 

public safety is protected, and wrongful convictions are avoided? 

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Answer. I agree that accurate and reliable forensics are an important tool in our 

criminal justice system, and look forward to working with Congress on this important issue. 

Question 6. I believe forensic science disciplines have a lot of promise to be an 

economic generator and jobs creator. America has led the way in standardizing the 

use of DNA in criminal proceedings; the scientific and technological advances upon 

which this work is based have also resulted in significant economic growth. 

If confirmed, will you commit to supporting this work at NIST, including ensuring 

sufficient resources are available to continue this work? 

Answer. NIST is instrumental to many important research and standards setting 

efforts, including this one. If confirmed, I will carefully evaluate NIST’s priorities 

and will do my best to ensure that the available funding is used to maximum effect. 

Question 7. As you may know, NIST and the Department of Justice are party to 

an MOU that establishes a National Commission of Forensic Science, which formulates recommendations on matters such as accreditation requirements for forensic 

science service providers. The Commission’s work has not been completed and I am 

interested in seeing that work continue. 

Will you direct the incoming director of NIST to renew the MOU and continue 

to fully support the Commission until its work is completed? 

Answer. If confirmed, I look forward to being fully briefed on the Memorandum 

of Understanding and the National Commission on Forensic Science. As stated 

above, I agree that accurate and reliable forensics is an important tool in our criminal justice system, and I will do my best to ensure that available funding for NIST 

is used to maximum effect. 

Question 8. Do you agree that establishing scientific underpinnings to forensic 

science is absolutely vital to ensuring the integrity of our criminal justice system? 

If confirmed, how would you work with the Department of Justice and broader 

criminal justice community to ensure that research results are incorporated into 

practice? 

Answer. If confirmed, I will work cooperatively with the Department of Justice 

to maximize NIST’s ability to disseminate its research aimed at improving the Nation’s forensic science capabilities. 

Question 9. The Department of Commerce plays an important role in leading research and setting guidelines on the use of facial recognition technology. For example, NIST has announced it will begin a new evaluation of facial recognition technologies starting in February 2017, to better understand performance accuracy. As 

you may know, a recent study found that some face recognition algorithms have 

been shown to misidentify African-Americans, women, and young people at higher 

rates compared to whites, men, and older individuals, respectively. Such inaccuracies raise the risk that, absent appropriate safeguards, innocent African Americans 

and others may mistakenly be placed on a suspect list or investigated for a crime 

solely because of a flawed algorithm. 

If confirmed, do you commit to ensuring that NIST’s facial recognition evaluation 

includes regular examination of whether facial recognition systems demonstrate racial bias? 

Answer. I support development and implementation of new technologies that are 

mission appropriate, cost effective and produce accurate, reliable results. I have not 

yet been briefed on NIST’s facial recognition programs or the evaluation protocols 

being used. If confirmed I will endeavor to ensure NIST provides Congress and the 

public with the information needed to evaluate the usefulness of any new technology 

for its proposed public purpose. 

Question 10. If confirmed, do you commit to ensuring that NIST’s facial recognition evaluation includes thorough analysis of real-time face recognition systems? 

Answer. If confirmed I will endeavor to ensure NIST provides Congress and the 

public with the information needed to evaluate the usefulness of any new technology 

for its proposed public purpose. 

Question 11. If confirmed, do you commit to make publicly available NIST’s findings on the performance of facial recognition technologies on an ongoing and regular 

basis, and cooperating with law enforcement and other entities so that they are 

aware of any findings? 

Answer. I support public release of accurate scientific data and cooperation with 

law enforcement. 

Question 12. As I understand, when China joined the World Trade Organization, 

it agreed to open its market to foreign electronic payment companies, many of which 

are based in the U.S., no later than December 11, 2006. China failed to do so. In 

2012, a WTO panel ruled that China has discriminated against U.S. card companies 

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and must allow foreign electronic payment companies to process domestic transactions in China. Now, 10 years after China was supposed to open its market, and 

five years after the WTO decision, not a single U.S. company has been allowed to 

process domestic transactions in China. USTR has stated in its 2016 report to Congress on China’s WTO Compliance that ‘‘China has not yet taken needed steps to 

authorize access by foreign suppliers to this market.’’ It is important for American 

companies to compete and operate internationally. 

If confirmed, what will you do to ensure that China’s lives up to its WTO commitments in this area? 

Answer. The basic premise behind the U.S. Government’s support of China’s accession to the WTO was that China would play by the rules. That premise was incorrect. Stronger enforcement is the key to obtaining compliance. 

Question 13. As Secretary of Commerce, you would be in charge of a number of 

Bureaus that are chiefly scientific and research organizations. 

How would you foster a culture of scientific transparency and accountability, and 

protect scientists and engineers from political interference in their work? 

Answer. Science should be done by scientists. I support the release of factual scientific data. 

Question 14. American businesses that hope to reach consumers around the globe 

depend on access to markets. Increasingly, businesses reach consumers online. However, there are threats to these open markets, and the continued growth of and access to the digital economy is not guaranteed. 

To promote American business’ access to consumers, what role should the Department of Commerce play in supporting and strengthening the digital economy by advocating for the free and open internet? 

Answer. Most of our existing trade agreements were negotiated and agreed to before the advent of the Internet. Our future trade agreements need to address the 

importance of the Internet to global commerce and ensure that the core attributes 

of the Internet’s success remain intact. 

Question 15. Do you agree that a free and open Internet is also critical for businesses reaching consumers here in the U.S.? 

Answer. The United States must ensure continued trust in the privacy and security of the Internet, which is necessary to facilitate the continued free flow of information around the world. American businesses in the digital space, both large and 

small, depend on an online digital ecosystem that has the confidence of potential 

users and customers. That is why, if confirmed, I will ensure the Department of 

Commerce is at the table in all policy discussions related to practices that may affect digital data flows. 

Question 16. As you noted in your testimony, you have unique experience working 

to implement the Census early in your career. The responsibility for carrying out 

the Census falls under the Department of Commerce. This process is as old as the 

republic and is mandated under Article I, Section 2 of the Constitution. The data 

that results from conducting the Census has immense implications and is used to 

calculate the number of seats that each state has in the House of Representatives 

and helps to allocate critical funding for new roads, hospitals, schools, emergency 

services, and many other essential services in all of our communities. 

Given the Census’ nationwide implications, having an accurate count of the U.S. 

population is paramount. Do you agree? How will you ensure that the Census remains free of political influence? 

Answer. If confirmed, I look forward to working with the Census Bureau and all 

stakeholders to ensure a full, fair and accurate count in Census 2020. 

Question 17. In your testimony, you state that expanding exports will be one of 

the top challenges facing the Department of Commerce. Connecticut has many aerospace manufacturers, and one entity we strongly support is the Export-Import Bank. 

Although the Export-Import Bank is often portrayed as helping only large corporations, we have many small businesses in Connecticut that are crucial parts of the 

supply chain for these larger companies and their products—manufacturing the 

components of the planes, helicopters, and satellites that companies like General 

Electric and UTC sell overseas. 

The bank falls outside the Department—which has many trade-related responsibilities—but still the bank is critical to my state in advancing a goal we both agree 

should be a priority: increasing the export of American products. The President-elect 

has said in regards to the Export-Import Bank ‘‘when you think about free enterprise, it’s really not free enterprise. I’d be against it.’’ But the Vice President-elect 

has voted to reauthorize the bank in the past. In your initial answers to this committee, you said ‘‘you support the concept.’’ 

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Would you agree that the Export-Import Bank provides an important source of 

support for many small manufacturers? 

Answer. I agree that some form of financing is needed to provide a level playing 

field for American companies to export their products overseas. This is particularly 

the case for small and medium size companies who lack the resources and expertise 

available to larger companies. Whatever mechanism Congress chooses to use, it 

needs to make decisions and award financing in order to be effective in support of 

American companies seeking to export overseas. 

Question 18. Will the incoming administration work to ensure that the ExportImport Bank has the resources it needs to continue its support for small manufacturers? 

Answer. I favor every tool that can increase effectively the present trivial percentage of businesses that export anything. 

Question 19. How will you ensure that the Administration’s trade policies protect 

not just large exporters but smaller manufacturers as well? 

Answer. Over the course of my career I have worked with both large and small 

manufacturers, and am very familiar with the problems small manufacturers face. 

Small businesses account for a significant amount of innovation and job creation, 

so it is important to the President’s objectives that our trade policies establish an 

environment in which both large and small enterprises flourish. 

Question 20. In section C(3) of the Committee’s questionnaire, you were asked the 

following: ‘‘Have you or any business or nonprofit of which you are or were an officer 

ever been involved as a party in an administrative agency proceeding, criminal proceeding, or civil litigation? If so, please explain.’’ Your response listed eight proceedings and noted ‘‘I have been associated with a number of corporations and other 

entities and, from time to time, such entities (including, in some instance, their directors, officers and employees) in the ordinary course, have been involved in judicial or regulatory proceedings relating to their businesses.’’ 

Please list and describe these judicial and regulatory proceedings, including any 

resolution. 

Answer. 

• Moncavage v. Faris et al., No. 9:14–cv–81378 (S.D. Fla.): 

This complaint was never served and was voluntarily dismissed without prejudice 6 days after it was filed. 

• In re: International Textile Group Merger Litigation, C.A. No. 2009–CP– 

23–3346 (Related Action: Menezes v. WL Ross & Co., 403 S.C. 522, 744 S.E.2d 

178(2013)): 

I was named as an individual defendant. The case settled. 

• Saratoga Advantage Trust v. ICG, Inc. et al., No. 2:08–cv–00011 (S.D. 

W.Va.): 

I was named as individual defendant. The case settled. 

• City of Ann Arbor Employees’ Retirement System v. ICG, Inc., 2008 WL 

4509356 (S.D. W.Va.): 

I was named as individual defendant. The case was dismissed. 

• Giles v. ICG, Inc. et al., No. 3:11–cv–00330 (S.D. W.Va.): 

I was named among various individual defendants. The case settled. This case 

was related to Kramer v. Ross, et al., Court of Chancery of Delaware 6470–VC, 

which is listed in Attachment Six of the questionnaire response. Another related 

action was Isakov v. International Coal Group, Inc., et al., Court of Chancery 

of Delaware 6505–VCP. 

• In re Mego Financial Corp. Securities Litig., 213 F.3d 454 (9th Cir. 2000): 

As I had been an outside director of Mego (the target defendant), I was named 

as an individual defendant. The case settled. 

• Weiss v. Sunasco Incorporated, 295 F. Supp. 824 (S.D.N.Y. 1969): 

As I was an outside director of Sunasco (the target defendant), I was originally 

named as an individual defendant. I was later dropped from the complaint. 

• In the Matter of WL Ross & Co. LLC (August 24, 2016): 

This was an SEC administrative proceeding. I was not individually named. 

• Parker v. AHMSI Insurance Agency Inc. d/b/a Belt Line Insurance Agency, No. 1:15–cv–23840 (S.D. Fla.): 

This case is currently pending in SD Fla., with several funds named as defendants: WL Ross & Co., LLC, WLR AHM Co-Invest, L.P., WLR IV Parallel ESC, 

L.P., WLR Recovery Fund III, L.P., WLR/GS Master Co-Investment, L.P., WLR 

Recovery Fund II, L.P. I am not individually named. 

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» Related Action: Nungester, et al., v. AHMSI Insurance Agency Inc. d/b/a Belt 

Line Insurance Agency, No. 14–cv–7338 (S.D.N.Y.): 

This case was dismissed before any fund defendants entered an appearance. 

I was not individually named. 

• DIGJAM Limited v. WL Ross & Co. LLC, 09–cv–01607 (S.D.N.Y.): 

This case was dismissed. I was not individually named as a defendant. 

• Perez v. WL Ross & Co. LLC, No. 08–cv–00243 (N.D. Ill.).: 

This case was dismissed after initial status conference on Plaintiff’s own motion. WL Ross & Co. LLC was named as a defendant, but I was not individually 

named. 

• Levchenko et al v. MERS et al, 1:10–cv–01804–NGG–LB (E.D.N.Y.): 

WL Ross & Co. was named as a defendant, but I was not individually named. 

WL Ross & Co was never a party because the case was dismissed for failure 

to complete service. 

• Weinstein v. American Residential Funding, Inc. et al., 2:10–cv–00487– 

PMP–PAL (D. Nev.): 

WL Ross & Co. was named as a defendant in this case, but I was not individually named. The case was dismissed with prejudice. 

• Mullin v. WL Ross & Co. LLC, 1:16–cv–10060–RJS (Dec. 30, 2016 S.D.N.Y.): 

WL Ross & Co. is named as a defendant in this pending case. The complaint 

alleges breach of contract and fiduciary duty claims. An initial conference has 

been set for February 24. 

• Sokolowski et al v. Erbey, 9:14–cv–81601–LSS (S.D. Fla.): 

Plaintiffs’ motion to approve settlement in this securities case is pending, and 

a hearing on the motion was held on January 18. WL Ross & Co. is named as 

a defendant. I was also individually named. 

• Hutt v. Erbey et al., 9:15–cv–80392–RLR (S.D. Fla): 

I was named as a defendant in this shareholder derivative suit against Ocwen 

Financial. The case was voluntarily dismissed by the plaintiff. It had previously 

been filed in the Northern District of Georgia (1:15-cv-00891–WSD) and transferred. 

• Spreitzer et al v. Michitsch, 2:11–mc–00008–WFD (D. Wyo.): 

This pro se case named myself and WL Ross & Co. as defendants. It was dismissed shortly after it was filed for failure to show cause. 

• Bowen v. Farris, 1:16–cv–00799–TCB (N.D. Ga.): 

This case filed by a pro se plaintiff against Ocwen Financial named me as a 

defendant. It was voluntarily dismissed by the plaintiff. 

• Sparks, et al v. Ross, et al, 1:02–cv–00045–IMK (N.D. W.Va.): 

This ERISA case focused on Anker Coal Group, Anker Group, Inc., SIMBA 

Group, Inc., and Anker Energy Corporation. I was named as a defendant individually because of my involvement with these companies. The case settled. 

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. BRIAN SCHATZ TO

WILBUR L. ROSS, JR. 

Question 1. If confirmed, you will likely play a leading role in formulating U.S. 

trade policy. During your tenure, we may revisit existing trade agreements and 

rethink the U.S. model agreement. 

A top priority should be reexamining our negotiating objectives in the Trans Pacific Partnership (TPP). When TPP was being negotiated, I was told that it would 

be the gold standard for environmental, health and safety, and labor standards. But 

when I read the final agreement closely, I was extremely disappointed. The commitments in TPP were basically just strongly worded suggestions with very few requirements. 

I was encouraged to hear that you have called for more ‘‘stringent environmental 

and health and safety standards’’ in trade agreements. 

What is your view of TPP’s environmental, public health, and labor commitments? 

What should these commitments in U.S. trade agreements look like going forward? 

Answer. As you will recall from our meeting, I believe the long-term objective 

should be to bring other countries up to our labor, environmental and health standards. The absence of reciprocal standards creates a competitive advantage for the 

country with the lower standards. In the future trade agreements should include reciprocal commitments in this regard and the necessary mechanisms to see that any 

commitments are enforced. 

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Question 2. Another area I believe we need to revisit in our trade agreements is 

the inclusion of investor state dispute settlement (ISDS). 

ISDS provides a special forum outside of our well-established court system that 

is just for foreign investors. It is not open to domestic businesses, labor unions, civil 

society groups, or individuals that allege a violation of a trade agreement obligation. 

Foreign investors are given the right to sue governments over laws and regulations that impact their businesses. While the investors are only entitled to monetary 

damages, we have seen how ISDS can be used to extract changes in policy. In effect, 

ISDS gives foreign investors final say over laws and regulations meant to improve 

and protect the lives of Americans. 

What are your views on the inclusion of investor state dispute settlement in trade 

agreements? 

Answer. As you will recall from our meeting, I believe the long-term objective 

should be to bring other countries up toward our labor, environmental and health 

standards. To do that we need to review carefully any dispute resolution mechanisms in future trade agreements to ensure that they do not create an opportunity 

for countries to use non-tariff trade barriers and dispute settlements to create a 

competitive advantage for their products. 

Question 3. When we talk about increasing America’s exports, we should also aim 

to increase travel, which is our Nation’s number one service export. In 2015, 77.5 

million international travelers visited the U.S., spending $246.2 billion across the 

country. 

In Hawaii, travel and tourism is a major driver of our economy. These industries 

make up 20 percent of our economy and provide the state’s second largest source 

of jobs. 

Because of the economic importance of travel, the Commerce Department developed a National Travel and Tourism Strategy in 2012. A primary goal of the strategy is to attract 100 million international visitors to the United States by 2021. Unfortunately, we are 22.5 million short of meeting this goal. 

What would you do to help the U.S. meet our visitor goal and, more generally, 

to increase international visitation to the U.S.? 

Answer. If confirmed, I look forward to being fully briefed on the Department’s 

efforts in this regard, and will work with you and other interested Members of Congress on this important issue. While there may be many ways we can advance the 

goal of promoting tourism, certainly efforts to increase the foreign exchange rate 

will assist in both increasing demand for U.S. exports and making the United States 

a more attractive travel destination, both of which help create more jobs in the 

United States. 

Question 4. At your hearing, I highlighted the important role of the Department 

of Commerce in convening other agencies for the purpose of developing U.S. tourism 

policy. Without the Department’s leadership, it would be difficult to continue the 

productive cross-agency collaboration we saw during your predecessor’s tenure. The 

Department has accomplished this through its active role on the interagency Tourism Policy Council and its National Travel and Tourism Office. 

In your response to my question about continuing the Department’s role as convener, you mentioned your willingness to work with Elaine Chao should she be confirmed as secretary of the Department of Transportation. I wanted to follow up on 

your answer to ask about your commitment more broadly to interagency collaboration on tourism policy. 

Would you commit to continuing the Department’s leadership in convening the 

relevant agencies to advance the U.S.’s travel and tourism policy? 

Answer. Advancing travel and tourism to the United States helps promote jobs 

and foreign investment in the United States. If confirmed, I look forward to being 

fully briefed on the Department’s efforts in this regard, and will work with you and 

other interested Members of Congress on this important issue. 

Question 5. Cross-border data flows between the U.S. and Europe are the highest 

in the world. This movement of data is critical to students, families, businesses and 

promotes employment, free speech, innovation, and cultural expression. 

In 2015, the European Court of Justice invalidated a core agreement that governed the transfer of data between the EU and U.S. Fortunately, the Department 

of Commerce and their European counterparts successfully negotiated the EU-U.S. 

Privacy Shield Framework to provide companies on both sides of the Atlantic with 

a mechanism to comply with EU data protection requirements. The framework supports transatlantic commerce, while safeguarding individual’s privacy. The Privacy 

Shield has seen great success so far. Nearly 1,400 U.S. organizations—big and 

small—have certified their compliance with the framework. 

125 

The framework is up for its annual review later this year and is currently being 

challenged in the EU courts. 

How will you ensure the Department of Commerce conducts an effective first review of the program in 2017 with European counterparts so the program can continue to operate smoothly for the benefit of all Americans? 

Answer. If confirmed, as Secretary of Commerce I will be responsible for promoting the foreign and domestic commerce of the United States. I will do my best 

to do so in all areas, including with respect to digital trade and data privacy. I will 

work with the appropriate agencies of government to ensure an effective review in 

accordance with our commitments under the Privacy Shield Framework. Should the 

European courts find any essential part of the Privacy Shield is contrary to law, the 

Department will once again lead efforts to find a solution. 

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. EDWARD MARKEY TO

WILBUR L. ROSS, JR. 

Question 1. Many important technologies and applications rely on unlicensed spectrum, which is typically used for Wi-Fi connectivity. How will you ensure that the 

Federal Government makes spectrum available for unlicensed uses? 

Answer. Unlicensed use of spectrum has been an engine of innovation and economic activity. This will continue as devices and applications for the Internet of 

Things proliferate. If confirmed, I will ensure NTIA continues to make spectrum 

available in a manner that advances innovation and economic prosperity as well as 

meeting the long term needs of the United States. 

Question 2. In order to meet our Nation’s spectrum needs, we should share and 

more efficiently use spectrum. If confirmed, how will you promote research and deployment of technologies to share and more efficiently use spectrum? 

Answer. I support the efficient use of spectrum and look forward, if confirmed, to 

working with NIST and NTIA to enhance the Department’s efforts in this regard. 

Question 3. Please list any deductible or nondeductible charitable donations you 

made in the last three years, including, for each contribution, the name of the recipient and the amount. 

Answer. 

1/02/2016 #4008 $2,000.00 Brigham and Women’s Hosp. 

1/04/2016 #4009 $1,000.00 Glades Academy Fdn., Inc. 

1/10/2016 #4010 $10,000.00 Autism Speaks 

1/11/2016 #4012 $1,000.00 Boys’ Club of New York 

1/18/2016 #4014 $500.00 Fountain House 

1/22/2016 $1,000.00 Palm Beach Zoo 

1/23/2016 #4282 $5,000.00 Glades Academy Fdn., Inc. 

2/06/2016 #4291 $20,000.00 Blenheim Foundation 

2/08/2016 #4295 $2,000.00 Museum of the City of New York 

2/08/2016 #4296 $750.00 Southampton Fresh Air Home 

2/19/2016 #3818 $2,500.00 Society of the Four Arts 

2/22/2016 #4309 $1,000.00 Open Future Institute 

2/26/2016 $250.00 Fountain House 

2/27/2016 #4310 $2,500.00 Prince of Wales Fdn. 

2/27/2016 #4025 $4,000.00 Mem. Sloan Kettering Cancer Center 

2/29/2016 #4026 $550.00 Central Park Conservancy 

2/29/2016 #4027 $2,000.00 Lenox Hill Neighborhood House 

3/20/2016 #4322 $2,500.00 SCO Family Dynamics 

3/20/2016 #4323 $500.00 American Friends of the Louve 

4/01/2016 #4223 $12,993.74 Duke Of Edinburgh Fdn. 

4/04/2016 #4236 10,000.00 Duke of Edinburgh Fdn. 

4/25/2016 #4246 $400.00 Kips Bay Boys and Girls Club 

4/30/2016 #4249 $1,000.00 Carnegie Hall Society 

4/30/2016 #4251 $2,500.00 PEN America 

4/30/2016 #4252 $500.00 Madison Square Boys & Girls Club 

4/30/2016 #4253 $2,000.00 Checkerboard Foundation,Inc. 

5/15/2016 $3,050.00 Cancer Research Institute 

5/15/2016 $15,000.00 Cancer Research Institute 

6/05/2016 #4340 $2,000.00 Mem. Sloan Kettering Cancer Center 

6/5/2016 #4341 $900.00 Southampton Fresh Air Home 

7/28/2016 $1,000.00 CureFA Fdn. 

8/19/2016 #4379 $5,000.00 Palm Beach Civic Association 

8/19/2016 #4380 $500.00 St. Andrew’s Dune Church 

8/19/2016 #4381 $1,000.00 UCLA Medical Center Dept. of Neurosurgery 

8/19/2016 #4382 $1,000.00 Hearst Castle Preservation Fdn.. 

8/19/2016 #4383 $5,000.00 Palm Beach Zoo 

9/01/2016 #4414 $1,000.00 Hope for Depression Research Fdn. 

9/12/2016 #4433 $25,000.00 Palm Beach Preservation Fdn. 

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9/23/2016 $10,000.00 Federation of Cypriot American Org 

10/03/2016 #4491 $1,000.00 Animal Medical Center 

10/10/2016 $5,000.00 God’s Love We Deliver 

10/14/2016 #4505 $1,000.00 Groton School 

10/03/2016 #4492 $1,000.00 Palm Beach Zoo 

10/03/2016 #4493 $2,500.00 NYSPCC 

11/04/2016 $500.00 Peggy Adams’ Animal Rescue League 

11/27/2016 #4466 $75.00 Southampton Village Volunteer Ambulance 

11/28/2016 $5,000.00 Brigham and Women’s Hospital 

12/19/2016 $12,000.00 Metropolitan Museum of Art 

Question 4. During Mr. Trump’s campaign, there were reports that even volunteers were required to sign non-disclosure agreements. After his election, Presidentelect Trump’s team demanded lists of career officials who worked on climate science 

issues at the Energy Department and women’s and gender issues at the State Department. Any suggestion that the incoming administration is targeting career officials for retaliation simply because they worked on policies that the new President 

disagrees with threatens to create a chilling effect on employees who are simply trying to do their jobs. It is against the law to retaliate against career officials for following lawful policy directives. It is also against the law to interfere with career employees communicating with Congress. I have included a summary of these laws 

below: 

5 U.S.C. § 7211, provides that: The right of employees, individually or collectively, to petition Congress or a Member of Congress. or to furnish information 

to either House of Congress, or to a committee or Member thereof, may not be 

interfered with or denied. Pursuant to 5 U.S.C. § 2302(b)(8), it is a violation of 

Federal law to retaliate against whistleblowers. That law states: Any employee 

who has authority to take, direct others to take, recommend, or approve any 

personnel action, shall not, with respect to such authority . . . take or fail to 

take, or threaten to take or fail to take, a personnel action with respect to any 

employee or applicant for employment because of. . . . (A) any disclosure of information by an employee or applicant which the employee or applicant reasonably believes evidences—(i) a violation of any law, rule, or regulation, or (ii) 

gross mismanagement, a gross waste of funds, an abuse of authority, or a substantial and specific danger to public health or safety, any disclosure to the Special Counsel, or to the Inspector General of an agency or another employee designated by the head of the agency to receive such disclosures, of information 

which the employee or applicant reasonably believes evidences a violation of 

any law, rule, or regulation . . .’’ In addition, pursuant to 18 U.S.C. § 1505, it 

is against Federal law to interfere with a Congressional inquiry: Whoever corruptly, or by threats or force, or by any threatening letter or communication influences, obstructs, or impedes or endeavors to influence, obstruct, or impede 

the due and proper administration of the law under which any pending proceeding is being had before any department or agency of the United States, or 

the due and proper exercise of the power of inquiry under which any inquiry 

or investigation is being had by either House, or any committee of either House 

or any joint committee of the Congress. 

If you are confirmed, will you commit to protect the rights of all career employees 

of the Commerce Department, including their right to speak with Congress? Will 

you commit to communicate employees’ whistleblower rights via e-mail to all Commerce Department employees within a week of being sworn in? 

Answer. I will adhere to the law and contracts. If confirmed, I will also make sure 

that the employees of the Department know of their rights and protections under 

the Whistleblower law. 

Question 5. The President-elect appears to be planning to ignore the advice he 

was given by bipartisan ethics experts to divest himself from his business interests. 

Do you commit to ensure that no employee of the Commerce Department is pressured to take—or not take—any regulatory or enforcement action because that decision would adversely impact business interests associated with the President-elect 

or his family? If not, why not? If yes, how will you know exactly what all of the 

Trump family interests are in the absence of the release of his tax returns? 

Answer. If confirmed, I will work to ensure that I and all employees of the Department act with integrity and comply with all applicable laws. 

Question 6. As our environmental intelligence agency, do you believe that the National Oceanic and Atmospheric Administration (NOAA) should look at both shortterm and long-term changes in our environment? What do you see as NOAA and 

the National Weather Service’s role in working with communities prior to a weather 

event? 

127 

Answer. Early and accurate weather forecasts and warnings, and hopefully increased coordination with emergency services as FirstNet is brought on line. 

Question 7. Given the importance of data collection to NOAA’s mission, will you 

continue to support NOAA efforts to increase and enhance observations of the atmosphere and ocean, including physical, chemical, and biological parameters? Specifically, how will you continue increase and enhance the atmosphere and ocean observing systems? 

Answer. I will support NOAA’s capital expenditure requests. 

Question 8. Will you continue to use NOAA’s existing scientific integrity policy? 

Answer. The integrity of scientific examination and reporting on data is essential. 

Question 9. Education is a key component to ensuring we have a solid future generation of Earth scientists. NOAA’s education programs provide lesson plans for 

teachers and support professional development opportunity. They also provide opportunities to students including the Ernest F. Hollings Undergraduate Scholarship 

Program and the Sea Grant John A. Knauss Fellowship. What are your educational 

priorities for NOAA, and how do you see education for students and teachers in 

NOAA’s mission and critical functions? 

Answer. I believe that NOAA’s educational initiatives are generally strong but, if 

confirmed, will encourage staff to develop even more outreach. 

Question 10. What are your priorities for the National Oceanic and Atmospheric 

Administration (NOAA) Fisheries and specific plans for maintaining continued success? 

Will you work with Congress to ensure that the Department of Commerce continues to allocate the appropriate personnel and resources to manage U.S. fisheries 

to the best extent possible? 

What is your approach for using science to achieve healthy stock levels, support 

a robust fishing industry and inform fisheries management decisions? 

Improving the data management system, including enhancing uniformity, standardization, and protocols will allow for a more responsive fisheries management 

process. What specific plans do you have to improve the collection and data management systems, given the current resources of NOAA Fisheries? 

Answer. I share the Committee’s commitment to sustainable fisheries as embodied 

in the Magnuson-Stevens Act. Good science on fish stocks and oceanic conditions is 

essential to meet the MSA’s sustainable fishery goals. Collecting accurate information regarding directed fishing and bycatch is a critical component of effective fishery management. I am aware that stationing observers on smaller fishing vessels 

can be challenging. If confirmed I would support continuing to work with industry 

to find cost effective, accurate and timely methods for catch and bycatch reporting 

in order to improve fishery management. 

Question 11. As Secretary of Commerce, what actions would you support to ensure 

that seafood brought to the market is legally caught and sustainable? 

Answer. I strongly oppose illegal importation of anything. Ensuring that seafood 

brought to the U.S. market is legally caught and sustainable is very important. I 

understand that NOAA is working on several initiatives on this front. I look forward 

to working with you and the Committee to address these important issues. 

Question 12. The Northeast published the first regional ocean plan, providing a 

framework for all the activities that occur within our ocean waters. This groundup approach set out to better the cooperation from users and local governments to 

the state and Federal Government. Will you continue to support these regional 

plans? 

Answer. I look forward to reviewing the plans and intend to continue NOAA’s participation in these collaborative efforts. 

Question 13. The National Weather Service is in negotiations with their employees’ union for the first time in 15 years. Will you commit to allowing the process 

to continue as agreed upon already? 

Answer. If confirmed, I will promptly undertake to understand the status of the 

labor negotiations. 

Question 14. The National Ocean Service helps promote the swift and safe movement of vessels by providing important charting and mapping services. How will you 

ensure that our Nation’s navigation charts and hydrography data are up to date and 

accessible? 

Answer. I agree that mapping and charting is an important function of NOAA, 

and, if confirmed, I look forward to working with the Congress to address this important issue. 

Question 15. The Commerce Committee questionnaire asked if ‘‘you or any business or nonprofit of which you are or were an officer [have] ever been involved as 

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a party in an administrative agency proceeding, criminal proceeding, or civil litigation.’’ While you have identified eight lawsuits in which you were a party, you noted 

in your response that you could ‘‘also have been associated with a number of corporations and other entities and, from time to time, such entities (including, in some 

instances, their directors, officers and employees) have been involved, in the ordinary course, in judicial or regulatory proceedings relating to their businesses.’’ Will 

you commit to recuse yourself without waiver and for the entirety of your tenure 

at the Department of Commerce from participating in any issue relating to a case 

in which you (or your company, or an organization with which you were affiliated) 

were a named party? If no, why not? 

Answer. In the event that a matter involving an asset I still hold or a legal proceeding I was or am involved in should arise, I assure you that I will recuse myself 

in accordance with the commitments that I made in my ethics agreement. Further, 

I will at all times rely on the monitoring and judgment of the Department’s ethics 

officials to ensure that I do not participate in any matter about which they advise 

me that a conflict of interest would arise. 

Question 16. Were you or any business or nonprofit of which you are or were an 

officer involved as a party in any of the following cases? If yes, please a) explain 

why each such case was not included in the response to your questionnaire, and b) 

respond to the question of whether you will commit to recuse yourself without waiver and for the entirety of your tenure at the Department of Commerce from participating in any issue relating to each such case, and if no, why not? 

Answer. 

• Moncavage v. Faris et al., No. 9:14–cv–81378 (S.D. Fla.): 

This complaint was never served and was voluntarily dismissed without prejudice 6 days after it was filed. I was named as a defendant, but was not a party 

because service was never completed. 

• In re: International Textile Group Merger Litigation, C.A. No. 2009–CP– 

23–3346 (Related Action: Menezes v. WL Ross & Co., 403 S.C. 522, 744 S.E.2d 

178(2013)): 

I was named as an individual defendant. The case settled. 

• Saratoga Advantage Trust v. ICG, Inc. et al., No. 2:08–cv–00011 (S.D. 

W.Va.): 

I was named as an individual defendant. The case settled. 

• City of Ann Arbor Employees’ Retirement System v. ICG, Inc., 2008 WL 

4509356 (S.D. W.Va.): 

I was named as an individual defendant. The case was dismissed. 

• Giles v. ICG, Inc. et al., No. 3:11–cv–00330 (S.D. W.Va.): 

I was named among various individual defendants. The case settled. This case 

was related to Kramer v. Ross, et al., Court of Chancery of Delaware 6470–VC, 

which is listed in Attachment Six of the questionnaire response. Another related 

action was Isakov v. International Coal Group, Inc., et al., Court of Chancery 

of Delaware 6505–VCP. 

• In re Mego Financial Corp. Securities Litig., 213 F.3d 454 (9th Cir. 2000): 

As I had been an outside director of Mego (the target defendant), I was named 

as an individual defendant. The case settled. 

• Weiss v. Sunasco Incorporated, 295 F. Supp. 824 (S.D.N.Y. 1969): 

As I was an outside director of Sunasco (the target defendant), I was originally 

named as an individual defendant. I was later dropped from the complaint. 

• In the Matter of WL Ross & Co. LLC (August 24, 2016): 

This was an SEC administrative proceeding. I was not individually named. 

• Parker v. AHMSI Insurance Agency Inc. d/b/a Belt Line Insurance Agency, No. 1:15–cv–23840 (S.D. Fla.): 

This case is currently pending in S.D. Fla., with several funds named as defendants: WL Ross & Co., LLC, WLR AHM Co-Invest, L.P., WLR IV Parallel ESC, 

L.P., WLR Recovery Fund III, L.P., WLR/GS Master Co-Investment, L.P., WLR 

Recovery Fund II, L.P. I am not individually named. 

• Related Action: Nungester, et al., v. AHMSI Insurance Agency Inc. d/b/a Belt 

Line Insurance Agency, No. 14–cv–7338 (S.D.N.Y.): 

This case was dismissed before any fund defendants entered an appearance. 

I was not individually named. 

• DIGJAM Limited v. WL Ross & Co. LLC, 09–cv–01607 (S.D.N.Y.): 

This case was dismissed on July 7, 2009. I was not individually named as a defendant. 

• Perez v. WL Ross & Co. LLC, No. 08–cv–00243 (N.D. Ill.).: 

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This case was dismissed after initial status conference on Plaintiff’s own motion. WL Ross & Co. LLC was named as a defendant, but I was not individually 

named. 

Question 17. Will you support and advance on a timely basis the replacement of 

NOAA Fisheries’ fleet of aging and outdated scientific research vessels to support 

the science necessary for effective management of the Nation’s fisheries, especially 

given the changing ocean and climate systems? 

Answer. I support NOAA’s fleet renovation program. 

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. CORY BOOKER TO

WILBUR L. ROSS, JR. 

Question 1. Last year, the Department of Commerce sought comment on issues 

relating to the Internet of Things as part of the agency’s Digital Economy Agenda 

to help inform decisions to foster growth of the Internet of Things. I’ve worked with 

a bipartisan group of colleagues on legislation that would create an Internet of 

Things working group led by the Secretary of Commerce to further expand this technology and enable government to keep pace with innovation. Do you plan to continue the Department of Commerce’s support for innovative new technologies including the Internet of Things? 

Answer. Yes. The NTIA and NIST both play direct roles in supporting innovative 

new technologies, including those that support the Internet of Things. If confirmed, 

I will work with NTIA to promote the availability of spectrum for broadband applications and new innovation, including the Internet of Things, while ensuring that 

the long-term needs of the United States continue to be met. 

Question 2. Previous administrations have recognized the broad benefits the digital economy brings to the overall U.S. economy. The Internet sector alone makes 

up 6 percent of U.S. GDP and is responsible for more than 3 million American jobs. 

Additionally, 75 percent of the value created by the Internet is captured by companies in traditional American industries who embrace the Internet to connect with 

new customers and suppliers. 

Past Administrations have made a point of having senior level technology advisors 

to help ensure our policies take these vast economic benefits into account. 

Will you prioritize the digital economy as secretary and will you appoint a senior 

digital economy official to advise you on these economically critical issues? 

Answer. I agree that it is important to be fully briefed on new technologies and 

the digital economy. To that end I will develop a structure to ensure that I receive 

the soundest advice possible. 

Question 3. The Department of Commerce is responsible for the release of vital 

data, whether through the National Institute of Standards and Technology (NIST) 

or at the Economics and Statistics Administration that releases GDP data and runs 

the Census. Are you committed to keeping with consistent release of information 

and data to the general public? 

Answer. I favor the prompt distribution of the maximum depth and breadth of 

high quality, reliable data that is feasible. 

Question 4. The National Oceanic and Atmospheric Administration (NOAA) makes 

up 60 percent of the Department of Commerce budget. Our nation’s ocean economy 

contributes almost twice as much as the entire farm economy to the Nation’s GDP 

and employs more people. How important do you think NOAA is to the Commerce 

Department’s mission, and what do you think its most critical functions are? 

Answer. NOAA is hugely important. Improving the accuracy and timeliness of 

weather information will protect lives and property. NOAA’s fishery activities are 

equally important, and it plays a vital role in providing accurate maps for safe navigation. Finally, I favor pure scientific research of all forms. As a resident of Southern Florida, I am very aware of the importance of these functions. 

Question 5. Will you commit to allowing NOAA to publish vital weather and atmospheric data so that the public can continue to be informed about the state of 

our environment? 

Answer. I am not aware of any artificial constraints on NOAA’s publication of 

data and have no present intention of changing that situation. 

Question 6. The Exclusive Economic Zone (EEZ) of the United States encompasses 

an ocean area larger than that of any other country and one and a half times the 

size of the continental U.S. What do you see as NOAA’s role in understanding and 

managing this area? 

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Answer. NOAA has a clear role in the management and scientific exploration of 

the EEZ—from fisheries management, to reviewing activities for the exploration and 

extraction of resources, to mapping and nautical charting for safe and efficient navigation. If confirmed, I am looking forward to working with you on these matters. 

Question 7. Do you support the ability of coastal states to determine the consistency of Federal actions, including the leasing of Federal offshore lands for oil and 

gas exploration and drilling, with the states’ federally approved coastal zone management programs, as required by the Federal Coastal Zone Management Act? 

Answer. If confirmed I intend to comply with the Coastal Zone Management Act. 

Question 8. Do you believe that government scientists should ever be restricted 

in when and how they communicate their research findings? 

Answer. Scientists should be free to communicate data clearly and concisely. 

Question 9. Is there ever a point in which a political appointee should ask a scientist to change or modify their research results? 

Answer. Scientists should be free to communicate data clearly and concisely. 

Question 10. NOAA’s current scientific integrity policy articulates, among other 

things, that agency scientists should avoid conflicts of interest and conduct science 

free from political interference. Do you agree with these principles? 

Answer. Science is science and should not encompass bias. If confirmed, I look forward to a full briefing on NOAA’s scientific integrity policy. 

Question 11. Commercial fishermen in the United States are currently struggling 

with the impacts of climate change. For example, two thirds of the commercial fish 

species in New England have moved northward due to warming waters. NOAA recently developed regional research plans to help better manage our commercial fisheries in the face of climate change. Will you support this research agenda? 

Answer. As I mentioned in the hearing, I have enjoyed talking with the Members 

of the Committee about the fishing interests in the different states. I understand 

that this is an important industry and that this is an important issue. If confirmed, 

I look forward to working with Congress on these issues. 

Question 12. NOAA oversees a large proportion of climate research. Will you 

maintain current budgets for that important area of science? 

Answer. I have not been briefed on the details of NOAA’s budget and naturally 

have not reviewed NOAA management’s recommendations. Supporting accurate and 

timely weather forecasts to safeguard life and property and facilitate commerce and 

tourism will be a priority. 

Question 13. Over the past three years, states from Maine to Virginia have 

worked in coordination with multiple Federal agencies, regional fisheries managers, 

and tribes—and with extensive industry and public involvement—to develop two regionally specific ocean plans that will help ensure the waters off our shores remain 

healthy and continue to serve as an economic engine for the long haul. The plans 

set out best practices for coordination between state and Federal agencies on a host 

of burgeoning issues from sand mining to aquaculture so that agencies will work 

together more efficiently to advance smart, responsible development. A great deal 

of effort has been invested in these plans and the states like mine expect to see Federal agencies keep their commitments. Will you support NOAA’s continued engagement in these regionally-led efforts? 

Answer. I look forward to reviewing the plans and intend to continue NOAA’s participation in these collaborative efforts. 

Question 14. This Committee, under the leadership of Senator Stevens and others, 

led the reauthorization of the Magnuson Stevens Fishery Conservation and Management Act in 1996 and again in 2006. As a result, the law now includes important 

requirements for sustainable management of our Nation’s fisheries, including (1) an 

end to overfishing, (2) the setting of science-based annual catch limits that ensure 

that overfishing does not occur; and (3) the rebuilding of depleted fish populations 

to healthy levels. These requirements have led to a restoration to healthy levels of 

a large number of U.S. fisheries, a steady rise in the value of our Nation’s seafood 

harvest, and made the U.S. a leader in sustainable fisheries. We are looked at as 

a model by other countries. Will you commit to helping us preserve, and not weaken, these current requirements in the law? 

Answer. In principle, yes. I have been very interested in hearing about the many 

diverse and important fishing interests around the country. It is clear that this is 

a very important industry and that this is an important issue to the Committee and 

the Nation’s economy. If confirmed, I look forward to working with the Congress on 

these issues. 

Question 15. An estimated $1 billion of illegally caught seafood is imported into 

the U.S. annually, which undercuts law-abiding U.S. fishermen who are fishing fairVerDate Nov 24 2008 09:55 Jul 10, 2017 Jkt 075679 PO 00000 Frm 00134 Fmt 6601 Sfmt 6621 S:\GPO\DOCS\25974.TXT JACKIE
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ly. Illegal seafood imports also undermine the sustainability of the world’s fisheries 

by flooding the market with fish that have not had to meet the same protective environmental standards as U.S.-caught fish. In 2014, the U.S. convened a cross-government effort on Combating Illegal, Unreported and Unregulated (IUU) Fishing 

and Seafood Fraud to address the economic and environmental problems associated 

with IUU fishing. Since then the Task Force has been working across agencies to 

address IUU fishing through international and domestic actions, including implementation of the recently adopted Traceability rule. What will you do to address the 

international IUU fishing crisis, protect the health of global fisheries, and protect 

the interests of the U.S. fishing industry? 

Answer. I strongly oppose illegal importation of anything. Ensuring that seafood 

brought to the U.S. market is legally caught and sustainable is very important. I 

understand that NOAA is working on several initiatives on this front. I look forward 

to working with you and the Committee to address these important issues. 

Question 16. Ocean noise pollution from seismic oil and gas blasting is recognized 

as a major threat to whales and other marine life. Last year, in a statement to 

President Obama, a group of leading marine experts expressed concern that the introduction of seismic airgun blasting off the U.S. east coast would jeopardize the 

survival of the endangered North Atlantic right whale; the year before, marine scientists warned that airgun blasting off the east coast would have long-lasting, widespread impacts on the region’s marine mammal and fish populations. Nearly 100 

counties and towns and more than 30,000 businesses across the region have expressed strong opposition to seismic exploration off their shores. Do you support or 

do you oppose seismic exploration for oil and gas off the U.S. east coast? 

Answer. I would have to rely on scientific advice and appreciate that these are 

complex issues that require careful consideration. As a resident of Southern Florida, 

I also understand how important coastal communities are to our economy. I understand that this is an important issue to you, and if confirmed, I look forward to 

working with the Congress on these issues. 

Question 17. What will you do to protect the marine environment from seismic 

exploration in other regions? 

Answer. If confirmed, I look forward to being briefed by NOAA on seismic impacts 

on marine mammals and the marine environment. As you know, NOAA and the Department are required to comment on impacts to marine mammals and other marine species as part of the National Environmental Policy Act review process, and 

this important work will continue to be a priority. 

Question 18. Last year NOAA adopted an Ocean Noise Strategy to manage the 

chronic, cumulative impacts of ocean noise, which the scientific community recognizes a major environmental threat to everything from great whales to small invertebrates. Will you make the Ocean Noise Strategy a funding priority for your Department? 

Answer. I have not yet been briefed on this strategy. I know that the scientific 

work that NOAA does is important in a wide range of areas. If confirmed I look 

forward to working with Congress on this issue. 

Question 19. For more than 40 years, the Marine Mammal Protection Act has 

been a global model for the conservation of whales, dolphins, seals, and other iconic 

species—species that are critical to ocean health and are passionately supported by 

the American public. Under the MMPA, marine mammal species in U.S. waters 

have fared significantly better than those in most other regions, with many populations rebounding and all benefiting from mitigation and other conservation measures required by the Act. But the continued health of our marine mammal populations depends on the integrity of this legislation. What will you do to defend and 

promote the MMPA’s precautionary standards? 

Answer. I understand that United States law has set many important standards 

for the protection of the marine environment. If confirmed, I look forward to exercising judiciously the Department’s responsibilities under the MMPA and other laws 

enacted by Congress for the protection of marine species and the marine environment. 

Question 20. A number of iconic, endangered marine mammal populations off our 

shores, including North Atlantic right whales off the east coast, southern resident 

killer whales off the Pacific Northwest, and beluga whales in Cook Inlet, Alaska, 

are failing to recover from near-extinction and may indeed be in active decline. 

What concrete actions will you take to ensure the recovery of these critically endangered populations? 

Answer. The health of our marine mammal populations is very important. If confirmed, I look forward to engaging with NOAA experts to learn more about these 

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issues and what may be the best strategies for the health of these populations going 

forward. 

Question 21. NOAA recently issued regulations requiring that foreign fisheries imports meet the same protective standards for marine mammal bycatch that U.S. 

fisheries do. This measure, which is legally required under the Marine Mammal 

Protection Act, has the potential to spare tens of thousands of marine mammals 

around the world from entanglement and death, and has the benefit of putting U.S. 

fishers on a more level playing field with their foreign competitors. What will you 

do to prioritize enforcement of our marine mammal bycatch standards on foreign 

fisheries imports? 

Answer. I believe in making sure that U.S. businesses have a fair playing field, 

and that certainly includes our fishing industries. If confirmed, I look forward to engaging with NOAA on its activities in this area as well as our enforcement strategies and priorities for protecting U.S. fishing interests. 

Question 22. And what actions will you take to ensure that our domestic bycatch 

standards remain robust? 

Answer. I know this is an important issue to you. If confirmed, I look forward to 

being briefed on this issue and working with the Congress to maintain our global 

leadership on bycatch issues. 

Question 23. Unfortunately, there are an increasing number of marine species on 

the threatened or endangered species list. Do you support protecting these threatened and endangered marine species and their critical habitats? 

Answer. The health of our marine species populations is very important. If confirmed, I look forward to engaging with NOAA experts to learn more about these 

issues and what options may be the best strategies for the health of these populations going forward. 

Question 24. I want to turn to an area of involvement where the Department of 

Commerce under President Obama has made enormous strides: advanced manufacturing. In 2014, President Obama signed a law that would create different manufacturing innovation institutes that would work to bring together industry, academia, 

and government actors to foster innovation in manufacturing. The program is called 

Manufacturing USA. 

To date, there have been nine manufacturing innovation institutes established or 

announced with more that may come in the coming year. 

Will you commit to keeping this Obama program, which passed Congress with bipartisan support? 

Answer. Advanced manufacturing is critically important to United States competitiveness. Everything I have learned thus far about Manufacturing USA suggests 

that it has produced good results. If confirmed, I am committed to ensuring that 

the Department continues to strengthen U.S. advanced manufacturing capabilities 

in the most effective manner possible. 

Question 25. Do you have any specific initiatives that will spur advanced manufacturing in the United States? 

Answer. Increased private sector awareness of the opportunities for advanced 

manufacturing and means of achieving them should be a priority. 

Question 26. In this role, you will be charged with overseeing the National Telecommunications Information Administration, NTIA, which manages Federal spectrum holdings. What are your views on Federal spectrum? 

Answer. I favor the maximum private use of spectrum that is consistent with the 

diverse long term needs of the United States for use of this valuable public resource. 

Question 27. The nation is undergoing a process recommended by the 9/11 Commission to outfit the country with a nationwide public safety telecommunications 

network known as FirstNet. This will improve the safety of our citizens and provide 

first responders with the support they need to effectively save lives and respond to 

emergencies. How do you plan to ensure total transparency and careful oversight 

of this roll out? 

Answer. The concept of FirstNet seems sound. If confirmed I will work to address 

the problems that have arisen in the early stages of the rollout and will exercise 

careful oversight of the process. It will be important to keep open communication 

with the States and Congress as FirstNet builds out, in order to ensure maximum 

participation and minimize the cost for using the network. 

Question 28. In addition to my role on the Commerce Committee, I am member 

of the Senate Committee on Small Business and Entrepreneurship. 

One of my key priorities has been to increase the number of minority and womenowned small businesses. As the Secretary of Commerce, you will have oversight and 

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assist in the management of Commerce’s Minority Business Development Agency 

(MBDA). 

Can you speak to your view of the Department’s role in increasing the number 

of minority- and women-owned businesses? How will you build upon the current administration’s efforts? 

Answer. I strongly support the objectives of the MBDA and will try to increase 

public awareness of the assistance MBDA can provide. 

Question 29. As you know, in today’s economy broadband is no longer a luxury, 

but a necessity for people to participate in our job markets, access goods and services, and fulfill their educations. 

Thus, I have long supported the goal of connecting all Americans to high-speed, 

high capacity Internet access. The Secretary of Commerce plays an important role 

in achieving this end. If confirmed, you will have oversight of the National Telecommunications and Information Administration, which manages spectrum—a necessity for wireless and mobile broadband—for the Federal Government. 

How will you encourage agencies to use spectrum more efficiently, thereby making 

more spectrum available for the private sector to ensure continued economic growth 

and opportunities? 

Answer. I favor analyzing what the government’s long-term needs are for spectrum and devising some means of incentivizing current spectrum users to divest 

spectrum that they do not need. This incentive plan may well be contingent on Congressional action. 

Question 30. If confirmed to lead the Department of Commerce, will you commit 

that NTIA will continue its work to explore opportunities for spectrum sharing between Federal and non-Federal users? 

Answer. Yes. 

Question 31. Unlicensed spectrum is, and will continue to be critical for U.S. economic growth. According to some forecasts, by 2020, the Internet of Things could 

connect 50 billion devices, with an estimated economic impact of $19 trillion. 

Given that the vast majority of IoT traffic travels over unlicensed spectrum, what 

actions will you direct NTIA to take to ensure American consumers and businesses 

have access to sufficient unlicensed spectrum to promote growth in the IoT economy? 

Answer. Unlicensed use of spectrum has been an engine of innovation and economic activity. This will continue as devices and applications for the Internet of 

Things proliferate. If confirmed, I will ensure NTIA continues to make spectrum 

available in a manner that advances innovation and economic prosperity as well as 

meeting the long term needs of the United States. 

Question 32. In our 21st Century economy, broadband access and adoption are 

core issues of economic opportunity and competitiveness. Entrepreneurs can’t connect to the global economy without access to broadband, and communities without 

high speed connectivity aren’t realistic locations for companies to invest in. What 

steps will you take to promote broadband deployment, and the availability of affordable and competitive broadband, to unserved and underserved places in rural, tribal, 

and low-income parts of America? 

Answer. The logical way to foster broadband deployment and increase broadband 

availability in currently unserved and underserved areas would be to include 

broadband in whatever infrastructure package Congress ultimately adopts. I will 

also review the programs within the Department to determine which programs have 

been most successful in enhancing broadband deployment and availability. 

Question 33. Among your many responsibilities is one mandated by the U.S. Constitution, overseeing the successful organization and management of the 2020 Decennial Census. As you know, the Census helps to insure fair and equal representation and provides critical population data that informs our policy decisions. What 

assurances can you give us today that you will work diligently to ensure 2020 is 

the best census in our history? 

Answer. As a former enumerator employed by the Census I am aware of the magnitude and complexity of the task as well as its importance to the allocation of Congressional seats and funding. I will work hard to ensure a full, fair and accurate 

Census and to meet the challenges of the changed technological approach to the 

process. 

Question 34. America’s patent system has been the model for the world in creating 

strong patents that lead to technological innovation and spur job growth. But in recent years, countries in Western Europe and Asia have challenged our global position on patents by creating strong patent protections that rival ours, which has led 

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seas. Do you agree that America should regain its preeminent standing as the global 

gold standard on patent protection to ensure that we protect our role as the leader 

in the free world on spurring innovation and job growth? If so, how do we accomplish that goal? 

Answer. Yes. If confirmed, I will seek to develop a detailed plan to ensure America’s patent system is the global gold standard. 

Question 35. When we met in my office, you offered your thoughts on re-negotiating NAFTA as a way of supporting manufacturers in the United States. You 

pointed out that Mexico’s minimum wage has fairly low in the decades since the 

agreement with signed, contributing to a loss of jobs. How do we ensure a renegotiated trade agreement will help American manufacturers? How can we do that while 

supporting wages in Mexico also rise? 

Answer. The two objectives are complementary, not contradictory. In my view, 

achieving the first will result in the second. 

Question 36. In renegotiating NAFTA and other trade agreements, will you maintain or strengthen support for Buy America policies? 

Answer. Buy America will be a major topic in any renegotiation of NAFTA or the 

negotiation of new bilateral agreements with our trading partners. 

Question 37. In renegotiating NAFTA, will you support ending the controversial 

investor-state dispute settlement provisions that can actually have the effect of rolling back consumer protections or food labeling laws? 

Answer. I do not support the current investor-state dispute settlement provisions. 

I believe the long-term objective should be to bring other countries up toward our 

labor, environmental and health standards. 

Question 38. How would renegotiating NAFTA help startups and tech entrepreneurs? 

Answer. The present NAFTA does nothing special to help American entrepreneurs 

and largely ignores technology. These are two of the imperfections that can be addressed in any negotiation of new agreements with our trading partners. 

Question 39. American businesses of all sizes are world leaders in the new datadriven economy, driving the fields of cloud computing, data analytics, the Internet 

of Things, and electronic payment systems among others. They depend on the ability 

to transfer information across borders to and from the United States. However, 

many foreign governments are restricting the free flow of data. We are increasingly 

seeing policies that try to force U.S. businesses to shed jobs in the U.S. and localize 

them into foreign markets. 

Congress has called for action against digital trade impediments. The President 

has extensive trade enforcement authorities. 

As Secretary, what actions will you pursue to obtain a level playing field for 

America’s digital trade champions? 

Answer. It is critical for the U.S. economy and the American worker that U.S. 

technology firms are able to compete on a level playing field overseas. If confirmed, 

I will use all the tools available to the Department of Commerce to secure fair and 

nondiscriminatory digital trade practices and push back on protectionist regulations 

targeting American firms. 

Question 40. In a report on China’s compliance with WTO obligations issued last 

year, the office of U.S. Trade Representative stated ‘‘China has not yet taken needed 

steps to authorize access by foreign suppliers . . . [to the electronic payment market’’ despite its trade obligations. 

As Secretary, how do you plan to ensure that China lives up to its WTO commitments in this area, and others? 

Answer. The basic premise behind the U.S. Government’s support of China’s accession to the WTO was that China would play by the rules. That premise was incorrect. Stronger enforcement is the key to obtaining compliance. 

Question 41. Thousands of U.S. businesses, large and small, have customers overseas. With the explosion of cloud computing, nearly all of them depend on their ability to transfer information rapidly and efficiently to and from facilities and customers outside the United States. Digitally-enabled trade has played a role in the 

creation of millions of American jobs. But digital trade is vulnerable to restrictions 

imposed by foreign governments restricting the free flow of data and requiring that 

it be stored within foreign countries. These forced localization restrictions are increasing across the globe. 

The Commerce Department has been a leader in U.S. efforts to combat such restrictions. As Secretary, what efforts will you undertake with foreign governments 

to enable digital trade to thrive and grow? 

135 

Answer. I am strongly pro-cloud computing. If confirmed, I will work to leverage 

all of the collective expertise of the Commerce Department’s many agencies and bureaus to both advocate for open digital trade and to push back on restrictive digital 

policies overseas, such as restrictions on the free flow of data and forced data localization requirements. 

Question 42. I think we agree there is a geographic disparity in the economy. Cities like Newark, NJ and perhaps rural regions like the Chairman’s see challenges 

in attracting capital and investment, while regions like Silicon Valley or New York 

have proven more resilient and dynamic. 

The Department of Commerce can play an important role when it comes to issues 

concerning the innovation and digital economy. America has some great successes 

to share when it comes to the growth of startups and new tech industries that have 

changed commerce in this country. 

How do you plan to support and bolster entrepreneurs, particularly those in 

emerging technologies and startups, ensure they can compete on an even playing 

field with businesses in other countries? 

Answer. I understand that Commerce is engaging on this issue on several fronts. 

For example, the Commerce Department’s International Trade Administration’s 

mission is to create prosperity by strengthening the international competitiveness 

of U.S. industry, promoting trade and investment, and ensuring fair trade and compliance with trade laws and agreements. I understand that the Economic Development Administration (EDA) also plays a role in helping move communities up the 

economic ladder to produce incrementally more valuable goods and services. It is 

also my understanding that EDA prioritizes support for entrepreneurs and startsup, helping them to accelerate the growth of their ideas into the marketplace and 

compete globally. I look forward to working with the Congress and the U.S. business 

community to help promote innovation and entrepreneurship. 

Question 43. I want to hear about your vision—and the Trump Administration’s— 

for jobs in the U.S. economy. There is, beyond the role of national defense, no more 

important responsibility than for members of this Federal Government to work to 

create an economy where every American has the chance to succeed. 

While the economy has dramatically improved during the Obama era going from 

the brink of a depression and an unemployment rate of 10 percent to 4.7 percent 

in the recent jobs report. Over 14.8 million jobs have been created during the economic recovery under President Obama. This number includes the over 800,000 jobs 

in manufacturing created since the end of the recession. Do you agree that President-elect Trump will take office with a stronger economy than President Obama 

did? 

Answer. The economy remains unable to meet the needs of the American worker. 

Question 44. I want to follow up on a transaction that the President-Elect influenced in late 2016 involving the Indiana company, Carrier. I was grateful for the 

700 individuals who were able to keep their jobs as a result of the deal. However, 

I was troubled to see many American workers lose their jobs, some of the remaining 

jobs get sent overseas to Mexico, while Carrier received $7 million in tax breaks. 

Was the recent ‘‘Carrier Deal’’ a one-time action by the President-Elect or the blue 

print of a policy of the Trump Administration? Does the Trump Administration believe that government should actively intervene in the marketplace to stem job 

losses? 

Answer. The tax breaks granted Carrier by the state of Indiana are consistent 

with Indiana’s economic development policy. 

Question 45. You have stated a desire to integrate new technologies into the Department of Commerce and to utilize technology to better implement the 2020 Census count. Can you elaborate on your plans to achieve these goals? 

Answer. It is my understanding that the 2020 Census is undergoing a complete 

redesign with an effort to embrace technology to modernize and automate its operations without sacrificing data quality. As a one-time Census enumerator, if confirmed, I look forward to working with the Census team on this critically important 

job. 

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. TOM UDALL TO

WILBUR L. ROSS, JR. 

Question 1. Are you the beneficiary or trustee of any discretionary trust that has 

not been fully disclosed to the Committee or the Office of Government Ethics? If so, 

please provide detailed information about the trust(s). 

Answer. No. 

136 

Question 2. During a campaign speech in Ashburn, Virginia last August, President-elect Trump reportedly said that he would ‘‘at least double’’ Hillary Clinton’s 

proposed $275 billion infrastructure plan. Yet he did not provide many details 

where the money to do this will come from. A campaign website describes 

‘‘leverag[ing] new revenues and work with financing authorities, public private partnerships, and other prudent funding opportunities.’’ Can you shed more light on 

what the Trump infrastructure plan really is and how it will be funded? 

Answer. The President’s infrastructure proposal is under development. At this 

time I have no more detail to provide. 

Question 3. Some of my Congressional colleagues have reportedly expressed concerns about how to pay for a Trump infrastructure plan. There are news reports 

that estimate that a tax reform package could lead companies to repatriate up to 

$200 billion of overseas cash holdings. Such tax measures could be part of a broader 

agreement to help fund infrastructure upgrades with Federal investments. What 

level of direct Federal investment will be necessary to support a Trump infrastructure plan? 

Answer. As previously described, the President’s infrastructure proposal is under 

development and it would be premature to comment on any particular aspect of it 

at this time. 

Question 4. During the hearing you mentioned that infrastructure spending can 

have an economic stimulus effect. Would direct Federal investment to upgrade our 

Nation’s infrastructure create jobs and promote economic growth? 

Answer. Yes. In general a significant portion of infrastructure spending is paid 

out in labor costs, which results in an immediate economic stimulus effect. 

Question 5. Mr. Ross, I was pleased to learn during our meeting that you have 

firsthand job experience as a Census worker. The 2020 Census will be one of your 

biggest challenges in your new job as Commerce Secretary. One perennial challenge 

facing the Census is getting an accurate count of Americans who are ethnic and racial minorities. My home state of New Mexico has a large Hispanic population and 

twenty-two Federally-recognized Indian tribes. The Census Bureau’s own analysis 

of the 2010 Census found that 1.5 percent of the Hispanic population was undercounted. And almost 5 percent of American Indians and Alaska Natives living on 

reservations were undercounted. Will you commit to making improvements in the 

2020 Census to ensure a more accurate count of ethnic and racial minorities? 

Answer. If confirmed, I will do my best to assure a full, fair and accurate Census 

that includes hard-to-count populations. 

Question 6. Tribes have expressed for years their interest in being able to better 

access programs at the Commerce Department. I believe better communication with 

tribes and having Commerce Department personnel focused on working with our 

tribal governments are key steps to making improvements. If confirmed, will you 

uphold our Federal Government’s treaty and trust responsibilities to Indian tribes? 

Answer. If confirmed, I look forward to being involved in government to government consultations with Federally-recognized Tribes and working with Congress 

and Native Americans to improve understanding of and access to the Department’s 

programs. 

Question 7. Mr. Ross, during our private meeting, we spoke at length about the 

economic challenges facing many Native American communities where the unemployment rate can be as high as 40 percent. I believe that the Department of Commerce needs to do a better job of harnessing its various tools to support economic 

development. One proposal we discussed is creating an Office of Native Affairs within the Commerce Secretary’s office. This could encourage a more coordinated and 

comprehensive approach to encourage job growth in Indian country. Will you consider this idea and reply in writing whether you will stand up such an office? 

Answer. If confirmed I will formulate a policy as soon as practical. 

Question 8. Will you share in writing within 90 days how the Commerce Department under your leadership will support economic growth and job creation on tribal 

lands? 

Answer. If confirmed, I will review the Department’s current programs and policies in this regard and will work with the Department and Congress to advance 

policies that promote economic growth and job creation throughout the country, including tribal areas and rural communities. 

Question 9. According to Federal Communications Commission data, 80 percent 

of those living on tribal lands in my home state do not have access to fixed 

broadband. When FCC Chairman Tom Wheeler visited Acoma Pueblo with me, we 

stopped by the tribe’s community library. It has free Wi-Fi that the librarian keeps 

on 24/7. That way those without Internet at home can come to the parking lot after 

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hours and still get online from outside the building. These unserved areas are precisely where broadband technology can help the most. By overcoming physical distances and geographic isolation, broadband can help improve economic development, 

education, and access to health care. What steps will the Commerce Department 

take under your leadership to close the digital divide facing Indian country? 

Answer. Any infrastructure bill might be the logical place for this. 

Question 10. The appalling statistics for the digital divide on tribal lands do not 

convey the real hardships and lost opportunities that are a consequence of a lack 

of investment in telecommunications infrastructure. Following the abduction and 

tragic death last year of 11-year-old Ashlynne Mike near Shiprock, New Mexico, the 

Navajo Nation is working to put an amber alert system in place. But this will not 

work in areas without wireless service. That is just one example that highlights how 

the digital divide impacts those living on tribal lands. So I strongly supported the 

inclusion of broadband infrastructure in President Obama’s stimulus package. 

NTIA’s Broadband Technologies Opportunities Program (BTOP), for example, supported important fiber and wireless investments on the Navajo Nation. Will you 

support the inclusion of direct Federal investments in broadband as part of a Trump 

Administration infrastructure plan? 

Answer. All unserved and underserved areas should be considered for broadband 

deployment in any infrastructure bill. I support broadband deployment as an important asset needed to promote jobs and facilitate advanced manufacturing and technology innovation. I look forward to being briefed on the Department’s broadband 

efforts to date and working to maximize the effectiveness of the Department’s programs in this regard. 

Question 11. What are your own personal views on climate change and the scientific evidence that demonstrates humans are impacting the climate? 

Answer. I know climate and weather information are important. If confirmed, I 

will make sure the Department provides the accurate and reliable data on these 

matters to the general public. 

Question 12. How will your understanding of climate change inform your leadership of the Department of Commerce? 

Answer. If confirmed, I look forward to being fully briefed by the Department’s 

scientists on weather and climate issues. These briefings will inform my leadership 

of the Department and the advice I provide if confirmed as Secretary of Commerce. 

Question 13. I was alarmed by news reports that the Trump transition team 

sought a list of all Department of Energy employees or contractors who attended 

climate change-related meetings. This sparked fears of a potential purge of scientists based on their research. Will you give your assurance that scientists and 

staff who work on climate issues in the Department of Commerce will not face intimidation or any negative attention based on their scientific research? Please answer yes or no. 

Answer. If confirmed, I will manage the Department without bias. Scientific factual data should be the sole province of scientists. 

Question 14. NOAA leads the interagency National Integrated Drought Information System (NIDIS), which is charged with providing drought early warnings to the 

United States. Farmers, particularly those in drought-prone regions like much of 

New Mexico, rely on these predictions for crop and water management. Will you 

continue this important effort as Secretary of Commerce? 

Answer. If confirmed, I look forward to being fully briefed on the National Integrated Drought Information System. I recognize the importance to farmers of timely 

and accurate information related to drought conditions. 

Question 15. As a member of the National Interagency Fire Center, NOAA and 

the National Weather Service provide weather data that is crucial for predicting fire 

conditions before fires begin, and for monitoring fire-fighting conditions so that our 

first responders are able to act in a safe and efficient way. This program is increasingly important in states like New Mexico, where drought conditions make much 

of our 16.7 million acres of forested land vulnerable to fires. Will you continue this 

vital program within NOAA and the National Weather Service? 

Answer. I agree that the National Weather Service serves an essential function. 

Timely and accurate weather information is crucial to protect both lives and property, and especially so in areas prone to wildfires. Weather information is also essential to the smooth functioning of numerous areas of commerce, including aviation, shipping, fishing and farming, to name just a few. Proper staffing of the NWS 

is therefore important and, if confirmed, I intend to review the current efforts and 

see how they can be improved, including with respect to maintaining the National 

Weather Service’s role in the Interagency Fire Center. 

138 

Question 16. Mr. Ross, thank you for your interest in encouraging efficient use 

of Federal spectrum, taking advantage of the potential resources of the Spectrum 

Relocation Fund, and finding opportunities to make more spectrum available for 

commercial use. However, this generally refers to commercializing spectrum for licensed use (e.g., mobile phone networks). Could you state for the record whether you 

agree with me that unlicensed spectrum (such as that currently used for Wi-Fi enabled devices) also has a critical role in promoting innovation and economic growth? 

Answer. If confirmed, I will work with NTIA to promote the availability of both 

licensed and unlicensed spectrum for broadband applications and new innovation, 

including the Internet of Things, while ensuring that the long-term needs of the 

United States continue to be met. 

Question 17. If confirmed, will you support ongoing NTIA efforts to explore spectrum sharing opportunities between Federal and non-federal users? 

Answer. If confirmed, I look forward to being briefed on NTIA’s current efforts 

with respect to spectrum sharing, and in general will favor policies that maximize 

efficient use of spectrum. 

Question 18. During the hearing, you noted that Federal entities should continue 

to have access to the spectrum they need. This is particularly important since many 

Federal agencies rely on wireless spectrum to meet their missions, including critical 

law enforcement and national security functions. I would like to make sure you are 

also aware that NTIA manages spectrum used by National Science Foundation-supported research activities such as radio astronomy. Astronomers from around the 

world use the Very Large Array (VLA) radio telescope located outside Socorro, NM 

to make observations of stars, quasars, pulsars, and galaxies that would not be possible with optical telescopes. Current law allocates certain radio frequencies for such 

scientific use and protects against harmful interference. If confirmed, will you ensure that NTIA will continue to ensure that radio astronomers have access to the 

spectrum their work depends on? 

Answer. If confirmed, I look forward to being briefed by NTIA on the many different government uses of the radio spectrum. Radio astronomy seems like an appropriate use of spectrum to advance the Nation’s scientific knowledge. 

Question 19. Trump campaign national policy director Stephen Miller issued a 

statement (available at https://www.donaldjtrump.com/press-releases/donald-j.- 

trump-opposes-president-obama-plan-to-surrender-american-internet, accessed 

Jan. 18, 2017) in response to NTIA’s long-planned effort to privatize the administration of the Internet’s domain name system (DNS). The largely technical function of 

DNS can be compared to maintaining a phone directory to help computers connect 

across the Internet, for activities such as web browsing or cloud computing services. 

Mr Miller stated that: ‘‘The U.S. should not turn control of the Internet over to the 

United Nations and the international community. President Obama intends to do 

so on his own authority—just 10 days from now, on October 1, unless Congress acts 

quickly to stop him . . . . . Internet freedom is now at risk with the President’s 

intent to cede control to international interests, including countries like China and 

Russia, which have a long track record of trying to impose online censorship. Congress needs to act, or Internet freedom will be lost for good, since there will be no 

way to make it great again once it is lost.’’ The October 1, 2016 expiration of NTIA’s 

Internet Assigned Numbers Authority (IANA) functions contract that Mr. Miller’s 

statement warned about has already occurred. Do you believe the Internet today is 

now ‘‘lost’’ to international interests including China and Russia? 

Answer. I am not aware of any feasible alternative to the current situation. 

Should a feasible alternative be presented it would certainly merit serious consideration. 

Question 20. Did the October 1, 2016 expiration of NTIA’s Internet Assigned 

Numbers Authority (IANA) functions contract result in a loss of Internet freedom? 

Answer. I have not seen a thorough analysis of this question. 

Question 21. NTIA describes itself as ‘‘the Executive Branch expert on issues relating to the DNS and supports a multi-stakeholder approach to the coordination 

of the DNS to ensure the long-term viability of the Internet as a force for innovation 

and economic growth’’ (available at https://www.ntia.doc.gov/category/domainname-system, accessed Jan. 18, 2017). Will NTIA under your leadership continue to 

support a multi-stakeholder approach to Internet governance? 

Answer. I have no reason to change this policy. 

Question 22. The Middle Class Tax Relief and Job Creation Act of 2012 created 

the First Responder Network Authority (FirstNet) as an independent authority 

within NTIA. Will you support efforts to ensure that rural areas, and not just urban 

centers, benefit from this initiative to create a public safety broadband network? 

139 

Answer. If confirmed, I look forward to being briefed on FirstNet’s plans for deploying in rural areas. I support broadband deployment as an important asset needed to promote jobs and facilitate advanced manufacturing and technology innovation. 

Question 23. Mr. Ross, we heard a lot about the border during the presidential 

campaign, such as plans to build a border wall and raise tariffs on products from 

Mexico. This has caused concerns in borderlands areas of my home state about how 

these policies could hurt jobs and business opportunities. So I would like to invite 

you to visit New Mexico and to meet some of my constituents who live and work 

near the border. If confirmed, will you commit to visiting New Mexico to see firsthand some of the economic challenges and opportunities in the Land of Enchantment? 

Answer. I look forward to future visits to New Mexico to learn firsthand of the 

challenges and opportunities your communities face. 

Question 24. According to reports, your transition team prepared a memo outlining plans to begin reform of the North American Free Trade Agreement (NAFTA) 

on ‘‘day one’’. Should you be confirmed, what role will the Department of Commerce 

have in accomplishing this? 

Answer. The Department of Commerce, USTR, the newly created National Trade 

Council, and the President’s new special advisor for international negotiations will 

work collaboratively to maximize the intellectual and analytical resources brought 

to bear on trade negotiations. Congress has provided Commerce and USTR complementary statutory roles, and these roles will be executed in a coordinated manner with the support of the NTC and the special advisor. 

Question 25. Do you plan to order the Department in partnership with International Trade Commission to begin a study on the ramifications of withdrawing 

from NAFTA? 

Answer. The International Trade Commission will continue to perform its statutory functions. 

Question 26. Will you recommend notifying Mexico and Canada that the United 

States intends to propose amendments NAFTA? 

Answer. The President made clear during his campaign that the United States 

intends to re-visit NAFTA and negotiate necessary changes to ensure fair and balanced trade with both Mexico and Canada. I support the President’s view on this 

matter. 

Question 27. If so, what amendment(s) will you as head of the Department of 

Commerce propose under such NAFTA negotiations? 

Answer. It is obviously premature to discuss the details of what might be negotiated, but during the campaign concerns with compliance and with trade agreement 

details were frequently raised. NAFTA issues of concern include rules for country 

of origin, dispute resolution mechanisms, and simultaneity of concessions. Addressing these concerns will be part of any future negotiations. 

Question 28. How will you utilize your role as Secretary of Commerce to force 

China to adhere to its commitments made during the 2013 U.S.-China Strategic and 

Economic Dialogue to adopt a market-determined exchange rate? China has yet to 

deliver on this commitment. Will you recommend that the President take further 

action to stand up for American workers and address China’s currency manipulation? 

Answer. I agree that currency manipulation is inappropriate and should be addressed. However, it is the Department of the Treasury that is responsible for designation of currency manipulation offenders, so I must defer to Treasury’s judgement with respect to whether or not any particular country is engaged in the practice. 

Question 29. New Mexico is a majority minority state. Nearly half—48 percent— 

of New Mexicans are Hispanic and over 10 percent are Native American. This diversity is one our state’s greatest strengths. But it also means that a larger proportion 

of business owners in New Mexico face challenges obtaining contracts and financial 

awards when competing globally. Around the country, MBDA does a great job working with entrepreneurs including in Santa Fe. I was disappointed, however, that 

MBDA decided to cease operations in Albuquerque. At this critical time for New 

Mexico’s economic security, I believe any decrease in MBDA’s services needs to be 

quickly corrected. What is your plan to provide access to MBDA services in areas 

that do not currently have an MBDA office? 

Answer. If confirmed, I look forward to being briefed on MBDA programs and understanding the funding and staffing challenges that MBDA faces. I plan to review 

all aspects of the Department to find efficiencies and cost savings in order to maxiVerDate Nov 24 2008 09:55 Jul 10, 2017 Jkt 075679 PO 00000 Frm 00143 Fmt 6601 Sfmt 6621 S:\GPO\DOCS\25974.TXT JACKIE
140 

mize the Department’s ability continue programs that promote jobs, innovation and 

exports. 

Question 30. If confirmed, will you support NIST’s ongoing efforts, such as Head 

Health Challenges, to support the discovery, design and deployment of advanced 

materials that can improve the protection of athletes, members of the military and 

others from brain injuries? 

Answer. If confirmed, I look forward to learning more about what NIST is doing 

in this area. In general, I support the concept of advanced material research. 

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. GARY PETERS TO

WILBUR L. ROSS, JR. 

Question 1. Unfortunately today many are worried that data produced by scientists during the Trump Administration will be edited, twisted, or even completely 

hidden from the public by political appointees, especially if that data is related to 

climate change. The Department of Commerce, along with most other Federal agencies, has a policy on scientific integrity to ensure that science is conducted and communicated to the public without political interference. If confirmed, will you commit 

to ensuring that scientists and technical experts can edit scientific and technical 

content and communicate their findings directly to the public? 

Answer. If confirmed I will not interfere with the release of factual scientific data. 

Question 2. From weather satellites to advanced manufacturing techniques, the 

Department of Commerce invests in a range of basic and applied research that is 

critical to our Nation’s safety and prosperity. Given existing budgetary constraints, 

what research areas will you prioritize at the Department? 

Answer. Both objectives are important, and I will work with policymakers on behalf of appropriate resources that our government decides should be allocated for 

research. 

Question 3. How will you balance short-term versus long-term funding? 

Answer. If confirmed I will weigh carefully the competing demands for funding, 

and assess inputs to determine the appropriate balance between the two, including 

information and advocacy from members of Congress and the public. 

Question 4. Manufacturing is a critical industry to the state of Michigan and to 

our national economy. If we want to grow our auto and defense sectors, we have 

to do more to support the small manufacturers supply chain that serves as their 

bedrock. NIST’s Manufacturing Extension Partnership is the one Federal program 

that provides technical assistance to the Nation’s small manufacturing community, 

including many defense, auto, transportation and electronics suppliers. Can you 

commit to growing the Manufacturing Extension Partnership over your tenure to 

improve the competitiveness of these small manufacturing companies? 

Answer. I have heard only good things about the NIST Manufacturing Extension 

Partnership. If confirmed, I look forward to being fully briefed on the program and 

will carefully consider it when allocating resources within the Department. As you 

know, a key constraint on any extension of the program is the amount of available 

funding that is provided by Congress. 

Question 5. Detroit, Michigan is home to the Lightweight Innovations for Tomorrow (LIFT), which is one of the original institutes of NIST’s National Network for 

Manufacturing Institutes (NNMI) under the Manufacturing USA Program. This 

public-private partnership, founded by the University of Michigan, is focused on the 

applied development for lightweight metal alloy production and manufacturing technologies for defense and commercial transportation applications. Michigan State 

University is also a key partner in the Institute for Advanced Composites Manufacturing Innovation (IACMI), another outpost of Manufacturing USA, which is focused 

on accelerating development of manufacturing technologies for low-cost energy-efficient manufacturing of composites for vehicles, wind turbines, and compressed gas 

storage. This work is critical to our manufacturing sector and to our international 

competitiveness. What do you see as the future of Manufacturing USA? How can 

Congress and the Administration work together to reach the goal of 45 institutes? 

Answer. I have heard only good reports about the Manufacturing USA program, 

and look forward, if confirmed, to a thorough briefing on it. As you are aware, President Trump intends to make increased manufacturing in the United States a priority, and programs like Manufacturing USA would appear to be in line with that 

goal. The key constraint on reaching the 45-institute objective is funding, which is 

provided by Congress. If confirmed, I will carefully analyze the pace at which we 

could afford to expand the program given current budgets and competing priorities. 

141 

Question 6. One of the greatest threats facing our Nation today is cybersecurity 

of our critical infrastructure systems and networks. What is your view on the importance of cybersecurity? Are you committed to the actionable recommendations from 

Commission on Enhancing National Cybersecurity on securing and growing the digital economy? The report recommends that we close workforce gaps through capacity 

building and innovation investment—such as automation and artificial intelligence—that will shape the future workforce. What role will NIST play in these efforts? How will NIST and your Department of Commerce work to improve the 

cybersecurity of the Internet of Things through private-public collaboration? 

Answer. Cybersecurity is a huge and immediate problem. Strengthening our 

cybersecurity is critical to U.S. trade and national security. If confirmed, I will work 

proactively through NIST and with our interagency and industry partners to address the cybersecurity and privacy challenges that our Nation currently faces and 

will regularly review the Department’s efforts to ensure that markets remain open 

to U.S. innovators. 

Question 7. The value of U.S. intellectual property is estimated at over $5 trillion, 

and 60 percent of U.S. exports come from IP-intensive industries. Patent protection 

helps innovators recoup the cost of R&D, capitalize on their inventions, create jobs, 

and expand the economy. In 2012, the Elijah J. McCoy Midwest Regional U.S. Patent and Trademark Office located in Detroit, Michigan was the first patent office 

to open outside the Washington, D.C. area. This office serves Illinois, Indiana, Iowa, 

Kentucky, Michigan, Minnesota, Missouri, Ohio and Wisconsin. The USPTO has 

since opened locations in Texas, Colorado and California and entered a partnership 

with Cornell University. In addition to their administrative functions, these regional 

offices provide valuable resources to local communities including workshops, 

trainings, conferences and roundtables. Will you commit to maintaining, supporting 

the Federal workforce at USPTO satellite offices in Detroit and other innovation 

hubs like Silicon Valley and Austin? 

Answer. I have heard only good reports about USPTO satellite offices, and if confirmed look forward to working with Congress on this issue. 

Question 8. Last Congress, I introduced the bipartisan Small Business Innovation 

Protection Act of 2016 which would require the SBA and USPTO to enter partnerships to leverage existing outreach programs in order to educate more small businesses on domestic and international patents. Specifically, the bill will require the 

SBA and USPTO to develop partnership agreements in order to develop high quality 

training relating to domestic and international patent protection and would require 

the SBA and USPTO to enter partnerships in order to increase the effectiveness of 

SBDCs. Will you commit to working across agencies to ensure the USPTO leverages 

resources in support of America’s small businesses? 

Answer. If confirmed, I favor more patent oriented outreach to small businesses 

and I will review your legislation for ideas on how to improve USPTO’s support for 

small businesses. 

Question 9. The criminal justice system relies heavily on forensic science to identify and prosecute criminals, yet many forensic tests lack scientific validation. For 

several years, Department of Justice, in partnership with NIST, has brought together scientists, law enforcement, and representatives from the judicial community 

to enhance the practice and improve the reliability of forensic science. However, in 

a report last year, the President’s Council of Advisors on Science and Technology 

noted that forensic science methods and tests are still not evaluated for foundational 

validity. The report recommended that NIST perform such evaluations. What role 

do you think the Department of Commerce can play in improving criminal justice 

in this country? 

Answer. If confirmed, I look forward to being briefed on what NIST has done to 

date to improve forensic science and will carefully evaluate the report you cited. I 

agree that accurate and reliable forensics are an important tool in our criminal justice system, and look forward to working with you on this important issue. 

Question 10. Will you prioritize investments to improve forensic science methods 

at NIST? 

Answer. NIST is responsible for carrying out many important programs, including 

this one. If confirmed, I will carefully evaluate NIST’s priorities and will do my best 

to ensure that the available funding is used to maximum effect. 

Question 11. Under the terms of joining the World Trade Organization, China 

agreed to be designated as a ‘‘non-market economy’’ for 15 years. This designation 

reflects the reality that China’s state-owned enterprises still have control over vast 

sectors of the Chinese economy. The automatic designation expired last month, and 

now the Chinese government believes it deserves to be recognized as a market economy. 

142 

The Obama Administration has said that the United States would not be changing China’s status as a non-market economy, under the current interpretation of the 

Commerce Department’s statutory guidelines. Do you see any reason why this outlook would change under your leadership, if confirmed? Do you believe that China 

acts in today’s interconnected world as a true market economy? 

Answer. I do not believe China is a market economy. As long as the Chinese have 

massive overcapacity they will continue to dump. State-owned enterprises are not 

required to make a profit because state owned banks continue to prop them up. This 

sort of behavior is part of the proof that China is not a market economy. 

Question 12. One of my foremost concerns with the proposed Trans-Pacific Partnership agreement was the lack of strong currency manipulations provisions embedded in the final agreement. Will the Trump Administration commit to the inclusion 

of strong, enforceable currency provisions in any future bilateral or multilateral 

trade agreements it may pursue? 

Answer. It is obviously premature to discuss the details of what might be negotiated, but during the campaign concerns with currency manipulation were frequently raised. Addressing these concerns will be part of any future negotiations. 

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. TAMMY BALDWIN TO

WILBUR L. ROSS, JR. 

Question 1. Mr. Ross, your Department of Commerce ethics agreement states that 

you will receive a bonus payment and accelerated vesting of stock from Invesco Ltd. 

should you be confirmed by the Senate. If you were to leave Invesco for a competitor 

(as opposed to taking a position in the Federal Government) would you receive the 

same bonus and accelerated vesting treatment? 

Answer. Invesco followed its usual procedure for employees who depart on good 

terms. 

Question 2. China claims that its protocol of accession to the WTO requires all 

countries to treat it as a market economy in antidumping investigations. The U.S. 

Government has concluded that the United States is under no such obligation. 

Under the criteria applied by the Commerce Department, China is clearly not a 

market economy. Treating China as a market economy would essentially exempt it 

from the antidumping laws, as Chinese companies would always be able to manipulate prices to avoid dumping. As technical as it sounds, this is actually one of the 

most important issues facing American manufacturing, as well as the manufacturing sectors of the EU, Canada, and Mexico, among others. Will you oppose any 

grant of market economy status to China? With China now challenging the U.S. position on this issue at the WTO, what will you do to defend our Nation’s right to 

treat China as a non-market economy? What can the Department do to persuade 

our major trading partners, including the EU and Canada, to also oppose the grant 

of market economy status to China? 

Answer. I do not believe China is a market economy. As long as the Chinese have 

massive overcapacity they will continue to dump. State-owned enterprises are not 

required to make a profit because state owned banks continue to prop them up. This 

sort of behavior is part of the proof that China is not a market economy. 

Question 3. Export sales account for one day out of every week’s worth of American milk production, making them particularly important to Wisconsin. Although 

our exports to many markets have been growing, Canada has recently implemented 

several policies to restrict American access to the Canadian dairy market. Wisconsin 

ultrafiltered milk exports have already dropped as a result of the Ontario Class 6 

program instituted last fall. Next month, a National Ingredients Strategy policy in 

Canada will further displace U.S. dairy exports and damage global milk powder 

markets. How will you tackle this immediate threat to U.S. dairy exports and U.S. 

jobs with one of our top trading partners along our northern border? Beyond trade 

with Canada, will you prioritize securing and expanding export markets for U.S. 

dairy products? 

Answer. Milk would be a logical part of any negotiation of a new trade agreement 

with Canada. 

Question 4. For the past several years, the European Union has been working to 

misuse geographical indications in order to erect roadblocks to products from Wisconsin’s highly competitive and high-quality cheese makers in many foreign markets. How do you envision working with USTR, USDA and USPTO to combat these 

European efforts to harm our ability to tap into global markets and erect non-tariff 

trade barriers to hurt our food exports? 

Answer. I oppose all such non-tariff trade barriers. 

143 

Question 5. NOAA research and data gathering activities provide critical information, ranging from short to long-term forecasting, data on Great Lakes ice cover, and 

data that strengthen our understanding of climate patterns. This information is important to Great Lakes coastal communities, farmers, and the Great Lakes shipping 

industries, as it informs planning and how communities and industries position 

themselves over time. Under your leadership, would NOAA continue to prioritize research on long-term climate patterns and work to prioritize advancements in timely 

and accurate weather forecasting? Will you commit that scientists in climate related 

fields would be unfettered by political influence to conduct their research? 

Answer. Scientific factual data should be the sole province of scientists. 

Question 6. Coastal communities and regions face unique challenges in revitalizing and improving their resiliency. Would you prioritize resources for coastal communities and efforts to improve resilience against larger and more powerful weather 

events? 

Answer. If confirmed, I look forward to being fully briefed on NOAA’s efforts with 

respect to improving resilience in coastal communities. As a resident of a coastal 

community, I certainly appreciate the impact that weather events can have and in 

general support cost effective efforts to minimize those impacts. 

Question 7. As the leader of NOAA, you would oversee a substantial research endeavor, which provides basic and applied research to inform nearly every aspect of 

our economy. What are your views on the Federal role in investing in basic and applied climate, weather, and coastal research? 

Answer. There clearly is a role for Federal funding, especially of basic research. 

Question 8. America’s infrastructure is crumbling, threatening to leave U.S. companies and workers behind many of our competitors. The President-Elect has talked 

about a big program, which is critical to economic growth and restoring U.S. competitiveness. However, most infrastructure experts believe that tax credits are not 

the answer. After all, these are public projects—and, while there may be revenue 

associated with some projects, like toll roads—many projects have lengthy useful 

lives making it unrealistic to charge users the fees needed to pay private investors 

back in a timely way. As an example of how this could go awry, we shouldn’t be 

replacing a water system in Flint through a tax credit mechanism, knowing that 

homeowners will inevitably have to shoulder the costs. So, how big a program is the 

President thinking about? How much will he ask Congress to allocate in direct 

spending? Will he ensure that every project is covered by strong domestic procurement requirements? 

Answer. I believe we should harness every conceivable source of infrastructure 

funding including those projects for which sound public policy supports Federal 

funding. Until we know more about which projects are to be involved, it is impossible to allocate amounts. The President has expressed support for Buy America programs. 

Question 9. You have advocated for self-initiating trade cases which, for my constituents, would make a huge difference. This is especially true for small-and midsized companies that do not have the resources to navigate the complex and lengthy 

process of obtaining relieve from unfair trade. Wisconsin companies have had to suffer enormous injury and, often, significant monetary costs simply to bring cases. 

How do you intend to move forward? What are your priorities? 

Answer. We need to pick a couple of different early cases of the scale needed to 

send a real message. 

Question 10. The rules of origin for autos are a critical part of our trade agreements. TPP was a failure in allowing the vast majority of a product to consist of 

Chinese components but be eligible for a ‘‘Made In America’’ sticker for the purposes 

of the preferences in the TPP. What percentage of a product should be made in 

North America—or, more importantly, the U.S.—as you look to renegotiate NAFTA? 

Answer. I share the President’s objective of ensuring our trade agreements result 

in more manufacturing and jobs here in the United States. Achieving that objective 

will be an important goal in any new trade agreement. It would be premature to 

commit to a specific percentage, though certainly the existing NAFTA threshold represents the high end of any percentage that might be agreed to in future discussions 

with Mexico or Canada. 

144 

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. TAMMY DUCKWORTH TO

WILBUR L. ROSS, JR. 

Question 1. The Bureau of Industry & Security has been the leading agency developing export regulations on business with Cuba. Significant progress has been made 

with U.S. businesses having more opportunities exporting to Cuba. For example, 

over the past 15 years nearly $5 billion worth of U.S. agricultural products were 

exported to Cuba and the U.S. held the largest market share of Cuba’s agricultural 

imports for nine of the last 11 years. Illinois accounts for 20 percent of American 

corn and soybean exports and trade with Cuba could potentially benefit Illinois 

farmers to the tune of $120 million per year. How will you work to ensure that 

trade with Cuba continues to grow and open opportunities for U.S. Businesses, including farmers in Illinois, to tap into that market? 

Answer. The basic decisions on Cuba will be made by the White House and the 

State Department. Within those constraints I favor anything that stimulates ease. 

Question 2. How will you work to ensure that the 2020 U.S. Census reaches all 

the diverse populations and what is your commitment to this important 2020 U.S. 

Census? 

Answer. I am keenly aware of the complexity of the process especially with the 

introduction of hand-held devices and will carefully monitor the training and roll 

out. 

Question 3. With a greater need to encourage more businesses into advanced manufacturing, how will you continue to support the advanced manufacturing initiatives 

through the Economic Development Agency (EDA), while also considering how to develop a robust supply chain infrastructure that provides opportunity for entry to minority entrepreneurs? 

Answer. Both are important objectives, and I do not believe they are mutually inconsistent. 

Question 4. Across the nation, Free Trade Zones (FTZs) are engaged in building 

our economy and promoting American manufacturing and employment. In Illinois, 

seven active FTZs employed approximately 21,000 workers. In 2015, Illinois ranked 

ninth among all states in merchandise received; and fourteenth in exports from 

FTZs. 

How would the Trump Administration take advantage of the unique potential of 

U.S. Foreign-Trade Zones to promote U.S. operations, jobs, and exports, and grow 

the U.S. economy? 

Will the Administration be willing to consider ways to make the U.S. ForeignTrade Zone Program even more effective in further eliminating trade disparities 

with foreign countries? 

Answer. My steel company used the Foreign Trade Zone Program effectively. If 

confirmed I look forward to working with the Department and Congress to maximize 

its effectiveness. We need better communication of its usefulness throughout the 

business community. 

Question 5. I appreciated your commitment during the hearing that if confirmed, 

you will demonstrate leadership in prioritizing effective enforcement of trade laws 

that is proactive, timely and robust. Such an initiative is incredibly important to 

Illinois workers and employees throughout the country. Will you commit to consulting with my office on this effort and to providing me with periodic updates on 

the status of your progress defending American industry against violations of trade 

agreements? 

Answer. Yes. 

Æ 

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