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76–356—PDF 2011

S. HRG. 112–580 

NOMINATIONS OF JOSEPH H. GALE, MICHAEL 

W. PUNKE, ISLAM A. SIDDIQUI, PAUL PIQUADO, 

AND DAVID S. JOHANSON 

HEARING 

BEFORE THE

COMMITTEE ON FINANCE 

UNITED STATES SENATE 

ONE HUNDRED TWELFTH CONGRESS 

FIRST SESSION 

ON THE

NOMINATIONS OF 

JOSEPH H. GALE, TO BE A JUDGE OF THE UNITED STATES TAX COURT; 

MICHAEL W. PUNKE, TO BE DEPUTY UNITED STATES TRADE REPRESENTATIVE, WITH THE RANK OF AMBASSADOR; ISLAM A. SIDDIQUI, 

TO BE CHIEF AGRICULTURAL NEGOTIATOR, WITH THE RANK OF AMBASSADOR, OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE; PAUL PIQUADO, TO BE ASSISTANT SECRETARY FOR IMPORT ADMINISTRATION, DEPARTMENT OF COMMERCE; AND DAVID S. JOHANSON, TO BE A MEMBER OF THE UNITED STATES INTERNATIONAL 

TRADE COMMISSION 

SEPTEMBER 12, 2011 

( 

Printed for the use of the Committee on Finance 

COMMITTEE ON FINANCE 

MAX BAUCUS, Montana, Chairman 

JOHN D. ROCKEFELLER IV, West Virginia 

KENT CONRAD, North Dakota 

JEFF BINGAMAN, New Mexico 

JOHN F. KERRY, Massachusetts 

RON WYDEN, Oregon 

CHARLES E. SCHUMER, New York 

DEBBIE STABENOW, Michigan 

MARIA CANTWELL, Washington 

BILL NELSON, Florida 

ROBERT MENENDEZ, New Jersey 

THOMAS R. CARPER, Delaware 

BENJAMIN L. CARDIN, Maryland 

ORRIN G. HATCH, Utah 

CHUCK GRASSLEY, Iowa 

OLYMPIA J. SNOWE, Maine 

JON KYL, Arizona 

MIKE CRAPO, Idaho 

PAT ROBERTS, Kansas 

MICHAEL B. ENZI, Wyoming 

JOHN CORNYN, Texas 

TOM COBURN, Oklahoma 

JOHN THUNE, South Dakota 

RICHARD BURR, North Carolina 

RUSSELL SULLIVAN, Staff Director 

CHRIS CAMPBELL, Republican Staff Director 

(II) 

(III) 

C O N T E N T S 

OPENING STATEMENTS 

Page 

Baucus, Hon. Max, a U.S. Senator from Montana, chairman, Committee 

on Finance ............................................................................................................ 2 

Hatch, Hon. Orrin G., a U.S. Senator from Utah ................................................. 3 

Grassley, Hon. Chuck, a U.S. Senator from Iowa ................................................. 5 

Cornyn, Hon. John, a U.S. Senator from Texas .................................................... 6 

WITNESSES 

Gale, Joseph H., nominated to be a Judge of the United States Tax Court, 

Washington, DC ................................................................................................... 8 

Punke, Ambassador Michael W., nominated to be Deputy United States Trade 

Representative, with the rank of Ambassador, Executive Office of the President, Washington, DC .......................................................................................... 9 

Siddiqui, Ambassador Islam A., nominated to be Chief Agricultural Negotiator, with the rank of Ambassador, Office of the United States Trade 

Representative, Executive Office of the President, Washington, DC .............. 11 

Piquado, Paul, nominated to be Assistant Secretary for Import Administration, Department of Commerce, Washington, DC ............................................. 12 

Johanson, David S., nominated to be a Member of the United States International Trade Commission, Washington, DC ................................................... 14 

ALPHABETICAL LISTING AND APPENDIX MATERIAL 

Baucus, Hon. Max: 

Opening statement ........................................................................................... 2 

Prepared statement .......................................................................................... 23 

Cornyn, Hon. John: 

Opening statement ........................................................................................... 6 

Gale, Joseph H.: 

Testimony .......................................................................................................... 8 

Prepared statement .......................................................................................... 25 

Biographical information ................................................................................. 26 

Responses to questions from committee members ......................................... 35 

Grassley, Hon. Chuck: 

Opening statement ........................................................................................... 5 

Hatch, Hon. Orrin G.: 

Opening statement ........................................................................................... 3 

Prepared statement with attachment ............................................................. 37 

Johanson, David S.: 

Testimony .......................................................................................................... 14 

Prepared statement .......................................................................................... 40 

Biographical information ................................................................................. 42 

Responses to questions from committee members ......................................... 52 

Piquado, Paul: 

Testimony .......................................................................................................... 12 

Prepared statement .......................................................................................... 54 

Biographical information ................................................................................. 57 

Responses to questions from committee members ......................................... 67 

Punke, Ambassador Michael W.: 

Testimony .......................................................................................................... 9 

Prepared statement .......................................................................................... 79 

Biographical information ................................................................................. 84 

Responses to questions from committee members ......................................... 95 

Page

IV 

Siddiqui, Ambassador Islam A.: 

Testimony .......................................................................................................... 11 

Prepared statement .......................................................................................... 102 

Biographical information ................................................................................. 106 

Responses to questions from committee members ......................................... 121 

(1) 

NOMINATIONS OF JOSEPH H. GALE, TO BE A 

JUDGE OF THE UNITED STATES TAX COURT; 

MICHAEL W. PUNKE, TO BE DEPUTY UNITED 

STATES TRADE REPRESENTATIVE, WITH THE 

RANK OF AMBASSADOR, EXECUTIVE OFFICE 

OF THE PRESIDENT; ISLAM A. SIDDIQUI, 

TO BE CHIEF AGRICULTURAL NEGOTIATOR, 

WITH THE RANK OF AMBASSADOR, OFFICE 

OF THE UNITED STATES TRADE 

REPRESENTATIVE, EXECUTIVE OFFICE 

OF THE PRESIDENT; PAUL PIQUADO, TO 

BE ASSISTANT SECRETARY FOR IMPORT 

ADMINISTRATION, DEPARTMENT OF 

COMMERCE; AND DAVID S. JOHANSON, 

TO BE A MEMBER OF THE UNITED STATES 

INTERNATIONAL TRADE COMMISSION 

MONDAY, SEPTEMBER 12, 2011 

U.S. SENATE, 

COMMITTEE ON FINANCE, 

Washington, DC. 

The hearing was convened, pursuant to notice, at 4:07 p.m., in 

room SD–215, Dirksen Senate Office Building, Hon. Max Baucus 

(chairman of the committee) presiding. 

Present: Senators Hatch, Grassley, Cornyn, and Thune. 

Also present: Democratic Staff: Russ Sullivan, Staff Director; 

Ayesha Khanna, International Trade Counsel; Chelsea Thomas, 

Professional Staff Member; Michael Smart, International Trade 

Counsel; Tiffany Smith, Tax Counsel; and Gabriel Adler, Senior 

International Trade and Economic Adviser. Republican Staff: Chris 

Campbell, Staff Director; Nick Wyatt, Tax and Nomination Professional Staff Member; Everett Eissenstat, Chief International Trade 

Counsel; Paul Delaney, International Trade Counsel; Rebecca 

Nasca, International Trade Staff Assistant; and Ryika Hooshangi, 

International Trade Counsel. 

2 

OPENING STATEMENT OF HON. MAX BAUCUS, A U.S. SENATOR 

FROM MONTANA, CHAIRMAN, COMMITTEE ON FINANCE 

The CHAIRMAN. The committee will come to order. 

President Woodrow Wilson once said, ‘‘There is no higher religion 

than human service. To work for the common good is the greatest 

creed.’’ 

Today we consider the nominations of five devoted public servants who will work for the common good. Four of you have been 

asked to help move our Nation’s trade agenda. By moving this 

agenda, we will open foreign markets to American products and 

boost our economy, but we must do so in a manner that puts American jobs first. 

That is why it is time to swiftly pass the bipartisan Trade Adjustment Assistance deal and our pending free trade agreements 

with Colombia, Panama, and Korea. And it is why it is time to 

renew our expired trade preference programs. 

Ambassadors Punke and Siddiqui, you know the task ahead. You 

were both voted unanimously out of the Finance Committee last 

year. You have served admirably as recess appointments and have 

been nominated again. 

You both must continue to fight for American workers, entrepreneurs, ranchers, and farmers so that they can help the economy 

grow and create jobs. 

Ambassador Punke, you have been nominated to be the Deputy 

U.S. Trade Representative and Ambassador to the World Trade Organization. We Montanans know that you have the courage, intelligence, and creativity to meet this challenge. 

The WTO is the primary tool through which we can open fastgrowing international markets, including China, India, and Brazil. 

Accessing these markets will grow our exports and increase our 

jobs. But once these countries open their doors, we must prevent 

them from building new barriers that block trade. 

Ambassador Siddiqui, you have been nominated to be the Chief 

Agricultural Negotiator at the USTR. America produces some of 

the world’s best agricultural products, including the top quality 

beef and wheat produced in my home State of Montana, as well as 

all the other agricultural products we produce in our country. 

But some countries erect unscientific barriers to our agriculture 

products. You must do everything in your power to help remove 

those barriers. We must push our trading partners to adhere to 

internationally accepted scientific standards. 

Mr. Piquado, you have been nominated to be the Assistant Secretary for Import Administration at the Department of Commerce. 

You will be tasked with enforcing our Nation’s antidumping and 

countervailing duty laws. These laws help safeguard U.S. jobs and 

help to safeguard commerce by stemming unfairly traded imports. 

You also will be responsible for monitoring trade in key sectors, including lumber, steel, and textiles. 

Mr. Johanson, you have been nominated to be a Commissioner 

of the U.S. International Trade Commission. This comes after 

many years of work here on the Finance Committee. Your years of 

service with this committee will serve you well in your new role. 

And, if confirmed, I know you will enforce U.S. antidumping and 

countervailing duty laws fairly and objectively so that our manufacVerDate Nov 24 2008 16:07 Nov 05, 2012 Jkt 000000 PO 00000 Frm 00006 Fmt 6633 Sfmt 6633 R:\DOCS\76356.000 TIMD
3 

turers and workers can compete here at home. And I know you will 

enforce U.S. intellectual property rights, which are critical to innovative American companies. 

Judge Gale, you have been nominated to serve a second term on 

the U.S. Tax Court. You will draw on your experience to ensure 

that U.S. tax laws are applied fairly and consistently. 

President Clinton first nominated you based on your expertise 

and the reputation you earned as the Finance Committee’s chief 

counsel, and staff director. We have very fond memories of your 

very able work here. President Obama nominated you for a second 

term based on your performance on the court, and the reputation 

you have earned from your peers. 

Once confirmed, I am confident each of you will be successful in 

the positions in which you will serve. I know you will work toward 

that common goal, and I am sure your service to our country and 

your fellow Americans will represent us honorably around the 

globe, help our economy grow, create jobs, and ensure justice here 

at home. 

[The prepared statement of Chairman Baucus appears in the appendix.] 

The CHAIRMAN. Senator Hatch? 

OPENING STATEMENT OF HON. ORRIN G. HATCH, 

A U.S. SENATOR FROM UTAH 

Senator HATCH. Well, thank you, Mr. Chairman. I welcome the 

opportunity today to hear from our trade and tax nominees in this 

open forum. I appreciate your presence here today, as well as your 

willingness to serve. 

I extend a special welcome to Judge Gale and David Johanson. 

Judge Gale has served as a tax court judge since 1996, and before 

that as chief tax counsel of this committee. David Johanson has 

been nominated to be a member of the U.S. International Trade 

Commission. 

David, I see you have brought your family. I am pleased to welcome them to this hearing. And I especially want to thank your 

parents for coming in from Texas and your wife and children for 

supporting you through all the long nights, weekends, and holidays 

you have spent away from them during what is, in my opinion, 

very good government service. 

Mr. Johanson has served the committee for many years, first 

under the leadership of Senator Grassley and now with me as 

ranking member. And, David, we appreciate your 8 years of distinguished service to the committee and wish you well in your new 

endeavors. 

We have accomplished a lot in these 8 years. Under President 

Bush, we renewed Trade Promotion Authority and worked together 

to pass trade agreements with 14 countries, providing a significant 

boost to our U.S. economy. We also used that Trade Promotion Authority to negotiate our trade agreements with Korea, Colombia, 

and Panama. Unfortunately, we are still waiting on President 

Obama to submit these agreements to Congress for a vote. If he 

will do that, we will get them passed. 

The President’s own statistics say that these agreements will create upwards of 250,000 new jobs. With an unemployment rate of 

4 

9.1 percent, I simply cannot understand the President’s continued 

delay, and I am confident that, once the President submits these 

agreements, they will pass Congress with broad bipartisan support. 

The President brought them up again during his speech to the 

joint session last week and indicated this is very, very important 

for him. So I hope he will send them up here. And I suspect the 

Trade Adjustment Assistance will pass, as well, and that will be 

pleasing to him, I am sure. 

There are a number of other vexing trade problems our nominees 

will continue to grapple with. The Doha round of negotiations appears to be on the cusp of total failure. 

China continues to pursue policies that boost their gains at our 

expense and their growth at our expense, and other countries 

around the world continue to negotiate trade agreements that exclude the United States, putting U.S. exporters at a serious disadvantage. 

The President’s response is to set a goal to double exports over 

5 years. Now, I appreciate that goal, but everyone knows that a 

goal without a plan is nothing more than a false hope. In order to 

succeed, you need a solid plan and the right tools to make that 

plan a success. 

That is why the President’s timid interest in renewal of Trade 

Promotion Authority troubles me. History shows that trade agreements boost exports. In 2010, trade with our FTA partners totaled 

$1 trillion and more than one-third of the U.S. merchandise trade 

with the world, according to the International Trade Commission. 

The Commission also reported a merchandise trade surplus with 

more than half of our FTA partners, while continuing to report a 

deficit with our non-FTA partners. The President has filled this 

trade vacuum by latching onto negotiations to create a TransPacific Partnership. Again, I appreciate this laudable goal, but I 

simply cannot understand how the President, and by extension the 

United States, will achieve its goal of concluding the TPP agreement without Trade Promotion Authority. 

The President’s lack of commitment to a vigorous marketopening trade agenda is not only disappointing; it continues to hold 

our workers and economy back from reaching their highest potential. 

I want to thank you, Mr. Chairman. I look forward to hearing 

from our witnesses, and I hope we can put all these people through 

as soon as possible. 

[The prepared statement of Senator Hatch appears in the appendix.] 

The CHAIRMAN. Thank you, Senator. 

I would like to introduce the panel. Our first witness is Judge 

Joseph Gale, who has been nominated to a second term on the U.S. 

Tax Court. 

Our second witness is Michael Punke, who has been nominated 

to be Deputy U.S. Trade Representative in Geneva. Not only is Michael from Montana, he is also a very successful author. He has 

written some terrific books, but used to be my chief tax counsel, as 

well—trade counsel—excuse me. He is so smart, he could have 

been tax counsel, too. 

5 

Mike, I am very proud of you, and I know you will do a great 

job. 

Our third witness is Islam Siddiqui, who has been nominated to 

be Chief Agricultural Negotiator at USTR. 

Our fourth witness is Paul Piquado, who has been nominated to 

be the Assistant Secretary of Commerce for Import Administration. 

And our final witness, David Johanson, is nominated to be a 

commissioner on the U.S. International Trade Commission. 

Before I go any further, I understand that Senator Grassley may 

want to also introduce Mr. Johanson, as well as Senator Cornyn. 

Senator, why don’t you introduce him, too? 

OPENING STATEMENT OF HON. CHUCK GRASSLEY, 

A U.S. SENATOR FROM IOWA 

Senator GRASSLEY. Even though I am introducing Mr. Johanson, 

that does not mean I do not appreciate your nominations for the 

other four, and I come here specifically to congratulate all of you, 

but to particularly point out my strong support for David Johanson 

to be on the International Trade Commission. 

I have known David since March 2003, when he came to work 

for the Finance Committee staff as our international trade counsel, 

and he did that in a position of focusing on agricultural issues. He 

has worked on my staff for almost 8 years. 

Agricultural issues, he knows, are very important to America 

generally and particularly to our export policies. But he also knows 

that Iowa is the largest producer of corn, soybeans, pork, and eggs. 

Also, he knows that Iowa agriculture supports thousands of nonfarm jobs in heavy equipment manufacturing, like John Deere, as 

an example, and that we export a lot of those farm machineries to 

the rest of the world, and that is a large part of our economy. 

And he knows about trade policy, covering the entire agricultural 

sector, that it is a very complicated issue. It involves everything 

from understanding the technicalities of agreements with WTO to 

analyzing the trade policies of other countries that restrict exports 

of U.S. farm products. 

In addition, though, to handling agricultural issues, because he 

is very broad-based in the work he did, David also worked on trade 

matters involving Latin America and the Middle East. The United 

States negotiated free trade agreements with several countries in 

those regions in recent years, and David is able to handle all of 

that. 

He has an ideal combination of intelligence and, most importantly, meticulousness. When you ask him a question, you can be 

sure that he is going to conduct the necessary research to give you 

a precise answer. 

David’s work ethic means that he is often the first one in the office and the last one to leave. He has been devoted to opening new 

markets to U.S. producers and manufacturers, including services. 

It took hundreds and maybe thousands of meetings over the years 

with Iowans and national industry groups who were facing trade 

barriers and needed help fixing it. 

So I think he goes well-prepared to be on the International Trade 

Commission. 

6 

I can also add that he met with numerous foreign delegations to 

discuss U.S. trade negotiations. I can give you an example of David’s determination. He spent many hours over 2 years working on 

the committee’s behalf to reopen Chinese markets and, for me particularly, the imports of porcine protein. These proteins consist of 

blood, plasma, gelatin from pigs. China banned imports of this 

product from the United States for non-scientific reasons. 

China’s policy led to reduced production of these proteins in 

Iowa. A plant in Sioux City was on the verge of being forced to lay 

off workers. But David revisited the issue repeatedly. And eventually, the country relented and resumed imports, and this industry 

returned to a sounder footing. And I can say, without a doubt, in 

that specific instance, David’s efforts made a real difference. 

Another example: I once saw a normally calm ambassador from 

one of our major trading partners get mad at David during a meeting in my office. David’s supposed offense was that he yet again 

brought up one of that country’s barriers to exports of Iowa agricultural products. 

David, of course, was just doing his job. Soon after that, the 

country lifted its trade barrier, and he got out into the field, literally. Every 2 years, I brought a group of foreign ambassadors to 

tour the farms and companies of Iowa. David joined that tour a 

total of four times over that 8 years. 

He made it a point to sit down with every foreign diplomat on 

that trip—and sometimes we had ambassadors from 60 embassies 

in my State for that 5-day period of time—and he had substantial 

conversations with them. 

He is motivated to learn about other countries and their trade 

policies. 

So in closing, it is probably superfluous for me to say it, but it 

is fitting that David is a nominee to the International Trade Commission. Through his work on the Finance Committee, he has 

interacted extensively with the International Trade Commission 

over the years. 

If confirmed, David will bring his studiousness and knowledge to 

the benefit of the Commission. 

Thank you, Mr. Chairman. And congratulations, David. 

The CHAIRMAN. Thank you, Senator. 

Senator Cornyn, would you like to say a word? 

OPENING STATEMENT OF HON. JOHN CORNYN, 

A U.S. SENATOR FROM TEXAS 

Senator CORNYN. I would, very briefly, Mr. Chairman. Thank you 

very much. 

I want to congratulate all of the nominees, and thank you for 

your willingness to serve. I want to say a couple of words about 

David Johanson. I actually know his father better than I know 

David, but have come to learn about and admire David’s professionalism while working here on the Finance Committee. 

But let there be no doubt about it, David is a Texan through and 

through, born in Austin, went to public schools there, went to Austin High School, and then to Stanford. He left for a while and then 

came back to go to the University of Texas Law School. 

7 

His first job on Capitol Hill was in the office of my predecessor, 

Senator Phil Gramm. He started out in Senator Gramm’s mailroom, but he has gone on to do a lot of very important things and 

has a distinguished record, serving, as you have heard, members 

of this committee, Senator Grassley and Senator Hatch, and he certainly deserves our support as the counsel for the International 

Trade Commission. 

Texas is a big State, but Austin is a small world, and David’s father, whom I alluded to earlier, actually taught part of the bar examination when I graduated from law school. And the good news 

is, it must have stuck. I passed. So far, so good. But then, many 

years later, he taught my daughter at University of Texas Law 

School, where she graduated about 3 years ago. 

So I know David’s family is proud of him, and I am proud to support his nomination. 

Thank you, Mr. Chairman, for giving me a few moments to say 

some words. 

The CHAIRMAN. Absolutely. I would now like to turn to the nominees, and I will begin with you, Mr. Gale, for any statement you 

may wish to make. 

Judge GALE. Well, I thank you, Mr. Chairman. And, Mr. Chairman, Ranking Member Grassley—— 

The CHAIRMAN. Suspend for a little bit, if you would, Judge. I 

think I would like to have each of you introduce your families and 

friends here before you make your statements. 

Judge GALE. Certainly. 

The CHAIRMAN. Judge Gale, is there anybody you want to introduce? 

Judge GALE. Yes. I have here today my mother, Charlotte Gale, 

and my brother, Hutter Gale, and they have both driven up from 

Smithfield, VA today to be here. 

The CHAIRMAN. He looks a little bit like you. [Laughter.] 

Judge GALE. Not just a coincidence. They made the same trip 16 

years ago and are hoping for the same outcome. 

Also, here today is my partner of some 24 years, Will Hopkins, 

who has been my bedrock and wisest counsel for that time. 

The CHAIRMAN. Could all of you stand so we could recognize you, 

please? Thank you very much. [Applause.] 

Judge GALE. While I am making introductions, too, I would be 

remiss if I did not note that the chief judge of the tax court is with 

us today. I am very honored that he is here. John Colvin. 

The CHAIRMAN. Good. Yes, we know Judge Colvin. Why don’t you 

stand up, John, so we can recognize you, too? Thank you very 

much. [Applause.] 

Mr. Punke? 

Mr. PUNKE. Thank you, Chairman Baucus. Unfortunately, my 

family is unable to attend today, but they are here in spirit and 

possibly watching on a small computer screen from Geneva, Switzerland. 

So I would like to acknowledge my wife, Traci, and my kids, 

Sophie and Bo, as well as my parents, Marilyn and Butch Punke, 

who are certainly paying attention, if not here physically. So thank 

you. 

8 

The CHAIRMAN. I know how proud they all are. Thank you very 

much. 

Ambassador Siddiqui? 

Mr. SIDDIQUI. Mr. Chairman, I would like to introduce my wife, 

Tabassum, who is here, and my two daughters, Arshi Siddiqui and 

Sophia Siddiqui, and my son, who is going to Harvard Business 

School, so he could not be here, but he is missed. 

Thank you. 

The CHAIRMAN. Well, I know you are all very proud of Mr. 

Siddiqui. Thank you very much. [Applause.] 

Mr. Piquado? 

Mr. PIQUADO. Thank you, Mr. Chairman. 

I would like to introduce my parents, John and Dorothy Piquado, 

who are in from New Hampshire; my wife, Meredith Weaver; and 

my mother-in-law, Ann Weaver. [Applause.] 

The CHAIRMAN. Mr. Johanson? 

Mr. JOHANSON. Yes, Mr. Chairman. I would like to introduce my 

wife, Lynn Johanson, my parents, Stanley and Geraldine Johanson, 

and my two sons, Benjamin and Timothy. 

The CHAIRMAN. Great. Thank you. [Applause.] 

I want to add, as has been already noted, your father is quite an 

esteemed professor at the University of Texas Law School in wills, 

trusts, and estates. And I am thinking of my wills, trusts, and estates law professor when I was in law school, and I am sure, Mr. 

Johanson, you are just as good as mine was. [Laughter.] 

I might add, too, that the University of Texas Law School is wellrepresented on this committee, certainly at the staff level. My staff 

director, Russ Sullivan, is a graduate from University of Texas Law 

School. Tom Reeder on my staff is another graduate. And there are 

other alums on the Republican staff side here, David Johanson and 

also Jim Lyons, who is the new chief counsel to replace—I do not 

know if it is permanent or temporary or what—Mark Prater. He 

is serving in Mark Prater’s absence. 

So I want you to know you are doing well here. 

All right. Let us begin with you, Judge Gale, for any statement 

you wish to make. 

STATEMENT OF JOSEPH H. GALE, NOMINATED TO BE A JUDGE 

OF THE UNITED STATES TAX COURT, WASHINGTON, DC 

Judge GALE. Fine. Thank you. Mr. Chairman, Ranking Member 

Hatch, and other distinguished members of the Finance Committee 

who are not present this afternoon, it is a privilege to be here 

today, and I want to thank you for scheduling this hearing to consider my nomination to a second term on the United States Tax 

Court. 

I am very grateful to President Obama for nominating me and 

to the committee for such prompt consideration of my nomination. 

In that regard, I am especially grateful to the committee staff on 

both sides for their diligent efforts to complete the processing of my 

nomination when they had many other pressing matters to attend 

to. 

It is also with a wonderful sense of nostalgia that I sit in this 

hearing room this afternoon. I spent so many hours here from early 

9 

1985 through 1995, first, as a tax staffer for Senator Moynihan 

and, ultimately, as the committee’s chief tax counsel. 

I was privileged to work on the 1986 Tax Reform Act, which is 

certainly one of the committee’s great achievements, in my estimation, as well as the 1993 Deficit Reduction Act. 

What I can say with confidence is that those were some of the 

most exhilarating days of my professional career, and it is just 

great to be back here in this special room to be reminded of them. 

For the past 151⁄2 years, I have been honored and privileged to 

serve as a judge of the U.S. Tax Court. I have tried to resolve disputes between the taxpayers and the Internal Revenue Service by 

applying the tax laws in the manner intended by Congress. Hopefully, I have made the process a little less daunting for taxpayers 

who are at the tax court without counsel. 

If confirmed by the Senate for another term, I will certainly continue to work diligently to resolve tax controversies fairly and expeditiously in accordance with congressional intent. 

Mr. Chairman, thanks again, and I am certainly happy to answer any questions that the committee may have. 

[The prepared statement of Judge Gale appears in the appendix.] 

The CHAIRMAN. You bet. Thank you, Judge, very much. 

Ambassador Punke? 

STATEMENT OF AMBASSADOR MICHAEL W. PUNKE, NOMINATED TO BE DEPUTY UNITED STATES TRADE REPRESENTATIVE, WITH THE RANK OF AMBASSADOR, EXECUTIVE OFFICE OF THE PRESIDENT, WASHINGTON, DC 

Mr. PUNKE. Thank you, Chairman Baucus, Senator Hatch, and 

distinguished members of the Finance Committee. 

I want to start today by expressing my gratitude to President 

Obama for his confidence in nominating me to serve as Deputy 

U.S. Trade Representative and U.S. Ambassador to the World 

Trade Organization. 

I am also grateful for the bipartisan support expressed for my 

nomination by this committee after my last hearing in 2009 and for 

the ongoing support of U.S. Trade Representative Ron Kirk. 

Mr. Chairman, I will always be appreciative for my first opportunity in public service, a job on your staff, which you gave me in 

1991. 

Mr. Chairman, it has been the greatest honor and privilege of my 

career to serve since March 2010 as an appointee to the position 

for which I am nominated. It is my great hope that I will be able 

to continue to serve in this position, with the advice and consent 

of the Senate. 

As you have remarked, Mr. Chairman, there is much work to do. 

The World Trade Organization stands today as the embodiment of 

the work of generations of Americans in bipartisan support of a 

rules-based trading system; not just any rules, but rules that reflect the American view of the importance of fair rules-based competition. And WTO rules have teeth. 

The WTO is unique among multilateral institutions because 

there are consequences for failure to comply. The WTO provides a 

process for binding dispute resolution and the possibility for WTO 

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10 

ance. Guaranteed access to procedures for enforcing trade rules corrects one of the great shortcomings of the old GATT system. 

The WTO dispute resolution process is not perfect, but it is very 

good, and we have used it aggressively to promote and to defend 

American interests. 

So, as a repository of rules and a forum for resolving disputes, 

the WTO provides one of the bulwarks of our global economy. The 

value of this system has been proved during the financial crisis 

when, with few exceptions, countries declined to resort to the sort 

of protectionist measures that would have deepened the crisis and 

made recovery much harder. 

Despite these positive aspects, there is one area in which the 

WTO is underachieving. To meet its potential, to meet American 

expectations, the WTO must also be effective in its historical role 

as a forum for negotiations to open markets. 

Opening new markets supports new trade opportunities, which is 

another way of saying jobs—jobs for our farmers and ranchers, jobs 

for our workers, companies, and entrepreneurs. 

Certainly, it is no secret that the Doha round of WTO negotiations is floundering. As of next month, WTO members will have 

been engaged in Doha negotiations for a decade, with no end in 

sight. At one level, the diagnosis for what ails the Doha round is 

quite simple. Since negotiations began in 2001, the world has 

changed dramatically. Above all, we have watched the rise of 

emerging economies such as China, India, and Brazil. 

The Obama administration, with the strong support of Congress, 

believes that China and other emerging economies must shoulder 

new responsibilities to reflect this change. So far, they have been 

unwilling to do so. 

Since the 2008 breakdown in Doha negotiations, the United 

States has put forward a number of procedural and substantive 

ideas in an effort to achieve a breakthrough in the negotiations. 

Speaking bluntly, the reticence of a number of our negotiating 

partners has left us with very little to show for those efforts. 

As we approach a biennial WTO ministerial meeting this December, the time has come for both an honest assessment of where we 

stand, and realistic guidance about where we should go. The WTO 

operates by consensus. So it will be vital for all WTO members to 

participate in this effort. 

One thing, though, is clear. What we are doing today in the Doha 

negotiations is not working. That is not a value statement, but a 

simple assessment of the facts. After 10 years, we are deadlocked. 

The ability of the WTO’s collective membership to acknowledge 

the reality of our situation will be the first test of whether we can 

devise a credible path forward. This is important for the Doha negotiations, but also for the broader credibility of Doha as a forum 

for trade negotiations. 

Mr. Chairman, one of the aspects of my job for which I am most 

grateful is the relationship I have enjoyed with members of this 

committee and their staffs. As the administration has negotiated in 

Geneva, we have maintained an ongoing and constructive dialogue 

with Congress. This dialogue has allowed us to project a unified 

and strong position. 

11 

Certainly, this is a well to which I will hope to return often in 

the weeks and months ahead. 

Thank you for considering my nomination. 

[The prepared statement of Mr. Punke appears in the appendix.] 

The CHAIRMAN. Thank you, Mr. Ambassador. 

Ambassador Siddiqui? 

STATEMENT OF AMBASSADOR ISLAM A. SIDDIQUI, NOMINATED TO BE CHIEF AGRICULTURAL NEGOTIATOR, WITH THE 

RANK OF AMBASSADOR, OFFICE OF THE UNITED STATES 

TRADE REPRESENTATIVE, EXECUTIVE OFFICE OF THE 

PRESIDENT, WASHINGTON, DC 

Mr. SIDDIQUI. Thank you, Chairman Baucus, Ranking Member 

Hatch, and members of the Finance Committee. 

First, I would like to thank President Obama for nominating me 

to serve as the Chief Agricultural Negotiator with the Office of the 

U.S. Trade Representative; of course, also, Ambassador Kirk for his 

continuing support. 

I am also especially grateful for the bipartisan support of my 

nomination by members of this committee after my last hearing in 

November 2009. 

Since March 2010, it has been an honor and privilege for me to 

serve as the chief agricultural negotiator. If confirmed, I look forward to serving in this position with humility and dedication. 

My entire academic and professional career has centered on agriculture, ranging from research after receiving my Ph.D. from the 

University of Illinois to 28 years of service with the California Department of Food and Agriculture. 

As a result, I am acutely aware of the challenges related to agriculture, as well as the importance of agricultural exports to a longterm economic outlook. Agricultural exports are particularly critical 

to supporting jobs and revitalizing rural communities. According to USDA’s Economic Research Service, every $1 billion 

in agricultural exports supports around 8,400 jobs both on the farm 

and off the farm. 

The good news is that agricultural exports continue to grow. Last 

year, U.S. agricultural exports increased 17 percent over the 2009 

number. Based on the first 6 months of this year alone, we are on 

track to set a record of $137 billion for 2011. These numbers reflect 

the ingenuity and productivity of U.S. farmers and ranchers, who 

are able to out-compete their counterparts in foreign countries, despite higher costs of inputs, as well as labor. 

The adoption of new technologies and state-of-the-art farm management practices has been critical to this extraordinary success of 

our farmers and ranchers. We can build on this success to achieve 

even more by diligently working to remove trade barriers and open 

new markets. 

I look forward to continued and ongoing consultation with this 

committee in our efforts to remove nontariff barriers as, Senator, 

you mentioned in your opening remarks, which our farmers and 

ranchers face around the world. 

While dialogue and diplomacy with our trading partners can deliver significant results and must be tried first, in some cases, we 

have to be more aggressive in our approach. In these instances, we 

12 

must exercise our rights under the WTO dispute resolution process 

and file complaints to remove non-science-based barriers and address WTO violations. 

I am also committed to working in close coordination with other 

U.S. agencies to develop and achieve these goals. 

As Ambassador Punke mentioned, the Doha negotiations are facing a difficult moment, and the gaps in agriculture, as well as nonagriculture, market access and services are wide. Especially focusing on agricultural negotiations in Doha, we are being asked to 

make significant concessions in the first two pillars of agricultural 

negotiations; namely, domestic support and export competition. To 

balance these concessions, a final agreement would have to provide 

new market access for U.S. agricultural products in the third pillar, 

which is the pillar of market access. 

Whatever the future direction of the Doha negotiations, I am a 

strong advocate of achieving new market opportunities for our 

farmers and ranchers, especially including the markets of emerging 

economies. 

Mr. Chairman, the last 17 months have afforded me the opportunity to work on a number of trade issues to promote U.S. agriculture, including the resumption of U.S. poultry exports to Russia 

and negotiating the Brazil cotton framework agreement. 

If confirmed, I look forward to continuing to work towards implementing President Obama’s trade agenda under the leadership of 

Ambassador Kirk, as well as the outstanding USTR team. 

I also look forward to working closely with the members and the 

staff of this committee on the many challenges and opportunities 

that we face in agricultural trade. 

Thank you once again, Mr. Chairman, for your consideration of 

my nomination. 

[The prepared statement of Mr. Siddiqui appears in the appendix.] 

The CHAIRMAN. Thank you, Mr. Ambassador, very much. 

Mr. Piquado, you are next. 

STATEMENT OF PAUL PIQUADO, NOMINATED TO BE ASSISTANT SECRETARY FOR IMPORT ADMINISTRATION, DEPARTMENT OF COMMERCE, WASHINGTON, DC 

Mr. PIQUADO. Thank you, Chairman Baucus and Ranking Member Hatch. I am deeply honored to be here today as President 

Obama’s nominee to be Assistant Secretary of Commerce for Import Administration. 

I am thankful to have had the privilege to serve in the Import 

Administration as the Deputy Assistant Secretary for Policy for the 

past 11⁄2 years, and I am humbled by the confidence that the President has placed in me in nominating me for this position. 

I would also like to thank former Secretary of Commerce and 

now Ambassador Gary Locke, and Under Secretary Francisco 

Sanchez, for their leadership and support of my nomination, as 

well as members of the committee, and committee staff with whom 

I have met in the past few weeks. 

I would also like to publicly thank, and acknowledge my parents, 

John and Dorothy Piquado, who, as school teachers, instilled in me, 

at a very young age, an interest in international affairs and public 

13 

service; my grandfather, Carl Piquado, who, with my grandmother, 

Alice, raised six children, working as a stone mason; my sister, 

Laura; and especially my wife, Meredith Weaver, for her tremendous support and love. 

Many others, including my extended family and friends and colleagues, too numerous to name, many of whom are here today, also 

deserve recognition for their support and to whom I am forever 

grateful. 

Mr. Chairman, if confirmed, I will have the great privilege of 

leading the dedicated team of public servants at the Import Administration. 

The Import Administration plays a critical role in helping to ensure that America’s businesses and workers have the opportunity 

to compete against their foreign counterparts on a level playing 

field by remedying distortions in the market that are caused by the 

unfair dumping or subsidization of products sold in the United 

States. 

The agency also plays an increasingly important role in maintaining important export markets for U.S. firms, both by helping 

to ensure that foreign trade remedy actions targeting U.S. exports 

are conducted transparently and in accordance with international 

rules, and by administering the foreign trade zones program. 

These activities are critically important to help safeguard jobs 

and support the competitive strength of American industry, both in 

the United States and overseas. 

Given this, if confirmed, I will be guided by one single objective: 

to ensure that the laws and programs within the jurisdiction of the 

Import Administration are applied and enforced as fully and 

robustly as possible in a manner that is as open and transparent 

as possible. The robust enforcement of the trade laws is one of the 

pillars of President Obama’s National Export Initiative, which is an 

initiative that is designed to double U.S. exports within 5 years in 

support of millions of American jobs. 

The President has said that, when the playing field is even, nobody can beat us. I agree. America’s businesses and workers are 

among the most productive, skilled, and educated in the world, and 

they do not fear competition. All they want is to know that everyone, including their foreign competitors, plays by the same rules 

and that free trade is also fair trade. 

The trade remedy laws, which were first created by Congress 

nearly a century ago, provide parties that demonstrate that they 

have been subject to unfair trade with a reliable and impartial 

mechanism to help achieve this goal. 

If confirmed, I will work every day to ensure that the AD/CVD 

laws are vigorously applied whenever and wherever the evidence 

demonstrates that foreign governments or firms have unfairly subsidized or dumped products sold in the United States. 

I am particularly motivated to take up this important role, in 

part, because I have spent a good portion of my professional career 

working on international trade matters, and I understand the very 

real impact that unfair trade can have on the economy and jobs 

and communities across the country. 

As the principal advisor to Governor Rendell on trade and investment policy, I had the opportunity to help develop strategic guidVerDate Nov 24 2008 16:07 Nov 05, 2012 Jkt 000000 PO 00000 Frm 00017 Fmt 6633 Sfmt 6633 R:\DOCS\76356.000 TIMD
14 

ance on an array of international trade and economic policy matters intended to promote job creation and ensure that Pennsylvania’s businesses and workers could compete and win in the global 

economy. This included working to assist firms that were suffering 

from the effects of unfairly traded goods. 

In addition, in my current position, I have had the opportunity 

to help oversee the development of policies governing the administration of the AD/CVD statutes, and working with the Office of the 

U.S. Trade Representative to help develop the government’s position in ongoing trade remedy negotiations. 

Before entering government service, I also had the opportunity to 

advise parties on a variety of trade matters, including, among other 

things, working on WTO disputes. I believe that this experience 

will greatly assist me in performing my responsibilities as assistant 

secretary, should I be confirmed. 

In conclusion, Mr. Chairman, Ranking Member Hatch, I would 

like to thank you and the other members of the committee for the 

great privilege of being considered by this body for this important 

position. If confirmed, I look forward to working closely with you 

to ensure that trade remedy laws are transparently and vigorously 

enforced. 

Thank you. And I would be happy to answer any questions you 

may have. 

[The prepared statement of Mr. Piquado appears in the appendix.] 

The CHAIRMAN. Thank you, Mr. Piquado, very much. 

Mr. Johanson, you are next. 

STATEMENT OF DAVID S. JOHANSON, NOMINATED TO BE A 

MEMBER OF THE UNITED STATES INTERNATIONAL TRADE 

COMMISSION, WASHINGTON, DC 

Mr. JOHANSON. Yes. I would like to thank, first of all, Senator 

Grassley and Senator Cornyn for their kind remarks today on my 

behalf. 

Chairman Baucus, Ranking Member Hatch, and other members 

of the Finance Committee, I am honored to appear before you today 

as the President’s nominee for the position of Commissioner on the 

U.S. International Trade Commission. 

I seek this position after having spent the past 8 years serving 

as international trade counsel on this committee, currently under 

Ranking Member Hatch and formerly under prior chairman and 

ranking member Grassley. 

I would like to thank Senator Hatch and Senator Grassley for 

providing me with the tremendous opportunity to work for them. 

I consistently found my job at the Finance Committee interesting 

and challenging. I attribute my positive experiences of the past several years primarily to the two Senators to whom I have reported 

on this committee. 

I appreciate, as well, having had the opportunity to work with 

Senator Baucus and his Finance Committee staff. 

I would like to express my gratitude to Republican Leader 

McConnell for his support of my nomination. 

15 

I would, also, of course, like to thank my wife, Lynn, and my 

other family members for their understanding and support over the 

years. 

While my experience in the Senate has been positive, I look forward, if confirmed, to new challenges as a member of the U.S. 

International Trade Commission. I am confident that my background prepares me well for the position of Commissioner. 

I have approximately 15 years of experience in the field of international trade law. Much of my work has directly involved the 

Commission. While employed in the Senate, I have participated in 

the drafting of requests to the Commission for section 332 investigations, miscellaneous tariff bill reports, and other technical trade 

analyses. Many of these requests have involved agricultural trade, 

an area on which I have focused throughout my career. 

The resulting reports and data prepared by the Commission have 

been integral to my work as a member of the Finance Committee 

staff. 

I formerly practiced international trade law at a law firm in 

Washington, DC, and, in that capacity, I had the opportunity to 

learn firsthand the Commission’s role in administering the trade 

remedy laws. Moreover, the Commission maintains the harmonized 

tariff schedule of the United States, which I have utilized on a regular basis from my earliest days of practicing law to the present. 

I have often communicated with the Commission on matters pertaining to the harmonized tariff schedule. Given my frequent interactions with the Commission, I am familiar with the functions of 

this agency and the laws and regulations administered by it. 

Of all my qualifications, I believe that my tenure on the staff of 

the Finance Committee would, in particular, benefit me as a Commissioner. 

Through my work on this committee, I know well the importance 

that Congress places on the activities of the Commission. I recognize that Congress is principally interested in two statutory functions of the Commission; first, the Commission’s administration of 

the trade remedy laws and, second, its role in providing Congress 

with independent analysis and information on matters relating to 

international trade. 

If confirmed, I assure the Finance Committee that I will administer the trade remedy laws in accordance with congressional intent. I will apply these laws in a fair and objective manner, and 

my decisions will be based upon the facts. 

I will also be responsive to requests from Congress concerning 

trade information, trade analysis, and related matters. 

It has been a privilege to serve in the position of international 

trade counsel to the Finance Committee. If confirmed, I will miss 

this committee and my colleagues here. I look forward, however, to 

the possibility of continuing to work with the Finance Committee 

as a Commissioner on the U.S. International Trade Commission. 

I thank the Finance Committee for its consideration of my nomination. 

[The prepared statement of Mr. Johanson appears in the appendix.] 

The CHAIRMAN. Thank you, Mr. Johanson. 

16 

I would like to now ask some obligatory questions of each of the 

five of you, beginning with you, Mr. Gale. Actually, I will ask the 

same question and go down the table here. 

First, is there anything that you are aware of in your background 

that might present a conflict of interest with the duties of the office 

to which you have been nominated? 

Judge GALE. No, Mr. Chairman. 

The CHAIRMAN. Ambassador Punke? 

Mr. PUNKE. No, Mr. Chairman. 

Mr. SIDDIQUI. No, Mr. Chairman. 

Mr. PIQUADO. No, Mr. Chairman. 

Mr. JOHANSON. No, Mr. Chairman. 

The CHAIRMAN. Thank you. Do you know of any reason, personal 

or otherwise, that would in any way prevent you from fully and 

honorably discharging the responsibilities of the office to which you 

have been nominated? 

Judge GALE. No, sir. 

Mr. PUNKE. No. 

Mr. SIDDIQUI. No, Mr. Chairman. 

Mr. PIQUADO. No, Mr. Chairman. 

Mr. JOHANSON. No. 

The CHAIRMAN. Thank you. Do you agree, without reservation, to 

respond to any reasonable summons to appear and testify before 

any duly constituted committee of the Congress, if you are confirmed? 

Judge GALE. Yes, I do. 

Mr. PUNKE. Yes. 

Mr. SIDDIQUI. Yes. 

Mr. PIQUADO. Yes, Mr. Chairman. 

Mr. JOHANSON. Yes. 

The CHAIRMAN. Thank you. I will start with you, Mr. Punke. 

How are we going to get WTO jump-started here? What do we 

have to do? 

I mean, the goal is pretty clear. And I also want to commend you 

for standing firm as a representative of the United States. That is, 

a lot of other countries, developing countries, including Pascal 

Lamy, Director of WTO, have been pushing the United States to 

take positions which I think, in the whole scope of the matter, are 

counter to the best interests of the United States, and I thank you 

for standing up for the United States. 

But we have FTAs, hopefully, sent up by the administration to 

the Congress so we can pass them this year, and the TAA is part 

of the mix. But the bigger question is, how do we get going here? 

I mean, if the goal is to promote more trade and lower the barriers worldwide, what are some of the thoughts you might have as 

to how we proceed? 

Mr. PUNKE. Well, thank you for the question, Mr. Chairman. 

I think I will focus my answer on the area in which I had the 

most responsibility, which is the area of WTO, and especially the 

Doha negotiations. 

I think, when it comes to the Doha negotiations, the first thing 

that is really critical is that all members of the WTO admit right 

now that what we are doing is not working. 

17 

We have been engaged in this Doha negotiation now for coming 

up on 10 years, and there is, unfortunately, no evidence right now 

that we are succeeding in making the progress that we want to 

make. 

I think what that leads to is a question of why we are not making progress. And in a negotiation as complex as Doha, which essentially covers the entire global economy, you have 153 members 

participating, there are lots of difficult issues, but the most common theme, in terms of the deadlock that we are seeing, is a lack 

of agreement on the role of—the appropriate role for emerging 

economies. 

And as you know, Senator Baucus, our view, very strongly held, 

is that the role of the emerging economies must reflect the role 

that they now play in the global economy. And so, I think we need 

to have a very honest assessment of where we are at, all of us. I 

think we need to look with a very open mind at alternative pathways forward, and I think that the work that we are doing this fall 

leading up to the ministerial meeting in Geneva in December gives 

us an opportunity to really turn the page on Doha. 

And one of the things that will be most essential, in that context, 

is finding a way to get out of the current trap we are in, where we 

really negotiate to the last common denominator, and the intransigents in the WTO are really setting the tone. 

We need to find ways where we can reverse that, and have those 

countries that are most interested in opening markets set the tone. 

And so, that is an easy thing to say and a difficult thing to do, but 

I think that is our challenge, especially between now and December. 

The CHAIRMAN. So how do we do all that? I know it is a tall 

order. You cannot really answer it all in the short period we have 

here. But some have suggested Doha-lite. Some have suggested we 

somehow get around this requirement of consensus by various 

countries—another group of countries agreeing. 

Some have suggested that the United States should provide more 

leadership. And, I think, it is still true that most countries around 

the world still look to the United States for leadership, and it is 

an opportunity here, although it might be more difficult, to exercise 

that leadership. 

Your thoughts? 

Mr. PUNKE. Well, let me begin with the last piece of that first, 

on U.S. leadership, because I could not be more confident and 

proud of the role that the U.S. has played in leading in the Doha 

negotiations. 

We have been very clear about the shortcomings that we see 

with the package that is currently on the table. We have been creative in terms of our willingness to explore alternative processes. 

We have been flexible, when appropriate, in our substantive positions. 

But one piece of guidance from this committee, Senator Baucus, 

that I took to heart is the idea that no deal is better than a bad 

deal. 

And some of those who want to talk about a lack of U.S. leadership have a different view, and their view is that a bad deal is better than no deal. And so, as long as I am right about what I think 

18 

this committee wants me to do and what this Congress wants me 

to do in seeking a good deal, we will continue to push for that. And 

there is a difference, a very profound difference, I think, between 

leading and conceding. 

The CHAIRMAN. I appreciate that. My time has expired. But at 

some point, I guess it is important to evaluate some version of 

Doha-lite, some version of another group of countries, because the 

current consensus requirement makes things a bit difficult, to say 

the least, and we are not getting anywhere so far. But we will address that later. 

Senator Hatch? 

Senator HATCH. Thank you, Mr. Chairman. 

I intend to support all five of you. I just want to compliment you 

on being willing to serve our government and do what you are 

doing. You are all experts in your fields, and I am just very appreciative of your willingness to serve. 

Let me just say a few comments, and then I will end. 

The President said we should pass trade deals that will level the 

playing field for American companies. Later, he said that, ‘‘The 

only thing that is holding them back is politics. The only thing preventing us from passing these bills is the refusal by some in Congress to put country ahead of party. That is the problem right now. 

That is what is holding this country back. That is what we have 

to change.’’ 

Now, to all of you, I am perplexed by this statement. First, I do 

not understand how the President can say that Congress is the 

only thing keeping us from passing these trade agreements. You 

and I both know that under TPA, the Trade Promotion Authority, 

Congress cannot vote on these agreements until the President submits them to Congress. 

If you do not believe me, take a look at this chart from the U.S. 

Trade Representative’s own website. It is titled ‘‘How a Trade 

Agreement Moves Through Congress,’’ and it clearly states that the 

next step in the process is for the President to submit trade agreements. 

[The chart appears in the appendix on p. 39.] 

Senator HATCH. Now, I do not understand how the President can 

blame Congress, as he did a week or so ago, for not voting on 

agreements that he has not sent to us. We cannot do it until he 

does. 

I also do not understand who makes up the ‘‘some in Congress’’ 

the President is referring to. Now, Senator McConnell and I sent 

a letter to the President, as early as this February, expressing our 

support for these agreements. 

So these are things that bother me a great deal. Let me just say 

that, Ambassador Punke, I would like to commend your leadership 

and advocacy for American interests in Geneva as our representatives to the WTO in Geneva. 

Standing firm, and insisting on an ambitious and balanced agreement is critical to ensuring that any WTO deal receives congressional support. And, as the Doha round teeters on the brink of collapse, I am very concerned about our delay in moving the pending 

free trade agreements and the President’s timid support for trade 

negotiating authority. 

19 

Every president, since FDR, has sought trade-negotiating authority from Congress, and the need for such authority, it seems to me, 

is obvious. Without it, we cannot pass good agreements to open the 

foreign markets for our exports. 

Now, President Clinton, in seeking this authority, said, ‘‘The case 

for extending fast track is plain. This legislation will give us the 

authority to increase access to foreign markets, especially in the 

fastest-growing regions of the world. If we do not seize these opportunities, our competitors surely will. An ‘America last’ strategy is 

unacceptable.’’ 

Well, I just say that hopefully that somebody is listening down 

there at the White House, and hopefully they will send those three 

trade agreements up. I personally believe the President has insisted, after the Trade Representative said they would be brought 

up before August, these three trade agreements, the President is 

insisting on Trade Adjustment Assistance, and I have every reason 

to believe that that will pass the Senate, and I believe it will pass 

the House, as well. 

So I do not see any reason to delay this any longer, and I just 

hope that, as you serve, you might be able to help the White House 

to see that this is the way we have to move. And, hopefully, we will 

get those trade agreements up here and vote on them and prove 

that we really are serious about dealing with our friends in South 

Korea, Columbia, and Panama, and in creating as many as a quarter of a million jobs in the process. 

Mr. Chairman, I am going to support all five of these, and I just 

want to commend them again for being willing to serve and having 

the expertise that they have and being the good people that they 

are. 

Thank you. 

The CHAIRMAN. Thank you, Senator. Well said. They are all five 

very fine people, will be confirmed, and will serve very well. 

I am quite confident that this Congress will, even this year, pass 

the free trade agreements. 

Senator HATCH. I hope you are right. 

The CHAIRMAN. As well as Trade Adjustment Assistance or its 

ancillary agreements. The trust is there on both sides to get it 

done, and, as long as we just keep moving along, I think we will 

get them passed. So, thank you very much. 

I would like to ask you, Judge Gale, a question. You have been 

faced with lots of tax decisions. What advice do you have? 

A lot of us talk about tax reform. It is getting higher and higher 

and higher on the agenda here—getting to be a higher priority. The 

code is so complex. Some talk about the need to change the code 

to increase American competitiveness and address equity and so 

forth. 

Just any off-the-top-of-your-head thoughts? 

Senator HATCH. I am going to have to leave. Good luck on that 

question. [Laughter.] 

I am going to be very interested in reading what your response 

is, but that is a good question by the chairman, and it is one that 

we are all concerned about, and it is going to take a lot of answers 

to come up with what we need to do. But I appreciate you. 

The CHAIRMAN. Thank you. 

20 

Senator HATCH. If you will excuse me, I had better head out. 

The CHAIRMAN. Thank you, Senator, very much. I appreciate 

your presence. Thank you very much. 

Judge GALE. Well, Mr. Chairman, I am sure you know that, sitting where I sit, I am reluctant to venture too far into the field of 

tax policy. It is not my responsibility really to be opining on that. 

I would say that, as I said in my opening remarks, I think that 

the Tax Reform Act of 1986 had a lot of attributes that might be 

worth looking at again, in terms of base-broadening and perhaps 

trading specific tax expenditures or breaks in exchange for lower 

rates. 

A great deal of simplification came in that bargain as well. And 

maybe I am a product of my own experience, but I do think that 

the 1986 Act is a useful touchstone. 

Beyond that, I would have a suggestion which I am afraid will 

be taken as pedestrian, but I will make it nonetheless. I think it 

would be advantageous to the system to get back to the days of 

committee reports. It is with increasing frequency—and I certainly 

am not second-guessing the process where major tax legislation has 

been produced in recent years without reports from the Finance 

Committee, or the Ways and Means Committee—but those reports 

are extremely helpful, from where I sit, in terms of making sure 

that we are getting congressional intent or applying the laws in the 

way that the Congress intended. 

So I make that somewhat pedestrian suggestion. I know that 

there are forces at work that have made that more difficult in recent years, but I would make that suggestion, since you asked. 

The CHAIRMAN. It is an excellent suggestion. This Congress, unfortunately, in the last several years, has moved away from legislating, and moved a bit more toward messaging. Often, bills that 

are introduced, amendments that are introduced, are not examined 

thoroughly. 

We do not have markups as frequently now as we once did. So 

we spend less time digging down into, what is this measure all 

about, with less opportunity to make it better with amendments, 

less opportunity to just try to do what we are elected to do: that 

is, legislate in the best interest of the country. 

And, as a consequence, I think we have done ourselves a significant disservice, because (A) a lot of members of the Congress, I 

think, do not really understand what they are talking about, at 

least all this messaging, and (B) when amendments are passed, 

they are not as well-understood as before. 

I will add to that that the country, I think, is a little bit perplexed, because there is a lot of messaging, a lot of talking, rather 

than acting. 

Also, it encourages partisanship. The more you message around 

here, the more we start to criticize the other person’s point of view 

and not dig down into what the right policy should be. And a committee report necessarily means that we have legislated something, 

the committee has passed some legislation out of the committee, 

there has been a markup, which, again, would mean that we are 

taking our job more seriously, and so forth. 

I am hopeful that we can reverse this trend which I have just 

mentioned. I am going to do my part to try to get this outfit here 

21 

to slow down a little bit, be a little less partisan—in fact, much less 

partisan—and let us have hearings that are honest hearings; not 

to say that others are dishonest, but hearings where the witnesses 

are not partisan witnesses, but they are, rather, witnesses who 

know the subject matter very well. 

That encourages Senators to ask better questions, and it discourages Senators from pontificating if the witnesses are very high caliber, the witnesses are not partisan. It is an opportunity for Senators to learn a lot and for the public to learn a lot. 

But your pedestrian suggestion about committee reports is a very 

good one. It opens up a deeper question, which, as I said, should 

be addressed. But thank you very much for that. 

Judge GALE. Thank you, Mr. Chairman. 

The CHAIRMAN. Does anybody have anything to add? Here is 

your opportunity. Any subject. 

Ambassador Punke, anything you want to add? 

Mr. PUNKE. No. I think I will quit while I am ahead. [Laughter.] 

The CHAIRMAN. Well, there is a big assumption behind that 

statement. [Laughter.] 

Ambassador Siddiqui? 

Mr. SIDDIQUI. Mr. Chairman, since you asked, I would just mention that removal of trade barriers is one of the highest priorities 

we have, and, also, enforcement of WTO commitments by our trading partners, and we continue to focus on these issues. 

And, also, on Russia’s accession negotiations in Geneva, this has 

been a primary focus for us to make sure that the current sanitary 

and phytosanitary problems we have faced—— 

The CHAIRMAN. Right. 

Mr. SIDDIQUI [continuing]. In recent years, make sure that we 

get—— 

The CHAIRMAN. How much progress are we making with Russia? 

Mr. SIDDIQUI. We are in the middle of those negotiations, Mr. 

Chairman, and we are focused on three fronts. One is, of course, 

a more robust market access for our products like beef and pork 

and poultry; number two, making sure that Russia commits—as 

they become a member of the WTO—they commit to comply with 

the WTO’s sanitary and phytosanitary agreement; and, number 

three, on their domestic support, these negotiations are in a very 

sensitive stage as we talk and, hopefully, that working party report 

will show that sometime later this fall. 

The CHAIRMAN. Well, thank you very much. That encourages me. 

Be firm—fair, but firm. As Ambassador Punke said, no deal is better than a bad deal, and that is a basic principle this committee, 

I think, abides by. 

We want to reach deals, reach agreements, but make sure they 

are fair. 

Mr. Piquado, any thoughts? 

Mr. PIQUADO. Thank you, Mr. Chairman. 

I would just say that, if confirmed, I look forward to vigorously 

enforcing the trade remedy laws in support of the President’s National Export Initiative, and to working with you and other members of the committee on trade remedy matters. 

The CHAIRMAN. Mr. Johanson? 

22 

Mr. JOHANSON. Yes, Mr. Chairman. First of all, it has been a 

great privilege to work here at the committee for the past 8-plus 

years. 

I would like to assure you that, if I am confirmed as a Commissioner on the U.S. International Trade Commission, I will administer the trade remedy laws in a fair and objective manner, and in 

accordance with statutory requirements, and I will take my statutory obligations very seriously. 

The CHAIRMAN. Well, I know that you will. That is not going to 

be a question at all. I just wish you very, very good luck, as these 

are not easy jobs, particularly in these times. We have no choice 

but to just keep doing the best we can, keep a positive and constructive attitude in all of the jobs that we have, just keep going. 

We have no other choice, and I know you will do that. And I, 

again, thank you very much for your service and thank your families for your service, because this is all teamwork. But thank you 

very much. 

We will try to get your nominations up and confirmed as quickly 

as possible. Thank you very much, and good luck. 

The hearing is adjourned. 

[Whereupon, at 5:10 p.m., the hearing was concluded.] 

(23) 

A P P E N D I X 

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