U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

For sale by the Superintendent of Documents, U.S. Government Printing Office

Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800

Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001

62–568—PDF 2009

S. HRG. 111–819 

NOMINATION OF RONALD KIRK 

HEARING 

BEFORE THE

COMMITTEE ON FINANCE 

UNITED STATES SENATE 

ONE HUNDRED ELEVENTH CONGRESS 

FIRST SESSION 

ON THE

NOMINATION OF 

RONALD KIRK, TO BE U.S. TRADE REPRESENTATIVE, 

WITH THE RANK OF AMBASSADOR EXTRAORDINARY 

AND PLENIPOTENTIARY, EXECUTIVE OFFICE OF THE PRESIDENT 

MARCH 9, 2009 

( 

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 

BLANCHE L. LINCOLN, Arkansas 

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 

CHUCK GRASSLEY, Iowa 

ORRIN G. HATCH, Utah 

OLYMPIA J. SNOWE, Maine 

JON KYL, Arizona 

JIM BUNNING, Kentucky 

MIKE CRAPO, Idaho 

PAT ROBERTS, Kansas 

JOHN ENSIGN, Nevada 

MICHAEL B. ENZI, Wyoming 

JOHN CORNYN, Texas 

RUSSELL SULLIVAN, Staff Director 

KOLAN DAVIS, Republican Staff Director and Chief Counsel 

(II) 

C O N T E N T S 

OPENING STATEMENTS 

Page 

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

on Finance ............................................................................................................ 1 

Grassley, Hon. Chuck, a U.S. Senator from Iowa ................................................. 3 

Cornyn, Hon. John, a U.S. Senator from Texas .................................................... 5 

ADMINISTRATION NOMINEE 

Kirk, Ronald, nominated to be U.S. Trade Representative, with the rank 

of Ambassador Extraordinary and Plenipotentiary, Executive Office of the 

President, Washington, DC ................................................................................. 6 

ALPHABETICAL LISTING AND APPENDIX MATERIAL 

Baucus, Hon. Max: 

Opening statement ........................................................................................... 1 

Staff memorandum concerning review of nominee’s tax returns ................. 17 

Cantwell, Hon. Maria: 

Prepared statement .......................................................................................... 20 

Letter to President Obama from Michael Kantor, Carla Hills, and William E. Brock, dated March 6, 2009 ............................................................ 22 

Cornyn, Hon. John: 

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

Enzi, Hon. Michael B.: 

Prepared statement .......................................................................................... 24 

Grassley, Hon. Chuck: 

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

Hutchison, Hon. Kay Bailey: 

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

Kerry, Hon. John F.: 

Prepared statement .......................................................................................... 26 

Kirk, Ronald: 

Testimony .......................................................................................................... 6 

Prepared statement .......................................................................................... 28 

Biographical information ................................................................................. 32 

Responses to questions from committee members ......................................... 44 

Roberts, Hon. Pat: 

Prepared statement .......................................................................................... 150 

Snowe, Hon. Olympia J.: 

Prepared statement .......................................................................................... 151 

COMMUNICATION

U.S.-China Business Council .................................................................................. 153 

(III) 

(1) 

NOMINATION OF RONALD KIRK, TO BE 

U.S. TRADE REPRESENTATIVE, WITH THE 

RANK OF AMBASSADOR EXTRAORDINARY 

AND PLENIPOTENTIARY, EXECUTIVE 

OFFICE OF THE PRESIDENT 

MONDAY, MARCH 9, 2009 

U.S. SENATE, COMMITTEE ON FINANCE, Washington, DC. 

The hearing was convened, pursuant to notice, at 5:03 p.m., in 

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

(chairman of the committee) presiding. 

Present: Senators Wyden, Stabenow, Cantwell, Nelson, Carper, 

Grassley, Hatch, Snowe, Roberts, Enzi, and Cornyn. 

Also present: Democratic Staff: Bill Dauster, Deputy Staff Director and General Counsel; Amber Cottle, International Trade Counsel; Ayesha Khanna, International Trade Counsel; and Mary 

Baker, Detailee. Republican Staff: Kolan Davis, Staff Director and 

Chief Counsel; Stephen Schaefer, Chief International Trade Counsel; David Ross, International Trade Counsel; and Nick Wyatt, Tax 

Staff Assistant. 

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

FROM MONTANA, CHAIRMAN, COMMITTEE ON FINANCE 

The CHAIRMAN. The committee will come to order. 

In June of 1944, as international commerce began to envision the 

world that would emerge from World War II, President Franklin 

Roosevelt said, ‘‘Commerce is the lifeblood of a free society. We 

must see to it that the arteries which carry that bloodstream are 

not clogged again, as they have been in the past, by artificial barriers created through senseless economic rivalries.’’ 

Slowly, a plan for global economic reemergence took shape. Far 

from the battlefield, economists and strategists in Washington 

drafted a document called ‘‘Proposals for the Expansion of Trade 

and Employment.’’ Published in 1945, the report was a blueprint 

for dismantling the protectionism that had crippled the international economy for decades. The report laid the foundation for 

the international trading system that would sustain the global 

economy for the next 60 years. 

Mayor Kirk, as President Obama’s nominee for U.S. Trade Representative, you will soon have the pen to draft a new international 

economic blueprint. This new blueprint will be no less historic and 

no less important. In many ways, your task is even more chalVerDate Nov 24 2008 13:23 Jan 31, 2011 Jkt 000000 PO 00000 Frm 00005 Fmt 6633 Sfmt 6633 R:\DOCS\62568.000 TIMD
2 

lenging. America emerged from World War II as the clear military 

victor, to be the world’s strongest economic engine by far. 

In the current global economic crisis, America is not the victor, 

but its first victim. Some in foreign lands see America as the main 

culprit. Our economy is in recession, our consensus to advance 

international trade is frayed, and our faith in the international 

trading system is badly shaken. 

New economic powers are emerging. Historical trading powers 

are on the decline; at least, by comparison they are not as strong 

as they once were. Economies that followed the letter and the spirit 

of international trade rules are battered, and foes of open trade are 

emboldened to take action that could undermine the global trading 

system for years to come. 

Your job will be to fight a rear-guard action to combat new barriers to trade, and your job will also be to chart a course forward 

to free and open trade. I believe that you are the best man for the 

job. 

Now, this committee’s vetting process revealed mistakes in your 

tax returns. These are regrettable, but I believe honest, mistakes. 

You have acted to remedy them, and now you must focus on succeeding in the position for which the President has nominated you. 

This year, American trade policy is off to a good start. In the 

Economic Recovery Act, Congress worked with the administration 

to pass a landmark expansion of Trade Adjustment Assistance. 

Passing TAA was a model of bipartisan cooperation. Senator Grassley, Chairman Rangel, Congressman Camp, and I worked to craft 

the agreement. Senators Snowe, Cantwell, Stabenow, Bingaman, 

and Rockefeller made valuable contributions. 

I am committed to continuing that model of cooperation and engagement. I plan to introduce bipartisan, comprehensive Customs 

reauthorization legislation. I plan to introduce bipartisan legislation to give the administration the tools and resources it needs to 

enforce our trade agreements and level the playing field for American workers, firms, farmers, and ranchers. And I plan to introduce 

legislation to reform and reauthorize our preference programs in a 

way that will ensure that the world’s poorest countries can trade, 

grow, and prosper. 

I also want to find a way to begin consideration of the three 

pending trade agreements. I am committed to approaching that 

process with the same cooperation and commitment that we demonstrated on Trade Adjustment Assistance. 

We should start with Panama. That is the agreement that is 

most ready for action, and it is the agreement that will win the 

greatest level of support. With careful thought, consideration, and 

compromise, I also want to address the trade agreements with Colombia and Korea. We must find a way to address the real and significant concerns with labor violence in Colombia, and Korea must 

find a way to accept all American beef from cattle of all ages. 

Done properly, I believe that the United States–Korea Trade 

Agreement could serve as a cornerstone of a broader economic 

agenda that embraces the dynamism of Asia. Our exports to Japan 

and China, the world’s second- and third-largest economies, are far 

from reaching their full potential. Surrounding these Asian heavyweights are promising markets in Vietnam, Malaysia, and Taiwan. 

3 

The bilateral engagement with these and other Asian countries 

is important, but a regional approach is also critical. The United 

States will chair the Asia-Pacific Economic Cooperation Group in 

2011. We must start planning now to make our APEC meaningful. 

One way to do so would be to lead the ongoing Trans-Pacific 

Partnership negotiations to successful conclusion. The sooner that 

the Obama administration commits to the Trans-Pacific Partnership negotiations, the sooner that those negotiations can grow into 

a broader regional deal that encompasses Japan and other countries with greater commercial impact. 

Opening new markets through new negotiations is essential to 

American workers, firms, farmers, and ranchers who are struggling 

in today’s economy, but equally important is unraveling the web of 

sanitary and phytosanitary barriers that keeps the world’s consumers from enjoying American agricultural products. 

These barriers hurt every State represented on this committee. 

In markets throughout the world, unscientific beef import bans 

have cost ranchers in Montana and other States $10 billion in exports. The European Union has effectively locked out American 

corn, soy, poultry, and beef from their markets. 

So, Mayor Kirk, you will also need all of your vigilance and tenacity to enforce our international trade agreements. Our softwood 

lumber agreement with Canada is a prime example. American companies can go toe-to-toe with any global competitor, but they can 

succeed only if the competition plays by the rules of the game. 

Mayor Kirk, the 1945 report on ‘‘Trade Expansion and Jobs’’ that 

I mentioned earlier began with a simple observation. Its authors 

observed that America had ‘‘a limited and temporary power to establish the kind of world we want to live in.’’ I urge you to approach your position as USTR in a similar way. 

So, I urge you to protect the lifeblood of free society. I encourage 

you to see to it that the arteries that carry the stream are not 

clogged again, as they have been in the past. I urge you to use your 

position as U.S. Trade Representative to help to establish the kind 

of world that Americans want to live in. 

Senator Grassley? 

OPENING STATEMENT OF HON. CHUCK GRASSLEY, 

A U.S. SENATOR FROM IOWA 

Senator GRASSLEY. Thank you, Mr. Chairman. 

This is a very important hearing, particularly because President 

Obama just recently released his trade policy agenda, so the President and our country need a U.S. Trade Representative to advise 

on that agenda and, more importantly, to work hard to get it enacted. 

The Finance Committee is in similar need of a U.S. Trade Representative to explain the details of the President’s agenda, to justify it, and to be held accountable for it. There are elements of the 

President’s trade agenda that I welcome. It was long overdue for 

this administration to embrace the idea that trade can, and should, 

play a very important role in our economic recovery, probably the 

most important role. 

We need to take concrete steps that will produce meaningful new 

market access and the opportunities that come with that access for 

4 

our U.S. exporters, and the jobs that are related to those exports. 

With 95 percent of the world’s consumers living outside of the 

United States, we need better access to consumers and foreign 

markets if we want to maintain robust economic growth over the 

long term. 

The U.S. Trade Representative must work very hard to achieve 

that primary objective and not settle for less. On the other hand, 

the President’s trade policy agenda raises some concerns. I do not 

know what the President intends when he says that our trade policies should build on labor provisions in our existing trade agreements, or when he asks how trade policy can respond to global environmental challenges. 

Until I see details, I am reserving judgment, because the bipartisan compromise on these issues that was reached on May 10, 

2007 was hard for some of us to accept. But we did accept it, and 

we wanted to move forward from that point, and still have not 

moved very far from that point. We have yet to see our three pending trade agreements, with Colombia, Panama, and Peru, be implemented, even though they were renegotiated to incorporate the elements of that May 10, 2007 compromise. 

If the President intends to reopen the May 10 compromise, he 

runs the risk of losing the support that resulted in that compromise in the first place. The President’s trade policy agenda also 

states that our trade policy needs a keener appreciation of the consequences of trade for workers, families, and communities. 

I believe our trade policy has reflected these consequences for 

some time. We recently addressed these consequences for our workers in the globalized economy of the 21st century when we achieved 

a true bipartisan reform and expansion of Trade Adjustment Assistance. 

So, unless the President has something else in mind, I believe 

that we have already addressed these issues in good faith, and it 

is time now to focus on implementing our pending trade agreements and to negotiate additional market liberalization trade 

agreements. 

Finally, I am concerned that President Obama is sending mixed 

signals with respect to the North American Free Trade Agreement. 

On the campaign trail, he called for renegotiation or potential optout for this trade agreement. Now the President’s trade policy 

agenda states that the administration will work with Mexico and 

Canada to identify ways to improve the agreement without having 

an adverse impact on trade. 

Now, I do not know what the President intends, but I think the 

marketplace can ill afford such uncertainty as we work to recover 

from our national economic downturn. In addition, I do not see how 

the North American Free Trade Agreement could be changed without having adverse effects on at least some of our trade. 

For example, if the agreement is reopened, Mexico may seek to 

reinstate high tariffs on our agricultural exports. That would be 

bad for producers in agriculture generally, but particularly in my 

home State of Iowa, so I would not support such an outcome. Last 

week, I wrote to President Obama, asking him to clarify his intentions in this regard, and would welcome from you, if you can, your 

views on this as well. 

5 

In closing, I stand ready to work with the President and with 

Mayor Kirk to advance a pro-growth trade agenda for the benefit 

of American exporters and consumers. However, I will not support 

policies that either impede that agenda or would reverse the important progress that has already been made. I do not see how any 

element of a trade agenda will advance if it does not have bipartisan support in the U.S. Congress. 

In addition, the nominee, as has been reported, has been asked 

to address some very important personal issues that he will touch 

on. So I look forward to this hearing. 

The CHAIRMAN. Thank you, Senator. 

Our witness today hails from the Lone Star State. The Senator 

from Texas, Senator Cornyn, has asked to introduce our witness. 

Why don’t you proceed, Senator? 

Senator CORNYN. Thank you, Mr. Chairman. 

The CHAIRMAN. I might remind everybody that a vote is supposed to start not too far from now. It is going to be awfully hard 

to come back, because there are four votes in a row, with 10-minute 

votes. So, I urge all of us to be very, very brief. 

OPENING STATEMENT OF HON. JOHN CORNYN, 

A U.S SENATOR FROM TEXAS 

Senator CORNYN. Mr. Chairman, Senator Hutchison could not be 

here today to offer her introductory remarks, so I would ask unanimous consent that those remarks be made part of the record. 

The CHAIRMAN. Without objection. 

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

Senator CORNYN. Thank you, Mr. Chairman. 

It is my honor to introduce my constituent and President 

Obama’s nominee for U.S. Trade Representative, Mayor Ron Kirk. 

I would note that Mayor Kirk and I have not always been on the 

same side on every issue. For example, who should have been elected to the U.S. Senate in 2002. [Laughter.] But I am happy to be 

here today and support his nomination. 

In the Trade Expansion Act of 1962, Congress recognized that 

our Nation needed to speak with one voice to our trading partners 

around the globe. President Kennedy appointed America’s first 

chief trade negotiator, and President Ford elevated that position to 

Cabinet rank. Congress has worked with many administrations to 

strengthen the ability of the U.S. Trade Representative to enforce 

existing trade agreements and open new markets for American 

workers, farmers, and investors. 

Mayor Kirk would lead USTR during one of the most challenging 

times, with the global financial crisis. The World Bank predicts the 

global economy will shrink this year for the first time in more than 

6 decades. People in many nations are suffering, and calls for new 

trade barriers grow louder. The USTR must speak clearly and 

calmly against protectionism. He must show how open markets can 

renew global prosperity and lift millions in the developing world 

out of poverty. 

I believe President Obama has chosen the right man for the job. 

As mayor of Dallas, Ron Kirk saw how open markets create new 

opportunities for our people. He led trade missions to other naVerDate Nov 24 2008 13:23 Jan 31, 2011 Jkt 000000 PO 00000 Frm 00009 Fmt 6633 Sfmt 6633 R:\DOCS\62568.000 TIMD
6 

tions, he recruited foreign investors, and he supported the North 

American Free Trade Agreement. 

Mayor Kirk’s leadership in the late 1990s helped reenergize the 

local economy. By 2007, the Dallas–Ft. Worth area was exporting 

more than $22 billion of goods and services to foreign markets. 

Like other members of the committee, I became aware of concerns about Mayor Kirk’s payment of income taxes, and I want to 

thank the committee staff for their diligence. I take these matters 

seriously. After meeting with Mayor Kirk, I know he does as well. 

I appreciate what he had to say to me in private, and what I expect 

he will say before the committee today. 

Despite these concerns, I support Mayor Kirk’s nomination. 

Mayor Kirk may not be the first choice of those who fail to acknowledge the benefits of free trade, but he is the first choice of 

the President, and that is what counts, and he is a good choice for 

American exporters and consumers. The continuing global financial 

crisis demands a strong leader at the helm of USTR, and Mayor 

Kirk will fill one of the many top positions of the administration 

that are still waiting to be filled. 

So I am glad this day has come. I congratulate Mayor Kirk on 

his nomination, and I am proud to support my fellow Texan and 

introduce him to you and to the committee, Mr. Chairman. 

The CHAIRMAN. Thank you, Senator. 

Mayor, thank you, much, for coming today. Our usual practice is 

to automatically include your statement in the record and then ask 

you to proceed. But it is also our usual practice for you to have the 

opportunity to introduce any of your family who are here with you. 

So we would be very honored to meet family whom you have here 

with you. 

STATEMENT OF RONALD KIRK, NOMINATED TO BE U.S. TRADE 

REPRESENTATIVE, WITH THE RANK OF AMBASSADOR EXTRAORDINARY AND PLENIPOTENTIARY, EXECUTIVE OFFICE 

OF THE PRESIDENT, WASHINGTON, DC 

Mayor KIRK. Chairman Baucus, Senator Grassley, and members 

of the committee, I am thrilled to be here. It has been a long and 

strange journey getting to this point, but I very much appreciate 

the opportunity to be with you today. I especially want to thank 

Senator Cornyn for his graciousness in introducing me, and for his 

expression of support. 

I am privileged to be joined by my wife, Matrice Ellis-Kirk, and 

today is her birthday. 

The CHAIRMAN. That is my understanding. Let us all wish her 

a happy birthday. [Applause.] 

Mayor KIRK. Not exactly the celebration that I promised her. 

The CHAIRMAN. We are tempted to sing it, but we will forego 

that. [Laughter.] 

Mayor KIRK. Thank you so much. 

I am, indeed, grateful to President Obama for having nominated 

me to serve as U.S. Trade Representative, subject to your confirmation. As you have noted, my full testimony has been submitted for 

the record, and I will try to summarize it here. 

The President and I believe that trade plays a key role in our 

Nation’s economy, as well as that of the world’s, and we are comVerDate Nov 24 2008 13:23 Jan 31, 2011 Jkt 000000 PO 00000 Frm 00010 Fmt 6633 Sfmt 6633 R:\DOCS\62568.000 TIMD
7 

mitted to ensuring that the United States continues to be a leader 

in establishing the rules by which global trade is conducted. 

To build support for that effort, we will work to expand the benefit of trade for America’s families, while ensuring that those who 

are negatively impacted receive the assistance they desperately 

need. 

We are mindful that the benefits of trade are often diffuse, while 

its pain is often concentrated. Cheaper foreign products undoubtedly help hard-pressed American families stretch their dollars, and 

at the same time the sale of our goods and services abroad create 

and support millions of good-paying jobs here in the United States. 

But I think we all recognize that the over-arching benefits of 

trade are difficult to appreciate when a plant closes in a small community because of increased foreign competition. So, it is within 

that context that we seek to restore and build new bipartisan support for a progressive trade agenda for America. 

Roughly a quarter-century ago, I had the opportunity to serve 

Senator Lloyd Bentsen. Like Senator Bentsen, I came from the 

State of Texas and grew up in a working-class family in Austin. 

When I was privileged to be elected mayor of Dallas, I carried with 

me the Senator’s philosophy and practice of conducting himself as 

a raging pragmatist. That same philosophy and common sense will 

govern my work as U.S. Trade Representative, if I am so privileged 

to be confirmed by the Senate. 

I am truly humbled and genuinely excited about the opportunity 

to be of service to our Nation, particularly during this difficult economic period. But, as I have said to many of you in private, I do 

not come to this job with deal fever. We are not going to do deals 

just for the sake of doing so. 

This administration’s starting point on trade will be to ensure 

the strongest possible enforcement of existing rules and increase 

the transparency of current and future trade agreements. We will 

also work with our partners within the WTO to advance the Doha 

negotiations in the right way. We will work with you and the appropriate countries on the pending free trade agreements and pursue new initiatives that seek to channel trade as an important 

driver of our economic recovery. 

At an appropriate time, with proper congressional input and consultation, President Obama will also require the authority to negotiate new agreements and bring them to Congress for your approval. I am thankful for this opportunity to work with you to address your very real concerns about our trade policy in a productive 

and bipartisan spirit. To that end, I think it is important that we 

acknowledge that trade’s winners and losers are all in this together. 

One of my favorite African proverbs says, simply, that one should 

take no comfort from the hole in the other end of the boat. We all 

have to commit ourselves to ensuring a fair hearing and fair treatment for all American industries and workers negatively impacted 

by global trade. The President and I are confident that, given a 

level playing field, America’s businesses and workers can compete 

with those anywhere in the world. 

8 

I recognize that restoring the bipartisan consensus on trade will 

take time, and I believe two important steps are necessary to restore our domestic confidence in global trade. 

The CHAIRMAN. If you could get to the heart of the matter, 

Mayor. This is an unfortunate situation we are in. We do not have 

much time here. There are a lot of Senators here with questions. 

Mayor KIRK. Certainly. Then I will respect the wishes of the 

committee. 

Let me simply say that I am honored to have been asked by the 

President. I believe everything in my background as a lawyer and 

a mayor have prepared me and made me suited for this job, and 

I look forward to working with the committee on those matters that 

we have outlined in the President’s agenda, and those that I have 

discussed with you privately. 

The CHAIRMAN. That is very good. 

[The prepared statement of Mayor Kirk appears in the appendix.] 

The CHAIRMAN. I have three obligatory questions I must ask: 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? 

Mayor KIRK. No, sir. 

The CHAIRMAN. 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? 

Mayor KIRK. No, sir. 

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

any reasonable summons to appear and testify before any duly constituted committee of Congress, if you are confirmed? 

Mayor KIRK. I do, and I will. 

The CHAIRMAN. Thank you. 

In my short time here, I am going to ask about four questions. 

If you do not mind, I would like about 45-second answers, each. All 

right. 

First, what are you going to do to help promote bipartisanship 

in this Congress in pursuing trade? 

Mayor KIRK. Mr. Chairman, the first thing I am going to do is 

continue what I have done with so many of you, which is that we 

are going to talk to you often. We are going to consult with you. 

We are going to listen, try to build on all of those common values 

that I have heard many of you express, and on which we agree, 

that it is necessary to keep trade a vibrant part of our economic 

underpinnings as we try to get this economy going, and then we 

will work with that to try to find common ground and move forward. 

The CHAIRMAN. Thank you. 

Next is China, how to engage China. We have many tools: the 

Joint Commission on Commerce and Trade, the Strategic Economic 

Dialogue, and the WTO. So the question is, how do you expect to 

engage China, and do you plan to continue the JCCT? How do you 

expect to work with Secretary Clinton? In the past, Secretary 

Paulson had that primary responsibility. What metrics will you use 

to measure the success of our relationship with China? 

9 

Mayor KIRK. Mr. Chairman, as my father would say, I do not 

know that this is as much a question as it is an answer, but we 

will continue to work through all of the avenues that we have 

available. I know from your conversations with Secretary Geithner 

during his confirmation, your conversations with the President, 

that this is going to require a comprehensive strategy. We will 

work with the President and other members of the National Economic Council to make sure that we have a wise strategy for dealing with China on a broad range of issues, including—— 

The CHAIRMAN. Do you have any sole, new kind of idea about 

China and how we engage more effectively with China? 

Mayor KIRK. We will use all of our resources within the WTO. 

We will use our diplomatic resources as well. The more that we can 

convince China that moving from not only just an exporting manufacturing community to a consumer society as well, the better it is 

going to be for both, I think, U.S. exporters and for China’s economy as well. 

The CHAIRMAN. We in the United States have the softwood lumber agreement with Canada that needs to be enforced. What steps 

will you take to make sure that Canada is complying with its obligations? 

Mayor KIRK. Well, as you know, Mr. Chairman, I have talked 

about this with Senator Snowe and others. We have filed a number 

of cases against Canada with respect to the softwood lumber agreement. We recently got a favorable ruling on that. But the President, in his meeting with the Prime Minister of Canada, has made 

it clear we want to move forward in a much more collaborative 

way, and our office looks forward to working with you, as well as 

our trading partners, to make sure that we do that and they understand that, in order to keep this great relationship going, we all 

have to play by the rules. 

The CHAIRMAN. As you well know, there are a lot of barriers to 

trade that other countries have imposed on the United States, nontariff trade barriers, commonly called sanitary/phytosanitary barriers, and BSE is one. Can you assure me that addressing SPS barriers—that is sanitary/phytosanitary—will be a high priority for 

the United States? 

Mayor KIRK. That is one of our highest priorities. One of the first 

things we will try to do is convince our partners, particularly those 

in the EU, that any regulations that relate to importing food and 

agriculture should be based on sound science. 

The CHAIRMAN. And that is an issue, because they are not basing 

them on sound science. 

Mayor KIRK. Well, certainly, as you know, our office has been 

successful in pursuing these cases in the WTO. We will continue 

to work with the EU, and any other countries that are blocking the 

import of American beef and meat products, to make sure that they 

are based on sound science and not fear. 

The CHAIRMAN. I appreciate that. 

What are your top three enforcement priorities? 

Mayor KIRK. I think the first is going to be to convince our trading partners that we are absolutely serious about this. But in order 

to continue to build this bipartisan support that you and Senator 

Grassley say is necessary, and I agree, we have to play by the 

10 

rules. Second, we want to make sure that we have the resources 

within USTR to meet that challenge. 

The CHAIRMAN. Do you not think we are ready, that Panama 

FTA is ready to move? 

Mayor KIRK. Pardon me, sir? 

The CHAIRMAN. Do you not think that the Panama FTA is ready 

to move? 

Mayor KIRK. I believe, of those agreements, it is closest. But one 

of the things that I would like to do, Mr. Chairman, is—we are 

going to take a very expedited review of all the pending agreements 

to make sure that they meet the standards that the President has 

laid out. But, as we reference in the President’s trade policy agenda, we believe Panama probably is closest to that. After very quick 

consultation with you, we will come back to you with—— 

The CHAIRMAN. My time has expired. But I meant what I said 

in my opening statement: you have a tremendous opportunity here, 

and tremendous obligation, given world economic conditions. 

Mayor KIRK. I agree with you on both. 

The CHAIRMAN. It is going to take a lot of creative work. 

Mayor KIRK. We will look forward to working with you on that. 

The CHAIRMAN. Thank you. 

Senator Grassley? 

Senator GRASSLEY. Yes. The environment that he is talking 

about is, in the last few months, for the first time since 1982, we 

had a downturn in trade. Getting that reversed is very, very important, not only for the benefit of the United States, but the world 

economy as a whole. This is a worldwide recession. It is not just 

a United States recession. 

My first question. Implementation of the Colombia trade agreement is my number-one trade priority. If confirmed, will you commit to work with me to implement the trade agreement this year— 

that is, over the next 10 months, not into 2010? 

Mayor KIRK. Senator, we actually welcome the opportunity to 

work with you on that. I cannot commit to a certain timetable. As 

I have said, we are going to take a comprehensive review of all of 

our trade policies, because we want to move forward in a strategic, 

rather than a tactical, manner. But we do agree with you that Colombia provides a great opportunity, and we will work with you to 

see if we cannot get that advanced sooner rather than later. 

Senator GRASSLEY. Just so you know, there was good-faith negotiation between Republicans and Democrats 2 years ago to move 

our pending trade agreements forward, and it seems to me that 

when you have good-faith negotiations between two political parties, things ought to move forward without question about whether 

or not they ought to be renegotiated. 

My next question. The President’s trade policy agenda states that 

we need to ‘‘build on’’ the labor provisions in our existing trade 

agreements. What specific building does the President have in 

mind? Before you answer that, let me be clear where I am coming 

from. It was difficult for me to accept the bipartisan compromise 

that was reached on May 10, 2007, including with respect to the 

labor provisions. 

I want to reserve judgment until I see more specifically what the 

President intends, but I am frustrated that the compromise that 

11 

was reached has not yet resulted in the implementation of all four 

trade agreements that were pending at that time. I doubt that I 

will embrace very much deviation from that compromise. So what 

specific building would the President have in mind? 

Mayor KIRK. Again, Senator Grassley, what we would like to do 

is look at all of our trade agreements, all of the elements of May 

10, look at the pending agreements, and make sure that they are 

all working in concert with one another. The President has been 

fairly unequivocal about his desire to make sure that most Americans believe that our trade policy works for us and our families. I 

believe those five elements that were agreed to in the May 10th 

agreement and reflected in Peru can go a long way to helping us 

achieve that. 

I also believe the good work that you and Chairman Baucus did 

during the Economic Recovery bill on Trade Adjustment Assistance 

is going to help this. So I want to make sure you understand, I am 

not prejudging any of these, but I think we would like to have some 

period of time just to take a comprehensive look at all these before 

going forward, and we look forward to working with you on that. 

Senator GRASSLEY. Do you agree that it would be improper to use 

trade negotiations and trade agreements as a means of obligating 

changes in Federal or State labor laws in the United States? 

Mayor KIRK. Senator, I do agree with you. I think it is absolutely 

appropriate for the United States to use the opportunity to enter 

bilateral or multilateral trade agreements to see if we cannot bring 

the world to better standards for workers, but the laws of the 

United States, as they relate to our domestic laws on labor, should 

be set by this Congress. We agree with you. 

Senator GRASSLEY. Yes. With background that I had in my opening statement about the NAFTA agreement, let me ask this question, and it will be my final one. If the President does seek to reopen the agreement, will you commit that you will not agree to any 

increases in, or reinstatement of, tariffs on U.S. agricultural products under this trade agreement, if you are confirmed? 

Mayor KIRK. Senator, like you, I come from a State in which agriculture is very important, but I also come from a State that has 

a very strong relationship with Mexico. We will proceed, as the 

President has directed, in a collaborative way with Mexico and 

Canada to see whether we cannot strengthen NAFTA. I do not see 

the levying of additional tariffs as being in the category of 

strengthening that agreement. 

Senator GRASSLEY. Thank you. 

The CHAIRMAN. Thank you, Senator. 

Mayor KIRK. Thank you, sir. 

The CHAIRMAN. Next, is Senator Stabenow. 

Senator STABENOW. Thank you very much, Mr. Chairman. 

Mayor Kirk, it is wonderful to see you. 

The CHAIRMAN. I might remind everybody, we have limited ourselves to 4 minutes. 

Senator STABENOW. So I will talk quickly, Mr. Chairman. 

The CHAIRMAN. We are not going to make it anyway, but we will 

give it our best shot. 

Senator STABENOW. We had a chance to talk specifically about a 

number of issues, and I would have a number of questions for you. 

12 

But let me just ask, broadly, and preface my question by stating 

that, as you know, having that level playing field that you talked 

about is incredibly important to me. I am deeply concerned about 

the South Korea Free Trade Agreement because there is not a level 

playing field. The non-tariff trade barriers for autos and other 

manufacturers of appliances and other products were not changed 

in that agreement. The Doha Round manufacturers really were not 

at the table. So, I have great concerns about that. 

Under the Bush administration, trade enforcement was really 

put on the back burner in favor of negotiating new trade agreements. One example. When China issued illegal regulations that 

discouraged the importation of auto parts into China, it took 2 

years for the USTR to file a case. It took 2 more years before the 

WTO ruled—in our favor, by the way. I mean, we were right. 

Mayor KIRK. Right. 

Senator STABENOW. But by that time, 4 out of 5 of the major suppliers headquartered in my State went out of business. So, time 

matters on how we go ahead. 

Now, as you probably know, newspapers like the Financial Times 

and the Wall Street Journal are reporting that China is creating 

new export subsidies and new import taxes. So I am wondering, 

under your leadership, what role will USTR take with regard to investigating the effects of these kinds of policies on our U.S. industry? 

Mayor KIRK. Senator, thank you for your words. Thank you also 

for welcoming me when I had an opportunity to come to Michigan. 

When I gave you that African proverb about taking no comfort 

from the hole in the other end of the boat, I think you know, I am 

obviously very proud of the work we have done with NAFTA. But 

as you know, my wife is from Ohio. Just about all of our in-laws 

live in Michigan, and all of them are either employed or retired 

from the auto industry. So as we have talked, I am well aware of 

both sides of this coin as it relates to trade. 

So, one, you have our commitment that we are going to make enforcement a top priority. Second, we want to work to make sure 

that we create opportunities for those new small businesses and 

entrepreneurs. When I talked about not having deal fever, I do not 

mean to prejudge anything that is left on the table. But I did not 

accept this challenge, this opportunity from the President, to simply come in and just pick up and implement everything that was 

left there. 

So when we talk about a comprehensive review, we are going to 

do that with the priorities that the President has established, of 

making sure that we enforce the rules vigorously, that our policies 

are transparent, that they work for our families, and that we try 

to do as much as we can to create that level playing field. I look 

forward to working with you to advance the interests and try to 

help rebuild those small- and medium-sized businesses, as well as 

helping to protect our auto industry. 

As to Korea, I applaud the efforts of the previous administration 

to step away from that. The President has said, and I agree, the 

agreement as it is just simply is not fair. If we do not get that 

right, we will be prepared to step away from that. But I believe 

Korea also presents one of the biggest economic opportunities we 

13 

have of all of the bilateral agreements out there, but we want to 

make sure that we get that right. 

Senator STABENOW. Absolutely. We want to get it right. We obviously benefit tremendously from trade economically, but the rules 

have to be fair. 

Mayor KIRK. Right. 

The CHAIRMAN. Senator Enzi? 

Senator ENZI. Thank you, Mr. Chairman. I would ask that my 

statement be a part of the record. 

The CHAIRMAN. Without objection. 

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

Senator ENZI. I have a question. Since I came to the Senate 12 

years ago, I have been working on implementing country-of-origin 

labeling for American meat products. Congress took special care in 

the 2008 Farm Bill to assure that that program would be consistent with our trade obligations. As you are probably aware, Canada and Mexico have threatened the United States if we challenge 

in the labeling program, and this despite the fact that 42 developed 

nations have similar, if not more stringent, labeling programs. 

What efforts would you be willing to make as the U.S. Trade Representative to uphold our country-of-origin labeling laws? 

Mayor KIRK. Senator, as you and I have talked, I think we have 

an absolute obligation, working together, first of all, to give American consumers the insurance that the food that is in our freezers, 

that we feed our families, is safe. So I think having a reasonable, 

thoughtful program to give consumers that assurance is only fair. 

We will work with Agriculture Secretary Vilsack. I think he has 

taken a very thoughtful approach to this. We will work along with 

his office and the other agencies to make sure that we advance that 

interest. 

Senator ENZI. Thank you. Yes. Secretary Vilsack did begin enforcing the law, and we really appreciate that. 

Now, we have trade preference programs that help entrepreneurs 

in developing countries compete in the world trading system. In 

your view, what is President Obama’s plan to increase global trading opportunities for American small business? 

Mayor KIRK. Senator, as we talked—and forgive me, once a 

mayor, always a mayor—one of the programs I was most proud of 

during our trading program in Dallas was, we had a very aggressive effort, working with the Department of Commerce, the U.S. 

Trade Representative, and our local chamber to educate and help 

to get our small- and medium-sized businesses involved in trade. 

As important as the work of big companies like the auto manufacturers is, the reality is, 70 percent of the jobs in this country are 

still created by small- to medium-sized businesses. 

I am looking forward to working with the Department of Commerce and the SBA to see if we cannot come up with a more 

thoughtful program to reach out and help our small- and mediumsized businesses become more globally competitive. 

Senator ENZI. Thank you very much. I do appreciate the opportunity I had to meet with you. 

I have quite a few other questions. Some are a bit more technical 

in nature, and I would ask if I would be able to submit those. 

14 

The CHAIRMAN. Absolutely. 

Senator ENZI. I give up the balance of my time. 

The CHAIRMAN. I thank the Senator. 

[The questions appear in the appendix.] 

The CHAIRMAN. Mayor, we have, as I mentioned, a little problem 

here. There is virtually no time left. 

I am going to ask each of the remaining Senators to ask one 

question and limit him- or herself to a minute, and even less, if 

possible. 

Senator NELSON. Would you just include my questions in the 

record for me? 

The CHAIRMAN. Absolutely. 

Senator NELSON. I support the nominee. 

Mayor KIRK. Thank you, Senator. 

The CHAIRMAN. Thank you, Senator. 

[The questions appear in the appendix.] 

The CHAIRMAN. Senator Wyden? 

Senator WYDEN. Thank you, Mr. Chairman. I will stick to a 

minute. I am also looking forward to working with you, as chair of 

the Trade Subcommittee as well. 

Mr. Kirk, the middle class today believes that these trade agreements are bad for them. That has been the overwhelming message 

that members of the U.S. Senate are getting now when they go 

home. As one who supported these agreements and looks forward 

to expansionist views of trade policy in the future, what do you 

plan to do to increase the support of Americans, particularly hardhit middle-class Americans, so that they see benefits from expansionist trade policy? 

The CHAIRMAN. Twenty-three seconds. 

Mayor KIRK. I think there are several things we can do. First, 

we really want to work with the leadership in Congress to build 

true bipartisan support. Second, we are going to be a lot more 

proactive in using our technology. The USTR website was described 

to me by one of our young potential staffers as ‘‘so 1987.’’ Well, one 

of the things we want to do is utilize technology to tell the good 

story. Third, as I mentioned to Senator Enzi, I think we can be 

much more aggressive in working with small- to medium-sized 

businesses, but we have to restore the American public’s confidence. 

The CHAIRMAN. Thank you. Thank you very much. 

Senator Snowe? 

Senator SNOWE. Thank you, Mr. Chairman. Thank you for your 

leadership as well. 

Mayor Kirk, welcome. I just want to ask a question on trade enforcement. I appreciate your statement on having the strongest 

possible enforcement. 

My concern is, as I mentioned to you in our meeting, about the 

abysmal record of USTR with respect to enforcement. They have 

not taken any actions on a public petition since 1996. The fact is, 

they have rejected public petitions, even the very same day that 

they were filed. They would not investigate those reports. 

What actions would you take to undergird strong enforcement actions by the USTR? Because we really need to reinforce the confidence, certainly in my constituents, and across this country reVerDate Nov 24 2008 13:23 Jan 31, 2011 Jkt 000000 PO 00000 Frm 00018 Fmt 6633 Sfmt 6633 R:\DOCS\62568.000 TIMD
15 

garding these trade agreements and being willing to require other 

countries to abide by them. 

The CHAIRMAN. Fifteen seconds. 

Mayor KIRK. Senator, if I am privileged to be confirmed, I am 

going to honor the President’s commitment to you to make enforcement one of our very top priorities. 

Senator SNOWE. I appreciate that. 

And may I include my statement in the record, Mr. Chairman? 

The CHAIRMAN. Absolutely. 

Senator SNOWE. Thank you. 

Mayor KIRK. Thank you, Senator. 

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

The CHAIRMAN. Senator Carper? 

Senator CARPER. Mayor Kirk, welcome. Mrs. Kirk, welcome. 

We passed, as you know, an improved and expanded Trade Adjustment Assistance reauthorization as part of the recently enacted 

recovery package. As was already stated, this is a first step toward 

demonstrating to those who are concerned about their jobs that we 

are trying to look out for them. 

However, job instability, whether caused by trade pressures or by 

the current economic environment, makes a lot of Americans 

squeamish about foreign competition. Yet, currently those who lose 

their jobs due to international competition are eligible for more extensive economic support and retraining than those who lose their 

job for other reasons. 

My question is, do our separate and different safety nets for 

those who lose their jobs due to trade pressures versus those who 

lose their jobs due to the bad economy make lowering trade barriers harder? If so, what is your role in addressing that? 

Mayor KIRK. I think they undoubtedly make it harder, Senator. 

Our role is going to be to not only work with the Department of 

Labor and the President to make sure that Americans who are 

struggling through these difficult times have the resources to recover, but at the same time keeping a careful balance to make sure 

that trade remains a vibrant part of that economic recovery. 

The CHAIRMAN. Senator Cantwell? 

Senator CANTWELL. Mayor Kirk, thank you. I hope that you can 

work with us on the Reconstruction Opportunity Zones in Afghanistan and Pakistan, and make that a priority of USTR. I certainly 

want to work with you on China and getting a clean energy bilateral with that country to get U.S. products and services in there. 

But my question is back to the Korea Free Trade Agreement. 

You mentioned its economic impact. I agree with you, it has enormous economic opportunity for the United States at a time when 

our economy is in a stall. What do you mean by ‘‘the benchmarks’’ 

and what can we do to get that legislation moving? 

Mayor KIRK. The President said, Senator Cantwell, and I believe, 

that part of restoring America’s confidence is that we have to give 

them a clear understanding of what our objectives are. So we have 

not determined those benchmarks, but I think it would be helpful, 

at least to whatever degree that we can come up with more definitive measures of what we see to be the benefits, to clearly communicate those to the American public. That is what we would like to 

16 

try to achieve. But in the case of Korea, the status quo simply is 

not acceptable. 

The CHAIRMAN. Thank you, Senator. 

Thank you, Mayor. I deeply regret that this series of four roll call 

votes has required the absence of Senators. It is just going to take 

way too long before we could get back. 

I ask Senators to submit questions right away to you to answer, 

written questions. I asked those Senators to have their questions 

in before 3 p.m. tomorrow. I ask you, Mayor, to respond to those 

questions very quickly. We scheduled the hearing today—it is a bit 

unusual—in the evening, early evening, to accommodate you, accommodate the administration. We need to get our people in place, 

and I wish you well. 

Mayor KIRK. Thank you, Mr. Chairman. I will look forward to 

working with all of you. 

The CHAIRMAN. You bet. 

The hearing is adjourned. 

[Whereupon, at 5:47 p.m., the hearing was concluded.] 

(17) 

A P P E N D I X 

ADDITIONAL MATERIAL SUBMITTED FOR THE RECORD


62568001.eps
18 


62568.002
19 


62568.003
20 


62568.004
21 


62568.005
22 


62568.006
23 


62568.007
24 


62568.008
25 


62568.009
26 


62568.010
27 


62568.011
28 


62568.012
29 


62568.013
30 


62568.014
31 


62568.015
32 


62568.016
33 


62568.017
34 


62568.018
35 


62568.019
36 


62568.020
37 


62568.021
38 


62568.022
39 


62568.023
40 


62568.024
41 


62568.025
42 


62568.026
43 


62568.027
44 


62568.028
45 


62568.029
46 


62568.030
47 


62568.031
48 


62568.032
49 


62568.033
50 


62568.034
51 


62568.035
52 


62568.036
53 


62568.037
54 


62568.038
55 


62568.039
56 


62568.040
57 


62568.041
58 


62568.042
59 


62568.043
60 


62568.044
61 


62568.045
62 


62568.046
63 


62568.047
64 


62568.048
65 


62568.049
66 


62568.050
67 


62568.051
68 


62568.052
69 


62568.053
70 


62568.054
71 


62568.055
72 


62568.056
73 


62568.057
74 


62568.058
75 


62568.059
76 


62568.060
77 


62568.061
78 


62568.062
79 


62568.063
80 


62568.064
81 


62568.065
82 


62568.066
83 


62568.067
84 


62568.068
85 


62568.069
86 


62568.070
87 


62568.071
88 


62568.072
89 


62568.073
90 


62568.074
91 


62568.075
92 


62568.076
93 


62568.077
94 


62568.078
95 


62568.079
96 


62568.080
97 


62568.081
98 


62568082.eps
99 


62568.083
100 


62568.084
101 


62568.085
102 


62568.086
103 


62568.087
104 


62568.088
105 


62568.089
106 


62568.090
107 


62568.091
108 


62568.092
109 


62568.093
110 


62568.094
111 


62568.095
112 


62568.096
113 


62568.097
114 


62568.098
115 


62568.099
116 


62568.100
117 


62568.101
118 


62568.102
119 


62568.103
120 


62568.104
121 


62568.105
122 


62568.106
123 


62568.107
124 


62568.108
125 


62568.109
126 


62568.110
127 


62568.111
128 


62568.112
129 


62568.113
130 


62568.114
131 


62568.115
132 


62568.116
133 


62568.117
134 


62568.118
135 


62568.119
136 


62568.120
137 


62568.121
138 


62568.122
139 


62568.123
140 


62568.124
141 


62568.125
142 


62568.126
143 


62568.127
144 


62568.128
145 


62568.129
146 


62568.130
147 


62568.131
148 


62568.132
149 


62568.133
150 


62568.134
151 


62568.135
152 


62568.136
(153) 

COMMUNICATION


62568137.eps