Skip to Main Content Skip to Left Navigation Skip to Footer

United States of America

Department of Commerce

Commerce Seal montage illustrating the work Commerce does
 
Print without left or right navigation

Secretary's Speech

NOTICE TO VISITOR:
THIS IS AN ARCHIVED SITE

This site contains information released online prior to January 20, 2009.

Click HERE to go the CURRENT commerce.gov website.
Information released from January 20, 2009 to present.

Please note: The content in this archive site is not updated and external links may not function.

AS PREPARED FOR DELIVERY

CONTACT OFFICE OF PUBLIC AFFAIRS

Monday, April 23, 2007

202-482-4883

Secretary of Commerce Carlos M. Gutierrez
Council on Foreign Relations
New York, New York

It’s a privilege to be here with you this morning. I’m here to discuss securing the promise of the Western Hemisphere. In recent decades our regional neighbors have by and large progressed politically and economically. Our corner of the world is now at a crossroads.

We have seen our hemisphere confronted with a choice: the hollow promises of so-called populist rhetoric, or empowering people to prosper by owning their own future.

There is a fundamental philosophical difference between empowering governments to manage people and economies, and empowering people to own their own property, their jobs and their economy. We have demonstrated the success of the latter. Our vision for the hemisphere is personal empowerment, economic opportunity and true social justice.

Compared to the hyper-inflation, cross-border violence and civil unrest of the past, we made unprecedented progress in the Hemisphere in recent decades.

  • Today, 34 of the 35 independent countries of the Americas have democratic constitutions.
  • This widespread support for democracy was recently reaffirmed with 14 leadership elections held between November 2005 and December 2006.
  • Mexico demonstrated a commitment to democracy with the peaceful election of an opposition party president in 2000, and again in 2006.
  • In the 1980s Nicaragua had 13,500 percent hyperinflation. Today it is estimated to be 9.4 percent.
  • Peru has a stable exchange rate, low inflation and has experienced four percent annual growth for the past five years. The political violence of the 1980s and authoritarian measures of the 1990s are a thing of the past.

The list of accomplishments could go on an on. To continue on the track of growth and prosperity, the Administration has remained engaged in the region.

  • Six of the 11 countries with which we have implemented FTAs have been with Latin American countries.
  • President Bush has taken seven trips to the region, visiting 10 Latin American countries.
  • We have formed the Security and Prosperity Partnership of North America with Canada and Mexico.
  • We are hosting the inaugural Americas Competitiveness Forum this June in Atlanta.

We believe that commerce, investment and trade help elevate standards of living, increase educational opportunities, promote healthcare and provide social stability, all of which unite to create security.

First, all countries in the hemisphere have to start with the belief that growth and prosperity are worthy and noble goals.

  • Without growth, everything is a problem.
  • With growth, everything is possible.
  • With growth a country can afford social programs.
  • With growth a country can invest in a sustainable environment.
  • There is no substitute for growth.

Like business, countries and governments can be measured by results. Real results in Latin America will come when all accept that the challenge is not to have an equal distribution of poverty; the challenge is to create opportunities to create new wealth.

Our trade agreements with the region—starting with NAFTA, then Chile and most recently with CAFTA—have delivered results.

NAFTA has had a tremendous impact on regional trade. From 1993 to 2006, trade among the NAFTA nations climbed 198 percent, from $297 billion to $884 billion.

In fact, NAFTA is our largest trading partner, surpassing even the EU.

  • In 2006, our exports to Chile were up 30 percent
  • Chilean exports to the U.S. were up 43 percent.
  • Our exports to the six CAFTA countries were $19.6 billion.
  • And exports from the CAFTA countries to the U.S. totaled 18.6 billion.

And, in 2005, U.S. companies invested $353 billion in Latin America and the Caribbean, and foreign affiliates of U.S. companies employ 1.6 million people.

Hundreds of thousands of jobs are tied to trade and investment, elevating the quality of life for people across the hemisphere.

But trade does more than bring economic growth. It also serves to strengthen young democracies.

It helps create well functioning legal systems, transparent regulations, respect for property rights, and accountable governance. All of these reforms knit together to provide localized and regional stability.

We must keep moving forward to prove that our philosophy works. Our aim is to liberalize trade and spread greater economic and social opportunity throughout the hemisphere.

We now have pending hemispheric FTAs with Colombia, Panama and Peru. Once enacted, these agreements would expand U.S. access to 77 million consumers.

The growth potential with these countries is outstanding. In the 12 months ending in February 2007, two-way trade totaled $28 billion. Imagine the growth when we have trade agreements.

Once we have stitched together these agreements—NAFTA, CAFTA, Chile, Colombia, Panama and Peru—we’ll have FTA’s with over two-thirds of the Hemisphere’s economy.

As much as our hemisphere is at a crossroads, our Congress is at a crossroads. These agreements are the benchmark to determine whether or not we are going to have a protectionist trade policy going forward.

The Administration’s position on trade agreements is clear.

Now, all eyes are on Capitol Hill. We are committed to working with Congress to find a way forward that will result in the quick approval of these agreements.

Expanding trade helps reduce poverty in Latin America, and it provides jobs and opportunity to our citizens by creating an export culture. Last year, was a record-setting year. Our exports grew 12.7 percent while imports only increased by 10.5 percent.

And, it’s not a coincidence that unemployment in the U.S. is at a low 4.4 percent and we’ve had five years of uninterrupted growth.

These agreements clearly make economic sense for us, but perhaps more important they make political sense.

Colombia, Panama and Peru are close political allies. Rejecting any one of these agreements would carry with it political consequences, and create opportunity for those in the hemisphere who don’t share our democratic values and commitment to economic opportunity.

Some in the region have hijacked the term “social justice” to apply to socialist policies. These so-called “revolutionaries” tout equality for all, while ignoring the human rights violations that run rampant.

Under the guise of “social justice” they implement bad policy, make empty promises and create resentment.

When their policies fail to lead to growth and prosperity—as they have in the past and will in the future—they try to make villains out of those who support true democratic change.

We believe true social justice and equal opportunity come from giving people the opportunity to lift themselves out of poverty; not by spreading poverty to the whole population.

This was the driving belief behind a number of initiatives discussed by the President during his recent visit:

  • Since 2004, the U.S. Has provided more than $150 Million for education programs In Latin America and the Caribbean.
  • Last year, The State Department launched a Hemisphere-Wide English Teaching Initiative.
  • The Treasury and State Departments are partnering on a micro-lending program to support entrepreneurs and create new jobs.
  • Through OPIC we are launching an effort to help build a market for affordable housing.

These are just a sample of the endeavors which we have undertaken. Our relationship with our neighbors is bigger than just free trade.

It is important that we prove that through freedom, equal opportunity and the power of individual initiative and creativity, Latin Americans can achieve growth and prosperity. Think of this: the role model for the competing ideology is Cuba

Some question U.S. policy on Cuba. But the real question is when will the regime change its policies? The plight of Cubans has very little to do with U.S. policy and everything to do with the policy of the Castro regime.

Consider this list of things which Cubans cannot do without permission, and then ask yourself if they have anything to do with U.S. policy.

Cubans cannot:

  • Travel abroad.
  • Change jobs.
  • Visit tourist hotels or resorts.
  • Access the Internet.
  • Watch independent television stations.
  • Read unauthorized books, magazines or newspapers.
  • Seek employment with foreign companies on the island.
  • Choose a physician or hospital.

None of these restrictions on the Cuban people have anything to do with the embargo. These are the restrictions placed on them by the regime.

Last year, we issued a “Compact with the People of Cuba,” which clearly lays out the intentions of the U.S. government.

We stand ready to work with the Cuban people to attain political and economic liberty. The future of Cuba is in the hands of the Cuban people on the island.

President Bush has made it clear that we have no imperialist intentions. We have no military plans to occupy the island. We will not confiscate property or support any arbitrary attempts to reclaim property.

Cuba provides us with a very vivid example of what revolutionary rhetoric delivers. Our positive vision empowers the people of the region with the tools to take ownership and improve their lives. There is a choice.

As complex as our hemisphere appears, it is loaded with opportunities. And no discussion of securing the promise of the Hemisphere is complete without discussing immigration.

Many advanced economies around the world face declining populations. In the U.S., the number of people in the prime working years, ages 25-54, is expected to increase by a mere 0.3 percent per year over the next seven years.

According to the UN, by 2150, China’s share of the world population will be reduced by a third. Europe’s share will shrink by more than half, down to just five percent. Russia’s population is already declining.

The reality is that every country around the world is going to have to embrace immigration in order to prosper. And those who can welcome immigrants and assimilate immigrants will have an advantage.

Here in America we are in the middle of an epic debate over immigration. I believe we will soon have a comprehensive immigration reform policy.

Our first priority was, is and will continue to be the security of the American people, which includes securing our borders, boosting interior enforcement and implementing a verification system.

But we also realize that we can’t continue to grow our economy at three percent without a workforce. So we will need immigration.

At a time when there is a growing need for immigration there is also a rise in xenophobia. Sometimes people adopt a misplaced sense of nationalism.

This is not the first time we have had this debate; the good news is that wisdom and the national interest have always prevailed. A sound, legal immigration policy is in our national interest. The Western Hemisphere is a community of immigrants. This can be our great competitive advantage for the next century.

Let me close by saying that we in the Western Hemisphere need to continue building a regional framework to improve standards of living, create prosperity and compete globally.

Our counterparts on other continents—in Europe and Asia for example—are developing regional strategies to improve their competitive advantage.

Our goals for the region are long term. Enabling ownership, creating jobs and reducing poverty will not happen overnight. But we must keep a tight hold on our vision for the future.

The promise of the Western Hemisphere is one of hope, opportunity and freedom. Working together we can secure that promise.