to generate funding. and if they have areas where that funding is more readily available and dependable, then they are going to go to those areas. it is difficult for us to recruit young faculty into wind

engineering, for example, because of the lack of continuity of funding. >> thank you. >> the chair now recognizes mr. schweiker for his question. >> mr. chairman, i'd like to yield to the sponsor of the bill. >> i appreciate the gentleman. one of the things we want to happen here and has been alluded to by the witnesses is getting people to build buildings that will mitigate potential damage. admission out there is that you have to build fort knox so that the cost of building that is not economic because of the probability that event happening versus the cost of doing that. someone of the things i am very big on is using the carrot

rather than the stick. have a couple questions. one of those, d.c. within, for example, many losses of property are insured lossescome as a lobbyist the insurance in the street has a huge interest in this issue. do you see that recognizing the difference in homes or buildings built to different standards so there is incentive for homeowners or people building a building to spend the extra dollars to do that? that would be my first question. >> let me take that one can find a little bit about that issue. we look at property mitigation in two ways. one are building codes and offers to go about building codes. building codes are intended for life safety as opposed to property protection. while obviously a code built home is better in many ways, if

the issue is property protection, that is not necessarily what an individual insurers like to consider the best possible. i dhs has a volunteered standard and dead scope of code. as hazard specific, so we try to identify the types of building construction techniques that will help for specific hazards. every insurance company makes its own decisions, but several states have recognized requiring insurance companies to do that, so we have a bit of a track record of mississippi, alabama, louisiana, south carolina and we see companies are individually making decisions in terms of filing. i want to emphasize the types of things fortified are not unaffordable. the relatively low cost improvements that a homeowner can make talking about a couple thousand dollars in area that

already has a code. one of our partners in terms of safer building of habitat for humanity. they are the largest builder in this country at this point in time and we have partnered with habitat unfortified homes in hurricane areas and other areas. if we can get fortified standards come you know those are not unaffordable standards. it is being at the time decisions are made. he made about all another riff on is a very expensive proposition but if you are at the point where a homeowner is replacing a roof or needs to replace the roof because the first is not come it doesn't cost that much more to build to a fortified standard. >> another theme of this legislation that a number of the people up here talked about his

dissemination of the information and coordination of the information. so for example, this research, for example, do you sit down with industry participants to the national homebuilders, for example and share this information and introduce a dialogue with them to make sure they are made aware of this? >> we certainly have started that. they started out rather negative and skeptical of our capabilities and mitigation messages, but we've invited them to a research center. they see that $40 million facility and realize we are serious about doing the research and communication and that is led to a constructive dialogue. they're a number of organizations we have had long-standing positive relationships with and i should mention the afc is one of our strongest partners here in

washington and at the state level and certainly the technical level as well. the architects are another group we try to encourage young architects and architectural schools to incorporate stronger building into their curriculum. so we are reaching out to a number of organizations. our companies reach out to policyholders and with leverage those relationships to get the word out and the social media is huge in all areas and huge after disasters. we try to make that part of the mitigation of an assault. >> i thank the gentleman for yielding. >> i now recognize ms. johnson for her line of questioning for five minutes. >> thank you very much. just as a follow-up to the questioning, i can't forget the image i see in the lone house that remains standing during

hurricane ike in galveston, only to think, how did i survive to find later the entire neighborhood was devastated because they'd use the type of materials that would resist many wins. i just heard your comments from the standpoint of encouraging architecture, but it seems to me local artists, one permission for building has to be involved, how do we do that without making it seem this is big government trying to bolster everybody? i should think insurance companies should be very interested in having resilience in the building as well as government. with the ability of our

satellite system to predict, we've come a long way to saving lives but we haven't done nearly as well in saving property and that is a major concern in an economy like today. how do you see that responsibility fitting where and what can we do? >> representative johnson, one that would tell you about the one building you solve and a eighth. i set one neighborhood in moore, oklahoma that hurricane ties that would hold the roof down to the wall, just one out of thousands and thousands we let that. essentially, we have to do a better argument to convince individuals that this is something they had to think about instead of that granite countertop. let's look back at ourselves 100

years ago our large cities, chicago, new york, san francisco, we all cease to fire considerations. talks and blocks burning down. at that time city leaders, legislation, politicians got together and said enough is enough. chicago is going to survive, we have to all pull in one direction and that's what we did. and we can do it again. we have the ability to do it again. right now the public is generally fearful of tornadoes, fearful of the wind hazard and believe we don't have talent to do it. i think we put a man on the moon could we can pretty much keep a roof on our house. >> i certainly agree with that statement. we are very strong supporters of building codes.

a year ago we did a study. recall that reading the states and that the building code regimes from texas and the postal state on a zero to 100 scale. the scores ranged from four to 95. so there was quite a range. i will tell you is a public communications vehicle, a lot of people may not know a building code is, but they know it's good to have a high score and bad to have a low score and that really has started a dialogue. the most positive response we've got to have been in those states that the low scores about how they can do better. one state that was not the bottom pass the bill this year, maryland that specifically addressed an issue we've identified in those states. it's a way of making building codes understandable to people so they began to demand.

we support statewide mandatory building codes. it's much more consistent, but some states are that hasn't happened in texas is certainly one of them at a minimum at a local level there ought to be strong ordinances and the fact. >> thank you, mr. chairman. high-heeled pack. >> thank you. i now recognize mr. lipinski for five minutes. >> thank you, mr. chairman. in his testimony, dr. keisling called for behavioral studies to understand implementation of research results back stronger building codes. i think this is something very important that we have to use

the lessons from social science to ensure the other lessons we're learning for research get implemented. can dr. keisling another witnesses expand upon not where exactly they see the importance? >> i think implementation is a serious problem in many areas. i would back up a little bit in terms of improved building codes, we can do a lot of good by simply making the existing building codes. they are not effectively enforced or inspect it, but if we increased the design only a small amount, we received a lot of property because even in a tornado, most of the damage is done at wind speeds in the 100 to 125 miles per hour winds.

if we design a little bit more than we do in 90 or 100-mile per hour winds, that would save structures currently being destroyed. i don't know what the answers are to implementation, but i see it as a serious, serious problem, not only enforcing building codes, but it haunts me to hear reports of traffic deaths in our city and many instances people are killed in rollover accidents without using seat belts. they are sitting on property they already own that can be very affect it in saving lives and so it should not surprise us that we have problems in enforcing building codes and motivating people to do a better job of construction. i don't know the answers, but we need to involve social sciences and disciplines that we have not

in fact playing geisha before to see how do we implement what we are doing now. there's much more to learn. we need to learn much more, but we also need to do a better job of using the verity house. >> we are hoping to gather social scientists at a research center this december so we can begin to explore more detail. to the extent they sketched out the way we think about this issue, we think at first a question of getting the hearts and minds of people, getting them to want to us that we talked about that before in terms of one of the answers to the previous questions. second is adequate incentives for individuals and for state come an example of how that might work is the state building code and sent it back but also has been introduced in this congress provides additional

funding for states that do the right thing. that's the financial incentive. i'm finally understanding politics of days. we have to make this a win-win proposition and make the market want this to happen for us to address social science issues. >> i might add noaa and the national science foundation started by the ready nation in which they brought together the physical scientists and engineers to discuss the issues of whether, you know, acknowledging forecasting has got us so far and we are better at it, but the property damage. the move has been studied. there is a report and i can provide that link to you in

which we are now working with social scientists. i was on a rapid nsf project in moore, oklahoma and we did involve social scientist in the universe about them as well as ourselves can engineers and other universities. >> thank you. i would like to take a look at that. it is something we oftentimes overlooked. with inflation here, we should make sure that we include social sciences because you can do the research ui to know how to mitigate damage to property threats, to human life is no one is implementing those we don't know -- we are not sure about the incentives of how to get people as you take that into

account, we have research sitting on a shelf not doing anyone any good. that is something important we have to make sure we are considering here in providing up to level. i have not. thank you. >> thank you. >> thank you, mr. chairman. is a quick follow-up to mr. lipinski's discussion, for ms. ballen come is the insurance industry offering lower premiums to those who have pressure fitted? was sort of incentive is the marketplace providing? we know the tax credits do not seem to be terribly affect it right now. i'm wondering what's done on the private side. >> i was just individual companies make their own decisions. that said, i bhs started a technical standard called fortified. we know the standards work and

the program includes an inspection and designation process that we know that the homes that were built to those standards really are but what those standards. many companies provide discounts for fortified homes and that's also required and brief violence and some states. it's not enough to save a homeowner says surrey builders says they built to that standard comments got to be inspected and verified. >> thank you. further follow up living in connecticut where you experienced a number of storms over the last few years. with great concern about resilience about the lifelines come utilities, infrastructure. if any of you could talk about what is done on the research side on these critical issues where you can't have rebuilding come you can't even have access to people and get them back

online and what we ought to look at in that department. >> i think that is the entire direction of the engineering school is sustainable infrastructure and environment at the university of florida. that's our entire mission. it is in several universities was selling its sustainability of what we do in civil engineering. before we get to a sustainable society, but first i'll have to get a resilient one, one that is more robust and have research sometimes is fundamental. we do need to better understand the laws and the structural properties of the buildings of infrastructure, utilities, what have you. but we really just need to decide. we really need to decide that we want to live in a sustainable

society and we can do it. guess it will cost some money and some time, but if you could engineers and social scientists on this case, we can do this in 10 years. it is the vision to go after. >> i know some of the work of francis care across his stomach in a multiple ways to address climate change issues particularly with populations being in recently concentrated on the coast, we see whatever is attributable to an increase in more severe weather so it's extremely important we take this resilience line of research quite seriously and address it as an extremely high priority as we are extremely energy dependent for everything we do if we do not partner our systems would look at cybersecurity and natural weather ability and i'm

concerned we not forget how critical that is and what could in new york and we need to be emphasizing retrofitting. not just new standards, but what are we going to do with major cities that need to be retrofitted for the utility side. thank you ramage. i yield back the balance of my time. >> ask unanimous consent that the whole committee has >> the chair now recognizes mr. neugebauer for five minutes. >> thank you, mr. chairman. i like to the favor and kneeled attn: mr. schweiker from arizona. >> thank you, mr. chairman. ms. ballen -- actually it was a bit with hitting a point that i wanted to go to. we all live in a world for how many of us will go up by a volvo

over corvair? but the fact is when you buy a car today, i was looking at consumer reports and saying hey, this is safe. my insurance is cheaper. there's a price differential driven by the insurance industry that changes their purchasing behavior. why is not also the decision for those of us purchasing residential real estate is our price differential and cost of insurance. >> that's an excellent question and when we ask ourselves every single day. our peer organization for highway safety showed the way have research and communications lead to safer cars and people want to none any to have enough people with the scars she see the difference in the lawsuits and insurance companies respond to that. >> i understand for public

holdings in schools and those things, particularly with federal resources and man we have a voice they are. but if i am now buying a residential property are getting ready to refit or remodel, how many of us have bought a house and will fixate on small margins on the interest rate between 100 another? but if there's price differential is understood in the market between these types of tiedowns on my road in this house does not tiedowns so i paid insert a premium, is not the ultimate solution here? >> the market is the ultimate solution. it would be benefited by the research we talk about, but ultimately people need to want that. >> what works on incentives and disincentives.

>> the building industry is much are complicated than the automobile industry. there are thousands of builders out there versus five or six or seven car companies that the guys that do it. >> my undergrad isn't real estate. it is the life i grew up in is not the builders and if i came and said hey, try this house because the attributes and data center straight, but this one i paid this interest rate, would would all scream and go running to this one. mr. chairman, i'd like to yield to mr. neugebauer because he had more on this. >> one of the things you mentioned a while ago is that much of a tornado are much

different than make us vertical wind. there's different categories of events all the way from and at 02 at five. at this particular point in time, we don't have the technology he on an economic basis to protect a home for monoxide storm probably. so then a thick coat just mitigation of life over property, saying the house doesn't make it, but there are things the work done by various degrees that are fairly affordable inside that home of fortification. could you cover a little of what are some practical things that could be done in the homes both retrofit and new construction?

>> thank you for asking. early on we more or less adopted the approach that is very expensive to take a home of the type we build today and assign it to refit the worst-case tornado. you can certainly improve the performance and protect against severe damage from the vast majority of even tornadoes because even as i said before, the damages caused by marginal wind speeds. we adopted the idea or the philosophy of providing occupant protection in a small room, now called a safer because it is affordable to harden and stiffen a small room of the house to provide the absolute occupant protection. that might be practical for new

construction, but the vast majority being installed today are manufacturing. there still boxes, concrete boxes, timber boxes installed in the grudge and they're very affordable. even though shelters mounted in the five you can cut out a section of the piece of the garage floor, excavate, but a sliding door on it so you provide protection without using a parking space. there are many, many options available today and i would say for almost every situation or circumstance, it is possible to design occupant protection from the worst-case tornado and we have a real problem right now with public perception because there is so much bad publicity, misinformation in oklahoma about having to be underground to

survive. that is simply a falsehood that should be squelched. but in answer to your question, there is a way to protect life in a safe room, very inexpensively and we must do the best we can in reducing the damage by improving the buildings are building codes endorsement. one other point i would make that is different in the automobile industry in the home building industry both are sensitive to initial costs. most of the houses are built speculative today. as you well know, the marketability of housing is very, very sent to to the initial cost and not only builders, but homeowners look at that initial cost and tend to

resist any improvement that cost initially. >> thank you very much. at this point i'd like to thank the witnesses for their testimony and further question. the members may have additional questions for you and me ask you respond to those in writing. the record will remain open for two weeks for additional comments in written questions from the members. the witnesses are asked to use. the hearing is adjourned. [inaudible conversations]

[inaudible conversations] ..

which is both frustrating and also interesting privilege because when i'm wearing the sanitation worker uniform, i can observe people in ways they don't realize i'm observing them. >> nyu professor and department of sanitation residence robin nagle sunday in q & a. >> she suffered from epilepsy. because of that her husband, president william, would sit next to her at state dinners so

when she had a seizure he would shield her face from gases. -- guests. we'll look at the life of eye data as we conclude the first season of our series on first first ladies live monday night on c-span, c-span 3, c-span.org. flags at the u.s. calf -- capitol flying at half city in honor of frank lautenberg. his body is lying in the senate chamber until 6:00 p.m. eastern. we plan to bring you live coverage of the casket as it departs the capitol at that time. monday when news broke, several senators came to the floor to pay tribute. he's the last world war ii

veteran in congress. starting with the senate chaplain who offered prayers for senator lautenberg and his family. >> let us pray. oh god, thank you for being near to us in good and bad times. we celebrate your wonderful blessings that bring us new victories each day. as we look at the flowers on the desk of our friend and brother, senator frank lautenberg, we thank you for his life and legacy. as we mourn his death, send your comfort in to our hearts. bless bonnie and his family and

give them your peace. let our memory of this good and courageous american inspire us to transcend the barriers that divide us, and to work for the good of america. we pray, in your merciful name, amen. please join me in reciting the pledge of allee again. to the flag of the united states of america. to to the republican for which it stands, one nation, under god, indevisible, with lib i can and justice for all.

washington, d.c., in june 3rd, 2013, to the senate on the provisions of rule 1, paragraph 3 of the standard rulers of the senate i here by appoint tim cain a senator from the commonwealth of virginia to perform the duties of the chair. >> majority leader? >> i observe a moment of silence for frank lautenberg. >> the senate will observe a moment of silence, if all could please stand.

mr. president. >> majority leader? >> i have a few matters i must take care of. 4:00 p.m. today following that morning business the senate will follow consideration of the farm bill. there will be amendments to the bill. there are two bills at the desk two for second reading. >> clerk will read the title of the bill for a second time. >> hr3, an act to improve the construction, operation, and maintenance of the keystone x l pipeline. hr271 an act by the compliance with an emergency order of the federal power act. >> mr. president, i object to

both the further proceedings with regard to both of these matters. >> objection having been heard. the measures will now be placed. >> mr. president, when i learned earlier this morning that frank lautenberg had died, of course, i became very, very sad. i served with him for two and a half decades or more here in the senate, and to see now that flowers on his desk seems the flowers have barely wilted on the desk that was right behind me, senator inouye. i have a heavy heart, mr. president, the senior senator from new jersey and my friend, frank lautenberg died this morning, as we all know. my thoughts are with his lovely

wife, bonnie, his children, and thirteen grandchildren. few people in the history of the institution contributed as much to our nation and to the united states senate as frank lautenberg. the success story is really what the american dream is all about. he came from a family of working class immigrants from eastern europe, russia and poland. his parents struggled, i've heard frank talk about how they struggled. they worked so hard they moved around new jersey often. when frank was 18, during the middle of world war ii he enlisted in the united states army. during the world war ii he served, i can remember frank talking about his experience in the european theater. once he said he was on the army -- he's up on a power line, a

power pole. he can see the war going on in his sight. during world war ii, he talked about the many -- as he said making him a better american. he was very proud of his military service. he is the last world war ii veteran having served in the senate. we don't have any world war ii veterans anymore, mr. president. his death is a great loss for this institution in many, many different ways. when frank came home from the war, he was obviously very smart, and was permitted to attend the prestige colombia university, he did it on the g.i. bill like millions of other returning americans. he quickly found his own

business, his own company. he did it with two good friends. all three from new jersey, three kids from new jersey under his leadership this firm automatic data processing, known as adp, graduate largest computing service company of the kind in the world. he was very proud of that company. and he never hesitated to tell everyone that he made money. he became rich. he was a poor boy, became wealthy as a result of people being able to fulfill their dreams as people can do in america. frank was -- wasn't content with his personal success alone. he was proud of a lot of civic and charitable thing he did. nothing made him more proud of what he decide outside government than when he serves as head of jewish appeal known as jewish federation of north america. he was very proud of that. mr. president, frank lautenberg

was known for many, many things. before he came to the senate, but he ran an -- and was elected in 1982, he came to the congress the same year that i did. and in the three decades since, he's worked tirelessly on behalf of his state and the country. he retired once, he couldn't stand retirement. he hated retirement. he couldn't stay away from public service, and he returned to the senate again in 2002. he had a remarkable career. i touched upon a few things. his determination that had made his successful in the private sector served him well in the united states senate. mr. president, motivated by his own experience, senator lautenberg, a world war ii coded

the g.i. bill of rites, recognizing how much it meant to him. he wanted to help ensure vets returning from afghanistan and iraq enjoyed the same opportunity for education that helped him become so successful. and mr. president, my youngest boy just hated cigarette smoke, and it really made him ill. airplanes, remember we went through a procedure where you could smoke the every place. it didn't matter. everybody smoked in the secondhand smoke. frank lautenberg took care of my boy and millions of other people that no longer has to suck in the smoke on an airplane. he's the one, more than everyone

else to thank for protecting us from secondhand smoke. his legislation banned smoking on airplane. it was a long time member of the environment committee. had he not retired for the short period of time he did, he would have been chairman of the committee because he wasn't there. i got the opportunity to be chair of the committee on two separate occasions. so he focused on nation's infrastructure, roads and highways, and one of the things he thought that would make this country a safer place is to pass a drinking limit that you couldn't drink alcohol any place in the country until you are 21 years of age. that's what he did. the national drunk driver standard is what it was called. he believed in helping the state of new jersey. that it was his first priority. his second priority was helping

the country, and i'm not sure order they came. it was hard to understand the difference between frank lautenberg. he was focused on the country and new jersey at the same time. hemented to make sure women and children were protected from gun violence. because of him we passed legislation here that convicted domestic abusers couldn't own firearms. so just a few examples of his work here in the senate that literally saved lives. and, mr. president, he came out of his sick bed in a wheelchair to vote on gun legislation. he agreed with 90% of the american people. the people that severe mental problem or felons shouldn't be able to buy a gun. he agreed with 90% of the american people. he came from his bed to come here and vote with us. he was so happy to be here.

he came once after that just a few days ago to vote when we need him -- needed him again. he tried so hard. talking to bonnie today she was confident he was going to live to be 100. he was a strong man physically. a couple of years ago, i took a big delegation to china, a bipartisan group. it was a wonderful trip. frank lautenberg, that was his last foreign travel, and i can remember indicating what a strong man he was physically. i haven't been to the great wall of china. i don't know how many other ten senators had been. i hadn't been. it's pretty steep and big rocks, it's been there for centuries and centuries, and because frank was 88 years old at the time, somebody grabbed his arm to help them.

he pushed them away. he wanted no help from anybody. he was on his own, that's the way he wanted to. i, our nation, owes a great gratitude to frank. he's been so kind to me. he was one that really appreciated his service. he appreciated being here. he loved being in the senate, and the nation is going to miss his strength and progressive leadership. mr. president, the other thing that probably a lot of people don't know about frank lautenberg, his sense of humor. i had him tell the story because no one could tell the story like him, but another reason i kind of liked -- like frank he laughed at his own jokes. he thought they were funny, as most everyone listening to them did. one of our favorites was about

two wrestlers. there was a pretzel -- it would take about five minutes or more. it was funny. no one can tell it like frank. so he had a sense of humor, we certainly appreciated that. even though the united states senate, mr. president, midnight last night had -- we still have al franken, there was room for two funny people prior to frank's death this morning. frank and al, frank lautenberg, and al franken always made a smile and often made us laugh. now, i guess it's going to be up to senator franken to do this a lot. they were both really, really funny. together and apart. it's with deep sadness that a -- are going to do that wednesday

morning. a faithful friend, senator frank lautenberg. >> the clerk will call the roll. [roll call] >> mr. president, i just flew in from chicago early this morning. i was given the news that had lost a great friend, and one of my drearest colleague -- dearest colleagues, senator frank lautenberg of new jersey passed away. most of us saw frank a few weeks ago. he was here on the floor of the senate. he had come down, it was one of the moments where his vote was crucial. we knew he was struggling, but we also knew he would be here. he said he would and he was. he sat just right over here in a

wheelchair, with that trademark frank lautenberg smile. i don't think i have ever run in to a person in my life as happy as frank lautenberg. he was a great joke teller, and the best thing about frank's joke even if he was telling it for the 254th time, he would start laughing before the end of the joke, and pretty soon the whole room was laughing. you always wanted to be out for dinner with frank and bonnie. you just knew it was going to be a good time. you would hear a lot of jokes before -- you heard before. you encouraged him to tell them. he was a member of the greatest generation having served in world world war ii and in the senate. he retired once and came back, served here to the age of 89. he astonished all us when he came on the floor the senate he was wheeled in a wheelchair to

vote. on some important amendments related to gun safety and gun control. frank, if he were alive, would not have missed the votes. it meant so much to him. it was an issue that he lead on. he was respected for. when it came to closing the loopholes where convicted felons and people who had no business owning guns were buying them anyway, frank lautenberg lead the effort to stop the proliferation of guns and the distribution of them to people who would misuse them. it was a choughs that he felt passionately about. one he cast many tough votes on as he served in the u.s. senate. his return that day for the votes an act of courage, and a long life that was filled with courage starting with his service in the united army in world war ii, and continuing throughout his life. physical courage, political courage, and moral courage.

when frank lautenberg spoke to students at rutger's university about ten years ago he said he briefly considered studying law himself after he served in the army in world world war ii but decided 25 years old and too old to start law school. he told the law students it was too late. he missed his opportunity. he may not have earned a law degree, but make no mistake, frank lautenberg of new jersey left an important mark on the laws much of america. here is how i first came to know him. i was a congressman in 1986, i had been here four years, i was from springfield, illinois i never met frank lautenberg in new jersey who was a senator at time. i got a crazy notion to introduce a tboil ban smoking on airplanes. i didn't have a chance. not a chance. the entire leadership of the house of representatives opposed

me. all of the democratic leaders of my party and all the republican leaders too. and yet i put the amendment on ab appropriation bill, the transportation appropriation bill, and through some good luck and breaks, it made through the rules committee. that wasn't supposed to happen. it turns out that claude pepper of florida, the chairman of the rules committee, when he was a senator years before, had been instrumental in starting the national cancer institute. as a southerner he didn't talk much about tobacco. nobody did in those days. ihe knew that tobacco smoking was killing people. he let me get it to the floor which shocked everybody. i remember the day, it goes back twenty seven years ago, i was in the house of representatives calling the amendment to ban smoking on flights of two hours or less, that's how i started. i looked up in the gallery and

it was filled with flight attendants they were victims too of secondhand smoke. well, we called that measure a vote and it passed. it just shocked everybody. and it turned out that the house of representatives was the biggest frequent flier club in america. they were sick and tired of sitting on airplanes and breathing in somebody else's secondhand smoke. there were a few moments of jubilation and celebration and somebody said what are you going do in the senate? i thought oh my goodness, that is an important part of this. so i decided to call the chairman of the transportation appropriations subcommittee, a fellow named frank lautenberg of new jersey. i county know -- i didn't know him. i said to frank, i would like to ask you a favor. could you consider offering this bill as an amendment to the senate transportation appropriations bill? he said, i'll get back do you. he did. in a hurry. he said, i'm on board. let's do it together.

well, it was best phone call i ever made. for the people of this country and those who fly on airplanes, that team of flatten -- lautenberg and durbin managed to pass a bill signed in to law which did more than we ever dreamed of. we thought the little idea of taking smoking airplane would make flight a little more comfortable, and safer for health point of view neither frank nor i realized at the time was it was a tipping point. americans looked around and said if we're going take smokes off airplanes why stop there? trains, buses, officer -- offices, hospitals, restaurants, just look across the board what happened in america. neither frank nor i saw if coming. but it worked. it changed this country, it changed the senate and the house. it changed this country. and i wouldn't be standing here today if not for frank lautenberg. he was the best partner i ever

could have had. when a day came when i was elected to the senate we used to tell the story from time to time, reminiscing about that battle back in 1986. frank told us he was once a two-pack a day cigarette smoker himself. but when it came to this bill, he knew the right thing to do. i was lucky to have him by my side. i couldn't have done it without him. he was the driving force behind a lot of other laws that were important to america too. setting the national drinking age at 21, setting a national blood level definition of.08 for drunk driving. just these laws on smoking and drunk driving save millions of lives thanks to the leadership of frank lawsuiten lautenberg. he was the last remaining world war ii vet. a couple of weeks ago we lost danny inouye. he served in world war ii too.

he passed away, frank did, early this morning in new york. he survivorred by his wife bonnie, bonnie i. what an extraordinary person she is. i left a message saying standing by frank's side made a big difference in his life in the years they were together. they were great, great partnership. in addition, he survived by children, six children, thirteen grandchildren, he was a leader on environmental protection, transportation, presenting pub -- protecting public health. he authored a law that prevented domestic abusers from possessing guns. it wasn't an easy thing to do. it looks pretty obvious, doesn't? turns out police organization were 0 possessing him because policeman, some of them had been accused of domestic abuse and couldn't carry a gun with the lautenberg amendment.

frank stood his ground. he cowrote the new g.i. bill for the 21st century. a man with the original teamed up and they put together a g.i. bill that our men and women who served are richly deserving. he authored the toxic right no know law. it was another great law that he and i cosponsored. it came to down a question of the chemicals that are put in fabric in our furniture, which sadly are leeched and get to the environment of our homes. many times affecting small children. frank was quick to be the leader on that issue. even though his state of new jersey is one of a lot of chemical manufacturers and producers. he lead in the effort to protect families and children. he wrote the law to create the patternson great falls national historic park. after he cast his 9,000th vote in december of 2011, senator

harry reid proclaimed frank lautenberg has been one of the most productive senators in history of the country. it was february 15, that frank announced he wasn't going seek another term in the senate. the time of the announcement, his hometown set out an agenda for the remaining two years what he wanted to get done before he left the senate reforming the chemical laws, improving gun safety, and providing federal resources for new jersey to rebuild from hurricane sandy, we owed frank and his memory to make sure those things are done. i know, the bob men will pick up the thought and proceed to carry-on in frank's name. he used to say with some pride he was success in business and he was. and he understood the mind of businessman. but he never ever lost touch with the common man, and people who counted on him in new jersey and around the united states. the united states senate is

going miss frank lautenberg. i'm going miss a great pal. i'm going miss one of the best dinner companions you ever dream of in washington, d.c. we are going to together wednesday in new york for a memorial service. i'm sure it's going widely attended. frank can a -- did a lot of things for a lot of people over the course of his years in public service. i'm going miss him. a live look outside the east front of the u.s. capitol. and waiting for the casket of senator lautenberg to be removed from the senate chambers. it's been there since 2:00 this afternoon lying in repose. and buried tomorrow at arlington national cemetery. senator lautenberg, the oldest sitting senator, and last senator to serve in world war ii. senator robert of west virginia

who died in 2010 was the last senator to be commemorated in senate chamber. from here it will be removed and tomorrow burial at arlington national cemetery. the funeral yesterday in new york city at the park avenue synagogue, where he was spoken of not only by his family but by vice president biden, former secretary of state, hillary clinton, and others. you're watching live coverage outside the senate chamber on c-span2.

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here on c-span2 live inside the us capitol. this is the look inside the senate reception room there. the family of senator lautenberg gathering and others as well as the casket will be brought out of the senate chamber in a couple of minutes and buried tomorrow morning at arlington national cemetery. [inaudible conversations]

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at the top of the steps outside the senate chamber senator frank lautenberg's children and grandchildren gathered and waiting for the casket of late senator frank lautenberg to be removed from the senate chambers. it's been lying in last repose for the last four hours or so open to the public. the body will be removed shortly

and burial set for tomorrow morning at arlington national cemetery. his funeral was -- his funeral service held yesterday in new york city at the park avenue synagogue. [inaudible] [inaudible conversations]

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and earlier today new jersey governor christ filling in the interim seat of

frank lautenberg. a special election held in new jersey on tuesday, october 16. among capitol hill among the issue we covered eric holder, the attorney general testified today on his department's 2014 budget, fiscal year 2014 budget. he said as long as he's in office, the justice department will not prosecute any report are for doing his or her job in to the investigation of the leaks of secret investigation. that will be followed by today's irs hearing on irs conferences in the spending on those conferences. that house oversight committee hearing at 9:15 eastern on c-span. the senate finance committee held a conformation for michael. president obama's pick for u.s. trade representative. if confirmed he'll oversee major trade negotiations with the e.u. e.u. and asia.

it's an hour and forty five minutes. [inaudible conversations] shakespeare once said, thought can jump sea and land. end quote. nimble actions on the con flex world trade negotiations and enforcement. the nimbleness allows them to address the trade policy across the sea and land. it's effective. fewer than 250 employees. it punches beyond the weight to bring down. and negotiates rule of trade and expand commerce to create jobs.

the it requires a leadership as equally nimble. the leadership can that harness the strength and the strength to the u.s. government as a whole. he's a leader. willing to put in the miles to meet with foreign counter parts and drive a hard bar bargain. a leader willing to partner with us. a leader willing to put in the hour to understand the challenges facing us businesses, farmers, and ranchers. ranchers like jim peterson trying to sell more beef around the world. i am pleased to be have a leader before us today. michael is the right person for the job. the past four years he demonstrated mastery of and impoliceimplementation. he sees the big picture. he closed out trade agreement, and promoted initiative that

boosted america's expert by more than 0%. he has skillfully. he's more than capable to dot job at hand. we should confirm his nomination and do it quickly. president obama outlined an ambition trade agenda one that requires a strong trade representative that can hit the ground running. the united states has an opportunity to share in the rapid growth of the pacific region and unlock economic gains from the deep ties with europe. they seek to complete the transpacific partnership negotiation by the end of the year, will be wrapping up free trade agreement negotiations with the european union. and its hard at work on the multilateral services agreement expanding opportunities for u.s. information technology products to reduce the border delay around the world.

these trade policy will make a difference here at home. as a group the tpp companies are the largers international market for u.s. goods and services. last year u.s. exports to current tpp countries totaled nearly $260 billion. and on trade barriers in ttp con countries will make a difference. japan relaxed the beef restrictions earlier this year. the agricultural tariff are more than 20% where ours are five. with those tariffs come down, our sales will go up. and in transatlantic trade will stimulate economic growth and job creation. european union purchased to close to $400 billion supporting 2.4 million american jobs. a comp comprehensive agreement that tackling agricultural

barriers could add more jobs at home. my home state of montana shows a critical and ambitious trade agenda is to good paying jobs. montana's manufacturers, farmers, and ranchers rely on open markets to create and maintain jobs. one in six manufacturing jobs comes from exports. the last decade montana's goods exported fta partner increased by 250%. last year montana's wheat growers exported 65 percent of the crop. because of the tireless efforts they can export the beef to korea and farmers can export seed potato to congo. we must fulfill the promise of ambition trade agenda. we're not done. next step to be pass trade promotion authority and trade adjustment assistance. so many moving to completion and getting off the ground we need tpa to guide and support usda.

the faa trade adjustment assistance to ensure our work force remains ready to compete with anyone anywhere in the world. i'm pleased that the administration supports tpa and worker systems. i look forward to working with you to renew tpa and ttp. so we can lay the ground work for a successful trade agenda. i'll continue my efforts to introduce a tpa budget this month. i would like to emphasis they must don't harness the resource and energy of the entire u.s. government for the trade agenda to be successful. we must continue to be headquartered at the white house. and the u.s. government must continue to pull together behind the leadership. the president's ambition trade agenda with nimble thought and action. i'm confident with mike at the helm. they will meet the ambition that the president sent. , members of the committee will probably ask you tough questions today. that is our right.

it is our responsibility. for the past several years you have shown you are really to go the extra mile, land, or sea to get the best deal for u.s. farmers, ranchers, businesses, i believe you will serve ably and i look forward to our discussion. senator hatch. >> thank you, for appearing today and joining with us. iing look forward to hearing your testimony. before talking about trade policy. i want to talk about the wide disparity by the marks and the action taken by the administration officials. now this has particular relevance to his nomination. a few months ago, when the finance committee considering the nomination of jack lew to be the secretary of treasury, we learned that he invested in cayman islands hedge fund located now -- [inaudible] so many democrats decried as tax haven. at the time we reminded people

in 2008 while campaigning for president senator obama said it was the biggest world in -- throughout the world 2012 campaign, president obama repeatedly attacked mitt romney as opponent for having funds invested in the caymans and making investment governor romney in the words, betting against america. yet the president had no problem nominating someone who made similar investment to the treasury secretary. as a result of our betting process, we learned that he is actively invested roughly a half million dollars in the same hedge fund located at the egg land house. he is in fact the third cabinet nominee this year to make use of offshore investment and structure despite the condemnation of the activities during the campaign. more over, the cayman island investment in a fund that in

turn has invested in companies that outsource jobs who are using the president's rhetoric ship jobs to low wage countries like india. on top of that, we remember in early 2009, when president obama remarkinged about wall street saying that institutions were quote, teeter on collapse and asking for taxpayers to help sustain them, unquote. the president railed against wall street bonuses at the time saying, quote, it's the hype of irresponsibility. it's shameful, unquote. they also refer to wall street bonuses as, quote, obscene, unquote. like secretary lew he was employed at citigroup during much of the financial crisis. in late 2008 and early 2009 american taxpayers provided over $45 billion with a b in direct assistance to citigroup and backed hundreds of assets. during the same two years, he received more than $5 million in

bonuses much paid for work reform when citigroup was on the search of collapse. i don't raise the issues to suggest that mr. free froman has done something wrong or complied with the tax laws. i believe he has complied and he is lived within the law. instead i simply want to point out what appears to be hypocrisy on the part of president obama and this administration. the president's rhetoric seemed to investment in outsources and wall street bonuses are not bad policy but mormly wrong. -- morally wrong. it doesn't seem to apply for the nominees for cabinet position. as i said during the tbait, the american people are essentially being told they should do as the

above administration says not as they do. that inspire a lot of confidence to say the least. that said, i do not believe we should let the administration's contradictory statements distract us from trying to help grow our economy through trade. indeed the u.s. trade representative is a vital position. and despite any disagreement i might have with the obama administration rhetoric, i believe this nomination should be concerned on the own merits. the trade is the engine of economic growth. since the end of world war ii, they helped pull millions of people out of poverty while creating enormous opportunity for growth here in the united. unfortunately, it appears us though u.s. trade policy has been adrift. submitting trade blank black for far too long. and now we see they are working

on very good agreements. and while new and potentially meaningful negotiations have been launched by the administration not one seems close to successful conclusion. i'm counting on you to straighten that up. this is do both to a lack of real leadership and the fact our trade negotiators have the tools needed to do their job. for example, trade promotion authority expired in 2007 as the chairman pointed out. as a result, our trade negotiations lack the authority necessary to negotiate and conclude new trade agreements. and unfortunately there's been no real effort by president obama to secure tpa improvement. members of congress fought to fix the problem. we push for a vote on tpa renewal 21 months ago. unfortunately it failed largely due support from the democratic colleagues. it shows that presidential engagement on tpa renewal is vital.

without the president's active leadership and public support for tpa, it's hard to see how recurrent efforts to renew trade proportion authority can succeed. we must succeed. today 95% of the world's customers live outside the united states. they account for 92% of global economic growth. at 80% of the world's purchasing power. if the united was falling behind as we fight for excess to the markets. fortunately the u.s. has a number of promising initiatives underway included transpacific partnership and negotiations with the european union. these improvement must be comprehensive and property rights protection and provide mean lful market access for exporters. and pursuing these initiative, i hope the administration does not lose sight of the importance of our effort under the officers of the world trade organization including expansion of the information technology, and government procurement

agreements and conclusion of prou bust agreement on trade, international services, and trade facilitation. each of these represents an important opportunity to further advance trade and grow our economy. during our march hearing on the president's trade agenda, i called on the president to nominate someone to serve as the united states trade representative who has the trade expertise, political savvy, and skills necessary to effectively meet the agency. our nominee today certainly appears to meet that test. i'm pleased that you're willing to do this. you have served most recently as assistant to president for international economic affairs at the white house and multiple senior economic roles under private prior administrations. i intend to support you. i wanted to ray the issue because of the hypocrisy involved certainly during the

last election. i want to thank for holding the hearing today. i look forward to hearing from him. >> thank you. it's customer mare for us to the nominees to introduce their family. >> thank you very much, mr. chairman and ranking member hatch. it's my pressure to introduce my wife, nancy and chi it's ben's last day of school. he may leave the hearing a little early. >> ben, sara, nancy. do you mind standing? so we all recognize you. [applause] and good luck, on your last day. [laughter] knock-em dead.

as froman, if you thank you. all the member of the committee. thank you for the kind introduction. i'm humble by the confidence president obama has shown in me by nominating for more the position and grateful to be considered by the position. i want to thank my family for the love and support they have given me to make possibility of service real. i also want to thank my parents and recognize how much dave meant to me and contributed to me. i mother was an elementary school teach, a cub scout leader and active member of the pta. my father was an immigrant who fled germany, grew up in israel, came to the united states to go to school, started a small business and. my parents taught me the valuable of hard work and education, the importance of giving back to our community, and the privilege to serve and

work and improve the world. i wouldn't be who i am today. and certainly wouldn't be here today without them. in recent weeks, i've enjoyed candid discussions with many of you about trade and america's broader economic challenges. there's a long tradition of close cooperation between the finance committee and u.s. gr. that's a tradition i plan to continue if confirmed. if president obama has made clear, our number one role must be to invoke growth, create jobs, and strengthen the middle class. i see the vote in the effort to be threefold. opening up markets around the world to expand our export. second by leveling the play field so people can compete and win in the global economy. third, by ensuring that our trade right and trade laws we worked so hard for are fully implemented and enforced. i first had the opportunity to work with usgr as a white house fellow under george w. bush and

president clinton and president obama's adviser on international economic affairs. it is clear to me that usgr is a special place. professionals example fie the finest tradition of public service. they work hard, they are nimble, they bring intellectual rigor to the mission and get things done for the american people. if confirmed, it would be an honor to lead them. as we speak, u.s. gr staff are busy negotiating the transpacific partnership. they are consulting with you on the upcoming negotiation for transatlantic. they are work to energize trade liberalization including on trade failation. all of these negotiations are designed to strengthen the multilateral rules based system. it's better to secretary jewell

at the center of networking of agreements creating free trade with 65% of the global economy. it is among the most ambitious trade agenda in history. trade is also a powerful tool for development and if confirmed i look forward to working with gsp and finding innovative ways to facility trade and regional negotiation across the developing world. it can only work if it's fail. we are committed opening markets and enforcing trade right and law. american workers are the most productive in the world. they deserve to compete on a level playing field. the administration made enforcement a top priority. trade policy fulfills the

potential when reflect congress and the wide range of stakeholders. in that regard, if confirmed i will engage with you to renew trade promotion authority. it's a critical tool. i look forward to working with you to craft a bill that achieves our shared goals. if given of servingly do everything in my ability to promote the interest of workers manufacturers, service providers, our innovators, investors, and consumers. thank you for considering my nomination. i'm happy to take your questions. >> thank you. we ask all nominees. is there anything your backed might present conflict? >> no, sir. >> do you any reason or person otherwise that would fully -- to which you have been nominated?

>> no. >> do you agree with our reservation to respond appear at testify before any duly instituted committee of congress. >> yes, sir. >> lastly we add -- reasonably. do you dmoit provide a prompt response in writing to any questions addressed to by any senator in the committee? >> yes, sir. thank you. our other countries that we are negotiating with would like to have confidence in agreement you reach. the united states reaches i'm pleased you said you're personally making trade promotion authority and engage congress to get trade promotion authority passed quickly. does it mean the president is himself rerequesting renewal.

>> yes, sir. >> the president asking for tpa -- . >> yes. >> good. there's been some question about this. the opportunity to clear the air a little bit about the cayman islands investment. yo tell the committee, describe the fund, how you came to invest in it. the money earned, et. cetera. what happened? >> thank you, mr. chairman. when i was in the private sector i had the opportunity to participate in a employee program to invest in international fund. i didn't invest because where it was located. i invested because it allowed me to diversify my port portfolio. my understanding is investment partnership fund all earnings, all gains or losses or passed on through a k1 to the individual

investors. i paid every penny of taxes due on the fund. i'm out aware of any tax benefit i received by investment in the fund. legitimate question about the investment practice -- several raised questions and if you can just again tell us your investment is -- all taxes paid nothing of any illegal nature has been . >> i'm not tax expert. i can't speak for other activities in cayman islands. all i can say with regard to the kind of fund, all the gains and losses of the investment are passed on to the individual investors through a k1.

i forward it to the accountant and pay every penny of taxes on the investment. >> can you talk to us a little bit china? there have ban lot of articles lately particularly struck by article sunday review section of the "new york times" how china is aggressively investing worldwide not only direct investment a member of figure that chinese loans last year exceed world bank loans for that year. and real concerns the playing field not level with china. the united states is more open. smithfield investment is an

example. china does not take one ounce of beef what leverage tuesday this country have? what leverage can you as the usdr undertake the help level the playing field. i don't think anybody wants to china-bash. we don't want to be taken advantage of. could you help us indicate what your policy would be with respect to china and how we leverage so we're not just talking. we're doing something constructive. >> mr. chairman, probably no greater issue is on the trade agenda than our relationship with china. cuts across so many different issue. we are engaged with them through sort of different mechanism from the highest level to president on down to the strategic and economic dialogue and commerce

and trade. through the g20 through the wgo. the imf that creates an unlevel paying fleeld between us. we are focused on making progress whenever we can in terms of pushing for further domestic reform on china issues like liberalization reform of the financial sector, reform of their enterprise sector to ensure that our companies that are competing against enterprises around the swrorld a level playing field in which to operate. we work through the enforcement agenda. we brought eight cases against china over the last four years for manufacturing to agricultural to services at the wto. we brought the only 421 case with regard to tire and see sector in the u.s. rebounding. we have to use every tool at our disposal. the by lateral result oriented dialogue.

our enforcement mechanism necessary to ensure there's a level playing field for our workers, ranchers, and farmers. >> more time to pursue it right now. but i urge you to once confirmed to spend more time thinking about this a playing field is not -- we have to start standing up for ourself and the country. more than we have in the past. it means leverage. they only do a leverage if they have to. and if you're going have to figure out a way working with the committee and other committees with other entities to help figure out what the leverage is again in a constructive way. if we leave this untended it's going get worse. >> thank you, mr. chairman. the senator from north carolina needs to leave. so i'll defer to him and maybe get my time back later.

>> i thank my colleague, and mr. froman, thank you for coming to my office and the conversation we had there. i will assure the chairman i'm going ask one question. i think it's an easy question. i need a specific answer. you and i talked at the time about the fact that a poorly negotiated tpp agreement could result in a loss of hundreds of thousand of u.s. jobs in the textile industry or related industries. specifically in my state of north carolina, about 35,000 jobs would be in jeopardy. so when we talked last month, you said you understood the importance of the tpp's textile provision for the u.s. i'm going ask you if confirmed as u.s. trade representative, will you support the yarn rule of origin that prevents countries that do not participate in the tpp agreement from getting in a back door entry to the market? at the intense -- expense of

those u.s. companies. >> thank you, senator. thank you for your leadership on this issue. the short answer is yes. the longer answer is, we have made clear that with regard to text tiles, we need to have clear rules of origin with yarn forward center. we need mechanisms to ensure there is a transshipment. we need work with our colleagues and other agencies including cpp to make sure that there's enforcement mechanisms to ensure that people aren't using other markets to convert the text tile restriction. the yarn forward rule is a essential part of our approach to text tile. >> thank you, mr. free free free froman. >> that would be great. let me say this, usdr is an agency in cry spins the office of personnel management conducts an annual employee survey to --

you know, evaluate staff and satisfaction and government agencies. in 2012 study found usdr placed last among agencies in effective leadership. as shown on this chart. [inaudible] which is disturbing to me. you may well tee me it's a result of strained resource. it's been continuous since 2009 as you can see. the best place to work. you can see there from those charts, and especially this case the score is almost half of what it was in 2009. and the study declineed is

really concerning to me. what in your opinion is required to effectively lead the agency? i intend to restore staff morale at usdr. >> thank you, senator hatch. i agree with you about the importance of staff morale. if would be a high priority of mine if confirmed to focus on it. my experience is that staff tends to have high morale when they feel like they're working on something important. their work is valued. and i believe the trade agenda we have discussing this morning and the president laid out with regards to tpp, t tip, and dwoasheses going on in georgia geneva they work on give it a sense of mission and give us the opportunity to make improvement in morale. resources are an issue, clearly. but i think the combination of being able to secure adequate resources and focuses people on the importance of the issue they

have before them and the centrality of that mission to the administration and the country's overall economic agenda will be important in turning around the line on the chart. >> i have a high opinion of you. you come well recommended. there's no question about your dedicated sf and your intelligence in my eyes. i'm glad to hear today the president is formally requesting tpa. i think it's about time. i can't imagine any president not wanting that. i've been -- your comments are welcome news as far as i'm concerned. i look forward to the president's active support. you can make a lot of headway with me he'll get active in the area. we are falling way mind. other countries are moving ahead on trade agreements, we're kind of slipping. so we're counting on you being very energetic. i don't know how you'll stand to

be away from the cute kid that you have and your wife. but you're going center to do it. we appreciate your willingness to serve in this capacity. >> thank you, senator. thank you. i want to pick up on your point, mr. chairman, with respect to enforcement as we begin, mr. fromman. we have talked. we believe that the country needs vigorous proactive approach to identifying and remedying unfair trade practice. that's what our businesses deserve, that's what our workers deserve. as you know, our solar industry has exercised its rights to obtain an antidumping order on chinese solar products. they responded by invading the order and unfairly retaliating against our producers in the global solar supply chain. china acted similarly. as we talked about, our government can't resolve this on

our own. we have to have a global settle. we have to have an opportunity for governments to discuss this with china and europe. my understanding is the administration are engaged now with the party, china, europe to the goal of forging and agreement that would end the retaliatory chinese cases and would level the playing field for america's producers. my understanding is that you support those efforts and you are one of the leaders in those discussions. can so you just share your view? >> thank you, senator. thank you for your leadership on the important issue. it's an critically important issue. it brings together both the enforce ofment of seeing further dwo. clean energy, and the importance of leveling the playing field our producer of clean energy products can participate in the growing market. it's one of the reasons we have been active over the last few

years in bringing cases related to clean energy involvement. we brought a case to the wto against india's localization policy in the solar area that kept out our producers. we brought the first section 301 case in fifteen years against china for wind subsidizes and got them to drop them. this involved the supply chain as you said. silicon makers, solar installers. as you said it involves not just the u.s. but the european market. i want you to own the negotiations if you are confirmed. it's a hugely important issue.

we have got to be able to be producers in the renewable energy field. question two on transparency. as you know, i feel strongly about this. we talked about it particularly we saw in pipa sopa debate how strongly the public feels about this. if confirmed, will you make sure that the public in the areas where there's a significant public interest, get a clear and updated description of what trade negotiators are seeking to obtain in the negotiations so we can make this more transparent in the future? >> yes. i think it's critically important that we have very good transparency and consultation between the administration, between congress, key stakeholders, and the public at large. as you know, we brief this committee's staff on every proposal before we table it it any negotiation. we get their input and feedback. we have robust program of making

available to the committee of the senate and house the text of negotiating proposal. >> let's plan to talk about it more. i would like it to be online so the american people can be a fuller partner in the debate. let me ask you about one ore question. question netically injured wheat recently discovered in an unexpected location in oregon. the agricultural authorities said that the wheat is safe. as you know, an investigation is going on right now. what i'm concernedded about is some of our trading partner unfortunately responded by suggesting in the meantime they are going to discriminate against america wheat imports. and do it despite a lack of evidence there is a problem with this question question -- i would like you to tell us if confirmed will you use all the tools you have to stand up for

america's agricultural exports so they don't face discriminate treatment in the foreign markets? >> yes, senator. >> thank you, thank you, mr. chairman. >> thank you. senator. i read articles repeatedly i think your answer really explains it. it's negotiations are fully transparent with respect to members of congress and the staff. i encorning you to keep it up. nothing worse than american people thinking something is being secret. >> absolutely. thank you very much. next is senator carden. >> thank you, mr. chairman. mr. froman, thank you for your willingness to serve the public. we thank your family. we know it's a family sacrifice. we thank you for that.

i want to first talk about your position on strong human rights labor and environmental as we look at expanding trade opportunity. having stable trading. we have been able to make advancement on right through trade agreement. when the last tpa were negotiated there were certain provisions put in the tpa to guarantee the right to organize. ..

or whether it's things like the open government partnership, which focused on good governance, transparency, anticorruption and accountability. i look forward to working with you on those issues. >> and i agree with that, but i would -underscore the point in trade agreements you have opportunities that aren't available at other times on the other opportunities to advance good governance we need to follow up. but we been able to make tremendous strides we have been that negotiating tables and particularly when you look at

tpa to negotiate on our country. i would urge you to work with as, be open to opportunities where we can advance these goals. i want to talk a little bit about tpa. i was in asia this past week and had a chance to talk to some of the countries involved, particularly japan. but i heard your response to senator burr as it relates to the guard forward issue and i certainly support that position. let me just point out their other issues involved. and maryland we have sued manufacturers facing a difficult circumstance because of the tariff issues on the importation of wool. thursday will trust fund would need to modernize the new foreword. are you prepared to work with us as we look at these trade agreements to make sure we have the appropriate programs in this

country of to do a fair competition for u.s. manufacturers? >> at the senator, we understand the sensitivity of this issue is an look forward to working with you on that p. at >> one other issue deals with heavy trucks. we have all the mac and maryland, mack truck makes heavy tracks and is concerned in the agreements with colombia and panama is a five-year schedule for the elimination of the terrorists. mexico has moved more aggressively. i think it is zero between colombia, panama and mexico. the reduction of the terrorists of these other countries. would she be open to advance an acceleration of the service would certainly help u.s. manufacturers? >> there is a process for terrorists and a registered

notice that i ask you for comments and ideas are ministries that would like to see that done. i'm happy to look into that. [inaudible] >> make sure we have that clear. thank you, mr. chairman. >> thank you, mr. chairman. congratulations on your nomination. your record is outstanding. i wish you the best in your service to your country. a couple specific questions to business in the united states of america. the trade representative has the opportunity to right wrongs when you negotiate with people you the opportunity to correct things that have been bad in terms of past practices. in the case of japan entering the negotiation raises the question of great interest as you probably know life insurers have been working under agreements with the japanese government for years to the tune of $66 billion in terms of life insurance. japan through this posted

insurance with a major competitor with those life insurance companies to the detriment and with preferential japanese government. where you engaged in the tpp negotiations? are number one priority was to level the playing field. that has been tilted in favor of the government own entity and we need attention to that matter. we commit to this? >> yes, senator. one of the key issues was to address insurance access issues. they reached an agreement upfront on part of that issue and agree to a loan association noninsurance beyond what is in the tpp agreement, will address the bilateral issues as japan and the insurance sector as well. >> thank you very much. i appreciate it. when you're in my office we talked about africa am not sure what 11th hour with the

extension and opportunity act. this comes up for renewal in 2015. we really can't afford to wait to renew the go act. what is your gauge of timing lights another? >> son and heir, in august of this year and have confirmed that i.t. is that it's an opportunity to start a process of looking backwards and see what's worked or could it be improved in working with this committee and appreciate your leadership on this committee with regards to africa to make sure there's a seamless renewal prior to the expiration in 2015. >> thank you. the chairman made reference to china and remarks. this is important in that relationship. where we can trump china is money and with the african

people is a rich environment for the products in advanced technology and agricultural products in the lake. africa is an important part of the economic prosperity in the future. i hope you will focus on. lastly, my last question is with regard to the free trade agreement with south korea and the breakthrough line voyage to cause criminal penalties to be like contiguous criminal penalties in terms of intellectual property theft. are you familiar with? one of the biggest problems we've had with asia was effective intellectual property going into movie theaters come recording the event taken it overseas. the south korean free-trade agreement had a breakthrough agreement in their to criminalize on a parity with united states law. when he worked under the same thing as other agreements come up? intellectual property is

tremendously important for business and economic growth industry. >> we very much agree about the importance of intellectual property rights protection and want to strengthen those around the world come including taking on new issues like cybertheft is part of that trade secrets issue. >> thank you very much. best of what to you in your new position. >> senator brown. >> thank you, mr. chairman. i want to start to a little bit about too big to fail in a trade representatives involvement in that. wall street and industry friendly european regulators are now seeking to use any means they can to roll back reforms from basel three and what we did with dodd-frank, seeking to include in the u.s. e.u. ongoing negotiations at the trading investment partnership.

european finance ministers want to stop some of the derivatives rules. earlier this week the business business -- and so mice unilaterally disarming ourselves in addressing too big to fail. do we need strong financial rules in these negotiations and refraining from a race to the bottom clicks >> first of all sanner, there's nothing moolah to do a trade agreement to weaken our financial regulation to rollback dodd-frank are the efforts of the administration and congress working for the last four years and other mechanisms to raise the standards around the world. with regard to the transatlantic in particular, financial services for regulatory issues. our view is the market access issue should be part of the trade negotiation but after the

financial crisis, there was an explosion of activity among regulators bilaterally between the u.s. and e.u. and also the pis, fsb in our view is that workouts you can do new and parallel alongside negotiations towards a resolution of the issues regulators are working on an ideally at the end will be able to see across the whole relationship what progress we've made. we are not going for a trade negotiation. >> you can assure this committee and the senate that it needs large-scale regional trade agreements others the u.s. e.u. agreement for the tram line that we will not undermine any financial regulators, fdic, said, treasury can any of them. let me ask something else.

doesn't agreement like this need investor state dispute resolution? i understand dealing with countries that have not had the history of the rule of law and investor protection and public enforcement and all of that. to be made in extrajudicial and private enforcement system when you assume the property rights are sophisticated and advanced already? >> senator, we are in our 90 day. it is not launched negotiations and are in the process of taking input and feedback from members of congress come stakeholders and others. i think this is a topic worthy of discussion as part of the consultation process. our goal in these agreements is to try and establish the highest possible standards in new disciplines where appropriate to raise the overall level of the global trading system.

how that gets translated as an issue any to consult on. >> to think investor state transitions and property rights group of countries like the e.u. than in a trade agreement with neither side with latin american countries? >> at another position because i want to thank how there may be different legal regimes and what impact including or not that he might have on our desire to raise the standards overall. >> let me ask in another direction at a recent study by the peterson institute found that half or more, the extent to which current joblessness exceeds the full employment levels and curves manipulation by foreign governments estimate up to 5 million job -- the figure of 5 million job losses are a result of that to the national association of manufacturers said they spare no effort to see current date our

market determined and free of government intervention. 200 plus house members sent a letter to the president, saying -- talking about currency disciplines for tpp. there is significant sentiment on this committee. there are five sponsors. five of the six original sponsors representing both parties are on this committee of my currency legislation that passed overwhelmingly. there's interest in doing something on currency on fast-track or tpp. what will tpp do to address the currency manipulation, which unquestionably violates rules that have gone on address? >> first of all, thank you for your consistent leadership on this issue that's obviously very high on the agenda.

it's something we raised as an example of china and every meeting any level with regard to currency policy and push them to towards more market oriented exchange rates to allow adjustment and not to engage in competitive devaluation. the treasury department has laid on such issues, but if confirmed to determine how best to move forward on that. with regard to china, there's been some modest progress and they came into power, came into office. in june 2010 after several discussions we began to let it appreciate. it's appreciated 16% of real terms than, not fast enough, not far enough. we need to continue to press every occasion and we defined each step in the way the most effective way to make progress and were happy to continue to work him out with. >> thank you, senator.

>> thank you, mr. chairman. at thank you, mr. froman for your willingness to step forward and take on mr.'s possibility. i think your family for their sacrifice as it's not easy. i had three kids under 15 when i had that job and it does require a lot of travel, but as bob strauss were in the attack to the ustr and he said don't confuse travel or motion with movement, meaning you can do a lot without traveling a slow and i'm sure you have figured that out in your current job. you've got a great team there. it's a terrific team of committed professionals. unconcerned about what what senator hatch laid out come a wrote crisis of morale. he talked about a sense of mission. i think that is important. by the way, when you look at the survey it goes to leadership and

i think tpa is part of giving you a mission. in other words this administration has not asked until the trade agenda this year its current difficult to make progress on these issues. i would argue in the five years the u.s. has fallen behind substantially. senator baucus talked about this earlier. we need to get it done to have the opportunity not just to work on tpp, but also make more progress and agreements for remake the most progress of barriers. can you give personal assurances to the committee today that you will indeed he involved and engaged in trying get trade promotion authority through the congress before the end of this year? >> senator, absolutely. thank you for your leadership in continued support of ustr. we are ready to engage work with the committee.

>> you will personally engage in that? of those in the report, there hasn't been and engagement. in terms of japan's solid on the question from ohio in terms of currency come in the broader we have is in terms of autos and specifically the one vehicle to japan for every 130 vehicles be imported using a sad because it's been a bunch of the papers. i got it out of roll call today about the u.s. .3% market share in japan. it's not just about small vehicles, by the way. it's about currency. it's also i would ask you how well negotiations with japan parallel to these tpp talks. what are you going to do in terms of dealing with this currency issue, which is critical. since october last year began as we can make 30% and a $6000

advantage to japanese vehicles by $30,000 car. so this is a big deal to the big three in the united states and they look for a level playing field. can you tell us what you are doing with regard to this issue and other issues with japan on the tpp agreement? >> thank you, senator. this is an important issue as part of tpp. before we agree to let japan join tpp, legation negotiations with them about insurance and important autos. we reached agreements up front, both with regard to getting increase access to market, more than doubling other php program for accelerated imports. received an agreement about how tariffs would be treated before they jointly agreed in terms of reference for a parallel negotiation on autos, which is

binding and part of the overall tpp process. we have ongoing work to japan may also have the tpp process to allow us to do that were. >> you'll be personally involved in now. with regard to india quickly we have a lot of concerns about what's going on today in india, especially access bears, protectionist measures. one is the lack of respect for patents. he probably sold to someone in your current job. asic intellectual property protections have been set aside, even validated drug patents as they say. these actions are fundamentally disruptive to innovation and frankly it major concern because it can spread. in ohio loves our experts have shrunk over 5% after years and years of steady growth it is an issue with regard to india.

i ask you if confirmed if you engage with trade issues at what i think is a critical time. >> absolutely, senator. >> mr. chairman, my time is coming to an end. and a lot of other questions for you and i will supply those to you as qr fires. i appreciate your stepping up and taking on this job. there's lots of challenges but tremendous opportunities for trade promotion authority is a tool you can use to open up foreign markets to workers and farmers and ranchers. >> thank you, senator. mr. perlmutter, that's a good point to and on. since i've been on this committee, i cannot think of the more important and challenging time for the ustr that now. challenges are so much greater. competition is so much greater. the need for more creative come

to effective action is so much greater and i'd like you know you have the full confidence of this committee, working with you to accomplish the subject goods. we don't have much time left as a country. we have to work even harder and more creatively for kids and grandkids if for nobody else because we want them to have the life we americans have enjoyed so wonderfully and only happens if they rise to the challenge. their sense of issues here which have been addressed. one is ip issues senator portman raised. this is becoming more and more of a worldwide problem of china, india and other countries. i urge you to think more creatively than predecessors

have. they've done well, but she's got to step up and do more. extrema well-qualified and you're the man for the job. we want to work with you and hopefully that will address other issues raised to chronicle it up or i'll add ustr. i think we can go ahead and do a follow-up on what we talked about here today, you'll find a team down there. they want to really get the job done and it's up to us to do that. so work with us, let us know what needs to be done to hopefully get you confirmed right away so you can be on the job. >> mr. chairman, i see senator hatch, too. i had two brief questions additionally.

>> just a few questions regarding india i would like to ask. one of the largest recipients of benefits is not the largest. you'd india increasingly shut u.s. companies out of markets with a variety of measures, including restricting of import products to force companies to manufacture in india forcing companies to give intellectual property to indian companies for local employment in engaging in preferential market access policies that give preferences to domestic companies over u.s. companies and communications technology space. we must consider whether india has provided applicable and reasonable market to benefits. india will continue to enjoy gsp

benefits furnished as u.s. companies that of its. >> thank you, senator hatch. gsp has multiple purposes. some is for development, some u.s. firms wine imports from gsp countries for their production, so we need to look at multiple asset, looking not in gsp expires the end of july. i look forward to record the committee, but happy to sit down as well talk about what reforms are appropriate. [inaudible] >> with regard to india specifically, there's the numbers concerning developments regarding innovation and investment environment and you mentioned a number of them. >> i'm very concerned that the deterioration environment for protection. the government of india continues to take actions to make it difficult for

pharmaceutical companies to secure and enforce their patents in india. for example, very disturbed for india's decision to issue compulsory license on an entirely specious grounds. also counterfeiting and piracy continue to be rampant in india and the government enforcement efforts remain weak. given that negotiations have not born fruit, what specific steps which you take as the u.s. trade representative to bring about improvement in india's anti-ip policies and practices and should india have access to gsp benefit considering a factor for consideration is the extent to which india is providing adequate and effective protection of rights. >> senator, first we should make sure we use tools where we can to press india to implement ip are protection obviously on

localization for solar panels on my work with industry to determine how best to address specific issues that you raise. with regard to gsp, we got to sit down and think through what reforms make sense going forward, including how to do with issues like this. >> the united states may enter into a bilateral investment treaty with india and contemplation of such a treaty, which you please let us know how many investment issues are pending on whether india has been inviting investors stay commitments with other nations as well. could she do that for us? >> yes, senator. >> let me ask one other question. while the online marketplace is critically to u.s. creative industries, it hast made us all potential because of rampant on and copyright theft.

i ustr, what additional steps will you take on the online space and commerce? >> this is a key enforcement priority we made in the so-called victorious markets report, part of our special 301 process begun in china were to such website were a ramping project being sold in the minute she shut this down. we want to use enforcement tools available to us, including work of the interagency trade enforcement center to put together cases where appropriate with the consultation with industry to go back to practices like that. >> images ask another question. question. by february this commission created the international trade enforcement sanner and in large part to improve efficiency in bringing trade actions. it's been nearly 16 since i took

was created in asinine if you could tell us how it's been working and how is efficiency been approved? are there any changes you would recommend or make does she think would improve effectiveness? >> thank you, senator. i attack is gotten off the ground and is doing quite well. its copies from other agencies of the department of commerce, treasury, justice, usta state and others and having subject matter experts, language experts on the same place has allowed her to put together cases we couldn't put together before. i'll mention the expert base case against china at the wto literally had to piece together the puzzle of several hundred provincial regulations that showed a picture of extensive export subsidies for auto and auto parts they would have been able to do that without resources working together in one place. were very pleased with the way scott started.

we're grateful to the department of commerce and other agencies for putting up resources and help them get it off the ground and we hope working with this committee and others going forward that enables it to be properly resourced and continues to strengthen it. >> thank you. i'll submit my other questions you can answer them in writing. senator carper come you are next i believe in and i'm not sure who is after you. i think it is senator carper in the sanner kc. >> thank you, mr. chairman. i've been another meeting on immigration reform and i see your sons and a daughter made well-done neo. how old are they? >> and is 11 if there is two and a half. >> the fact that they showed up with you is i think a compliment to them.

when my boys about 22 at a colic spent time in the worked for about half the year they are in clean energy issues and so forth in a really challenging times with a good experience for him. we have to visit again and learn more about the country threw him into our own time there. a number of my colleagues have argued raise the issue of india. as you hear today the real concerns are important. we get along well and work with into part aren't a lot of ways what issues are i.t. aviles here. the house is very mindful of those. the other thing i would say when people ask how to make the economic pie figure for the united states might talk about investing in three areas. one is in a world-class workforce in the second is to

invest in infrastructure in the third area is an r&d commercialize to create products goods and services sold all over the world. it also does the same things with tax policy working with our spending policies in those three areas. another thing important to do is make sure when we create products and technologies we can sell them if they're hard to get into. the job you take on here you've been nominated for and i'm really grateful to you in your case. thank you for letting him do this and share her mother country. i was impressed when i met with her husband. he said he think i'm smart, you should talk to my wife. we're grateful for that. i obviously believe trade can be

leveling the playing field and global marketplaces. however enforcing the rules on books is fair trade to competition. this administration under the leadership of ambassador curt took steps to ensure strong a force that was a key component to the trade agenda and at a time when u.s. poultry industry sees the reason i'm interested there's 300 chickens and other states as well. it's a big deal for us. at a time in u.s. poultry industry sees key markets close as a result of an scientific tariff barriers this year come year after year, can you assure us that ustr book to new the important work of enforcing the rules on the books? >> yes come enforcement has been a priority. we pride 18 cases to date,

including some in poultry. against china for some of it views than laws against our poultry exports and will continue to focus on those as we move ahead. >> and a related question, but at the same time can you ensure a seat the folks work to address existing barriers for poultry industry through agreement, particularly the transatlantic trade and investment partnership were working on? >> yes, senator. we make roux to our trading partners the standards often used as trade barriers need to be addressed with these agreements. we've made some progress in the run-up to the negotiation through confidence building measures and as we complete the 90 day consultation period, certain this will be on the

agenda. >> one last question. in terms of what we can do to help you in the folks at the office be worth it to come a short to-do list, please. >> senator, on many of these issues whether it's tpp, the geneva negotiations, ensuring that trent orr has what it means. we look forward to working with this committee. we're working closely and it's been a long tradition of a plan to continue it. >> i'd like for the record to indicate. i could barely see mr. froman's wyatt's lips move when he spoke. we are grateful to you, nancy for sharing him with us in our country. >> thank you very much, senator hatch. thanks for your willingness to

serve. it's a great command here making, so we appreciate that. i want to ask about two areas. one is the question of tpp in japan and our debate about autos. i want to start with a question about competitiveness and intellectual property. we all know the nahb pad for a long period of time because of our great that we rely on the ip thunder cars the advantage we have and i know it's of great concern of people in both parties. there's a real concern going forward were not quite have the protections we should have her own intellectual property. you see numbers like this and

when it comes to a particular product that can cost as much as $1.3 billion of investment on average in 10 to 15 years of work to develop itself. i want to make sure we have a strong set of protection as possible and we're fairly broad based agreement on as long a term of possible -- of data exclusivity, h. louviere consensus i would argue. we just want to ask about your work as trade representative upon confirmation, we work to make sure we have is protections in place for that term of yours? >> senator casey, i fully agree our innovation and ingenuity has been an essential part of our economy and we need through our trade agreements to ensure we are protecting intellectual

property is the highest possible standard. through tpp, we are working to ensure their standards for property protection only begun that process with our tpp partners explain what's in law with regard to data protection and why it's in there and that's part of the ongoing discussion are having now. >> it's hard to embrace what it in a strong consensus here and throughout the country on the maximum protection possible. the second question is one i know that you've address if not directly today, certainly has been raised and that is the question of japan and the auto industry on whether or not after many years of efforts to open up the aftermarket we've had a

judgment years of frustration, which i think creates a predicate for skepticism when it comes to tpp and whether or not with tpp place will have the kind of access to the japanese allowing their market to open up. i want to get your views because it's a major issue for a lot of people here as it relates not just to tpp, the broader trade policy. >> senator, i don't think there's anybody who cares about the auto industry or has invested more than president obama concert by the direction i've received from him to ensure what were doing gives us the

opportunity to protect the auto industry in terms of getting it back on speed and gives us the opportunity to build going forward and that's how we've made such a central focus of ours in the run-up to japan's proposed entry while we agree that certain provisions that give us more immediate access as well as how we do with their own tariffs in the context of tpp. the preference for auto issues going forward, but also make sure we have enough measures here as well. that is very much part of the overall effort. >> amount of time. i just for the record say there's a lot of skepticism about the ability to open up markets and they look forward to working with you on it. >> thank you, senator. senator is geared

>> thank you, mr. chairman. mr. froman coming out here consist in issues that i have a raise today and that i will raise upon your confirmation. and that is the intellectual property rights protection. the united states is a global leader in this respect and if we create to the intellectual capacity of our nation products and then they can be subverted worldwide. it's really an undermining of a significant part of our economy. enforcement because to the extent those of us want to put those on trade agreements because we agree the enforcement provisions that we provide to ensure that the agreement is going to put us on a level playing field will compete against anybody in the world, but not if they have disproportionate standards,

standards for the buck to, but they do not. certainly the impact of our trade agreements and national security and economic interests. upstairs and chairing a hearing on one of the worst tragedies we have had in the manufacture of clothing, which is the pause a tragedy. i asked representatives, including the department you would had how many of our lives to be lost before we act? my understanding is there has been a petition before the transfer reviewing labor rights issues since 2007. six years. we see no real progress.

the positions you have including with gps to encourage a country like bangladesh with others to improve its safety and worker rights sufferers. >> thank you center for your leadership on the issue and leadership committee as well. the tragic loss of life in bangladesh has very much on the agenda as he got a pending before ustr and ustr intends to act on that over the course of this month that there's currently interagency discussions how best to proceed. so if confirmed this is something i look forward to delving into an working with you on. >> my concern is six years. maybe had we acted, we would not have seen is people died because sanders would've been raised,

conditions would've been improved. labor rights would have been absurd. i hope what will get from you is when it is merited a robust effort, only the president can make that decision comment during a key position to make a recommend nation, so i hope to make that kind of recommendation. second man intellectual property rights, i don't mind piling on as it relates to india because they are piling on u.s. companies as it relates to their intellectual property rights. i have been hearing from the pharmaceutical industry, from the high-tech industry and other industries about how india's inadequate protection to put it mildly is a real challenge. and the pharmaceutical industry they say it's about access. it's not about access because

they could observe the patent and negotiate prices. so it's about protecting the generic industry at the expense of the intellectual property in the united states to create medicines that save lives and improve the quality of lives. i would like to hear from you, how do we have in fact intend to enforce because india is only the present example, but there are others. china, you know, a company in new jersey produces the manuals for the u.s. and across the world. they are with impunity taken by the chinese. if countries see no consequences and begin to emulate india's actions on that sector is, what actions can the administration

take to convince, for example, to ensure the fruits of american innovation are protect good and what you plan to do. >> are concerned about the environment and you mention some the issues and patent issues, preferential market access, these are issues that need to pursue. secretary kerry will be there later this month for strategic dialogue and i'm sure it will be brought up there. it came down to the possibility of enforcement as well. we brought cases when we have thought this would be the best way to resolve issues. >> if i may, mr. chairman, you

are very erudite on these issues. i have no doubt about that. i also think you're very diplomatic in your responses. i want to see a trade representative who at the end of the day is going to stand up for u.s. intellectual property rights worldwide so that the benefits of their creative abilities of americans can be preserved while while they can receive resources from it. i hope your diplomacy will have won it because at the end of the day, we diplomatically been losing a lot of ground across the globe and that is not in the interest of u.s. come in to come a u.s. citizen at the end of the day our economy. thank you, mr. chairman. >> thank you very much, senator.

senator thune. >> i want to thank you and never ranking member. mr. froman coming thank you for your willingness to answer questions. be on a trade is an incredibly important part of our economy an extremely critical when it comes to improving america's competitive position in maintaining a high level. you and i have talked about this already. by my view, one of the best things we do to open their markets would be to successfully conclude transpacific partnership and agreements that will follow. we need to enact trade promotion authority and i am heartened by your testimony that this is something attempt to engage with the committee and if confirmed renew and i understand the chairman got the formal request, is that right, today for that? i hope so because we been saying this is important and there's a

lot of rhetoric, but it's very difficult, so i hope that is the first order of business. i want to ask a question that something important to a lot of the upper cultural producers and my part of the world and it has to do with a letter i recently spearheaded to the u.s. acting tradecraft along with 13 other senators expressing strong concerns about the e.u.'s recent decision to impose a 10% duty on all imports of ethanol from the united states. american methanol producers believe that the e.u. has done in imposing a countrywide on all u.s. ethanol imports is unprecedented and supported for medical standpoint standpoint it will completely close the e.u. to america not small. the question is will you commit if confirmed to carefully review action and will you pursue every available remedies to ensure

u.s. ethanol exporters are treated fairly by the e.u.? >> my understanding is trained or is reviewing the methodology for precisely the cited. >> one other question, earlier this week the president recommended legislative actions to strength and the enforcement of patents and his recommendations to corporate farms to the process by which the itc issues exclusion orders. we know there have been high-profile decisions recently. without any decision, the question is do you believe the current process needs reform? and if so, why? >> i'm not an expert in that area and happy to get back to you on it. >> i'd appreciate if you could. any comments on the e.u.-u.s. trade agreement or tpp? >> we are still on our 90 day

consultation phase with congress and stakeholders, but we think there's great potential they are to remove barriers, non-tariff barriers and express the regulatory standard issues that create unnecessary costs and obstacles to trade. we spent the last year coming year and half working the key outstanding issues are and we think there's a lot of momentum over there, not a political will to address outstanding issues. once we finished the 90 day senate and a process can have successfully look forward to launching negotiations. >> i'd like to address another issue that could not protecting trade secrets and trade agreements as they look to e.u. negotiations. they generally include confirmations that says a manufacturing process. unfortunately, theft of trade secrets, especially buyer for

foreign entities has greater global competitiveness and increase access and information to the traditional infrastructure that drives their information economy. i'm wondering if you could comment on that and what additional steps might be taken to protect americans. >> it is an important issue in the next generation of protection. we've got trade secret theft is now cybertheft is also on the tools by which trade secret theft goes on. is an administration wide strategy and part of what we do to our trade talks on bilateral dialogues is ensuring they have in place the necessary civil and criminal penalties as well so we can go after these practices and i'll certainly be a focus going forward. >> appreciate that. thank you, mr. chairman. >> thank you very much, senator baucus. let me ask a question about

footwear on a global value chain. you all are pushing for a 21st century are next-generation agreement, which sounds constructive to me in a number of chapters and i also want to see you out as part of that ugly provisions that would undermine the momentum needed to reinvigorate the global economy and this requires a look at the global value chain. research considerations, all the issues that go to the global value chain to define the operations of so many brands. if confirmed, will you make sure as part of the process come as part transpacific hardship negotiations who at the key areas that relate to this concern that the rules of origin of the terrace for consumer goods? >> has come a senator. we look at the issues. >> the other question i had deals with the internet. my view is the internet is the shipping lane of the 21st century. it has enormous benefits to

people on a day-to-day basis, but it's also reshaping the manner in which commerce is conducted. there aren't any asset today distinct global trade rules that ensure the digital trade doesn't base protectionists kinds of policies and there's a lot of concern about the big win on the episode the issue being unruffled as part of the discussion. what can you all do to make sure the digital economy gets the attention it needs to ensure the internet is free and open and global market, particularly for american digital goods and services. >> son eric, when we talk about the tpp agreement and trying to introduce disciplines for new issues in the global economy, digital economy is clearly one of those areas we have been focusing on.

so the tpp negotiations are seeking the free flow of data. we are seeking disciplines upon restrictions in terms of where people put their data centers and how x cloud computing is very much on the agenda of the e-commerce and digital economy is very much on the tpp agenda. >> one last question. on the tpp renewal question, are you outgoing or sent to us a proposal that represents your views on what tpa is all about or have you been issued not unfolding? >> obviously we need to consult with transport and others, but her intention is to engage this committee and the house ways and means committee as you work through tpa issues. >> saves and chairman bachus and senator hatch, in effect send a statutory negotiating goals so we can get a sense of what priorities are?

>> would've to work through, but were happy to engage with you. >> thank you, mr. chairman. >> thank you, senator. >> things very much for the second run, mr. chairman for sitting through this. we talked on the phone on the issue of state capitals and state capitalism and the market is disturbing behavior state-owned enterprises and we know that's an increasing problem in terms of these deeply entrenched state capitalism models that people of the impact on u.s. can edit it. this is a big issue, when congress did take about what they consider fast-track 11 years ago. can you assure me that they won't be backtracking on the whole issue of state on enterprises the further beginning to tpp negotiations that we are strong and forceful roles in the context to address soa? >> yes, senator. that is one of those new areas

of trade we tried to address putting disciplines that compete with private entities that they must do so on a commercial basis. it's also part of our bilateral dialogue with the chinese in particular about their reform effort in heliport and as for leveling the playing field for companies. >> you are ongoing bilateral investment discussion in talks with china. when they talk to you about the steel industry for a moment. a company called archie steel in ohio, west virginia, new york closed a year ago. several thousand people lost jobs. this is an industry where the most operating on thin margins to 3% profit partly because of the trade decision made by the administration. itc conference department over the last three or four years,

there is a $100 million expansion for works of usc, which i visited with last week. there's other steel investment. the problem is the negative business environment are seedbed margins are in large part because of increased imports of steel products an unfair trade practices. often chinese, sometimes others. would you file a case of china still subsidies? >> son on her, we need to take a look at the whole set of issues. i don't know whether there's a case at the moment or not. we brought a case against china in the steel sector on our grain oriented electrical steel duties in an appropriate way we won that case there were always

looking to find mechanisms for dealing with issues of an fair trade practices. if there's a case to be brought, they'll bring it. >> my fear is this the selloff in the damage by the time we go through this process if we don't act a little more proactively or preemptively if that's not for, but the damage to these businesses we saw in southern ohio and all across the paper manufacturing generally are the damage to the industry was so great by the time the wheels of government and trade enforcement could operate that these companies in this industry probably will never fully recover and hasn't recovered appreciably anyway. i'm hopeful you'll look at this in a bit more did preemptively as you decide. lastly, wanted to make the invitation. i collect from ohio would like

you to come and see a steel plant. i think viewers seemed steel being made and it's important to the economy and making things than being a leader in everything from national security to security that would matter so much. there is a plan in cleveland, which is the first time in world history where one person in our produce one ton of steel. it'd never happen in world history anywhere and it happened first in cleveland, ohio, so you have an efficient steel industry under a lot of pressure because of dumping analytical subsidies to chinese steel. >> i look forward to taking you up on that position. >> thank you, senator. we've heard a lot of concerns here. they generally revolve around a level playing field, state owned enterprises, unfairly taken

advantage of u.s. companies and so forth. i know you're going to try to address a lot of this and other matters. what are the limits we get to address this? what are the political limits? what are the legal limits? was prevented you are moving towards an aggressively addressing all these issues in a very expeditious way if you could categorize what they are. i'm especially interested in legal limits. the united states could bring unilateral actions before we joined the wto. i'm not ability to do so is restricted. some with a other countries have

joined and they have those disciplines come although other countries have a fully wto and anticipate those disciplines, might have to do with when companies go to other countries products. ..