[inaudible] [shouting] >> mr. speaker, is the prime minister a where that last year britain became a net exporter of cars for sun since 1976? for 76? furthermore if this trend continues the uk will reduce the all time record of 2 million cars in 2017? is this not a really good example of a high altitude value sector upscaling of putting the great back into manufacturing and exports? >> my honorable friend is absolutely right. this is a good example of a british industry an that is succeeding if you look at honda, look at toyota, if you look at

jaguar land rover. there is really good news. that is beginning to happen in these industries and i hope we see progress in the months ahe ahead. >> this week the city council revealed that rein to raise have increased by over five and 50,000 pounds since the tax was introduced in april. 15% of effective -- [inaudible] when is the prime minister going to admit that devastating policies are costing more than it saves? >> we ended the spare room subsidy because we don't think it's fair to give a subsidy to people in council houses that don't have it in private rent accommodation. but i have to say there is not a question for the labour party. now if they're going to have this welfare cap, can they now tell us are they going to reverse this change? are you?

are you? shaking their heads no. is that a no? that's right, after all the talk of the last few weeks, the iron discipline we're going to hear about, the welfare cap they were -- failure. >> tax avoidance is rightly at the heart of the g8 agenda. of my right honorable friend the prime minister townhouse what advice he might have received on this issue from either the leader of the labour party or the international shadow chancellor and? >> my honorable friend makes a good point because it's this governmengovernmen t that is putting aggressive tax avoidance at the heart of the g8 agenda, and what do we hear this week from the labour party? they give tax avoidance advice to their donors. that is what they have been doing. 700,000 pounds of tax avoidance because of what labour advised their donors to do. he asked me to call them.

frankly, i can't calm down because this is money that ought to be going into our health care. [shouting] it out to be going into education. it ought to be going into training a young people. and let me tell him, when you give the money back? yes or no? will yield? [shouting] it's very simple. it's very simple. this is what the labour leader said. in the guardian there must be truth, second of april, tax avoidance is a terrible thing. he said this. if everyone approaches their tax affairs at some of these companies have approached their tax affairs, we wouldn't have a health service. we would have an education system. that is a shameful state of the labour party today. [shouting]

>> [inaudible] invest 1.2 million pounds last year and it has understand and social care as we pledged to do. government made a crisis in a indie social care. >> we could start with the money from labour's tax avoidance. that money that should be going into the care system. that's money that should be going into the national health service. this government has put 12 points 7 billion pounds extra into our nhs. that's how we're supporting care. that's how we're supporting hospitals but she can have a word with a shadow chancellor and with her later and say pay the taxes. >> thank you, mr. speaker. as we approach the 25th anniversary of the piper alpha disaster, will the prime minister join with me in recognizing the challenges we face in concerned to bring oil and gas ashore from the north sea, the skills and dedication

of those who do it and the paramount importance of safety in ensuring that we don't continue to exploit this very? >> i joined honorable friend in praising the north sea oil and gas industry. it is a real jewel in the crown of the united kingdom economy. i think what's encouraging is that this year we're seeing a growth and production as a number of new fields and projects come on stream buddies right to say that at all times, safety and secure the are absolutely paramount. >> order. points of order. the honorable gentleman is pretty expensive member of the house. point of order comes after statements. >> we believe the british house of commons now as they move onto other legislative business. you have been watching prime minister's question time aired live wednesdays at 7 a.m. eastern while parliament is in session. you can see this weeks question time in sunday night night at nine eastern and pacific on c-span. and for more information go to

c-span.org, click on c-span series for prime minister's question. us links to international news media and legislatures around the world. you can also watch recent data and putting programs dealing with other international issues. >> census online launch in 2007 that are now more than 200,000 hours of original c-span programs, public affairs politics, history and nonfiction books all totally searchable and free. a public service created by private industry. america's cable companies. >> the senate finance committee has approved president obama's nominee to the u.s. trade representative. if confirmed by the full senate, michael froman would be in charge of negotiating trade deals with the european union and asian. here is his senate confirmation hearing from last week. it's an hour and 45 minutes.

>> bearing comes to order. william shakespeare once said, and according, nimble thoughts can jump both sea and land. end quote. the ustr brings both nimble thoughts and nimble actions throughout the complex world of trade negotiations enforcement. it's nimbleness allows them to address the challenge of trade policy across the sea and land. the ustr is linked, it's effective. fewer than 250 employees. it punches beyond its way to break them foreign various u.s. goods. services and intellectual property. negotiates rules of trade that expand commerce and promotes growth and create jobs. ustr requires leadership is equally nimble leadership economic ustr's strength in the strength of the u.s. government

as a whole. it needs a leader willing to put in the miles to drive a hard bargain. a leader willing to barter with us here in the congress to the trade policies that work. and a leader willing to put in the hours to understand the challenges faced and he was businesses, farmers and ranchers. ranchers like jim peterson who was fighting to sell more u.s. beef. i am pleased that such a leader before us today. michael froman is the right person for this job. for the past four years has demonstrated a mastery of trade policy development and implementation. he understands the small details and he sees the big picture. he is close that trade agreements and kind of global economic policy and promoted initiatives that have boosted america's exports by more than 40%. and he is still to represent the training at global forms like the g8, e.g. 20.

he has more than cable to do this job and. we should confirm his nomination and we should do it quickly. president obama has outlined an ambitious trade agenda, one that requires a strong trade representative like mr. froman who can hit the time -- hit the ground running. to unlock for a long -- deep ties with your. ustr seeks to complete the trans-pacific partnership negotiations by the end of the year, will soon be wrapping of free trade agreement negotiations with the european union. and it is hard at work in geneva on the multilateral services agreement, expanding opportunities for u.s. information technology projects and reduce delays around the world. these trade policies will make a difference here at home. as a group the ttt countries are

the largest for u.s. goods and service. last year u.s. exports to current ttt countries totaled nearly $260 billion representing 40% of total u.s. good exports. and breaking down trade barriers in gdp countries will make a real difference. japan relaxed the restrictions earlier this year and rv sales almost 50% higher. japan's average agriculture terrorists are more than 20%, were ours are only five. when those tariffs come down our sales will go up. and the trans-atlantic trade investment partnership will also statement economic growth and job creation. european union purchase close to $461 in u.s. goods and services last year supporting 2.4 million american jobs. a comprehensive agreement that tackles long-standing regulatory and agricultural could add more jobs here at home. my home state of montana shows

how good it is too good paying jobs the -- one in six manufacturing jobs and let him comes from exports. in the last decade montana's goods exports partners have increased by 250%. last year montana's wheat growers exported 65% of the crop because of the efforts of u.s. trade negotiator, ranchers beef to korea. we must fulfill the promise of her ambitious trade agenda. next step will be to pass the trade promotion authority and create a system to resume trade initiatives moving to completion and getting off the ground, we need it now to guide and support used your. the ata to ensure that our workforce should be ready to compete with anyone anywhere in the world.

i am pleased it administration sports tba and worker assistance. mr. froman i look forward to working with you to renew tba in the next few months. so we can lay the groundwork. i will continue to my efforts in a bipartisan tba bill this month. finally i would like to emphasize the ustr must continue to harness the resources and energy in the entire u.s. government for the trade agenda to be successful. you must be continued ago at the white house. must continue to pull together behind ustr's leadership. requires nimble thoughts, nimble actions. i'm confident that michael froman fm ustr will meet the ambitions of the president. mr. froman, members of the committee will probably ask some tough questions today. that is our right, it is our responsibility. over the past several years youe shown that you're willing to go the extra mile over land and sea. to get the best deal for u.s.

farmers, ranchers, businesses, and workers. i believe you will serve ably as the next u.s. trade representative and look forward to our discussion. senator hatch. >> thank you, mr. chairman. thank you, mr. froman, for appearing here today and joining with us. i look for in a testament. i want to take them to talk about the wide disparity between the obama it administration dreaded any actions taken by administration officials. this has particular relevance to mr. froman's nomination. a few months ago, when the finance committee was considering the nomination of jack lew to be the secretary of the treasury, we learned that he had invested in a cayman islands hedge fund located in the now infamous ugland house that so many democrats have decried as a tax haven. at the time, we reminded people that, in 2008, while campaigning for president, then-senator obama said that the ugland house was either the biggest building in the world or the biggest tax scam in the world.

and, throughout the 2012 campaign, president obama repeatedly attacked mitt romney for having funds invested in the caymans. in making such investments, governor romney was, in the words of the obama campaign, betting against america. yet, the president had no problem nominating someone who made similar investments to be treasury secretary. as a result of our vetting process, we have now learned that mr. froman has actively invested roughly half a million dollars in the exact same hedge fund located at the ugland house. mr. froman is, in fact, the third cabinet-level nominee this year to have made use of offshore investments and structures, despite the president's unequivocal condemnation of these types of activities during the campaign. moreover, the cayman island investment is in a fund that, in turn, has invested in companies that outsource jobs, or, using the president's rhetoric, ship jobs to low-wage countries like india.

on top of that, we all remember in early 2009 when president obama remarked about wall street, saying that institutions were teetering on collapse and they are asking for taxpayers to help sustain them. the president also railed against wall street bonuses at the time, saying, that is the height of irresponsibility. it is shameful. elsewhere, he referred to wall street bonuses as obscene. like secretary lew, mr. froman was employed at citigroup during much of the financial crisis. in late 2008 and early 2009, american taxpayers provided over $45 billion in direct assistance to citigroup and backed hundreds of billions of citigroup assets. during those same two years, mr. froman received more than $5 million in bonuses, much of which was paid for work performed when citi was on the verge of collapse. once again, we see a contradiction between the president's rhetoric with regard to wall street and his decision to nominate mr. froman to be the

u.s. trade representative. now, i don't raise these issues to suggest that mr. froman has done something wrong or that he has not complied with our tax laws. i believe he has complied and he has 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 suggest that offshore investments, investments in outsourcing, and wall street bonuses are not simply bad policy, but morally wrong. yet, the same vitriol used to attack the president's political opponents does not seem to apply to his nominees for cabinet positions. as i said during the debate over secretary lew's nomination, the american people are essentially being told that they should do as the obama administration says, not as they do. that doesn't 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 distract us from trying to help grow our economy through trade. indeed, the u.s. trade representative is a vital position. and, despite any disagreements i might have with the obama administration's rhetoric, i believe this nomination should be considered on its own merits. trade is an engine of economic growth. since the end of world war ii, international trade has helped pull millions of people out of poverty while creating enormous opportunities for growth here in the united states. >> the long delay incident triggers with colombia, panama and to reject u.s. exporters on the side line for far too long. now we see they're working on a very good agreements. while new and potentially meaningful negotiations have been launched by this

administration, not one of them seems close a successful conclusion. mr. froman, i'm counting on you to straighten that out. this is due both to a lack of real leadership and the fact that our trade negotiators don't have the tools needed to do their job. for example, trade expired in 2000 as a just point out as a result our trade negotiations lacked authority necessary to negotiate and conclude. new trade agreements. unfortunately there's been no real effort by president obama to secure tba approval. members of congress have fought to fix this problem. unfortunately that effort failed largely due to lack of support from our senate democratic colleagues. to me this shows that presidential engagement on tba renewal is vital. without the presence act of leadership and public support for tba, it is hard to see our current efforts to renewed trade promotion authority can succeed.

and we must succeed. today, 95% of the world's customers live outside the united states. they account for 92% of global economic growth and 80% of the world's purchasing power. but the united states is falling behind as we fight for access to these markets. fortuity is has a number of promising initiatives underway including the trans-pacific partnership negotiations with the european union, both mentioned by our distinguished chairman. these agreements must be comprehensive, incorporate the highest standards of intellectual property rights protection, and provide meaningful market access for u.s. exporters. in pursuing these initiatives i hope the administration does not lose sight of the importance of our efforts under the auspices of the world trade organization, including expansion of information technology and government procurement agreements and conclusion of a robust agreement on trade and 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 leadership skills necessary to effectively lead the agency. our nominee today certainly appears to meet that test, and i'm pleased that you're willing to do this. you have served as real as assistant to the president and deputy national security advisor for international economic affairs at the white house and in multiple senior economic roles under prior administrations. i intend to support you, but i did want to raise these issues because i think of the hypocrisy involved. certainly during the last election. mr. chairman, thank you for holding this hearing today. i look forward to hearing from mr. froman on how he will, if confirmed by the senate, carry out the duties of the u.s. trade representative.

>> thank you, senator. mr. froman, before we begin its customary to ask nominees if they wish to introduce their family. >> thank you very much, mr. chairman and ranking member hatch. it's my pleasure to introduce my wife, nancy, my children benjamin and sarah, our caregiver. i will ask the committee's indulgence today is vengeance last day of school so he may leave here in early and we'll see how there last but it is my pleasure to have them. >> do you mind standing so we can all recognize you? [applause] our roogood luck on your last d. knock them dead, okay? all right. our usual practice is to have your statement include in the record. if you just summarize it in about five minutes.

>> thanks, mr. chairman, ranking member hatch and all the members of the committee, thanks for the kind introduction. i'm humbled by the conference president obama shown in me by nominating me for this position and grateful and honored to be considered by this committee. i want to just thank my family for all the love and support they've given me to make this possible, possibility of service real. i also want to thank my parents and recognize how important they've been to me. my mother was an elementary school teacher, a cub scout den leader and an active member of our pta. my father was an immigrant who fled hitler's germany, grew up in israel, and came to the united states to go to college , was present of his rotary club and was an important source of guidance and support today. my parents taught me the value of hard work and education, the importance of giving back to the community and the privilege to serve and work to improve the wider world. i would not be who i am, nor would i be here today, without them. in recent weeks, i have enjoyed candid, substantive discussions

with many of you about trade and america's broader economic challenges. there is a long tradition of partnership between the finance committee and ustr. and that's a tradition i plan to continue if i am confirmed. as president obama has made clear, our number one goal must be to promote growth, create jobs and strengthen the middle class. i see ustr's role in first, by opening markets around in that effort to be threefold. the world so that we can expand our exports. second, by leveling the playing field so that our people can compete and win in the global economy. and third, by ensuring that the rights and trade laws we have fought so hard for are fully implemented and enforced. i first had the opportunity to work with ustr as a white house fellow under president george h.w. bush, then under president clinton and over the past four years as president obama's adviser on international economic affairs. it is clear that ustr is a very special place. ustr professionals exemplify the finest traditions of public

service. they work hard, they're nimble, they bring intellectual rigor to their mission, and they get things done. if confirmed, it would be an honor to lead them. as we speak, ustr staff are busy negotiating the groundbreaking trans pacific partnership. they are consulting with you on the upcoming negotiations for an unprecedented transatlantic trade and investment partnership. and, in geneva, they are working to energize trade liberalization, including on trade facilitation, information technology and services. all of these negotiations are designed to strengthen the multilateral, rules-based trading system and press it to achieve the highest possible aspirations. if we can conclude these agreements, and let me be clear, my view is that it is better to accept no agreement than a bad agreement, we will have positioned the united states at the center of a network of agreements creating free trade with 65% of the global economy. it is among the most ambitious trade agendas in history. trade is also a powerful tool

for development. if confirmed, i look forward to working with you to renew gsp and agoa and to finding innovative ways to facilitate trade and regional integration across the developing world. trade policy can only work, however, if it is fair. we are committed to opening markets, and we are equally committed to enforcing our trade rights and trade laws and to helping displaced workers obtain the skills and jobs they need. american workers are the most productive in the world. they deserve to compete on a level playing field. this administration has made enforcement a top priority, 18 cases to date and the creation of the interagency trade enforcement center to enhance the depth and reach of our enforcement efforts. as with so many things, that could not have happened without your support. trade policy only fulfills its full potential when it reflects close consultations between the administration, congress and a wide range of stakeholders. in that regard, if confirmed, i will engage with you to renew

trade promotion authority. tpa is a critical tool. i look forward to working with you to craft a bill that achieves our shared goals. let me conclude by making clear that, if i am given the honor of serving as u.s. trade representative, i will do everything in my ability to promote the interests of our workers, farmers and ranchers; our manufacturers and service providers; our innovators, investors and consumers. thank you again for considering my nomination. i am happy to take your questions. >> thank you, mr. froman. before questions, we ask all mummies first, is there anything you're aware of in your background that might present a conflict of interest in the duties of the office to which been nominated speak with no, sir. >> the note of any reason that would in any way prevent you from fully and honorably discharging the responsibly of the office of which have been nominated speak with no, sir. >> do you agree to respond in recent summers, to appear and

that's why before any duly constituted committee of congress if you're confirmed? >> yes or spent asking we've added reasonably. do you commit to provide a prompt response in writing to any questions addressed to you by any center of this committee? >> yes, senator. >> thank you. all right, you've outlined a very ambitious agenda. multiple negations going forward. other countries that we're negotiating with would like to have confidence that any agreement he reached, united states reaches, will be honored. i'm pleased that you person said you're making trade promotion authority renewal a priority and you engage congress to get trade promotion authority passed quickly. does this mean the president himself has requested renewal of trade promotion authority? >> yes. >> so the president is asking for it to be renewed? >> yes.

>> the. because there's been some question about that, and i'm glad to hear that it is thursday. next is an opportune to clear the air about your cayman islands investment. you choose -- can you tell the committee how you came to invest, just what happens? >> thank you, mr. chairman. when i was in the private sector i had the opportunity to participate in an employee program to invest in international funds. i didn't invest because of what was located i invested in because it allowed me to diversify my portfolio. i'm not a tax expert. my understanding is it's an partnership fund where all earnings, i'll gains or losses are passed on through a cave went to the individual investors. i pay taxes, i paid every penny of taxes due on that front. i'm not aware of any tax benefit that i received by virtue of

investment in that fund. >> is it, so a legitimate question about investment practice as caymans consequence, what might it be? several have raised the question, and if you could just again and tell us why, then, your investment is on the up and up. all taxes paid, nothing of any illegal nature. >> i know tax expert. i can't speak for other activities in the cayman islands but all i can say is that with regard to this kind of fun, all the gains and losses of the investment are passed on to the individual investors through k-1. i forwarded that k-1 to my account and pay taxes, every penny of taxes due on that investment. >> could you talk to us about

china? there's been a lot of articles lately in the news, particularly struck by the article in the sunday review section of "the new york times" how china is very aggressively investing worldwide, not only direct investment, i remember i figured that chinese loans last year exceeded world bank loans for that year. ..

know anyones that wants to china bash. at the oh time we don't want to be taken advantage of. can you hope us indicate to us what your policy would be respect to china. we are doing something crurktive. >> mr. chairman, probably no greater issue is on the trade agenda than our relationship with china, because it cuts across so many different issues. we have engaged with them through all sort of different mechanism from the president on down to the strategic and joint commission on commerce and trade, and the go 20, the imf,

it creates an unlevel playing field between us. we are dpowsed on making progress whenever we can in term of pushing for desk reform in china and liberalization of the policy, reform of the financial sector and the enterprise sector to ensure our companies competing around the world have a level playing field in which to operate. we work through the enforcement agenda. we have brought several cases again china. eight cases again china from manufacturing to agricultural to the service. we only case against china regard to tires. and see that sector in the u.s. rebounding and more tools. we have to use every tool at our disposal.

>> yeah. we have more time right now. i encourage you -- [inaudible] more time thinking about this in an effective way. we have to start standing up for ourself for the country. more than we have in the past. it means leverage. i believe that both countries all truisticly never will a trade barrier. they only do it for leverage if they have to. and we're have to figure out a way working for the committee and other committees and ere entities to help figure out what the leverage is. a constructive way to leverage, nevertheless. if we lev -- leave this unintended. it's going get worse. >> thank you, mr. chairman. distinguished from north carolina needs to leave. i'll refer to him and maybe get my time back later. >> i thank my colleague.

mr. froman thank you for coming. i'll assure the chair i'm going ask one question. i think it's an easy question. i need a specific answer. you and i talked a good time about the fact that poorly negotiated tpp agreement could result in the hundred of thousand of job in the text tile jobs. 35,000 jobs would be in jeopardy. when we talked last month you said you understand the importance of the tpp. if confirmed as u.s. trade representative will you support the yarn forward origin that prevent countries from not participating in the pp agreement from getting a back door entry to the market at the except -- expense of those u.s. companies. >> thank you senator, thank you

for the leadership on this issue. the short answer is yes. the longer an is we have made clear twroord technical tile we need to have clear rule of origin with yarn forward at the center. we need mechanism to ensure there's a transshipment. we need work with our colleague and other agencies to make sure there's enforcement mechanism to make sure that they aren't using other markets. yes, the yarn forward rule is the essential part of our technical tile. >> thank you, mr. froman. i would yield senator hatch the back the balance of his time. [inaudible] >> let me say this, as you probably now us tbrks r is an agency in crisis. the office of personnel management -- annual survey to evaluate staff and effective

leadership. and so that is -- [inaudible] [inaudible] it's disturbing to me. you may well hope it's a result of con trained resources. the downward trend in the satisfaction has been continuous since 2009. as you can see by this chart, this place is the work. you can see there and from chose charts in this case almost half of what it was in 2009 and steady decline is really concerning to me.

what is your opinion is required to effectively leave the agency. i intend to restore staff morale at usgr. >> thank you, senator hatch. i agree you about the posh of staff morale. it will be a high priority of mine if confirmed to focus on it. my experience is that staff tend to have high morale with they feel like they're working on something important and their work is valued. and the trade agenda we have discussed this morned -- morning and the president laid out tpp, and the initiatives that the building works on give it a sense a mission and give us an opportunity to make improvement in morale. resources are an issue, clearly. i think the combination of being able to secure adequate resources and focus people on the importance of the mission they have before them and the centrality and the economic's

overall economic agenda is an important part of turning it around. >> i have a high opinion of you. you come well recognized. your dedicated sf in my eye. i'm glad to hear today the president is formally requesting it. i can't imagine any president not wanting that. i've been going for this for many months, and your comments tread -- [inaudible] i look forward to the president's active support. he can make a lot headway with me we are falling way behind. other countries are moving ahead on trade agreement, and we're slipping. so we're counting on you being forkingic and i don't know how you will stand away from the cute kid and your wife. but you have to do it. and we appreciate your

willingness to serve. >> thank you, senator. >> thank you, senator. >> thank you, mr. chairman put to pick up on your point, mr. chairman, twroptd enforcement. we have talked i believe strongly the country who needs vigorous proactive approach identifying and remedying unfair trade practices. businesses deserve -- [inaudible] as you know, our solar industry has exercised it right to obtain an antidumping order on chinese solar products. they responded by evading the order and fairy retaliating. china acted similarly with respect to trade case in europe. as you and i have talked about, our government ceapt resolve this lump sum. we have to have a global settlement.

we have to have an opportunity for governments to does this with china and europe. my understanding is that the administration is engaged now with those -- with china, with europe. the goal for the agreement that would end retal story chinese case and level the playing field for american producers. my understanding is that you support those efforts, and that you are one of the leaders in those discussing. can you share your views on this? >> thank you, senator, thank you for your leadership on this important issue. it is an critically important issue. it brings together both the porn of enforcing our trade law effectively. the. or of seeing the further development of clean energy and leveling the playing field so our producers can participate in that growing market. it's one of the reasons we have been -- related to energy. we brought a case to the wto

again india's localizations policy. that kept out our producers. we brought the first section 301 case for china against win subsidizes and got them to drop them. >> since my time is short. do you support a global settlement. >> yes, on solar issue in particular. this involves the whole supply chain, a you said. it involves silicon makers, social impanel makers. it involves not just the u.s. but the european market as well. there are initial discussions with the european market and china about how to deal with this on a global basis, that would be -- i look forward to working with you. >> if you are confirmed i want you to own the negotiation. this is a hugely important issue. we have to be able to be producers in renewable energy. question two is on

transparency. i feel strongly about it and talk about particularly we pippa soap pa debate. if confirmed will you make sure that the public interest get a clear and updated description of what trade negotiators are seeking to obtain in negotiations so we make the process more transparent in the future. >> yes, senator, i think it's critically important we have good transparency between the congress, people, key stakeholders and the public at large. we brief this committee staff on every proposal before we table it in any negotiation. we get their unput -- input and feedback. we have a robust program making available to any member of the committee. any member of the senate and the house. the text of negotiating

proposal. >>let plan to talk about it some more. i would like that to be online so the american people can be a partner the debate. let me ask you about one other question. get netticly engineered wheat was recently discovered in an unexpected location. they said the wheat is safe. an investigation is going on right now. what i'm concerned about is some of our trading partners suggested in the meantime they are going to discriminate again american wheat import. and do it despite a lack of evidence there's a problem with this genetically engineered wheat in stream of commerce. what 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 adopt face

discriminate treatment. >> yes, senator. >> thank you. mr. chairman. >> thank you, senator, i appreciate your question on tran parent sincerity. i read articles recently the administration and the usgr -- i think your an clearly explains it. the negotiations are fully transparent with respect to member of congress and the staff in what is going on. i enjoy tow keep it up. nothing worse than american people thinking something is being hidden, something is secret. i encourage you to keep it up. thank you very much. >> next is senator cardon. >> thank you for your willingnd to serve the public. we appreciate it. we thank your family. we know it's a family sacrifice. we thank you very much for that. i want to first talk about the -- your position on strong human

right, labor, and environment standards as we look at expanding trade opportunity. having stable trading partner is good for us. it's important. we have been able to make advancement on human rights and environmental and labor standard through trade agreement. when the last was negotiated, there were certain provisions put in the tpa to guarantee the right to organize to prohibit child labor standard and force labor standard. we have environmental issues and human rights standards. i want to know your willingnd to work with us to use every opportunity we have to expand interests that are important to the united. we had the attention of other countries where we have trade agreement. other times we don't have that. are you prepared to work with us to advance the goal. >> yes, senator. we agree it is very important that we maintain and establish

high standards on issues like labor and environments, ipr and a number of other issues through our trade agreement. i would broaden it out; however, enweather it's dialogue on human rights and the open-government partnership which focused on good govern man and corruption and accountability. i very much look forward to working with you on the issues. >> i agree with that. i would jusht score the point in trade agreement you have opportunities that aren't available at other times. the other opportunities we have to advance good govern man we need to follow up. i think we have been able to make tremendous strides when we have on the negotiating table. in particular when you look at tpa you should have the authority, the broadest possible authority to negotiate on behalf of our country. i would urge you to work with us and be open to opportunities

where we can advance these goals. >> thank you, senator. >> i want to talk about tissuing pressuring a. i was in asia this past week. i had chance to talk to some of the country that were involved. particularly japan. i heard your response to senator burr as it relates to the yarn forward issue. i support that position. let me point out there are other issues that are involved here. in maryland we have suit manufacturers that are facing a difficult circumstances because of the terrorist issues on the importation of wool. there's a wool trust fund we need modernize and move forward. are u yo prepared to work with us as we look at the trade agreement to make sure we have the appropriate programs in this country such as the wool trust fund to deal with fair competition for u.s. manufacturers? >> yes, we understand the

sensitivity of number of issues. i appreciate that. >> i want to talk one other issue that deals with heavy trucks. we have mack truck in maryland which makes have trucks, and is concerned that in the agreement that we have with colombia and panama, it's a five-year schedule for the elimination of the tariff. mexico has moved aggressively, i think it's 0 now between colombia, panama, and mexico. the agreement provides you can accelerate that reduck of the tariff of the other countries. would you be committed to advancing the best we can . >> my understanding there is one out asking for comments and ideas from industries that would like to see that done. i'm happy to look in it that.

>> thank you, mr. chairman. >> thank you, senator. >> thank you, mr. chairman. congratulations on your nomination. your i wish you the be. a few questions. the trade representative has a u unique opportunity to right wrong when we have the opportunity to great things that have been bad in term of past practices. in case of japan interring the tpp negotiation, raises a question of great interest to me. as you probably know, a number of life insurance in america have been working in japan under agreement with the japanese government for years to the tune of e6d billion in term. through the japan post insurance has become the major competitor with the life insurance companies to the detriment of their business.

you said your number two piratety is level the playing field. in japan it's been tilted. will you commit to this? >> yes, senator. one of the key issues before we agree to japan come is address access issue. we reached an agreement upfront on part of that issue. and also agreed to a parallel negotiation on the ?urn even beyond what is in the tpp agreement. we'll try to address the particular by lateral issues. >> thank you very much for the commitment. i appreciate it. when you were in my office we talked about my interest in africa and trips we have made there. in particular what we did last year at the 11th hour we finally got the third party fabric extension on the african growth and opportunity act which comes up for renewal in 2015. we can't afford to wait until

2015 until the last minute to renew the act. what is your plan as u.s. trait representative to engage on it in term of timing wise and effort? >> senator, the forum meets in august of this year. with all the countries. , if any, confirmed, i would like to use that as an opportunity start a process of looking at it, looking backwards and seeing what worked. working with the committee and appreciate your leadership on the committee and foreign relations committee with regard to africa to make sure there's a seemless renewal. >> thank you you know the chairman made reference to china and africa in the remarks. it's important in that relationship. trade is -- where we can trump china is money. and trump them on trade with the african people that. that is a rich environment for the united states product and advanced technology and

agricultural product and the like. africa is an important part of america's prosperity in the future. i think as a trade representative, i hope you will focus on it. i'll ask questions with regard to the free trade agreement and the breakthrough language that caused criminal penalties to be likened to the u.s. are you familiar with that? >> i'm not, no. >> one of the biggest problems we've had with a particularly asia. i want to pick one parking lot of the world. will you work on doing the same thing as the other greems come up? intellectual property is tremendous important for our business and commitment growth industry. >> absolutely. we very much agree about the importance of intellectual property rights protection. we want to strengthen the

protection around the world. including taking on new issues as part of the trade secret issue. we'll work on that. >> thank you very much. best of luck to you in your new position. thank you, senator. senator browne. >> thank you for joining us, mr. froman. let me talk to you about too big to fail. and the trade representatives' involvement in that. wall street and industry friendly european regulators are now seeking any means they can to hold back the reform from three and what we did with dodd-frank. there are ongoing notions of the transatlantic investmentship. my understanding is want to stop some of the derivative rules earlier this beak. the business round table here

advocates we tie ours -- and refraining from a race to the bottom. >> first of all, senator, there's nothing that we are going do through trade agreement to weaken our financial regulation to roll back dodd-frank or the effort that the administration and congress worked on for the last four years to reform our financial regulatory system. with regard to it in particular, the financial services are part of the after the financial crisis of '08 and '09. there was an explosion of activity among regulators between the u.s. and the e.u.

through the bis, fsb, and our view that work ought to continue in parallel not the negotiations but parallel alongside the negotiations. we'll be able to see across the whole relationship what progress we have made toward bringing our economy together. but we are not going through our trade negotiation lower our financial regulatory. >> you can assure the committee and this senate this these large scale regional trade agreement whether it's the the tpp that we will not -- we will not undermine in i of the financial regulators fdic, the fed, treasury, any of them. >> yes. >> okay. thank you. let me ask something else on the trade agreement. does an agreement like this, does tp pressuring need investor state resolution.

i understand the argument for investor state that have no had the the history of law and public enforcement and all after. why do we need -- do we need an extrajudicial and private enforcement system when they are as sophisticated and advanced and protected already? >> well, first of all, senator. we are still in the out-day period. we haven't yet launched the negotiation. we are in the process of taking in input and feedback from members of congress, stakeholders, and others. i think it's a topic worthy of discussion as part of the consultation process. our goal in all the agreements is to try and establish the highest possible standards. and new discipline where appropriate to raise the overall level of the global trade system. how it gets translated is an issue we need to consult on. >> do you think it's different

in an advanced property rights group of countries like the e.u. than in the trade agreement we might assign with latin america country? >> i don't have a position on that, at this point. i want to think about how -- you're absolutely right. there might be different legal regimes. also impact including or not including it might have on the desire to raise the standard overall. >> let me ask another direction, mr. chairman, a recent study by the peterson institute found that half or more of excess u.s. unemployment. by foreign governments they estimate that up to 5 million job -- the figure of 5 million job losses are a result of that. the national associate manufacturers said it's a key the administration spare no effort to see that currencies are market determined and free of government intervention. the house --200 plus

memberringses sent a letter to the president. talking about currency discipline for tpp. there is significant sentiment and on this committee. there are five sponsors. there are the five of the six original sponsors and representing both parties are on the committee of current sincerity legislation which passed the senate overwhelmingly last year. there's a great interest before we move forward on fast track or tpp. what will you do what will tp pressuring do to dpreaz the kind of currency manipulation which i think unquestionably violate international rule and have gone unaddressed. >> senator, thank you for your consistent leadership on the issue. a this is an issue that is high on the agenda. t something we raise for example of china of every meeting at any level with regard to their

currency policy and continuously push them to move toward market-oriented exchange rate and allow adjustment to the exchange rate and not to engage -- the trade department has a lead on such issue. if confirmed i look forward to work with you and them. with regard to china, there's been some modest progress. we came in to power and office. the r&d was pegged in june of 2010 we had several discussions china it depressureuated. not fast enough, not far enough. we have to continue to press at every occasion. and we need to find each step in the way what the most effective way is to make progress. we are happy to continue to work on that with you. >> thank you. mr. senator. >> thank you, mr. chairman. and thank you mr. froman for your willingness to step forward and take on the responsibility. we are talking about your family earlier.

i thank your family too for the sacrifice. 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 i was warned and he said don't confuse travel or motion with movement. meaning you can do without travel as well. i'm sure you figured that out in your current job. so you a bread -- great team there. t a terrific team of committed professionals. i'm concerned about what senator hatch laid out. you talk about a sense of mission. you try to enview the agency with. i think that's important. it's not just funding. when you look at the survey it goes to leadership and mission. i think tpa is part of giving a mission. in other words without trade promotion authority which the administration hasn't asked for until the trade agenda this

year. it's difficult to make progress on the issues. in fact i would argue that in the five years since we had trade promotion authority, the u.s. has fallen behind substantially. senator bacchus talked about this earlier. t one my major concern we need get it done so we can have the opportunity not just work on tpp and the agreement but make more progress in the bilateral agreement. i would ask you can you give perm assurances to the committee today that you will indeed be involved in trying to get trade promotion authority before the end of the year. >> senator, absolutely. again, thank you for your leadership on this issue. and your continued support of usgr as an institution. we are ready to engage and work with the committee. we would like to get the tpa done as as soon as possible. >> you will personally engage. my unking although it was in the

march report there haven't a deep engagement. in term of current sincerity, the broader issue we have in term of auto and specifically the u no exports issue. no one vehicle to japan every 130 vehicle we import. you you've probably seen it. it's about the u.s..3% mash share in japan. it's brotherhood than. it's about currency. it's also about nontariff barrier. i would ask you how well imoasheses with japan parallel to the tpp talk we're having. address the concern. what are you willing to do in term of dealing with the currency issue i think is critical. let me give you number the yen weakened by nearly 30%. it's about a $6 ,000 advantage per car to japanese vehicles. it's on a $30,000 car. this is a big deal to the big

three in the cite. they are looking for a level playing field. can you tell us what you're doing with regard to the issue and other nontariff issue as you work with japan is. >> absolutely. it's an important issue as part of tpp. before we agree to let japan join, we open gauge in a series of negotiations with them about beef, insurance, and importantly auto. with reached some agreement up front with regard to getting increased access to the market. more than doubling of their import accelerated import. we agreed on a term much reference for a parallel negotiation among us is to be a binding resolution and part of the overall tpp process. we have ongoing work to do with japan and the tpp process to

allow us to do that work. >> we appreciate it today. >> you will be involved in that. with regard to india quickly. we have a lot of concerns about with a is going on today. in india especially their emerging market access barrier protection measures. one the lack of respect for patents. you probably followed this somewhat if your current job. basic intellectual property protections are being set aside. they have been invalidated and broken american drug patent. i think the action are in disregard of the tool. i think they are disruptive to innovation. i think frankly t a pairnlg concern because it could spread in ohio alone i would tell your exports to india have slunk by over 5%. after years of steady growth. i think there's an issue right now with regard to india. i would ask you if confirmed if you would personally engage with trade issued at what sing a critical time. >> absolutely senator. >> mr. chairman, i see my time

is coming to an end. i have a lot of other questions for you, mr. froman. i will supply to those as qfr. i proficient your stepping up and taking on the job passenger's side it a critical time. i think there are a lot of challenge and tremendous authorities particularly with the trade promotion authority. as a tool to open up foreign markers to the workers, farmers, and ranchers. >> thank you, senator. >> thank you, senator. >> mr. froman, i think it's a good point end on. sin i've been open the the committee, i can't think of a more important challenging time for the us -- the competition is so much greater. the need for more creative effective action is so much greater. and i would like you to know that you have the full confidence of the committee working with you to accomplish

it. these objectives. we don't have much time left in the country, in my judgment. we have to work even harder, more creatively and have the best for our kids and grand kid and nobody else. we want them to have the life we americans have had. we enjoyed so wonderfully. it only happens if we rise to the challenge better than we have in the past. there's some are issues here which we addressed. i want to agree with. one is a irk p issue ?eat -- senator portman raises. it's becoming a more and more worldwide problem. cine, indian why, and other country. i urge you to think more creatively than your predecessors have. they have done well. you have to step up and doing more. senator hatch eluded to it. it's extremely bright and

experience and you're the man for the job. yowrt man for the time. we want to work with you. and hopefully that will address other issues raised here correctly. that's morale at. i think question we can address the morale. if we follow up on with a we talked about here. you're going find a team down there they want to get the job done. it's up to us hope them do that. we'll work with you. hopefully to get you confirmed right away. so you can be on the job. >> mr. chairman, senate hatch too. if after senator hatch goes. i have two brief question. senator hatch. >> okay. questions regarding india. i would like to ask one of the largest recipient preferences.

india increasingly shuts companies out of the market for a variety of measures. including import and product. forcing companies to give their intellectual property to indian companies to increase local employment and engaging and -- preferences to and the information and comiewb indication technology space. considering that the administration must consider whether india has provided equitable and reasonable market access and determine willing to extend gs benefits. do u yo think it's important for india to continue to employ gsp and benefits when it out is u.s. companies entirely out of the own market. >> thank you, senator hatch. >> gsp has multiple purposes.

some is for development, some u.s. firm rely on the import from gsp for their production. so we need to look at multiple facet of gsp looking ahead. and gsp expires the end of july. i would look forward, if confirmed with the committee to renew it. i'm happy talk about reforms might be important in the future. >> do you understand regard to india. >> absolutely. you mentioned a number of them including . >> i'm very concerned with the deor-- and innovation in ipped ya. the government of india continues to take action and make it difficult for u.s. innovative pharmaceutical companies to secure and enforce their patent in india. for example, i'm disturbed by

india's recent decision to issue a line for an important medicine and entirely speechless dprowndz. they continue to be rampant in india. and the government ipr and enforcement effort remain weak. given that negotiations does not warrant fruit. what steps would you take in antipolicy and practices and should india continue to have access to gsp benefits considering the factor for consideration is the extoantd which india is striding adequate and effective protection of intellectual property rights? >> senator, i think, first we should make sure we are using our enforcement tools where we can to press india to an ipr. we brought a case on -- we are working with industry to be to address the specific issues that you raised.

in contemplation of a treaty. would you please let us now how many invest are tbending between india u.s. entities. whether india has been abiding from other nations as well. can you do that? >> yes, senator. >> if you do that, i would be appreciative. let me ask one other question. the online marketplace is critically formed to the u.s. creative city. industry. it's rampant but a of online copyright theft. what additional steps will you take to address it in the online space for legitimate online

commerce. >> this is a -- could be is a key enforcement priority we made so called market report the special 301 process. we found there was a rampant cowrpt fit product being sold and managed to shut those down. we want to use all of our enforcement available to us including the work of the interagency enforcement center to put together cases appropriate with the consultation with industry to go after practice i like that. >> let me ask one other question. last february the administration issued an executive center or i tech. and the large part to improve e fresh sincerity. it's been nearly 16 months sin it was created. i was wondering if you could tell us how t been working. are there any change you would

recommend or make that you think would improve the effectivenesses in. >> thank you, senator. it has gotten off the ground and doing well. it has detail's from others. and having subject matter expert. language expert. country expert all if the same play allows it to put together cases we couldn't have put together before. we literally had to piece together the puzzle of several hundred regulations that showed a picture of extentive export subsidies for auto and auto part. we've been to be do that with the resources working together in one place. we are pleased with the way it's gotten started. it's one of several case it is managed to put together for the exercise and other agency for having put up resource and helping to get it off the ground.

we hope working with the committee and others going forward that enannalses it to be properly resourced. >> thank you. i'll submit my other questions. senator, you are next. i'm not sure. -- who is after that you. >> does that sound right? thank you.

a good experience for him. in order to visit with him and learn a little bit more about the country through him and our own time here. a number of my colleaguings have already raised the issue of india. i don't want to pile on with respect to india. as you're hearing today, they are concerns. very important nation. [inaudible] where the issue are ideal issues legitimate issue that are being raised here. we hope you will be mindful of that. the other thing i would say -- and you ask me dow we make the -- i talk about the investing in three areas. one of those is to invest in the work force. the second area is to invest in infrastructure. the third area is r&d that can be commercialized and create

product and goods and services can be sold all over the world. but also tax policy. that's the same thing is tax policy. and spending policy -- [inaudible] out thing that is important as you know to make sure we do create those -- we actually saw them. the job you're taking on you have been nominated for. i'm grateful to your wife and kid. thank you for letting him do this. and sharing him with our country. i met with your husband, nancy, he said you think i'm smart? you should talk to my wife. he said, but we're -- [inaudible] >> i have a question that relates to enforcement. and i -- i believe [inaudible] an important tool to level the playing field. the global market placing

enforcing the rule on the book is a fair trade. and to competition. this administration under the leadership of ambassador took steps to ensure it was a key component to the trade agenda. you say at the time when u.s. poultry industry -- the reason why i'm interested in it. there are chickens in delaware and the same might be true for other states. it's a big deal for us. at the time -- [inaudible] key market close as a result of scientific nontariff barriers this year year after year. you assure us that will continue to be imimportanted work of enforcing the rule on the book. >> yes, senator. enforcement has been a priority for this administration. we brought cases today including on several on the agricultural issue. again india and the description again china for use

inappropriate use of the law against our poultry expert. they continue to to co on those as we move ahead. >> and on a related question, at the same time can you ensure us that you and the folks you would lead will work to invest existing barrier for our industry through agreement particularly the transatlantic trade partnership? >> yes, senator. we made clear to our trading partners that agricultural and issues and the sanitary standard that are often use the barrier need to be addressed for these agreement. we've made some progress with the negotiation and confidence build measures. as we complete the ninety day consultation period this will be on the agenda. >> thank you. and one l.a. question. i have hear for your testimony but i had to leave. in term of what we can do to help you and folks at the trade

off be more effective. a short to do list. >> well, senator. thank you for the offer. i think on many of the issues whether it's tpp, tti pressure. ensuring us tbrks r has the support it need. we look forward to working with the committee and working closely between usgr and the committee has been a long standing tradition. >> thank you. i would like that indicate that i can barely see mr. froman's lips move when he spoke. that is a tsh [inaudible] we're grateful to you. thank you, senator. >> senator. >> thank you, senator hatch. mr. froman thank you for being with us today. and your willington serve. it's a great commit you are making. i want to ask about two area.

one is on the question of tpp and japan and our debate about autos. but i want to start with the question about competitiveness and intellectual property. we know, we all now the advantage that we've had for a long period of time now because of our great bio farming industry here. we rely on the ip, intellectual property that underguards that. and i know t a great concern to the administration and frankly people in both party, but there's a concern going forward we're not going have the protections we should have for our own intellectual property. you have seen numbers like this. when it comes to a particular product, sometimes it can cost as much as $1.3 billion of investment on average ten to

fifteen years of work to develop i.t. i want to make sure we have a strong set of preaces as possible -- protections as possible. we have a fairly broad based agreement on as long of a term as possible of the data exclusivity of the twelve-year consensus, i would argue. and just want to ask about your work with trade representative upon corp. make when you work make sure that we have those kinds of prerks -- protections in place for that term of years. >> senator casey, i fully agree that our innovation is central part of the comparative advantage. we need through the trade agreement ensure that we are protecting our intellectual property. that's highest possible standard. through tpp, is one example.

we are working to ensure that there high standards for intellectual property protection. we have begun the process with our tpp partner of explaining to them what is in u.s. -- [inaudible] with regard to data protection. and how it work and why it's in there. and that's part of the ongoing discussion we are having now. >> i urge you to embracic what has been a strong consensus here and throughout the country and the maximum protection possible. and the second question is one i know that you have addressed not directly today, certainly, t been raised. that's the question of japan and auto industry and whether or not after many years of efforts to open up the japanese auto market. we've had, in my judgment, years of frustration, which i think creates kind of a predicate for

skepticism when it comes to tpp and whether or not in tpp in place whether or not we're going to the kind of access to the japanese allowing their market to open up as it relates to auto and i want to get your view on that. it's a major issue for a lot of people here as it relates to not just texas tpp but broader trade policy. >> senator, first of all, i don't think there's anyone who cares more about the health of the u.s. industry or the health of the u.s. auto industry than president obama and the administration. certainly, the direction i received from him is to ensure that what we're doing through tpp gives us the opportunity to protect the case we have made in the auto industry in term of getting it back on and give us the opportunity to build on that strength going forward.

that's how we have made such a central focus of ours in the run-up to japan's proposed entry to tpp. while we agree on certain provisions that fbi us more immediate access to the market as well as how we deal with our own tariff in the context of tpp. in term of remp -- reference how to deal with the auto issues going forward. in term of distribution but make sure we have enough deafennive -- deafennive -- defensive issue measures. >> i'm out of time. for the record, say there's a lot of skepticism about the ability to open up the market and look forward to working with you on it. >> thank you. >> thank you. >> thank you, senator. senator menendez. >> thank you, mr. chairman. mr. froman, as we had an opportunity to discuss, you're going hear consistent issues i

will raise today and raise upon your conformation. as you're in the job. that's intellectual property right protection. the united states is a global leader in this respect, and if we create to the intellectual capacity of our nation, products, then they can be subverted worldwide. it's an undermining of a significant part of our economy. >> enforcement, because to the extent of those willing to put votes on trade agreements it's because we believe that the enforcement provisions we provide to ensure that the agreements is going to put us in a level playing field will compete against anybody in the world. not if they have disproportional standards. standard we live up to but they do not. and essential the impact of our trade agreement in both national

security and economic interest. up stair i'm chairing a senator foreign relations hearing on one of the worst tragedies we have had in the manufacturing of clothing, which is the plaza tragedy. i asked representatives including of the department you would head within how many more lives have to be lost before we act? my understanding that there has been a petition before reviewing labor rights in bang bangladesh for six years. we have seen no real progress. i appreciate hearing how you plan to leverage should you be confirmed the position you have including with g to encourage a country like bangladesh and

improve the safety of worker right efforts. >> thank you, senator. thank you for your leadershippen that committee as well. the tragic loss of life in bang bangladesh is very much high on the agenda. as you know there's a petition pending. my understanding is that usgr plans to act on it over the course of the month. there are currently interagency discussions about how best to proceed. so if confirmed it's something i look forward to delve in to and, working with you on. >> my concern is six years. six years. maybe had we acted, we would not have seen those people die. because standards would have been raised. conditions would been improved. they labor rights would have been observed. i hope that what will get from

you is when it is merited a robust effort and recommendation only the president can make that ultimate decision. '02 going to be in a key position to make a recommendation. i hope you'll name type of recommendation. secondly, on intellectual property right, i don't mind piling on as it relates to india. they are piling on u companies as it relate to their intelligent yule property rights. i have been hearing some of the pharmaceutical industry, i've, hearing from the high-tech industry, i've been hearing from other industries about how india's inadequate protection to put mildly, and intellectual property right is a real challenge. for example, in the charm suit call industry. they say it's about access. it's not about access. they could observe the patent and negotiate prices. so it's about protecting their agreer inic industry at the e

intelligence of the intellectual property created in the united to create global medicine that save lives and improve the quality of life. i would like that hear from you how do we in fact intend to enforce but a if country, india is only the present example. there are are others, china, you know, we have a company in new jersey that produces the scientific manual for the u.s. and across the world. they are living taken their product with impunity taken by the chinese. if countries see no consequences and begin to emulate india's actions on our most innovative sectors, it faces serious problems. what action can the administration take to convince, for example, india to ensure that the fruit of american

innovation are protected, and what do you plan to do as the trade representative? >> thank you, senator. we are concerned about the innovation and the the invest at the moment. patent issues, preferential market access and localization. these are issues we need to pursue at every opportunity. the secretary will be there later this month at the highest level in india. i'm sure it will be brought up there. ..