called for special inspection, -- >> negative reaction. >> thank you. wonder ifeneral, i you could comment on the general state of health from your perspective and from the iaea's perspective of the protocol, which is a framework and has been implemented with specific countries. the approach of the protocol has been around for a few years. how do you feel that it has worked in strengthening your safeguard nuclear materials? if there is anything you would change in terms of the diplomacy part of it or the technical or scientific aspects of that, what would you seek to change? thank you. >> the immediate object of of us

in the near future is to universalize the protocols. we are working on expanding the applications and implementation. 2009, joined the iaea in there were 93 countries that implemented the protocol. now 121 countries are implementing the protocols. additional protocols are to exclude the possibility of undeclared activities. we would like to see more countries that would adhere to the additional protocols. where else we could do more or not, i think that the priority for us is to universalize or

expand the number of countries that implement the initial protocols. unfortunately, because the questions are excellent, we will break off questions now. r> dear little -- leade references are a little uncomfortable, but i -- i'm jane harman. before becoming president and ceo of the wilson center two and half years ago, i served as a member of congress for nine terms. i met with you in vienna as part of a delegation in january 2010 just after you have -- had assumed the responsibility as director general.

we in congress at the time knew three things about you, and they still apply. number one, we know how confident you are from your years as chair of the board of governors of the iaea. number two, we knew about your straight talk. everyone in this audience has heard that. number three, we knew your willingness to take strong actions. all of which are essential as the iaea goes forward in an extremely dangerous world. you described three countries and there are probably others that could be on a longer list. you honor us by making the wilson center your only public stop after a conference since the election of president rouhani. .ou have let us ask questions there is michael adler who

considered -- contribute so much, right? understand sound policy choices. i want to thank you and remind everyone that one president wilson except that the nobel letter,ize in 1919 by he wrote that the cause of peace will be a continuing labor. almost 100 years later, the cause of peace is a continuing labor and a reason that i hope we will make progress. under very iaea strong leadership, your leadership, thank you and thank you all for coming. [applause] >> this concludes our program. thank you to the inspector general for coming. it was a great religion. was a greatn -- it

pleasure. great session. here.e a press conference the press could come forward. thank you very much. [captions copyright national cable satellite corp. 2013] [captioning performed by national captioning institute] >> thank you. i'm from japan. korea, howl on north as inspector going back to pyongyang? on -- one question more question on [indiscernible] and investigating contaminated water? thank you.

>> regarding the question of when iaea will go back to north korea, we do not know. in order to go back to north korea, we need basic political understanding and peace among the major stakeholders. based on the basic understanding , we can take action. you may recall that north korea is not a member of the iaea. has a reception for the country that is not a member, we need a vote from the board of governors. nevertheless, the iaea secretary is repaired to go back any time -- prepare to go back any time.

we have a level of training -- maintained a level of training. when there is political agreement, we will seek the .uthorization from the board the staff is ready anytime to be back. sending --estion on of the iaea related to the contaminated water, we are them in autumn. that is the iaea mission on their commissioning. it covers contaminated water issues. in november. i'm sorry.

the date is almost -- i do not have the latest information. end of november. >> thank you. hello. tokyo broadcasting system. there are a lot of broadcasting satellites. do you share that assessment? can you elaborate on the iaea assessment on what is happening in pyongyang and how you concerned you are with the status quo? we are aware of the media findingsnd observation of the satellite imagery.

we are also following the issue through various means. because of the nature of the issue, i am not able to -- i hope you understand that. >> i'm from the new york times. at the last meeting, it was noticed there was a positive tone. atmospherics was good. it was agreed that it was a kind of meeting that required follow- ups and eight will happen next week. --seems that iaea in the's it seems that in the iaea's dealings with iran, it will result in follow-up. what people are waiting for is to find out whether the positive tone will yield concrete, specific steps that results in increased monitoring or something strange on the current activity. from your perspective, from the

concrete,ective, what specific steps would you like to achieve in the upcoming weeks and months that would signal progress in dealing with iran? something that went beyond atmospheric and positive discussions. for us, it is important that the additional photo call would be implemented. some issues would be verified. protocole additional would be implemented. in practical terms, not everything can come overnight. have a proposal that

contains some substance. we are working on that. is for theriage november meeting. >> a quick follow-up. i ran and step-by-step -- and iranian step-by-step priorities and how the process should work, do you think that is a correct way to perceive? of how tour own ideas proceed? is that what remains to be discussed? >> our view is that there should agreement on all , past and present, should be resolved. that is all of the issues that i mentioned. it should be clarified and implemented. that is a process.

are working on them. the majors will include , glorification -- clarification. >> thank you. getting to iran, with upcoming meeting, you mentioned you cannot get into details, but how important will these meetings be? will it be a make or break moment in terms of diplomacy? is this one stage? inen the administration here

the u.s., there has been a call to freeze movements for further sanctions. i realize the iaea has a different role. do you have a view that this is the time to freeze sanctions? the additional sanctions? >> we are in a very important period. negotiating for quite a long time. negotiations went around in circles. coming of president -- now we seew some substance. seriously andk constructively to work out an agreement. regarding the rushed and about saying -- regarding the question

--ut sanctions, the iaea is it is handled by the united nations security console -- counsel. sanctions is not under the confidence of the iaea. thank you, director general. i'm a vietnamese-american. would you share with us the data we have on the nuclear capacity of china? we are recognizing its global power. --ing forward is the most

the u.s. and the whole world knows where china is an its nuclear capacity and intention. vietnam is also getting into not power.rgy and vietnam has tremendous problems and all national -- that. is there anything you can suggest with me and him to put vietnam?n suggest to to get more into nuclear energy? thank you. 2030, there will be an increase by 17% at the minimum and 90% of the maximum. expansion is in more specifically,

china, india, and south korea. asia isry clear that the center of expansion for the use of nuclear power. i understand china is very serious about safety and security. are in"d iaea operation. -- china andtnam iaea are in close operation. regarding vietnam -- we are working closely. we have worked together. other countries. ambassador of vietnam is now the chairman of the board. supporting and will continue to support vietnam in

their nuclear infrastructure to embark on nuclear power. >> thank you. i'm with al jazeera network. you may recall the red line said by the israeli prime minister at the u.n. regarding the ability of iran to produce a nuclear weapon. based on the expertise available to your agency, if the iranians were to decide to produce nuclear weapons, how far do you think they are from achieving that goal? if i may have a second shout out -- >> i do not understand your question. >> do you have any assessment that if iran were to produce a nuclear weapon, how long would it take to do that? second question on the issue of , do you think any

easing of the sanctions now would create a more positive atmosphere for negotiations between your agency and iranians? thank you. well, these two issues -- unfortunately, these are not my field. how long it will take for them to build a new go question was one of your questions. to -- weion is to how are not providing [indiscernible] ourpe you understand function. sanctions,ding the we do not have a lot of sanctions.

what we do is send the inspectors to the ground. and we share the information with member states to facilitate a decision by the member states. and iran had some constructive meetings. we reported to the member states countries togive make their policies. >> last question.

hi. to have a session -- question. regarding the proposal for the process to build a mutual confidence, at this point, do you expect the iaea to be involved in the verification process? has been involved in the verification from the beginning. we are in charge of the verification of nuclear activities of iran and other countries and will continue to do so. , there is aed different route. our main focus is on -- >> ok.

thank you all for coming. >> thank you very much. [captions copyright national cable satellite corp. 2013] [captioning performed by national captioning institute] look at our prime time schedule on the c-span networks. a pm eastern, michigan senator carl levin discusses afghanistan eastern, at 8 p.m. michigan senator carl levin discusses afghanistan policy. on c-span 2, contraceptive coverage and religious freedom. on c-span 3, trayvon martin's mother testifies on the stand your ground law. we talked about how the laws have changed the legal definition of self-defense. this is a tough time for nsa. everyone says, what are you doing and why are you doing it? when we get together, we

actually say, it is much more important for this country that we defend this nation and take the beatings than it is to give up a program that would result in this nation being attacked. we would rather be here in front of you today and telling you why thenfended these programs having give them up and have our nation or our allies be attacked and have people killed. span,is weekend on c- intelligence officials defend the nsa intelligence program at a house hearing. saturday at 10 a.m. eastern. live funds on c-span 2, your phone calls and comments for kitty kelley. both tv's noon on "in-depth."

in november,end remembering john f. kennedy. eyewitness events surrounding the assassination. sundays at 3 p.m. eastern. >> this painting was originally painted as my grandmother's .fficial white house portrait in the 1960s, lady bird johnson went looking for portraits of first ladies to bring hang in the white house. they thought it was important. she looked high and low and could not find my grandmother's official portrait. she, grandmother and said, do you know where it is? we cannot find it. it is on the wall. you really shouldn't have that in the white house. my grandmother said, no. that is my painting and on the wall and that is where it will stay. mrs. johnson tried a couple more times, but eventually gave up.

"first ladies" on c- span.org/firstladies. secretary of state john kerry spoke earlier today at a weiss how some is on business investment. house summit on business investment. this is their defies minutes. -- 35 minutes. [applause] >> good morning. i hope everyone had a great first day. [cheers and applause]

i went to start with a big thank you to the select usa team in all of the folks who have made this summit happen. let's give them a big round of applause. [applause] it was great to hear from president obama yesterday. he said when you bet on america, that that pays off. i could not agree more. that thennounced select usa program will be stepping up its game in a number of ways. attracting business investment will be a major priority for commerce and the state department, including our foreign commercial service officers and our ambassadors. senior government officials, including the president himself, would do more than directly advocate for investment deals. we will create a single point of

contact to provide you with a coordinated federal support and cut the red tape. and we will do more to support of the economic development organization at the regional state and city level. analogyde a sports it'll serve as a quarterback for increasing business investment in the united states. in addition, i should note that the president once again calls for congress to provide full funding for select usa in his budget. select usa already provides a great bang for the buck. the response to this summit shows that we can and will be doing much more to help you succeed. we want to capture the energy and turn your conversations into

united states investments. on another note, i want to be clear that we are listening to that leaders of this community more than ever before. i am pleased to announce an important example of our commitment to listen to you. let me give you a little bit of ground. the commerceur, department has received valuable advice on how to support american manufacturer -- -- 2004m the commerce department has received value but by sun how support american manufacturers. the fabric of american manufacturing has expanded. there are many representatives in this room. owned u.s. foreign space manufacturers now support 1.7 million jobs in the united states. the share of our foreign

investment dollars for manufacturers has grown to 45%. in many cases, these manufacturers have become the economic anchor of local communities across the united states. however, these businesses have table to seat at the help us strengthen american manufacturing until now. i am pleased to announce that we are revising the eligibility them to servelow on our manufacturing counsel. [applause] thank you. all of the good ideas for strengthening american manufacturing and create even more jobs. i want to say thank you the organization for the investment and members to bring this issue to the forefront. let's turn to the agenda for day

to. keynoteis mornings speaker who i will introduce the you will hear from the ceos of caterpillar and bmw, north america. u.s. operations as a platform to take advantage of our free-trade agreements. in fact, were than 20% of the united states exports comes from subsidiaries based abroad. the next panel will demystify the united states market. it features a mix of top leaders on the business, academia, and association. we will have two sets of breakout sessions ranging from development to securing working capital and financing for your investment here.

we will have a discussion on the exhibition floor on how to take advantage of service providers. for right now, let's get to this mornings keynote speaker. the honored to introduce secretary of state, john kerry. he is a proud son of a decorated former foreign service officer. as a young man, he served two tours of duty in vietnam and received a bronze star, silver star, and three purple hearts. top prosecutor at the county level in massachusetts and went on to be elected to be governor. two years later, he was elected to the united states senate where he served for 28 years. the last four of those years he served as the chairman of the senate foreign relations

committee. fact, he has been a leader and virtually every foreign- policy issue for the united states over the past three decades. this year, he became the first sitting chairman of that committee in over a century to become secretary of state. two weeks ago, i was honored to travel to asia with senator where-- secretary kerry you push key initiatives like the chance to civic -- trans-p acific partnership. he has knowledge and global reach in this leader said position -- leadership position. ladies and gentlemen, let's give a warm welcome to a national hero, and then he would dedicate his life to serve the united states in a tireless and can do dealing with the

tough issues that face our world. lease help me welcome my friend secretary of state, john kerry. [applause] >> good morning. thank you. there's a very much. thank you for an extraordinary introduction. based on the introduction, i accept the nomination. [laughter] only kidding. i'm out of that now. you, a couple of months before i was out of the job of being secretary stay, i'm still serving and the u.s. senate. i was walking through the and you notice

when those fellows have that sense of recognition, a, you -- hey, you! does anybody tell you look like we sent toguy that washington? i say, i get that all the time. kind of makes you mad, doesn't it? [laughter] it is fine by me. i'm really happy to be here. i'm honored to be introduced by penny. who is a very good friend. she was very involved with me in 2004 when i ran for president. i'm very grateful for the effort and energy that has gone into making this first summit such a success. no one who knows her will be surprised by that. everything that she has done in business and philanthropy and

the public service has always been a success. she is a dynamic ceo. you can feel the energy and leadership she is bringing to the commerce environment. she's a fabulous partner and i am thrilled by it. i'm very happy to have her there. i heard written introduction -- her in the introduction. we had a chance to go out and break bread together. she reminded me of the story of her dad who started a family business with one motel out in los angeles. she went on to spansion cisco and it grew to six and now everyone knows -- san francisco and it grew to six and everyone knows the hyatt. andre so proud of penny glad she's stepping back from the private sector to give us the energy and dynamics that we

need. her leadership of select usa is one of the reasons that this effort has the potential to grow our country and to grow all of yours for those of you who are here and visiting from so many other countries. we welcome you here. this in the biggest reason select usa will make a difference is frankly, all of you. a group of very capable business leaders, people who are hungry, who understand the dynamics of the marketplace and to our ambitious and come here with a vision for nearly 60 countries around the world and from all across the united states. i said in my confirmation hearing when i was selected to icome secretary of state, said to the senators and former colleagues that in many ways,

foreign-policy today is economic policy. leaders in government need to understand that. there is a synergy and importance to this relationship that cannot be denied. i think many of you are here because you understand this new marketplace that we are all operating in. voracious, huge appetite. very fast moving. we wanted you to come here to select usa as the umbrella that is hosting this event. we believe deeply and are convinced based on our feelings in the world and exposure in the world without arrogance or chauvinism that there is no better place in the world to invest than right here in america. there is no better time to do it in many ways than right now. some of the growth and development of the last few years has equalized in some

places so that manufacturing -- the number of manufacturing jobs here, we are growing again. it is competitive again. make no mistake, as we look ahead to the trends that will the factorsnew age, that will determine which countries thrive as well as which businesses thrive in this competitive marketplace, i think it is crystal clear that the united states is going to continue. economy. nature of our not because we are superior or better. it is the nature of how we have grown and where we come from from the industrial revolution all the way through. the 1990s and the tech explosion. we will continue to lead the world in both innovation and education because of the nature of our communities and the structure and the openness with

which they operate. that people will have access here because we will continue to work hard to make sure that we have the most qualified workers one of the largest consumer market in the world. this, i do not say any of with one bit of arrogance. good newsecause that for america is also good news for the world. it is good news for you and your businesses. nina the importance of the american economy in terms of driving china's economy and other economies in the world. their importance is driving other economies in the region and elsewhere. it is a principle reason why we should invest in here. it is a top priority at a level i might any before.

-- unlike any before. you're sitting here in the hot -- heart of the most open economy in the world. the u.s. is the largest recipient of direct investment. manufacturing was mentioned. we have about 5.6 million total good paying american jobs contribute in close to when chilean dollars to our economy that comes from foreign direct investment. that is white manufacturing, or masuda goal and energy companies for many of countries are setting up shop here in the united states every day. our trade agreements, our bills on the premise and shared , we have deals that go both ways. those create good paying jobs all over the world. they offer american firms

unprecedented global access. doors and ourour markets to foreign firms. this is the direction of the world. this is the way the world is going to move. those who understand it in those who move that rapidly to embrace the higher standards and the openness are those who will be able to take advantage of the new marketplace and be leaders in the global economy. no one can put the genie back in the bottle. have a great nafta debate in other struggles. free trade versus this sort of old order, if you will. single time we move forward in that openness and every single time we have embraced one of those agreements, we have done better. we have transitioned.

or always without disruption location, but with new great to the and innovation and new jobs. i want you to measure what we have done with our neighbors, canada and mexico. we have opened up north america through nafta, the greatest single step toward shared disparity in this hemisphere. we know we do not have to share a border in order to share a business. it is why we have free trade agreements with 20 countries from chile to morocco. people and $7 trillion in gdp. makeof that alone would the united states the best place to invest if we do not also focus on our workers and make sure that we are doing as much as we can to try to have the best workers and the most skilled and productive that we

can in the world. that is true in part because we work hard to make sure we can train them at the best schools and universities. a lot of effort was into that. we reach out to bring the brightest minds and the best talent from all over the world. many of you know and many of you probably were educated in the united states. i cannot tell you how many heads of state and finance ministers heads oft government, state and chief executives who i need as i travel the world as a to go to school who participated in educational exchanges and the fulbright program, meet them everywhere. foreign ministers in saudi arabia who has been foreign minister for 30 less years or more. he proudly reminds me of his

education at princeton. me another showed photograph and said this was you and me 25, 35 years ago when i met you at a loud diplomacy diplomacy -- law diplomacy school when you were a senator. many immigrants know that the american dream is not restricted to those born in america. go to miami, chicago, san francisco, any major city in america, you will find a community that speaks your language and understand your culture and welcomes diversity and can serve as an anchor for your next venture. it is not just the big cities. you heard it from secretary

pritzker and president obama. success stories. and upstate new york. singapore companies extending their supply chain to texas. german multinationals creating jobs in small towns in kentucky. ohio.ing in suburban south african energy firms investing in southwest louisiana . that is not in the future, that is now. there is no question that the united states is lucky to be bestto offer the world's climate today. made it clear that we are going to work at it even harder. it is about the future. we will refuse to sit still.

a world is getting more competitive, but so are we. chases capital. i'm confident we will continue to get stronger and be more effective. reason why.s a big as you heard yesterday and during the week that we are working hard now to make it easier for you to be able to invest here and making that effort is a much bigger part of our mission, especially now at the state department. that home, we are coordinating at every level. mayors in small towns all the way up to president obama. they're working with the foreign commercial service that we must organize dedicated investment teams led by our capable

ambassadors and our staff and we will actively encourage job investment in the united states as a core priority. a huge role inut helping businesses succeed. one of ambassadors lebanon tends average to encourage texas tarts to come to the united states. -- texas startups to come to the united states. the auto industries making a remarkable comeback. all over the world, working hard to help businesses meet their goal. the state department is engaged with a new level of intensity and focus because of the nature of the global marketplace. we believe we can do more and we will do more.

starting at 32 markets that represent 90% of all of the investment that comes here. what does that mean for business leaders like you? it means you will have a single connect youract to company with our markets and investors and the economic development organizations who are here to help you and your businesses grow. just the other week, i met with indonesia -- in indonesia. some expressed frustration to me with some of the foreign governments who preach the principle of open markets, but they act as protectionism. your ceos know that for markets create more opportunity, more growth, more dynamism and more innovation. the freedom to fail is an important component in succeeding. in order to open more doors and

continue the best investment climate in the world, we are going to continue to add to our strong portfolio of trade agreements that reaffirms our commitment to open and free markets. to have a level playing field. globalization means that people everywhere have higher expectations. , the revolutionary events taking place in the middle east and other parts of the world are a reflection of that. thatunisian revolution peacefully removed a dictator some 30 years was not ideological. it was not inspired by religious extremism. it was a fruit vendor that wanted to practice trade without

interruption and without interference. revolution.that people wanted to reach aspirations that they know that others in the world are living. square had nothing -- young people was texting each other and using their smartphones and the virtues of being able to text and delete and connect with people -- and tweet and connect with people. the same thing with syria. anywhere in the world can afford to look away from huge appellations of young people coming at us in unprecedented numbers. all of them in touch with aspirations. it is a different world.

what we are going to try to andmplish with two enormous high standard trade negotiations that are underway right now is to raise the standards and the possibility for people that ific partnership represents the percentage of trade. and we can lock that in, it will open up trade around the world. it is the largest market in the .orld it will create an enormous transformation in the standards that people are practicing. those efforts will dramatically expand our market reach and they so wetrengthen trading

can engage and race to the top. that helped everyone compete while ensuring strong protections for workers and consumers and the environment. while we are talking about we are looking at the biggest marketing world. some people try to grab it. imagine this. the market that created the great wealth of the united states in which every single income earners saw the income go up in the 1990s and created unprecedented wealth, more wealth than what was ever , much more wealth created in the 1990s. there was a $1 trillion market. a $6lobal energy market is

trillion market. around climb to summer users.more -- billion -- it will climb to summer around 6 billion or more users. we will fight to stay at the forefront of this energy market. we will recognize that it has the benefits of climate change is was a marketplace. we will develop clean technologies that will empower the world and protect our environment at the same time. we are on pace to become the largest oil reducer by 2020. the largest oil producer in the world. that gives us the promise of alternative fuels come including shale gas. we will become fully energy self-sufficient i the year 2035. 2035.the year

it is energy that fuels our air rivateat --pri -- p sector. the united states knows how to cultivate startups. not too long ago, our country was a start up. innovation is not just in our interest, but in our dna. that is why we aggressively protect intellectual property rights as part of a strong transparent or accountable or legal system. today we need entrepreneurship more than ever. as more and more young people roy and the labor market, the world would need about half one million new jobs by 2030. many of those jobs i guarantee you have not even been invented yet. entrepreneurship would help solve that puzzle and select usa

can help. a few weeks ago, i met with hundreds of entrepreneurs while i was in kuala lumpur. these are innovators they came from all around the world and the could not wait to build the next big thing. who knows? the best ideas are never limited by borders. these folks might be the ones that are changing the world. it is that kind of openness that drives american economy and foreign economies and moves all of us forward at the same time. needless to say, we have our own interest here. it is no secret that our presidents number one by yorty is creating strong middle class jobs here at home. he also knows that the best way to do that is to strengthen our international ties and foster broad growth around the world. we know that demoting inclusive

growth and strengthening the rule of law and other countries also helps us to create new markets for our businesses and jobs for workers. when we help other nations to develop their own ability to govern and meet the aspirations population, we foster stable societies and everybody here knows stability is pretty important with respect to investment decisions and prognosis. we do what we do because we have always known that we are all in this together. we are all connected in this. that is another reason why the united states the believe is the best place to invest. no other country where you can be confident that your investment is going to contribute to a shared cost parity. that idea is one of the

cornerstones of our country. you saw it in the marshall plan. -- marshall plan rebuilt after a war when all of the --nomies were strader shattered and broken. we all shared in a post-war posterity -- prosperity. there is a full-fledged partnership in the trading community. look at south korea. in less than a generation, south korea has been transformed from a -- recipient to 1 -- aid recipient to one of the biggest contributors in the world. that kind of sure prosperity today is more important than ever before for the reasons i talked about earlier about young

people and their aspirations. we also know in the united states that we are part of something much bigger than buying or selling in hiring and investing. before everyone is a ceo or secretary of state, we are citizens and by virtue of the fact that you are here, i know that you consider yourself citizens of the world. a member our shared responsibility to ensure shared prosperity is one of the most important ways we advance shared security. the secretary of state -- as secretary stay, i have traveled a lot. i do it for a reason. there is no substitute for face to face diplomacy. there is no more reliable way to build trust and ensure interest and values are aligned to close a deal. that is why you come here from all over the world to be in

washington and meet each other face to face and build relationships and share the ideas that could hopefully and conceivably change the world. as you build that confidence in each other, i want you to know there is no market in the world that i believe deserves your confidence more than this one. friends.ors and i think you understand that the united states, despite momentary political hiccups and despite sometimes the politics, still marches forward with a private sector that is increasingly empowered to define for itself what the economic future will be. my message to you is now is the best time to make that investment. meche pitches pretty direct. get in on the ground floor of this century of possibilities and transformation, the possibility of a great global

century, a century that hopefully will be defined almost exclusively by the sheriff sharedty -- by the prosperity it lifts everyone around the world. individuals who you're in for the opportunity to touch what we for are able -- who yearn the opportunity to touch what we have are able to. the sooner we get around to the business of doing it, the sooner we will solve some of the challenges we face today. thank you for letting me be here with you. thank you. [applause] kerryer secretary john concluded his remarks, the u.s. trade representative discussed revelations about nsa spying on allies, and how they can affect free-trade negotiations with the european union. this is an hour.

>> good morning, everyone. secretary kerry, thank you very much for that excellent, excellent speech. and thank you for joining us on the second day of our summit. we had a great day yesterday with president obama, with speakers and panelists, and all of the networking and match making opportunities. today promises to be even better. so let's get started. i am pleased to announce the start of our first panel entitled "why select the usa? using the u.s. as an export platform." we have a great lineup, including my friend michael tennessee,ernor from bmwig vilic, the ceo of north america, and the ceo of caterpillar. i'm going to let the moderator

go into a little bit more detail on each of our panelists. so let me introduce who will moderate today's panel. is a columnist and economics editor of a widely read blog in "the post." you can get the post's news on policy and analysis. neil is an author who led the post coverage of the financial crisis. ladies and gentlemen, please have a warm welcome to our moderator neil irwin. [applause] >> thanks so much. i will do the quick introduction. you heard from the secretary. we have been through an era in

which trade deals are with small countries. now we have trade deals with europe and cross regions. the governor of tennessee, bill haslem, is from the state that has succeeded as an exporter. it is good to have him with us. of america's great export success stories is caterpillar, the giant exporter of mining and construction agreement. the --equipment. the ceo is with us today. caterpillar is a great story of an american company who exports to the world. we also have the leader of a great european company that makes a great deal of stuff in the united states and we are proud to have ludwig vilic, the ceo fof bmw north america.

who's negotiating these trade agreements for the united states, the u.s. trade rep, ambassador michael froman. we are going to start with a few comments from each panelist. >> thank you. it is an honor to be here. i have been governor of tennessee for three years and one of the things people ask you is what have you learned? the answer is a whole lot, but one of the quick things he learns is this --international trade agreements directly impact the job of the state governor. when i started running several years ago, that certainly would have been one of the key issues. it is definitely true. let me give you context. in tennessee, we are proud of the fact that we still make things. we make a lot of automobiles, we make a lot of furniture, which

people thought had gone from being produced in the u.s. we had a company just last week announced they are moving jobs from china back to tennessee to produce things. we make a lot of medical supplies. we are proud of the fact that we still make things. as you'll see from some of my comments, the ability to make and sell those things is directly impacted by many of our foreign agreements. in context, we sell about an export to europe about $5.3 billion, about $2 billion to china. foreign direct investment in the u.s., and in tennessee we have 880 different companies located in tennessee, largely led by a lot of japanese companies. nissan came to tennessee 30 years ago. and a lot of automotive industry and suppliers have sprung up around them. i was interested to hear when she said there are 1.7 million americans working in

manufacturing jobs with foreign ownership. in tennessee, even though we are upof the population, we make seven percent of that total number of folks in the manufacturing business with foreign ownership. we are proud of the fact that for the last four years we have been named the leading state for automotive manufacturing. we have the largest cargo hub in the u.s., and the second largest in the world due to a small company called fedex. four international export development offices in the u.k., germany, mexico, and china. tennessee exports are estimated to grow if the t-tip tariff treaty happens, we think our exports will grow about 35%. close to $2 billion is at stake. we rank second in the nation for

the manufacturing jobs created over the last year. first in the southeast in both per capitaita -- income growth in gdp for the last 12 months in the top 10 in the country. we rank, the second leading state in the country for medical equipment supply exports. the nations exported medical equipment happens out of tennessee, even though, we are 2% of the population. there is a reason. fedex dominates in that business. in medical equipment if you need it, you need to write them. as a wrapup, let me give an example of three large companies that export out of tennessee and why it is important and why the tariff, the treaties we are talking about are important. eastman chemical is located in

upper east tennessee and has 7000 employees. they export about 1.5 billion per year. if the treaty is passed, that would increase chemical sales about, exports about $800 million a year to europe. nissan is the headquarters in the americas and their plant in tennessee is third-largest in the western hemisphere. about 14% of the vehicles that they produce are exported. i -- a medical equivalent suppliers is in memphis, and the value of their exports is $1 billion. on a lighter note, we export a few other things -- we export this brown liquid that people seem to know, by the name of jack daniels. i say i am the governor of tennessee.

they say, oh jack daniels, dolly parton. we got it. we have some other nice things we export. we are not alone for music, not just country. on the sweeter note, we make 300 m&m's everyday, and unilever announced they are building the world's largest ice cream plant in tennessee. from chemicals to automobiles to sugar, we have you covered. in me talk about the stakes terms of free-trade agreements and the impact. soon after coming into office, audi was looking at locating a plant somewhere very they ended nt. a $1.3 billion investme they ended up in mexico. there are a lot of reasons. for governors, when a plant locates an artist state is -- in our state, it is because the governor did a great sales job. one of the reasons here were the tariffs to import, to export

from the u.s., 10% to europe and 30% to purcell. we are relatively confident -- 30% to brazil. one of the reason that investment that went to mexico is because of the tariff agreements. wouldmplication of t-tip increase auto exports to europe by $900 million. mw willelist from b talk about the added costs for that. a feud numbers to wrap up with -- countries that we have free- trade agreements with our per capita exports are 16 times what the countries we have free-trade agreements as those that we do not. after nafta our exports to mexico went up 8 times, to canada three times. after the agreement with chile our exports went up 10 times. talks about the medical equipment. our exports to australia went up 8 times after the free-trade

agreements. i'll come back to the point i made -- as a governor, we are not involved in the negotiating treaties. but those treaties have incredible impact on the things we do. look forward to discussing it more. >> we have an hour. i am hoping to hear you pitch both caterpillar and the m w on locating in tennessee -- and bmw on locating in tennessee. >> that is why we are here. >> governor, thank you for a great review. we have a strong presence in nashville with the financial services business. 700 employees. everyone there is happy and really likes tennessee for lots of reasons. can you said one more time? ditto. i am often asked about manufacturing in america and can we compete from the u.s. on a level playing field? why don't we build anything?

we build a lot here. it is very timely that i came from athens, georgia, last evening because yesterday we cut the ribbon on a brand-new greenfield factory, 850,000 square feet, 1400 people strong when it is fully operational at the end of next year. and these will be small bulldozers and small excavators that were formerly only produced in japan. we brought those to the united states for several reasons. one, we can compete from a base here. two, we like the ports system here. and a lot of that production will stay in the u.s. and a lot of that will be exported to south america and europe. we feel there is a very good chance and a very good condition to not only build here but compete from a us-based. a year ago, we did the same thing in south texas on another excavator plant. 40 ton machines that also came from japan.

we will be building those for the first time in the united states and exporting to south america. some of that is coming back to the u.s., and i'm very proud of that as a u.s. manufacturing company. in fact, we spent about $6.5 billion in capital expense in five years in the united states. we invested heavily here. we have also spent about $10 billion in research and development over that same five years. we have plant after plant in our system in the united states that exports very large mining equipment. solely from the united states. we have factories in the midwest where 80% of the production is for export only. we work hard at being competitive both internally in our system at caterpillar, but we also work hard with the u.s. government and michael and many others to open markets outside the u.s., because after all, 95% of our potential customers are not in this country.

we desperate we need that. over the last five years, our total exports have exceeded $82 billion from the united states. and those are destined for virtually every country in the world at some point or another. i cannot over emphasize the benefits of trade. but sometimes it is a hard message. trade, and open globalization sometimes has a pretty tough context in a lot of the small towns where plants are. -- our plants are. without that, without access to those 95% consumers outside this country, i do not know where we will be a generation or two from now. we all need to work on that. finally, as an editorial, and i will conclude, we use xm bank 0--- ex-im bank.

they are part of the competitive landscape. other countries use them aggressively and every time we we go up against them because most of our competition is outside the u.s. they are competing with us for jobs, for customers, for our people. we have got to compete and ex-im needs to be a critical element of that play as we go forward. that is something that is also on the agenda along with open and free trade as we go forward. with that, i will conclude, thank you. >> neil, thank you very much for having me. bmw embraces the concept of the u.s. as a viable export but for. the collaborative and open free- trade agreements in this country have provided the basis for bmw to make a major investment in the production facility which not exports a majority of its vehicles worldwide. bmw group has a success story to share in our south carolina plant. however small it could be.

come to theties table to ensure more open bilateral trade agreements are embraced. back 1989, when our company was looking to locate a new bmw manufacturing plant in the u.s., we received invitations from many state governors. they all had an rsvp attached. we understand the french phrase, respondez s'il vous plait, and we did respond. however, rsvp also has another meaning, and this helped us to determine the actual site we chose. forse, rsvp is an acronym the values that had to be met for this new manufacturing facility to be successful. r as in. responsible s as in sustainable. v as in valuable.

and p asi profitable. americanting many sites, applying our values, we chose spartanburg, south carolina, and opened the plant in 1994. unqualifiedan success in terms of production and worldwide exports. i will give you some metrics in the moment, but here is how rsvp worked for bmw. talking about responsible. we received some offers that, while financially attractive to us, might not have been beneficial for the local business environment and infrastructure. and so we refuse them. feel thatd still the responsible approach of locating a new facility has to be a win-win for the state, county, city or town and the local population.

responsibility also means being able to provide jobs for skilled local area residents and not rely on the application of an outside workforce. with its strong network of technical schools and motivated workforce, the southeast u.s. and the state of south carolina fulfill these requirements. 85 transportation quarter and the part of trust of charleston provided us with an infrastructure. we took the responsible choice and located in south carolina. now to sustainable. bmw is committed to sustainability. in fact, it has been selected as the world's most sustainable automotive company by dow jones. a few facts about how seriously we take sustainability at spartanburg. we use methane that normally would be burned in the atmosphere from a landfill to

provide 50% of the plants total energy and 30% of the electricity. onsite energyatt center. we also have a farm to produce energy, a solar farm. we are the largest single fleet of hydrogen fuel cells of the world. we are zero waste to landfill for all nonregulated waste. this program has earned us the number one spot on the epa's list of green energy producers for the automotive industry. v as in valuable. our plant provides not only for the local and state economy but the entire country's economy as well. as soon as we open the plant, manufacturers flocked to the area in order to supply us with parts and materials necessary to produce our vehicles. today, there are 40 of them in

the state and a total of 170 nationwide supporting the plant and contribute into the u.s. economy. we are truly committed to our role as a major exporter from the united states. since our initial $300 million investment in the early 1990's, with an annual capacity of 50,000 vehicles, we have invested an additional $6 billion over the years and expanded the facility to the point where annual production is over 300,000 cars. today, the plant alone employs 7000 people supporting the local economy to the tune of $8.8 billion per year and supports an additional 31,000 jobs through south carolina. from the suppliers to our theers at the ports, to local coffee shop, our manufacturing plant in spartanburg helps to drive the economy. now we come to the final letter

of the acronym possible. wh-- profitable. why we selected spartanburg. here are a few facts to help you understand the scope of what we do. x6produce all x3, x5 and vehicles. soon there will be a new x4. production in 2012 was 300,000 units. we expect to grow to 350,000 thi s year. and they here -- ehrhere is a fact that may surprise you. 70% of these vehicles are shipped overseas. to 140 countries worldwide. we are the largest exporter of vehicles from united states. in addition, we also ship kits to another six markets around the world as well as individual

parts from charleston and we will soon utilize the facilities of the new in land ports. all of this export business is profitable for us and profitable for the nation, state, county and local cities as well as the manufacturing partners that surround it. from its humble beginning, producing 50,000 cars annually, our plant in south carolina has become a global success story. by producing exceptional products, with dedicated workers, our plant continues not only to generate prosperity for bmw but gives back to the region and to the u.s. this can only be made possible by the trade agreement in place through the auspices of the united states and its partners. as positive as all of these facts may be, there is still room for more comprehensive bilateral free-trade agreements. ladies and german, we strongly support efforts to further open unhindered trade throughout

the world and will continue to lend her voice to such efforts. i can clearly staete that using the united states as an export platform has been and continues to be the correct and profitable choice for bmw, because we are careful about how we rsvp to any invitation. [applause] spartanburg,ve of and i can vouch it is a very different place than 1994. me.hanks, neil, for having it is a great pleasure to be here for all sorts of reasons. firstr, to have college like secretary kerry and lew and been soo have supportive of what we're trying to do through the negotiation of these trade agreements makes a difference. i am grateful for their support. it is great to hear the governor's comments about the critical importance of trade

agreements to creating jobs and expanding the economy. and i've already talked to the governor, as i hear that kind of story, and that story needs to be told over and over in the city, because as doug alluded to, there is not as much understanding of how these trade agreements have an impact on job creation, growth, and communities and how we can make sure that, if we do the trade agreements the right way, we will have a positive impact on people back home. i am very grateful to doug for the leadership role he has been playing to mobilize the business community to convey that message. about howe is to talk what we're doing on the trade and investment agreement front is helping to contribute to the export of form we talked about. said this morning, 20% of our exports come from the subsidiaries of foreign firms in the united states, and that is a critical part of driving job growth in the united states. we get at those issues through

trade agreements and investment agreements. we have 40 bilateral treaties around the world. we have 17 trade agreements that have investment chapters. and those chapters give investors here in united states protection from expropriation, from discrimination, from the denial of justice. it gives them access to neutral, international arbitration. if there are real companies doing real work here, it gives them those kind of protection and other markets. it protects them from localization requirements and from something called performance requirements, where their products might be substituted out for local products. our network of bilateral investment treaties is absolutely critical to making this an attractive platform for foreign investment to be used not only here in the united states but as my colleague said for export to the rest of the world as well. on the trade side, we are

involved in a number of initiatives. the transpacific partnership where we are in the endgame. we have the launch of the transatlantic trade and investment partnership with the eu. we will deal with those two giant markets and help bring them closer together, 11 it costs, bring the regulatory regimes more closely together. when we complete those trade agreements, we will have created free trade with 65% of the global economy. there are other countries waiting in the wings to join each of those agreements. i expect by the time we are over, we will be at 75% of the global economy accessed from the united states through free-trade agreements. why stop there? we have launched an international services agreement in geneva that covers 70% of the global services market. an information technology market that covers 90% of the i.t. m

arket, to have free trade and a series of products in those markets. and we are pursuing bilateral investment treaties with countries like india and china. and china has made some dramatic steps in recent months by announcing they are willing to negotiate a bilateral investment treaty with us on the basis of something called a negative list and on national treatment during a companies -- before it's up and running. those are new writers with china. -- new breakthroughs with china. the details need to be worked out. you of all heard over the last day all of the reasons why it makes sense to invest in the united states and use this as your platform. have beensay, i visited by companies from all around the world, some of which are represented in this audience in recent weeks, who've said that between our legal system, our innovation, ecosystem, our workforce, the access to cheap and cleaner energy that

this is a platform they want to base themselves at. when you add to that the network of trade agreements that we are currently negotiating, this can be a global platform for exports and i think we will see more and more investment as a result. we are seeing a renaissance and investment in manufacturing, in sectors we never thought. we are seeing the expansion of global services businesses here and even investments in our agricultural sector which is a world-class character. optimistic about the u.s. being a platform for global investment and global exports with these trade and investment treaties and agreements providing a context for them. i am delighted this summit is bringing attention to that. it is nice to be on a panel where everybody supports what it is we are doing on trade agreements. and we are very grateful for all of your support as we go forward. >> maybe the place to start is

with our executives on the panel. ears, there many y has been a series of bilateral agreements with south korea, colombia and now we are in this world of talking about sweeping agreements with the eu and with pacific rim countries. how, doug, as you are making investment decisions, does the prospect or possibility of these broader agreements, how is that different for you than the one- off bilateral agreements? >> it is important to us. colombia agreement, for example. we were very worried that colombia and the number of our other country competitors would do a free-trade agreement and we would not be included. what happens with that, because so much of our competition is clement going into columbia, we would be looking at tariffs -- mining equipment going into columbia,

we would be looking at tariffs that japan, germany, sweden, others would not have to encounter. so i would go to our workers in central illinois and say, we have a 10% premium. what would it be? we have to find a way to be more efficient or we will lose the sale. we just cannot find ourselves in that position. it is critical. most of our big equipment from this country is sole sourced u.s. we need to have access to those markets the tpp example is a great one because i am convinced, michael, that most of those countries will sign an agreement with or without us, and we will be potentially looking in on that. i worry about that as an employer of 50,000 people in the united states and what happens to our opportunities as a result. >> let me give the perspective of being an importer and exporter, the x5 cars are going all over the world and bring sedans in from germany.

how do these agreements affect your business? >> it must have an impact. if you think, we still pay, if you look at our relationship between the united states and europe, we still pay import duties to europe, 10%. go into the u.s. that sums up year by year to a number of north of $550 million just as costs related to that. and it is not only about that import fees, but it is also about the different standards. it's about crash testing and about emissions. it is the same globe, the same human being sitting in the car, yet we have different standards, and they cost a couple of hundred million. we have to develop different cars or have to encompass all of

these different rules. so not having these additional costs must have a huge impact on our competitiveness, on our gro wth as such -- we still have to see, in detail, but it will have a huge impact. i see today how well we are doing with canada and mexico as opposed to brazil or argentina. brazil overnight has increased their import duties 30 %. a developingin context, how do these agreements matter? number i said, the peer you start with is we export 16 tons more per capita with companies we have free-trade agreements. the t-tip, specifically with automobiles, we would -- we could increase our automobile

exports almost $1 billion, which is huge in terms of the jobs created. >> exporting more nissans and volkswagens made in tennessee. >> we have gm as well. if you take it back to the eu, there is a 10% tariff, and another 7% to 10% in additional costs due to crash safety. you start out at a 20% disadvantage, that is huge. watched canada and the europeans negotiate and finalize a pretty good agreement, which i really hope opens the door on many things we can do with europe as a result. we have nafta with canada. there is not much of a difference with what they are doing with europe than what we are. >> ambassador, how are things coming? what do you see as the prospects

for both of these agreements over the next months or years? >> i'm optimistic. we are much further along on tpp. it has been underway three plus years. we are trying to work on the outstanding issues, which are still significant, but all of the countries around the table are working hard to try to get this done. are atgard to t-tip, we an earlier stage, but we have also been spending a lot of time with our european colleagues coming to a common understanding where we have similar or different approaches to an issue. there is no surprise. which does not mean it may not be very difficult, but i think it is doable. the great opportunity and also the challenge with the european agreement is that we are going to try and bring our regulatory standards more closely together, healthegulation, lower

and safety standards by trying to eliminate unnecessary costs or frictions that get in the way between two well0-regulated markets. that is something that will take creativity. it is a new area we are focused on. it is one that holds out a lot of promise. the other thing i would add, just to doug's point earlier, we do not live in a static world. other countries are not just waiting to see what it is we do. they are out there negotiating preferential access to key markets for our exporters. we need to be on the field as well. we need to make sure that not only are we on the field and getting access to markets but we are doing it in a way that raises the overall standards of the international trading system, that introduces new disciplines to deal with emerging issues. there is a real -- choice out there. the choices, are we going to a race to the top, where we try to raise standards. our ttp and t-tip partners

have bought into that. or are we going to be in the race to the bottom, which we do not want to win. reach theseto agreements on high standards so we can level the playing field, so that our workers in the u.s. have a chance to compete on a fair and level playing field because they are the most productive workers in the world, but we need to have that level playing field if we're going to succeed. the geopolitical tensions over nsa stuff, is that damaging to the prospects of a t-tip agreement? >> look, it is obviously a serious issue that is out there. our view is that these issues are to be kept on separate ofcks, in the right lanes dialogue between officials on both sides. you have heard from a number of europeans that they see the logic of moving ahead with t- tip.

it is important to their growth strategy to tighter -- to try to maintain competitiveness. we are hopeful we will continue to make progress on that. we have teams in brussels. there are negotiations that had to be canceled during the shutdown of the government but are back on track. we expect to continue those discussions in the coming weeks. >> a number of people have mentioned regulatory alignment, in autos. can you give us more detail of what that means in practice? if you are bmw, what are the challenges of having different regulatory regimes on both sides of the atlantic? >> one is obvious he crash testing. cars have to be crash tested in a different way in europe than they do in the u.s. enough, and mexico, mexico has the european crash testing. over the border, there must be some different animal living,

because there are different crash tests. agree to say, we only can that we accept mutually the standards of crash testing that would be already great success. thee can have, either sameean or the u.s., the that would be great. it does add a considerable amount of research and development, i.e., costs, and we lose competitiveness. the same holds true for all of the emission standards, where the u.s. is more focused on mileage. where europe is focused on emissions. but that is the same thing, the other side of the coin. we measure different things. why? >> so the cost savings would be in research and design. there are manufacturing inefficiencies that, but if you make sightly different -- >> of course. >> we have seen a preposterous

situation over the years within europe, and this is going back a little bit, but different onulations for backup alarms machinery. the decibel level, the sound, the frequency, it adds costs. placement of taillights and lighting on machines vary from country to country. >> you have to make the same construction equipment with slightly different beeping sounds. >> it adds costs. it drives the costs up for nothing. that is something we need to drive out. that alone will help us all. comment, i think the about this not being a static world and our competitors are getting better. they have agreements we do not have. senator kerry was talking earlier about the excellence in u.s. higher education, how that

helped us, training more and better engineers, but those days are ending. so our natural design advantages are going to be harder to come by going forward. and so we need those things, so we are not starting with a 10% cost disadvantage. >> in asia. what would it mean for caterpillar? >> we have a huge business in asia and growing. that is the single largest opportunity over the next decade or so. we intend to be that market. but again, i come back to the point that it is likely that a lot of those countries, a number of those, will do agreements with or without us. if we don't get tpp done. we will look into a market that we ought to be competing with. i'll move to africa because i am passionate about this. we watched the chinese really take over africa. they've come in with their own

financing, their own engineering, sometimes their own workers to take over minerals, extraction, oil and gas, hydroelectric power across afticrica. i know, michael, that is on your agenda. but i am so pleased to hear that the crossover between commerce and the state, because that is what we really need. that is what china does so well. they combine all of their assets, all of their possibilities to go after business and try to win customers over. i think we can do that, and i really think the commerce-state, nation can be very fruitful. we would like to help with that. it is a great opportunity. radembassador, so t promotion authority is a big issue. as the you see prospects in congress to get trade promotion authority, to get fast-track? what would it mean if you do not? can you negotiate these

agreements if that is not a part of the equation? >> the president made clear that it is a critical tool for being able to move these agreements, make these agreements really never met them. just this week, there was a hearing in the senate finance committee on t-tip where chairman bachus talks about the importance of moving forward on trade promotion authority, and we are working with the finance committee and the ways and means committee, both democrats and republicans, to try and move this forward as quickly as we can with his broad support as we can possibly have. we think it is a critical tool. ultimately to getting agreements through congress and of limited. and that is why we want to get it done. assume if you are rooting for some of these deals, you would .s.e to see it --d the u

government has a strong negotiating position as possible. >> governments to not create jobs. but we do set the conditions for that to happen, so we work hard in tennessee. we have the lowest debt per capita. the lowest tax rate. great infrastructure. we have done all the things we think we can do to help this be a great productive work environment, but there are certain things that are out of control that dramatically impact jobs in tennessee. when i hear manufacturers tell us, we love being in tennessee and we love the work environment, but if we had this agreement in place, we could produce x more jobs. it is frustrating to me because it is something that is out of my control, but it is critical for me to lend that voice, whether it is in washington or anywhere else, to raise ti. we have worked hard to set up a great working environment in tennessee. there are certain things that are beyond our control. >> so i understand everyone on

this panel is an enthusiast to disagreements, but we want to be clearheaded about some of the competitive costs. in the construction-mining business, what you see as the competitiveness that would come from -- imports would be less expensive? what are the challenges you will face of some of these deals come to be? >> well, that is a great reestion, and one we a battling on many fronts, and it comes back to the competitiveness of the united states. you get into things like education system, our taxing system, and all of the things that make u.s. companies competitive vis-à-vis our competitors around the world. that is another brought sucbjec t. to have a level playing field between ex-im bank and tariffs and the ability to penetrate markets that are open is kind of the foundation of all of this. past that, it is up to u.s. companies to be competitive and

up to the american government, certainly, to help us all be as competitive as we can to create manufacturing jobs and job growth. i look at it in those three steps of foundational work. the opening of markets is fundamental to starting the process. we export an awful lot from the united states. we work hard every day on internal label agreements. we have spent a lot of time on our education system. but if we do not have those markets to start with, the rest of this is -- we have got to be there to play. auto business,e what would you see as the competitive threats? >> we love free-trade and we love competition. i can only tell you that made a strong over the last 50 years, from a humble company with 4000 employees, to way north of 100,000.

we are the most successful premium manufacturer in the world. in europe, which is still our biggest market, there is free- trade and we are used a competition. we love to see you is the best. we are not afraid of anything that is competition. skewed by protectionism. we are looking for unilateral, free trade that would grow our business. >> same question. what are the advantages that workers and manufacturers and tennessee have that make you confident in a more level playing field they will prevail? >> a couple things. at the end of the day, it will be about having the right trained workforce, and we are doing everything we can to make sure we have enough engineers and enough welders and i.t. professionals to provide the product. is there a downside? and there are.

we not only make cars and medical equipment, we also grow tomatoes. since nafta their sales are down. in the long-term, they say we are going to win. we realize you are opening up our markets to that process. we kind of believe in competition. we will take our chances in that world. our job is to set the right structure, make sure we have the right environment, very predictable. and make sure we are training the right workers. we think we are doing that. assor, some ofmb the industries that face more competition's, is there a way to help those workers? >> absolutely. when president obama came into office he wanted to make sure we were negotiating trade agreements that were, the benefits would be broadly shared and where we recognize that we need to take care of anybody who

is displaced. that is why we have insisted that the trade adjustment assistance be part of the practice. it expires in two months. it is always been linked to trade promotion authority. congress takes up trade promotion authority, that they will marry it with trade adjustment assistance so we can move this forward. let me say one more word about that -- trade promotion authority there is a lot of misinformation. it is the mechanism by which congress gives us our marching orders. they tell us what to negotiate, how to work with them during negotiations, and what the conditions will be under which they will consider an agreement to approve or disapprove it. we work closely with congress throughout every trade negotiation, hand in glove. trade promotion authority is the way that gets structured. this has been part of our overall trade agenda.

we have to make sure we monitor the agreements and enforce them. we have increased our enforcement efforts throughout this administration by bringing more cases at the wto, using our trade laws, bringing in the whole government approach to our enforcement efforts to the interagency trade enforcement center. and that has helped convey to people that we want to make sure this works for american workers and farmers and ranchers across the board. >> so you have a unique opportunity. you are here on a panel with the men who are negotiating these big, -- the man who is negotiating these agreements. from the perspective of tennessee or caterpillar or bmw, what would you urge the u.s. government to focus on, as they all these trade-offs with

of the different interests involved in these negotiations? >> i'll start. in all of these, it is a series of compromises. my encouragement would be, and i will tell you that ambassador froman is one -- of the best at this. i have great trust in him. he start with the big chunks of off, andd whack those you make the compromises in the places you have to, but you have to be as broad as you can across as many industries as possible to get it done. i know that is exactly how michael does it. is hard to say, because unless you are in the room negotiating a deal, what you can compromise on. as much as we can get broadly in these agreements, the better off we are all going to be. iam not going to stand -- have a long list of things i would like to have done, but i'm not going to do that to you, ambassador. he knows what it is.

>> i do not know i have a lot to add to that. in any negotiation you start with how much is at stake and i think there is a lot at stake here. my encouragement would be, do not like the 10% of the things that are the most difficult but still our only 10% of the things stop it from happening. >> i could not agree more. we should not strive for the best of all agreements. we should settle for a good agreement. if that agreement would include away withe cannot do different standards, that we would accept the standards that we have in the u.s. and europe and likewise. so it would just make things easier. >> it is important to remember that there is a lot of change that has to come to the u.s. and some of these deals. i would go to agriculture as one that has frankly been a stumbling block for many, many years to get some of these done. as a result, the has to be managed as well. it is a very difficult set of

negotiations when you're going after the backbone that has made our country what it is. >> i'm afraid that is the same in europe. >> it is, and japan as well, for that matter. >> ambassador, tell us the pathway from here. what does this next time look like as you and your staff at ustr try to come to a deal? >> as this discussion demonstrates, the challenge before us is that, even within the u.s., we oftentimes have stakeholders with diametrically opposed interests. our job is to figure out what the best approach is and support the greatest numbers of jobs, the most growth, the most benefit for the u.s. economy. with a balancing, even among domestic interests, and then to go to 11 other trading partners in the case of ttp and t-tip and figure out a for everybody.

nobody gets 100% of what they want and 100% of the chapters, but we have to be able to look at the package as whoa whole ad sure that is serving our interests and our values and that it is supporting what we need to support in the united states in terms of job creation, growth, and strength and the middle class. everything we do is tied back to those three objectives. so we will be working over the course of the next couple of months on tpp. as t-tip get up and running, we will try to achieve that objective. >> and hope there are no more government shutdowns to stop yo u. a couple of you have mentioned agriculture, which is not really represented up here. governor, you have the tomato industry in tennessee. tot do you say to a farmer, somebody who is being asked to make real concessions on what kinds of subsidies they receive

for agricultural work? >> that is the difficult piece. i do not know the number, but i have seen the number that tennessee produces versus pre- nafta. there has been ahit. a couple of things. number one, food is more about quality and number two, it is about access to markets. deal hasto table become a huge opportunity for local growers. let's keep concentrating on the markets you know you can do well on with quality. we will specify tomato farmers. i am confident your tomatoes can be better than those brought in, let's all that. >> nafta has been mentioned in the context of autos. brazil there is suddenly a high tariff. what are the lessons of nafta over these last 20 years, and

what implications do they have for how these agreements come to be? >> nafta is a model case how we should move on. stay in the to american context, to see how it works with south korea, where we have free trade as well. we are doing great with south korea, even though they have a strong automotive industry themselves. so, i think it really is about embracing free-trade wholeheartedly and work on it. >> any lessons for caterpillar? >> i think virtually all of the imperial data and evidence would show that nafta has been a winner. company, ittry -- has been huge. we have taken advantage of a tremendous oil and gas business in canada, a lot of development in mexico. and tremendous benefit to the

u.s.. withoutnafta i do not know where we would be in mexico and canada. mexicans and canadians i know would tell you the same thing. >> what is your experience with nafta? >> if you go back to specifically, our exports to mexico were up 8 times. and to canada, up three times. are their winners and losers in the process? yes, but net. c, that me just add one metri and that is basically only true because free-trade agreements we have around the globe in the last 20 years, our production, the last seven years i would say, where this is a model site, has gone up in the u.s. by 40%. but exports have gone up by 70%. it shows how free trade fosters growth. up, i would ask each

of you to think through and give a couple of comments on a, what you expect world trade to look like in the next year and what you hope to see. what are the great opportunities, the great risks, and the most likely outcomes, things you expect to see out of both the european and pacific agreements? >> i have very high hopes that we will see a deal on ttp fairly soon and t-ip behind that -- t- tip behind that. with the job creation, and asia, europe, and the u.s., i would expect to start to see the benefits of that two years later, as we are starting to see with south korea and colombia today. it is not take very long to open the spigot on exports and imports once those tariffs come down. standards are synchronized and so on.

i would be pretty optimistic that it would help job growth and gdp growth in all three zones, but particularly this one. 95%, of our consumers are outside this country. we need to learn to deal with that. >> governor? >> directly, i do not have the number on the pacific, but with the t-tip agreement, we think our exports will go up 35%, which is about $2 building. you always-- $2 billion. there are things working to our vantage -- energy costs in the u.s. are going down. that is not true and a lot of other countries around the world. we can take advantage of that. the logistics cost of transferring goods are getting to be a bigger piece of something relative to the labor piece of that. so we can take advantage of that as well. i just think the market is

turning to our spanish right now. -- our advantage right now. it would be a shame if we did not create those additional jobs because of not having these agreements done. >> ludwig? >> we should always keep in mind tip, free-trade supports growth, it supports new jobs, foreign investment, innovation. so in the end, the consumer benefits from all of that. it creates jobs. ina world of free trade, there will be production moving to those countries where there is free-trade, and free trade will always foster exports. we are here a if year from now, what are we going to hear? >> i share the governor's optimism about where the u.s. will be in this global trading system.

when we look around the world, including in sub-saharan africa, across asia, and parts of latin america, there is a real movement towards recognizing the opening markets, provided you do it in the right way, that opening markets can really drive job creation, growth, innovation. we look at what the pacific alliance is doing in latin areica, what our partners doing in sub-saharan africa, the leading reformers and african countries. there is a desire to make sure trade is playing a major role in their development and investment. stands to benefit hugely from this shift in the global economy, provided we can do the things we need to do here. our because risk is getting our fiscal house in order, getting immigration reform done, and getting these things on trade startingur congress, with trade promotion authority, which every president has had since 1974. tip, to make sure we

are at the center of this network of agreements, together with our legal system, our education system, our access to energy, could make this a platform that every country around the world wants to be in. and growth here at home. >> we will close down. thank you so much for all of thoughts. well done. [ applause ] >> tonight, on c-span. armed services committee chairman senator carl levin inlks about the situation afghanistan. followed by remarks from obama and prime minister of iraq nouri themaliki and remarks at antidefamanion league. week, michigan senator carl levin