follow identification (and use the names) of principal cities. Separate software will identify principal cities and area titles.

Census Bureau staff will review all of the estimated 800 area definitions, principal cities, and titles using tabular and cartographic documentation that will be produced by the definition software. Concurrently, we will follow a parallel set of steps (using 2000 minor civil division-to-minor civil division commuting data and separate programming) to define New England City and Town Areas (NECTAs), as well as their principal cities and titles. We estimate that completing the definition, principal city, and title work will require eight weeks, taking the project to early September, but we plan to deliver area reports to OMB on a flow basis before that time has elapsed.

Separate programming modules will address the definition of metropolitan divisions within the largest metropolitan statistical areas and the definition of NECTA divisions in the largest NECTAS. Assigning titles in these cases could require more manual work than the titles of metropolitan and micropolitan statistical areas, since there could be some instances where no principal cities are present. This work will require one to two weeks.

All contiguous metropolitan and micropolitan statistical areas will require additional review to determine whether they are candidates to become combined statistical areas. An additional software module will identify two classes of combinations--those that must take place under the OMB standards because of the strength of their commuting ties and those that will be subject to local opinion because the ties are weaker but still significant. Titles of combined statistical areas also are subject to local opinion. Again, the Census Bureau will design the software to produce documentation of the areas and will review all combined statistical areas before delivery to OMB. In addition, the local opinion cases will require preparation of instructions and options for presentation in OMB's notification of local opinion options. We estimate that preparation of combined statistical area materials will require four weeks, ending in midOctober. OMB would then use this information to prepare letters to the appropriate congressional delegations to request local opinion.

OMB's Overall Responsibility

The Standards for Defining Metropolitan and Micropolitan Statistical Areas and the application of those standards are OMB's responsibility. OMB will review all aspects of area definitions, principal cities, and titles provided through the Census Bureau's work in applying the standards with census data. OMB also will, under the standards, seek local opinion in specified circumstances. This step will require sending letters to congressional delegations, allowing appropriate time (45 to 60 days) for response, and then analyzing the information received before making a final announcement. The local opinion process undoubtedly will involve hundreds of pieces of correspondence.

OMB has indicated that its schedule calls for completion of its work by mid-2003, but the agency also has indicated to the Census Bureau that the final announcement will be made earlier if it is possible to complete the work ahead of schedule. Experience in previous decades has strongly indicated the wisdom of making a single announcement of

areas to minimize confusion among federal data users and treat all areas equally, while maximizing internal efficiency in preparatory work.

May 4, 2001

Mr. LATHAM. Right. And we would invite you to come over and visit with them first.

Secretary EVANS. Sure.

FREE TRADE

Mr. LATHAM. Okay. I have, obviously from Iowa the trade issues are extremely important, and I would just like to hear what kind of priority and what your outlook is for the fast track authority for the President.

We are, as I think most people are aware, that there are trade agreements going on all over the world today, where we are not even at the table because the President does not have that authority, and so we would like to expedite that as soon as possible.

I just wonder what you first see happening, and what kind of priority this is with the Administration.

Secretary EVANS. It is certainly the highest priority. The President has talked frequently, over the last several years, about the importance of free and fair trade. It is an issue that will get, great attention from us in the months ahead.

I think, what I would say to you is that I am, heartened by the progress on a number of fronts. One example of the progress was having been in Argentina and Quebec City and talking to the leaders of the Western Hemisphere, and hearing their desire to move forward with FTAA or bilateral trade agreements.

There are a number of countries within the Western Hemisphere. Obviously, we have on-going discussions with Chile. We hope that we will have an agreement up here before the end of the year.

We have on-going discussions with the Andean countries in South America. We have on-going discussions with Jordan, Vietnam, Singapore. Obviously, we are also getting ourselves ready for WTO.

I think, in terms of Trade Promotion Authority, I have total understanding of the importance of communication with Congress and trust between the Executive Branch and Congress, consultation with Congress, and listening to Congress as to their concerns, and issues.

And so that is what I am in the process of doing, beginning, along with Ambassador Zelleck, to spend a lot of time talking to members of Congress, trying to push trade promotion authority along.

I am one that remains optimistic that we will have Trade Promotion Authority before the end of the year, but I understand there are a lot of issues still to be dealt with. There has got to be a trust relationship with Congress.

And not only that, we have to pay close attention to the concerns of Congress and specifically in the areas of labor and environment. I mean, we have to understand how those issues are going to be dealt with.

So, anyway, I know there is a lot of work to do, but I also do not underestimate the task of Trade Promotion Authority being passed by Congress. Though I am optimistic it will happen, I also think it is a very important tool for the President to have as we continue to open up this world to trade and make sure that America continues to be a player at the table.

Mr. LATHAM. Thank you for that answer, and I hope that we can proceed quickly on that.

TRADE SANCTIONS

Just one last thing. I would really like to associate myself with some of the comments that Mr. Serrano made about trade and the ability for us to look at some of these sanctions that we have in place. From my understanding of the last counts that I have seen, in the last eight years, we have had about 120 trade sanctions, and over half of those have been in the last eight years.

And it really has an effect, and I am speaking from Iowa's point of view obviously, but our situation there when you have about 40 percent of the world under some type of sanction, even if there is an exclusion for food and medicine, it certainly does have an effect on our abilities to sell our products overseas.

And we always have to respect obviously the human rights and those aspects of it, but in fact I do not think cutting off the opportunity for people to get food from the United States is a way of encouraging democracy or freedom around the world either.

So I would be very, I would hope you would be very close in your scrutiny of any suggested sanctions.

Secretary EVANS. Indeed we will. Thank you, Congressman.
Mr. WOLF. Mr. Kennedy.

Mr. KENNEDY. Thank you, Mr. Chairman.

I would like to begin with the free trade issue since we have been talking so much about it. I just want to add my experience.

I have been down to South America and I have found that they did not want a wholesale free trade agreement anymore than those of us who opposed it in Congress for the same reasons; they were concerned about their own labor situation, their own environmental situation.

And they said, well, it is often perceived that our countries would benefit a lot from free trade, those in South America, would like to see a free trade agreement. They are faced with the same political pressures that we are faced with domestically.

They have to make sure their workers are treated fairly, and their environment is protected. And they find that because they are in small countries, that their chambers of commerce really run roughshod over them.

I mean, we know here in this Congress in this country, how much the Chamber of Commerce really dominates over labor/environmental groups.

So you can imagine if it does this in this country, what it is like it is not even a contest-down in those Latin American countries where you have these multi-national companies that come in and basically, with fewer dollars than they can dictate the laws here, really dictate what the laws are down there.

And of course, it is in their own self interest and their corporate responsibility to dictate them in the way that would be most favorable to their stockholders.

So leave no impression that they are about to do it because they want to try to make those countries better places to live. So I would just leave that for you. That is my experience.

I have been to the Maquiladoras across from Mexico. These places, like The New York Times article a couple weeks ago illustrated, are still paying pennies on the dollar what we pay and these workers are still subjected to intolerable situations.

And I might add, those employers have the same rights to our marketplace as our domestic producers and yet they do not have to adhere to any of the same rules and regulations because they are over the border in another country. Hence, we, our domestic manufacturers are put at an enormous disadvantage because while we have to comply with labor laws, child labor laws, environmental standards, they do not have to.

And what kind of fair trade is that? And if you go there, and I encourage you to go there, and I am sure you have, it will break your heart because there is not a home in that whole Maquiladoras section that has a floor on it. They are all mud, and every single roof is a thatched roof, and it is leaking, and there is a whole family of six living in a room that we would not consider big enough to have as a lavatory.

So, I mean, global trade offers possibilities but only if we have the proper mechanisms, like allowing workers to organize, that will provide a flexible balance in the offset of power because this is all about power. Who has the power.

And unless labor has power, guess what? You are not going to give any impetus for advancement of workers' rights. And I think that is simplistic but I think that it is borne out of experience, and anybody who has witnessed how life works, it is all based upon who has got the power.

In that regard, if we do go forward with the President's initiative on free trade, I hope that the President is sincere about making sure we have safe protections for workers and the environment.

TRADE ADJUSTMENT ASSISTANCE

I would say there is another protection that we need if we do go forward with free trade, and that is having TAA, the Trade Adjustment Assistance, supported.

Now I know in the current budget it is flat-funded. For those businesses that are expected to move into a global economy and work through the transition that an ultimate free trade agreement would bring to our local businesses, I would encourage you, as Secretary of Čommerce, to support Trade Adjustment Assistance. I know there are many companies like Colonial Knife and B&L Plastics in Rhode Island, that have benefitted tremendously from that. And it has basically allowed us to save money from unemployment insurance and a whole host of other programs so it is smart money spent. I would just encourage you to do that.

INTERNATIONAL TRADE DATA NETWORK

And also I want to just add, in terms of helping us get into global trade, that while we can open up markets, and also open up existing markets that are already available, many small businesses, as you know, do not even gain access to them because they do not have the backing that the big businesses have. And that is why I wanted to make you aware of the International Trade Data Network.