Commission on International Trade and State Sovereignty

Draft Minutes

Meeting of 8/22/2007

Subcommittee Planning Public Hearing on Issues of Business and Competition

Members Present:                 Rep. Kathie Keenan, Commission Co-chair and subcommittee chair; David Anger; John Boomhover; Dan Brush; Dana Eidsness

Members Absent:                  All members of the subcommittee were present.

Also Present:                          Legislative Counselor Sam Burr and staff Nedene Martin.  No members of the public or media attended.

Recording:                              CD 2007–16 & 2007-17

Convene

Rep. Keenan called the meeting to order at 9:45 in the lower conference room of the Greater Burlington Industrial Corporation, 60 Main St., Burlington. 

PowerPoint presentation discussion and review, in anticipation of public hearing on effects of international free trade agreements on Vermont’s business competitiveness

Sam Burr explained that the business and competition subcommittee is planning for the first of a series of public hearings that are intended to both seek input from and provide information to the business community and the public about Vermont-specific issues related to international free trade agreements.  To help focus the task, he reviewed the statute that authorized the Commission.  Relevant portions include the Commission’s charge of preparing an annual report to be presented in January, 2008, to various governmental entities about the impacts of international free trade agreements on Vermont’s business environment and the charge of recommending ways to protect Vermont against any negative effects of such agreements.

Mr. Burr highlighted the need to stimulate public interest in the issues surrounding international trade.  He encouraged commissioners to think of ways to get the public interested – what media to use, what parties to notify, whom to invite to testify.  Mr. Burr directed the subcommittee’s attention to the draft PowerPoint presentation, which was distributed as paper copies, under review for release to the public prior to the first hearing.  He noted that the presentation includes statistics that should stimulate interest.  For example, Mr. Burr said, it caught his attention that Vermont’s exports as a percentage of gross state product are the highest of any state in the nation, at 18%, with the average being just 7%.  Rep. Keenan noted that IBM’s trade with Canada accounts for most of that figure; once IBM is subtracted, Vermont’s ranking drops to among the very lowest.  It was agreed that the PowerPoint should be edited to show that distinction in slide #6.

Discussion ensued about Vermont-Canada trade.  John Boomhover remarked on the exchange rate of the Canadian and U.S. dollars, noting that imports from Canada have declined but tourism and travel from Canada are up.  Dana Eidsness stated that her office has been receiving increasing numbers of calls from people whose normal modes of doing business have been disrupted by border-crossing issues.  Some report having been held up for hours at the border and some report being forced to obtain a work permit simply in order to attend a conference or meeting in Canada.  Mr. Burr stated that Vermont and federal officials are trying to meet security concerns by increasing scrutiny at border crossings but that business is being negatively affected.  Rep. Keenan and others commented on the importance of Canada fulfilling its commitment to extend highway 35 to the border, which would improve safety and expedite travel for both pleasure cars and freight trucks. 

Suggestions were made for additions and improvements to the PowerPoint presentation.  Various typographical and spelling corrections were suggested, and that definitions of terms should be moved to the front.  Ms. Eidsness said that she will provide legislative council staff with statistics from 2006 to update the 1994 figures used in the draft.  Mr. Boomhover stated that there are many free trade agreements available to Vermont manufacturers wanting to do international business that they may not be aware of; this commission can help spread awareness.  To augment the “opportunities” section of the presentation, he will provide to legislative council staff an updated list of such agreements and the countries eligible under their coverage.  Mr. Burr will choose a legal case to illustrate the significance of slide #12, issues related to international trade and states’ regulatory authority.

Dan Brush stated that he had read an article relating to current efforts to expand NAFTA through rule-making.  There was general agreement that this is of concern; Mr. Brush will send a link to the article for inclusion in the Commission’s web site or use as a link in the presentation. 

Rep. Keenan expressed frustration that unsafe products are being allowed into this country and that she does not know what Vermont can do about it.  Discussion ensued about problems with toys and other Chinese goods.  Mr. Burr commented on the irony that state-inspected meat cannot be shipped out of the state, yet Vermont inspections are much more thorough than federal inspections of imports, which are done on only a spot basis; this anomaly puts Vermont meat producers at a competitive disadvantage.  Intellectually pirated or unsafe imported electronics and medications were also mentioned as concerns.  Ms. Eidsness cautioned that the China discussion could sidetrack the public hearing unless the subcommittee chair reigns it in.  Discussion turned to how to monitor and facilitate the testimony at the public hearing. 

Agenda for the public hearing

It was agreed that the public hearing on the effect of international free trade agreements on Vermont’s competitive environment must be focused on taking specific factual testimony illustrating how Vermont businesses are being affected.  Ms. Eidsness suggested that the subcommittee chair welcome attendees and make an introductory statement regarding the commission’s expectations, what is intended to be done with the information gathered, and what is possible to do with it; it should be explicitly stated that the Commission intends to formulate some action items.  It was agreed that the subcommittee chair will need to keep people on focus and set time limits.  Some issues will better be left to the other hearings (for example, concerns about lead and pollution can be discussed under the banner of environment rather than under the banner of competition).  Mr. Boomhover suggested, and others agreed, that the focus of this discussion should be on converting the dangers of international trade agreements into opportunities for Vermont businesses.  

Subcommittee members offered observations about effects of international trade that they are aware of in Vermont.  Dan Brush stated that Killington’s new owners laid off local workers and then applied for visas to bring in foreign workers.  Rep. Keenan said that Bolton Valley Resort had recently been run using many South American workers who put in long hours and sent some of their pay out of the country.  She noted that apple-picking jobs have long been held by foreign workers but that the travel and tourism industry now increasingly hires foreign workers as well.  Mr. Burr remarked that many farmers have found that foreign farm workers tend to be careful and attentive to detail.  David Anger said that cleaning crews used by many firms, including IBM, employ foreign workers.  Mr. Brush indicated that data from the Department of Labor show that skilled jobs are being taken offshore and service sector jobs that have significantly lower benefits and wages are proliferating here.

Sam Burr said that Michael O’Grady will make the PowerPoint presentation at the hearings.  The presentation is to be ready ahead of time and to be distributed via e-mail and/or the web.  It was agreed that some of the information will be new and perhaps startling to much of the public and that providing links to supplemental web sites may be helpful, especially from the slides relating to “dangers.”  Ms. Eidsness said that she would be pleased to post the presentation on a dedicated page of the web site of the Vermont Global Trade Partnership.  Mr. Burr noted that members of the public can e-mail questions and comments to the Commission after reading the materials.

Mr. Boomhover asked how questions from the public would get answered at the hearings and whether each commissioner would speak as an individual.  Rep. Keenan responded that the purpose of the hearings is to do fact-finding and so she would expect the commissioners to do more listening and asking than answering.  Mr. Burr suggested it would be helpful to delineate some questions to be distributed in advance to help the invitees focus their testimony.

Mr. Burr reminded the subcommittee that there had been discussion regarding videotaping the proceedings.  Ms. Martin reported that ORCA TV, the local cable channel, would provide equipment and personnel to tape 3 hours of a hearing for $150 and that copies for statewide distribution could be made available for an additional fee.  It was agreed that this price seemed very reasonable.  Ms. Eidsness indicated that the Commission has a budget, with funds lodged in her department, which can be used for this and other purposes, including possibly paying for some presenters or expert consultants.  She will e‑mail the amount available.  There was consensus that taping the proceedings and bringing in expert speakers are appropriate uses for the money.

Rep. Keenan stated that she feels more time is needed for preparation and suggested that the schedule of public hearings be pushed back.  There was general agreement that the proposed schedule seems quite ambitious.  Ms. Eidsness suggested that the Commission first present, as an introduction to the topic and a prelude to the series of hearings, an educational program (“International Trade 101”) for the business community at large.  Suggested presenters included Bob Stumberger and Peter Riggs of the Forum on Democracy and Trade, and Warren Gunnels, senior policy legislative assistant for Senator Sanders, who handles international trade issues for the senator.  Mr. Burr explained that the public hearing on agriculture had been scheduled last, December 12, in the hope that the federal Farm Bill would by then have been finalized, but that now appears unlikely.  However, Mr. Burr reminded the members that their report on their findings is due in January.  Subcommittee members conferred on their availability.  Rep. Keenan and Mr. Burr will consult with Sen. Lyons by this week or early next week about the possibility of scheduling an educational presentation with expert speakers.  Possible dates to reschedule the business subcommittee hearing in order to provide adequate notice to the public include:  Thursday, September 27; Tuesday, October 2; and Tuesday, October 30.

Identifying Interested Parties

There was general agreement that advance publicity and media coverage will be key to generating public participation.  News releases should be prepared and it would be helpful to get an article placed in Business Monday of the Burlington Free Press.  Ms. Eidsness said that her office has many notification lists that may be useful, and can help prepare and distribute the press materials.  However, she indicated that with such a broad-ranging list of possibly interested parties, it will not make sense to try to compile a single e-mail list; rather, the contact people for various groups should be asked to notify their constituents or members.  It was agreed that legislative council staff will develop the informational piece to be sent out to interested parties prior to the educational program and hearings and Ms. Eidsness’s office will disseminate it through “e-mail blast.”

The members generated a list of groups and firms to be notified about the hearing.  These include:  the ski areas, chambers of commerce, members of the travel and tourism industry, National Life and other insurance companies, agricultural entities, Associated Industries of Vermont, businesses in Vermont, the Vermont innkeepers association, labor groups, the Congressional delegation, colleges and universities, hospitals, nurses, transporters (including UPS, FedEx, and trucking companies), financial institutions, utilities, and the Vermont Bar Association.

Adjourn

The meeting adjourned at 11:30 a.m.

Respectfully submitted,

Nedene Martin

Committee Staff