[Senate Hearing 115-33]
[From the U.S. Government Publishing Office]
S. Hrg. 115-33
NOMINATION OF WILBUR L. ROSS, JR.,
TO BE SECRETARY OF
THE DEPARTMENT OF COMMERCE
=======================================================================
HEARING
BEFORE THE
COMMITTEE ON COMMERCE,
SCIENCE, AND TRANSPORTATION
UNITED STATES SENATE
ONE HUNDRED FIFTEENTH CONGRESS
FIRST SESSION
__________
JANUARY 18, 2017
__________
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Transportation
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ONE HUNDRED FIFTEENTH CONGRESS
FIRST SESSION
JOHN THUNE, South Dakota, Chairman
ROGER F. WICKER, Mississippi BILL NELSON, Florida, Ranking
ROY BLUNT, Missouri MARIA CANTWELL, Washington
TED CRUZ, Texas AMY KLOBUCHAR, Minnesota
DEB FISCHER, Nebraska RICHARD BLUMENTHAL, Connecticut
JERRY MORAN, Kansas BRIAN SCHATZ, Hawaii
DAN SULLIVAN, Alaska EDWARD MARKEY, Massachusetts
DEAN HELLER, Nevada CORY BOOKER, New Jersey
JAMES INHOFE, Oklahoma TOM UDALL, New Mexico
MIKE LEE, Utah GARY PETERS, Michigan
RON JOHNSON, Wisconsin TAMMY BALDWIN, Wisconsin
SHELLEY MOORE CAPITO, West Virginia TAMMY DUCKWORTH, Illinois
CORY GARDNER, Colorado MAGGIE HASSAN, New Hampshire
TODD YOUNG, Indiana CATHERINE CORTEZ MASTO, Nevada
Nick Rossi, Staff Director
Adrian Arnakis, Deputy Staff Director
Jason Van Beek, General Counsel
Kim Lipsky, Democratic Staff Director
Chris Day, Democratic Deputy Staff Director
Renae Black, Senior Counsel
C O N T E N T S
----------
Page
Hearing held on January 18, 2017................................. 1
Statement of Senator Thune....................................... 1
Letter dated December 19, 2016 to Hon. John Thune from Carlos
Gutierrez, Secretary of Commerce (2005-2009)--George W.
Bush....................................................... 31
Letter dated December 20, 2016 to Hon. John Thune from
William M. Daley........................................... 32
Letter dated December 20, 2016 to Senator John Thune from
Donald L. Evans, 34th Secretary of Commerce................ 33
Letter dated January 6, 2017 to Hon. John Thune and Hon. Bill
Nelson from Peter Tichansky, President and CEO, Business
Council for International Understanding.................... 34
Letter dated January 9, 2017 to Senator Thune from Leo W.
Gerard, President, United Steel Workers.................... 35
Letter dated January 10, 2017 to Hon. John Thune and Hon.
Bill Nelson from Peter G. Peterson, U.S. Secretary of
Commerce, 1972-73.......................................... 36
Statement dated January 18, 2017 from Senator Chris Dodd,
Chairman and CEO, Motion Picture Association of America,
Inc........................................................ 37
Statement of Senator Nelson...................................... 2
Prepared statement........................................... 4
Letter dated January 17, 2017 to Wilbur Ross from Florida
scientists: Senthold Asseng, Professor, Department of
Agricultural and Biological Engineering, University of
Florida; Keren Bolter, Research Affiliate, Center for
Environmental Studies, Florida Atlantic University; Jeff
Chanton, Professor, The John Widmer Winchester Professor of
Oceanography, Department of Earth, Ocean and Atmospheric
Science, Florida State University; David B. Enfield (ret.
2015), Dept. of Physical Oceanography, NOAA Atlantic
Oceanographic & Meterological Laboratory; Pamela Hallock
Muller, Ph.D., Professor, College of Marine Science,
University of South Florida; David Hastings, Professor,
Marine Science and Chemistry, Eckerd College; Barry
Heimlich, Vice Chair, Climate Change Task Force, Broward
County; Ben Kirtman, Professor, Department of Atmospheric
Science, Rosenstiel School for Marine and Atmospheric
Sciences, University of Miami; John H. Parker, Professor
Emeritus of Chemistry and Environmental Science, Department
of Earth and Environment, Florida International University;
Randall W. Parkinson, Ph.D., P.G., Research Faculty
Affiliate, Institute for Water and Environment, Florida
International University; Brad E. Rosenheim, Ph.D.,
Associate Professor, College of Marine Science, University
of South Florida; Philip Stoddard, Professor, Department of
Biological Sciences, Florida International University,
Mayor of South Florida; and Harold R. Wanless, Professor
and Chair, Department of Geological Sciences, College of
Arts and Sciences, University of Miami..................... 92
Article dated December 2016 from NOAA's National Centers for
Environmental Information.................................. 94
Statement of Senator Cantwell.................................... 41
Statement of Senator Blunt....................................... 44
Statement of Senator Klobuchar................................... 45
Statement of Senator Sullivan.................................... 47
Statement of Senator Blumenthal.................................. 49
Statement of Senator Heller...................................... 51
Statement of Senator Wicker...................................... 52
Statement of Senator Schatz...................................... 54
Statement of Senator Gardner..................................... 56
Statement of Senator Peters...................................... 58
Statement of Senator Cortez Masto................................ 60
Statement of Senator Johnson..................................... 61
Statement of Senator Hassan...................................... 63
Statement of Senator Udall....................................... 65
Statement of Senator Lee......................................... 67
Statement of Senator Young....................................... 68
Statement of Senator Duckworth................................... 70
Statement of Senator Booker...................................... 72
Statement of Senator Fischer..................................... 74
Statement of Senator Cruz........................................ 75
Statement of Senator Baldwin..................................... 77
Statement of Senator Moran....................................... 79
Statement of Senator Capito...................................... 81
Statement of Senator Inhofe...................................... 83
Statement of Senator Markey...................................... 84
Witnesses
Hon. Marco Rubio, U.S. Senator from Florida...................... 5
Wilbur L. Ross, Jr., to be Secretary of the Department of
Commerce....................................................... 6
Prepared statement........................................... 8
Biographical information..................................... 9
Appendix
Response to written questions submitted to Wilbur L. Ross, Jr.
by:
Hon. John Thune.............................................. 99
Hon. Roger F. Wicker......................................... 99
Hon. Deb Fischer............................................. 100
Hon. Dan Sullivan............................................ 100
Hon. Cory Gardner............................................ 101
Hon. Todd Young.............................................. 101
Hon. Bill Nelson............................................. 102
Hon. Maria Cantwell.......................................... 104
Hon. Amy Klobuchar........................................... 117
Hon. Richard Blumenthal...................................... 119
Hon. Brian Schatz............................................ 123
Hon. Edward Markey........................................... 125
Hon. Cory Booker............................................. 129
Hon. Tom Udall............................................... 135
Hon. Gary Peters............................................. 140
Hon. Tammy Baldwin........................................... 142
Hon. Tammy Duckworth......................................... 144
NOMINATION OF WILBUR L. ROSS, JR.,
TO BE SECRETARY OF
THE DEPARTMENT OF COMMERCE
----------
WEDNESDAY, JANUARY 18, 2017
U.S. Senate,
Committee on Commerce, Science, and Transportation,
Washington, DC.
The Committee met, pursuant to notice, at 10:03 a.m. in
room SD-G50, Dirksen Senate Office Building, Hon. John Thune,
presiding.
Present: Senators Thune [presiding], Nelson, Cantwell,
Blunt, Klobuchar, Sullivan, Blumenthal, Heller, Wicker, Schatz,
Gardner, Peters, Cortez Masto, Johnson, Hassan, Udall, Lee,
Young, Duckworth, Booker, Cruz, Baldwin, Moran, Capito, Inhofe,
Markey, and Fischer.
OPENING STATEMENT OF HON. JOHN THUNE,
U.S. SENATOR FROM SOUTH DAKOTA
The Chairman. Good morning. We are meeting today to
consider the nomination of Mr. Wilbur Ross to be the next
Secretary of Commerce. If confirmed, Mr. Ross would bring
decades of business, entrepreneurial, and civic experience to
this important position.
Mr. Ross is perhaps best known for his expertise in
revitalizing distressed businesses, such as those in the United
States steel industry. At a time when most inventors had
abandoned the industry--investors I should say had abandoned
the industry, he organized International Steel Group in 2002
and, through acquisitions, made it the largest integrated steel
company in North America. Later, it merged with Mittal Steel to
form the largest steel company in the world.
Mr. Ross's strong record of achievement in business led
Bloomberg Businessweek to name him one of the 50 Most
Influential People in Global Finance in 2011. It's also why he
is the only person elected to both the Turnaround Management
Hall of Fame and the Private Equity Hall of Fame.
Mr. Ross's business experience is complemented by his
service to the community. Mr. Ross served as a First Lieutenant
in the U.S. Army, and he is currently a Member of the Dean's
Advisory Board of Harvard Business School. He is also an
Advisory Board Member of the Yale University School of
Management, which has presented him with its Legend of
Leadership Award.
Mr. Ross's nomination comes at an important time in our
Nation's economic recovery. I believe his extensive management
experience in the private sector, and his understanding of the
challenges faced by workers and businesses alike, will equip
him well for the job of leading the Department of Commerce.
This large department, which has 12 different bureaus and
nearly 47,000 employees located in all 50 states and around the
world, oversees a diverse array of issues, from trade to
fishery management, and from weather forecasting to the Census
Bureau.
I will be asking Mr. Ross about many of the challenges
facing the Department and our economy. First and foremost, I
will be asking how he plans to deal with trade matters as the
Secretary of Commerce.
I also want to explore how, if confirmed, he would continue
to play a lead role in advocating for policies that promote
American innovation, like freeing up government spectrum for
private use and facilitating the growing Internet of Things.
Mr. Ross's experience turning around businesses should help
him anticipate and mitigate the risks of major programs like
FirstNet, the independent authority charged with creating a
nationwide broadband network for first responders, and the
acquisition of critical weather satellites by the National
Oceanic and Atmospheric Administration.
Finally, I would note that collaboration between the public
and private sectors is one of the hallmarks of the Department's
work, as exemplified by the ongoing development of
cybersecurity best practices and standards, which this
Committee has strongly endorsed.
Mr. Ross, should you be confirmed, we will be depending on
you to continue this collaboration and strengthen it where
necessary.
Mr. Ross, I believe your business know-how and intelligence
make you an excellent candidate to serve as the next Secretary
of Commerce, and I look forward to supporting your nomination.
I want to turn now to our Ranking Member, the distinguished
Senator from Florida, Senator Nelson, for any opening remarks
that he would like to make.
STATEMENT OF HON. BILL NELSON,
U.S. SENATOR FROM FLORIDA
Senator Nelson. Thank you, Mr. Chairman.
Mr. Wilbur Ross and Hilary Ross, we welcome you both to the
Committee. I want to congratulate you on your nomination. You
and, interestingly, the incumbent, Secretary Pritzker, have
some of the most extensive financial holdings of any nominees
who have appeared before this Committee. After reviewing your
financial disclosure and ethics agreement, it's my
understanding that you have agreed to divest the vast majority
of your personal holdings and resign from nearly 50 boards and
organizations. I believe that's the right thing to do, and it
tells me that you are committed to doing the job the right way
by placing the public's interest ahead of your own. It's my
hope that President Trump will follow your lead and the example
that you set to eliminate any business dealings that could pose
potential conflicts of interest.
Now, in recent years, the Commerce Secretary post has not
been one of the most sought after or one of the most
appreciated positions in Washington, but I have a feeling that
that's about to change in a big way.
As the President-elect has indicated, he is going to look
to you to help lead the Administration's trade agenda. That's a
departure from past Commerce Secretaries and the role that they
played, which was much smaller in setting U.S. trade policy.
Given that expanded role and the incoming President's desire to
make job creation and overhauling trade deals top priorities, I
hope that we'll hear from you today, as the Chairman has
already indicated, on the administration's trade plans and how
you hope to create jobs that will benefit all Americans.
I would like for you to tell us more about how your trade
duties might expand and how this could impact the role of the
U.S. Trade Representative, who traditionally has taken the lead
on trade negotiations.
And while we're on the topic of protecting American
workers, there has been some negative commentary on how you
built your business empire by buying and selling troubled
companies. Others have lauded you for saving companies and
thousands of jobs. I think it would be most helpful to all of
us on the Committee if we could get an assessment from you on
your record of job creation and what lessons you've learned
that will help you grow the economy and protect American
workers.
Now, while I expect a good portion of today will be spent
talking about trade and jobs and your experience, there is a
lot more to the Department of Commerce. This Department, of
some 40,000 employees, impacts our daily lives in a a number of
ways: providing vital weather forecasts to millions of
Americans through NOAA and the National Weather Service,
playing a huge role in building out our Nation's digital
infrastructure, helping grow and expand minority-owned
businesses, collecting all sorts of data, including data
critical to jobs and the economy, as well as monitoring
environmental conditions and climate change.
And that brings me to one of my last topics and one that is
especially important to, Mr. Ross, your state of Florida, that
is, sea level rise and global warming. Florida has over 20
million people and 75 percent of them live on the coast,
including the two of you. The state's highest point is only 345
feet. That, by the way, a piece of trivia, in the Peninsula
State, is a position in the middle of the state where Bok Tower
at Lake Wales is located.
Because of the work of NOAA and NASA and other agencies, we
have measurements and forecasts that can tell us when a monster
storm is coming. And we also have the science to know that
coastal communities face peril even on sunny days because of
the long-term atmospheric trends. Scientifically accurate data
from weather satellites shows that this is, in fact, happening.
And the problem is that some folks will go to any lengths to
deny this truth, including gagging climate scientists. Now,
that shouldn't happen and that should be troubling to all of
us.
So given your personal experience of being a Floridian, I
hope that you will agree on the need to continue vital
scientific research to inform the public about extreme weather
events and trends over time. And it's my hope that we'll get a
commitment from you to not allow intimidation or censorship of
climate scientists under your jurisdiction.
And with that, Mr. Chairman, I see my colleague, my fellow
Floridian, Senator Rubio. He has come back to the Committee,
and I know you are going to introduce him. I'm looking forward
to having him formally introduce our nominee.
[The prepared statement of Senator Nelson follows:]
Prepared Statement of Hon. Bill Nelson, U.S. Senator from Florida
Mr. Ross, as a fellow Floridian, I'd like to welcome you here and
congratulate you on your nomination.
I can't promise you today's hearing will be a piece of cake, but
I'm looking forward to having a comprehensive and cordial discussion
about your qualifications and how, if confirmed, you might handle many
of the pressing issues you could face.
I'd like to start by acknowledging that it's no secret you have
some of the most extensive financial holdings of any past or present
nominee before this committee. After reviewing your financial
disclosure and ethics agreement, I want to note that it's my
understanding that you have agreed to divest the vast majority of your
personal holdings and resign from nearly 50 boards and organizations. I
believe that was the right thing to do and tells me you're committed to
doing the job the right way by placing the public's interests ahead of
your own.
It's my hope President Trump will follow your lead to eliminate any
business dealings that could pose potential conflicts of interest.
Mr. Ross, in recent years the Commerce Secretary post has not been
one of the most sought after or appreciated positions in Washington.
But I have a feeling that's about to change in a big way.
As the President-elect has indicated, he is going to look to you
and Secretary of State nominee Rex Tillerson to lead the
administration's trade agenda. That's a departure from the recent past
when previous commerce secretaries played much smaller roles in setting
U.S. trade policy.
Given that expanded role and the incoming president's desire to
make job creation and overhauling trade deals top priorities, I hope
we'll hear more from you on the administration's trade plans and how
they will create jobs and benefit all Americans.
Additionally, I'd like for you to tell us more about how your trade
duties might expand and how this could impact the role of the U.S.
Trade Representative, who traditionally has taken the lead on trade
negotiations.
And while we're on the topic of protecting American workers, Mr.
Ross, there's been some who have suggested that you built your business
empire on the backs of workers who lost their jobs after buying and
then ultimately profiting from the sale of troubled companies. Others
have lauded you for saving companies and thousands of jobs.
I think it would be most helpful to all of us on the Committee if
we could get an assessment from you on your record of job creation and
what, if any, lessons you've learned that will help grow and protect
American workers.
While I expect a good portion of today will be spent talking about
trade, jobs and Mr. Ross' experience, there's lots more to the
Department of Commerce.
This little department of some 47,000 employees impacts our daily
lives by:
Providing vital weather forecasts to millions of Americans
though NOAA and the National Weather Service;
Playing a huge role in building out our Nation's digital
infrastructure;
Helping grow and expand minority owned businesses; and,
Collecting all sorts of data--including data critical to
jobs and the economy, as well as monitoring environmental
conditions and climate change.
That brings me to my last topic and one especially important to
Florida--sea level rise and global warming.
Of Florida's 20 million people, over 75 percent live in coastal
counties, including Mr. Ross. The state's highest point is only 345
feet above sea level.
Because of the work NOAA and other agencies are doing, we have
measurements and forecasts that can tell us when a monster storm is
coming.
We also have the science to know that coastal communities face
peril even on sunny days because of longer-term atmospheric trends.
I know some people think climate change is a hoax.
But the data--scientifically accurate data--from weather satellites
shows that it is happening.
The problem is that some folks will go to any length to deny this
truth, including gaging climate scientists. That should be very
troubling to us all.
So, Mr. Ross, given your personal experience of living in Florida,
I hope you agree with me on the need to continue vital scientific
research to inform the public about extreme weather events and trends
over time. Additionally, it's my hope we'll get a commitment from you
to not allow intimidation and censorship of climate scientists under
your jurisdiction.
With that Mr. Chairman, I'd like to welcome my colleague and fellow
Floridian, Senator Marco Rubio, back to the Committee to introduce Mr.
Ross.
The Chairman. Thank you, Senator Nelson.
We are very privileged to have Senator Rubio here, your
colleague from Florida, and our colleague in the U.S. Senate,
to introduce Mr. Ross.
And so I welcome you back to the Committee, Senator Rubio,
and please proceed with your remarks.
STATEMENT OF HON. MARCO RUBIO,
U.S. SENATOR FROM FLORIDA
Senator Rubio. Thank you, Mr. Chairman. I must say to the
Members, you guys look different from this side of the dais.
[Laughter.]
Senator Rubio. But anyway, thank you. I appreciate the
honor of being here, Mr. Chairman. I'm honored to be here to
introduce Wilbur Ross, who is a fellow Floridian, and he is
President-elect Trump's nominee for Secretary of Commerce. I
also want to thank you and Senator Nelson for allowing me this
honor, especially as you said, I enjoyed serving on this
Committee for the past 6 years.
So to say that Mr. Ross has extensive business experience
and extensive experience working in the private sector I
believe is quite an understatement. For more than half a
century now, there is virtually no part of the American economy
in which he has not created jobs. This includes industries such
as airlines and apparel, auto parts, banking, beer, chemicals,
credit cards, electric utilities, food service, furniture, home
building, insurance, marine transport, mortgages, oil and gas,
railcar manufacturing and leasing, real estate, restaurants,
shipyards, steel, textiles, and trucking.
In all, Mr. Ross has been Chairman or Lead Director of more
than 100 companies operating in more than 20 different
countries. And he would bring this real-world experience to a
department whose mission is fundamentally about expanding
opportunity for American entrepreneurs and workers all over the
world.
Despite his professional commitments in the private sector,
Mr. Ross has also devoted time to public service, answering the
call from leaders in both parties.
All-in-all, Mr. Ross will bring an important perspective to
major policy debates we need to have. This includes modernizing
our tax codes, strengthening our economy, empowering
entrepreneurs and small businesses, increasing wages for hard-
working families, and ensuring a fair and competitive playing
field when it comes to selling American products and services
to the rest of the world. I am confident that Mr. Ross will
serve this Nation admirably, and I am proud to introduce him to
the Committee here today.
And I thank you, Mr. Chairman, and I thank the Ranking
Member.
The Chairman. Thank you, Senator Rubio.
I want to ask Mr. Ross, please come forward and take the
witness stand, and we'll look forward to hearing directly from
you.
I see you're surrounded by Floridians today, Senator
Nelson. And I know that there are many of Senator Klobuchar's
and my constituents who end up being part-time constituents of
yours this time of the year in Florida.
Senator Nelson. And eventually they become full-time.
[Laughter.]
Senator Nelson. And, Mr. Chairman, we are looking forward
to hosting you in Florida, as you so graciously hosted me in
South Dakota. So, too, we're going to show you the amazing
River of Grass, the Everglades.
The Chairman. Thank you. And thank you for doing it in
February.
[Laughter.]
The Chairman. Mr. Ross, please proceed. Welcome.
STATEMENT OF WILBUR L. ROSS, JR., TO BE SECRETARY OF THE
DEPARTMENT OF COMMERCE
Mr. Ross. Thank you, Mr. Chairman, Ranking Member Nelson,
and Members of the Committee. I am very grateful for the
opportunity to appear before you today. As a proud resident of
Florida, I would also like to thank Senator Marco Rubio for his
kind introduction.
With me today is my wife, Hilary Geary Ross.
Since President-elect Trump announced my nomination, I've
had the opportunity to meet with many of you. In our meetings,
I've heard firsthand how we can work together to the benefit of
the American people. These meetings have been helpful to me,
and I look forward to continuing the dialogue.
I may be the only nominee ever for Commerce Secretary who
actually worked as a Census taker. When I was working my way
through Harvard Business School, I was a Census taker, what
they more technically call an enumerator, in the Scollay Square
area of Boston. And that task was quite fascinating in that
they had me wear a big white belt, it ran diagonally from the
shoulder to the waist, and then a big white one around the
waist, and a big kind of school patrol badge, and then we had
to talk our way into people's households to get them to let us
take the Census. So I have firsthand expertise in that, and I
can appreciate the enormity of the task for the 2020 Decennial
Census.
I've also been, over the years, a very large consumer of
various forms of data put out by different departments of the
Department of Commerce: census data, BEA data, data from NOAA.
All kinds of information have come out, and I believe it's the
case that the Commerce Department emits 40 percent of all the
data to the public that comes out of all of the departments
combined. So that's a huge task. Getting it right, getting it
timely, is a big challenge and one that we will work a lot on.
Another very, very important function, of course, is
spectrum. We need more spectrum in the private sector. And I
will try my best to help convince those government agencies
that have spectrum and don't really need it to permit it to be
commercialized, and that may very well be a help toward
extending broadband to some of the more rural communities and
other segments that are underserved right now.
I have some firsthand experience there in that I have been
Vice Chair of my community in southern Florida that's in the
process of undergrounding its utilities to bring fiber optic
service and 21st century service throughout the community, and
also to protect us better against the exigencies of weather,
which, as Senator Nelson and Senator Rubio pointed out, is a
big threat in southern Florida.
Weather sensitivity is something that comes to you
naturally if you're in Florida. Hilary and I live right on the
water there, and so we're well aware of the importance of
timely warning of impending hurricanes. And I'm also aware that
until NOAA has been launching its new series of satellites,
there had been an inferiority of our weather forecasting
relative to what was done in Europe and in Japan. As far as I
can tell, the new sensing devices will more than bring us up to
equal and probably ahead of the others.
Southern Florida also is characterized by very great
importance of fishing and tourism, and if there is one
consistent message I got as I met with the various Members of
the Committee, it's just how important fishing is. I didn't
really understand quite how intricate an industry it is. I
think I now have some fundamental grasp of it and its
importance.
One of the things I would like to try to help correct is
we, believe it or not, have a trade deficit in fishing of some
$11 billion a year. Given the enormity of our coastlines, given
the enormity of our freshwater, I would like to try to figure
out how we can become much more self-sufficient in fishing and
perhaps even a net exporter of fishing.
As to trade, over the years, I've had businesses that
actually operated in some 23 countries. For the most part, our
businesses have been domestic, but we have been on the ground
in all of the major trading partners of this country. As a
result, we know directly both what's good and a lot of the
things that are not so good about the trade policies of many of
these other countries.
I am not anti-trade, I am pro-trade, but I'm pro-sensible
trade, not pro-trade that is to the disadvantage of the
American worker and the American manufacturing community.
I think we should provide access to our markets to those
countries who play fair, play by the rules, and give everybody
a fair chance to compete. Those who do not should not get away
with it, they should be punished, and severely.
I think that we cannot afford trade that is inherently bad
for American workers and for American businesses, but I think
there are plenty of opportunities to expand our exports, and I
think the number one objective will be expanding our exports. I
think that there are many things that we can do that we haven't
been doing, and I look forward to discussing some of those as
we get into more detailed questions.
Very recently, the President-elect has convened meetings
with various of the high-tech executives, and I've been
impressed to learn from them how similar the problems they face
with the protectionism and a variety of other countries to the
problems that manufacturing businesses face. So while the exact
implementation of the improper things is not the same, the
general direction is the same, trying to thwart American
progress. That's something we need to try to fix.
There are many, many more functions that the Commerce
Department has, but in the limited time of introductory
remarks, I think I'll stop there and hopefully deal with the
others during the question and answer period.
So I thank you again for having me here today.
[The prepared statement and biographical information of Mr.
Ross follow:]
Prepared Statement of Wilbur L. Ross, Jr., Nominee for Secretary,
United States Department of Commerce
Mr. Chairman, Ranking Member Nelson, and members of the Committee,
thank you for the opportunity to appear before you today. As a proud
resident of Florida I am honored by the presence of both of my home
State Senators, and I would also like to thank Senator Marco Rubio for
his kind introduction.
With me today is my wife, Hilary Geary Ross.
Since President-elect Trump announced my nomination, I've had the
opportunity to meet with many of you. In our meetings, I've heard
firsthand how we can work together on behalf of the American people.
These meetings have been helpful to me. I look forward to our continued
dialog.
Mr. Chairman, I am honored to be under consideration for Secretary
of the United States Department of Commerce. I'm particularly
interested in the Department of Commerce for several reasons.
First, I may be the only nominee for Secretary of Commerce that was
a U.S. Census Taker. I was working my way through Harvard Business
School and that was one of the jobs that I had during college. At that
time, we would put on the big white sash along with a badge and we
would visit individual homes and record information for the Census. I
was assigned to Scollay Square in Boston. We had to convince people
through a small opening of the door that we were helping record an
accurate count. So I have some personal experience with the Census--a
very important function within the Department of Commerce.
Second, like many other business people across the United States, I
have been a consumer of the data and information the Department
provides an a periodic basis. Data the Department gathers and makes
public, such as the Census data, the data that the BEA puts out and
NOAA's reports, to name a few, are essential functions. I believe there
is greater potential in the breadth and the depth of the data the
Department provides to encourage new investment.
Third, in terms of telecommunications, the Department auctions
spectrum and helps bring access to broadband to communities nationwide.
In some small way I have direct experience with broadband deployment.
Before this nomination, I was the Vice Chair of the Utilities
Undergrounding Task Force where I live in Southern Florida. The Task
Force is eager to move to fiber optics and telecommunications to our
community. In order to do so the Task Force had to do it in way that
was not damaging to the Everglades.
That brings me to NOAA. Living on the coast in Southern Florida, we
are all very sensitive to weather because of the yearly hurricane
season. So weather information is critical to us, like so many
communities across the United States. I am also well aware of the
importance of the fishing industry and tourism to coastal economies, so
I am looking forward to the individual issues on those matters that
fall within the jurisdiction of the Department of Commerce.
And then there is trade. I've made my livelihood for over five
decades dealing in international commerce. My companies have operated
on the ground in some 23 countries around the world. Sometimes those
operations have progressed happily, sometimes a lot less happily.
I've also been in the middle of complicated situations in our
domestic manufacturing sector and being subjected to some of the bad
trade activities of other countries, both in terms of non-tariff trade
barriers that some countries impose on us and state subsidies of
foreign exports coming into the United States. I think I've probably
had more direct experience than any prior Cabinet nominee has had with
unfair trade in the steel business, in the textile business, in the
auto parts business and other sectors. I am very well aware of the
issues many companies face and I'm sensitive to both the issues abroad
and the issues here at home.
While I have worked with many people across many lands, the thing
I'm proudest about in my whole career is working with Leo Gerard, the
President of the United Steel Workers of America, and other unions in
saving the American steel industry. Working together we were able to
save thousands of jobs and ensure this important industry continued in
the United States.
I also understand that at the end of the day, each of our trading
partners want access to our market. The United States should provide
that access to nations who agree to play by our standards of fair
trade. We should not put up with malicious trading activities, state
owned enterprises, or subsidized production.
So I am not anti-trade. I am pro trade. But I am pro sensible
trade, not trade that is detrimental to the American worker and to the
domestic manufacturing base.
During these past few weeks, President-elect Trump has met with
many business leaders from across many industries. I have attended many
of the meetings. One of the meetings was with leaders from the tech
industry. I was amazed how similar the problems they are facing, both
in terms of trying to compete in foreign jurisdictions and competition
coming in from abroad, are to the problems faced by more traditional
industries like steel and textiles. The techniques and products of the
tech industry are different but the nature of the adverse trade
activities they face are very similar to those experienced by the
industries I've worked in for many years.
The Department serves many more functions, and I very much look
forward to helping the American entrepreneur, the American worker, and
American companies both big and small drive this economy forward and to
create jobs.
I want to thank my wife for supporting my decision to enter public
service, and to thank you once again for the opportunity to be here in
front of this Committee. If confirmed I look forward to working with
you and with the many dedicated public servants at the Department of
Commerce.
I look forward to your questions.
______
a. biographical information
1. Name (Include any former names or nicknames used): Wilbur Louis
Ross, Jr.
2. Position to which nominated: Secretary of Commerce.
3. Date of Nomination: November 30, 2016.
4. Address (List current place of residence and office addresses):
Residence: Information not released to the public.
Office: 1166 Avenue of the Americas; 25th Floor, New York, NY
10036.
5. Date and Place of Birth: November 28, 1937; Weehawken, NJ.
6. Provide the name, position, and place of employment for your
spouse (if married) and the names and ages of your children (including
stepchildren and children by a previous marriage).
Spouse: Hilary Geary Ross, Writer, Home.
Children: Jessica Colby Ross, 55; Amanda Colby Ross, 51.
Stepchildren: Alfred Harrison Geary II, 42; John White Geary
III, 39.
7. List all college and graduate degrees. Provide year and school
attended.
Bachelor of Arts, Yale University, 1959.
Master of Business Administration, with distinction, Harvard
University, 1961
8. List all post-undergraduate employment, and highlight all
management level jobs held and any non-managerial jobs that relate to
the position for which you are nominated:
------------------------------------------------------------------------
Date Company Position
------------------------------------------------------------------------
2000 to present WL Ross & Co. LLC Chairman and Chief
Strategy Officer
------------------------------------------------------------------------
1997-2000 Rothschild Recovery Fund Chairman, Chief
Investment Officer
------------------------------------------------------------------------
1996-98 New Communication Inc. CEO
------------------------------------------------------------------------
1976-2000 Rothschild, Inc. and its Executive Managing
predecessor. New Court Director
Securities Corp.
------------------------------------------------------------------------
1964-76 Faulkner Dawkins & Sullivan President
Securities Corp.
------------------------------------------------------------------------
1964-66 Winthrop de Vegh Management Research Analyst
Company
------------------------------------------------------------------------
1964-66 Wood Struthers & Winthrop Research Analyst
------------------------------------------------------------------------
1964-66 De Vegh International Corp. Vice President
------------------------------------------------------------------------
1961-63 U.S. Army Adjutant General Served to First
Corps, Fort Benjamin Harrison Lieutenant
& Fort Dix
------------------------------------------------------------------------
9. Attach a copy of your resume.
Please see Attachment 1 attached.
10. List any advisory, consultative, honorary, or other part-time
service or positions with Federal, State, or local governments, other
than those listed above, within the last ten years.
------------------------------------------------------------------------
Government Entity Position
------------------------------------------------------------------------
Town of Palm Beach--Board of Trustees of Chairman
Retirement System
------------------------------------------------------------------------
Town of Palm Beach--Board of Trustees of Trustee
Retirement System
------------------------------------------------------------------------
Town of Palm Beach--Fire Fighters Trustee
Retirement Fund
------------------------------------------------------------------------
Town of Palm Beach--Utilities Underground Vice Chairman
Task Force
------------------------------------------------------------------------
11. List all positions held as an officer, director, trustee,
partner, proprietor, agent, representative, or consultant of any
corporation, company, firm, partnership, or other business, enterprise,
educational, or other institution within the last ten years.
Please see Attachment 2 attached.
12. Please list each membership you have had during the past ten
years or currently held with any civic, social, charitable,
educational, political, professional, fraternal, benevolent or
religious organization, private club, or other membership organization.
Include dates of membership and any positions you have held with any
organization. Please note whether any such club or organization
restricts membership on the basis of sex, race, color, religion,
national origin, age, or handicap.
Please see Attachment 3 attached. No such club or organization
listed therein restricts membership on the basis of sex, race, color,
religion, national origin, age, or handicap.
13. Have you ever been a candidate for and/or held a public office
(elected, non-elected, or appointed)? If so, indicate whether any
campaign has any outstanding debet, the amount, and whether you are
personally liable for that debt.
No.
14. Itemize all political contributions to any individual, campaign
organization, political party, political action committee, or similar
entity of $500 or more for the past ten years. Also list all offices
you have held with, and services rendered to, a state or national
political party or election committee during the same period.
Please see Attachment 4 attached.
15. List all scholarships, fellowships, honorary degrees, honorary
society memberships, military medals, and any other special recognition
for outstanding service or achievements.
Fifty Most Influential People in Global Finance, Bloomberg
(2015)
Elected to Private Equity Hall of Fame
Elected to Turnaround Management Association Hall of Fame
(2013)
Awarded medals by the governments of the Republic of Korea
and Japan
Awarded Businessman of the Year by Florida Trend
Chairman of Marquis Who's Who
16. Please list each book, article, column, or publication you have
authored, individually or with others. Also list any speeches that you
have given on topics relevant to the position for which you have been
nominated. Do not attach copies of these publications unless otherwise
instructed.
Since entering the workforce in 1963, I have participated regularly
as a speaker in industry and other events relevant to my professional
career. Attachment 5 attached includes the speeches over the past ten
years that I have been able to identify from my records and electronic
searches, as well as books, articles, and other publications.
17. Please identify each instance in which you have testified
orally or in writing before Congress in a governmental or non-
governmental capacity and specify the date and subject matter of each
testimony.
------------------------------------------------------------------------
Date Committee Subject Matter
------------------------------------------------------------------------
January 30, 1990 House Committee on the Leveraged Buyouts and
Judiciary Bankruptcy
------------------------------------------------------------------------
February 29, 1006 House Committee on Reauthorization of
Transportation and Airport Improvement
Infrastructure Act
------------------------------------------------------------------------
March 10, 2004 House Committee on Small Spike in Metal
Business Prices: What Does it
Mean for Small
Manufacturers
------------------------------------------------------------------------
18. Given the current mission, major programs, and major
operational objectives of the department/agency to which you have been
nominated, what in your background or employment experience do you
believe affirmatively qualifies you for appointment to the position for
which you have been nominated, and why do you wish to serve in that
position?
Over the past 55 years, I have participated as an owner, lead
director, or chairman of over 100 different businesses, providing me
with a deep understanding of what makes a successful, job-creating
enterprise. I have experienced first-hand both the power of innovative
technologies to propel U.S. companies to be industry leaders, as well
as the job dislocation that can result from these advancing
technologies, especially for workers in manufacturing and natural
resource industries. I am fully familiar with the challenges of global
competition. I am particularly well-versed in the problems of
manufacturing industries that are confronting a quickly changing
competitive landscape--and with successful strategies for revitalizing
them. I am proud of my contributions to help rescue failing firms in
the automotive, steel, and textile industries.
I have broad international business experience, some of it quite
unusual and instructive. In addition to my involvement in the
purchasing of failed U.S. financial institutions from the Federal
Deposit Insurance Corporation, I have negotiated the acquisition of
troubled financial institutions with the governments of Japan, the
Republic of Korea, the United Kingdom, Ireland, Greece, and Cyprus.
Other experiences involving public/private partnerships include my
work as privatization advisor to New York Mayor Giuliani, and service
on the Board of the U.S.-Russia Investment Fund during the
administration of President Clinton.
The opportunity to serve as Secretary of Commerce would present a
welcome new challenge for me: How to apply the sum of my decades of
experience to spark innovation and to ensure effective implementation
of the Dcpm1ment's programs in support of the great task before us:
Creating strong economic growth, good jobs and, most importantly, a
shared belief that every American will have abundant opportunities to
achieve financial stability and personal happiness.
19. What do you believe are your responsibilities, if confirmed, to
ensure that the department/agency has proper management and accounting
controls, and what experience do you have in managing a large
organization?
Based on the Inspector General's report, the Department failed to
achieve targets for 5 of its 24 tasks, and in some cases this failure
has continued for multiple years. Correcting these shortfalls will be a
priority. Among many other critical tasks requiring dedicated
management attention will be the preparation for and implementation of
an efficient and accurate 2020 Census that utilizes sophisticated
technologies where possible; launching three more NOAA satellites; and
shortening the lead time and increasing the depth and breadth of
information generated by the Department's vast number of users. As
explained in my response to question 18, I believe that my management
experience gained over the past 55 years involving the most challenging
business matters will enable me to lead the Department effectively.
20. What do you believe to be the top three challenges facing the
department/agency, and why?
I believe that the top three challenges facing the Department are:
Increasing the Department's responsiveness to the needs of
the Committee and the user universe;
Expanding U.S. exports and reducing the U.S. trade deficit;
and
Integrating technology into the Department to improve
efficiency as well as the timelines, depth, and breadth of
data, while improving the protection of intellectual property
created in this country.
b. potential conflicts of interest
1. Describe all financial arrangements, deferred compensation
agreements, and other continuing dealings with business associates,
clients, or customers. Please include information related to retirement
accounts.
I have an Individual Retirement Account (IRA) and participate in a
40l(k) Plan. Please see also my response to Question E7.
2. Do you have any commitments or agreements, formal or informal,
to maintain employment, affiliation, or practice with any business,
association or other organization during your appointment? If so,
please explain.
No.
3. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated.
In connection with the nomination process, I am consulting with the
Office of Government Ethics and the Department of Commerce's designated
agency ethics official to identify any potential conflicts of interest,
including any potential conflicts that may arise in connection with my
retained investments. Any potential conflicts of interest will be
resolved in accordance with the terms of an ethics agreement into which
I will enter with the Department's designated agency ethics official
and will provide to this Committee. I am not aware of any potential
conflicts of interest other than those that will be the subject of my
ethics agreement.
4. Describe any business relationship, dealing, or financial
transaction which you have had during the last ten years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated.
In connection with the nomination process, I am consulting with the
Office of Government Ethics and the Department of Commerce's designated
agency ethics official to identify any potential conflicts of interest,
including any potential conflicts that may arise in connection with my
retained investments. Any potential conflicts of interest will be
resolved in accordance with the terms of an ethics agreement into which
I will enter with the Department's designated agency ethics official
and will provide to this Committee. I am not aware of any potential
conflicts of interest other than those that will be the subject of my
ethics agreement.
5. Describe any activity during the past ten years in which you
have been engaged for the purpose of directly or indirectly influencing
the passage, defeat, or modification of any legislation or affecting
the administration and execution of law or public policy.
I recall expressing support to Members of Congress and the
Administration for the Car Allowance Rebate System (CARS) program,
although I do not recall specific activities regarding that program. I
do not recall any other active support during the past to years for
other specific legislative or policy initiatives.
6. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items.
In connection with the nomination process, I am consulting with the
Office of Government Ethics and the Department of Commerce's designated
agency ethics official to identify any potential conflicts of interest,
including any potential conflicts that may arise in connection with my
retained investments. Any potential conflicts of interest will be
resolved in accordance with the terms of an ethics agreement into which
I will enter with the Department's designated agency ethics official
and will provide to this Committee. I am not aware of any potential
conflicts of interest other than those that will be the subject of my
ethics agreement.
c. legal matters
1. Have you ever been disciplined or cited for a breach of ethics,
professional misconduct, or retaliation by, or been the subject of a
complaint to, any court, administrative agency, the Office of Special
Counsel, professional association, disciplinary committee, or other
professional group? No.
2. Have you ever been investigated, arrested, charged, or held by
any Federal, State, or other law enforcement authority of any Federal,
State, county, or municipal entity, other than for a minor traffic
offense? If so, please explain.
Yes. In September 1991, I was stopped in Southampton, New York, for
a traffic violation, and subsequently charged with driving while
ability impaired by alcohol (DWAI). In November 1991, I paid a fine of
approximately $400, and my license was suspended for 90 days.
3. Have you or any business or nonprofit of which you are or were
an officer ever been involved as a pm1y in an administrative agency
proceeding, criminal proceeding, or civil litigation? If so, please
explain.
Yes, please see Attachment 6 attached. In addition, I have been
associated with a number of corporations and other entities and, from
time to time, such entities (including, in some instances, their
directors, officers and employees) in the ordinary course, have been
involved in judicial or regulatory proceedings relating to their
businesses.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? lf so, please explain.
Yes. Please see my answer to Question C.2, above.
5. Have you ever been accused, formally or informally, of sexual
harassment or discrimination on the basis of sex, race, religion, or
any other basis? If so, please explain. No.
6. Please advise the Committee of any additional information,
favorable or unfavorable, which you feel should be disclosed in
connection with your nomination.
None to my knowledge.
d. relationship with committee
1. Will you ensure that your department/agency complies with
deadlines for information set by congressional committees? Yes.
2. Will you ensure that your department/agency does whatever it can
to protect congressional witnesses and whistleblowers from reprisal for
their testimony and disclosures? Yes.
3. Will you cooperate in providing the Committee with requested
witnesses, including technical experts and career employees, with
firsthand knowledge of matters of interest to the Committee? Yes.
4. Are you willing to appear and testify before any duly
constituted committee of the Congress on such occasions as you may be
reasonably requested to do so? Yes.
______
Attachment One
Resume of Wilbur L. Ross, Jr.
Education
U.S. Army Adjutant General Corps, Fort Benjamin Harrison and Fort Dix
Served to First Lieutenant (1961-1963)
Harvard University
M.B.A., with Distinction (1961)
Yale University
A.B. (1959)
St. Francis Xavier High School, New York City. NY (1951-1955)
Public School #9, North Berger, NJ (1943-1951)
Employment
WL Ross & Co. LLC
Chairman & Chief Strategy Officer (2000-Present)
Rothschild Inc. and its predecessor, New Court Securities Corp.
Executive Managing Director (1976-2000)
Faulkner Dawkins & Sullivan Securities Corp.
President (1964-1976)
Winthrop de Vegh Management Company--Research Analyst
Wood Struthers & Winthrop--Research Analyst
De Vegh International Corp.--Vice President (1964-1966)
Selected Present & Past Boards of Directors
ArcelorMittal
Nexeo Solutions (Chairman)
International Textile Group (Chairman)
International Steel Group (Chairman)
International Auto Components (Chairman)
Navigator Holding (Chairman)
Diamond S. Shipping (Chairman)
Bank of Cyprus (Vice-Chairman)
Bank United
Revere Copper and Brass
Allis-Chalmers Corp.
Air Lease
Greenbrier
Bank of Ireland
Biocraft Labs. Inc.
Fur Vault Inc.
RH Cement
Fresca Credit Land Co.
Clarent Hospital Corp. (Chairman)
Selected Present & Past Public Service & Non-Profit
Mayor Rudy Giuliani (Privatization Advisor)
U.S. Russia Investment Fund (Board Member)
Smithsonian Institution National Board (Chairman)
National Museum of American Art (Chairman)
Activities
New York Historical Society (Chairman)
National Academy of Design (Chairman)
Brooklyn Museum (Vice Chairman)
Yale School of Management (Advisory Board Member)
Yale Beijing Center (Advisory Board Member)
Japan Society (Chairman)
Economic Studies Council Brookings Institute (Chairman)
Whitney Museum of American Art Institution (Trustee)
Brookings Institution (Trustee)
Yale University Council Committee on the Yale (Chairman)
The New Museum, New York City (Trustee)
Sarah Lawrence College (Trustee)
Smithsonian Bi-Centennial Celebration (National Chairman)
Honors
Fifty Most Influential People in Global Finance, Bloomberg
(2015)
Elected to Private Equity Hall of Fame
Elected to Turnaround Management Association Hall of Fame
(2013)
Awarded medals by the governments of the Republic of Korea
and Japan
Awarded Businessman of the Year by Florida Trend
Chairman of Marquis Who's Who
______
Attachment Two
11. List all positions held as an officer, director, trustee,
partner, proprietor, agent, representative, or consultant of any
corporation, company, firm, partnership, or other business, enterprise,
educational, or other institution within the last ten years.
------------------------------------------------------------------------
Organization Position
------------------------------------------------------------------------
Absolute Recovery Capital Partners, LLC Managing Member
------------------------------------------------------------------------
Absolute Recovery Hedge Fund, Ltd.; Director
Absolute Recovery Master Fund Ltd.
------------------------------------------------------------------------
Air Lease Corp Director
------------------------------------------------------------------------
ArcelorMittal Director
------------------------------------------------------------------------
Assured Guaranty Director
------------------------------------------------------------------------
Bank of Cyprus Director/Vice Chairman
------------------------------------------------------------------------
BankUnited FSB; Bank United, Inc. Director
------------------------------------------------------------------------
Blue Ocean Re Holdings Ltd. Director
------------------------------------------------------------------------
Brookings Economic Studies Council Director, Chairman
------------------------------------------------------------------------
Brookings Institution Trustee
------------------------------------------------------------------------
Clarent Hospital Corporation Director
------------------------------------------------------------------------
The Committee on Capital Market Regulation Director
Inc.
------------------------------------------------------------------------
Compagnie Europeenne de Wagons S.a.r.l. Chairman
------------------------------------------------------------------------
Diamond S Shipping Group, Inc. Non-Executive Chairman
------------------------------------------------------------------------
Diamond S Shipping LLC Chairman
------------------------------------------------------------------------
DSS Holdings LP Director/Chairman
------------------------------------------------------------------------
El Vedado LLC Managing Member
------------------------------------------------------------------------
Exco Resources Independent Director
------------------------------------------------------------------------
First Michigan Bank/Talmer Bancorp Director
------------------------------------------------------------------------
Governor and Company of the Bank of Ireland Director
------------------------------------------------------------------------
Greenbrier Companies, Inc. Director
------------------------------------------------------------------------
Halla Cement Director
------------------------------------------------------------------------
Homeward Residential, Inc. (f/k/a American Chairman/President
Home Mortgage Servicing, Inc. and AH
Mortgage Acquisition Co. Inc.)
------------------------------------------------------------------------
Huaneng Invesco WLR Investment Consulting Director
Company Ltd.
------------------------------------------------------------------------
IAC Asia Holdings, Inc; IACNA Director
International, Inc.; IACNA Korea, Inc.;
IAC Mexico Holdings, Inc.; IAC
Spartanburg, Inc.; IAC U.S. Holdings, Inc.
------------------------------------------------------------------------
India Asset Recovery Management Limited Director
------------------------------------------------------------------------
Insuratex, Ltd. Chairman
------------------------------------------------------------------------
International Automotive Components Group, Non-Executive Chairman
S.A.
------------------------------------------------------------------------
International Automotive Group GmbH Chairman and Director
------------------------------------------------------------------------
International Automotive Group Japan, LLC Director/Chairman
------------------------------------------------------------------------
International Automotive Group North Chairman and Director
America (Inc., LLC, and Holdings, Inc.)
------------------------------------------------------------------------
International Coal Group, Inc. Non-Executive Chairman
------------------------------------------------------------------------
International Textile Group Non-Executive Chairman
------------------------------------------------------------------------
Invesco, Ltd. and its affiliates Chairman/Chief Strategy
Officer
------------------------------------------------------------------------
Invesco Private Capital, Inc. Director
------------------------------------------------------------------------
Invesco Private Capital Investments, Inc. Director
------------------------------------------------------------------------
Invesco WLR Limited Director
------------------------------------------------------------------------
INVESCO WLR Private Equity Investment Director
Management Ltd.
------------------------------------------------------------------------
Kansai Sawayaka Bank (Nippon Partners) Director
------------------------------------------------------------------------
Montpelier Re Holdings Ltd. Director
------------------------------------------------------------------------
Nano-Tex, Inc. Chairman
------------------------------------------------------------------------
Navigator Holdings Ltd. Director/Chairman
------------------------------------------------------------------------
NBNK Investments PLC Director/Chairman
------------------------------------------------------------------------
Nikko Electric Industry Co. Ltd. Director
------------------------------------------------------------------------
Nexeo Solutions (f/k/a WL Ross Holding Chairman/Director
Corp.)
------------------------------------------------------------------------
OCM, Ltd. Director
------------------------------------------------------------------------
Ocwen Financial Corp. Director
------------------------------------------------------------------------
Ohizumi Manufacturing Director
------------------------------------------------------------------------
Palm Beach Retirement System Co-Chairman/Trustee
------------------------------------------------------------------------
Panther Re Holdings Ltd. Director/Deputy
Chairman
------------------------------------------------------------------------
PB Materials Holdings, Inc. Director
------------------------------------------------------------------------
Phoenix International Holding Co. Director
------------------------------------------------------------------------
PLASCAR and its holding company Director
------------------------------------------------------------------------
Pan Ross LP Managing Member
------------------------------------------------------------------------
Ross Expansion FLP, LP General Partner
------------------------------------------------------------------------
Ross Expansion GP LLC Managing Member
------------------------------------------------------------------------
Spice Jet, Ltd. Director
------------------------------------------------------------------------
Sun BanCorp Director
------------------------------------------------------------------------
Sun National Bank Director
------------------------------------------------------------------------
Syms Corp. Director
------------------------------------------------------------------------
Tong Yang Life Director
------------------------------------------------------------------------
Wagon PLC Non-Executive Director
------------------------------------------------------------------------
W.L. Ross & Co., LLC Chairman/CEO
------------------------------------------------------------------------
WL Ross & Co. (India) LLC Director
------------------------------------------------------------------------
WLR Cardinal Mezzanine Fund L.P. Director
------------------------------------------------------------------------
WLR China Energy Associates, Ltd. Director
------------------------------------------------------------------------
WLR/GS (India) Limited Director
------------------------------------------------------------------------
WLR Master Co-Investment SLP GP, Ltd. Director/Chairman
------------------------------------------------------------------------
1116 South Main Street, LLC Managing Member
------------------------------------------------------------------------
781 Fifth Ave. LLC Managing Member
------------------------------------------------------------------------
______
Attachment Three
12. Please list each membership you have had during the past ten
years or currently held with any civic, social, charitable,
educational, political, professional, fraternal, benevolent or
religious organization, private club, or other membership organization.
Include dates of membership and any positions you have held with any
organization. Please note whether any such club or organization
restricts membership on the basis of sex, race, color, religion,
national origin, age, or handicap.
------------------------------------------------------------------------
Organization Position Dates
------------------------------------------------------------------------
American Friends of the President 2014 to Present
Rene Magritte Museum
------------------------------------------------------------------------
The Beach Club Member 2004 to Present
------------------------------------------------------------------------
Blenheim Foundation USA Trustee 2008 to Present
------------------------------------------------------------------------
Briarcliff Condominium Director 2007 to Present
Apartment Building
------------------------------------------------------------------------
British American Business, Director 2010 to Present
Inc.
------------------------------------------------------------------------
Brookings Economic Studies Director, Chairman 2012 to Present
Council
------------------------------------------------------------------------
Brookings Institution Trustee 2013 to Present
------------------------------------------------------------------------
Business Roundtable Member 2003-2014
------------------------------------------------------------------------
Century Association Member 1987-2010
------------------------------------------------------------------------
Club Collette (Palm Beach, Member 2005 to Present
FL)
------------------------------------------------------------------------
Coconuts Member 2005 to Present
------------------------------------------------------------------------
Financial Analysts Chartered Financial >50 years ago to
Federation, Chartered Analyst Present
------------------------------------------------------------------------
Harry's Bar Member 2005 to Present
------------------------------------------------------------------------
Harvard Business School Director 2011 to Prescnt
Club of New York, Inc.
------------------------------------------------------------------------
Harvard Business School Director 2012-2015
Dean's Advisory Board
------------------------------------------------------------------------
Harvard Club of the Palm Member 2015 to Present
Beaches
------------------------------------------------------------------------
Harvard University-- Member 2010 to Prcsent
Committee on University
Resources
------------------------------------------------------------------------
The Japan Society, Inc. Director. Chairman 2005 to Present
------------------------------------------------------------------------
Kappa Beta Phi Member. Various 2006 to Present
Positions
------------------------------------------------------------------------
Mark's Club Member 2005 to Present
------------------------------------------------------------------------
Mory's Association Member 2011 to Prcsent
------------------------------------------------------------------------
Musee des Arts Decoratifs International Council 2014 to Present
Member
------------------------------------------------------------------------
New York Society of Member >35 years ago to
Security Analysts Present
------------------------------------------------------------------------
Palm Beach Civic Executive Committee 2006 to Present
Association Member
------------------------------------------------------------------------
Palm Beach Preservation Trustee 2010 to Present
Foundation
------------------------------------------------------------------------
Palm Beach Fire Fighters Trustee 2008-2012
Retirement Fund
------------------------------------------------------------------------
Partnership for New York Executive Committee 2010 to Present
City Member
------------------------------------------------------------------------
The River Club Member 2016 to Present
------------------------------------------------------------------------
Southampton Bath and Tennis Chairman 2002 to Present
Club
------------------------------------------------------------------------
U.S.-India Business Council Member, Chairman's 2006-2013
Circle
------------------------------------------------------------------------
Whitney Museum of American Trustee 2006-2010
Art
------------------------------------------------------------------------
Yale Club of the Palm Member 2015 to Present
Beaches
------------------------------------------------------------------------
Yale University School of Member 2010 to Present
Management--Board of
Advisors
------------------------------------------------------------------------
5 Hertford Street Member 2013 to Present
------------------------------------------------------------------------
______
Attachment Four
14. Itemize all political contributions to any individual, campaign
organization, political party, political action committee, or similar
entity of $500 or more for the past ten years. Also list all offices
you have held with, and services rendered to, a state or national
political party or election committee during the same period.
My political contributions over the past ten years are listed in
the chart below. A separate chart, itemizing the ultimate recipients of
the joint contributions listed below, immediately follows.
------------------------------------------------------------------------
Date Recipient Amount Notes
------------------------------------------------------------------------
1/26/2007 John S. McCain (John $4,200.00
McCain 2008, Inc.)
------------------------------------------------------------------------
3/19/2007 Rudolph W. Giuliani $2,300.00
(Rudy Giuliani
Presidential Committee,
Inc.)
------------------------------------------------------------------------
3/19/2007 Rudolph W. Giuliani $2,300.00
(Rudy Giuliani
Presidential Committee,
Inc.)
------------------------------------------------------------------------
3/23/2007 John S. McCain (John -$1,900.00
McCain 2008, Inc.)
------------------------------------------------------------------------
2/22/2008 Rudolph W. Giuliani -$2,300.00
(Rudy Giuliani
Presidential Committee,
Inc.)
------------------------------------------------------------------------
5/6/2008 Invesco PLC PAC $750.00
------------------------------------------------------------------------
7/30/2009 Invesco PLC PAC $750.00
------------------------------------------------------------------------
3/26/2010 Marco Rubio (Marco Rubio $4,800.00
For President)
------------------------------------------------------------------------
3/29/2010 Bill Nelson (Bill Nelson $2,400.00
For U.S. Senate)
------------------------------------------------------------------------
3/29/2010 Bill Nelson (Bill Nelson $2,400.00
For U.S. Senate)
------------------------------------------------------------------------
3/31/2010 Marco Rubio (Marco Rubio -$2,400.00
For President)
------------------------------------------------------------------------
3/31/2010 Marco Rubio (Marco Rubio $2,400.00
For President)
------------------------------------------------------------------------
4/20/2010 Invesco PLC PAC $1,000.00
------------------------------------------------------------------------
5/12/2010 Investment Company $1,000.00
Institute Political
Action Committee
------------------------------------------------------------------------
3/26/2011 Mr. Ed Royce (Royce $2,500.00
Campaign Committee)
------------------------------------------------------------------------
5/10/2011 Mr. Allen B. West (Deep $2,500.00
Strike PAC)
------------------------------------------------------------------------
5/10/2011 Mr. Allen B. West (Deep $2,500.00
Strike PAC)
------------------------------------------------------------------------
5/27/2011 Boehner for Speaker $25,000.00 See Receipts for
(FOJB-NRCC) Joint
Contributions
Chart
------------------------------------------------------------------------
9/16/2011 National Republican $5,784.89
Congressional Committee
------------------------------------------------------------------------
1/18/2012 Mitt Romney/Paul D. Ryan $2,500.00
(Romney For President,
Inc.)
------------------------------------------------------------------------
3/9/2012 Debbie Stabenow $2,500.00
(Stabenow For U.S.
Senate)
------------------------------------------------------------------------
3/9/2012 Debbie Stabenow $2,500.00
(Stabenow For U.S.
Senate)
------------------------------------------------------------------------
4/2/2012 Invesco PLC PAC $1,000.00
------------------------------------------------------------------------
4/3/2012 Restore Our Future, Inc. $100,000.00
------------------------------------------------------------------------
4/4/2012 Eric Cantor (Cantor for $2,500.00
Congress)
------------------------------------------------------------------------
4/4/2012 Eric Cantor (Cantor for $2,500.00
Congress)
------------------------------------------------------------------------
4/23/2012 Romney Victory, Inc. $50,000.00 See Receipts for
Joint
Contributions
Chart
------------------------------------------------------------------------
5/15/2012 Romney Victory, Inc. $75,800.00 See Receipts for
Joint
Contributions
Chart
------------------------------------------------------------------------
5/21/2012 Romney Victory, Inc. -$35,800.00
------------------------------------------------------------------------
10/31/2012 Romney Victory, Inc. -$16,700.00
------------------------------------------------------------------------
3/8/2013 Rubio Victory Committee $10,000.00 See Receipts for
Joint
Contributions
Chart
------------------------------------------------------------------------
4/23/2013 McConnell Victory $15,000.00 See Receipts for
Kentucky Joint
Contributions
Chart
------------------------------------------------------------------------
5/1/2013 Boehner for Speaker $25,000.00 See Receipts for
Joint
Contributions
Chart
------------------------------------------------------------------------
6/6/2013 McConnell Cornyn $5,000.00 See Receipts for
Leadership Victory Joint
Committee Contributions
Chart
------------------------------------------------------------------------
12/3/2013 Elizabeth (Liz) Cheney $2,000.00
(Cheney For Wyoming)
------------------------------------------------------------------------
12/18/2013 National Republic $32,400.00
Senatorial Committee
------------------------------------------------------------------------
3/18/2014 Reclaim America (Marco $5,000.00
Rubio Victory
Committee)
------------------------------------------------------------------------
5/13/2014 Paul Ryan $5,000.00
------------------------------------------------------------------------
6/30/2014 Congressman John Conyers $1,000.00
------------------------------------------------------------------------
7/28/2014 Republican Governors $150,000.00
Association RGA (Aug.
17th Event)
------------------------------------------------------------------------
8/21/2014 American Opportunity $50,000.00
Alliance
------------------------------------------------------------------------
10/16/2014 Kentuckians for Strong $10,000.00
Leadership
(replacing his McConnell
Victory Kentucky
contribution)
------------------------------------------------------------------------
10/23/2014 Arkansas Victory Fund $2,600.00 See Receipts for
Joint
Contributions
Chart
------------------------------------------------------------------------
11/24/2014 Senate Battleground Fund $50,000.00 See Receipts for
Joint
Contributions
Chart
------------------------------------------------------------------------
12/1/2014 National Republican $23,700.00
Senatorial Committee
------------------------------------------------------------------------
12/15/2014 Republican National $23,700.00
Committee
------------------------------------------------------------------------
1/23/2015 Congressman Ed Royce $5,000.00
(event)
------------------------------------------------------------------------
2/19/1015 Boehner for Speaker $5,000.00
(event)
------------------------------------------------------------------------
2/27/2015 Blunt Toomey Joint $2,500.00
Committee: Friends of
Pat Toomey
------------------------------------------------------------------------
2/27/2015 Blunt Toomey Joint $2,500.00
Committee: Friends of
Roy Blunt
------------------------------------------------------------------------
3/25/2015 Reclaim America PAC $5,000.00 See Receipts for
Joint
Contributions
Chart
------------------------------------------------------------------------
3/25/2015 Rubio Victory Committee $400.00
(Marco Rubio)
------------------------------------------------------------------------
3/31/2015 Rubio Victory Committee $10,000.00 See Receipts for
Joint
Contributions
Chart
------------------------------------------------------------------------
4/13/2015 Boehner for Speaker $10,000.00 See Receipts for
Joint
Contributions
Chart
------------------------------------------------------------------------
4/27/2015 Republican Governors $250,000.00
Association
------------------------------------------------------------------------
5/21/2015 Republican National $33,200.00
Committee
------------------------------------------------------------------------
5/21/2015 Republican National $33,400.00
Committee
------------------------------------------------------------------------
6/5/2015 Boehner for Speaker, $10,000.00
National
Republican Congressional
Committee, Freedom
Project
------------------------------------------------------------------------
6/12/2015 Marco Rubio (Marco Rubio -$2,700.00
For
President)
------------------------------------------------------------------------
6/18/2015 Friends of John McCain $5,400.00
------------------------------------------------------------------------
6/30/2015 Rubio Victory Committee -$4,600.00
------------------------------------------------------------------------
7/13/2015 Boehner for Speaker $20,000.00 See Receipts for
Joint
Contributions
Chart
------------------------------------------------------------------------
7/31/2015 Boehner for Speaker $5,000.00
------------------------------------------------------------------------
8/21/2015 Republican National $500.00
Committee
------------------------------------------------------------------------
8/28/2015 Republican National $100,000.00
Committee
------------------------------------------------------------------------
9/1/2015 Republican National $50,000.00
Committee
------------------------------------------------------------------------
9/14/2015 John S. McCain (Friends $2,700.00
Of John McCain, Inc.)
------------------------------------------------------------------------
11/10/2015 Friends of Jeb $1,000.00
Hensarling
------------------------------------------------------------------------
11/16/2015 John A. Boehner (Friends -$2,700.00
of John Boehner)
------------------------------------------------------------------------
1/15/2016 Team Ryan (Speaker Paul $125,000.00
Ryan) (hosted event)
------------------------------------------------------------------------
3/21/2016 Congressman Joe Heck $5,400.00
------------------------------------------------------------------------
3/21/2016 Republican National $50,000.00
Committee
------------------------------------------------------------------------
6/24/2016 Donald J. Trump for $5,400.00
President, Inc.
------------------------------------------------------------------------
6/24/2016 Republican National $33,400.00
Committee
------------------------------------------------------------------------
7/8/2016 Marco Rubio For Senate $5,400.00
------------------------------------------------------------------------
7/18/2016 Trump Victory $200,000.00 See Receipts for
Joint
Contributions
Chart
------------------------------------------------------------------------
9/30/2016 Marco Rubio For U.S. $2,700.00
Senate 2016
------------------------------------------------------------------------
Receipts for Joint Contributions
------------------------------------------------------------------------
Amount of
Date Recinient Contribution
------------------------------------------------------------------------
5/31/2011 National Republican Congressional $20,000.00
Committee
------------------------------------------------------------------------
6/9/2011 John A. Boehner (Friends Of John $2,500.00
Boehner)
------------------------------------------------------------------------
6/9/2011 John A. Boehner (Friends Of John $2,500.00
Boehner)
------------------------------------------------------------------------
4/23/2012 Republican National Committee $30,800.00
------------------------------------------------------------------------
4/23/2012 Mitt Romney/Paul D. Ryan (Romney 52,500.00
for President, Inc.)
------------------------------------------------------------------------
7/31/2012 Idaho Republican Party $4,175.00
------------------------------------------------------------------------
7/31/2012 Massachusetts Republican Party $4,175.00
------------------------------------------------------------------------
7/31/2012 Oklahoma Leadership Council $4,175.00
------------------------------------------------------------------------
7/31/2012 Vermont Republican Federal $4,175.00
Elections Committee
------------------------------------------------------------------------
9/4/2012 National Republican Congressional $20,000.00
Committee
------------------------------------------------------------------------
11/2/2012 National Republican Senatorial -$8,350.00
Committee
------------------------------------------------------------------------
11/2/2012 National Republican Congressional -$8,350.00
Committee
------------------------------------------------------------------------
3/8/2013 Marco Rubio (Marco Rubio For $2,400.00
President)
------------------------------------------------------------------------
3/8/2013 Marco Rubio (Marco Rubio For $2,600.00
President)
------------------------------------------------------------------------
3/31/2013 Reclaim America PAC $5,000.00
------------------------------------------------------------------------
5/31/2013 John A. Boehner (Friends Of John $2,600.00
Boehner)
------------------------------------------------------------------------
5/31/2013 John A. Boehner (Friends Of John $2,600.00
Boehner)
------------------------------------------------------------------------
5/31/2013 National Republican Congressional $19,800.00
Committee
------------------------------------------------------------------------
6/6/2013 John Cornyn (Texans For Senator $2,500.00
John Cornyn, Inc.)
------------------------------------------------------------------------
6/30/2013 Republican Party of Kentucky $9,800.00
------------------------------------------------------------------------
6/30/2013 Mitch McConnell (McConnell Senate $2,600.00
Committee)
------------------------------------------------------------------------
6/30/2013 Mitch McConnell (McConnell Senate $2,600.00
Committee)
------------------------------------------------------------------------
12/1/2014 National Republican Senatorial $23,700.00
Committee
------------------------------------------------------------------------
12/6/2014 William M. Cassidy (Bill Cassidy $2,600.00
For U.S. Senate)
------------------------------------------------------------------------
12/15/2014 Republican National Committee $23,700.00
------------------------------------------------------------------------
3/31/2015 Marco Rubio (Marco Rubio For $300.00
President)
------------------------------------------------------------------------
3/31/2015 Reclaim America PAC $5,000.00
------------------------------------------------------------------------
4/13/2015 John A. Boehner (Friends Of John $2,700.00
Boehner)
------------------------------------------------------------------------
4/13/2015 John A. Boehner (Friends Of John $2,700.00
Boehner)
------------------------------------------------------------------------
4/13/2015 National Republican Congressional $4,600.00
Committee
------------------------------------------------------------------------
7/13/2015 National Republican Congressional $20,000.00
Committee
------------------------------------------------------------------------
7/18/2016 Republican Party of Arkansas $5,545.45
------------------------------------------------------------------------
7/18/2016 Republican Party of Louisiana $5,545.45
------------------------------------------------------------------------
7/18/2016 Donald J. Trump/Michael R. Pence $2,700.00
(Donald J. Trump For President,
Inc.)
------------------------------------------------------------------------
7/18/2016 Donald J. Trump/Michael R. Pence $2,700.00
(Donald J. Trump For President,
Inc.)
------------------------------------------------------------------------
7/18/2016 Mississippi Republican Party $5,545.46
------------------------------------------------------------------------
7/18/2016 West Virginia Republican Party $5,545.45
------------------------------------------------------------------------
7/18/2016 Republican Party of Virginia, $5,545.45
Inc.
------------------------------------------------------------------------
7/18/2016 Republican National Committee $33,400.00
------------------------------------------------------------------------
9/27/2016 South Carolina Republican Party $5,545.45
------------------------------------------------------------------------
9/30/2016 Tennessee Republican Party $5,545.45
Federal Election Account
------------------------------------------------------------------------
9/30/2016 New Jersey Republican State $5,545.45
Committee
------------------------------------------------------------------------
9/30/2016 Connecticut Republican Pm1y $5,545.45
------------------------------------------------------------------------
______
Attachment Five
16. Please list each book, article, column, or publication you have
authored, individually or with others. Also list any speeches that you
have given on topics relevant to the position for which you have been
nominated. Do not attach copies of these publications unless otherwise
instructed.
Speeches
1. CalPERS Speech, January 10, 2006
2. Detroit Auto Show, January 11, 2006
3. Keynote Address: 6th CoalTrans Americas Conference, January 31,
2006: ``Investment and Growth in Basic Industries: The Case of Coal''
4. Japan Investor Conference, March 3, 2006: ``Changing Political
and C01porate Governance Landscape in Japan''
5. Taiyo CalPERS Conference, March 3, 2006
6. Hong Kong Convention & Exhibition Centre, March 28, 2006:
``PRIME SOURCE, The Networking Event for the International Apparel
Industry''
7. Federal Reserve Bank of Chicago, Detroit Branch, April 18, 2006:
``Prospects for Automotive Suppliers''
8. AlixPartners Conference, Key Biscayne, Florida, April 28, 2006:
``The Restructuring of American Basic Industries''
9. Siguler Guff Annual Meeting, New York, New York, May 10, 2006:
``What Does It Take for Some U.S. Industries to Survive?''
10. Third Annual Conference on Distressed Investing--Europe, May
18-19,2006: ``Strategies for Restructuring Legacy Industries''
11. Organization of Women in International Trade, June 7, 2006:
``The Restructuring of American Basic Industries''
12. JP Morgan Auto Conference, August 8, 2006: ``Perspectives on
the Automotive Supply Sector''
13. OESA Conference Rationalizing the Auto Supplier Industry:
Carving Out Profit from M&A Activity Detroit Marriott Pontiac at
Centerpoint, Pontiac, Michigan, August 23, 2006: ``Realizing Profit
From Consolidation: Assembling A Global Interior Supplier''
14. Original Equipment Suppliers Association Conference, Detroit
Marriott Pontiac at Centerpoint, Pontiac, MI, August 23, 2006:
``Rationalizing the Auto Supplier Industry''
15. Credit Suisse Automotive Conference, September 7, 2006:
``Rationalizing the Auto Supplier Industry''
16. NanoCon International--Mandalay Bay, Las Vegas, Nevada,
September 20, 2006: ``Nanotechnology--Impacting Change Today''
17. SAE Global Leadership Conference, The Greenbrier, West
Virginia, October 13, 2006: ``Thoughts About the U.S. Auto Supply
Industry''
18. 20th Anniversary Dinner of the Program on International
Financial Systems, October 19, 2006: ''Keynote Presentation''
19. Amvescap Investors Forum, November 30, 2006
20. GAIM USA 2007, January 24, 2007: ``Thoughts on Distressed
Investing Today''
21. 2007 Turnaround Management & Distressed Investing Forum,
February 6-7, 2007: ``Thoughts on Private Equity Distressed Investing
Today''
22. AIM Analyst Symposium, March 6, 2007: ``Are We Distressed
Yet?''
23. Taiyo Pacific Partners 2nd Annual Investor Conference, March
29, 2007: ``Welcoming Remarks''
24. Textile and Apparel Products from Vietnam, Import Monitoring
Program, Public Hearing, April 24, 2007: ``Prepared Testimony''
25. Blue Cloud Award from the China Institute: June 11, 2007
26. INVESCO Private Capital--Private Equity Educational Summit, New
York, NY, June 12, 2007: ''Value Creation Through Distressed
Investing''
27. 2007 Japan-U.S. Symposium, Harvard Law School, September 15,
2007: Topic 3: Retrospective Views on 10 Years of the Symposium and of
a Financial Reform in the Japan and the U.S.
28. Financial Services MandA Keynote, September 25, 2007: ''Recent
tightening of credit markets has caused investors to wonder if this is.
. .''
29. The Fall Investment Management Forum for Endowments &
Foundations, September 25, 2007: ``The Future of the Credit Markets''
30. INVESCO Board of Directors Meeting, October 9, 2007: ``Are We
Distressed Yet?''
31. CoalTech Asia, December 3-4, 2007: ``Overcoming Challenge to
the Growth of Coal''
32. 2008 Automotive News World Congress, January 22, 2008
33. Automotive News Speech, January 2008
34. AIM Analyst Symposium, March 5, 2008: ``Are We Distressed
Yet?''
35. KPMG and Partnership for New York City, March 13, 2008: ``India
in the 21st Century''
36. FINAL CNBC, March 31, 2008: ``How We Operate''
37. North Carolina Investment Forum, March 31, 2008: ``Distressed
Opportunities in the Financial Services Sector''
38. Asian Venture Capital Journal, Middle East 2008: P1ivate Equity
& Venture Forum, Emirates Palace, Abu Dhabi, April 21, 2008: ``The
Financial Crisis in the U.S.''
39. DuPont, April24, 2008: ``The Financial Crisis in the U.S.''
40. Long Island Chapter of Turnaround Management Association, April
24, 2008: ``The Financial Crisis in the U.S.''
41. GPL U.S. Financial Crisis, April 25, 2008
42. Florida Atlantic University/Harry & Anna Trust, Video
Conference, April 25, 2008: ``The Financial Crisis in the U.S.''
43. Siguler Guff Annual Meeting, May 6, 2008: ''The Financial
Crisis in the U.S.''
44. ABI Sub-Prime Panel, May 12, 2008: ``Potential Topics''
45. California Bankruptcy Forum Annual Conference, May 16, 2008:
``The Financial Crisis in the U.S.''
46. FRB Story AIM Trimark, California Bankruptcy Forum Annual
Conference, May 28, 2008: ``The Financial Crisis in the U.S.''
47. Wards 2008 Auto Interiors Show, June 5, 2008: ``The Outlook for
Auto Suppliers''
48. Invesco Perpetual's Investment Summit, Henley-on-Thames, UK,
July 10, 2008: ``The Implications & Opportunities of Major Economic
Problems''
49. August 20, 2008: ``Institutional Sales''
50. The United States Bankruptcy Court for the District of
Delaware, September 11, 2008: ``Delaware Bankruptcy)''
51. Huaneng Signing Ceremony, September 16, 2008: ``Remarks''
52. Invesco Investors' Forum 2008, Tokyo, September 18, 2008
53. Institutional Investor 5th Annual India Forum, New York,
September 23, 2008
54. September 2008: ``CIO Statement''
55. The Post, September 25, 2008
56. Invesco Global Headquarters, October 2, 2008: ``The Outlook for
the Economy Post the TARP Bill Failure''
57. Minister of Coal, Government of India, October 9, 2008: ``His
Excellency Santosh Bagrodia''
58. October 12, 2008: ``James Doan''
59. Invesco Private Capital Annual Partners Meeting, October 23,
2008
60. November 19, 2008: ``Malcolm Gladwell Intro''
61. 2008: ``Mike Gibbons''
62. Museum of American Finance, January 21, 2009: ``President
Obama's Economic Programs''
63. Tuck School of Business at Dartmouth, February 6, 2009:
``Private Equity''
64. Taiyo's 4th Annual Investors Conference, February 25, 2009:
``Speech''
65. 2009 Wharton Restructuring Conference, February 27, 2009
66. M&A Advisor Lifetime Achievement Award Ceremony, March 16,
2009: ``2009 M&A Advisor Lifetime Achievement Award Ceremony''
67. Securities Conference, March 19, 2009: ``SIFMA Insurance &
Risk-Linked''
68. PLATTS Coal Conference videotaped, March 20, 2009
69. Skadden Arps Restructuring Group, Apri1 21, 2009: ``'Distressed
Investments & Turnarounds in the Current Economic Environment''
70. Housing Policy Council, May 6, 2009: ``Keynote Address''
71. Sixth Annual Distressed Investing Europe Conference, May 7,
2009: ``What Have We Learned from this Crisis About Distressed
Investing?''
72. International Bar Association 15th Annual Global, May 18, 2009:
``lnsolvencv & Restructuring Conference--Cash of the Titans Keynote
Speech''
73. 14th Annual NEPC Client Conference, May 20, 2009:''Where Do We
Go From Here?''
74. International Insolvency Institute, June 1, 2009: ``Keynote
Address''
75. The Coller Institute of Private Equity, June 4, 2009
76. Allen & Co. LLC Sun Valley Conference, July 8, 2009: ``'The
State of Finance''
77. AIM Investment Symposium, June 24, 2009
78. Auto Conference Frankfurt Germany, September 17, 2009: ``New
Directions for Auto Suppliers: A Radical Industry Reconfiguration?''
79. Invesco AIM Focus 2009 Investment Symposium, September 24,
2009: ``Keynote Address''
80. International Insolvency Institute 9th Annual Conference--New
York, October 22, 2009: ``Keynote Address''
81. 15th Annual ABS East Conference, October 27, 2009
82. Goldman Sachs Alternative Investments Conference, October 29,
2009
83. BAB Awards Dinner, November 3, 2009
84. State Administration of Foreign Exchange 2010 Perspective,
Hainan Island China, November 13, 2009: ''Distressed Environment Today,
Opportunities & Pitfalls''
85. November 17, 2009 ``Welcome Address''
86. WL Ross & Co. Limited Partners' Meeting, November 17, 2009
87. State of South Carolina Retirement System Investment Commission
Investment Retreat, November 18, 2009
88. Town of Palm Beach United Way Business and Professional
Breakfast, December 10, 2009
89. Norton Annual Review of International Insolvency, December 15,
2009: ``Keynote Address''
90. Temasek Annual Offsite Speech, January 7, 2010
91. Detroit Auto Show, January 13, 2010: ``2010 Automotive News
World Congress''
92. 1st Annual Private Equity Symposium, January 21, 2010: ``The
New Private Equity Paradigm''
93. Bank of America Merrill Lynch Auto Conference Speech, March 26,
2010
94. Bank of America Merrill Lynch's Inaugural New York Automotive
Summit, March 31, 2010
95. Australian Investor Conference, April 12, 2010
96. Investor Conference 2010, Taiyo Pacific Partners LP, April 14,
2010: ''Sovereign Debt Considerations for Investors in Japanese
Equities''
97. Reference: Greece, May 10, 2010
98. May 11, 2010: ``The Crisis Two Years Later: Opportunities in
the Distressed & Where We Go From Here''
99. HBS Honor, May 17, 2010
100. Siguler Guff Annual Meeting, May 20, 2010
101. Japan Society Annual Dinner, May 24, 2010
102. Invesco Investment Symposium, May 26, 2010
103. Invesco Investment Forum, June 8, 2010: ``The Latest Crisis''
104. July 21, 2010: ``WL Ross & Co. and Invesco Private Capital
Presentation to the Invesco Ltd. Board of Directors''
105. PFNYC Geithner Meeting, August 2, 2010
106. KBW Insurance Conference, September 7, 2010: ``Thoughts About
the Mortgage Crisis''
107. INVESCO Board Meeting, October 11, 2010
108. Japan Society Board of Directors Dinner, October 20, 2010:
``Remarks''
109. Bank of America/Merrill Lynch 4th Annual Private Company
Conference, October 28, 2010: ``What's Next''?
110. The Chinese Finance Association Conference, October 30, 2010:
``Global Recovery and Financial Structural Changes after Crisis:
Opportunities and Challenges for China''
111. Invesco Real Estate Conference, November 3, 2010: ``Distressed
Investment Opportunities''
112. 9th Annual M&A Advisor Awards & Summit, December 14, 2010:
``Keynote & Roundtable''
113. National Retirement Fund Investment Committee, December 14,
2010
114. Automotive News World Congress, January 11, 2011: ''National/
Industrial Manufacturing Policy: Do we need one? How do we create and/
or save jobs?''
115. 2011 Leadership in the Distressed Markets Argyle Executive
Forum, January 13, 2011: ``Where Are the Distressed Investment
Opportunities?''
116. Japan Society, January 19, 2011: ''What's Next for the Global
Economies?''
117. Tiger 21 Annual Conference, January 27, 2011: ``Where Are the
Distressed Investment Opportunities?''
118. BankUnited Closing Dinner, February 10, 2011: ``A Rhyming
Thank You For BKU'
119. Atlantic Trust Client Conference, February 11, 2011: ``Where
Are the Distressed Investment Opportunities?''
120. February 16, 2011: ``An Ode to Mario''
121. Palm Beach Civic Association Community Forum, February 28,
2011
122. March 1, 2011: ''USIBC: India's Annual Budget Briefing''
123. New York State Common Retirement Fund Investment Conference,
March 23, 2011: ``Distressed Investment Opportunities''
124. Partnership For New York City China--U.S. Business Leaders
Roundtable, April 7, 2011
125. Siguler Guff Annual Meeting, May 17, 2011
126. J.P. Morgan China Conference 2011, June 1, 2011
127. Bloomberg Markets 50 Summit, September 15, 2011: ``Austerity
and Other Growth Obstacles''
128. Marcum LLP, September 21, 2011: ''Alternative Assets and the
Outlook on the Capital Markets''
129. CICC Forum Panel II, September 26, 2011
130. September 28, 2011: ``Extra Pages''
131. Tokyo Nikkei Forum, October 24, 2011: ``Facing Challenges with
Superior Management Vision''
132. Blenheim Foundation, October 27, 2011
133. Marine Money 12th Annual Ship Finance Forum, November 10,
2011: ``An Investor's Perspective on the Shipping Industry''
134. WL Ross & Co. LLC 2011 Annual Partners Meeting, November 16,
2011
135. 17th Annual Beard Group Distressed Investing Conference,
November 28, 2011
136. The M&A Advisor, December 12, 2011: ``Deal of the Decade
Awards''
137. January 19, 2012: ``Kappa Beta Phi Speech''
138. Meeting with Bank of Ireland, January 27, 2012
139. Meeting with NTMA Brian Murphy & National Pension Reserve
Fund, January 27, 2012
140. Daiwa Capital Markets America Luncheon, February 8, 2012:
``What's Next for Investors in Japan?''
141. The Ireland Funds, February 16, 2012
142. Ireland-US Council Lunch, February 17, 2012
143. Yale SOM Leaders Forum, April 10, 2012
144. 40 Under 40 Awards Commentary, May 1, 2012
145. Invesco Investment Symposium, May 2, 2012
146. NYU Economic Forum, May 10, 2012
147. Marine Money Week, May 2012
148. 2nd Annual American Banker M&A Symposium, May 21, 2012
149. Siguler Guff & Company 2012 Conference, May 23, 2012: ``A Tale
of Two Cities: Athens & Dublin''
150. June 23, 2012: ``Transcription of IPI Keynote Interview with
Consuelo Mack''
151. June 2012: ``IPI Summary''
152. Japan Society, June 7, 2012: ``Remarks''
153. Marine Money, June 20, 2012: ``The Shipping Industry in 2015''
154. Marine Money Singapore, September 25, 2012: ``A Marine
Transport Investor's Point of View''
155. Invesco U.S. Retail Client Investment Symposium, September 27,
2012
156. Invesco Board Speech, October 7, 2012
157. Invesco Board Meeting, October 7, 2012
158. Japan Society Evening, January 15, 2013: ``Banker to the
World--Lessons from the Front Lines of Global Finance''
159. Automotive News Congress, January 16, 2013: ``Our Changing
Industry''
160. YPO Economic Summit V, January 18, 2013: ``Keynote Speech''
161. Yale SOM Leaders Forum Speakers Series, January 29, 2013: ''A
Conversation with Wilbur Ross''
162. The Ireland-U.S. Council Winter Meeting, February 15, 2013:
``Presentation to The Ireland-U.S. Council Winter Meeting''
163. Worldwide Ireland Fund Leadership Forum: February 26, 2013
164. NMS Family Office Forum, March 5, 2013; ``A Look Ahead'
165. BritishAmerican Business CEO Roundtable, March 13, 2013:
``Lessons Learned from Corporate Restructuring''
166. The Ireland Day Pre Summit Dinner, March 14, 2013:
``Outstanding Contribution to Business in Ireland''
167. Ireland Day 2013 at the NYSE, March 15, 2013: ``Opportunities
for Ireland Inc.''
168. Gatestone Luncheon, March 21, 2013: ``How to Jumpstart the
Economy''
169. American Bankruptcy Institute Commission Hearing to Study
Reform of Chapter 11, April 19, 2013
170. Berkeley Point Annual Customer Conference, May 2, 2013:
``Thoughts on Current Major Events Affecting Global Economies''
171. May 22, 2013: ``Lessons from Other Banking Crises''
172. Japan Society Annual Dinner, June 3, 2013: ``Chairman's
Remarks''
173. June 19, 2013: ``Private Equity in Shipping''
174. Tokyo Speech Investment Strategies, July 18, 2013: ``Our
investment Strategies''
175. Finance Panel Discussion Boehner for Speaker Team Retreat,
August 29, 2013
176. RBS Credit & Asset-Backed Conference, September 5, 2013:
``Opportunities Created by the Financial Crisis''
177. Invesco Board Meeting, October 9, 2013
178. October 18, 2013: ``WLR Speech''
179. Marine Money Conference, February 27, 2014: ``2014 Private
Equity and Shipping''
180. Capital Link Shipping Forum Luncheon Keynote, March 20, 2014:
``Private Equity View of Marine Transport''
181. WL Ross & Co. LLC 2014 Annual Meeting, March 25, 2014: ``WL
Ross Organizational Changes''
182. The Ben Graham Centre Value Investing Conference, April 8,
2014: ``Lessons from the Bank of Ireland Saga''
183. 15th Anniversary of Leading Brands of Spain Association, April
24, 2014: ``Competing Globally: Perspectives from a Leading Investor''
184. Invesco Canada Client Event Luncheon Keynote, May 18, 2014
185. St. George's Society of New York, May 21, 2014: ``St. George's
Medal Acceptance Speech''
186. Daiwa Capital Markets Speech, May 27, 2014: ``What's Next for
Investors in Japan?''
187. Japan Society, September 10, 2014: ``The Central Banks of
U.S., Europe and Japan and Their Impact on Each Economy''
188. Daiwa 50th Anniversary, September 18, 2014
189. Quarterly Call, October 15, 2014
190. American Irish Historical Society, November 6, 2014
191. Marine Money, November 12, 2014
192. December 11, 2014: ``Oil-OPEC''
193. The Yale CEO Leadership Summit, December 18, 2014: ``Legends
of Leadership Award''
194. Aegon Annual Meeting, January 16, 2015 ``Where Is Oil Going?''
195. Palm Beach Pundits Luncheon Keynote Speech, March 2, 2015:
``Income Inequality and Upward Mobility in the U.S.''
196. National Institute of Social Sciences, March 6, 2015: ``Income
Inequality and Upward Mobility in the U.S.''
197. James Gorman Japan Society Lunch Intro, March 12, 2015
198. Ireland Day Keynote, March 13, 2015: ``The Irish Economy:
Laying Foundations for Sustainability and Success''
199. March 23, 2015: ``Capital Link Shipping Conference Keynote
Speech''
200. March 23, 2015: ``WL Ross Limited Partner Annual Dinner
Speech''
201. NY Common Videoconference, April 15, 2015
202. Invesco Canada Client Event Keynote Speech, May 21, 2015:
``The Economic Outlook for the U.S. Europe, Japan, China and Canada''
203. June 4, 2015: ``Questions for Rutgers Business School Panel''
204. June 10, 2015: ``Macro Environment''
205. Japan Society Annual Dinner, June 11, 2015
206. Invest Cyprus Awards, July 1, 2015
207. The Vietnam Conference, July 1, 2015: ``Why U.S. Corporate and
Private Equity Investors Should Look at Vietnam Now''
208. Wall Street Journal Europe, July 3, 2015: ``The Lessons Greece
Didn't Learn''
209. Ascension Health Meeting, July 16, 2015: ``Three Complex
Topics: Greece, Oil and China''
210. BritishAmerican Business, July 20, 2015: ``Is the Sovereign
Debt Crisis Over?''
211. NYSSA, July 27, 2015: ``Greece''
212. SentryWorld Badger/Gopher Roundtable, July 31, 2015: ``Three
Puzzles: Greece, Oil and China''
213. August 26, 2015: ``Governor Kuroda Introduction''
214. August 26, 2015: ``Potential Initial Questions for Governor
Kuroda''
215. The Future of Finance Conference, September 9, 2015: ``IT and
Regulatory Challenges and Opportunities Facing Bank Managements''
216. Brookings Dinner for the President of Cyprus, September 24,
2015: ``President of Cyprus Intro''
217. NYSSA Annual Dinner, October 10, 2015: ``NYSSA Lifetime
Achievement Award'
218. JP Morgan Private Client Event, November 20, 2015
219. 2015: ``The strategic issue steel versus other materials''
220. Stifel Transportation & Logistics Conference, February 9,
2016: ``Keynote Speech''
221. Foreign Policy Association, February 10, 2016: ``China & Oil:
Two BIG Issues''
222. Mayor and Town Council, Palm Beach, Florida, March 30, 2016,
``Pension Fund Presentation''
223. Marriott Essex House, April 11, 2016: ``Fund VI & Tactical
Energy Meeting with Pepperdine University''
224. Capital Roundtable Conference, April 14, 2016: ``Capital
Roundtable PE in Distressed Companies''
225. IPI Spring Forum, May 17, 2016
226. Market Groups Private Equity Americas Forum, May 18, 2016:
``Macro Outlook on Private Equity''
227. June 1, 2016: ``Introduction of Brian Moynihan, BOA''
228. Japan Society Annual Dinner, June 1, 2016: ``Chairman
Remarks''
229. June 28, 2016: ``Brexit and Trump''
230. July 6, 2016: ``How to Create 200,000 High-paying Jobs While
Lowering the Federal Deficit by $50 Billion''
231. Town Hall of Palm Beach, Florida, July 12, 2016: ``Retirement
Fund Information''
232. July 13, 2016: ``How to Fix Our Trade Policy''
233. July 27, 2016: ``Donald Trump's Repatriation Solution for
Infrastructure Funding''
234. August 3, 2016 Speech
235. August 17, 2016 Speech
236. August 22, 2016: ``Hillary's Plan Doesn't Work''
237. August 30, 2016 Speech
238. September 6, 2016: ``Wilbur L. Ross Background Information''
239. September 12, 2016 Speech
240. China institute, September 27, 2016: ``China and Trump''
241. October 14, 2016 Speech
242. October 15, 2016: ``Speech for Teddy''
243. 2016 IIF Annual Membership Meeting, October 3, 2016:
``International Trade''
244. 2016 IIF Annual Membership Meeting, October 8, 2016; ``Free
Trade Agreement''
245. 2016 IIF Annual Membership Meeting, October 8, 2016: ``Panel
Presentation to the institute for International Finance''
246. October 13, 2016: ``TPC Panel Speech''
247. Real Clear Policy, October 30, 2016: ``Donald Trump's Contract
with the American Voter''
248. November 7, 2016: ``Marine Money Speech (if Trump Wins)''
249. November 16, 2016
250. 2016: ``Regulatory and Trade Talking Points''
Books
1. Workouts and Bankruptcy Reorganization Workshop (1986)
2. My One Big Break, Spotlight Press (2004)
3. 10-Year Treasury Runs Risk of 25 percent Decline (2013)
4. Afterword: Opportunity Knocking: Lessons from Business Leaders
(2014)
Articles/Columns/Publications
1. The Wall Street Journal Online, October 25, 2016, OPINION, 1008
words, A Vote for Trump Is a Vote for Growth; The Republican's policies
will create 25 million new jobs, boost incomes and generate trillions
in additional tax revenues.
2. Wall Street Journal Abstracts, October 14, 2016 Friday, A; Pg.
10, 26 words, TRUMP'S RIGHT: NAFTA HAS BEEN LOSER FOR US.
3. September 29, 2016, Scoring the Trump Economic Plan: Trade,
Regulatory and Energy Policy Impacts
4. Washingtonpost.com, September 27, 2016 Tuesday 4:11 AM EST,
Editorial; Pg. A19, 863 words, How Trump would boost the U.S. economy.
5. Financial Times, August 28, 2016, Trade Imbalances
6. Wall Street Journal Abstracts, August 26, 2016 Friday, A; Pg.
10, 32 words, WILBUR ROSS RESPONDS TO HIS CRITICS ON TRADE.
7. Wall Street Journal Abstracts, August 15, 2016 Monday, A; Pg.
10, 28 words, MR TRUMP MAKES SOME GOOD POINTS ON TRADE.
8. Detroit Free Press (Michigan), August 12, 2016 Friday, 1
Edition, OPINION; Pg. Al2, 725 words, Clinton is taking the wrong
approach to trade deals.
9. Toledo Blade (Ohio), August 2, 2016 Tuesday, FINAL Edition,
PAGES OF OPINION; Pg. A6, 666 words, Unions won't support Clinton's
flip-flop.
10. Pittsburgh Post-Gazette, August 1, 2016 Monday, SOONER EDITION,
EDITORIAL; Pg. A-9. 607 words. CLINTON'S BAIT-AND-SWITCH ON TRADE; WHY
HILLARY CLINTON IS GOING TO BE A TOUGH SELL IN THE UNION HALLS.
11. The Wall Street Journal Online, July 2, 2015, OPINION, 622
words, The Lessons Greece Didn't Learn; If Athens had implemented
reforms swiftly, it would be on the road to prosperity today.
12. Welath Arabia, June 2012, How I made it.
13. WALL STREET JOURNAL ABSTRACTS, June 25, 2009 Thursday, Section
A; Column 4; Pg. 14, I6 words, NOTHING DARWINIAN ABOUT GM BANKRUPTCY.
14. Avenue Magazine, April 2009, MoneyTalk.
15. The New York Post, November 6, 2008 Thursday, All Editions; Pg.
37, 511 words, O'S JOB NO. 1: AMERICAN JOBS.
16. The New York Post, October 2, 2008 Thursday, All Editions; Pg.
36, 589 words, A PLAN FOR EVERY HOMEOWNER--A FEDERAL INSURANCE SCHEME
TO BENEFIT WALL STREET AND MAIN STREET.
17. The New York Post, September 28, 2008 Sunday, All Editions; Pg.
35, 666 words, PASS THE PLAN NOW! WARTS AND ALL, $700B BAILOUT IS BEST
STEP FORWARD: ROSS.
18. WALL STREET JOURNAL ABSTRACTS, March 10, 2008 Monday, Section
A; Column 1; Pg. 14, 42 words, REVIEW & OUTLOOK--THE MUNI PLAY.
19. WALL STREET JOURNAL ABSTRACTS, September 24, 2007 Monday,
Section A; Column 5; Pg. 10, 37 words, IN BRIEF--ROSS OFFERS TO ACQUIRE
MAJOR MORTGAGE SERVICE,
20. WALL STREET JOURNAL ABSTRACTS, November 21, 2006 Tuesday,
Section C; Column 5; Pg. 5, 36 words, LEAR CORP.
21. The News & Observer (Raleigh, North Carolina), August 15, 2006
Tuesday, Final Edition, EDITORIAL/OPINION; Point of View; Pg. A9, 16
words, Textiles' stake in trade with Vietnam.
22. The Sunday Telegraph (LONDON), July 30, 2006 Sunday, CITY; Pg.
7, 1414 words, `Here comes a bankruptcy boom' As leveraged deals get
ever larger, Wilbur Ross expects a rapid rise in the number of
companies falling into difficulty.
23. The Wall Street Journal Asia, June 8, 2006 Thursday, Pg. 13,
827 words, Who Does Arcelor Belong To?
24. The Wall Street Journal Europe, June 7, 2006 Wednesday,
Business Europe; Pg. 12, 931 words, A Raw Deal for Shareholders.
25. WALL STREET JOURNAL ABSTRACTS, June 7, 2006 Wednesday, Section
A; Column 4; Pg. 14, 57 words, WHO DOES ARCELOR BELONG TO?
26. Information Bank Abstracts, WALL STREET JOURNAL ABSTRACTS,
August 12, 2003, Tuesday, Section A; Page 13, Column 1, 24 words, BUSH
MUST STAY THE COURSE ON STEEL TARIFFS.
27. The Bond Buyer, February 26, 1996, Monday Correction Appended,
OPINION; Pg. 30, 726 words, Theory Aside, Privatize When the Numbers
Show Consumers Will Benefit.
28. The Bond Buyer, April 3, 1995, Monday, OPINION; Pg. 31, 557
words, How an Internal Revenue Service Rule Is Standing in the Way of
Privatization.
29. Information Bank Abstracts, WALL STREET JOURNAL, June 6, 1991,
Thursday, Section A; Page 19, Column 1, 29 words, LETTERS TO THE
EDITOR.
______
Attachment Six
3. Have you or any business or nonprofit of which you are or were
an officer ever been involved as a party in an administrative agency
proceeding, criminal proceeding, or civil litigation? If so, please
explain.
Following are matters of which I am aware, based on my records and
an electronic search. As noted in the response to Question C.3, I also
have been associated with a number of corporations and other entities
and, from time to time, such entities (including, in some instances,
their directors, officers and employees) have been involved, in the
ordinary course, in judicial or regulatory proceedings relating to
their businesses.
------------------------------------------------------------------------
Dates(s)
Caption Filed Description Resolution
------------------------------------------------------------------------
Storper v. Ross, No. May 23, 2016 Contract Dropped as
652772/2016 defendant
(N.Y. Sup. Ct.)
------------------------------------------------------------------------
Lowinger v. Ross, No. Apr. 29, Contract Discontinued
651440/2015 (N.Y. Sup. 2016
Ct.)
------------------------------------------------------------------------
Kramer v. Ross, No. 6470 May 11, 2011 Fiduciary duty Settled
(Del. Chancery)
------------------------------------------------------------------------
Lusk v. Ross, No. 603825/ Oct. 27, Contract Settled
2005 2005
(N.Y. Sup. Ct.)
------------------------------------------------------------------------
Ross v. Caraher, No. Aug. 21, Zoning Remanded for
18898/2003 2003 new hearing
(N.Y. Sup. Ct.)
------------------------------------------------------------------------
Ross v. McCaughey Ross, Apr. 11, Divorce Settled/
Nos. 108031/2000, 350272/ 2000 divorce
1999, 350723/1998 (N.Y. Apr. 21, granted
Sup. Ct.) 1999
Nov. 4, 1998
------------------------------------------------------------------------
Ross v. Ross, Nos. 128305/ Nov. 29, Divorce Divorce
1995, 300010/1993 (N.Y. 1995 granted
Sup. Ct.) Jan. 5, 1993
------------------------------------------------------------------------
Ross v. Commissioner of Apr. 1, 1986 Tax Settled
IRS, No. 008580-85
(U.S.T.C.)
------------------------------------------------------------------------
The Chairman. Thank you, Mr. Ross.
Before we begin our questions, I want to ask unanimous
consent to put multiple letters of support for Mr. Ross into
the record, including those from four former Secretaries of
Commerce from both parties endorsing him for the position.
Without objection, it's so ordered. Thank you.
[The information referred to follows:]
[GRAPHICS NOT AVAILABLE IN TIFF FORMAT]
The Chairman. And we will now turn to questions.
Mr. Ross, according to media accounts, should you be
confirmed as Secretary of Commerce, President-elect Trump will
formally tap you to oversee the Nation's trade policy, and I'm
wondering what you might be able specifically to describe in
terms of what you'll be seeking to accomplish with regard to
trade policy in the first 100 days of the Trump administration.
If you could hone in a little bit because a lot of the media
reporting, specifically with regard to China, and also there
were some stories this morning regarding Canada and NAFTA. So
if you could talk, speak, to those issues.
Mr. Ross. Surely, sir. We are well aware of the legislated
powers of the U.S. Trade Representative. And obviously, neither
the President nor I is going to try to do anything that is
adverse to the congressional mandate given to the U.S. Trade
Rep.
Having said that, though, we think it is good for trade
policy to bring all of the intellectual resources that we can
muster----
[Interruption by protestors.]
Mr. Ross. That was not part of my prepared remarks.
[Laughter.]
The Chairman. Thank you. Please proceed.
Mr. Ross. I was saying I think it's important to bring all
the intellectual resources and experience that we can to
helping solve the trade issues. And, therefore, we view that
there will be a collaborative process among the U.S. Trade Rep,
myself, and Peter Navarro, the White House Director of the
National Trade Council. We will try our best, collectively, to
do what's best for this country. So that's how we visualize the
interaction of those parties working.
As to Canada and Mexico, the President-elect has made no
secret in his public remarks, nor have I, in earlier remarks
during the campaign that NAFTA is logically the first thing for
us to deal with. We ought to solidify relationships in the best
way we can in our own territory before we go off to other
jurisdictions. So I think that should be, and hopefully will
be, if I'm confirmed, a very, very early topic in this
administration.
The Chairman. And China?
Mr. Ross. China is the most protectionist country of the
very large countries. They have both very high tariff barriers
and very high non-tariff trade barriers to commerce. So they
talk much more about free trade than they actually practice. We
would like to levelize that playing field and bring the
realities a bit closer to the rhetoric.
The Chairman. Mr. Ross, you coauthored President-elect
Trump's America's Infrastructure First plan, which is described
as featuring a major private sector, revenue-neutral option to
help finance a significant share of the Nation's infrastructure
needs. There is bipartisan interest in working together on
infrastructure issues, but there are also questions about how
the new administration's plan will address infrastructure
projects do not have a readily available revenue source, and
that would apply to most rural projects.
Could you provide some insights as to how the America's
Infrastructure First plan will address the infrastructure needs
in rural America?
Mr. Ross. Surely. Well, first of all, as to the plan that
we wrote about during the campaign, that concept of the public-
private partnership with tax incentives for equity investment
was simply meant to be yet another tool because I think there
are three categories of infrastructure projects. One are the
ones that are simple to finance, where they have inherent well-
documented, reliable source of revenue from user fees. Those
don't really need much more help because they have access to
the tax-exempt bond market and to the corporate debt market.
The third category is the trickiest one, and some of the
rural activities go in that. That's ones where it's very hard
to find a convincing source of revenue. It seems to me those
will have to be subsidized by someone as part of an overall
infrastructure project.
The one in the middle is the ones that have a potential
revenue source, but it isn't as clearly defined that you can
just do it without needing equity. So the purpose of the plan
that we put forward, the public-private partnership, was to
fill that second gap. So it's not in place of concepts like
Build America Bonds, it's not in place of conventional
financing, it simply was meant to provide another tool. And the
reason I think we need another tool is the infrastructure needs
of this country are so monumental that we need any available
source of capital in order to meet it on a timely basis.
The Chairman. Well, I would just simply say that there are
a lot of Members of this Committee on both sides of the aisle
that represent large geographic areas and would look forward to
working with you as you shape that plan to ensure that rural
areas are not left out of the equation.
My time is expired, but before we turn to other Members for
questions, I wanted to seek clarification from you, Mr. Ross,
on one additional subject. Upon your nomination and as part of
this confirmation process, it's my understanding that you
determined that you had hired a household employee in 2009 who
presented a Social Security card, and the employee's name along
with a valid driver's license, but who recently was unable to
provide similar documentation again.
Once you made this discovery, I understand you immediately
terminated that particular household employee and informed the
Committee. Prior to this discovery, however, you had used the
Social Security Number this person provided you to pay all
applicable taxes for this household employee from 2009 to 2016
without incident.
I want to say, Mr. Ross, thank you for being forthcoming
with the Committee about this particular matter, and I would
ask you if I have explained accurately the facts, and if there
is anything further that you would like to add about this
matter at this point.
Mr. Ross. Those are the facts, and we did the best that we
thought we could do in order to verify the legality of the
employment, and it turned out that was incorrect. So, but we
did pay all of the withholdings, so did that employee, and so
did all the other employees that we've had.
What happened was when I was getting ready for this
hearing, I wanted to recheck all of our present and former
employees. They all produced the appropriate records again, and
in many cases, they had now advanced to the point where they're
actually citizens, so I'm very happy with that. This one
employee was unable to, and, therefore, was terminated.
The Chairman. Thank you, Mr. Ross.
Senator Nelson.
Senator Nelson. And I think it's important to point out
that that wasn't just one or two employees; you had a battery
of employees over those years.
Mr. Ross. Yes, Senator, that's correct, a dozen or so.
Senator Nelson. I have, of course, talked to the Chairman
about this. You were forthcoming in your questionnaire that you
filled out for the Committee. You were a private citizen all
that period of time, and it was only until such time that you
had been named Commerce Secretary that you rechecked and then
found out that one of your dozen or so employees had, in fact,
deceived you. Is that correct?
Mr. Ross. Yes, it is, Senator.
Senator Nelson. And then you immediately dismissed that
employee.
Mr. Ross. That is correct, sir.
Senator Nelson. And that all occurred sometime within the
past month.
Mr. Ross. That is correct also.
Senator Nelson. OK. Can you share with the Committee what I
referred to in my opening statement about how you have bought
and sold many businesses. You know what the critics have said.
You know those who have said that you have been a job creator,
praising your work.
So could you share with us how you would characterize that
part of your businesses? And does your record demonstrate that,
as Secretary of Commerce, you're going to be putting businesses
first, and especially American workers first?
Mr. Ross. Thank you for that question, Senator. Some of the
companies that we have been cited, International Steel Group,
there is clearly no question whatsoever, the work that Leo
Gerard, the head of the Steel Workers Union, and I did
together, Leo believes and I believe probably saved 100,000
jobs in America. And, frankly, that's the series of events I'm
most proud of in my entire career.
Second, there was talk in one of the press about
International Auto Components and a couple of hundred jobs
being moved to Mexico during a little time period. During that
same time period, we grew net-net-net our jobs in this country
to 11,000 jobs, which was more than a 10 percent increase from
what we had before it.
The only reason we moved a couple of workers to Mexico was
our business is making interior parts for cars. Those are just-
in-time deliveries, so you have to be right contiguous to the
factory that you're supplying, the original equipment
manufacturer or factory. The customer of those factories that
laid the people off moved to Mexico, so there was no longer a
customer. That customer asked us to relocate workers to Mexico.
We really didn't have much alternative to do so because once
the customer is gone, and since he insists that you be right
next-door to him so that he doesn't have to keep any inventory,
we had no choice. But net-net IAC was an adder of jobs.
Similarly, International Textile Group, it is true that it
had to reduce its workforce. It is also true we are probably
the last large domestic manufacturer of textiles left standing
with maybe one or two other exceptions. And subsequent to our
work at ITG, their main union became--used its pension fund to
invest in my funds. So, clearly, UNITE, which is the union that
has organized the textile and apparel industry, felt that we
did responsible things and that we were certainly not anti-
worker.
I think, in reality, if we hadn't also begun some foreign
operations, we would have had to shut down far more of the
domestic activities. So I believe if you add and subtract, we
have been a very large net creator of jobs during this whole
period in the United States.
Senator Nelson. Mr. Chairman, I'm going to take the
prerogative to ask one more question, and I emphasized it in my
opening remarks.
Under the NOAA Scientific Integrity Policy, NOAA scientists
do not need to ask for permission to share their expertise on
scientific matters with the public or with the press. Do you
support that right?
Mr. Ross. I support the dissemination of valid information
to the public. I don't think that valid information should be
concealed. And in general, I have great respect for the
scientific quality of NOAA. It's my understanding that there
are four Nobel Prize winners at NOAA, and that is certainly a
measure of their expertise.
So I think that communication of factual information and
data is very, very important.
Senator Nelson. Do you consider the rise of the sea level
as valid scientific data?
Mr. Ross. It's very hard for me, Senator Nelson, to parse
which part of data is what, but in general, I think that there
will be a very big report forthcoming from NOAA. Every three
years they send a report to the International Climate Group.
That should be coming out very, very shortly, and I think it
will be very, very interesting to see what their updated
findings are on that topic as well as on other topics.
Senator Nelson. Well, Mr. Chairman, just in closing, I will
point out that NOAA and NASA measurements over the course of
the last 4 decades have shown in southeast Florida that the sea
level has risen from 5 to 8 inches. That is data that should be
reported again in this report that you're talking about that's
coming out. Thank you.
Mr. Ross. Since you've asked me, sir, not to edit the
report, I probably won't have any control over whether they put
those specific facts in or not, but I am sure they are mindful
of the facts.
The Chairman. Thank you, Senator Nelson.
I've got Senator Cantwell followed by Senator Blunt
followed by Senator Klobuchar.
STATEMENT OF HON. MARIA CANTWELL,
U.S. SENATOR FROM WASHINGTON
Senator Cantwell. Thank you, Mr. Chairman. I thought you
were going back and forth.
The Chairman. I am.
Senator Cantwell. OK. Don't leave the room. I guess that's
the key thing there.
Mr. Ross, you mentioned obviously maritime issues and
fisheries, and for us in the Northwest, this is big jobs--$30
billion in annual revenue and 148,000 direct and indirect jobs
in the maritime sector. And I don't have the information right
in front of me, but your ethics documentation is not requiring
you to divest your Diamond Shipping Company, which operates 33
tanker vessels and transports petroleum products of over $1.2
billion. Is that correct, you're not divesting from that?
Mr. Ross. That is correct. The research we've done suggests
that there has never been a shipping case come before the
Department of Commerce. And in our case, the vessels are the
most environmentally up-to-date vessels that you are going to
find on the water.
As you know, there are some new regulations coming in about
ballast water and other things, but we believe that our
vessels, even before those rules came in, have been very well
brought, for the most part, up to snuff. So we are proud that
the vessels are the best we can do environmentally.
In addition, we don't take any risk in the cargo. We simply
are like a taxicab. They put cargo on it, we discharge it in
another location, and we're paid a fee for so doing. But I will
have no involvement with the operation of the business.
Senator Cantwell. And I think my question--well, first of
all, I'm sure when we get into larger infrastructure
discussions, there will be a lot of Members of this Committee
that will say, ``What can we do to provide more shipbuilding
jobs in the United States of America?'' and I would think there
are probably many Members of this panel who believe in
shipbuilding in the United States and that there is much more
to do.
But I'm sure you remember the Exxon Valdez, and I'm sure
you appreciate that the pristine waters all throughout the
Pacific Northwest are of high economic value. I'm sure you get
that, being a Floridian, there is a high economic value to the
pristine coastlines of a state.
Mr. Ross. Sure.
Senator Cantwell. So my question--and I'm happy to provide
this for you for the record, but there are many, many, many,
many aspects of your new job that will be about the regulation
of this industry: the Oil Spill Liability Trust Fund and how
much shippers pay into that; there were obviously after the
Deepwater Horizon catastrophe similar issues; and there's the
Oil Pollution Act governing our maritime liability and
response.
So I want to make sure that as these issues are discussed
within your organization, if you're still going to hold that
position in that company or whether you're going to recuse
yourself from those issues.
Mr. Ross. Well, on issues--our vessels are only
transoceanic vessels. We are not Jones Act participants, so we
don't do port-to-port----
Senator Cantwell. Do you support the Jones Act?
Mr. Ross. The Jones Act is a fact. I've been living with
it. I have never voiced any opposition to it. It's just not
relevant to what we've been doing.
But the Jones Act has been useful in continuing U.S.
shipbuilding. I think without the Jones Act, you would have
even less U.S. shipbuilding than you have now because of the
requirement that the intracoastal activities be Jones Act-
qualified vessels and Jones Act-qualified crews.
Senator Cantwell. Well, I want to make sure that--I will
get this to you, and you can respond in writing, but there will
be times in which those interests will be impacted by decisions
made by your organization. And if you would take a look at the
specific questions and areas where you would recuse yourself in
addition to what you've already done with ethics, I would so
appreciate this.
Mr. Ross. Oh, I intend to be quite scrupulous about recusal
and any topic where there is the slightest scintilla of doubt.
Senator Cantwell. Thank you. Well, we'll get back to you. I
have a few minutes, a few seconds left. The President-elect's
administration is trying to bring in a lot of private sector
experience. I appreciate private sector experience, but
oftentimes that experience is about answering to shareholders
and other special interests. This is about answering to the
public interest. And as it regards the huge issues we have on
pensions, you know, we've had so many things that have happened
in these last several years of our economy where people have
been able to come in, reap the assets of companies and
organizations, and then leave the Federal Government or the
workers with the liability.
Do you support shoring up the miners' pension multiemployer
program, and do you support shoring up the PBGC?
Mr. Ross. Well, let me talk about the pension situation in
general. What happens in bankruptcy court is that the debtor,
not the potential buyer, but the debtor itself, has the burden
of proving to the court that it is not reorganizable without
dealing with the pension and retiree health liabilities. The
court makes that determination. In every case where we've
bought and where the pension plan was terminated, that decision
had been made by the court prior to our advent on the scene. So
the idea that we terminated anybody's pension plan is simply
false.
Senator Cantwell. I'm not asking that. And I'm out of time.
We can come back to this in round two, but I want to know now,
when wearing that hat, you know, as Commerce Secretary, I want
to know what your viewpoint is from the worker perspective and
whether you support shoring up that aspect of the pension
program?
And since I'm out of time, Mr. Chair, we can go to round
two or we can get a written answer on those questions.
Mr. Ross. Should I answer the question, sir?
The Chairman. Well, if--can you be very, very brief?
Mr. Ross. I will. I'm quite familiar with the Pension
Benefit Guaranty Corp, and, as you know, we--Commerce has a
board seat on PBGC. They are the insurer of last resort. I
think they need to be even more scrupulous about risk-based
pricing so that they themselves don't run out of money as
further pension obligations find their way to them.
The Chairman. Thank you, Senator Cantwell.
Senator Blunt.
STATEMENT OF HON. ROY BLUNT,
U.S. SENATOR FROM MISSOURI
Senator Blunt. Thank you, Chairman.
And thank you, Mr. Ross, for being here, for being willing
to serve. And I look forward to your leadership at Commerce and
what I think, from everything I read, would be an expanded role
beyond Commerce because of the President-elect's confidence in
you.
On the infrastructure side, we had Secretary Chao, former
Secretary of Labor, and I suspect the future Secretary of
Transportation, in the other day, and one of the questions I
asked her was about the importance of better intermodal
strategy for transportation.
I live in Missouri. The Mississippi River is there, the
Missouri River flows into the Mississippi, but across the--we
are really at the water nexus of the country, but also the rail
and highway nexus of the country. I'm sure all of those need to
work together even better for us to have the competitive
potential we need. And I would like you to talk just a little
bit about your sense of how we look at those more interrelated
transportation systems.
Mr. Ross. Well, as you know, we have been in the railcar
manufacturing business for quite a long time, and one of our
major products were the types of cars that were best suited to
intermodal because there's a role for truck, there's a role for
barges, there's a role for rail.
And I think people keep trying, and will eventually
succeed, at finding new and better ways to facilitate those
transfers from one mode of transportation to another. I think
that's a very, very vital thing for this country because for
many industries, transportation cost is as much as 20 percent
of their total cost. So anything that can be done to facilitate
transportation will help the economy just in and of itself, let
alone infrastructure spending has a very high labor content,
generally around 44 percent. So it's a very good way to provide
high-paying jobs to ordinary people.
Senator Blunt. And if I understood your three-level matrix
of how you finance, one was things that have an obvious and
easy-to-understand financing component that have access to the
credit world because of that; another may have some components,
like a rural cable, that could pay part of the bill, but not
all of the bill; but then in the middle, you had that greater
category of things that just can't happen without a
partnership.
Would you give me an idea both of what one of those might
be and what the private sector opportunity that we're not
seeing or not using effectively could be as we look down the
road?
Mr. Ross. Yes, sir. I think we're fortunate to be coming to
grips with infrastructure in a relatively low-interest-rate
environment because that will facilitate getting a lot of
projects done that could not be done in a lower interest rate
environment because there would be a crowding out effect.
But even so, there will be, in many cases, a need either
for the public policy decision to have government play a direct
role or for a way to encourage private sector to participate.
So I think it won't be one size fits all. It's a very large
and every complex problem, and it needs very large, very
inventive, and complex solutions.
Senator Blunt. And you're also proposing that as you look
at infrastructure, that we're making a greater effort to
incorporate new technologies into that infrastructure?
Mr. Ross. Yes, sir. And that's a lot of what we're doing in
Florida right now. It's not just to get away from the
hurricanes, we're also building in extra conduit beyond even
the optical fiber that we're putting in, in the first instance
to allow for potential developments in the future because it's
a lot easier to lay the second or third conduit at the same
time than it would be to have to close that up and then come
back 5 years from now. So we've been trying to get a little bit
ahead of the game. And in that particular case, it's being
financed by tax-exempt bonds.
Senator Blunt. So Senator Klobuchar and I have been
particularly involved in the travel and tourism issues,
thinking that is often described as the low-hanging fruit in
the economy, particularly foreign travel to our country. The
current Secretary has been very interested in that; it's part
of the portfolio of Commerce.
Would you talk just a little bit about that and how it
impacts the economy?
Mr. Ross. Surely. First of all, having been involved--I
worked with the labor unions and the Pan American World Airways
bankruptcy. I was their financial adviser. I was bondholder
adviser in TWA, preferred stock adviser in Eastern. So I'm
pretty familiar with the airline industry, and actually had
been on the board of Wien Airlines up in Alaska for quite a
while.
I'm a big proponent of the Open Skies policy. I think
that's an important thing. I think developing tourism is
extremely important. And I think something like a ninth of all
the jobs in this country are one way or another dependent on
tourism. So it is a powerful economic factor, and it is one of
the segments of Commerce Department that I will certainly be
paying attention to, if confirmed.
Senator Blunt. And I'll just say in closing, Mr. Chairman,
and, too, Mr. Ross, it's also an area where we've got a very
active public-private effort going on right now to encourage
people to discover America.
So thank you, Chairman.
The Chairman. Thank you, Senator Blunt.
Senator Klobuchar.
STATEMENT OF HON. AMY KLOBUCHAR,
U.S. SENATOR FROM MINNESOTA
Senator Klobuchar. Thank you very much.
Congratulations on your nomination, Mr. Ross.
Mr. Ross. Thank you.
Senator Klobuchar. And thank you, Senator Blunt, for asking
those important tourism questions. Of course, Senator Blunt and
I won't ask you if you think the Mall of America in Bloomington
or Branson, Missouri, are better places to visit than Florida,
but I think one of our reasons in taking this on is there is
tourism all across America that's very important.
I want to lead with something you and I discussed, and that
is iron ore and steel. My state, as you know, is one of the
leading producers of iron ore. It's in my family. My grandpa
worked as an iron ore miner 1,500 feet underground most of his
life. We've had an incredible downturn due in part to
overcapacity, but also due to steel dumping that is illegal.
And recently there have been some good actions taken by the
Commerce Department. Congress has given more funds, which has
been helpful. And we've seen a bit of improvement.
And I wonder if you could address how you would build on
this work and improve it even more for our hard-working miners
and people in the steel industry.
Mr. Ross. Well, sure. As you can appreciate, I probably
have greater familiarity with mining than most people up for
this position.
The fundamental problem with the steel industry is
overcapacity, particularly in China. China has 1 billion tons
of capacity. That's half of the world's capacity. They need
something like 700 million tons domestically. They're actually
producing 800 million tons and putting 100 million tons out
into the world markets often at dumping prices. And so I think
one of the things where we do need very careful attention to
more tariff activity is the anti-dumping requirements that we
should impose on the steel industry and on the aluminum
industry as well.
That's a very big issue, and unfortunately until fairly
recently, Europe was even more reticent to impose
countervailing duties than we are, but finally they seem to be
feeling the pinch of it, and they're starting to come around as
well.
Senator Klobuchar. Right. As you know, they just launched
the Global Forum on Steel Excess Capacity in Berlin in
December. So I assume you will be willing to work with our
allies on that.
Mr. Ross. Oh, absolutely. I know many of them anyway
because Arcelor had been very active throughout Europe.
Senator Klobuchar. OK. Thank you. And will you work with
our Customs and Border Patrol? You and I discussed the issue of
these shipments coming in with illegal steel.
Mr. Ross. Yes. One of the things that horrified me as I
studied enforcement is there are literally billions of dollars
of countervailing duties that are never collected because the
foreigners set up little shell companies here, we impose a
duty, there's nobody home when we come time to collect. I think
that kind of thing has to be fixed. There's not much point
going through a multiyear trade case, if then, in case you win,
you don't even collect the countervailing duties. That doesn't
change anybody's behavior, and it's a loss of revenue to the
Federal Government.
Senator Klobuchar. Thank you. And I appreciate that. I
think that's one of the reasons you just got the Steelworkers
support from Leo Gerard in a letter dated January 9.
The last thing I wanted to ask you about was Cuba. I lead
the battle to lift the embargo. I know that it's an issue in
Florida on both sides, and we, of course, have Republican
support on this bill as well. My view is 50-plus years of a
failed policy is enough. What's your position on ending the
embargo?
And then also a second related question deals with the
rollbacks. How do you think we should be rolling back any of
the existing opportunities for American air carriers'
businesses that have come about because of President Obama's
executive orders, because a lot of these businesses in America
are making plans. We have 1.5 million visitors now forecasted
from our country a year.
Mr. Ross. Well, I must make a confession, I've never been
in Cuba, so I have no firsthand knowledge. I do have quite a
number of Cuban American friends in Florida, and I notice that
it's a sufficiently complex issue that even within individual
families there are people who disagree about what should be
done. So this is one area I would like to become much more
educated in as time goes.
I am aware that Starwood and some other hotel people have
already made some deals for Cuba, so there seems to be a lot of
interest on the part of American companies in doing business
there, but I don't feel I am expert enough in that right now to
have a firm view.
Senator Klobuchar. All right. Well, we look forward to
talking with you about that. I will put in the record some
questions about broadband, the Dig Once proposal we have so
that when people are digging for utilities we make sure we lay
fiber for broadband, and also about the importance of the
foreign commercial service, and, finally, softwood lumber. But
we can leave that for the written questions.
Thank you very much.
Mr. Ross. Thank you, Senator.
The Chairman. Thank you, Senator Klobuchar.
Senator Sullivan.
STATEMENT OF HON. DAN SULLIVAN,
U.S. SENATOR FROM ALASKA
Senator Sullivan. Thank you, Mr. Chairman.
And, Mr. Ross, welcome. I appreciate your willingness to
serve and your previous service to our country. And you and I
talked about it in our meeting before this hearing, but I had
an opportunity to have a front-row seat in some ways working at
the National Security Council staff at the White House on
economic issues on what happened with the steel industry and
what you were able to do, and I think that's something that is
an important and positive part of your record. And I know that
there are thousands and thousands of steelworkers who
appreciated that.
We also had the opportunity to talk about that to me, one
of the most important issues that we can face as a Nation right
now, and that's the issue of economic growth. And as you know,
over the last 10 years, we've had a lost decade of economic
growth. President Obama is going to be the first President
never to hit 3 percent GDP growth ever in a year, almost never
hit it in a quarter. And so the Obama administration has now
said, well, that's the new normal, we shouldn't expect to hit
traditional levels of American growth, 3.5, 4 percent, 4.5
percent.
Do you agree with that, that the new normal is something
that we're achieving our full maximum potential as an American
economy at 1.5, 2 percent growth, the numbers over the last 10
years, or can we get back to traditional levels of American
growth? And if so, how do we do that?
Mr. Ross. I think we can. During the campaign, I
characterized the 1.5, 2 percent, not as the new normal, but as
the new dismal. I don't think we need to have the new dismal--
--
Senator Sullivan. So you think the narrative that's very
pervasive in Washington, D.C., that the new normal is here to
stay, this is what we should achieve, this is what we should
expect. I think it's a surrender. So you disagree with that.
Mr. Ross. I'm pretty sure that if that proves true, you
won't be seeing me much longer because the President-elect
won't put up with it.
Senator Sullivan. So how do we get to traditional levels of
American growth, 3.5, 4 percent, 4.5 percent? Which, by the
way, Democrat and Republican administrations have achieved
this.
Mr. Ross. Right.
Senator Sullivan. This has been the--that's the new--that's
the normal for America.
Mr. Ross. Well, I think--I wrote an editorial with Peter
Navarro that outlined four planks to the economic policy. One
was regulatory reform. I'm not against all regulations,
obviously, but I do think that pendulum perhaps has swung a bit
further than it should. And I believe the President will roll
back some of the regulations. I don't know which ones, but I
think he'll roll back some. And that's one of the most frequent
complaints I hear from the business community, is about
overregulation.
Second is the energy policy, both making us closer to being
energy self-sufficient because we still are a net importer of
energy, and however you look at it, that's a drain on the
economy.
Third is what we've been talking about before, helping our
balance of trade, particularly by increasing the exports. I
think if we combine each of those and just get a fraction of a
percent more growth from each, we'll get to the kinds of
numbers that you were talking about.
And last, of course, being the infrastructure. We
desperately need infrastructure, not only because of the direct
jobs it creates, but inefficient and archaic infrastructure is
itself a drain on the economy, the grid. All kinds of things
have to be fixed if we're going to be a truly competitive
economy.
Senator Sullivan. Thank you. And we want to work with you
on those four elements of getting back to the traditional
levels of American growth.
I want to talk next--and I appreciate you highlighting the
issue of fisheries and their importance to coastal communities.
You know, in my state of Alaska, employment in the fishing
industry is actually bigger than even in the oil and gas
industry. So healthy coastal communities, a well-managed
sustainable fishery--our fishery is considered probably the
most well-managed sustainable fishery on the planet--is very
important.
I have the honor of chairing the Subcommittee on Oceans and
Fisheries and the Coast Guard on this Committee. So I just want
to get your commitment that, as you know, a big part of the
Commerce Department is NOAA, is fisheries, is focusing on that
data to keep our fisheries well managed.
I just want to get your commitment to working with this
Committee, working with me, working with the Subcommittee, on
those important issues for the country, for my state, and also
on some of the personnel decisions that you'll be making, that
the Administration will be making, on having the best people
who understand fisheries, understand Alaska. You know, I like
to say we're the superpower of seafood. Almost 60 percent of
all seafood harvested in the United States comes from Alaska's
waters. So if confirmed, I would like to get your commitment to
working closely with us on those important issues.
Mr. Ross. Well, you certainly have it. And I am very
mindful of the discussion we had about king crabs coming in
from Russia as part of our trade problem. And I assure you
that, too, will be something I'll look into if confirmed.
Senator Sullivan. Thank you.
Thank you, Mr. Chairman.
The Chairman. Thank you, Senator Sullivan.
Senator Blumenthal.
STATEMENT OF HON. RICHARD BLUMENTHAL,
U.S. SENATOR FROM CONNECTICUT
Senator Blumenthal. Thanks, Mr. Chairman.
Welcome to the Committee, and thank you for being willing
to serve, Mr. Ross.
Let me begin where my colleague Senator Sullivan finished.
On the issue of fisheries, as you know, you have very
substantial authority under your emergency powers to correct
for inequities and overfishing. I would like a commitment that
you will consider using those emergency powers to address the
flow of certain fish stocks, which you and I have discussed,
from the middle Atlantic states to the New England states
without the authority to fish at sufficient quotas for the
fishermen of New England.
Mr. Ross. Right. Well, I do remember very clearly our
conversation. And I think it will be important to make sure
that quotas are allocated properly. I'll need to do research to
follow up on the indications you gave me in order to figure out
exactly where I come out on exact details.
Senator Blumenthal. This system is broken. It is broken
from an environmental and an economic standpoint. It's costing
jobs, and it is preventing the United States from using its
fish stocks, and instead, as you and I discussed, has resulted
in importing----
Mr. Ross. Right. Well----
Senator Blumenthal.--which destroys livelihoods and
economic well-being in the New England states, and I would like
your commitment that you will work with me to use your
emergency powers, but also to support legislative reform.
Mr. Ross. I'm very interested in helping balance the
payments. I'm very interested in helping the fisheries. So I
look forward to seeing the details of the suggested
legislation.
Senator Blumenthal. And I want to welcome your
modification, I'll put it somewhat delicately, of the plan that
you and Mr. Navarro submitted, or your clarification of it, to
permit other authorities like an infrastructure bank and a
public financing authority, which I think are key to the public
side of investment. And there has to be a robust public
investment in our infrastructure, taking advantage of the low-
interest environment as you very correctly suggested.
Mr. Ross. Yes, I think we're very fortunate, Senator, that
it is a low-interest rate environment where we're trying to
solve this problem. If it were a very high-interest rate
environment, the problem would be two or three times as hard to
solve.
Senator Blumenthal. Let me focus on another area where I
think you have really made a very personal sacrifice. Your
service has resulted in your divesting yourself of literally
hundreds of millions of dollars in assets so that you could
reach an agreement with the Office of Government Ethics. I
don't want to embarrass you or presume, but obviously of all of
the billions of dollars in holdings that you own now, you have
divested more than 90 percent, and you have resigned from 50
positions. The process has been enormously complex and
challenging and costly to you personally; correct?
Mr. Ross. Yes, sir.
Senator Blumenthal. And I want to ask you very directly,
shouldn't the President of the United States do the same?
Mr. Ross. Well, as I understand it, the ethics rules that
apply to Senate-approved nominees do not apply to the
President.
Senator Blumenthal. But simply as a matter of appearance
and morality for that matter, you were able to do it. Why not
the President?
Mr. Ross. I'm not familiar enough, Senator, with the
exactitudes of his holdings to have any judgment as to how easy
or hard it would be to do it.
Senator Blumenthal. You did it to avoid any conflicts of
interest; correct?
Mr. Ross. That is correct, sir.
Senator Blumenthal. You may head an agency that will have
direct authority that potentially could impact very seriously
the President's financial well-being; correct? You had, for
example, the Patent and Trademark Office.
Mr. Ross. Yes, sir.
Senator Blumenthal. The President's organization has eight
pending applications for new trademarks. His trademarks for
hotel, clothing, and real estate, could well come before the
Trademark Trial and Appeal Board. You appoint that Board;
correct?
Mr. Ross. Well, I had a discussion yesterday morning with
the current head of the U.S. Patent and Trademark Office, and I
asked her how she was feeling with the matters relating to her
former relationship with Google, and she outlined what I
thought was a very thorough process for recusal and determining
recusal, and I would intend to emulate the standard that she
has set.
Senator Blumenthal. But there is no way to avoid a conflict
of interest when the one with that interest is the President of
the United States. He is your boss; he's her boss; he is the
one who presides over the entire United States Government, and
you appoint the judges who will sit on that Appeals Board;
correct?
Mr. Ross. That is correct.
Senator Blumenthal. And so I would respectfully suggest
that that conflict of interest is inevitable so long as the
President of the United States refuses to divest himself.
Creating the trust as he has done is no substitute for complete
divestiture. I realize you can't order him to do so, but you
will be in effect put in a very difficult, if not impossible,
position as the Secretary of Commerce, who has appointing
authority and ultimately approval authority over the Patent and
Trademark Office.
Mr. Ross. Well, I am quite sure everyone will be watching
all of those matters, and, therefore, they will certainly be
subject to public scrutiny.
Senator Blumenthal. My time is expired. Thank you, Mr.
Chairman.
The Chairman. Thank you, Senator Blumenthal.
Senator Heller.
STATEMENT OF HON. DEAN HELLER,
U.S. SENATOR FROM NEVADA
Senator Heller. Mr. Chairman, thank you.
And, Mr. Ross, congratulations to you and to Hilary and to
any family member that may be here or may be watching today's
hearing. I'm grateful that you're here, and I'm grateful that
you are willing to take this upon yourself.
The article that you referred to, based on the questioning
from Mr. Sullivan, that you wrote on your four platforms for
economic growth, you mentioned regulatory reform. And I thought
about that a little bit. You said you weren't sure where the
President might be on regulatory reform or what he's going to
do the first days of office.
Not knowing that, what would you recommend to him, with
your background and experience, that would help immediately in
regulatory reform?
Mr. Ross. Well, I think what we ought to do is to try to
deal with things that really inhibit business and yet aren't
all that important, a kind of cost-benefit analysis. The part
of the CBO that reviews regulations is a very small department,
I think it has fewer than 50 employees, so many, many new
things that have been put in have never had a cost-benefit
analysis. I think the majority of them, in fact, have not. It
would be very useful to conduct that kind of analysis as part
of the process for determining which things should be rolled
back and which should be preserved.
Senator Heller. So you don't have any specific
recommendation at this point?
Mr. Ross. At this point, no. The President has not asked me
for specific recommendations.
Senator Heller. I appreciate your comments, though, on
cost-benefit analysis. I've been arguing for that since I've
been here in Congress, that any new regulation that comes out
of this Committee or any other committee should have to be run
through some cost-benefit analysis in order to be assured that
it isn't costing more than the benefits of that particular
regulation.
Let's go down to the balance of trade. You mentioned in
your four steps also. What's your process, thought process,
here on increasing trade?
Mr. Ross. A couple of things. One, in general, I think it's
easier and quicker to negotiate bilateral agreements than it is
multilateral. And my concerns about the multilaterals are not
that there is anything inherently wrong with them, but as
somebody who has negotiated a lot of transactions, I can tell
you the more complex the environment within which you're
negotiating, the less likely you are to get to a sensible
result because what really happens is several things.
Say you're negotiating with 12 different countries. You go
to the first one and you want some concession from them. They
say, ``Yes, we'll give you that concession, but we want
something back.'' So that takes a little nick out of us. Then
you go to the next country and you negotiate with them, they
take a little nick. You keep doing that 12 times, you get a lot
of nicks, and what happens is the other countries get the
benefit of things they didn't even ask for because you had to
give them to someone else. So I think that's a fundamental
concern.
Second----
Senator Heller. Mr. Ross, I hate to cut you off because I
don't have a lot of time, but am I to take from that that you
weren't impressed with TPP?
Mr. Ross. Initially, when I read the first press reports of
TPP was very favorable toward it. As I delved into the
thousands of pages of document, I came across some things that
I felt were not consistent with what had been advertised.
I'll give you a couple of examples. One is the concept of
TPP was to build a wall around the countries that were
participants, but in automotive, for example, they permit more
than 60 percent of the content of a car to come from outside
TPP and yet have all the tariff benefits. That didn't strike me
as the world's best idea, particularly from the point of view
of protecting the automotive industry because in automotive,
about 70 percent of the jobs are in the parts suppliers, not in
the OEs. So----
Senator Heller. Again, sorry to cut you off, but I only
have a couple seconds.
Mr. Ross. I'm sorry.
Senator Heller. Would that argument be that you would then
oppose a 35 percent tariff, as the President-elect has
proposed, on foreign cars?
Mr. Ross. I think that it's a complicated issue whether you
should have one flat tariff on everything or whether it should
be more tailored to the individual situations, and----
Senator Heller. Do you support tariffs?
Mr. Ross. I think tariffs play a role both as a negotiating
tool and, if necessary, to punish offenders who don't play by
the rules.
Senator Heller. Mr. Chairman, my time has run out. Thank
you.
The Chairman. Thank you, Senator Heller.
Senator Wicker has returned. He's up next.
STATEMENT OF HON. ROGER F. WICKER,
U.S. SENATOR FROM MISSISSIPPI
Senator Wicker. Thank you very much.
Mr. Ross, there has been a lot of talk about outsourcing.
Mr. Ross. About?
Senator Wicker. About outsourcing of jobs.
Mr. Ross. Yes, sir.
Senator Wicker. And we need to continue talking about that.
But the other side of that is insourcing, and I can just tell
you that in my state of Mississippi, we're tickled to death to
have Toyota, Nissan, Airbus, Yokohama Tire, building things for
the rest of the world and employing Americans right there in
Mississippi.
Of course, our states have a lot to do with recruiting
these industries, but can you highlight for us your ideas about
how to have more of this? As we try to combat outsourcing of
American jobs to other countries, how can we insource companies
like Nissan and Toyota and Airbus?
Mr. Ross. Sure. I think the best incentive for foreign
companies to come here is, first of all, we're the world's
largest markets, and so that's a big encouragement, but if we
lowered the corporate tax rate, it will be a further inducement
for them to come.
Right now, we're not competitive in terms of our marginal
tax rate with many other countries against whom we compete.
Take, for example, Mexico; the corporate tax rate there is
about half what it is in our country, and that's true in many
of the other countries. So I think if we can become more
competitive in the tax rate, it would be a very good thing not
only for keeping American companies staying here, but also for
encouraging foreign companies to come here. So I think that's
probably the biggest single tool that we could use.
Senator Wicker. OK. That's the biggest single tool. You're
free to give other suggestions.
Mr. Ross. Oh, surely. I think some degree of deregulation
would also be very, very helpful. And if we can use an energy
policy that keeps energy costs low, that would be very, very
powerful as well. So I'm much more in favor of carrots than of
sticks.
Senator Wicker. With regard to a 21st century tax structure
that puts us more in line with the modern day and gets us out
of 1986, are you involved in those discussions at the
transition level? And will you be part of writing the
administration's tax proposal?
Mr. Ross. I believe the President will be listening to some
suggestions from me, but he has a whole apparatus on tax that's
quite independent of me. But because tax is so important to
commerce, I hope that he will have some consultation with me.
Senator Wicker. Well, I think based on your answer to the
previous question, the President-elect would be well advised to
listen to you.
You've had a lot to say about infrastructure, and let me
just tell you, I hope I'm able to assist the Trump
administration in supporting an infrastructure program for the
United States of America. Infrastructure includes roads,
bridges, highways, rail. Do you consider the buildout of
broadband to be part of infrastructure? And should it be part
of the Trump administration's infrastructure plan?
Mr. Ross. I think broadband is an essential part. Broadband
is, to a very large degree, a path to the future, and I think,
therefore, it's a very essential component of economic policy
altogether, including the infrastructure component.
Senator Wicker. All right. And you're going to look around
the room here and see people from Nevada to Hawaii to
Mississippi to Nebraska, and a lot of rural folks on this
Committee. I hope you will commit to this Congress and to this
Committee that you will work with us on making rural broadband
more accessible and make the buildout more expeditious.
Mr. Ross. I certainly will try to cooperate with you. As
you know, it's the intersection of myriad policy decisions,
some of which are quite outside my control.
Senator Wicker. You're probably aware of this, and my time
has expired, but you've been around the track. There is a
second level of bureaucracy in your department. There is a
third level of bureaucracy. You're going to have to fight those
people, and sometimes you're going to have to make sure that
they understand that elections have consequences.
I want to do a shout-out to your predecessor, Secretary
Pritzker, who helped Senator Cochran and me and the Governor of
our state and the people in Mississippi who wanted to save
lives through an innovative way to put doctors in emergency
vehicles, and it took quite an effort on the part of Secretary
Pritzker to cut through that bureaucracy and make sure the law
was followed.
I hope you can show that kind of determination, too, and we
can work on a bipartisan basis with people, with my Democratic
friends, and people on our side of the aisle, too, to cut
through some of this red tape and do things like Secretary
Pritzker did in helping save lives for Americans in
Mississippi.
Mr. Ross. I'm certainly in favor of saving lives, and I'm
clearly certainly in favor of enforcing the law, so I look
forward to working with you on it.
Senator Wicker. Thank you, sir.
The Chairman. Thank you, Senator Wicker.
Next up is Senator Schatz followed by Senator Gardner.
STATEMENT OF HON. BRIAN SCHATZ,
U.S. SENATOR FROM HAWAII
Senator Schatz. Thank you, Mr. Chairman.
Mr. Ross, thank you for your commitment to serve the
public. Your predecessor successfully negotiated a couple of
very thorny issues over the last few years regarding
telecommunications: the U.S.-EU Privacy Shield and the IANA
transition. The successful negotiation of the U.S.-EU Privacy
Shield and the smooth transition of the IANA functions from the
Department of Commerce to the global multistakeholder community
were widely supported by a range of stakeholders, including the
Congress. Do I have your commitment to continuity in these
respects?
Mr. Ross. Well, as I understand it, there is no real
alternative on the table to the ICAP situation. So for the
moment, there is nothing else to consider. I'm not aware that
there's a realistic way to do anything about it.
On the privacy side of life, I think we need to balance a
couple of things going forward. The treaty, the agreements,
that exist obviously exist, but I think going forward, there
will be a tension between privacy on the one hand and problems
of localization of data and the implications that they have for
the Internet as we go forward. So I think that's going to be a
very tricky balancing act, but I look forward to consulting
with you on it.
Senator Schatz. Thank you. In Fiscal Year 2016, the NOAA
budget was about $6 billion, making up 60 percent of the
Department of Commerce's budget, but in recent years, NOAA's
budget has stagnated, as critical coastal and ocean programs
have been held level to pay for satellites. As a result, NOAA
has had to rely on aging, rundown buoys and ships to measure
high-impact global ocean conditions such El Nino events. El
Nino events originate in the Western Pacific, as you know, but
their impact is felt around the world. The data that NOAA
gathers in the Pacific using a small network of buoys is
essential for forecasting these impacts across the country.
These NOAA coastal and ocean programs are critical, but
they're not as interesting, not as expensive, as the satellite
programs that you referred to earlier. What is the strategy to
restore balance to the NOAA budget so that all of its critical
programs are adequately funded?
Mr. Ross. Well, the big capital expenditures right now are
for the satellites. As you know, there are several more that
are scheduled to be launched. And then the next biggest capital
expenditures will be to update the vessels.
As someone who has operated vessels, I'm well aware that
old vessels are quite inefficient to operate, number one. And
number two, that the technology of these research ships has
improved quite a bit in the years since those vessels were
built.
To the best of my knowledge, they actually are beyond their
depreciable life, so they're pretty ancient. As for
appropriations and finance to wrestle through, how much money
do we get altogether and how much of that gets spent on what?
But I do think that it's important to continue both the
existing service functions and meet these very pressing capital
expenditure needs.
There's a similar problem with the Census. It has been hard
getting commitments for the appropriation the Census really
needs for its mission, and that's something I hope we'll have
further discussion about as well.
Senator Schatz. I would like to follow up on Senator
Nelson's question regarding scientific integrity. As you know,
in 2011, NOAA adopted an explicit Scientific Integrity Policy
essentially ensuring independence for NOAA scientists. I'm
satisfied with your answer both in this forum as well as in our
private conversations, but just so that the record is totally
clear, do you intend to uphold the 2011 Scientific Integrity
Policy?
Mr. Ross. Well, as I've said, I believe that science is
science, and scientists should perform science. I haven't
studied the intricate details frankly of that document, so I
can't make a formal commitment to it. But as to the general
concept of scientists doing the science, I'm totally in support
of that.
Senator Schatz. Thank you. And, finally, on the question of
trying to facilitate the reaching of our goal with respect to
international visitors, and there are a lot of members of this
Committee who care very deeply about tourism, part of the role
of the Department of Commerce is not just to be a cheerleader
for that stated goal that the Department of Commerce under
Secretary Pritzker established, but to serve as a convener
because there has to be a little bit of wrangling among
departments. Some of the issues have to do with the Department
of Transportation and their throughput capacity and certainly
the Department of Homeland Security and Customs and Border
Protection.
So can we have your commitment to continue the leadership
of Secretary Pritzker in terms of convening the agencies and
working with the White House and making sure that as we deal
with all of our security and homeland security concerns, that
commerce and tourism and those national policy objectives have
a seat at the table?
Mr. Ross. Well, I know Secretary-designate Chao quite well
from some of her former incarnations, and I look forward to
working with her on stimulating tourism.
Senator Schatz. Thank you.
The Chairman. Thank you, Senator Schatz.
Senator Gardner.
STATEMENT OF HON. CORY GARDNER,
U.S. SENATOR FROM COLORADO
Senator Gardner. Thank you, Mr. Chairman.
Thank you, Ranking Member Nelson, as well as Mr. Ross, for
being here this morning. Thank you to your family for being
here. I'm all the way over here at the end, so it's--yes, I
know. Elaine Chao was here last week, and I think she actually
thought I was in the audience sitting over here. So thanks for
your willingness to serve the country and I appreciate the time
we've been able to spend together in my office.
We talked a little bit about trade and the importance of
trade in Colorado, $9 billion worth of exports from Colorado,
about half of which, $4.5 billion worth of goods, annually are
sent to nations in Asia, and half of our state's exports go to
Asian nations. Given the position of the new administration on
the Trans-Pacific Partnership, how do we make sure that we are
increasing American exports abroad? And just as importantly,
what areas, what markets, do you see as the most lucrative
opportunities for the U.S. in the next 4 years?
Mr. Ross. Well, that's obviously a very complex question,
and we discussed it some in your office. The things we're the
best at in many ways are the technologically advanced things,
and I think more research and development, more encouragement
of technological breakthrough, is clearly an important thing.
But at the same time, we need to protect our existing
industries because they really are very much labor-intensive.
And I think we also are going to have to cope with the
challenge that's combined with the opportunity of some of the
technological advances. For example, driverless cars are
probably a very good thing, they seem to be, in any event, an
inevitable thing, but that presumably will also lead to
driverless trucks. Well, there is something like 3 million
American adults who depend on over-the-road trucks for their
livelihood, and it's a pretty good livelihood. And then you
also have the shorter trip drivers as well.
So I think what we have to do is to figure out how to make
sure we get the benefits of the improved technology and yet
cope with the dislocation that it inevitably will produce in
certain of the industries. So I think that's going to be a real
balancing act.
Senator Gardner. Thank you. In my opportunities to meet
with leaders from around the globe, it's very important that we
make sure that we continue to be a leader in trade and exports
and commerce because as nations look to other nations for
leadership, as they look to economic opportunity, we need to
make sure that international norms are set on standards that we
believe are best for the world and economic opportunity. We
should not give other nations a chance to take over U.S.
leadership, which is very important because they're relying on
the United States to continue to lead.
I want to thank you for your opening statement. Senator
Rubio and I last year worked on and will continue to work this
year on evaluation of Federal spectrum holdings to make sure
that we understand the opportunity cost that having that
spectrum held and not utilized means to this country and to the
government. So thank you very much for that commitment to the
evaluation.
The National Institute of Standards and Technology has a
laboratory in Boulder, Colorado, a major campus. Of course, one
of the key areas of work that NIST at Boulder pursues is cyber
areas. It's a nonregulatory approach that NIST continues, and
that's their mission, but they do a lot of work when it comes
to cyber. I'm very concerned about our construct in government,
the way the Congress works, the way our Executive Branch works,
when it comes to understanding cyber, being fully capable of
implementing ideas that will protect both our private sector as
well as national security interests.
And so will the Trump administration--will you at Commerce
continue to--can you commit to preserving the non-regulatory
status of NIST to ensure that this work with the private sector
on cyber can continue?
Mr. Ross. Well, I think cyber, if nothing else, was a big
enough issue in the campaign that everybody is very sensitized
to it for very local reasons. But it is going to be an
increasing issue from a whole variety of directions. And,
again, it's one of these that's very complicated. You don't
want to compromise the privacy side of things; on the other
hand, you need real-world protection against people who intend
to do us harm, economic harm or military harm. So I think
that's a difficult thing that will have to be balanced, and it
wouldn't surprise me at all if that will be the kind of thing
that will come before the Congress over and over again.
Senator Gardner. Thank you. In 2015, there were estimates
in 2015 that up to $2 billion a day was lost in economic
productivity due to the West Coast ports slowdown. Labor
agreements for workers on the West Coast and East Coast ports
are scheduled for near simultaneous expiration in both 2018 and
2019 respectively, excuse me, 2019 for West Coast, 2018 for
East Coast.
In the last Congress, I introduced the Ports Act, which
would have provided Governors with the flexibility to address
slowdowns and strikes at our Nation's ports to reduce the
damage of such catastrophes.
Given how these dates are quickly approaching, and future
labor negotiations are moving, how do you plan to avoid similar
disruptions at our ports? And will you commit to making sure we
have a report on the economic impact it would have?
Mr. Ross. Well, that, thank you, is a very good and very
complex question. We have tried very hard in our commercial
activities to avoid strikes and showdown--slowdowns and things
of that sort. I think in general, those are the failure of
negotiation, and I think, therefore, the first thing is to try
to figure out, how can there be a better process for
negotiation so that we come to a resolution without this sort
of showdown at the OK Corral? I think that's number one,
preventive medicine.
Number two, that is clearly much more in the province of
the Labor Secretary than it would be Commerce. We will be
interested observers, and given that we've had a history with
successful work with Labor, to the degree that they want, I
will be glad to give my thoughts on how to try to help.
Senator Gardner. Thank you, Mr. Chairman.
The Chairman. Thank you, Senator Gardner. That is an
important issue because it affects the supply chain. Everybody
was very much impacted by that incident a year ago.
Senator Peters is up next.
STATEMENT OF HON. GARY PETERS,
U.S. SENATOR FROM MICHIGAN
Senator Peters. Thank you, Mr. Chairman.
And, Mr. Ross, welcome to the Committee. I appreciate the
time that we spent in the office together talking about a
variety of issues, and certainly one thing that I was very
pleased to hear was your extensive knowledge of Michigan and
the industry there from the work that you did with the steel
industry as well as automotive sector and other industries
there.
And I am particularly pleased as well with the comments
that you made in regard to a question from one of my colleagues
here related to TPP and the impact that the TPP would have on
the auto industry, a very negative impact, in particular, with
the suppliers in that industry. It would have had a devastating
impact on jobs. And it's not about protecting the auto
industry; this is just about having fair rules where we treat
the auto industry and the workers in America fairly with
others. And we know we can outcompete anybody as long as the
rules are fair, and I appreciate your stance on that and your
comments.
And along those lines, I wanted to address something that
is critically important, which is enforcement. If we're dealing
with any kind of rules, whether they're trade deals or the
legal authority under the WTO, certainly the administration
will play a vital role. In fact, you, if confirmed as the
Secretary of Commerce, will play a vital role in enforcing
those rules.
And under current law, the Secretary can self-initiate
anti-dumping and countervailing duty investigations. However,
the use of this tool under previous administrations, I'm sad to
say, has been virtually non-existent. In fact, I think the last
time was in the 1990s. It's been a long time since the Commerce
Department has self-initiated these types of investigations.
And normally we only have investigations that are initiated
after a formal complaint by an industry. You know firsthand
about that from your work in the steel industry. And that's a
very imperfect process. Usually, it's large companies with
high-priced lobbyists that get noticed and get action in the
Commerce Department, but if you're dealing with small-and mid-
sized businesses in Michigan and other states around the
country, they don't have the resources, and the impact of
unfair trade practices often goes unnoticed and unfortunately
not investigated.
If confirmed, will you be more aggressive and commit to
using your legal authority as Secretary to enforce the rules
protecting against unfair trade practices and self-initiate
anti-dumping and countervailing duty investigations?
Mr. Ross. As we discussed, Senator, when I was in your
office, I'm an activist, and I think that that tool of self-
initiation is a very useful one for several reasons. One is the
one you mentioned. Industries that have a lot of small
companies, it's very hard for them to get the data together, to
get the funding together, and worst of all, it takes a very
long time for them to initiate a case.
I think the duration of these cases has got to be
shortened, and anything we can do to shorten it at the front
end would be good. Self-initiation is a very good tool for
that, and I think it's a good tool in another regard in that,
to me, part of any negotiation is the psychology of the
participants. And to the degree that we show them we're willing
to self-initiate, that's a more aggressive stand on cheating
than perhaps has been exemplified before.
So I think it's important both from its actual curative
effect, its preventive effect, and the psychological effect on
the cheaters.
Senator Peters. Well, I appreciate that answer, Mr. Ross.
And I guess the pushback that we have had from previous
administrations as we have attempted to do this is that they
have said that they lack some of the resources necessary.
That's why I've led efforts to fund the Interagency Center on
Trade Implementation, Monitoring, and Enforcement, which is a
mouthful, but what they do is assist our efforts in trying to
get the self-initiated enforcements. So I would hope that I can
enlist your support with bipartisan support here in Congress to
provide resources necessary to do that critical function.
Mr. Ross. We would welcome more resources.
Senator Peters. Great. Great. Final question, as my time is
expiring here: The issue of outsourcing is a critical concern
as we continue to see American jobs go overseas. And I know you
are committed to trying to stem that tide and bring jobs back
and keep the jobs that we have. But what I have found is that
it's often difficult to get information as to what jobs are
actually being outsourced, where jobs are being created.
Companies and others will report that they are hiring workers,
but we don't know where those workers necessarily are. We find
that the information regarding outsourcing is opaque,
incomplete, and often entirely inaccessible. Will you, as
Commerce Secretary, commit to work with Congress to develop
some new corporate transparency measures that will allow us to
have that information so that we can make sure our policies are
actively addressing the problem of outsourcing?
Mr. Ross. Well, I have a very heartfelt saying in
management that anything you can't measure you can't manage. So
that's one of the things that's good about the Commerce
Department, it has all kinds of measurement activities. And I
was not aware that this was a particular problem, but certainly
understanding the parameters of problems helps you figure out
how to deal with them. So I look forward to further discussions
with you.
Senator Peters. Great. Thank you.
The Chairman. Thank you, Senator Peters.
Senator Cortez Masto.
STATEMENT OF HON. CATHERINE CORTEZ MASTO,
U.S. SENATOR FROM NEVADA
Senator Cortez Masto. Thank you.
Welcome, Mr. Ross. It's nice to meet your wife as well. And
I want to thank you for taking the time to meet with me, and I
thought we had a good conversation.
I want to follow up on some of the comments that you've
made just to put it on the record. I suspect, based on our
conversation, I know where you stand on these, but when it
comes to tourism in Nevada, it's obviously a very important
issue. Most people don't realize, but just in 2016 alone, there
were approximately 43 million visitors to Southern Nevada. This
injects $45 billion into our economy, and actually provides
good-paying jobs for 400,000 Nevadans.
So something that's very important for Nevada is Brand USA.
And we've talked about this, and I just want a commitment. Are
you committed to supporting Brand USA as it fits into your
strategy to promote travel and tourism?
Mr. Ross. Everything I've heard about Brand USA is that
it's been positive and that it's been helpful. So in the
absence of some sort of contrary information, it sounds to me
like a pretty good idea.
Senator Cortez Masto. Great. Thank you. Along those lines,
the Survey of International Air Travelers is a primary research
program which gathers statistical data about air passenger
travelers in the U.S. overseas, and U.S.-Mexican air markets.
And the Survey data provides information on passenger trip
planning, travel patterns, demographics, and spending. It is a
survey that is used to analyze visitor segments, and it is used
by the Convention Authority in Southern Nevada and all industry
groups, and they use the data directly as part of their
marketing plans. Will you commit to expanding the scope and
size of the Survey of International Air Travelers so that
industry can better target their marketing campaigns and
attract more tourists from around the world?
Mr. Ross. As I've said, Senator, I'm in favor of the idea
that you can't manage things that you don't measure, so we need
measurement of those kinds of data.
Senator Cortez Masto. Thank you. And I appreciate that
because I'm a big proponent of data analytics, and I don't
think we do enough of that particularly in government.
A part of your role will be overseeing the Minority
Business Development Agency. I think the small businesses in
the country, this country, are the backbone of our economy, and
particularly in Nevada there are over 230,000 small businesses,
many of them owned by Latinos, Asians, and African Americans.
One thing I find after talking to small businesses is the
lack of access to capital, particularly access to capital for
small, minority-owned businesses. We haven't had a discussion
on this. I'm questioning your thoughts on promoting and
continuing to support minority-owned businesses, not only in
Nevada, but across this country.
Mr. Ross. I've been a supporter of minority-owned
businesses. In fact, at the International Automotive Group, we
have had a number of joint ventures with minority-owned
businesses in the auto parts space, and I think they can be
done very, very well, and they help develop leadership within
those communities so that they can go on and do independent
businesses on their own. And I think the automotive industry
has been relatively a leader in fostering minority business
development.
Senator Cortez Masto. So can I get your commitment? I know
the Minority Business Development Agency has business centers
around the country. I think they're underfunded. I think they
need more resources to work with our small businesses. Will you
commit to looking at that funding and continuing to support
those centers?
Mr. Ross. Well, as I explained to you, I very much like the
idea. I'm not intimate enough with the details of it yet to
know exactly what it needs, but the idea I certainly support.
Senator Cortez Masto. Thank you. And then, finally, we've
talked about this as well. Many major U.S. corporations are
taking a public stance in supporting immigration reform efforts
because we know that passing immigration reform will contribute
to our economy. And I know in our private meeting we talked
about this, and you said you were open to anything that will
stimulate the economy. That is our job at Commerce.
So a question for you is, can you commit today to
supporting a comprehensive immigration reform package with a
pathway to citizenship for undocumented immigrants that would
be positive for the economy and stimulate job growth?
Mr. Ross. Well, as I said when we were together, anything
that stimulates the economy in truth, I would be in favor of.
Senator Cortez Masto. Thank you. Mr. Ross, thank you so
much. And again congratulations on your nomination.
Mr. Ross. Thank you very much, Senator.
The Chairman. Thank you, Senator Cortez Masto.
Next up we have Senator Johnson.
STATEMENT OF HON. RON JOHNSON,
U.S. SENATOR FROM WISCONSIN
Senator Johnson. Thank you, Mr. Chairman.
Mr. Ross, I'm over here where Senator Gardner was. First of
all, thank you for being willing to leave your life in the
private sector and serve our Nation here. I truly appreciate
that.
To me, our number one priority has to be to grow our
economy, to make sure that we realize the full potential of
this marvel we call the American economy. What do you believe
is the growth potential of the American economy? Do you have
kind of a figure in your head?
Mr. Ross. Well, I think we can certainly get north of 3
percent growth if we do all the elements of the President's
program.
Senator Johnson. By the way, that has been the average
since the Great Depression, about 3.2 percent to the American
economy. So I would hope that's a minimum goal.
You know, from my standpoint, there are four main reasons
we're not achieving that full potential: overregulation;
completely uncompetitive tax system; we're not using our energy
resources; and the fourth I often don't list because there are
so many lawyers here, tort reform.
Can you talk about, from your perspective, maybe you've got
other ones, I know you're talking about expanding exports, but
what do you think are the primary reasons, and kind of expand
on the answer if you would, that we're not realizing the full
potential of our economy?
Mr. Ross. Well, I wrote an editorial that outlined the
four, what I think are the four, or five key planks: regulatory
reform, not just wildly abolishing all regulation, but doing
cost-benefit analysis and having sensible regulation; second,
improving our trade balance, particularly by stimulating
exports; third, having an energy policy that takes advantage of
our natural resources and keeps energy prices low; fourth, an
infrastructure program that's a sensible one that leads to more
efficiency in the economy and a better capability for dealing
with the new technologies as they come through. I think if we
do all those and we have a sensible tax system, I think the
economy will do very, very well.
Senator Johnson. Talk about your plans or what you would
think would be best suited toward stimulating exports.
Mr. Ross. Well, I think the first thing we have to do is to
deal with the unfair both tariff and non-tariff trade barriers
that other countries impose on us. It's a little weird that we
have very low tariffs, and that China has very high tariffs.
That seems to me to be a bit of an imbalance. And it's one
thing to talk about free trade; we would like to have our
trading partners also practice free trade and do it in a more
balanced manner than has been done at present.
So I think a lot of what we need is elimination of
inappropriate and, in most cases, improper trade barriers to
us. I think American ingenuity, American management, and
American labor can compete very, very effectively if it's a
fair fight. In a lot of cases, it's not a fair fight.
Senator Johnson. Talk about the non-tariff trade barriers.
You talked earlier about we have to adjudicate those claims in
a far more rapid fashion. But specifically talk, prioritize and
rank, how harmful the non-tariff trade barriers are.
Mr. Ross. Well, take, for example, automobiles. Some
countries with whom we've had treaties agree to lower the
tariff, but then they'll suddenly say, ``We have a different
environmental standard for cars than what you have, and, ha-ha,
your cars don't qualify as environmentally correct in our
country.'' I can't imagine that there is anything that our
environmental requirements have missed that other countries
have found. So it's clearly just a device to make it more
difficult for American companies to have to tailor-make cars
for that market. So that's one example.
The famous debates over mad cow disease I think are another
very glaring example. I eat quite a lot of beef, and as far as
I know, I don't have mad cow disease, although some people
think applying to be Secretary of Commerce is a sign that
perhaps I do.
[Laughter.]
Mr. Ross. But leaving that aside, it's hard for me to
imagine that there is any legitimacy to saying that our beef
shouldn't be exported to wherever. If it's good enough for
Americans to eat, it ought to be good enough for foreigners to
eat. So I think those are a couple of glaring examples.
Other ones are inordinate delays at the ports for undue
inspections delaying products getting in, just harassing the
export process in general. There are myriad, myriad ways, and
as you can gather, I'm quite familiar with a lot of the tactics
because I've been a personal victim of them.
Senator Johnson. So your approach would be to simply target
those abuses.
Mr. Ross. Yes, sir.
Senator Johnson. OK. Thank you, Mr. Ross.
Thank you, Mr. Chairman.
The Chairman. Thank you, Senator Johnson.
Next up we have Senator Hassan.
STATEMENT OF HON. MAGGIE HASSAN,
U.S. SENATOR FROM NEW HAMPSHIRE
Senator Hassan. Thank you, Mr. Chair.
And, Mr. Ross, congratulations on your nomination.
Mr. Ross. Thank you, Senator.
Senator Hassan. And I'm sorry, we have two hearings going
on at the same time, so we're back and forth. And I wanted to
thank you again for coming to my office and meeting with me.
I wanted to touch on just about three issues. The first is
small business. New Hampshire has been rated the best state for
business friendliness in the country, and many of the
businesses in New Hampshire are small businesses. In fact, the
majority of them are.
During our meeting, you emphasized that one of the
Department of Commerce's main roles in finding ways to help
small businesses is to help small businesses find ways to grow
and be able to export their products. In the most recent
monthly report from the Export-Import Bank, New Hampshire
businesses and small businesses financed almost $800,000 in
exports from New Hampshire.
How will you coordinate and work with other departments and
administrations, such as the Small Business Administration and
the EXIM Bank, through existing or new collaborative programs
to achieve these goals?
Mr. Ross. Well, I believe that we need some mechanism that
helps finance exports. All the other countries around the world
have one. I know there have been some individual criticisms of
various aspects of EXIM, but I think the idea of some sort of
financing tool, particularly for small businesses, is really
important. If you're a little manufacturer somewhere in the
Heartland and you've never exported, just trying to figure out,
``How do you get letters of credit so that you can really do
the business?'' can be daunting.
And I think that part of the Department of Commerce, with
its field offices, needs to be even a better outreach to the
small business community to say, ``Yes, we know it's a big
challenge. We're here to help you. We'll help you figure out
the letter of credit.'' Because however good their product is,
if they're not able to work out things like letter of credit,
they're not going to export.
And I think it's tragic that only a couple percentage
points of all American businesses ever export anything. That
can't be the best solution and it can't be the right solution.
Senator Hassan. Thank you. I wanted to talk a little bit
about what the Department and we can all do to help innovation-
based companies. In Manchester, New Hampshire, we have
businesses like Scribe Software and Retrieve Technologies,
SilverTech, and Dyn, and it's really helping position our
largest city as one of the top emerging areas for tech jobs in
the country.
So how can the Department of Commerce on its own and with
other organizations support innovation-based new and young
businesses and really help them grow?
Mr. Ross. Well, I think we need to outreach. There are also
private sector enterprises, like the National Association of
Manufacturers, which has some 14,000 mostly smaller companies
as members. I'm very grateful that they are one of the groups
that has endorsed my nomination for Commerce, and I intend to
work very closely with them because I think they have very many
of the similar objectives to what you and I discussed in your
office.
Senator Hassan. Great.
Mr. Ross. And there are other groups similarly. The state
development agencies can also be useful things because more and
more states have export development agencies, not just those to
attract factories to their locales.
Senator Hassan. Great. Thank you. Third, and I know a
couple of the other Senators have touched on the issue of
fisheries this morning. I just wanted to touch on a New
Hampshire-specific issue.
The work that NOAA does is so important, and I look forward
to working together with them in the future. It provides
essential and sometimes life-saving information and services,
weather forecasts, severe storm warnings, climate monitoring.
But in New Hampshire, we have a particular issue. We have
almost, if not exclusively, a small boat fishing industry. The
industry is more sensitive to changes in the fee structures
prescribed by NOAA than many. And in the new rules, NOAA has
said that fishermen will have to pay for at-sea monitors, which
in New Hampshire is costing small boat fishermen as much as
$700 a day, and it's just not sustainable.
So in 2016, NOAA agreed to pay 85 percent of that cost, but
in 2017, unless we do something about it, that cost is going to
shift back to our fishers unless another agreement is reached.
So how would you approach negotiations with small businesses
and industries in this and other situations similar to this?
Mr. Ross. Well, as we discussed, it's really a question of,
how can we set up the least expensive mechanism for assuring
that people are adhering to the rules?
Senator Hassan. Yes.
Mr. Ross. And usually putting in technological devices is a
net saver of costs. It sounds in this particular case like it's
the reverse. So I would look forward to researching that and
trying to figure out, how do we accomplish the necessary
objective of enforcement without putting undue hardship on the
small boat fishermen?
Senator Hassan. Thank you very much. And again thank you
for being here this morning.
The Chairman. Thank you, Senator Hassan.
Senator Udall has returned, he's up next. And then I have
Senator Lee.
STATEMENT OF HON. TOM UDALL,
U.S. SENATOR FROM NEW MEXICO
Senator Udall. Thank you very much, Mr. Chairman.
And, Mr. Ross, I want to welcome you today and thank you
for your willingness to serve. I appreciated meeting with you
in my office earlier this month. And you have an extensive
business background that spans numerous industries. This
experience should prove useful to you at the Department of
Commerce, where you will lead a diverse collection of agencies.
Commerce does everything from forecasting the weather to
managing Federal use of wireless spectrum. But the common
thread is promoting job creation, economic development,
sustainable development, and improved standards of living for
Americans. So I certainly want to work with you to ensure that
the Commerce Department meets those goals in my home state of
New Mexico.
I would like to follow up today on some of what we've
discussed in my office earlier this month.
First, Mr. Ross, you are reportedly going to be taking a
big role on in renegotiating trade agreements in international
trade policy. The President-elect and his family have a wide
variety of assets around the world that other countries could
seek to use as leverage with the U.S. in negotiations.
If confirmed as Secretary of Commerce, you are committed to
divesting your assets, a major undertaking. Would it make your
job negotiating international trade issues easier if the
President-elect did as you are doing and divested his financial
holdings to avoid any complications?
Mr. Ross. I made the decision that I did because I thought
and agreed with the OGE that this was the right thing for me to
do. As I understand it, the rules are different as they apply
to the President, and I think it's for him to judge what is the
appropriate disposition or non-disposition of his assets. I'm
not intimate enough with the details of his holdings to even
have a clear understanding of just how extensive they are,
although I know they are quite huge. So I think that's really a
personal decision that he'll have to make.
Senator Udall. Mr. Ross, but you understand that his
businesses are in many countries; the Trump Organization is all
over the world, and this could raise some real conflicts for
you in terms of doing your job. Will you commit that you will
notify this Committee if another country offers incentives or
threatens consequences to the Trump family or Trump
Organization's assets in the course of your international trade
negotiations and efforts to promote exports?
Mr. Ross. Well, anything that interferes with my job is
something that I will have very little tolerance for if I'm
confirmed. That I can assure you of.
Senator Udall. And will you commit to report to this
Committee--that's kind of a yes-or-no answer--if another
country offers incentives or threatens consequences to the
Trump family or the Trump organization assets in the course of
doing your job and working on trade?
Mr. Ross. Well, certainly if they threaten me, I would be
able to make people aware of it, but the hypothetical that
you're posing might very well be something I'm not even aware
of. So that would make it very difficult to inform anyone of
anything.
Senator Udall. Well, I'm talking about if in the course of
doing your job----
Mr. Ross. Right.
Senator Udall.--and working on trade negotiations somebody
comes to you with either a threat or incentive that involves
the Trump Organization, would you let us at this Committee know
that that was happening?
Mr. Ross. Well, I'll tell you two things. I know the
President-elect quite well, and I think people who threaten him
or offer inappropriate things will find he doesn't take that
very lightly. There will be a very strong response on his part,
quite independently of anything I would do.
Senator Udall. Well, I'm urging you to try to let us know
if that situation comes up because I think it's very important
in terms of the objectives of your Department to make sure we
keep those conflicts out.
Now, Mr. Ross, Democrats understand a lot of the
frustration about trade that President-elect Trump campaigned
on. During my time in Congress, I've supported some trade
agreements and opposed others that I believed hurt American
workers and chipped away at environmental protections. For
example, I voted against permanent normalized trade relations
with China and more recently came out in opposition to the
Trans-Pacific Partnership.
My question really is, will the Trump administration use
TPA to pass trade deals without amendment from Congress, which
really cuts our constituents out of this and cuts Congress out?
Mr. Ross. Well, that is certainly a decision the President
would have to make. If confirmed, I don't believe I would have
the unilateral power to make that decision. That's something
that would be at the Presidential level, and I'm sure he would
take into account whatever considerations he could under the
prevailing facts at that particular point in time.
Senator Udall. Do you personally support the use of TPA for
trade deals?
Mr. Ross. I think you need to assure your counterparty that
there's a reasonable and quick process for solving the
negotiations. So far, TPA is the law of the land, and until
there is some specific alternative proposed, I don't think
there is any real alternative to it.
Senator Udall. Thank you for your courtesy.
Sorry, Mr. Chairman, for running over a little bit there.
The Chairman. Thank you, Senator Udall.
Senator Lee is up next.
STATEMENT OF HON. MIKE LEE,
U.S. SENATOR FROM UTAH
Senator Lee. Thank you, Chairman Thune.
And thank you, Mr. Ross, for being here today. I look
forward to our conversation. I've enjoyed hearing your
responses to questions asked by my colleagues. And I enjoyed
meeting with you last week as well.
Throughout the 2016 election cycle, we heard a lot from
President Trump about our country's approach to international
trade and about the fact that international trade generally,
and, in particular, international trade agreements, have
culminated in things that Mr. Trump insisted were negative
consequences to American workers and to the economy.
He stated that he would have the Secretary of Commerce, the
person holding the seat that we're now considering you for and
that you will hold if you're confirmed, along with the U.S.
Trade Representative to, quote, identify all foreign trading
abuses that unfairly impact American workers and direct them to
use every tool under American and international law to end
those abuses immediately.
I certainly believe that our country should not accept any
trade deal or any practice under any trade deal that unfairly
harms Americans. And for similar reasons, I also think that we
should be cognizant of the fact that any action we take in
retaliation, whether through retaliatory tariffs or otherwise,
can also bring about a set of circumstances that could be
adverse to the American people, some unpleasant consequences.
There are some risks that have to be taken into account where
you have to wonder whether in some cases the medicine might be
worse than the underlying ailment for which the medicine was
administered.
So I would ask you, if you're confirmed to this position,
as you're considering in that position a particular trade deal
or a particular action to be taken relative to trade, will you
take into account the potential retaliation on American
consumers and American supply chains what spillover
consequences these might have and take those into account in
making the decision?
Mr. Ross. Well, surely. Having been part of those supply
chains, I have some fair understanding as to how they work and
how they're essential.
But on the topic of retaliation, my mindset will be that of
a world's largest customer dealing with his vendors. I view
these other countries with whom we have trade deficits as our
vendors. And while you need to treat the vendors with respect,
they must also treat you as their largest customer, both with
respect and, more importantly, playing by the rules of the
road. And to the degree they don't, it must be enforcement
because we are a country of the rule of law. Some of these
other countries are instead the law of the ruler. That's an
asymmetry that permeates all kinds of sectors of their
economies and ours, and we need to deal with that.
Senator Lee. Thank you. I appreciate your commitment to
that, to the rule of law. It absolutely is important. It's been
a key part of why our economy has been so successful and a key
part of what makes us competitive in the global marketplace.
And I appreciate your willingness to consider those potential
spillover effects.
You know, as you know, Article I, Section 8, the very first
clause of Article I, Section 8, where most of Commerce's powers
are outlined, gives Congress the power to set tax rates, among
other things, to lay and collect taxes, duties, imposts, and
excises, and the third clause of that same section also gives
Commerce the power--Congress the power to regulate Commerce
with foreign nations in between the states.
Do you believe that Congress should have a role in
determining trade policy? And will you commit to work with us
and to consult with us before taking any action on your own?
Mr. Ross. Well, I certainly believe it has to be an
interactive process between Congress and each of the
departments. And I see no reason that I would deviate from that
practice.
Senator Lee. In the final seconds I have, I just want to
note I appreciate your willingness to look at spectrum, to take
a look at the spectrum that the Federal Government currently
holds and to look at areas where we might be able to release
some of that federally held spectrum that will help us address
some real significant needs that we have in rural states and
states like mine, like the state of Utah, where we could
benefit from it.
I see my time is expired. Thank you, Mr. Ross.
Thank you, Mr. Chairman.
The Chairman. Thank you, Senator Lee. And ditto on the
spectrum issue.
Next up is Senator Young.
STATEMENT OF HON. TODD YOUNG,
U.S. SENATOR FROM INDIANA
Senator Young. Thank you, Chairman.
And, Mr. Ross, thanks for your interest in serving here in
this capacity. I enjoyed our visit some days ago.
And I would like to begin by asking you a question about
the steel industry. In my state of Indiana, the steel industry
employs directly roughly 25,000 Hoosiers, and I routinely hear
from those individuals, their families, members of their
community, that they have concerns about the market-distorting
practices from the Chinese government, something that may have
come up earlier today in the midst of my other two confirmation
hearings.
This overcapacity issue that threatens numerous Hoosier
manufacturing jobs is one that has really come to the fore over
the last 8 years. And the incoming administration has routinely
pledged to fight very hard on behalf of American workers.
They've indicated the Department of Commerce would have an
expanded role in advocating on behalf of fair trade practices.
Could you please elaborate on your plans to push back
against unfair trade practices from China and other steel-
dumping countries?
Mr. Ross. Yes. I'm glad you point out that it isn't just
China, and part of my feeling is that China is the largest but
by no means the only problem in that regard. There is a global
problem of overcapacity, but it's mainly focused in China.
And an interesting fact in terms of the question of
government subsidy, there are some of the state-owned
enterprises, something like a third of them, have never made a
profit, they keep--they're being kept alive by the state-owned
banks. To me, that looks and feels and tastes a lot like
artificial subsidy.
So I think we need to be very sophisticated in the way we
look at the forms of subsidy. It isn't just things like VAT and
it isn't just things like that, it's all kinds of intricate
corporate relationships, many of which have not really been
attacked before. I think we will be very scrupulous if I'm
confirmed at dealing with those issues.
Senator Young. Well, that's very encouraging. We don't want
to jump to conclusions too quickly. One is very quick when
prices rise, to charge monopolistic pricing; when prices are
the same level roughly, they charge parallel pricing; and when
a competitor has undercut us, we often say that dumping is
going on. So we want to make certain that we are sure that's
what's occurring, but at the same time, we want to act, and we
want to act boldly. And I hear your commitment to do that here
today.
Indiana is home to many auto manufacturers that have global
supply chains, something that was just invoked. For example,
GM's assembly in Roanoke employs nearly 4,000 Hoosiers. Subaru
in Lafayette employs 5,000; Toyota in Princeton, roughly 4,500
Hoosiers. Then we have a whole distinct recreational vehicle
industry up near Elkhart.
So these jobs provide Hoosiers with a secure middle-class
income at a time when a lot of people are anxious about their
ability to land those jobs and to keep them. Can you reassure
the tens of thousands of Hoosiers, autoworkers and others,
whose jobs rely on free trade, that their livelihoods will not
be put at risk by restrictive tariffs which might interrupt
these global supply chains?
Mr. Ross. Well, as I've said quite often publicly, I think
the best way to deal with the trade deficit is increased
exports. I think that's the A number 1 priority. B, number two
is to get the Toyotas and other companies like that to build
their factories here so that workers do have not only continued
employment but enhanced employment. And I think with the right
tax policies, regulatory policies, and other policies, we can
accomplish that.
Senator Young. But it's your goal with respect to tariff
policies that you consult with others in the Administration----
Mr. Ross. Well, I----
Senator Young.--for there to be no interruption to those
Hoosiers, tens of thousands, who are currently employed in the
auto industry and other industries who reply upon global supply
chains.
Mr. Ross. Well, I well understand that, having been part of
it----
Senator Young. Yes.
Mr. Ross.--I very well understand it. Tariffs do have a
useful role. They do have a useful role in correcting
inappropriate practices. They also do have a useful role as a
negotiating tool. I'm keenly aware of Smoot-Hawley and the
effect that it had on trade in general and our trade in
particular, and if there is nothing else, we can learn from
history that that kind of approach didn't work very well, and
it didn't work very well then, and it very likely wouldn't work
very well now.
Senator Young. I'm encouraged that those historical lessons
will inform your practices as the next head of the agency.
Thank you.
The Chairman. Thank you, Senator Young.
Senator Duckworth is up next? Are you ready, Senator, or
would you like us to----
STATEMENT OF HON. TAMMY DUCKWORTH,
U.S. SENATOR FROM ILLINOIS
Senator Duckworth. Thank you, Mr. Chairman. We had some
microphone issues. There we go.
Mr. Ross, congratulations on your nomination, and thank you
so much for visiting with me last week to discuss the issues
that are so important to Illinois' workers and our economy.
When we met last week, I think we had common cause in our
shared conviction that rule breakers should be held
accountable, and if those rules are set by the international
trading system, then we should exercise our rights to enforce
those rules and penalize the rule breakers.
And we talked at length about the impact illegal steel-
dumping has had on our Nation's economy, and particularly in
Illinois, where it has contributed to over 2,000 Granite City
steelworkers getting laid off, through no fault of their own,
just days after Christmas a couple years ago.
I've been pushing for stronger enforcements against
violation of trade laws that make it difficult for American
manufacturers, including steel, to compete. Will you work with
me to crack down on currency manipulation?
Mr. Ross. Yes. I think currency manipulation is just
another device, another non-tariff barrier, that countries use
to attack our economy.
Senator Duckworth. How would the Commerce Department plan
to make enforcement of trade laws a priority, and here I'm
talking about timely enforcement, before workers have lost
their jobs?
You and I spoke a little bit, and I told you the story of
U.S. Steel in Illinois, where because of illegal dumping of
foreign steel, they had to cut down production and lay off all
of those workers. And the steel company itself that was going
into bankruptcy had to take on the responsibility of bringing
the case to the international court system. That is, I feel, an
unfair burden on these companies that are already suffering
from the currency manipulation, the dumping of products, by
competitors. At the same time, their competitors abroad don't
have to take on that burden. Can you speak a little bit more to
this process?
Mr. Ross. Yes. As we discussed, Senator, I like the idea of
occasionally using self-initiation by the Department of
Commerce to bring these cases. It will shorten the duration of
the preparatory time, and if we're also stricter about not
granting extensions to the perpetrators. Historically, the
people who have been the dumpers refuse to comply on a timely
basis with requests for information. I'm not going to look--if
confirmed, I would not look very kindly on the perpetrators
deliberately delaying cases by not providing information.
Senator Duckworth. You had mentioned the potential in our
meeting for having a special liaison in your office or someone
who would work to be the point person--and you can correct my
phrasing--for bringing forth these cases when American industry
is being unfairly burdened so that it's not on the shoulders of
U.S. Steel to bring the case to the international court system.
But they would have someone in Commerce who is already looking
out and able to be that point person.
And can you talk about how you would set up that, I don't
know if it's a person or an office, what the relationship would
be to you as Secretary?
Mr. Ross. Right. Well, first of all, we're not going to
self-initiate every case, we don't have the staffing to do it,
but I think by picking strategic cases and initiating them, it
will, A, send a message to the people on the other side that
we're getting more serious about this; second, it would
definitely accelerate the process. And, therefore, I'll figure
out some way, if confirmed, to allocate people power to that
activity. It will be a much more important activity if I'm
Secretary of Commerce than it had been historically.
Senator Duckworth. Thank you. I think for the families of
those steelworkers, time is of the essence. They're the ones
who are missing mortgage payments. They're the ones who now
have to tell their children, ``You can't go back to college
because we can't afford tuition.'' They're the ones who are
about to lose their homes. So anything that we can do to speed
up that process for any of America's industries, not just the
steelworkers.
I would like to shift a little bit and talk about the
Minority Business Development Agency. What new support will you
give the MBDA to answer the growing call for a larger footprint
of services so more minority businesses can grow through M&A
and high-tech opportunities?
Mr. Ross. Well, I think it's an essential thing because
those are some of the industries of the future. I think what we
will need to do is to find people who have the technological
capabilities. And as you and I discussed, one of the problems
is our educational system is stinting on STEM--science,
technology, engineering, and math courses, and we're also
stinting on vocational training.
So one of the problems is there is a lack, particularly in
some of the minority communities, of the capabilities to do
that. And that's a very serious problem. We can hope to cope
with some of that with apprenticeship programs. We, as a
country, are the worst in the OECD on having apprenticeship
programs. We're also the worst on having vocational training.
So I think we have to have an overall approach to solving
the problem of making sure that people are qualified to do the
technological innovation.
Senator Duckworth. Thank you. And if there is a second
round of questions, I will definitely be asking about what you
are going to do for existing minority-owned businesses today.
I'm out of time, Mr. Chairman.
The Chairman. Thank you, Senator.
Mr. Ross. Well, the entity within Commerce, I have been
told, has done a pretty good job. I hear reports that people
are pretty satisfied with what it's been doing, but there is
always more that you can do to be more aggressive in helping.
So I will work with the staff of the MBDA to try to figure out
how we can most sensibly expand those activities.
The Chairman. Thank you, Senator Duckworth.
Mr. Ross, I would defer to you on this, in terms of when,
if you would like a break. We have a number of Members to get
to in the first round, and a couple who would like to ask
questions in a second round. So I assume at some point you
would want to take a break, but I'll--whenever that point
occurs----
Mr. Ross. Well, I could go another 10 minutes, sir.
The Chairman. OK. We have in order right now Senator Booker
and Senator Fischer.
STATEMENT OF HON. CORY BOOKER,
U.S. SENATOR FROM NEW JERSEY
Senator Booker. Mr. Chairman, as always, I would defer to
Senator Fischer on anything. So if she would like to go first,
I can go second.
Senator Fischer. No, no, you were here before me.
Senator Booker. Thank you very much.
Mr. Chairman, thank you.
Mr. Ross, it's very good to see you. Thank you very much
for taking time to come and sit with me. I know it's an
expected gesture, but it meant a lot to me, and I appreciated
our conversation.
I want to start with the first issue I started with when
you came to my office, and that's the issue of infrastructure.
In last week's hearing with the Secretary of Transportation
nominee Chao, she told me that she believes that President-
elect Trump's $1 trillion infrastructure package will include
direct Federal spending.
While I know you and I talked about the totality of the
picture in my office, the report that you co-authored for the
campaign really only talked about tax breaks to private
investors. You and I both know there are many ways to invest in
projects, especially those, as we discussed, that don't have a
clear obvious revenue stream, especially those that often
affect people in rural areas, people in poor communities,
people that often need critical infrastructure to live healthy
lives to be able to pursue happiness, life, and their liberty.
Your report says, rightfully, that there are about 2,000
additional water systems with excessive levels of
contamination, including those that serve our schools and day
care centers. Do you agree that repairing and rebuilding water
infrastructures in places like Flint and Newark, where
residents cannot afford utility rates, requires direct Federal
spending, especially given the consequences to the development
of children who have elevated blood lead levels, which are not
lead poisoning, but just elevated blood lead levels, which are
directly correlated to poor performance in school, a lack of
executive function. For the most important economic agents in
our Nation, lead undermines their success and contributions in
the economic marketplace.
Mr. Ross. Well, those situations, it seems to me, are a
matter of public policy, and that will take cooperation between
the Congress and the President to solve. The infrastructure
paper that I put out, as you know, Senator, was meant to
provide another tool, not to be the be-all and end-all. And I
certainly think there's a role for the Federal Government to
play, just as there is for state and local government to play,
in dealing with some of these critical infrastructure needs of
communities.
Senator Booker. So I appreciate that. And just succinctly
then, you support direct spending by government on
infrastructure.
Mr. Ross. I think there will be some necessity for it.
Whether it's in the form of guarantees or direct investment or
whatever, but it's really for the Congress and the President to
figure out what should be the quantity of it and what should be
the nature of the projects.
Senator Booker. But as a person with vast business
experience, understanding how balance sheets work, people who
are concerned about debt to GDP ratio, investments in
infrastructure, especially in the region that you and I both
know best, you might call it the greater New York metropolitan
area, I call it the greater Newark metropolitan area, you
understand that investing in infrastructure produces two to
three dollars of return in economic growth, and that could be a
wise business investment; yes?
Mr. Ross. Well, as you know, I think the labor content and
the profit content of infrastructure construction can go a long
way toward offsetting tax revenues that aren't there because
labor content is around 44 percent in an infrastructure
project. So if you allow for the wages on that, then you allow
for taxes on the profit of the contractor, you have something
coming back in.
Senator Booker. I appreciate it could be really
economically stimulative; correct?
Mr. Ross. Yes.
Senator Booker. Yes, sir. And so I also understand that the
President-elect team is putting together a list of specific
high-priority infrastructure projects from around the country
that they plan to seek funding for. What's the criteria for
those projects to be included on the list? And will that list
be shared soon? And do you and President-elect Trump plan on
requesting direct Federal spending for those high-priority
projects?
Mr. Ross. Well, I don't think the list has been refined as
yet. You probably saw in the media recently he has appointed a
business partner of mine, Richard LeFrak, and Steve Roth to
head up the infrastructure consulting project. So I think they
will play a big role in helping him determine what are the key
projects and how to implement them.
Senator Booker. And not just because you're a young man
born and raised in New Jersey, and Mr. LeFrak is obviously from
New Jersey as well, but you understand that the busiest river
crossing in all of North America is the Hudson River crossing,
that that is a chokepoint for our Nation in one of the most
economically productive regions on the globe, and the fact that
that infrastructure is failing now. It is critical that we open
up those arteries like a stint on the Northeast Corridor, where
more people travel by rail than they travel by air. You
understand the urgency of that project given the role of this
region in the GDP of our country.
Mr. Ross. I surely do, Senator. You and I have probably
made that crossing more often than anybody else in this room.
Senator Booker. Thank you, sir. Thank you very much.
Mr. Chairman, thank you.
The Chairman. Thank you, Senator Booker.
Next up is Senator Fischer.
STATEMENT OF HON. DEB FISCHER,
U.S. SENATOR FROM NEBRASKA
Senator Fischer. Thank you, Mr. Chairman.
And thank you, Mr. Ross, for your willingness to serve this
country in the position of Secretary of Commerce. As you know,
the Department of Commerce has put a lot of work into thinking
of ways to encourage the growth of the Internet of Things, and
I commend the Department for those efforts. Senators Booker and
Gardner and Schatz and myself, we recently reintroduced the
Digit Act, which would create a working group convened by the
Department of Commerce to make recommendations to Congress on
ways to advance the Internet of Things.
As Secretary, would you plan to continue the Department's
efforts to collaborate with both private stakeholders and other
government entities, including Congress, to encourage the
development of the Internet of Things?
Mr. Ross. Well, I think all aspects of Internet need
encouragement. There are issues, technical issues, privacy
issues, and such as that that come up, so it's not a simple
subject. But when President-elect Trump convened the meeting of
the high-tech CEOs some weeks ago, he was kind enough to have
me be very much involved with that. And I was impressed with
how willing the high-tech people were to work with the new
administration to try to deal with these kinds of issues even
though, as it happens during the campaign, we would not
necessarily be the recipient of much support from them.
So I think that was a very good thing, and some of those
leaders have followed up with me subsequently with some more
specific suggestions. So I look forward to a constructive
relationship in that series of areas.
Senator Fischer. That's good to hear. As you know, the
Internet of Things, when we look at all that can be created and
the innovation that takes place and really the business growth
for entrepreneurs, it is going to be a huge area for growth in
this sector and one that I've enjoyed working with on a
bipartisan basis with Members of this Committee.
We also discussed during our meeting that agriculture is
the economic engine of the state of Nebraska. In fact, cattle
outnumber people four to one in our state. And Nebraskans work
very hard to produce food, fiber, and fuel for the rest of the
world.
In 2015, Nebraska's agricultural exports amounted to
roughly $6.4 billion, and of that, our delicious Nebraska beef
exports accounted for about $1 billion. And that is why access
to global markets is really extremely important to my
constituents, all the people of Nebraska.
If confirmed, what approach do you believe that you will
take to ensure that we have those global market opportunities
and that they are available for industries like Nebraska, where
we can continue to grow and develop?
Mr. Ross. Well, agriculture certainly is one of the
industries where we remain the world leader in technology and
in execution. So it's one of the very strong points of our
economy.
Second of all, many of the other countries, our trading
partners, literally cannot feed themselves, so they're going to
have to buy food from somewhere outside.
Take China, for example, only 13 percent of that huge land
mass is arable because so much of it is desert, so much is
mountainous, so much is just not farmable. So there are some
structural disadvantages that many of our trading partners have
where they very much need us. I think that is actually not
something to be feared in those negotiations; I think it's one
of our strengths.
Senator Fischer. Yes, obviously.
Mr. Ross. And soybeans basically come from two places, U.S.
and Brazil. I don't know where they would get the soybeans if
somehow they tried to cut us off.
Senator Fischer. Right. Thank you. There was some talk
earlier about federally held spectrum, and the NTIA has a very
important role in making more spectrum available for commercial
use, which I think is a laudable goal.
I am also a Member of the Senate Armed Services Committee,
and as such, I believe it is also very important that the
agencies that are responsible for protecting the homeland have
the spectrum that they need to do that.
As Secretary of Commerce, how would you approach the task
of balancing the commercial sector's need for additional
spectrum while still obviously recognizing but also putting as
a priority the importance of our national security and making
sure we have the spectrum needed to defend this country?
Mr. Ross. Well, for sure, the first--the vast majority of
the federally occupied spectrum that's unused now is in the
hands of the Department of Defense. So the first objective has
to be do no harm. We can't compromise national defense homeland
security at all, but we also need to be rational, and it can't
be that there's hoarding. And I think one of the tricky
problems is, how do you incentivize any department that has the
spectrum to give it up? I think that's the trickiest part, is
how to motivate them to do so, and that's something we should
all give some thought to.
Senator Fischer. Thank you very much.
Thank you, Mr. Chair.
The Chairman. Thank you, Senator Fischer.
How are we doing, Mr. Ross? Would you like to----
Mr. Ross. This would be an opportune moment.
The Chairman. All right. Good. Well, let's take a quick 10
minutes and reconvene as quickly as possible so we can keep
plowing on. So thank you. We will briefly recess.
Mr. Ross. Thank you, Chairman.
[Recess.]
The Chairman. All right. We're back. We will pick up where
we left off and start with Senator Cruz for his questions.
STATEMENT OF HON. TED CRUZ,
U.S. SENATOR FROM TEXAS
Senator Cruz. Thank you, Mr. Chairman.
Mr. Ross, congratulations to you and your family on this
nomination. I think you're going to do a terrific job, and I
look forward to this Committee working closely with you.
I'll tell you one of the things I'm most excited about. You
and I had an opportunity to visit at length, and your
commitment to regulatory reform, to working to reduce the
burdens of Washington on small businesses and job creators, I
think is critically important, and I think it is shared by
Cabinet appointees throughout this administration, and that is
one aspect that is going to have among the most dramatic
impacts on bringing back jobs, expanding the number of high-
paying jobs, and raising wages across the country, and so I
commend you for that.
I want to talk about a number of specific areas. I want to
start with addressing spectrum, which, as you know, has been a
long time interest of this Committee. And the demand for
spectrum continues growing at remarkable levels. Indeed, U.S.
mobile data doubled usage from 2012 to 2013, and it's projected
to increase by 650 percent by 2018.
And spectrum is always scarce, but that's exacerbated by
the fact that the Federal Government owns or shares roughly
half of the spectrum, and that presents both a challenge and an
opportunity. It is a challenge in that government agencies have
been notoriously reluctant to give up or share any of the
spectrum that they have control of. It is an opportunity in
that it provides the potential for billions of dollars of
revenue to the Federal Government while at the same time
opening up new spectrum that can create millions of high-paying
jobs and increase wages across the country.
So I wanted to ask you, I think there is room for a lot of
creative policymaking working with your fellow Cabinet members
who have control of spectrum to find a way to incentivize those
agencies to work to make more spectrum available for the public
and have it be a win-win all around. I wanted to ask you to
comment on that, and, in particular, for your commitment to
work with me and work with this Committee to explore
significantly increasing the bandwidth and spectrum that's
available to the public and the revenue accordingly that would
be available to the Federal Government.
You need to turn your microphone on, sir.
Mr. Ross. I think it's absolutely essential, Senator, that
we do that. I think the tricky part is the one that you and I
discussed at some length, which is, how do you incentivize
other agencies to give up the spectrum that perhaps they don't
really need? I think there is a natural tendency for everyone
to want to keep on to things in case they need it.
So I think the tricky thing, which probably would involve
public policy questions for the Congress, would be, how do you
provide some sort of an incentive? If there is something that
Commerce itself can do, if confirmed, I will do my best to put
that into effect, but I don't see anything immediately obvious
as a solution that Congress itself could do.
Senator Cruz. Well, I look forward to our working together
and to solve that together creatively.
Let me shift to a different topic, which is there has been
growing concern about China making acquisitions in the United
States, and, among other things, gaining significant influence
in the U.S. movie industry, making major acquisitions,
potentially creating an environment where entertainment
companies in the United States engage in self-censorship
because of foreign ownership. That concerns all of us who care
about free speech and do not want to see speech censored by
other nations.
Do you share those concerns? And what steps do you see
potentially that we could take to mitigate those concerns?
Mr. Ross. Thank you, Senator, for that question. I think
it's one of the most important questions facing us right now.
And it's not just food. The food is certainly an element of
national security by any measure, but it's also little high-
tech companies. They're making a lot of venture capital
investments, and maybe the dollars aren't so significant, but
the technology potentially is. In areas like semiconductor, I'm
very, very concerned about that because they are the world's
largest--they, the Chinese, are the world's largest consumer of
semiconductors, so far are mainly importing it a lot from here.
And semiconductors are a basic building block.
Second, when President-elect Trump convened the high-tech
CEOs a few weeks ago, I was struck to learn from them that the
closer they get to content, the more constrictive the Chinese
are on their activities. So it seems not very reciprocal that
they want to control entertainment and other media here and yet
are denying our companies anything getting remotely close to
that. So there isn't even a balance, and that's a separate
problem that's characteristic of a lot of the relationships
with them.
Senator Cruz. I look forward to working with you on that
issue. My time is expired, but let me briefly ask a final
question, which is this Committee has expressed considerable
concern over the decision of the prior administration to
transfer control of ICANN, the basic infrastructure of the
Internet, to a consortium of foreign countries, including
countries like Russia and China and Iran.
Do you share those concerns and will you commit to working
with this Committee to ensure that we protect free speech on
the Internet and that we do not allow enemies of free speech to
exercise authority that restricts our freedoms here in America?
Mr. Ross. Yes. As such a big market and really as the
inventors of the Internet, I'm a little surprised that we seem
to be essentially voiceless in the governance of that activity.
That strikes me as an intellectually incorrect solution. But
I'm not aware of what it is that we actually can do right now
to deal with that. It exists. If some realistic alternative
comes up, I'll be very interested to help explore it.
Senator Cruz. Very good. Thank you.
Thank you, Mr. Chairman.
The Chairman. Thank you, Senator Cruz.
Senator Baldwin is up next.
STATEMENT OF HON. TAMMY BALDWIN,
U.S. SENATOR FROM WISCONSIN
Senator Baldwin. Thank you, Mr. Chairman.
And, Mr. Ross, it's good to see you again. I appreciate
your coming by my office last week to discuss various trade
issues, and that's where I want to start. You authored the
Trump Trade Doctrine, and it's something I think I shared with
you. At first glance, I agree with substantial parts of it.
Like you and President-elect Trump, I believe that we need
a new approach to trade, and I hope that we can, in fact, work
together on creating a new trade agenda that increases wages,
creates jobs, cracks down on cheating from countries like
China, and strengthens the manufacturing sector in our country
and in states like Wisconsin.
I hope that we can work together to achieve these goals in
the years ahead. While trade has gained a lot of national
attention recently, it's really been on the top of my mind for
many years, and certainly my constituents, too. Given that we
share some of the trade priorities, I would like to take the
opportunity of this Q&A to drill down a bit further into some
of your plans to ensure that they will improve economic
opportunities of Wisconsinites, who are on the brunt of some
bad trade deals very directly.
Mr. Ross, you and the President-elect have spoken often
about your desire to renegotiate one of our Nation's trade
agreements, NAFTA. I, too, have concerns with that agreement,
most notably, its prohibition of Buy America programs. The
procurement chapter of that agreement allows Mexican and
Canadian companies to bid for American taxpayer-financed
projects as domestic companies. Can you commit to eliminating
the procurement chapter in NAFTA?
Mr. Ross. I think all aspects of NAFTA will be put on the
table, and that certainly is going to be a topic that would
come up, but you don't have a deal on anything until you have a
deal on everything, so exactly what would come in a final
treaty or not is a little bit premature to say, but I'm
certainly aware of the issue and certainly aware of the
President-elect's view about Buy America.
Senator Baldwin. Let me ask it then in a slightly different
way, understanding the complexities of renegotiating
multilateral trade agreement. Going forward, do you believe
that our trade agreements should allow foreign companies to bid
as American companies for taxpayer-funded projects?
Mr. Ross. I think it's a highly questionable practice, and
I think that it is one that has to be done with extreme care.
There are probably some few segments where there may be a
technology that someone has that we can't avail ourselves of.
There may be some circumstances where it's totally appropriate.
But many countries have the equivalent of Buy America, so
that's not an unusual factor.
And the Chinese, most of all, have very good--good in the
sense of strong--policies, and I think that there should be a
reciprocity, and at least if American companies can't bid on
projects there, it doesn't strike me as very logical that their
companies should be able to bid on projects here.
Reciprocity seems to me as a fundamental principle, even of
the WTO, and it's one that's mostly honored in the breach by
some of our major trading partners.
Senator Baldwin. In the Trump Economic Plan, you discuss
the outsourcing phenomenon as caused by both a push of
burdensome American regulations and the pull from foreign
countries who do not have our labor or environmental standards.
You've also been critical of the Obama administration and their
actions to prevent climate change and to protect labor rights
domestically.
In order to level the playing field, as you propose, will
you commit to holding our trading partners to higher standards
or only to lowering ours?
Mr. Ross. Well, the existing trade agreements have very,
very weak enforcement in general, and particularly weak
enforcement on environmental and labor. Take Mexico for
example. The minimum wage in Mexico has barely changed in pesos
for quite a few years, and the peso has depreciated quite a lot
against the dollar. So on a purchasing power basis, the average
Mexican worker is far worse off than he or she was 5 or 10
years ago. That was not the original intent of NAFTA. One of
the original intents was to bring up the standard of living
there, bring up the labor conditions there, make them a little
bit more stable and more prosperous economy, and, frankly,
reduce the gap in productivity-adjusted wages between the two
countries. It hasn't worked that way, and that has to be, or if
I'm confirmed, will be, a very serious topic for consideration.
Senator Baldwin. Thank you.
The Chairman. Thank you, Senator Baldwin.
Senator Moran.
STATEMENT OF HON. JERRY MORAN,
U.S. SENATOR FROM KANSAS
Senator Moran. Mr. Ross, thank you very much for your
interest in public service and your care for Americans and
their jobs. Let me first just associate myself with what the
Senator from Mississippi, Senator Wicker, indicated to you and
the conversation that we had in my office. I would add to his
voice that an infrastructure program needs to include broadband
expansion, particularly in rural and unserved areas. And so Mr.
Wicker raised that topic with you. I won't spend any more time
on it.
I wanted to talk a bit about spectrum, wireless. First of
all, Senator Udall and I have worked on legislation that was
included in the Bipartisan Budget Act of 2015. It provided more
funding and flexibility for Federal agencies to use the
Spectrum Reallocation Fund for research and development related
to their spectrum activities. It was our intention that this
additional funding and flexibility would result in a more
efficient use of spectrum by Federal users and free up more
government spectrum for commercial use.
OMB oversees that fund, but it does so in consultation with
the National Telecommunications and Information Administration
that's part of the Department of Commerce. I would like to have
you assure me that the SRF will be utilized to achieve those
goals in your administration at the Department of Commerce.
And as a follow-on, I would indicate to you in following
the Senator from Nebraska's commentary about the use of
spectrum, there's a 2011 GAO Report that basically said that
NTIA needed to improve its spectrum management policies to
promote more efficient use of Federal spectrum. And the way I
read that, I think it bluntly indicated that NTIA oversees--
while it oversees the spectrum, it is often pushed around by
bigger Federal agencies and departments, and therefore it's
difficult to get them, those agencies and departments, who have
little incentive to cooperate, to give up their valuable
spectrum, and I would ask you, what can be done at NTIA to get
this to work better than it does today?
Mr. Ross. Well, I don't intend to be pushed around by
anyone.
Senator Moran. I like the answer.
[Laughter.]
Senator Moran. It also allows me to ask an additional
question.
[Laughter.]
Senator Moran. We've taken a special interest in the
efficiency of IT procurement. And you indicated in your
testimony that it's an area of your--that you have interest in.
Senator Udall again and I introduced an Act we call ``Move
It.'' It later evolved into legislation that is designed to
better accommodate agencies who seek to update their IT
systems, but they're unable to do so in their current budget
framework. I again would ask you to commit attention toward
modernizing the Department of Commerce and its IT
infrastructure, particularly its legacy IT. And do you believe
that the Federal Government can better leverage commercial
cloud-based solutions to save money and increase security?
Mr. Ross. Well, I'm a very big proponent of cloud. We've
used it a lot in private sector. And as far as we can tell, it
is not only more efficient, it's probably also more secure for
lots of very complicated, technical reasons. I think that it's
a very important thing for government to do. And also to have
systems that talk to each other. There's an awful lot of
siloing both within Commerce and outside of Commerce, and I
think that is not a very satisfactory end result. We need to
all be on similar quality and efficiency of communication.
I think the tricky part of it is, where do you get the
funding to make the changeover? Because there are some one-time
costs to doing these. Commerce already has several initiatives
underway, and I'm certainly encouraged by what I've learned
about those, and I think much more could be done.
Senator Moran. Mr. Ross, thank you. I would indicate that
too many times the headline issues that we can deal with are
left--they overcome the good government issues that so
desperately need attention.
Let me finally say, as I indicated in my office, that trade
is an important--exports are an important matter to Kansans,
manufacturing of airplanes sold around the globe, agriculture
commodities. I would highlight that for you, but I also would
point out the view that China recently increased its anti-
dumping duties and its anti-subsidy tariffs on U.S.-dried
distillers grain. The decision came just days after the Chinese
government decided to increase tariffs on U.S. ethanol from 5
percent to 30 percent.
Kansas farmers also continue to be held back by China's
refusal to approve new varieties of biotech corn, which
happened in 2014. I supported a WTO case that brought
challenging China's domestic support of rice, corn, and wheat.
My point is that too often we negotiate trade agreements
and they are designed to level the playing field in regard to
tariffs, that in all the other issues that a country can bring
to play, we high-five ourselves with the satisfaction of
reaching a trade agreement, but then we miss the point of
defending and fighting the other things that prevent our
products from getting into other countries, and it seems
compatible with what you've been testifying.
Mr. Ross. Oh, it is. I've been a victim over the years of
some of these non-trade and untariffed trade barriers, and
they're quite insidious, but also, unfortunately, they can be
quite effective. We need to deal with those.
It's not enough to have a trade agreement that just hits
tariffs, and it's one of the reasons I think there should be
systematic reopeners of trade agreements after a few year
period because it's hard to anticipate the ingenuity that some
of these folks have to get around the intent of the agreement.
So I think an automatic reopener, whether it's a sunset
provision or just a reopener, would be a very useful thing to
look back on what was originally contemplated, look back on
what was originally projected to occur, and to say, well, if we
didn't achieve those objectives, why not, and what do we need
to do to fix them? And I think an agreement like NAFTA, that is
more than 40 years old and there has never been a systematic
transparent review of it.
Senator Moran. Mr. Ross, if you are confirmed, I intend to
be gum on your shoe in regard to the exports of agricultural
products and commodities from Kansas and manufactured airplanes
and the other things we do in the global economy.
Mr. Ross. I got that impression the other day, sir.
Senator Moran. Thank you, sir.
The Chairman. Thank you, Senator Moran.
He's gum on our shoe a lot, too, so just to that point,
we've been victims, my state has, our agricultural producers,
particularly bee producers of this gaming, and we call it honey
laundering, which is something that the Chinese have been
particularly effective at, and we do need to enforce our laws
and make sure that people are playing by the rules. So a very
important issue to a lot of people on this Committee.
Senator Capito.
STATEMENT OF HON. SHELLEY MOORE CAPITO,
U.S. SENATOR FROM WEST VIRGINIA
Senator Capito. Thank you.
Good afternoon now, Mr. Ross, and thank you as well for
joining me in my office last week. I enjoyed our conversation.
And I just wanted to kind of reiterate a few of the issues that
you and I talked about, and no surprise here for you in terms
of what's important to the state of West Virginia. We talked
about the transitioning of our state from a coal economy
hopefully to a more high tech, keeping our coal economy going
but also trying to diversify.
And one of the administrations under the Department of
Commerce is the EDA. Recently, the EDA has taken a renewed
interest, thank goodness, at my and other people's urging, to
really look at the severe job loss in our regions and to use
those dollars to maximize the effect of entrepreneurship,
capacity building, and other ways for us to diversify our
economy, whether it's agriculture, high tech, energy sector
jobs.
And so I would just like to reiterate to you, since the
last 2 years we've made good strides here, that this is
important. Even though it's not a large agency in terms of
appropriation, it does and can have a far-reaching effect in
the distressed areas in our country where I'm living and where
many of us are.
So I would just like to reiterate my commitment and
hopefully your commitment to work together to see that the EDA
continues the progress we've made over the last several years.
Mr. Ross. Yes. I think EDA can be a very valuable source of
seed money for projects----
Senator Capito. Right.
Mr. Ross.--and kind of matching things, triggering other
sources of economic help to get things jumpstarted. I think
given its budgetary constraints, that's probably the most that
it can do, but I think that can be a very valuable function if
properly applied.
Senator Capito. It absolutely can, and in some of the rural
areas where we have trouble attracting capital and attracting
investment, it can be first in or last in, and have some
complete projects at the same time.
So I don't want you to think that you're in an echo
chamber, but I am going to talk a bit about rural broadband,
which we discussed. I was really pleased to learn, and you told
me that day, but you reiterated in your remarks, that you have
some direct experience with broadband deployment in the state
of Florida. A little bit different terrain than the state of
West Virginia, that's for sure, but the rural areas are really
behind here. And, again, if we're transitioning or if we're
going to go to the next economy, if we don't have that stool of
infrastructure development, we're going to be further behind.
Secretary Chao was here last week. I reiterated to her how
important I think an infrastructure package has to include
broadband deployment in the underserved and unserved areas. And
since you have experience in this issue, I'm sure that you can
see what it can do to the development of areas that have been
undeveloped, and what it can do for health care, education, and
other aspects of people's quality of life.
So, I look forward to working with you in this area and
learning from you on the best ways to get to that broader and
bigger elimination of the digital divide that exists.
Mr. Ross. Thank you very much, Senator.
Senator Capito. Last, I mentioned to you that, and I was
glad to see in your remarks you talked about NOAA and how
important it is from the aspect of living in Florida. NOAA has
a large and significant presence in West Virginia, and I think
I can reasonably state it was probably an earmark from Senator
Robert C. Byrd, so it's still there and doing well, and it's
the primary backup for all of NOAA's emergency contingency
operations. It's key to making sure, for instance, the GOES-16
satellite that was just launched, this facility serves as the
consolidated backup facility for the mission.
We've still got capacity to grow here, so we're hoping that
NOAA, because I have confidence in our abilities now, will work
with us in West Virginia to grow that footprint and use us as
the highly technical skilled folks that we have. And we're
growing a technology corridor down through sort of the middle
of the state to try to work with that. So I want to work with
you with NOAA, and hopefully we can visit those facilities
together.
Mr. Ross. Yes. From everything I've heard, NOAA is quite
happy with the relationship they have with the local community
there.
Senator Capito. Well, good. That's great. The FBI is right
down the street, so maybe they have to be happy.
[Laughter.]
Senator Capito. Thank you very for--sorry, I think I might
be the last one of the--oh, no. I forgot Chairman Inhofe right
to my left here. So I appreciate it and I look forward to
working with you at the Department of Commerce and look forward
to voting in the affirmative for your nomination.
Mr. Ross. Thank you, Senator.
Senator Capito. Thank you.
The Chairman. Thank you, Senator Capito.
Senator Inhofe is next, and then Senator----
STATEMENT OF HON. JIM INHOFE,
U.S. SENATOR FROM OKLAHOMA
Senator Inhofe. Yes. Thank you, Mr. Ross. And I enjoyed,
first of all, the visit we had in my office. And I'll make mine
a lot quicker than most of them. I do apologize. The reason for
all of us being late is that, in my case, we have our Oklahoma
Attorney General up, has been nominated to be the Director of
the EPA, and I have more than just a casual interest in that.
In fact, the last four of the Members here are late because
they're over at that hearing. So this is not the way it should
be, I suppose, but it's the best that we can do.
Let me just mention one thing. Back, way back, when NAFTA
was passed, in our delegation of seven Members from Oklahoma, I
was the only one who voted against it. And I would just like to
be drawn into the loop as you make progress on the changes you
may want to make just so that we'll be aware of that and can
perhaps participate in a small way.
Mr. Ross. Surely. I believe there is a consultative process
provided in the TPA regulations and that, therefore, there will
be at least that level of consultation.
Senator Inhofe. Good. I talked to you also about Taiwan
being a close friend and ally of the United States, and our
ninth largest trading partner. That's very significant, and we
could further strengthen the U.S.-Taiwan relationship by
engaging in direct bilateral trade agreements.
Now, these, in negotiations, would need to address Taiwan's
current ban on importing pork containing ractopamine, a food
additive that the Chairman of this Committee has talked about,
he's concerned about some of the things that we want to do with
Taiwan.
So I would say, as Secretary, would you just consider
prioritizing the United States' trade relationship with Taiwan
and consider laying the groundwork for direct bilateral
negotiations?
Mr. Ross. Well, as you know, that's a very complex issue--
--
Senator Inhofe. I know it is.
Mr. Ross.--because of the One China/Two China policies. So
I think that there we would need some guidance from the
President as to what direction he wishes to go.
Senator Inhofe. And that's the very reason I worded it the
way I did, just consider.
As I mentioned at my office, you were kind enough to give
me quite a bit of time. I've had a very close relationship with
Africa and have actually made 144 African country visits. I am
concerned about Africa and our lack of a good relationship that
we've had historically.
Now, when we did our NDAA, National Defense Authorization
Act, I put an amendment on there that we titled the African
Free Trade Initiative Act that was passed that is now a part of
the bill that is going to take care of our NDAA needs for the
next year.
Now, it's a step in the right direction to partner and
secure deeper ties with a fast-growing economy such as that in
Sub-Sahara Africa. There are nations eared to engage in direct
bilateral negotiations on trade with the United States, and I
just would hope that you would work with me to focus U.S. trade
efforts in Africa.
Mr. Ross. It's almost impossible to imagine ignoring such a
large continent with such rapid growth to it with such
strategic importance and potentially such economic importance.
So clearly there's a role for us to play with Africa, and I
think one of the concerns that we should all share is that
China has been all over the map in Africa building high
schools, building soccer playing fields, doing all kinds of
things, and gobbling up natural resources as well. Nature
abhors a vacuum, and to the degree that we've let a vacuum be
created there, there's a countervailing force that's going to
fill it, and that's not us.
Senator Inhofe. That is a beautiful response. I appreciate
that very much. I might add China doesn't even use their labor
when they're in these projects.
So anyway, I look forward to supporting your confirmation,
and thank you very much for being willing to do it.
Mr. Ross. Thank you, Senator.
The Chairman. Thank you, Senator Inhofe.
And I think last up on the first round is Senator Markey.
Senators Inhofe and Capito both left time on the clock. I think
that's the first time that's happened today, so we must be
winding down.
Senator Markey.
STATEMENT OF HON. EDWARD MARKEY,
U.S. SENATOR FROM MASSACHUSETTS
Senator Markey. Thank you, Mr. Chairman, very much.
Mr. Ross, we're in the world of the Internet of Things, as
the Internet is built into the appliances which we use, the
machines which we use, the automobiles, the SUVs, everything
now is part of the world of the Internet of Things. But IoT
isn't just going to stand for Internet of Things, it's also
going to stand for the Internet of Threats to the security, to
the privacy, of all Americans, as this technology is built into
every device.
So as we move forward, we have to think at the same time
about cybersecurity, about privacy, about what are the
protections which we're going to give to Americans so that
their privacy and security is not constantly subject to
compromise. Could you tell the Committee what your views are on
that issue and what you would recommend that we do in order to
protect Americans?
Mr. Ross. Well, we've had some direct--I've had some direct
experience with it. As you know, we've invested in a number of
small and medium-sized banks around the country, and even they
are subject to cyber attacks from all over the place. Some are
just from hackers who simply seem to want to prove that they
can do it, but others are evil ones trying to steal people's
identities, trying to steal people's money, all kinds of
things.
So it certainly is a serious problem and it's the
unfortunate flipside of interconnectedness, is, how do you
balance interconnectedness and two-way communication and two-
way or multiple-way everything with protecting people?
I think we need to be extremely vigilant and keep
developing new and better systems because the people who have
bad intent are certainly trying to develop new and better ways
to break in. So it's a continuing challenge.
Senator Markey. I've introduced legislation, which is
essentially a cyber labeling program, that would just say to
industries of the United States you have to label your devices
in terms of how secure they are from being hacked, from having
privacy compromised. What do you think about that idea? And
don't you think on a voluntary basis that is something that we
could ask for American industry now to adopt as a practice?
Mr. Ross. Well, I'm quite sure that American industry is
becoming more and more sensitized to the problem. There is no
company I know of, of any size whatsoever, that hasn't been
having these threats, ranging from electric utilities to every
other kind of endeavor.
So I think everybody appreciates the problem. Exactly
what's the solution and whether one size fits all I think is a
more complicated issue and one that needs a lot of very
thorough investigation, but----
Senator Markey. And I appreciate that. The one problem, of
course, is that there are many companies that are never going
to invest in cybersecurity protections, and that is where the
problem is going to be created, where the vulnerability is
going to be created. So I'm looking forward to working with you
on that.
Senator Fischer and I have introduced the Federal Spectrum
Incentive Act, which offered new incentives for Federal
agencies to relinquish underutilized spectrum. I know that
Senator Cruz just asked about whether we should incentivize
Federal agencies to vacate or share spectrum they don't need.
Will you commit to working with Senator Fischer and me so that
we can try to find a way of moving forward legislation that
does create those incentives for the Federal agencies to free
up the spectrum that the private sector could use?
Mr. Ross. Right. Well, I think it probably would need to be
a legislative solution because it's fairly clear to me that
Commerce does not have the power to do it on its own. So to the
degree that there is going to be an incentive given, I think it
would absolutely have to be legislated.
Senator Markey. And New Bedford, Massachusetts, is the
highest grossing fishing port in the United States. What
actions would you support to ensure that seafood brought to the
market is legally caught and sustainable?
Mr. Ross. Well, I think that's very, very important. For
one thing, in terms of the domestic catch, clearly the
objective should be the maximum sustainable yield, so that, as
a starting principle. But also a lot of the imports that come
in are produced under conditions that would not be tolerable in
the United States, and I think that needs to be dealt with. It
needs to be dealt with also at the port level.
My understanding is that if a shipment of food comes in
that for whatever reason is rejected at a given port, all that
happens is then that vessel diverts to another port and hopes
to get the same food in. Well, since only 2 percent of the
cargos are ever inspected, that means they've got a 98 percent
chance to get away with it the second time, and meanwhile the
food is a couple of days older and perhaps a couple of days
worse condition. So I think we need to deal with it at a whole
series of levels.
Senator Markey. Thank you, Mr. Chairman.
The Chairman. Thank you, Senator Markey.
And, again, I would echo what's been said about finding
more spectrum. We're going to absolutely have to have it. We
have 16 billion wireless devices today and headed toward 50
billion by 2020, so it's absolutely essential.
Senator Blumenthal I think wanted to ask some additional
questions.
Senator Blumenthal. I have just a few questions. As you
know, one aspect of the very broad and varied responsibilities
that you would have, if confirmed, pertain to fighting boycotts
of American companies that, in effect, refuse to do business
with countries. Israel is one where action has been taken.
Your Department has within its authority the Bureau of
Industry and Security, which is tasked with prohibiting
businesses with a U.S. presence from boycotting those countries
like Israel based on foreign laws or at the request of a
foreign government.
In 2015, I wrote to the Commerce Department, and I was
joined by a number of my colleagues, including several on the
Committee: Senators Booker, Schatz, and Markey. We wrote in
response to a number of claims and incidents in which travelers
with Israeli passports were denied. And we wrote to the United
States Department of Transportation, which agreed that the
incidents warranted further inquiry.
The Department of Commerce, in effect, deflected our
inquiry, providing little information or concern. That raises
for me a very important overall issue, standing up to efforts
to boycott Israel or any other country in these kinds of
business dealings.
I'm asking you to commit to make this issue a priority and
agree to enforce the anti-boycott laws to the fullest extent of
your authority. We're talking about existing laws that need
enforcement.
Mr. Ross. I believe, Senator, that the President-elect has
made clear his pro-Israel attitude, and I certainly will do my
part to uphold the laws.
Senator Blumenthal. Thank you. I would like to ask you also
about cybersecurity, following up on the very helpful comments
you just made. As you well know, this Nation is under cyber
attack literally every day from the Russians, Chinese, North
Koreans. There have been repeated instances of it. In this very
room, where the Armed Services Committee meets and holds
hearings--I'm a Member of that Committee--we've heard chilling
and staggering accounts about the extent and magnitude of cyber
warfare.
Would you agree that this Nation has to develop better
policies to deter and punish the Russians and other countries
that currently are attacking us literally every day and
interfering with our economic system, threatening our economic
network, our electronic grid, our transportation system, as
well as our military defense?
Mr. Ross. I absolutely do, Senator Blumenthal. I think to
me the most terrifying form of warfare would be if there was
some simultaneous cyber attack on our grid, on the banking
system, and on our transportation system. That would be quite a
devastating thing, and yet, in theory, absent some real
protective measures, that could happen.
Senator Blumenthal. And we should send the Russians or any
other country that would threaten us in that way an
unmistakable message that such an attack will be met by a
aggressive effective response.
Mr. Ross. I think we don't have very much choice because
the danger is both large and imminent.
Senator Blumenthal. And imminent is also extraordinarily
frightening because so much of our Nation depends on the
interconnection between different sectors of our economy, and
our private sector needs to be given impetus to do better.
Mr. Ross. Yes. And it was either in my discussion with you
or perhaps with Senator Markey that we talked about the
situation where a fellow had a generator in his house in case
the power went off, but the generator was interconnected or was
on natural gas, which presumably would also get cut off. So
partial prophylactics are not a very good solution in this
area. We need things that are quite all-embracing and quite
thorough.
Senator Blumenthal. Would you agree with me that deterrents
against this kind of attack should include measures not only in
the cyber domain but also economic sanctions if necessary, and
foreign exchange sanctions?
Mr. Ross. Well, I think what we need is an overall
coordinated policy to deal with these cyber problems. But it
gets into a lot of departments that go well beyond Commerce, as
you're aware.
Senator Blumenthal. I fully agree, but Commerce can play
and should play an important role.
Mr. Ross. I promise you we're on it.
Senator Blumenthal. One last question. I will be
introducing a measure that would prohibit look-alike toy guns,
which can cause tragedies. You may be familiar with the
tragedies that have occurred around the country where police in
tense situations encounter sometimes young people with look-
alike toy guns that they mistake for real weapons, and the
result is the police respond by using their weapons and people
may be injured or killed.
The measure that I am going to introduce will strengthen
the protections against those kinds of look-alike or toy guns.
I am asking for your support because the Secretary of Commerce,
along with the Consumer Product Safety Commission, the CPSC,
would have responsibility for developing regulations under this
law.
I'm asking for your support to ensure that toy look-alike
or imitation firearms are not allowed to enter Commerce unless
they are made abundantly clear to be toy guns. Will you commit
to supporting such legislation?
Mr. Ross. I look forward to reading the legislation and
discussing it with you, Senator.
Senator Blumenthal. Do you agree, in principle, that this
kind of protection is necessary?
Mr. Ross. Well, I think anything that prevents people from
being killed or injured unnecessarily is a good idea, but we
would have to look at--I would have to look at the actual draft
legislation.
Senator Blumenthal. In the course of your investments or
other endeavors, have you ever done any work on smart guns?
Mr. Ross. Smart guns? No, sir. What is that?
Senator Blumenthal. Well, guns that may be limited to
firing or use if they have the biometric kinds of----
Mr. Ross. Oh. Yes, I've heard of it. I've never seen them
in action, and so I don't really have a very well-formed
opinion of them.
Senator Blumenthal. Well, I look forward to talking to you
about this topic. I'm out of time. And you've been very patient
because you do have jurisdiction over the National Institute of
Standards and Technology, which could play a part in developing
standards and technology for smart guns.
Mr. Ross. Sure. Well, developing standards for any
innovative process is obviously a very critical function and
one that the Department takes quite seriously.
Senator Blumenthal. I hope you will take this one
seriously. I know you will.
Mr. Ross. I will, Senator.
Senator Blumenthal. Thank you.
The Chairman. Thank you, Senator Blumenthal.
Senator Sullivan.
Senator Sullivan. Thank you, Mr. Ross. And I know you heard
that a number of us are moving between committees for other
confirmation hearings. So if I ask a question that you already
answered, please bear with me.
But I very much appreciated your focus in earlier rounds of
questions on economic growth where you're talking about energy.
As you know, in Alaska, we have a lot of it, and we need to
produce more of it. And we're very much looking forward to
having an Executive Branch that wants to help us, not stop us
from producing energy, like we have with the Obama
administration, rolling back some of the unnecessary
regulations, infrastructure, and then trade.
And I think on the issue of trade, I know you've answered a
couple questions on it, but as you and I discussed, I believe
the Trump administration is going to be the first
administration in U.S. history to come into office with trade
promotion authority, and a number of us supported that in part
because President Obama had 2 years of it, but we were hoping
the next President would be a Republican and would have 4 years
of it. That's happened. The Administration doesn't have to
spend one ounce of political capital on getting TPA, and that's
usually hard to get over the goal line.
So, can you just talk a little bit about your views on
bilateral trade priorities? But also there have been reports in
the press about some kind of 35 percent tariff. That would seem
to me to be about as anti-growth as possible. I know you
mentioned in some of your answers Smoot-Hawley. But how are you
going to look at the trade element and really take advantage of
what's an enormous opportunity, which is TPA, that you can use
that's a very, very powerful tool to help American exports?
Mr. Ross. Well, TPA is an important tool because what it
gives is relative assurance to the party with whom you are
negotiating that you can deliver because any negotiation is
handicapped if you're not sure the other guy can deliver on
what has been negotiated. So it's a big help in that regard.
And there are, as you know, some consultative steps that
are required vis-a-vis between the President and the Congress
on TPA. And I'm quite sure that if he uses it, the President-
elect will adhere to those requirements. So those are good and
useful components of the trade process.
And in terms of the 35 percent and some of the other
statements, I think the President has done a wonderful job
preconditioning the other countries with whom we'll be
negotiating that change is coming. The peso didn't go down 35
percent on accident. Even the Canadian dollar has gotten
somewhat weaker, also not an accident.
So I think he has done some of the work already that we
need to do in order to get better trade deals because when you
start out with the adverse party understanding that he or she
is going to have to make concessions, that's a pretty good
background for any negotiation to begin. So I'm very grateful
that he has made this task a little bit easier by alerting
everybody that change is coming.
Senator Sullivan. Well, would 35 percent tariffs be pro-
growth or not?
Mr. Ross. Oh, I think that the pro-growth thing is
stimulating exports much more than just curtailing imports, but
tariffs can be--countervailing duties and punishment to people
for dumping is essential because there are inappropriate and
illegal trade practices being performed, and if you don't
really punish them, you're never going to modify their
behavior. So there is certainly a role for it there.
Senator Sullivan. Let me ask just a related question when
you're talking about trade tools, and that's--I know there's
been a lot of focus on China. That's in the area of
reciprocity. But right now, as you know, there are stories, and
it's happening, China has two very large investment funds where
they're buying up strategic companies in Western Europe, trying
to in the United States. Some are strategic, some are just
important, you know, they're looking certainly at the movie
industry in Hollywood and ship manufacturers.
And yet I think it's pretty common knowledge that if our
companies wanted to go to China and buy up a big movie industry
or buy up a big ship manufacturer or buy up a tool and die
industry that's very--or a company that's very strategic, the
answer would certainly be no.
Mr. Ross. Right.
Senator Sullivan. So in the WTO, their accession, as far as
I know, did not have a reciprocity requirement with regard to
investment. However, do you think it would be in the interest
of the United States--and it's a debatable topic here, a number
of us are looking at legislation to maybe include investment
reciprocity as part of the CFIUS process--do you think that
would be wise or do you think that would undermine the vitality
of the United States by restricting investment even though
there is clearly no reciprocity going on right now between the
number one and number two economies in the world? And in my
view, it's an unlevel playing field. China can do it, they're
doing it. If want to go over and do it, we couldn't. How do we
deal with that?
Mr. Ross. Well, I think reciprocity in an important concept
in trade agreements, and I think there are other important
concepts as well. To me, another one is simultaneity of
concessions. We have tended in prior trade agreements to make
our concessions up front, and the other party makes their
concessions later, but the problem is that later sometimes
doesn't come, because when you have weak enforcement provisions
and you've already made your concessions, it's a little bit
hard to unscramble the egg.
So I think reciprocity is an important concept going
forward. I think simultaneity is an important concept going
forward. I think, as I mentioned I think while you were out of
the hearing room, the concept of an automatic reexamination
after a period of time to find out, well, what worked? what
didn't work? and what should we fix?
I think there are a number of these conceptual issues that
have not been present in prior trade agreements. But I would
hope that if confirmed, I can contribute toward designing kind
of a model trade agreement where we would introduce into it
certain principles that would have to be in any agreement. I
think it's a huge mistake to start out each time with kind of a
blank page from ground zero. It makes it take longer, it makes
it harder to negotiate.
The best negotiating tool is to be able to tell someone,
``I can't change this. This is official policy. You know it is.
We've got it in 10 other deals. We're not going to give you
anything different.'' That's a much better position, in my
opinion, than starting out with a blank slate.
Senator Sullivan. Thank you.
Mr. Chairman, may I have the opportunity to answer--or ask
one more question?
[No audible response.]
Senator Sullivan. Thank you.
Mr. Ross, I wanted to talk just a little bit on the
infrastructure element. I think you're going to see a number of
Senate colleagues on both sides of the aisle be supportive of
doing more with regard to infrastructure. And as we talked
about, one element that I think a number of us see as critical
when we move forward on a big, large-scale infrastructure
initiative is fixing the Federal Government's broken permitting
system.
Mr. Ross. Yes.
Senator Sullivan. So whether that's--on average right now
it takes 6 years to permit a bridge in the United States of
America. We had a hearing here on airport infrastructure last
year. It took the Seattle Airport to build a new runway 15
years to get the Federal permits. In Alaska, it took Shell 7
years to get the Federal Government's permission to drill one
exploration well in 100 feet of water. It's a broken system.
And if we have an infrastructure package that's in the hundreds
of billions without a dramatic overhaul of our permitting
system, I fear it's going to be money that can't be deployed.
Would you agree to work with us on not only focused on the
financing of infrastructure, but the very, very important issue
of fixing a broken Federal permitting system where this country
used to build big things on time, and now we can't permit a
bridge inside of a half a decade?
Mr. Ross. Well, I know the permitting is an issue. I think
it's one of the reasons why there weren't so many shovel-ready
projects when President Obama got money for infrastructure. And
the permitting isn't just on big projects. In some parts of
this country, if you want to put a porta-potty on a well site,
you have to go get a permit, and it takes weeks to do that.
That's not even drilling a hole in the ground, it's not
invasive, it's not anything. I think we've gone a little permit
nutsy.
Senator Sullivan. Well, I look forward to working with you
on that, and I look forward to your speedy confirmation.
Thank you, Mr. Chairman.
The Chairman. Thank you, Senator Sullivan. All good lines
of questioning. I know I have found the answers and responses
today on some of the trade issues to be somewhat reassuring. I
think there are a lot of folks who are spooked when they hear
rhetoric surrounding 35 percent tariffs and that sort of thing,
and I think you've given good insights into how that might be
interpreted today.
Senator Nelson I think has a couple of cleanup questions,
and we'll probably get you out of here shortly.
Senator Nelson. Well, you have certainly seen by the
questions today and the breadth of the subjects covered by the
Commerce Committee the intense interest, and you have comported
yourself quite well. You have been very detailed and non-
evasive in your answers, and that is appreciated. And albeit
the length of this hearing, let me assure you that this hearing
is a piece of cake compared to some of the other nominees that
are going through the process of the constitutionally required
advise and consent.
Your wife, Hilary, has been most patient back there and has
not looked around the room. She has been very attentive, so my
compliments to her as well.
Just for a couple of cleanup things here. I want to insert
in the record, Mr. Chairman, a letter by 10 scientists, many of
whom are professors at Florida universities, having to do with
a concern of our state being so fragile when it comes to sea
level rise. And I would quote just one paragraph in this letter
addressed to you. ``Like you, climate scientists are facing a
distressing situation as we study the projected impacts of sea
level rise. However, we remain optimistic that our challenges
can be solved with American ingenuity, entrepreneurship,
strategy and new technologies.''
The Chairman. Without objection, we'll have it included in
the record.
[The information referred to follows:]
January 17, 2017
Wilbur Ross,
Invesco Global Headquarters,
Atlanta, GA.
Dear Mr. Wilbur Ross,
Congratulations on your nomination. You have a distinguished career
and now you are presented with the opportunity to become the next
Secretary of Commerce--a position with enormous influence on American
society.
We are a group of Florida scientists, many of whom work daily with
data from the National Oceanic and Atmospheric Administration (NOAA);
one of the agencies you will be in charge of at the Commerce
Department.
Like you, we share an affinity for Florida. As a Florida resident,
you know how precious the coastline is, and the fragile beauty of our
state.
You are known for your problem solving skills, and your ability to
salvage distressed businesses. We were struck by a statement you made
in your CNBC interview where you said, ``the solutions are always more
fun than identifying problems. We're basically optimists even though
we're dealing with situations that have a lot of pessimism.''
Like you, climate scientists are facing a distressing situation as
we study the projected impacts of sea level rise. However, we remain
optimistic that our challenges can be solved with American ingenuity,
entrepreneurship, strategy and new technologies.
We encourage you to use your exceptional problem solving skills to
look closely at the intersection between our changing climate, our
economy, agriculture, industry, jobs and human health.
The Commerce Department defines part of its mission as ``work[ing]
with businesses, universities, communities, and the Nation's workers to
promote job creation, economic growth, sustainable development, and
improved standards of living for Americans.''
In your new role as the Secretary of Commerce, you have a unique
ability to influence multiple sectors of our economy. You will direct
scientific research both within government, and at universities through
NOAA. You can also work with businesses, engineers, and industries to
develop solutions to address climate and energy challenges.
We call on you to:
Protect our coastline.
Florida has over 1,100 miles of coastline, a portion of which you
are intimately familiar with, and surely appreciate. Current forecasts
predict up to six feet of sea level rise in the next century. Under a
worst-case scenario we could see two feet of sea level rise by 2060.
And while that may seem like a distant threat, right now with king
tides there can be ``sunny day flooding'' in coastal states.
In order to protect our coastlines, it is crucial to continue the
monitoring and projection of future environmental changes in the
atmosphere and the ocean. None of this research can happen without
adequate funding. We must prioritizing research funding in the
direction of climate change studies, especially in the context of sea
level rise. Vital observations and research into phenomena affecting
climate change impacts, such as variations in the ocean circulation
that can, and already are, increasing sea level rise along our
coastline must be maintained.
Support robust science.
The same way that you evaluate companies before you purchase them,
scientists are learning about our climate, our weather, our oceans, and
our coast, so that policymakers can make informed decisions. We echo
The Union of Concerned Scientists' call for a strong and open culture
of science and believe in adhering to high standards of scientific
integrity and independence. You know from experience the role of in-
depth research in executing a successful strategy, and so you should
appreciate the value that scientists bring to the table to understand
the impacts that change in our natural world will have on human
systems--our ports, our coastal properties, and our weather patterns.
Embrace clean technology.
As the Secretary of Commerce you can help put America at the
forefront of scientific research, and position us as leaders in the
international competition for clean technology development.
We know many of your investments have been in traditional
industries like coal and steel, but we encourage you to learn as much
as you can about new energy technologies. Embrace clean energy
solutions not only to address our energy needs but to create good
paying jobs in our communities.
The Department of Commerce encompasses much more than just NOAA,
but we want to make a heart-felt plea to you to understand how
incredibly important NOAA's contribution to society is. NOAA states on
its website that it ``enriches life through science.'' NOAA's mission
is ``Science, Service and Stewardship.''
You have an incredible opportunity to be a steward who will help
restructure America's energy problems, and turn our climate crisis into
another American success story.
We want to emphasize the magnitude of the problem--the future of
Florida hangs in the balance. The stakes could not be higher.
You are in a critical position to support sound science and
solutions that can help America solve this problem. We implore you to
recognize the urgency of climate change, and take your new position
with great humility and the same dedication and tenacity you have shown
throughout your career.
Thank you, and good luck on your nomination hearing.
Sincerely,
Senthold Asseng, Professor
Department of Agricultural and Biological Engineering
University of Florida
Keren Bolter, Research Affiliate
Center for Environmental Studies
Florida Atlantic University
Jeff Chanton, Professor
The John Widmer Winchester Professor of Oceanography
Department of Earth, Ocean and Atmospheric Science
Florida State University
David B. Enfield (ret. 2015)
Dept. of Physical Oceanography
NOAA Atlantic Oceanographic & Meteorological Laboratory
Pamela Hallock Muller, Ph.D., Professor
College of Marine Science
University of South Florida
David Hastings, Professor
Marine Science and Chemistry
Eckerd College
Barry Heimlich, Vice Chair
Climate Change Task Force
Broward County
Ben Kirtman, Professor
Department of Atmospheric Science
Rosenstiel School for Marine and Atmospheric Sciences
University of Miami
John H. Parker, Professor Emeritus of Chemistry and Environmental
Science
Department of Earth and Environment
Florida International University
Randall W. Parkinson, Ph.D., P.G., Research Faculty Affiliate
Institute for Water and Environment
Florida International University
Brad E. Rosenheim, Ph.D., Associate Professor
College of Marine Science
University of South Florida
Philip Stoddard, Professor
Department of Biological Sciences
Florida International University
Mayor of South Miami
Harold R. Wanless, Professor and Chair
Department of Geological Sciences, College of Arts and Sciences
University of Miami
Disclaimer: The views and opinions expressed in this letter are
strictly those of the individuals and do not necessarily reflect the
official policy or position of their respective organization.
Senator Nelson. That sounds like quite a reasonable
approach. And here I would also like to insert a document just
released this morning at 10:30 from NOAA's National Centers for
Environmental Information, marking some of the measurements
with regard to consecutive years of record warmth on the globe.
And I think that's instructive for us to have from NOAA itself.
The Chairman. Without objection.
[The information referred to follows:]
Senator Nelson. Senator Blumenthal asked what I was going
to ask about our support for Israel and your attitude about
that, and I think you've covered that.
And I would, finally, appeal to you, as a Floridian who
lives on the coast, that there is not only a tourist industry,
which is an $85 billion a year industry, in Florida, almost a
million jobs connected with tourism, much of which depends on
the very attractive and pristine beaches that we have. And we
learned a valuable lesson in the Deepwater Horizon oil spill
when that oil fortunately did not get to all of our beaches,
but, instead, got to Pensacola Beach, which was covered in oil,
some oil on Destin Beaches, as well as tar balls as far east as
Panama City. But what it did, is it shut down the tourist
season for one entire year on the Gulf Coast.
And had that spill been at a time when the loop current
that comes off of the western end of Cuba and loops up into the
Gulf of Mexico, then turns south, goes around the Florida Keys
and becomes the Gulf Stream that hugs the coast not only at
Miami, but at your residence in West Palm Beach all the way up
to Fort Pierce before it takes off further out into the
Atlantic from the coast--had that spill or any future spill
gotten into the loop current, we would have had that effect on
the east coast of Florida and the resulting debacle with regard
to our tourism industry.
Now, there is one other reason why this is so important to
us, and you and I have not had a chance to talk about this. The
largest training and testing area for the United States
military in the world is the Gulf Coast off of Florida.
Mr. Ross. Right.
Senator Nelson. It is the Gulf Testing and Training Range,
and, thus, the extensive activities at not only Eglin Air Force
Base, but also Tyndall Air Force Base at Panama City. I have
two letters from two Republican Secretaries of Defense saying
we simply cannot have oil drilling activities, that it is
incompatible with the testing and training of some of our most
sophisticated weapons. When you combine that with the fact that
the geology shows that there is very little oil off of Florida,
the oil is off of Louisiana, where all of the sediments came
down the Mississippi----
Senator Sullivan. And Alaska.
Senator Nelson. I'm talking about the Gulf of Mexico right
now. I won't get into the Bering Sea and the North Slope and
all of that. I'm tending to Florida. You tend to Alaska.
[Laughter.]
Senator Nelson. That the effects would be devastating so
much so that my colleague, a Republican former Senator, Senator
Mel Martinez, joined with me for all of the reasons that I've
stated, and we put in law, off limits until the year 2022
drilling in the Gulf of Mexico off of Florida; that's in law.
And so I ask you to consider this because there are going
to be others in the Cabinet in which you serve and their idea
will be ``Drill, baby, drill.'' This Senator is not objecting
to drilling if it's in the right places. But for all the
reasons that I've stated, I felt it incumbent for me to bring
it up to you since you are going to be, obviously, by virtue of
your testimony today, you're going to be a very, very
influential voice in the Cabinet, and I hope in the White
House.
So with that, Mr. Chairman, thank you for the extent to
which your, mine, and Mr. Ross's posteriors have endured almost
4 hours.
The Chairman. Thank you, Senator Nelson.
And, yes, this has been a lengthy hearing, but I think a
very, as you pointed out, productive one in terms of the
responses it has generated and the substance of the discussion.
There has been, I think, a wide range of questions posed from
Members of this Committee, who represent very different areas
of the country. But the range of the issues this Committee has
jurisdiction over is such that it requires a good amount of
knowledge on behalf of our nominee, and we certainly appreciate
the way in which he's stepped up to that challenge and
responded to our questions today.
I have one last question and then we'll let you get out of
here, and I think it's the only subject that hasn't been
covered today, or at least it hasn't been covered much, and
that is, Mr. Ross, in 2012, FirstNet was established as an
independent authority to implement a nationwide broadband
network dedicated to first responders. And as FirstNet makes
progress, and it has made some progress in acquisition
activities, consultation, and internal controls, it still faces
a good number of challenges.
So I want to emphasize that FirstNet is an independent
authority, but I want to ask also whether you will commit to
being engaged on the progress of FirstNet and to inform this
Committee if you observe any waste, fraud, or abuse within that
program should you be confirmed.
Mr. Ross. I certainly support the concept of FirstNet. I
gather there is some controversy in some states about it. And I
gather there have been some technical issues. I'm obviously not
yet conversant with them. But the idea of giving the first
responders all the tools that you can imagine that could be
useful has to be the right direction to go. So I'm certainly
supportive of that. And to the degree there are issues with it,
I'll do my best, if confirmed, to try to figure out how to
overcome them.
The Chairman. Well, and we look forward to having you bring
your expertise in solving problems and managing difficult
circumstances to bear on this issue as well.
I believe that's it. Given our hope to confirm Mr. Ross as
soon as possible, we'll keep the hearing record open until
12:30 p.m. tomorrow. During this time, Senators are asked to
submit any additional questions for the record, and upon
receipt, we would ask our nominee to submit written answers to
the Committee as soon as possible so that we can get about the
process of scheduling you and reporting you out of here and
getting you to the floor for a vote.
So with that, I thank Members of the Committee.
Thank you, Mr. Ross, for your willingness to serve our
country, and for those who came with you today, and your wife,
Hilary, for your patience. It's a long hearing, but it's an
important one.
So with that, this hearing will be adjourned.
Mr. Ross. Thank you, Senators.
[Whereupon, at 1:55 p.m., the hearing was adjourned.]
A P P E N D I X
Response to Written Questions Submitted by Hon. John Thune to
Wilbur L. Ross, Jr.
Question 1. The United States faces growing cybersecurity threats.
As recent news reports show, malicious hackers harm our economy and
national security through unauthorized access to private sector
intellectual property, sensitive data, and critical infrastructure.
Cyberespionage costs companies billions of dollars every year. While
Congress and the Department of Commerce's National Institute of
Standards and Technology (NIST) collaborated on the successful
Cybersecurity Framework for Critical Infrastructure, the battle is far
from over. Under your leadership, what will be the Department's
approach to working with industry in order to combat ongoing cyber
threats?
Answer. Cybersecurity is a huge and immediate problem.
Strengthening our cybersecurity is critical to U.S. trade and national
security. If confirmed, I will work proactively through NIST and with
our interagency and industry partners to address the cybersecurity and
privacy challenges that our Nation currently faces and will regularly
review the Department's efforts to ensure that markets remain open to
U.S. innovators.
Question 2. The Committee has struggled for some time with
receiving timely responses to letters, questions following hearings,
and other requests for information from NOAA. There have also been
instances when the Congressional Budget Office (CBO) has had a hard
time getting responses from NOAA, which has slowed down CBO's ability
to issue scores on bills the Committee is trying to advance. Such
delays make effective Congressional oversight and passing legislation
difficult, and are unacceptable. Do you commit to ensuring NOAA
provides me and my staff with timely and complete responses to
inquiries?
Answer. If confirmed, I will do my best to ensure that all
components of Commerce including NOAA will be responsive.
______
Response to Written Questions Submitted by Hon. Roger F. Wicker to
Wilbur L. Ross, Jr.
Question 1. The Department of Commerce has a critical role to play
in protecting U.S. industries from the unfair practices of our trading
partners. This has been particularly true over the last 30 years with
respect to our domestic softwood lumber industry, which the outgoing
administration recognized as a ``vital'' part of the U.S. economy just
last June.
Forest products are certainly a vital part of Mississippi's
economy, generating more than $1.1 billion in 2015. I support trade
practices that will allow the softwood lumber industry to continue to
thrive in my state and across the country. Over 350,000 Americans work
in the softwood lumber industry, and approximately 11 million private
U.S. landholders depend on the strength of that industry in managing
their own family-owned timberlands.
With the 2015 expiration of the softwood lumber agreement, the
Department of Commerce is once again at the forefront of protecting
U.S. jobs through its enforcement of the United States' trade remedy
laws.
Are you committed to the strong enforcement of our Nation's
antidumping and countervailing duty laws, and will the use and
enhancement of trade remedies be a priority for the Department?
Answer. I will work with all the stakeholders, including those at
Commerce and the other Federal agencies, industry and the Congress, to
ensure U.S. companies can compete in international markets while
protecting our national security and foreign policy interests. I favor
quotas to offset stumpage subsidies.
Question 2. Recently, the President-Elect announced a Manufacturing
Council to be coordinated by the Commerce Department and the
President's Strategic Policy Forum. Each of these initiatives provide
business leaders a forum to offer their expertise and advice to the
Administration on how to grow the economy and create jobs. As you may
know, multinational companies employ 20 percent of our Nation's
manufacturing force and pay salaries 30 percent greater than the
economy-wide average.
Will you commit to ensuring that these companies have a seat at the
table for both the Manufacturing Council and the President's Strategic
Forum?
Answer. If confirmed, I will do my best.
______
Response to Written Question Submitted by Hon. Deb Fischer to
Wilbur L. Ross, Jr.
Question. Mr. Ross, if confirmed, will you commit to taking all
steps needed to ensure that FirstNet will stay within its existing $7
billion authorization as the network is deployed, and that it will not
come back to seek more money from Congress? It is important to me, and
I expect that several of my colleagues on the Committee share this
view, that the network be built in a cost-effective and efficient way.
Answer. If confirmed, I look forward to being fully briefed on
FirstNet and its deployment strategy. Based on press reports, I am
concerned that existing delays point toward cost overruns and, if that
appears to be the case, will make corrective measures a priority.
______
Response to Written Questions Submitted by Hon. Dan Sullivan to
Wilbur L. Ross, Jr.
Question 1. Commercial and recreational fishing provide significant
contributions to our Nation's economy. Alaska's fisheries are by far
the largest in the nation, accounting for over 50 percent of total
domestic landings and more than 60,000 jobs--making the fisheries
industry our largest private employer. Alaska is the superpower of
seafood. In many communities, our fisheries are the backbone of their
economy. The Magnuson Stevens Fishery Conservation and Management Act
(MSA) is a big part of the reason that the United States has the
world's best managed fisheries, particularly in Alaska, where we have
no overfished stocks. A hallmark of the MSA is the Council process,
which are stakeholder driven decision-making bodies that allow those
most qualified and invested in the sustainability and health of the
resource, the fishermen themselves, to make decisions regarding the
management of their fisheries.
Do you share our commitment to sustainable management of U.S.
fisheries? Will you support maintaining the existing consensus-based
regional council system for fisheries management?
Answer. I share the Committee's commitment to sustainable fisheries
as embodied in the Magnuson-Stevens Act. Good science on fish stocks
and oceanic conditions is essential to meet the MSA's sustainable
fishery goals. I also support the Council system, though I recognize
that fishery management under the Council system faces different
challenges in each region and look forward to working with each region
to address those challenges.
Question 2. In the middle of 2014, Russia put an embargo on seafood
imports from the U.S. If we look at what the U.S. exported to Russia
before this ban took effect, we can extrapolate and estimate that we've
lost well more than $200 million in export value in those two and a
half years--most of which would have come from Alaska. In that same
period, the U.S. has imported roughly $1 billion in seafood from
Russia. We know that the Trump Administration places a high value on
having fair trade relationships our trading partners.
How will you use your post as Secretary of Commerce to restore
fairness to our seafood trade with Russia and other trade partners?
Answer. Russia undoubtedly and unfairly used seafood as a response
to our sanctions. We need to find a way to deal with it.
Question 3. There is a significant backlog of hydrographic charting
nationwide, which can adversely affect maritime commerce and increase
the risk of marine casualties. This is a huge problem in Alaska where
some areas off our coast have chart data collected back in the 1800s
when Russia still owned the territory. There is potential to address
this backlog through partnerships with the private sector, but there is
a need for leadership to make this happen.
Will you work with me to aggressively reduce this charting backlog
and increase the use of public private partnerships to achieve this
goal?
Answer. Yes. The charting back-log poses a significant challenge.
If confirmed I look forward to being briefed on this issue and working
with the Department and Congress to address it.
Question 4. For Alaska, NOAA's missions--managing our Nation's
fisheries, charting our waters, and providing accurate weather
forecasting--are of significant importance. Yet, much of the NOAA
staffing and infrastructure for Alaska is located elsewhere.
Will you work with me to ensure NOAA personnel and assets are
deployed in a manner that makes sense for both completing the mission
and the taxpayers?
Answer. Yes. I support cost-effective measures to improve the
NOAA's ability to carry out its mission, and, if confirmed, look
forward to working with Congress to implement those measures.
Question 5. The increasingly ice free Arctic is one of the most
dynamic regions of growth and investment on Earth. Russia continues to
make investments to develop the Northern Sea Route to not only export
natural resources from Russia's Arctic, but also to increase
international transshipment with Asian countries. The United States has
virtually no strategic infrastructure along its Arctic coastline. The
United States remains critically unprepared to manage an Arctic open
for business.
If confirmed, would you be willing to work with my office on
advancing ways to address infrastructure investment in the Arctic?
Answer. Yes. If confirmed, I look forward to being briefed on the
efforts to date to improve America's position in the Arctic and working
with Congress and the State of Alaska to enhance those efforts.
Question 6. In 2018, the International Whaling Commission will
consider quota renewal for our subsistence whaling communities in
Alaska. The Department of Commerce plays a critical role in preserving
the ability for our Alaska Native communities to continue whaling as
they have for millennia.
If confirmed will you work to ensure that our communities can
continue to hunt the bowhead whale?
Answer. Yes. If confirmed, I look forward to learning more about
the Department's work to support Alaska Native subsistence whaling.
______
Response to Written Question Submitted by Hon. Cory Gardner to
Wilbur L. Ross, Jr.
Question. Mr. Ross, in January, the President signed into law my
legislation, the American Innovation and Competitiveness Act, which I
introduced with Senator Peters, Chairman Thune, and Ranking Member
Nelson. This legislation promotes the great work the American
scientific community has done to make America globally competitive and
aims to refocus our research efforts to keep us competitive.
A portion of this bill highlights the national network of
Manufacturing Extension Partnerships (MEPs), which provide small
manufacturers with resources and guidance to improve manufacturing
processes and bolster domestic manufacturers. My state's MEP,
Manufacturer's Edge, has helped numerous Colorado manufacturers gain a
competitive advantage and the success of the MEP program is a great
example of valuable public-private partnerships.
Will you commit to supporting the MEP program to ensure that our
Nation's manufacturers have the tools that they need to compete on a
global playing field?
Answer. I have heard only good things about the NIST Manufacturing
Extension Partnership. If confirmed, I look forward to being fully
briefed on the program and will carefully consider it when allocating
resources within the Department.
______
Response to Written Questions Submitted by Hon. Todd Young to
Wilbur L. Ross, Jr.
Question 1. Intellectual property is crucial to the well-being of
our economy. More money is spent on Research & Development in the U.S.
than in any other country in the world. In fact, approximately 30
percent of the American workforce is employed either directly or
indirectly in IP-intensive industries. In order to continue
accelerating the pace of innovation in our economy, our trading
partners must all play by the same rules with respect to market access
and protecting intellectual property. How do you plan to utilize trade
negotiations to ensure that any potential new trade agreements achieve
true 21st century standards in pharmaceutical IP, including,
patentability, patent term linkage, patent linkage, and data protection
(at least 5 years for small and at least 12 years for large molecules)?
Answer. If confirmed, I look forward to being fully briefed on
intellectual property issues. Intellectual property rights should be
part of any new negotiations with our trading partners, and agreed upon
provisions in both existing agreements and new agreements need
enforcement vigorously and urgently.
Question 2. Mr. Ross, one issue we discussed in our meeting was the
sheer size and scope of the Commerce Department and the challenges that
alone presents to you in leading such a large organization. We also
discussed the many opportunities to streamline department functions,
reduce redundancies, and eliminate certain Federal Government functions
that should be left to the states or private sector. Can I get a
commitment from you that you will report to me within 180 days of your
confirmation on efficiencies you will recommend to streamline the work
of the Commerce Department?
Answer. If confirmed, I intend to conduct a thorough review of the
Department's programs and will urgently develop and report an
efficiency program.
______
Response to Written Questions Submitted by Hon. Bill Nelson to
Wilbur L. Ross, Jr.
Question 1. Last Congress, this committee hosted two weather-
related hearings: one on the communication of weather information and
the other on hurricanes. Since you live on one of Florida's beautiful
barrier islands, I know you personally understand these issues. To save
lives and property, we simply must have accurate, timely, and
consistent forecasts delivered in a way that is meaningful so that
people take action to protect themselves. This is the essential
function of the National Weather Service.
Would you agree with me, then, that the dedicated employees of the
National Weather Service--like trained meteorologists--are essential
public safety personnel? There are vacancies at the National Weather
Service that threaten public safety, and I can tell you that rehiring
those positions takes months on end. NOAA has been working to improve
the efficiency of the hiring process.
Answer. I agree that the National Weather Service serves an
essential function. Timely and accurate weather information is crucial
to protect both lives and property, and is also essential to the smooth
functioning of numerous areas of commerce, including aviation,
shipping, fishing and farming, to name just a few. Proper staffing the
NWS is therefore important and, if confirmed, I intend to review the
current efforts and see how they can be improved.
Question 2. Will you commit to addressing the employment vacancies
and exempting National Weather Service public safety employees from any
hiring delay or freeze?
Answer. If confirmed, I will do my best to quickly fill all
essential positions at the National Weather Service.
Question 3. In 2007, the National Science Board recommended the
establishment of a National Hurricane Research Initiative. At the time,
Senator Mel Martinez and I introduced legislation to create one. It
didn't pass, but NOAA initiated one anyway and called it the Hurricane
Forecast Improvement Project. The goal was to reduce the error of
hurricane track and intensity forecasts by 20 percent within five years
and by 50 percent within 10 years. NOAA has met the five-year goal,
which is excellent. But it is essential that we continue that progress
and meet the ten-year goal. That's why I worked with the former
Chairman of this Committee, Senator Rockefeller, to hold hearings on my
bill to congressionally authorize the program. That is why I have
worked with Senator Rubio for two Congresses in a row now to authorize
the program. Sure enough, in 2016 we had an active hurricane season in
Florida, which devastatingly cost lives, damaged property, and harmed
our economy. We intend to get the bill signed into law, but in the
meantime will you also commit to maintaining and supporting NOAA's
Hurricane Forecast Improvement Program?
Answer. As a resident of Southern Florida, I certainly appreciate
how important it is that our communities have accurate warnings and
forecasts. If confirmed, I look forward to being fully briefed on the
National Weather Service and its programs. As I stated at the hearing,
it is my experience that European forecasts have been more accurate,
and I am optimistic that the new satellites that NOAA is launching will
provide better information that will restore the NWS to world
leadership in terms of accurate and timely weather forecasting. I am
pleased to learn that the Hurricane Forecast Improvement Project has
been successful to date, and I look forward to learning more about it
and working with you on this important issue.
Question 4. Your questionnaire mentions that one of the tasks at
the Department of Commerce requiring dedicated management attention is
``launching three more NOAA satellites.'' To which satellites are you
referring?
Answer. My understanding is that the next three scheduled launches
are the JPSS-1 polar orbiting satellite in 2017, and the GOES-S and
GOES-T geostationary satellites in 2018 and 2019, respectively. These
are the satellites to which I was referring. These satellites are a
significant expense item in the Department's budget that must be kept
on track.
Question 5. You graciously provided responses to written questions
that I sent you prior to this hearing. One of those questions had to do
with NOAA's aging fleet of ocean-going ships. I was glad to see in your
answer that you know from experience how older inefficient vessels can
limit the mission of a fleet. NOAA maintains a fleet of aircraft from
which they take scientific readings, like the fleet of hurricane
hunters that fly around, on top of, and even right through the monster
storms. These hurricane hunter planes are aging. In fact, during
Hurricane Hermine, NOAA had to ground its one and only Gulfstream jet
to do emergency repairs. Luckily, the National Science Foundation and
the University Corporation for Atmospheric Research were able to step
in so that they still got the measurements we needed to know what the
storm would do. Would you agree with me that it's too risky to not have
a backup plan for planes that are aging?
Answer. As you know from my previous answer, my experience with
managing shipping assets makes me well acquainted with the costs and
inefficiencies of operating older equipment. If confirmed I look
forward to learning more about the status and issues associated with
the hurricane hunter aircraft and will weigh carefully the options for
their expeditious replacement if needed.
Question 6. This committee led the effort to create the National
Network for Manufacturing Innovation, currently known as Manufacturing
USA, which is a network of public-private institutes that promote
advanced manufacturing in the United States. The Manufacturing USA
network is spearheaded by an interagency office housed at NIST.
President-elect Trump has pledged to bring well-paying manufacturing
jobs back to the United States. In this effort, if confirmed, will you
continue to support the Manufacturing USA network in order to promote
the growth of advanced manufacturing in the U.S.?
Answer. I have heard only good reports about the Manufacturing USA
program, and look forward, if confirmed, to a thorough briefing on it.
As you are aware, President Trump intends to make increased
manufacturing in the United States a priority, and programs like
Manufacturing USA would appear to be in line with that goal.
Question 7. Since the E.U. has very few phosphate reserves, they
rely heavily on imports. However, the E.U. levies a 6.5 percent tariff
on U.S. phosphate producers, while the U.S. levies no tariff on
phosphate entering our country. That tariff largely shuts out U.S.
producers from European markets, leaving it to producers from China,
Morocco and other countries to export to the E.U. What do you plan to
do to address this problem?
Answer. I believe in fairness, equality and reciprocity in trade
relations. If confirmed, I will look into the situation with respect to
phosphates and other items where exports from the United States are
treated differently from imports into the United States. To the extent
there are existing tools available to the Department to address the
issue I would give serious consideration, after consultation with the
White House and Congress, to making expeditious use of those tools.
Question 8. According to some news reports, President-elect Trump
detests multilateral trade agreements. What do you believe is the best
way to harmonize regulatory standards across a variety of trade
partners, particularly with regard to the automotive industry, medical
device industry, boating industry, aerospace industry, and other high
tech industries?
Answer. One benefit of reviewing and re-opening as needed our
existing trade agreements, as well as negotiating agreements with new
partners, is that the negotiations present an opportunity for the
United States to harmonize regulatory standards in different industry
sectors through these new agreements. By negotiating on a bilateral
basis, the United States can maintain a consistent position with
respect to standards and each negotiating partner can decide for
themselves whether accepting our proposed standards is an acceptable
exchange for access to our markets.
Question 9. You have stated that a top priority will be making
changes to the North American Free Trade Agreement (NAFTA). Please
provide some examples of how you would like to change NAFTA?
Answer. It is obviously premature to discuss the details of what
might be negotiated, but during the campaign concerns with compliance
and with trade agreement details were frequently raised. NAFTA issues
of concern include rules for country of origin, dispute resolution
mechanisms, and simultaneity of concessions. Addressing these concerns
will be part of any future negotiations.
Question 10. In Section 9 of your Ethics Agreement, you commit to
divesting yourself of significant assets within 90 days and additional
assets within 180 days. How do you intend to handle potential conflicts
of interest that may arise during this extended period of retained
ownership?
Answer. In the event that a matter involving an asset I still hold
should arise, I assure you that I will recuse myself in accordance with
the commitments that I made in my ethics agreement. Further, I will at
all times rely on the monitoring and judgment of the Department's
ethics officials to ensure that I do not participate in any matter
about which they advise me that a conflict of interest would arise.
Question 11. If confirmed, you will be responsible for overseeing
the decennial census in 2020, which is required by the U.S.
Constitution and used to apportion seats to states for the House of
Representatives, redistricting state legislatures, and distributing
Federal funds to local communities. The 2010 Census was far costlier
than initial estimates due in large part to poor planning and lack of
oversight of its acquisitions. I am concerned that the Census Bureau is
repeating some of the same mistakes.
Will you commit to working with the administration to make sure it
has the necessary resources and provide regular briefings to Congress
to ensure that the Census Bureau effectively manages the 2020 Census so
that it is completed on time, on budget, and accurately?
Answer. I will do my very best to ensure that there is a full, fair
and accurate 2020 Census, and I look forward to working with the Census
Bureau, the Congress and the public in this regard.
Question 12. The American Community Survey (ACS), which replaced
the census long form, is conducted every year, and responses are
mandatory. The purpose of the ACS is to get more timely and accurate
information about communities across the country so that local and
state governments and the Federal Government can make informed
decisions about the best allocation of resources. Nevertheless, some
are concerned that the ACS is too detailed, and privacy advocates worry
about the amount and type of information the Federal Government
collects. Do you support efforts to keep the ACS mandatory?
Answer. If confirmed, I look forward to being fully briefed on the
American Community Survey. I would like to work with the Census Bureau,
the Congress and the public to address any concerns and make the ACS as
effective as possible in providing full, fair and accurate census data.
______
Response to Written Questions Submitted by Hon. Maria Cantwell to
Wilbur L. Ross, Jr.
Question 1. I am concerned about the new Administration's
orientation toward Russia and their autocratic leader, Vladimir Putin,
especially after the intelligence community's stunning conclusions
about Russia's attempts to influence our elections.
You, personally, have experience working with people who are quite
close to President Putin. After the Bank of Cyprus was forced to
confiscate deposits to stay afloat, many from wealthy Russians
suspected of using Cyprus for laundering money and evading taxes back
home, you led a group to purchase a large portion of the bank, helping
bail out many of these Russian-insider investors.
Several close Putin allies are large investors in the bank and
serve on the Bank's board of directors. You've agreed to step down from
your positon as vice chair of that very board, and divest yourself of
those holdings, but obviously those relationships remain.
How will you shift your focus to represent the interest of the
American people instead of your former Russian business partners?
Answer. The Russians who invested in the Bank of Cyprus were not my
partners. The Bank of Cyprus is a publicly traded company listed on the
London Stock Exchange. I had never had dealings with any of them prior
to my investment in the Bank. I have only met once, for one hour, the
principal Russian investor, and then only after he had invested in the
Bank.
Question 2. The National Telecommunications and Information
Administration (NTIA) is principally responsible for advising the
President on telecommunications and information policy issues.
Historically, NTIA's programs and policymaking focus largely on
expanding broadband Internet access and adoption in America, expanding
the use of spectrum by all users, and ensuring that the Internet
remains an engine for continued innovation and economic growth. These
goals are critical to America's competitiveness in the 21st century
global economy and to addressing many of the Nation's most pressing
needs, such as improving education, health care, and public safety.
In addition NTIA represents the President in both domestic and
international telecommunications and information policy activities.
NTIA is also a leading source of research and data on the status of
broadband availability and adoption in America.
Promoting a free and open Internet and unleashing spectrum for
broadband applications have been two key drivers of domestic economic
growth. And promoting these policies overseas have helped our tech
companies gain and maintain strength. How do you intend to continue
these policies in order to create jobs and promote the competitiveness
that undergirds the success of the Internet economy?
Answer. If confirmed, I will work with NTIA to promote the
availability of spectrum for broadband applications and new innovation,
including the Internet of Things, while ensuring that the long-term
needs of the United States continue to be met.
Question 3. The economy's future success depends on delivering
educational opportunities in computer science based on proven
strategies. Research funded through this program will enable educators
to teach this critical subject more effectively and bring new skills to
underserved communities. Computing jobs are growing in every industry
and in every state. Despite this compelling fact, there are currently
more than 20,000 open computing jobs in Washington state, and more than
500,000 nationwide.
The U.S. Department of Labor estimates there will be 4.4 million
jobs in computer and information technology occupations by 2024.
Despite the clear need for a workforce with coding and programming
skills, students in 75 percent of our Nation's schools graduate high
school with no computer science education.
The American Innovation and Competitiveness Act S. 3084 which
passed at the end of last year represents an important in investment in
American ingenuity and continued and research and development to
promote ingenuity and innovation.
It improves the investment in computer science education by
creating a program within commerce's National Science Foundation to
promote research on computer science teaching models, tools, and
materials, with a focus on instruction for low-income, rural, and
tribal students.
The program also emphasizes preparing incoming teachers to
integrate computer science and computational thinking into their
classrooms in innovative ways.
What is your view on the role of government to support science
research and computer science learning?
Answer. I agree that science research and computer science learning
are important to the economy. If confirmed, I look forward to working
with the Department and Congress on this important issue.
Question 4. Mr. Ross, I want to ensure that you are aware of an
ongoing dispute between the U.S. and the European Union (EU) regarding
illegal aircraft subsidies. Last September, the World Trade
Organization (WTO) ruled that European governments had not removed the
harm caused to America's aerospace sector by $17 billion of illegal
subsidies and--to add insult to injury--found that the Europeans have
dispensed and additional $5 billion in illegal subsidies for the
development of the Airbus A350 wide body aircraft. That brings the
total of illegal European subsidies for Airbus to $22 billion.
In fact, the original WTO panel concluded: ``It is in our view
clear that Airbus would have been unable to bring to the market the
Large Commercial Aircraft (LCA) that it launched but for the specific
subsidies it received from the European Communities and the governments
of France, Germany, Spain and the United Kingdom.'' This company--that
the WTO found would not have existed but for these huge government
subsidies--drove McDonnell Douglas and Lockheed out of the commercial
aircraft business, taking with them thousands of American jobs.
Government subsidies to Airbus continue to destroy American jobs.
As you may know, Boeing manufacturers the vast majority of its
commercial aircraft in my home state of Washington. And, the export of
these aircraft support high-skilled jobs in Washington State and
throughout the country. According to the Commerce Department: ``In
2015, the U.S. aerospace industry contributed $144.1 billion in export
sales to the U.S. economy. The industry's positive trade balance of
$82.5 billion that year was the largest trade surplus of any
manufacturing industry, supporting high-wage jobs for hundreds of
thousands of American workers.''
It is imperative that U.S. companies compete with overseas rivals
on a level playing field. If confirmed, I would urge you and the rest
of the incoming Administration to continue to press the Europeans to
stop massively subsidizing Airbus aircraft.
Answer. Based on everything I have read the WTO was correct in
finding that Airbus received major illegal subsidies but erred in its
finding that Boeing received illegal state support.
Question 5. American competitiveness in critical parts of the
global innovation economy is at risk. While the U.S. economy continues
to rely on longstanding principles of private markets and competition,
U.S. companies are increasingly facing competition in a host of
industries from foreign companies backed by the power of their home
governments.
My colleagues and I in Congress are troubled to observe that
certain foreign governments are subjecting American companies to
antitrust investigations that lack due process protections in an effort
to transfer U.S. patented technology to their domestic companies, or to
insulate their domestic companies from U.S.-based competition. Korean
and Chinese antitrust investigations in particular have targeted U.S.,
European, and other Asian life sciences companies, automobile
companies, and technology companies.
Over the past two years, we are aware of nearly 30 investigations
across a range of industries--including manufacturing, life sciences,
and technology--brought against foreign companies by Chinese and Korean
antitrust authorities.
In particular, foreign governments are using their antitrust
authority to diminish U.S. intellectual property rights, including
patent licensing. As you know, our patent system has been a driver of
American innovation since the founding, and the protection of
intellectual property has been a key component of American economic and
foreign policy.
The use of antitrust as a tool of industrial policy undermines U.S.
patent rights, suppresses innovation, and puts U.S. competitiveness in
the industry at risk. In addition, antitrust investigations in China
and Korea have been marred by serious procedural deficiencies that
violate fundamental norms of due process and are inconsistent with
international trade obligations.
How should the U.S. respond to these aggressive tactics to steal
U.S. intellectual property? What mechanisms are available to U.S.
companies subjected to industrial policy motivated competition
investigations in foreign jurisdictions? U.S. trade agreements include
important Intellectual Property (IP) and due process protections. If
you are confirmed, how will ensure that our trading partners are living
up to their end of the bargain to treat our companies fairly, including
in competition proceedings? What actions do you recommend Congress
pursue to address these challenges?
Answer. I regard abusive ``anti-trust'' proceedings as one of the
most insidious means of intellectual property theft and will work hard
to prevent the perpetrators from benefitting from such activities. It
may well be necessary for there to be Congressional action to deal with
this problem and I look forward to working with you to determine if
such action would be effective.
Question 6. The U.S. semiconductor industry serves as an
instructive example of the impact of foreign antitrust policy.
According to a 2016 Report from the U.S. Patent and Trademark Office
and the Economic and Statistics Administration, semiconductors are
among the highest-value intellectual property-intensive exports from
the United States, accounting for over $54 billion in exports. As a
recent report on the semiconductor industry from the President's
Council of Advisors on Science and Technology highlights, foreign
government efforts to support their domestic companies through
antitrust enforcement against foreign companies comes as several Asian
companies position themselves to dominate the 5G wireless standard,
which the international standards community is currently developing.
The use of antitrust as a tool of industrial policy undermines U.S.
patent rights, suppresses innovation in wireless technology, and puts
U.S. competitiveness in the industry at risk.
Are you concerned that these policies, if left unchecked, could
result in foreign control of the 5G wireless standard? Do you agree
that foreign control of the state-of-the-art communications standard
would have serious implications for U.S. privacy and cybersecurity for
years, if not decades? If confirmed, how would you address these
national security concerns? How can we protect U.S. innovators from
being eclipsed by government-backed competitors? If confirmed as
Secretary of Commerce, what policies or initiatives would you pursue to
bolster U.S. innovation and competitiveness in the global marketplace?
Answer. It is my understanding that multiple bureaus of the
Department are involved in tracking the development of the 5G wireless
standards. I share your concern about foreign efforts to control
standards or processes that are essential to continued innovation in
communications and other important economic sectors. Standard setting
is among the functions of NIST and, if confirmed, I do not intend to
yield standard setting to foreigners.
Intellectual property theft by government-backed competitors and
State-owned enterprises is also an issue, and if confirmed I will work
with the Bureau of Industry and Security, USPTO and other elements of
the Department to address the multiple elements of this issue.
Strengthening our cybersecurity is critical to U.S. trade and
national security. If confirmed, I will work proactively with our
interagency and industry partners to address the cybersecurity and
privacy challenges that our Nation currently faces and will regularly
review the Department's efforts to ensure that markets remain open to
U.S. innovators.
Foreign control of the semi-conductor industry is also a critical
issue. If confirmed, I will work with the Bureau of Industry and
Security and the Committee on Foreign Investment in the United States
(CFIUS), along with other elements of the U.S. Government, to
counteract this problem.
Question 7. Washington state's export markets are our North
American partners as well as Asia. Exports to Mexico, Canada, and China
make up more than a third of Washington's total exports. These markets
have allowed our state to enjoy a tremendous trade surplus and to
create and maintain jobs, something I imagine you see as a goal for the
Nation. However, the incoming Administration's proposed trade policies
will likely have a negative effect on my state's trade. Do my apple,
pear, and cherry growers, who together export more than $180 million of
product to Mexico every year, need to worry about becoming the victims
of a major trade dispute? How are your trade policies going to work for
all of us and avoid jeopardizing the gains we've made in international
trade?
Answer. The choices are not NAFTA or a trade war. The President-
elect and I do favor renegotiation. Because agriculture is one of the
activities that Americans do best, if confirmed, one of my goals in a
renegotiation would be to increase our agricultural exports.
Question 8. Our aerospace industry relies heavily on supply chain
integration with Mexico and Canada, our North American partners. This
is a sector where the U.S. value added is at 60 percent. The NAFTA
agreement has enabled us to create a seamless supply chain, where
inputs often cross the border multiple times before going into a final
product. This has enhanced North America's competitiveness, allowing
our industries to create 21st century jobs for America.
You are likely familiar with similar cross-border synergies, having
served as Chairman of the International Auto Components Group.
Dismantling the agreement would severely impact Washington's aircraft
industry and our entire state's economy. How will the incoming
Administration's proposed policies ensure that these longstanding ties
between private businesses continue to thrive?
Answer. I am thoroughly familiar with the necessity for fully
seamless supply chains.
Question 9. You have been a vocal advocate of tariffs as a way to
protect domestic manufacturers and increase domestic employment, but
data consistently proves that imposing tariffs on imports does little
to bring jobs back to the United States. For example, when the United
States imposed significant duties on Chinese tire imports in 2009,
estimates found that--at best--1,200 jobs were saved in the United
States, but costs to American consumers went up by about $1.1 billion.
That works out to a cost of $900,000 spent by Americans per job
saved. Tariffs on other products would likely have the same effect--few
jobs saved, since manufacturing would likely either shift to other low-
cost production sites or to more automation, rather than hiring more
workers at home.
Separate from that, of course, is the jobs that will be lost at
home when our trading partners respond in kind by putting tariffs on
imports into their countries or stop buying the goods and services of
U.S. companies operating in their markets directly. Are you concerned
the tariff proposals you are considering may ignite trade wars?
Answer. As I said at the hearing, tariffs are simply one tool in
our trade toolbox. Used properly, tariffs can be an effective tool to
redress dumping and other unfair trade practices.
Question 10. Thousands of U.S. businesses, large and small, have
customers overseas. With the explosion of cloud computing, nearly all
of them depend on their ability to transfer information rapidly and
efficiently to and from facilities and customers outside the United
States. Digitally-enabled trade to and from the United States amounts
to more than $500 billion and generated a services trade surplus of
over $230 billion. It has played a role in the creation of up to 2.5
million U.S. jobs. But digital trade is vulnerable to protectionist
restrictions imposed by foreign governments restricting the free flow
of data and requiring that it be stored within foreign countries. These
forced localization restrictions are increasing across the globe. The
Commerce Department has been a leader in U.S. efforts to combat such
restrictions. As Secretary, what efforts will you undertake with
foreign governments to enable digital trade to thrive and grow?
Answer. The United States must ensure continued trust in the
privacy and security of the Internet, which is necessary to facilitate
the continued free flow of information around the world. American
businesses in the digital space, both large and small, depend on an
online digital ecosystem that has the confidence of potential users and
customers. That is why, if confirmed, I will ensure the Department of
Commerce has a seat at the table, alongside intelligence, diplomatic
and other agencies, in all policy discussions related to practices that
may affect digital data flows.
Question 11. American businesses of all sizes are world leaders in
the new data-driven economy, driving the fields of cloud computing,
data analytics, the Internet of Things, and others. They depend on the
ability to transfer information across borders to and from the United
States. However, many foreign governments are restricting the free flow
of data. We are increasingly seeing policies that try to force U.S.
businesses to shed jobs in the U.S. and localize them into foreign
markets. Congress has called for action against digital trade
impediments. The President has extensive trade enforcement authorities.
As Secretary, what actions will you pursue to obtain a level playing
field for America's digital trade champions?
Answer. I oppose localization of data and if confirmed will work
hard to protect our companies against it. It may well be useful to take
some countervailing measures. As to Congressional action, if confirmed,
I will work with Commerce Department's General Counsel to determine
whether our response to the problem might necessitate legislation.
Question 12. Transatlantic data flows are enormous, and critical to
U.S. business and to job growth in the United States. But the European
Union repeatedly has destabilized data transfers to the United States,
most recently by invalidating the Safe Harbor Framework administered by
the Department of Commerce. Commerce led successful efforts to put a
successor agreement, the U.S.-EU Privacy Shield, in place in 2016.
Close to 1,800 companies of all types and sizes already have joined or
are in the process of signing up for the Privacy Shield. It is of
particular benefit to smaller and medium-sized companies. European
privacy advocates have challenged the Privacy Shield, however,
including in a pending European court case. As Secretary, what efforts
will you take to implement and defend this important agreement?
Answer. If confirmed, as Secretary of Commerce I will be
responsible for promoting the foreign and domestic commerce of the
United States. I will do my best to do so in all areas, including with
respect to digital trade and data privacy. Should the European courts
find any essential part of the Privacy Shield is contrary to law, the
Department will once again lead efforts to find a solution.
Question 13. Cloud computing, data analytics and other
technological advances have led to incredible growth in the amount and
economic importance of data flowing between the United States and
Europe. Small and large businesses of all kinds in the U.S. rely on
data transfers to compete and grow in the EU. However, these data flows
to the U.S. have been under attack in Europe. One of the most serious
problems recently was the invalidating of the Safe Harbor Framework
administered by the Department of Commerce. Concerns about U.S.
Government surveillance of European communications were a principal
cause of this attack on data flows to the US. The Commerce-negotiated
successor agreement, the U.S.-EU Privacy Shield, has been enormously
important for U.S. businesses to operate and expand in Europe. The
ongoing success of the Privacy Shield requires European confidence that
our government sufficiently respects foreign privacy interests when
conducting national security surveillance. As Secretary, will the
Commerce Department work with U.S. intelligence and diplomatic agencies
to maintain the level of trust on which the free flow of data for
commercial purposes depends?
Answer. I am a strong believer in the benefits of cloud computing.
If confirmed I look forward to learning more about the Department's
work in this area and what additional steps the Department can take,
both alone and in concert with other Federal agencies, to facilitate
cloud computing and other forms of electronic commerce and
communications.
Question 14. The Commerce Department has an important role in
licensing and enforcing U.S. export controls on dual use goods that
could be used for either civilian or military purposes. There is always
tension between promoting exports and the free flow of commerce and
protecting U.S. national security. It is also difficult for the U.S. to
keep up with technology as it rapidly improves to keep U.S. export
policy up to date with current technology. What are your priorities for
updating U.S. Export policy? How will you balance the promotion of
exports and the control of technology to protect U.S. national
security?
Answer. I will work with all the stakeholders, including those at
Commerce and the other Federal agencies, industry and the Congress, to
ensure U.S. companies can compete in international markets while
protecting our national security and foreign policy interests.
Question 15. We do not want to give Russia, China or North Korea
any additional tools to hack into U.S. systems and infrastructure. Our
power grids and other infrastructure are already way too vulnerable.
How will you make sure that Russian and other foreign companies do not
end up with controlled U.S. Technology given some of their recent
aggressive and hostile actions against the United States?
Answer. If confirmed, I will review the existing controls with the
relevant stakeholders to ensure the controls are sufficient to prevent
sensitive U.S. technology from ending up in the wrong hands.
Question 16. Mr. Ross, you have been quoted as being against free
trade agreements including the Trans-Pacific Partnership and have
stated that the U.S. needs a ``more radical, new approach to
government.'' The TPP is significant as it includes for the first time
ever in a fair trade agreement provisions protecting wildlife and farm
animals, and some of the toughest environmental protections of any
trade agreement in history. What does your approach to trade agreements
look like and does it include consideration for environmental, farm
animals, and wildlife protections?
Answer. Those are certainly appropriate topics for negotiations.
But I am a big believer in quantification of objectives and having
clear tools for enforcement.
Question 17. As the Secretary of Commerce, you would oversee NOAA,
and the National Weather Service. President-Elect Trump has called for
a ``hiring freeze on Federal employees to reduce the Federal
workforce.'' This freeze would not apply to the military, or to jobs
that impact public health and safety.
Mr. Ross, if confirmed, would you determine that National Weather
Service employees fall under the latter category: jobs that impact
public health and safety? As of mid-December, more than 650 jobs were
vacant at the National Weather Service, including many that are deemed
``Emergency Essential'' by the Department of Commerce. Will filling
these vacancies be a priority for you, if confirmed? What will you do
to ensure that a huge employee deficit, like the one impacting the
National Weather Service today, does not happen during your tenure as
Secretary?
Answer. An early priority, if confirmed, will be to meet with the
management of the National Weather Service to understand why they have
so many positions unfilled. I will take steps to see that ``emergency
essential'' personnel responsibilities are being appropriately handled,
and if I am convinced the NWS are understaffed I will work diligently
to address the issue.
Question 18. Under your leadership, what improvements could be made
to the operations, management and effectiveness of the National Weather
Service? Do you see opportunities for increased stakeholder engagement
in identifying and addressing gaps in technologies and research?
Answer. If confirmed, I look forward to getting fully briefed on
the Weather Service and its programs. I agree the NWS plays a critical
role in protecting lives and property, and I look forward to working
with you and Congress to address these important issues.
Question 19. One of the primary criticisms of the Weather Service
is the fact that the operational forecasters at The National Weather
Service are in a different silo compared to the NOAA scientists in the
Office of Atmospheric Research (or OAR) who are tasked with research
and development of new weather forecasting models, etc. While we have
been aware of this problem for some time, very little has been done to
address it. How do you propose we improve research, development and
operations of weather research and operations between the National
Weather Service and the Office of Atmospheric Research?
Answer. See the answer to the previous question.
Question 19. In 2011, Washington state became the first state to
receive full dual polarization Doppler radar coverage--the best Doppler
radar technology available. Despite this upgrade, there are still
Doppler radar coverage gaps, including a large gap in Central
Washington. Forecasting in this region is essential for emergency
responders who need accurate and timely weather data to safely fight
wildfires. This gap also impacts highly populated areas, including
Seattle and Tacoma, because it is difficult to track weather systems
approaching from the East. I am concerned that NOAA does not have a
plan to fill the Doppler radar gap in Central Washington. As Secretary,
will you work with me to address the Doppler radar gap in Central
Washington?
Answer. I agree that the NOAA plays a critical role in protecting
lives and property through accurate and timely weather forecasting. As
a resident of Southern Florida, I certainly appreciate how important it
is that our communities have accurate warnings and forecasts. If
confirmed, I look forward to working with you on this issue.
Question 20. Every day men and women serving in the Coast Guard
risk their lives to carry out search and rescue missions. On average,
the Coast Guard conducts 45 search and rescue cases per day with many
of these operations occurring in very remote areas of our country.
Success of these missions and the lives of these brave men and women
are heavily reliant on timely and accurate weather forecasts.
If confirmed, what is your plan to improving weather data,
forecasting, and modeling for remote areas of the country and ensuring
these weather products are readily available to the Coast Guard and the
public? There are a number of heavy weather stations in Washington
state. These stations are in areas with significant oceanographic and
atmospheric monitoring needs to ensure safe transportation there. Often
buoys are damaged by extreme storms, or are lost at sea. Yet due to
aging vessel assets and vessel availability, sometimes there is a long
lag before NOAA weather buoys can be repaired. What will you do to
improve response to broken and lost oceanographic infrastructure,
particularly in areas that are known to be dangerous to mariners, as
well as areas that are critical for Coast Guard search and rescue
operations?
Answer. I support NOAA's fleet modernization plan, which would help
to address this issue. A clear goal of the Weather Service is to
provide accurate and timely weather forecasting to the public, and if
confirmed I look forward to learning more about the situation for
Washington state and remote communities.
Question 21. Believe it or not--fisheries will be a big part of
your job as Secretary of Commerce. Part of supporting fishing and
maritime jobs, is ensuring that we will continue to support and rebuild
sustainable fish stocks that those jobs depend on. Will you support
Pacific salmon funding including: Pacific Coastal Salmon Recovery Fund,
the Mitchell Act, Salmon Management, Protected Species: Salmon, and
hatchery funding?
Answer. I have not yet been briefed on Pacific salmon fishing
issues. If confirmed, I look forward to working with you on this
important matter.
Question 22. As Secretary of Commerce, you would oversee programs
critical to job growth in Washington state's $30 billion maritime
sector. Fishing supports shipbuilding, gear manufacturing, seafood
processing, restaurant, trade and other jobs. Will you commit to making
fishing jobs a priority of the Department of Commerce? What is your
plan to support fishing and maritime jobs in the United States?
Answer. I support sustainable fishing under the Magnuson-Stevens
Act. By maintaining healthy fish stocks the Department of Commerce
ensures the continuation of good jobs in the commercial and
recreational fisheries and the marine industries that support fishing.
Question 23. I understand that as a key part of the business plan
for Diamond Shipping company--one of your ventures--was to build all 33
tanker vessels overseas, in South Korea and Japan not in American
shipyards. While you acquired this company when these 33 vessels had
already been built, your S1 form submitted to the SEC in 2014 indicated
that Diamond Shipping intended to build 6 new medium range tanker
vessels in South Korea, for delivery in 2014 and 2016--when you had
acquired shares and served as the Director. I am concerned that this is
another example of exporting potential American middleclass jobs
overseas, when we need good shipbuilding jobs here at home. As
Secretary, what will you do to support American shipyards?
Answer. I support NOAA's fleet modernization plan. All NOAA vessels
are U.S. flagged vessels built and repaired in U.S. shipyards.
Question 24. Yes or no: Do you support the Jones Act?
Answer. As I said at the hearing, I support the Jones Act and
believe it has been instrumental in maintaining American shipbuilding
jobs.
Question 25. In an effort to support American shipyards, what
shipbuilding, training and other maritime workforce investments will
you consider as a part of the Trump infrastructure plan?
Answer. If confirmed, I look forward to working with the President
and Congress to enact an infrastructure plan that maximizes jobs for
American workers while improving our Nation's economic foundation and
enhancing our technological leadership.
Question 26. Thousands of commercial, subsistence and recreational
fishermen have contacted me about protecting salmon in Bristol Bay,
Alaska. Bristol Bay is home to the largest sockeye fishery in the
world, and one of the largest Chinook fisheries. The commercial sockeye
fishery is worth $1.5 billion alone, supporting thousands of jobs in
Washington state.
According to EPA's Draft Watershed Assessment released on April 30,
2013, ``An Assessment of the Potential Mining Impacts on Salmon
Ecosystems of Bristol Bay, Alaska'' (EPA 910-R-12-004Ba), the proposed
Pebble Mine threatens Bristol Bay salmon habitat. The Pebble Mine would
be one of the largest hard rock mines in the world and the largest
copper porphyry mine in the United States. Water contamination and
habitat loss from the construction and operation of a hard rock mine in
Bristol Bay would put thousands of fishery-related family wage jobs at
risk.
NOAA is responsible for research and aspects of salmon management
in the Bristol Bay region. What is your position on the proposed
Bristol Bay Pebble Mine? Are you prepared to direct NOAA fishery
scientists and economists to become more engaged with the EPA?
Answer. NOAA scientists will provide comments on EPA permits for
matters under NOAA's jurisdiction as part of the National Environmental
Policy Act (NEPA) process. I look forward to reviewing those comments,
and discussing this issue with you as it unfolds.
Question 27. In addition to the $1.5 billion annual economic value
of the Bristol Bay sockeye fishery, are you aware of the importance
Bristol Bay salmon to Alaska Native subsistence users? Subsistence
salmon harvest is 60 percent of the overall diet of most area
residents. Not only is subsistence salmon at the center of Alaska
Native culture, but today, an economic imperative as well. Are you
familiar with the cost of living in rural Alaska? The cost of one
gallon of milk can be as high as $10.00. There is no replacement value
for subsistence fish that is a necessary part of the subsistence diet.
How do you view the Department of Commerce's role in ensuring
subsistence salmon users have healthy salmon runs for generations to
come? How will your agency work with Alaska Native people to ensure
they have a voice in fisheries management and research?
Have you ever consulted with a federally-recognized Tribe? What
training have you received regarding the Federal Government's treaty
trust responsibility to Indian Tribes? What training will you receive
to understand and participate in government to government consultation
with Indian Tribes?
The Council on Environmental Policy in the Executive Office of the
President has been working with the Department of Commerce and NOAA to
better support the Treaty Rights At Risk Initiative of the Northwest
Indian Fisheries Commission. Will you support this work to ensure our
tribes have fish for generations to come?
Answer. If confirmed, I look forward to being involved in
government to government consultations with Federally-recognized Tribes
and being briefed on the treaties and statutes that are in place to
protect subsistence fishing resources in Alaska and the Pacific
Northwest. It is my understanding that the United States has been a
global leader in ending high seas driftnet fishing practices that
adversely impacted U.S. and Canadian salmon, and that the North Pacific
Fishery Management Council regularly adopts fishing quotas and bycatch
limits that are designed to ensure sustainable subsistence catches in
Alaska.
Question 28. The Commerce Department undertakes many important
missions, and fisheries management is one of the most significant. As
you know, commercial and recreational fishing provide material
contributions to our Nation's economy. In 2015, the commercial marine
fishing industry contributed $48.7 billion to the gross national
product, and U.S. consumers spent an estimated $96 billion on fishery
products. Some 8.9 million marine recreational anglers fished in 2015,
contributing additional billions to the U.S. economy. Over the past
twenty plus years, this Committee has overseen a significant
improvement in the status of the Nation's fisheries. Since 2000, NOAA
Fisheries reports that 40 formerly overfished species have been rebuilt
and the number of overfished species has dropped from 92 to 38.
Continuing this positive trend remains one of the Commerce Department's
most important missions, since struggling fish populations curtail
fishing opportunities.
Do you share our commitment to improving sustainable management of
U.S. fisheries, including increasing U.S. jobs and revenue for fishing
businesses?
What should the role of science be in fisheries management?
What do you see as the primary challenges to improving fisheries
management, and how would you address those challenges?
In your submissions to the Committee, you stated that one of the
principal challenges facing the Commerce Department is: ``Integrating
Technology into the Department to improve efficiency as well as the
timeliness, depth, and breadth of data . . .''
Many fishermen and others have expressed concern about the nature
of fisheries data collected by the National Oceanic and Atmospheric
Administration, one of the Department's largest subagencies.
Stakeholders doubt that NOAA collects data as efficiently and
effectively as it could, and that antiquated internal processes limit
the utility of that data when it is collected.
How would you improve fisheries data collection and analysis? How
important is user generated data, and to what extent can we leverage
that data to improve the science behind fishery management decisions?
Collecting, analyzing and deploying accurate and timely data on the
nature, condition, and extent of our fisheries can help ensure that
these stocks are managed in the most economically effective ways to the
long-term benefit of our fishermen and fishing communities. As part of
this system of management, electronic monitoring and reporting of catch
can be a cost-effective way to more quickly and efficiently embrace
these goals.
Would you support continuing to integrate this technology in order
to help fishermen by improving management?
Answer. I share the Committee's commitment to sustainable fisheries
as embodied in the Magnuson-Stevens Act. Good science on fish stocks
and oceanic conditions is essential to meet the MSA's sustainable
fishery goals. Collecting accurate information regarding directed
fishing and bycatch is a critical component of effective fishery
management. I am aware that stationing observers on smaller fishing
vessels can be challenging. If confirmed, I would support continuing to
work with industry to find cost effective, accurate and timely methods
for catch and bycatch reporting in order to improve fishery management.
Question 29. Two-thirds of all seafood landed in the U.S. is
exported and two-thirds of those exports come from seafood companies
operating in Alaska and the Pacific Northwest. Our most important
markets are China, Japan and the EU. At least from a seafood trade
perspective, the Trans-Pacific Partnership (TPP) was the kind of big
win that President-elect Trump has touted for trade agreements. Japan
reduced or eliminated tariffs for a number of important seafood
products exported from Washington State, including Alaska pollock,
Pacific cod and salmon. The U.S. didn't make any meaningful concessions
because we have few tariffs on imported seafood. Washington state
strongly supported the seafood provisions in the TPP which also could
have set the stage for a T-TIP agreement that would have provided
further benefits.
Both NOAA Fisheries trade offices and the International Trade
Administration should be working closely with our seafood industry to
knock down foreign tariffs and eliminate other trade barriers.
Washington seafood companies are facing strong headwinds from a strong
dollar and stalled trade agreements.
Will you make seafood export promotion a priority working through
two key agencies within the Department of Commerce?
How do you propose the Administration could work more closely with
the fishing industry on trade priorities and vulnerabilities?
Much of the Alaska fishing fleet is based in Washington, creating
thousands of jobs in both states. Over the past five years,
approximately 80 percent of Alaska's groundfish and crab production was
sold to export markets--and about one-third of that production volume
is reprocessed in China. After secondary processing in China, these
products are re-exported to markets in Europe, the United States, and
Japan--ultimately bringing money back to the United States and
improving our trade deficit. Fishing companies and fishermen in
Washington are concerned that significant import tariff adjustments to
reprocessed Alaska groundfish and crab products could increase their
cost of business, increase prices and harm our state's economy. Do you
support maintaining the current tariff schedule for these products?
Answer. If confirmed, I look forward to finding ways to address the
current trade imbalance in fisheries so that our fishery resources
create more jobs here in America. I have not been briefed on the work
that NOAA fishery trade offices and the International Trade
Administration are doing with industry, but if confirmed I will
certainly learn more about those efforts and look forward to working
with you and other members of the Committee on these matters.
Question 30. The REFI Pacific Act was enacted into law as part of
the 2014 National Defense Authorization Act. The REFI Pacific Act
authorizes NOAA Fisheries to refinance a buyback loan originally issued
in 2005 to the west coast groundfish sector. The original loan was
issued to reduce capacity by decreasing the number of participants in
the fishery through a voluntary buyback program to be repaid by the
remaining participants in the fishery. While it effectively removed
excess fishing capacity and was an important first step towards the now
rationalized and sustainable fishery, the original loan resulted in
unintended consequences for the remaining participants in the fleet,
including:
1. The interest rate on the original loan is high, at 6.95 percent,
much higher than the treasury rate.
2. The landings fee used to collect the loan payment is high at 5
percent of ex-vessel landings value per trip.
3. Due to a failure of NOAA Fisheries to issue regulations in a
timely manner to implement the landings fee nearly $8 Million
in excess interest accumulated on the loan before payments
could be made.
The REFI Pacific Act was enacted into law in order to lower the
interest rate down to PRIME + 0 percent and lower the landings fee down
to 3 percent or lower. At the time of its passage, we understood the
cost of the legislation to be fully covered by the offsets provided in
the NDAA. After enactment, the Office of Management & Budget determined
that implementation of the Act would require a $10 Million
appropriation to NOAA Fisheries to offset the foregone revenue to the
Treasury.
While NOAA included this $10M in its FY15 and FY16 Budget requests,
the lack of completed appropriations bills has made securing this
appropriation impossible. More importantly, we believe the OMB
determination is in error and that such an appropriation should not
even be required.
Will you pledge, if confirmed, to work with my office and the other
sponsors of the REFI Pacific Act as well as OMB to find an effective
pathway forward to resolve this issue once and for all and provide our
west coast fishermen with the economic relief they need? Would you
support creative approaches, including third party financing to allow
fishermen to pay off the loan, soonest?
Answer. I have not yet been briefed on the REFI Act but if
confirmed commit to reviewing the matter carefully to identify ways to
resolve it.
Question 31. I am concerned about potential conflicts of interest
and appearance of conflicts between your position, if confirmed, as
Secretary of Commerce, and your financial interest in the Diamond S.
Shipping Group. In your letter to the Department of Commerce Designated
Agency Ethics Official Mr. David Maggi, dated January 15, 2017, you
stated your intent to retain financial interest in the Diamond S.
Shipping Group, the second largest medium-range tanker company in the
world. Diamond S. Shipping owns and operates 33 tanker vessels that
transport petroleum and other potentially hazardous products. The
Department of Commerce plays a significant role in oil spill research,
mitigation, recovery and response of petroleum products, and plays an
oversight role when oil is spilled from a ships, including medium range
tankers. I request that you supply the members of the Senate Committee
on Commerce Science and Transportation with a detailed accounting of
which specific shipping and oil spill related activities you will
recuse yourself from, if confirmed as the Secretary of Commerce.
In March 1989, the Exxon Valdez tanker spilled 11 million gallons
of oil in Prince William Sound in Alaska, resulting in devastating
impacts to the environment and the regional economy. Shortly after, the
Oil Pollution Act of 1990 (33 U.S.C. Sec. 2701 et seq.) was signed into
law by President George H.W. Bush on August 18, 1990. The Oil Pollution
Act is the primary law governing polluter liability, the Oil Spill
Liability Trust Fund, and oil spill response, prevention and research.
In summary, the Oil Pollution Act is how we make polluters--not
taxpayers--pay for oil spills. The law grants the Department of
Commerce significant authorities and responsibilities with regards to
oil spill response and environmental restoration. In the decades since
the passage of this iconic bill, former Secretaries of Commerce have
had a critical role in oil spill response, enhancing and expanding oil
spill monitoring, research, risk management and economic development
activities related to oil spills under their authority.
As Secretary of Commerce, you would oversee oil spill activities
related to the shipping industry. Your decisions could impact the
regulatory environment for both your own and your competitor's shipping
companies. You would also have authority to determine the financial
liability facing tanker companies that pollute our waters.
In your letter to Commerce ethics on January 15, 2017, you stated:
``I will not participate personally and substantially in any
particular matter that to my knowledge has a direct and
predictable effect on the financial interests of the entity or
its underlying assets for as long as I own it, unless I first
obtain a written waiver, pursuant to 18 U.S.C. Sec. 208(b)(1),
or qualify for a regulatory exemption, pursuant to 18 U.S.C.
Sec. 208(b)(2).''
However, when I inquired about your intentions to recuse yourself
from oil spill related duties if confirmed at your nomination hearing
in the Department of Commerce, your response was:
``The research has suggested that there has never been a
shipping case before the Commerce Department.''
The Exxon Valdez tanker oil spill is a glaring example of a
``shipping case'' before the Department of Commerce. It has been 27
years since this oil spill--and the Department of Commerce and the
National Oceanic and Atmospheric Administration (NOAA) are still
monitoring, studying and mitigating the oil spill impacts to the
environment. In 2014, NOAA published a report on the lessons learned 25
years after the spill. The report contained a catalog of devastating
ongoing impacts including the likely local extinction of a pod of
orcas, severe damage to Pacific herring populations, and significant
declines in important forage fish species in the marine ecosystem.
While you stated that your research had not identified a shipping
case before the Department of Commerce, your own Securities and
Exchange Commission filings contradict your statement to the Senate
Commerce Committee. Diamond S. Shipping Group's 2014 S1 Form filed with
the Securities and Exchange Commission outlined the Oil Pollution Act
as a law that applies to the company's shipping operations, and
therefore, investors such as yourself. The Department of Commerce is
responsible for carrying out significant portions of the Oil Pollution
Act. This clearly presents a conflict of interest between your
potential role as Secretary, and your role an investor in the shipping
industry as a participant, and a competitor.
To that end, I ask you to clarify the types of activities that you
will recuse yourself from, if you are confirmed, as the Secretary of
Commerce. Specifically, will you recuse yourself from:
Natural Resource Damage Assessments related to oil spills in
the marine environment or other environments that fall under
the Department of Commerce (33 U.S. Code Sec. 2706);
Oil spill monitoring decisions, including oversight of the
Federal budget requests with respect to monitoring during and
after oil spills, as well as determinations with regard to
developing baseline datasets needed for future oil spill
Natural Resource Damage Assessments (33 U.S.C. Sec. 2712);
Federal fishery disaster determinations in areas during or
after an oil spill (16 U.S.C Sec. 1861a and 1864);
Oil spill research, including oversight of the NOAA budget
on oil spill prevention, response, risk management, policy and
other research (33 U.S.C. 2761 and 2762);
Any decisions related to NOAA's participation on the
Interagency Coordinating Committee on Oil Pollution Research
(33 U.S.C. 2761) as well as any influence on the prioritization
of agency exclusive or collaborative oil spill research
projects and initiatives;
Membership, actions, and decisions related to the Gulf Coast
Ecosystem Restoration Council as established by the Resources
and Ecosystems Sustainability, Tourist Opportunities, and
Revived Economies of the Gulf Coast States Act (33 U.S.C.
1321):
Any oversight of oil spill response, preparedness,
prevention, risk assessments and research which relate to Puget
Sound (33 U.S.C. 2761).
Answer. I am fully supportive of the vital work NOAA is engaged in
with respect to planning for and executing responses to oil spills in
our Nation's marine waterways, for assessing natural resource damage
that results from such spills, and for working on mitigation and
recovery plans. As I hope I made clear in my testimony, I regard the
scientific enterprise of NOAA, and other elements of the Commerce
Department, as a great national resource. Particularly as a Floridian,
I share your concern for protection of all marine environments, and for
the economic disruption that may result from an oil spill in vital
commercial waterways.
You are certainly correct that, if confirmed, my duties as
Secretary of Commerce will include oversight to ensure effective
execution by NOAA of its oil spill response and recovery
responsibilities. Indeed, it is exactly because of my role as head of
the Department, as well as my commitment to these programs, that I
cannot undertake the broad and preemptive recusal that you propose.
Your proposal is far broader than the recusal required by Congress in
section 208 of Title 18, United States Code, and the Executive Branch
in implementing regulations. This law and the implementing regulations
are administered by Department of Commerce ethics officials and the
Office of Government Ethics, both of whom review and determine the
extent of any recusals necessary under the law.
As you know, Congress in section 1006 of the Oil Pollution Act (33
U.S.C. 2706) specifically identified the NOAA Administrator as the
primary person in the Department responsible for natural resource
damage assessment implementation. The vast majority of NOAA oil spill
response and recovery activities are conducted within NOAA by
scientists, NOAA Corps officers, and other professionals under the
direction of NOAA's Administrator and Assistant Administrator, and the
NOAA Administrator will remain the lead official in the Department in
this regard. In the unlikely event that a matter involving a vessel
associated with Diamond S. Shipping Group should arise, I assure you
that I will recuse myself in accordance with the commitments that I
made in my ethics agreement. Further, I will at all times rely on the
monitoring and judgment of the Department's ethics officials to ensure
that I do not participate in any matter about which they advise me that
a conflict of interest would arise.
If there is another unfortunate event of the magnitude of the Exxon
Valdez or Deepwater Horizon disasters, then there may well be a need
for leadership and support of NOAA's efforts at the Secretarial level.
In such a case, and only with the agreement of the Department's ethics
officials, it would be my duty as Secretary to provide the public and
the President the benefit of my experience to supplement that of the
NOAA Administrator.
Question 32. I am also concerned about other Department of Commerce
activities regarding shipping--
NOAA maps and monitoring anthropogenic sound impacts on the
marine environment--including shipping noise. Shipping noise
has had a negative impact on endangered Southern resident orcas
in Puget Sound and the Salish Sea. Will you recuse yourself
from anthropogenic sound research, funding for research, risk
assessments and related endangered species act consultations?
As that shipping noise has an impact on Southern resident
orcas, will you recuse yourself from all activities related to
Southern resident orca conservation, research, and critical
habitat determinations and consultations?
Will you recuse yourself from ballast water policy,
research, treatment technology evaluations and invasive species
introduction risk assessments and consultations?
Answer. I share your concern for the marine environment and
recognize the many different and complex interactions that can have
impacts on the health of the marine ecosystem. Invasive species
transported by ballast water and noise in the marine environment are
two significant examples of how activities vital to our Nation's well-
being--for example maritime commerce and national defense--can have
unintended impacts on the marine environment. NOAA plays a crucial role
in researching and understanding these impacts, and in recommending and
implementing strategies to address or mitigate them. I fully support
the work NOAA and other agencies of the Department do in this regard.
The recusal you request above goes well beyond the scope required
by law and my ethics agreement and would hinder the performance of my
duties to the public and the President should I be confirmed as
Secretary of Commerce. If confirmed, I will faithfully execute the law
and the commitments in my ethics agreement, and will follow the advice
of the Department's ethics officials with respect to any matter about
which they advise me that a conflict of interest would arise.
Question 33. You are founder and former Chairman of the
International Coal Group, a subsidiary of Arch Coal. Arch Coal was a
partner in the proposed Longview coal export terminal until May 2016,
when it gave up its 38 percent share to Lighthouse Resources, the
project's last remaining supporter. This move came after Arch filed for
bankruptcy in January 2016. After receiving a $275 million bankruptcy
loan, Arch announced that it would continue its operations, despite
laying off hundreds of miners. In October 2016 the company announced
its intent to submit a bankruptcy exit strategy in early 2017.
As Secretary of Commerce, you would be responsible for overseeing
departments that play a major role in protecting waterways from coal
pollution.
Will you recuse yourself from research, analysis, policy and budget
recommendations regarding the impact of coal dust to marine habitats in
Washington and the United States?
Do you believe in Climate Change and that humans are part of the
problem? Or do you believe it is a ``hoax'' like President-Elect Trump?
Please describe the role of the Department of Commerce in
combatting climate change?
I am very concerned about the impact of ocean acidification to
marine resources. In Washington state ocean acidification is a jobs
issue. The shellfish industry supports thousands of jobs in Washington,
and shellfish are dying because their shells are dissolving.
Furthermore, ocean acidification impacts species up the food chain,
including salmon-which also support thousands of jobs and billions in
economic activity. Mr. Ross, as someone with a history operating coal
companies which contributed to climate change, how will you work to
support ALL jobs, including the jobs impacted by burning coal in my
state?
Answer. To be clear, Arch Coal acquired International Coal Group in
2011. I have never had a position with Arch Coal.
I share your concern for protection of all marine environments, and
for the economic benefits that accrue from healthy waterways. The work
of NOAA in support of these goals is one of the vital missions of the
Department. While I expect the NOAA Administrator to exercise primary
policy and administrative oversight of these responsibilities, I will
lead the Department and participate in decisions as necessary and
appropriate. If confirmed, I will faithfully execute the law and the
commitments in my ethics agreement, and will follow the advice of the
Department's ethics officials with respect to any matter about which
they advise me that a conflict of interest would arise.
Question 34. NOAA currently operates and maintains a fleet of 16
ships with a goal of providing 235 days at sea per ship, annually.
These vessels provide ocean observation data and support crucial
species stock assessments which are critical for the health and
economic vitality of our Nation's fisheries. Currently, 8 ships in the
fleet will either meet or exceed design service life by 2028.
If confirmed, how would you avoid a gap in NOAA Corps fleet
capabilities to ensure timely and fiscally responsible recapitalization
of the NOAA Corps fleet?
Answer. I support modernization of NOAA's fleet. If confirmed I
look forward to being briefed fully on NOAA's current plans and working
with you and other members of the Committee to avoid the gap you
describe.
Question 35. The West Coast of the United States is a risk from a
near-field tsunami, generated from the 800 mile long Cascadia
subduction zone located off the coasts of Washington, Oregon and
Northern California. Due to the close proximity of the fault, small
warning windows, the magnitude of previous earthquakes resulting from
the fault, and growing populations in the tsunami zone, this could be a
devastating national emergency with a potential loss of life of over
14,000 Americans. More than 7,000 highway bridges and 16,000 miles of
roadway are expected to suffer moderate to severe damage, including all
routes to the Pacific Coast and Washington's major east-west corridors
and ports. The four-day Cascadia Rising exercise carried out in Pacific
Northwest in June revealed a grossly inadequate plan and lack of
resources available to sufficiently address the Cascadia scenario.
As Secretary of Commerce you will be responsible for all tsunami
forecasting, monitoring, warnings, and research.
Is investing the Department of Commerce's time and resources to
expand and enhance the country's tsunami preparedness a priority for
you?
If confirmed, what steps and actions will you take within your
authority to improve and ensure the best available technology is used
to protect the tens of thousands of people who will be impacted by a
Cascadia Rising tsunami event?
I am particularly concerned about the Coast Guard members, and
their families, stationed in the Cascadia inundation zone. I have been
working with the Pacific Marine Environmental Laboratory to improve
data available to the Coast Guard for contingency planning needed to
assist the Coast Guard in preparing for a tsunami event. If confirmed,
will you support continuing the relationship between Coast Guard
District 13 and the Pacific Marine Environmental Laboratory? What other
suggestions do you have to improve data availability and coordination
to the Coast Guard?
Answer. I support utilizing every cost-effective means at the
Department's disposal to improve the accuracy and usefulness of NOAA's
weather and oceanic data in order to protect life and property. Tsunami
warnings are important to protect people in coastal areas prone to such
events, and if confirmed I look forward to learning more about the
Department's tsunami warning systems and working with Congress to
address the needs of affected coastal areas.
Question 36. Aluminum had been very important to my state for many
years. However, unfair trade practices have driven ALCOA to close
smelters and eliminate jobs in Washington state and around the country.
In 2015, aluminum smelting and fabricating was prioritized, along with
steel, in bilateral negotiations, including the Strategic & Economic
Dialogue (S&ED) and the Joint Committee on Commerce and Trade (JCCT).
In order to level the playing field and bring back American jobs
for manufacturing sectors that have been adversely affected by
pervasive overcapacity such as aluminum and steel, what policies will
this administration put forward?
What is the new Administration's plan to address overcapacity in
bilateral engagements with China?
The USTR announced that it is filing a consultation request at the
WTO regarding subsidies for Chinese aluminum smelters.
What role to you anticipate the Department of Commerce to have in
that and similar cases addressing pervasive overcapacity of Chinese
production in the future?
Answer. As long as the Chinese have massive overcapacity they will
continue to dump. State-owned enterprises are not required to make a
profit because state owned banks continue to prop them up. This sort of
behavior is part of the proof that China is not a market economy. If
confirmed, I will seek to implement faster and more certain
enforcement, ensure collection of duties that are imposed, and will
include a discussion of the State-owned enterprise problem in all
future trade negotiations with the aim of presenting a common front
against this problem.
Question 37. How would you anticipate the Department of Commerce
strengthening trade enforcement activities, particularly in cases where
foreign producers are using innovative but questionable trade practices
including transshipment, intentional product misclassification, and
other tools of circumvention, to avoid U.S. tariffs and AD/CVD orders--
as is the case for aluminum metal and for specific aluminum products?
How will the U.S. Department of Commerce foster and protect high
growth, innovative U.S. manufacturing sectors such aluminum?
Answer. If confirmed, I intend to address transshipment,
misclassification and other questionable trade practices as part of all
future trade agreements. By addressing these and other issues in fair
and balanced trade agreements we create an environment in which
innovative businesses can thrive and provide high quality jobs here in
the United States.
Question 38. The U.S. Department of Commerce works closely with
other U.S. Government agencies to promote U.S. exports. One of those
agencies is the U.S. Export-Import Bank (EXIM Bank). However, EXIM Bank
does not have a quorum on its Board of Directors and it is currently
unable to support deals over $10 million. In 2014, the Bank authorized
more than $20 billion in export financing and supported almost 165,000
American jobs. However, last year, because it did not have a quorum, it
was only able to do a fraction--authorizing $5 billion in financing and
supporting 52,000 jobs. The Bank has been without a quorum despite
having broad bipartisan support in both chambers as demonstrated when
it was reauthorized by a supermajority in 2015.
Given the Bank's ability to reduce risk and help American
manufacturers stay globally competitive, do you agree that the Export-
Import Bank should be fully operational?
Do you agree that a working quorum is needed as soon as possible
for American job growth?
Answer. I agree that some form of financing is needed to provide a
level playing field for American companies to export their products
overseas. This is particularly the case for small and medium size
companies who lack the resources and expertise available to larger
companies. Whatever mechanism Congress chooses to use needs to be able
to make decisions and award financing in order to be effective in
support American companies seeking to export overseas.
______
Response to Written Questions Submitted by Hon. Amy Klobuchar to
Wilbur L. Ross, Jr.
Question 1. As Co-Chair of the Senate Broadband Caucus, I believe
that expanding access to broadband is the infrastructure challenge of
our generation. I have worked on ``dig once'' policies to coordinate
highway construction and installation of broadband infrastructure and
streamline regulations to promote broadband deployment. I understand
you have experience with broadband deployment, including installing
conduit to minimize repeated excavations, a key ``dig once'' principle.
Given the leadership the Department of Commerce has shown on
broadband issues, will you work with me to strengthen broadband
deployment policies throughout the Federal Government including
ensuring that any infrastructure investment efforts include ``dig
once'' principles?
Answer. I believe in the ``dig once'' principle and look forward to
working with Congress to implement policies that promote broadband
deployment in the most expeditious and cost effective manner possible.
Question 2. The Broadband Opportunity Council was formed to
coordinate efforts across the Federal Government to support and
streamline broadband deployment. Twenty five Federal agencies and
departments are members and it is co-chaired by the Department of
Commerce and Department of Agriculture. In September 2015, the Council
issued a report with its recommendations, which incorporated several of
the comments I had submitted. Since the report was released some of the
recommendations have been implemented, but there is still much work to
be done.
If confirmed, will you continue to work with agencies and
departments across the Federal Government to promote broadband
deployment, including by working to implement the outstanding
recommendations from the Broadband Opportunity Council?
Answer. Yes, I support broadband deployment as an important asset
needed to promote jobs and facilitate advanced manufacturing and
technology innovation. I look forward to being briefed on the
Department's broadband efforts to date and working to maximize the
effectiveness of the Department's programs in this regard.
Question 3. In 2010 my bill, the Export Promotion Act, was signed
into law to improve export assistance for small and medium-sized
businesses. Since then, the U.S. Foreign and Commercial service has
been doing excellent work in Minnesota to help these businesses find
export markets they could never locate by themselves. I have also been
an advocate of making our foreign embassies more outward facing with a
greater focus on discovering opportunities for U.S. businesses. Do you
agree that the Department of Commerce including the U.S. Foreign and
Commercial Service have an important role to play in promoting exports?
Answer. Yes. One objective of the President is to increase exports
by U.S. companies, and the USFCS provides assistance to small and
medium size U.S. businesses that otherwise would face significant
barriers to entry in foreign markets due to lack of access to local
knowledge and assistance understanding foreign government practices and
regulations.
Question 4. The 2006 Softwood Lumber Agreement expired in 2015 and
the one-year extension of the agreement expired October 2016. I was
active in urging the Obama administration to ensure that any negotiated
solution provides a long-term solution that adequately addresses
Canadian timber policies and subsidies. In July President Obama and
Prime Minister Trudeau made a commitment to seek an agreement that
maintains Canadian exports ``at or below an agreed market share.'' That
commitment is vital because without an effective agreement to cap
Canada's market share, Canadian subsidies will allow Canada to continue
to gain a larger market share, displacing and harming U.S.
manufacturers and mill workers. What are your views on the softwood
lumber issue and how do you plan to work with the USTR to ensure that
U.S. manufacturers and mill workers are protected?
Answer. Because the Canadian softwood lumber industry continues to
receive stumpage subsidies, the United States should take action to
address that unfair trade practice.
Question 5. As a former prosecutor and co-chair of the Next
Generation 911 Caucus in the Senate I know how important it is for our
public safety community to be able to communicate during times of
crisis. FirstNet--the new national public safety broadband network--
will be an important tool for first responders in the field. As it is
being implemented it is critical that states have a seat at the table
and a chance to give meaningful input. In Minnesota this consultation
process has gone well and I hope other states have the same chance to
provide feedback. Do you agree that FirstNet should continue to work
closely with state officials to make the new network a success?
Answer. Yes. If confirmed, I look forward to being briefed on
FirstNet and its deployment strategy. As I currently understand it,
maximizing state participation is important in order to minimize the
cost to each participant of using the network.
Question 6. The Department of Commerce and the Economics and
Statistics Administration provide crucial up-to-date information about
the social and economic needs of communities. Both the 2020 Census and
American Community Survey are important sources of this information.
Still, most people aren't aware that business leaders heavily rely on
this data.
Will you continue to strengthen and promote the use of economic
statistics provided by the Department of Commerce and are you committed
to ensuring the Census Bureau has the resources it needs to conduct an
accurate and efficient census in 2020?
Answer. Yes. I understand the importance of conducting a full, fair
and accurate Census in 2020, and look forward to working with the
Census Bureau to accomplish that result. Throughout my business career,
I have been a consumer of information provided by different bureaus of
the Department of Commerce, and view the continued provision of
information to the public by the Department as an important national
resource.
Question 7. Chinese officials have pushed for the United States to
designate China as a market economy. Treating China as a market economy
would allow China to bypass antidumping laws by manipulating prices to
avoid dumping tariffs. In December President Obama announced the U.S.
would not change China's status as a non-market economy. What is your
position on granting China market economy status? How will you work
with U.S. allies like the EU and Canada to support the U.S. position on
China's market economy status at the World Trade Organization?
Answer. I do not believe China is a market economy. As long as the
Chinese have massive overcapacity they will continue to dump. State-
owned enterprises are not required to make a profit because state owned
banks continue to prop them up. This sort of behavior is part of the
proof that China is not a market economy.
______
Response to Written Questions Submitted by Hon. Richard Blumenthal to
Wilbur L. Ross, Jr.
Question 1. Cybersecurity is a vital element of our national
security and it is essential that there are protections in place to
protect our nation, businesses, and critical infrastructure from
sabotage and espionage. Last week, the National Institute of Standards
and Technology (NIST) issued a draft update for its Cybersecurity
Framework. This updated draft provides new details on managing cyber
supply chain risks, clarifies key terms, and new measurement methods
for cybersecurity. One concern often expressed about the Cybersecurity
Framework is that its use in the industry is voluntary.
If confirmed, what will you do to increase adoption of the
Cybersecurity Framework and ensure that our trade secrets and critical
infrastructure are adequately protected?
Answer. Cybersecurity is a huge and immediate problem.
Strengthening our cybersecurity is critical to U.S. trade and national
security. If confirmed, I will work proactively through NIST and with
our interagency and industry partners to address the cybersecurity and
privacy challenges that our Nation currently faces and will regularly
review the Department's efforts to ensure that markets remain open to
U.S. innovators.
Question 2. Do you agree with the designation of our election
infrastructure as critical infrastructure? Will you commit to working
with the Secretary of Homeland Security to ensure robust protection?
Answer. If confirmed, I look forward to working with the Department
of Homeland Security on a range of issues important to our trade and
national security, including robust enforcement of our trade laws and
effective responses to cybersecurity threats.
Question 3. The Help America Vote Act and the Military and Overseas
Voter Empowerment Act require NIST to work with the Election Assistance
Commission to research and develop standards to help uphold voting
rights--a bedrock of our Constitution. Can you assure me that you will
do everything you can to ensure these laws are fully implemented?
Answer. If confirmed, I look forward to being fully briefed on this
issue and will work with NIST to effectively implement its statutory
obligations.
Question 4. Several reports in the past decade have shown that many
of the forensic science practices relied upon in investigations and
prosecutions lack foundational validity and require significant further
research. In hundreds of recent exonerations, faulty forensics
contributed to the wrongful convictions in almost half of these cases.
NIST plays a crucial role in forensic science, particularly in
conducting scientific research and developing science-based standards
to ensure that any forensic science used in expert testimony is
scientifically valid. It has organized hundreds of criminal justice
stakeholders in a comprehensive effort to set standards for their use
moving forward.
If confirmed, how would you set the research agenda for forensic
science? What mechanisms would you use to gather input to inform this
agenda?
Answer. If confirmed, I look forward to being briefed on what NIST
has done to date to improve forensic science and will carefully
evaluate those efforts.
Question 5. If confirmed, will you continue to work with Members of
this Committee and the Judiciary Committee to ensure that law
enforcement and criminal justice stakeholders--such as judges,
attorneys, and fact-finders--have the strongest and most accurate
forensic tools possible to ensure that crimes are correctly solved,
public safety is protected, and wrongful convictions are avoided?
Answer. I agree that accurate and reliable forensics are an
important tool in our criminal justice system, and look forward to
working with Congress on this important issue.
Question 6. I believe forensic science disciplines have a lot of
promise to be an economic generator and jobs creator. America has led
the way in standardizing the use of DNA in criminal proceedings; the
scientific and technological advances upon which this work is based
have also resulted in significant economic growth.
If confirmed, will you commit to supporting this work at NIST,
including ensuring sufficient resources are available to continue this
work?
Answer. NIST is instrumental to many important research and
standards setting efforts, including this one. If confirmed, I will
carefully evaluate NIST's priorities and will do my best to ensure that
the available funding is used to maximum effect.
Question 7. As you may know, NIST and the Department of Justice are
party to an MOU that establishes a National Commission of Forensic
Science, which formulates recommendations on matters such as
accreditation requirements for forensic science service providers. The
Commission's work has not been completed and I am interested in seeing
that work continue.
Will you direct the incoming director of NIST to renew the MOU and
continue to fully support the Commission until its work is completed?
Answer. If confirmed, I look forward to being fully briefed on the
Memorandum of Understanding and the National Commission on Forensic
Science. As stated above, I agree that accurate and reliable forensics
is an important tool in our criminal justice system, and I will do my
best to ensure that available funding for NIST is used to maximum
effect.
Question 8. Do you agree that establishing scientific underpinnings
to forensic science is absolutely vital to ensuring the integrity of
our criminal justice system? If confirmed, how would you work with the
Department of Justice and broader criminal justice community to ensure
that research results are incorporated into practice?
Answer. If confirmed, I will work cooperatively with the Department
of Justice to maximize NIST's ability to disseminate its research aimed
at improving the Nation's forensic science capabilities.
Question 9. The Department of Commerce plays an important role in
leading research and setting guidelines on the use of facial
recognition technology. For example, NIST has announced it will begin a
new evaluation of facial recognition technologies starting in February
2017, to better understand performance accuracy. As you may know, a
recent study found that some face recognition algorithms have been
shown to misidentify African-Americans, women, and young people at
higher rates compared to whites, men, and older individuals,
respectively. Such inaccuracies raise the risk that, absent appropriate
safeguards, innocent African Americans and others may mistakenly be
placed on a suspect list or investigated for a crime solely because of
a flawed algorithm.
If confirmed, do you commit to ensuring that NIST's facial
recognition evaluation includes regular examination of whether facial
recognition systems demonstrate racial bias?
Answer. I support development and implementation of new
technologies that are mission appropriate, cost effective and produce
accurate, reliable results. I have not yet been briefed on NIST's
facial recognition programs or the evaluation protocols being used. If
confirmed I will endeavor to ensure NIST provides Congress and the
public with the information needed to evaluate the usefulness of any
new technology for its proposed public purpose.
Question 10. If confirmed, do you commit to ensuring that NIST's
facial recognition evaluation includes thorough analysis of real-time
face recognition systems?
Answer. If confirmed I will endeavor to ensure NIST provides
Congress and the public with the information needed to evaluate the
usefulness of any new technology for its proposed public purpose.
Question 11. If confirmed, do you commit to make publicly available
NIST's findings on the performance of facial recognition technologies
on an ongoing and regular basis, and cooperating with law enforcement
and other entities so that they are aware of any findings?
Answer. I support public release of accurate scientific data and
cooperation with law enforcement.
Question 12. As I understand, when China joined the World Trade
Organization, it agreed to open its market to foreign electronic
payment companies, many of which are based in the U.S., no later than
December 11, 2006. China failed to do so. In 2012, a WTO panel ruled
that China has discriminated against U.S. card companies and must allow
foreign electronic payment companies to process domestic transactions
in China. Now, 10 years after China was supposed to open its market,
and five years after the WTO decision, not a single U.S. company has
been allowed to process domestic transactions in China. USTR has stated
in its 2016 report to Congress on China's WTO Compliance that ``China
has not yet taken needed steps to authorize access by foreign suppliers
to this market.'' It is important for American companies to compete and
operate internationally.
If confirmed, what will you do to ensure that China's lives up to
its WTO commitments in this area?
Answer. The basic premise behind the U.S. Government's support of
China's accession to the WTO was that China would play by the rules.
That premise was incorrect. Stronger enforcement is the key to
obtaining compliance.
Question 13. As Secretary of Commerce, you would be in charge of a
number of Bureaus that are chiefly scientific and research
organizations.
How would you foster a culture of scientific transparency and
accountability, and protect scientists and engineers from political
interference in their work?
Answer. Science should be done by scientists. I support the release
of factual scientific data.
Question 14. American businesses that hope to reach consumers
around the globe depend on access to markets. Increasingly, businesses
reach consumers online. However, there are threats to these open
markets, and the continued growth of and access to the digital economy
is not guaranteed.
To promote American business' access to consumers, what role should
the Department of Commerce play in supporting and strengthening the
digital economy by advocating for the free and open internet?
Answer. Most of our existing trade agreements were negotiated and
agreed to before the advent of the Internet. Our future trade
agreements need to address the importance of the Internet to global
commerce and ensure that the core attributes of the Internet's success
remain intact.
Question 15. Do you agree that a free and open Internet is also
critical for businesses reaching consumers here in the U.S.?
Answer. The United States must ensure continued trust in the
privacy and security of the Internet, which is necessary to facilitate
the continued free flow of information around the world. American
businesses in the digital space, both large and small, depend on an
online digital ecosystem that has the confidence of potential users and
customers. That is why, if confirmed, I will ensure the Department of
Commerce is at the table in all policy discussions related to practices
that may affect digital data flows.
Question 16. As you noted in your testimony, you have unique
experience working to implement the Census early in your career. The
responsibility for carrying out the Census falls under the Department
of Commerce. This process is as old as the republic and is mandated
under Article I, Section 2 of the Constitution. The data that results
from conducting the Census has immense implications and is used to
calculate the number of seats that each state has in the House of
Representatives and helps to allocate critical funding for new roads,
hospitals, schools, emergency services, and many other essential
services in all of our communities.
Given the Census' nationwide implications, having an accurate count
of the U.S. population is paramount. Do you agree? How will you ensure
that the Census remains free of political influence?
Answer. If confirmed, I look forward to working with the Census
Bureau and all stakeholders to ensure a full, fair and accurate count
in Census 2020.
Question 17. In your testimony, you state that expanding exports
will be one of the top challenges facing the Department of Commerce.
Connecticut has many aerospace manufacturers, and one entity we
strongly support is the Export-Import Bank. Although the Export-Import
Bank is often portrayed as helping only large corporations, we have
many small businesses in Connecticut that are crucial parts of the
supply chain for these larger companies and their products--
manufacturing the components of the planes, helicopters, and satellites
that companies like General Electric and UTC sell overseas.
The bank falls outside the Department--which has many trade-related
responsibilities--but still the bank is critical to my state in
advancing a goal we both agree should be a priority: increasing the
export of American products. The President-elect has said in regards to
the Export-Import Bank ``when you think about free enterprise, it's
really not free enterprise. I'd be against it.'' But the Vice
President-elect has voted to reauthorize the bank in the past. In your
initial answers to this committee, you said ``you support the
concept.''
Would you agree that the Export-Import Bank provides an important
source of support for many small manufacturers?
Answer. I agree that some form of financing is needed to provide a
level playing field for American companies to export their products
overseas. This is particularly the case for small and medium size
companies who lack the resources and expertise available to larger
companies. Whatever mechanism Congress chooses to use, it needs to make
decisions and award financing in order to be effective in support of
American companies seeking to export overseas.
Question 18. Will the incoming administration work to ensure that
the Export-Import Bank has the resources it needs to continue its
support for small manufacturers?
Answer. I favor every tool that can increase effectively the
present trivial percentage of businesses that export anything.
Question 19. How will you ensure that the Administration's trade
policies protect not just large exporters but smaller manufacturers as
well?
Answer. Over the course of my career I have worked with both large
and small manufacturers, and am very familiar with the problems small
manufacturers face. Small businesses account for a significant amount
of innovation and job creation, so it is important to the President's
objectives that our trade policies establish an environment in which
both large and small enterprises flourish.
Question 20. In section C(3) of the Committee's questionnaire, you
were asked the following: ``Have you or any business or nonprofit of
which you are or were an officer ever been involved as a party in an
administrative agency proceeding, criminal proceeding, or civil
litigation? If so, please explain.'' Your response listed eight
proceedings and noted ``I have been associated with a number of
corporations and other entities and, from time to time, such entities
(including, in some instance, their directors, officers and employees)
in the ordinary course, have been involved in judicial or regulatory
proceedings relating to their businesses.''
Please list and describe these judicial and regulatory proceedings,
including any resolution.
Answer.
Moncavage v. Faris et al., No. 9:14-cv-81378 (S.D. Fla.):
This complaint was never served and was voluntarily dismissed
without prejudice 6 days after it was filed.
In re: International Textile Group Merger Litigation, C.A.
No. 2009-CP-23-3346 (Related Action: Menezes v. WL Ross & Co.,
403 S.C. 522, 744 S.E.2d 178(2013)):
I was named as an individual defendant. The case settled.
Saratoga Advantage Trust v. ICG, Inc. et al., No. 2:08-cv-
00011 (S.D. W.Va.):
I was named as individual defendant. The case settled.
City of Ann Arbor Employees' Retirement System v. ICG, Inc.,
2008 WL 4509356 (S.D. W.Va.):
I was named as individual defendant. The case was dismissed.
Giles v. ICG, Inc. et al., No. 3:11-cv-00330 (S.D. W.Va.):
I was named among various individual defendants. The case
settled. This case was related to Kramer v. Ross, et al., Court
of Chancery of Delaware 6470-VC, which is listed in Attachment
Six of the questionnaire response. Another related action was
Isakov v. International Coal Group, Inc., et al., Court of
Chancery of Delaware 6505-VCP.
In re Mego Financial Corp. Securities Litig., 213 F.3d 454
(9th Cir. 2000):
As I had been an outside director of Mego (the target
defendant), I was named as an individual defendant. The case
settled.
Weiss v. Sunasco Incorporated, 295 F. Supp. 824 (S.D.N.Y.
1969):
As I was an outside director of Sunasco (the target defendant),
I was originally named as an individual defendant. I was later
dropped from the complaint.
In the Matter of WL Ross & Co. LLC (August 24, 2016):
This was an SEC administrative proceeding. I was not
individually named.
Parker v. AHMSI Insurance Agency Inc. d/b/a Belt Line
Insurance Agency, No. 1:15-cv-23840 (S.D. Fla.):
This case is currently pending in SD Fla., with several funds
named as defendants: WL Ross & Co., LLC, WLR AHM Co-Invest,
L.P., WLR IV Parallel ESC, L.P., WLR Recovery Fund III, L.P.,
WLR/GS Master Co-Investment, L.P., WLR Recovery Fund II, L.P. I
am not individually named.
Related Action: Nungester, et al., v. AHMSI Insurance
Agency Inc. d/b/a Belt Line Insurance Agency, No. 14-cv-
7338 (S.D.N.Y.):
This case was dismissed before any fund defendants
entered an appearance. I was not individually named.
DIGJAM Limited v. WL Ross & Co. LLC, 09-cv-01607 (S.D.N.Y.):
This case was dismissed. I was not individually named as a
defendant.
Perez v. WL Ross & Co. LLC, No. 08-cv-00243 (N.D. Ill.).:
This case was dismissed after initial status conference on
Plaintiff's own motion. WL Ross & Co. LLC was named as a
defendant, but I was not individually named.
Levchenko et al v. MERS et al, 1:10-cv-01804-NGG-LB
(E.D.N.Y.):
WL Ross & Co. was named as a defendant, but I was not
individually named. WL Ross & Co was never a party because the
case was dismissed for failure to complete service.
Weinstein v. American Residential Funding, Inc. et al.,
2:10-cv-00487-PMP-PAL (D. Nev.):
WL Ross & Co. was named as a defendant in this case, but I was
not individually named. The case was dismissed with prejudice.
Mullin v. WL Ross & Co. LLC, 1:16-cv-10060-RJS (Dec. 30,
2016 S.D.N.Y.):
WL Ross & Co. is named as a defendant in this pending case. The
complaint alleges breach of contract and fiduciary duty claims.
An initial conference has been set for February 24.
Sokolowski et al v. Erbey, 9:14-cv-81601-LSS (S.D. Fla.):
Plaintiffs' motion to approve settlement in this securities
case is pending, and a hearing on the motion was held on
January 18. WL Ross & Co. is named as a defendant. I was also
individually named.
Hutt v. Erbey et al., 9:15-cv-80392-RLR (S.D. Fla):
I was named as a defendant in this shareholder derivative suit
against Ocwen Financial. The case was voluntarily dismissed by
the plaintiff. It had previously been filed in the Northern
District of Georgia (1:15-cv-00891-WSD) and transferred.
Spreitzer et al v. Michitsch, 2:11-mc-00008-WFD (D. Wyo.):
This pro se case named myself and WL Ross & Co. as defendants.
It was dismissed shortly after it was filed for failure to show
cause.
Bowen v. Farris, 1:16-cv-00799-TCB (N.D. Ga.):
This case filed by a pro se plaintiff against Ocwen Financial
named me as a defendant. It was voluntarily dismissed by the
plaintiff.
Sparks, et al v. Ross, et al, 1:02-cv-00045-IMK (N.D.
W.Va.):
This ERISA case focused on Anker Coal Group, Anker Group, Inc.,
SIMBA Group, Inc., and Anker Energy Corporation. I was named as
a defendant individually because of my involvement with these
companies. The case settled.
______
Response to Written Questions Submitted by Hon. Brian Schatz to
Wilbur L. Ross, Jr.
Question 1. If confirmed, you will likely play a leading role in
formulating U.S. trade policy. During your tenure, we may revisit
existing trade agreements and rethink the U.S. model agreement.
A top priority should be reexamining our negotiating objectives in
the Trans Pacific Partnership (TPP). When TPP was being negotiated, I
was told that it would be the gold standard for environmental, health
and safety, and labor standards. But when I read the final agreement
closely, I was extremely disappointed. The commitments in TPP were
basically just strongly worded suggestions with very few requirements.
I was encouraged to hear that you have called for more ``stringent
environmental and health and safety standards'' in trade agreements.
What is your view of TPP's environmental, public health, and labor
commitments?
What should these commitments in U.S. trade agreements look like
going forward?
Answer. As you will recall from our meeting, I believe the long-
term objective should be to bring other countries up to our labor,
environmental and health standards. The absence of reciprocal standards
creates a competitive advantage for the country with the lower
standards. In the future trade agreements should include reciprocal
commitments in this regard and the necessary mechanisms to see that any
commitments are enforced.
Question 2. Another area I believe we need to revisit in our trade
agreements is the inclusion of investor state dispute settlement
(ISDS).
ISDS provides a special forum outside of our well-established court
system that is just for foreign investors. It is not open to domestic
businesses, labor unions, civil society groups, or individuals that
allege a violation of a trade agreement obligation.
Foreign investors are given the right to sue governments over laws
and regulations that impact their businesses. While the investors are
only entitled to monetary damages, we have seen how ISDS can be used to
extract changes in policy. In effect, ISDS gives foreign investors
final say over laws and regulations meant to improve and protect the
lives of Americans.
What are your views on the inclusion of investor state dispute
settlement in trade agreements?
Answer. As you will recall from our meeting, I believe the long-
term objective should be to bring other countries up toward our labor,
environmental and health standards. To do that we need to review
carefully any dispute resolution mechanisms in future trade agreements
to ensure that they do not create an opportunity for countries to use
non-tariff trade barriers and dispute settlements to create a
competitive advantage for their products.
Question 3. When we talk about increasing America's exports, we
should also aim to increase travel, which is our Nation's number one
service export. In 2015, 77.5 million international travelers visited
the U.S., spending $246.2 billion across the country.
In Hawaii, travel and tourism is a major driver of our economy.
These industries make up 20 percent of our economy and provide the
state's second largest source of jobs.
Because of the economic importance of travel, the Commerce
Department developed a National Travel and Tourism Strategy in 2012. A
primary goal of the strategy is to attract 100 million international
visitors to the United States by 2021. Unfortunately, we are 22.5
million short of meeting this goal.
What would you do to help the U.S. meet our visitor goal and, more
generally, to increase international visitation to the U.S.?
Answer. If confirmed, I look forward to being fully briefed on the
Department's efforts in this regard, and will work with you and other
interested Members of Congress on this important issue. While there may
be many ways we can advance the goal of promoting tourism, certainly
efforts to increase the foreign exchange rate will assist in both
increasing demand for U.S. exports and making the United States a more
attractive travel destination, both of which help create more jobs in
the United States.
Question 4. At your hearing, I highlighted the important role of
the Department of Commerce in convening other agencies for the purpose
of developing U.S. tourism policy. Without the Department's leadership,
it would be difficult to continue the productive cross-agency
collaboration we saw during your predecessor's tenure. The Department
has accomplished this through its active role on the interagency
Tourism Policy Council and its National Travel and Tourism Office.
In your response to my question about continuing the Department's
role as convener, you mentioned your willingness to work with Elaine
Chao should she be confirmed as secretary of the Department of
Transportation. I wanted to follow up on your answer to ask about your
commitment more broadly to interagency collaboration on tourism policy.
Would you commit to continuing the Department's leadership in
convening the relevant agencies to advance the U.S.'s travel and
tourism policy?
Answer. Advancing travel and tourism to the United States helps
promote jobs and foreign investment in the United States. If confirmed,
I look forward to being fully briefed on the Department's efforts in
this regard, and will work with you and other interested Members of
Congress on this important issue.
Question 5. Cross-border data flows between the U.S. and Europe are
the highest in the world. This movement of data is critical to
students, families, businesses and promotes employment, free speech,
innovation, and cultural expression.
In 2015, the European Court of Justice invalidated a core agreement
that governed the transfer of data between the EU and U.S. Fortunately,
the Department of Commerce and their European counterparts successfully
negotiated the EU-U.S. Privacy Shield Framework to provide companies on
both sides of the Atlantic with a mechanism to comply with EU data
protection requirements. The framework supports transatlantic commerce,
while safeguarding individual's privacy. The Privacy Shield has seen
great success so far. Nearly 1,400 U.S. organizations--big and small--
have certified their compliance with the framework.
The framework is up for its annual review later this year and is
currently being challenged in the EU courts.
How will you ensure the Department of Commerce conducts an
effective first review of the program in 2017 with European
counterparts so the program can continue to operate smoothly for the
benefit of all Americans?
Answer. If confirmed, as Secretary of Commerce I will be
responsible for promoting the foreign and domestic commerce of the
United States. I will do my best to do so in all areas, including with
respect to digital trade and data privacy. I will work with the
appropriate agencies of government to ensure an effective review in
accordance with our commitments under the Privacy Shield Framework.
Should the European courts find any essential part of the Privacy
Shield is contrary to law, the Department will once again lead efforts
to find a solution.
______
Response to Written Questions Submitted by Hon. Edward Markey to
Wilbur L. Ross, Jr.
Question 1. Many important technologies and applications rely on
unlicensed spectrum, which is typically used for Wi-Fi connectivity.
How will you ensure that the Federal Government makes spectrum
available for unlicensed uses?
Answer. Unlicensed use of spectrum has been an engine of innovation
and economic activity. This will continue as devices and applications
for the Internet of Things proliferate. If confirmed, I will ensure
NTIA continues to make spectrum available in a manner that advances
innovation and economic prosperity as well as meeting the long term
needs of the United States.
Question 2. In order to meet our Nation's spectrum needs, we should
share and more efficiently use spectrum. If confirmed, how will you
promote research and deployment of technologies to share and more
efficiently use spectrum?
Answer. I support the efficient use of spectrum and look forward,
if confirmed, to working with NIST and NTIA to enhance the Department's
efforts in this regard.
Question 3. Please list any deductible or nondeductible charitable
donations you made in the last three years, including, for each
contribution, the name of the recipient and the amount.
Answer.
1/02/2016 #4008 $2,000.00 Brigham and Women's Hosp.
1/04/2016 #4009 $1,000.00 Glades Academy Fdn., Inc.
1/10/2016 #4010 $10,000.00 Autism Speaks
1/11/2016 #4012 $1,000.00 Boys' Club of New York
1/18/2016 #4014 $500.00 Fountain House
1/22/2016 $1,000.00 Palm Beach Zoo
1/23/2016 #4282 $5,000.00 Glades Academy Fdn., Inc.
2/06/2016 #4291 $20,000.00 Blenheim Foundation
2/08/2016 #4295 $2,000.00 Museum of the City of New York
2/08/2016 #4296 $750.00 Southampton Fresh Air Home
2/19/2016 #3818 $2,500.00 Society of the Four Arts
2/22/2016 #4309 $1,000.00 Open Future Institute
2/26/2016 $250.00 Fountain House
2/27/2016 #4310 $2,500.00 Prince of Wales Fdn.
2/27/2016 #4025 $4,000.00 Mem. Sloan Kettering Cancer
Center
2/29/2016 #4026 $550.00 Central Park Conservancy
2/29/2016 #4027 $2,000.00 Lenox Hill Neighborhood House
3/20/2016 #4322 $2,500.00 SCO Family Dynamics
3/20/2016 #4323 $500.00 American Friends of the Louve
4/01/2016 #4223 $12,993.74 Duke Of Edinburgh Fdn.
4/04/2016 #4236 10,000.00 Duke of Edinburgh Fdn.
4/25/2016 #4246 $400.00 Kips Bay Boys and Girls Club
4/30/2016 #4249 $1,000.00 Carnegie Hall Society
4/30/2016 #4251 $2,500.00 PEN America
4/30/2016 #4252 $500.00 Madison Square Boys & Girls Club
4/30/2016 #4253 $2,000.00 Checkerboard Foundation,Inc.
5/15/2016 $3,050.00 Cancer Research Institute
5/15/2016 $15,000.00 Cancer Research Institute
6/05/2016 #4340 $2,000.00 Mem. Sloan Kettering Cancer
Center
6/5/2016 #4341 $900.00 Southampton Fresh Air Home
7/28/2016 $1,000.00 CureFA Fdn.
8/19/2016 #4379 $5,000.00 Palm Beach Civic Association
8/19/2016 #4380 $500.00 St. Andrew's Dune Church
8/19/2016 #4381 $1,000.00 UCLA Medical Center Dept. of
Neurosurgery
8/19/2016 #4382 $1,000.00 Hearst Castle Preservation Fdn..
8/19/2016 #4383 $5,000.00 Palm Beach Zoo
9/01/2016 #4414 $1,000.00 Hope for Depression Research Fdn.
9/12/2016 #4433 $25,000.00 Palm Beach Preservation Fdn.
9/23/2016 $10,000.00 Federation of Cypriot American
Org
10/03/2016 #4491 $1,000.00 Animal Medical Center
10/10/2016 $5,000.00 God's Love We Deliver
10/14/2016 #4505 $1,000.00 Groton School
10/03/2016 #4492 $1,000.00 Palm Beach Zoo
10/03/2016 #4493 $2,500.00 NYSPCC
11/04/2016 $500.00 Peggy Adams' Animal Rescue League
11/27/2016 #4466 $75.00 Southampton Village Volunteer
Ambulance
11/28/2016 $5,000.00 Brigham and Women's Hospital
12/19/2016 $12,000.00 Metropolitan Museum of Art
Question 4. During Mr. Trump's campaign, there were reports that
even volunteers were required to sign non-disclosure agreements. After
his election, President-elect Trump's team demanded lists of career
officials who worked on climate science issues at the Energy Department
and women's and gender issues at the State Department. Any suggestion
that the incoming administration is targeting career officials for
retaliation simply because they worked on policies that the new
President disagrees with threatens to create a chilling effect on
employees who are simply trying to do their jobs. It is against the law
to retaliate against career officials for following lawful policy
directives. It is also against the law to interfere with career
employees communicating with Congress. I have included a summary of
these laws below:
5 U.S.C. Sec. 7211, provides that: The right of employees,
individually or collectively, to petition Congress or a Member
of Congress. or to furnish information to either House of
Congress, or to a committee or Member thereof, may not be
interfered with or denied. Pursuant to 5 U.S.C.
Sec. 2302(b)(8), it is a violation of Federal law to retaliate
against whistleblowers. That law states: Any employee who has
authority to take, direct others to take, recommend, or approve
any personnel action, shall not, with respect to such authority
. . . take or fail to take, or threaten to take or fail to
take, a personnel action with respect to any employee or
applicant for employment because of. . . . (A) any disclosure
of information by an employee or applicant which the employee
or applicant reasonably believes evidences--(i) a violation of
any law, rule, or regulation, or (ii) gross mismanagement, a
gross waste of funds, an abuse of authority, or a substantial
and specific danger to public health or safety, any disclosure
to the Special Counsel, or to the Inspector General of an
agency or another employee designated by the head of the agency
to receive such disclosures, of information which the employee
or applicant reasonably believes evidences a violation of any
law, rule, or regulation . . .'' In addition, pursuant to 18
U.S.C. Sec. 1505, it is against Federal law to interfere with a
Congressional inquiry: Whoever corruptly, or by threats or
force, or by any threatening letter or communication
influences, obstructs, or impedes or endeavors to influence,
obstruct, or impede the due and proper administration of the
law under which any pending proceeding is being had before any
department or agency of the United States, or the due and
proper exercise of the power of inquiry under which any inquiry
or investigation is being had by either House, or any committee
of either House or any joint committee of the Congress.
If you are confirmed, will you commit to protect the rights of all
career employees of the Commerce Department, including their right to
speak with Congress? Will you commit to communicate employees'
whistleblower rights via e-mail to all Commerce Department employees
within a week of being sworn in?
Answer. I will adhere to the law and contracts. If confirmed, I
will also make sure that the employees of the Department know of their
rights and protections under the Whistleblower law.
Question 5. The President-elect appears to be planning to ignore
the advice he was given by bipartisan ethics experts to divest himself
from his business interests. Do you commit to ensure that no employee
of the Commerce Department is pressured to take--or not take--any
regulatory or enforcement action because that decision would adversely
impact business interests associated with the President-elect or his
family? If not, why not? If yes, how will you know exactly what all of
the Trump family interests are in the absence of the release of his tax
returns?
Answer. If confirmed, I will work to ensure that I and all
employees of the Department act with integrity and comply with all
applicable laws.
Question 6. As our environmental intelligence agency, do you
believe that the National Oceanic and Atmospheric Administration (NOAA)
should look at both short-term and long-term changes in our
environment? What do you see as NOAA and the National Weather Service's
role in working with communities prior to a weather event?
Answer. Early and accurate weather forecasts and warnings, and
hopefully increased coordination with emergency services as FirstNet is
brought on line.
Question 7. Given the importance of data collection to NOAA's
mission, will you continue to support NOAA efforts to increase and
enhance observations of the atmosphere and ocean, including physical,
chemical, and biological parameters? Specifically, how will you
continue increase and enhance the atmosphere and ocean observing
systems?
Answer. I will support NOAA's capital expenditure requests.
Question 8. Will you continue to use NOAA's existing scientific
integrity policy?
Answer. The integrity of scientific examination and reporting on
data is essential.
Question 9. Education is a key component to ensuring we have a
solid future generation of Earth scientists. NOAA's education programs
provide lesson plans for teachers and support professional development
opportunity. They also provide opportunities to students including the
Ernest F. Hollings Undergraduate Scholarship Program and the Sea Grant
John A. Knauss Fellowship. What are your educational priorities for
NOAA, and how do you see education for students and teachers in NOAA's
mission and critical functions?
Answer. I believe that NOAA's educational initiatives are generally
strong but, if confirmed, will encourage staff to develop even more
outreach.
Question 10. What are your priorities for the National Oceanic and
Atmospheric Administration (NOAA) Fisheries and specific plans for
maintaining continued success?
Will you work with Congress to ensure that the Department of
Commerce continues to allocate the appropriate personnel and resources
to manage U.S. fisheries to the best extent possible?
What is your approach for using science to achieve healthy stock
levels, support a robust fishing industry and inform fisheries
management decisions?
Improving the data management system, including enhancing
uniformity, standardization, and protocols will allow for a more
responsive fisheries management process. What specific plans do you
have to improve the collection and data management systems, given the
current resources of NOAA Fisheries?
Answer. I share the Committee's commitment to sustainable fisheries
as embodied in the Magnuson-Stevens Act. Good science on fish stocks
and oceanic conditions is essential to meet the MSA's sustainable
fishery goals. Collecting accurate information regarding directed
fishing and bycatch is a critical component of effective fishery
management. I am aware that stationing observers on smaller fishing
vessels can be challenging. If confirmed I would support continuing to
work with industry to find cost effective, accurate and timely methods
for catch and bycatch reporting in order to improve fishery management.
Question 11. As Secretary of Commerce, what actions would you
support to ensure that seafood brought to the market is legally caught
and sustainable?
Answer. I strongly oppose illegal importation of anything. Ensuring
that seafood brought to the U.S. market is legally caught and
sustainable is very important. I understand that NOAA is working on
several initiatives on this front. I look forward to working with you
and the Committee to address these important issues.
Question 12. The Northeast published the first regional ocean plan,
providing a framework for all the activities that occur within our
ocean waters. This ground-up approach set out to better the cooperation
from users and local governments to the state and Federal Government.
Will you continue to support these regional plans?
Answer. I look forward to reviewing the plans and intend to
continue NOAA's participation in these collaborative efforts.
Question 13. The National Weather Service is in negotiations with
their employees' union for the first time in 15 years. Will you commit
to allowing the process to continue as agreed upon already?
Answer. If confirmed, I will promptly undertake to understand the
status of the labor negotiations.
Question 14. The National Ocean Service helps promote the swift and
safe movement of vessels by providing important charting and mapping
services. How will you ensure that our Nation's navigation charts and
hydrography data are up to date and accessible?
Answer. I agree that mapping and charting is an important function
of NOAA, and, if confirmed, I look forward to working with the Congress
to address this important issue.
Question 15. The Commerce Committee questionnaire asked if ``you or
any business or nonprofit of which you are or were an officer [have]
ever been involved as a party in an administrative agency proceeding,
criminal proceeding, or civil litigation.'' While you have identified
eight lawsuits in which you were a party, you noted in your response
that you could ``also have been associated with a number of
corporations and other entities and, from time to time, such entities
(including, in some instances, their directors, officers and employees)
have been involved, in the ordinary course, in judicial or regulatory
proceedings relating to their businesses.'' Will you commit to recuse
yourself without waiver and for the entirety of your tenure at the
Department of Commerce from participating in any issue relating to a
case in which you (or your company, or an organization with which you
were affiliated) were a named party? If no, why not?
Answer. In the event that a matter involving an asset I still hold
or a legal proceeding I was or am involved in should arise, I assure
you that I will recuse myself in accordance with the commitments that I
made in my ethics agreement. Further, I will at all times rely on the
monitoring and judgment of the Department's ethics officials to ensure
that I do not participate in any matter about which they advise me that
a conflict of interest would arise.
Question 16. Were you or any business or nonprofit of which you are
or were an officer involved as a party in any of the following cases?
If yes, please a) explain why each such case was not included in the
response to your questionnaire, and b) respond to the question of
whether you will commit to recuse yourself without waiver and for the
entirety of your tenure at the Department of Commerce from
participating in any issue relating to each such case, and if no, why
not?
Answer.
Moncavage v. Faris et al., No. 9:14-cv-81378 (S.D. Fla.):
This complaint was never served and was voluntarily dismissed
without prejudice 6 days after it was filed. I was named as a
defendant, but was not a party because service was never
completed.
In re: International Textile Group Merger Litigation, C.A.
No. 2009-CP-23-3346 (Related Action: Menezes v. WL Ross & Co.,
403 S.C. 522, 744 S.E.2d 178(2013)):
I was named as an individual defendant. The case settled.
Saratoga Advantage Trust v. ICG, Inc. et al., No. 2:08-cv-
00011 (S.D. W.Va.):
I was named as an individual defendant. The case settled.
City of Ann Arbor Employees' Retirement System v. ICG, Inc.,
2008 WL 4509356 (S.D. W.Va.):
I was named as an individual defendant. The case was dismissed.
Giles v. ICG, Inc. et al., No. 3:11-cv-00330 (S.D. W.Va.):
I was named among various individual defendants. The case
settled. This case was related to Kramer v. Ross, et al., Court
of Chancery of Delaware 6470-VC, which is listed in Attachment
Six of the questionnaire response. Another related action was
Isakov v. International Coal Group, Inc., et al., Court of
Chancery of Delaware 6505-VCP.
In re Mego Financial Corp. Securities Litig., 213 F.3d 454
(9th Cir. 2000):
As I had been an outside director of Mego (the target
defendant), I was named as an individual defendant. The case
settled.
Weiss v. Sunasco Incorporated, 295 F. Supp. 824 (S.D.N.Y.
1969):
As I was an outside director of Sunasco (the target defendant),
I was originally named as an individual defendant. I was later
dropped from the complaint.
In the Matter of WL Ross & Co. LLC (August 24, 2016):
This was an SEC administrative proceeding. I was not
individually named.
Parker v. AHMSI Insurance Agency Inc. d/b/a Belt Line
Insurance Agency, No. 1:15-cv-23840 (S.D. Fla.):
This case is currently pending in S.D. Fla., with several funds
named as defendants: WL Ross & Co., LLC, WLR AHM Co-Invest,
L.P., WLR IV Parallel ESC, L.P., WLR Recovery Fund III, L.P.,
WLR/GS Master Co-Investment, L.P., WLR Recovery Fund II, L.P. I
am not individually named.
Related Action: Nungester, et al., v. AHMSI Insurance
Agency Inc. d/b/a Belt Line Insurance Agency, No. 14-cv-
7338 (S.D.N.Y.):
This case was dismissed before any fund defendants
entered an appearance. I was not individually named.
DIGJAM Limited v. WL Ross & Co. LLC, 09-cv-01607 (S.D.N.Y.):
This case was dismissed on July 7, 2009. I was not individually
named as a defendant.
Perez v. WL Ross & Co. LLC, No. 08-cv-00243 (N.D. Ill.).:
This case was dismissed after initial status conference on
Plaintiff's own motion. WL Ross & Co. LLC was named as a
defendant, but I was not individually named.
Question 17. Will you support and advance on a timely basis the
replacement of NOAA Fisheries' fleet of aging and outdated scientific
research vessels to support the science necessary for effective
management of the Nation's fisheries, especially given the changing
ocean and climate systems?
Answer. I support NOAA's fleet renovation program.
______
Response to Written Questions Submitted by Hon. Cory Booker to
Wilbur L. Ross, Jr.
Question 1. Last year, the Department of Commerce sought comment on
issues relating to the Internet of Things as part of the agency's
Digital Economy Agenda to help inform decisions to foster growth of the
Internet of Things. I've worked with a bipartisan group of colleagues
on legislation that would create an Internet of Things working group
led by the Secretary of Commerce to further expand this technology and
enable government to keep pace with innovation. Do you plan to continue
the Department of Commerce's support for innovative new technologies
including the Internet of Things?
Answer. Yes. The NTIA and NIST both play direct roles in supporting
innovative new technologies, including those that support the Internet
of Things. If confirmed, I will work with NTIA to promote the
availability of spectrum for broadband applications and new innovation,
including the Internet of Things, while ensuring that the long-term
needs of the United States continue to be met.
Question 2. Previous administrations have recognized the broad
benefits the digital economy brings to the overall U.S. economy. The
Internet sector alone makes up 6 percent of U.S. GDP and is responsible
for more than 3 million American jobs. Additionally, 75 percent of the
value created by the Internet is captured by companies in traditional
American industries who embrace the Internet to connect with new
customers and suppliers.
Past Administrations have made a point of having senior level
technology advisors to help ensure our policies take these vast
economic benefits into account.
Will you prioritize the digital economy as secretary and will you
appoint a senior digital economy official to advise you on these
economically critical issues?
Answer. I agree that it is important to be fully briefed on new
technologies and the digital economy. To that end I will develop a
structure to ensure that I receive the soundest advice possible.
Question 3. The Department of Commerce is responsible for the
release of vital data, whether through the National Institute of
Standards and Technology (NIST) or at the Economics and Statistics
Administration that releases GDP data and runs the Census. Are you
committed to keeping with consistent release of information and data to
the general public?
Answer. I favor the prompt distribution of the maximum depth and
breadth of high quality, reliable data that is feasible.
Question 4. The National Oceanic and Atmospheric Administration
(NOAA) makes up 60 percent of the Department of Commerce budget. Our
nation's ocean economy contributes almost twice as much as the entire
farm economy to the Nation's GDP and employs more people. How important
do you think NOAA is to the Commerce Department's mission, and what do
you think its most critical functions are?
Answer. NOAA is hugely important. Improving the accuracy and
timeliness of weather information will protect lives and property.
NOAA's fishery activities are equally important, and it plays a vital
role in providing accurate maps for safe navigation. Finally, I favor
pure scientific research of all forms. As a resident of Southern
Florida, I am very aware of the importance of these functions.
Question 5. Will you commit to allowing NOAA to publish vital
weather and atmospheric data so that the public can continue to be
informed about the state of our environment?
Answer. I am not aware of any artificial constraints on NOAA's
publication of data and have no present intention of changing that
situation.
Question 6. The Exclusive Economic Zone (EEZ) of the United States
encompasses an ocean area larger than that of any other country and one
and a half times the size of the continental U.S. What do you see as
NOAA's role in understanding and managing this area?
Answer. NOAA has a clear role in the management and scientific
exploration of the EEZ--from fisheries management, to reviewing
activities for the exploration and extraction of resources, to mapping
and nautical charting for safe and efficient navigation. If confirmed,
I am looking forward to working with you on these matters.
Question 7. Do you support the ability of coastal states to
determine the consistency of Federal actions, including the leasing of
Federal offshore lands for oil and gas exploration and drilling, with
the states' federally approved coastal zone management programs, as
required by the Federal Coastal Zone Management Act?
Answer. If confirmed I intend to comply with the Coastal Zone
Management Act.
Question 8. Do you believe that government scientists should ever
be restricted in when and how they communicate their research findings?
Answer. Scientists should be free to communicate data clearly and
concisely.
Question 9. Is there ever a point in which a political appointee
should ask a scientist to change or modify their research results?
Answer. Scientists should be free to communicate data clearly and
concisely.
Question 10. NOAA's current scientific integrity policy
articulates, among other things, that agency scientists should avoid
conflicts of interest and conduct science free from political
interference. Do you agree with these principles?
Answer. Science is science and should not encompass bias. If
confirmed, I look forward to a full briefing on NOAA's scientific
integrity policy.
Question 11. Commercial fishermen in the United States are
currently struggling with the impacts of climate change. For example,
two thirds of the commercial fish species in New England have moved
northward due to warming waters. NOAA recently developed regional
research plans to help better manage our commercial fisheries in the
face of climate change. Will you support this research agenda?
Answer. As I mentioned in the hearing, I have enjoyed talking with
the Members of the Committee about the fishing interests in the
different states. I understand that this is an important industry and
that this is an important issue. If confirmed, I look forward to
working with Congress on these issues.
Question 12. NOAA oversees a large proportion of climate research.
Will you maintain current budgets for that important area of science?
Answer. I have not been briefed on the details of NOAA's budget and
naturally have not reviewed NOAA management's recommendations.
Supporting accurate and timely weather forecasts to safeguard life and
property and facilitate commerce and tourism will be a priority.
Question 13. Over the past three years, states from Maine to
Virginia have worked in coordination with multiple Federal agencies,
regional fisheries managers, and tribes--and with extensive industry
and public involvement--to develop two regionally specific ocean plans
that will help ensure the waters off our shores remain healthy and
continue to serve as an economic engine for the long haul. The plans
set out best practices for coordination between state and Federal
agencies on a host of burgeoning issues from sand mining to aquaculture
so that agencies will work together more efficiently to advance smart,
responsible development. A great deal of effort has been invested in
these plans and the states like mine expect to see Federal agencies
keep their commitments. Will you support NOAA's continued engagement in
these regionally-led efforts?
Answer. I look forward to reviewing the plans and intend to
continue NOAA's participation in these collaborative efforts.
Question 14. This Committee, under the leadership of Senator
Stevens and others, led the reauthorization of the Magnuson Stevens
Fishery Conservation and Management Act in 1996 and again in 2006. As a
result, the law now includes important requirements for sustainable
management of our Nation's fisheries, including (1) an end to
overfishing, (2) the setting of science-based annual catch limits that
ensure that overfishing does not occur; and (3) the rebuilding of
depleted fish populations to healthy levels. These requirements have
led to a restoration to healthy levels of a large number of U.S.
fisheries, a steady rise in the value of our Nation's seafood harvest,
and made the U.S. a leader in sustainable fisheries. We are looked at
as a model by other countries. Will you commit to helping us preserve,
and not weaken, these current requirements in the law?
Answer. In principle, yes. I have been very interested in hearing
about the many diverse and important fishing interests around the
country. It is clear that this is a very important industry and that
this is an important issue to the Committee and the Nation's economy.
If confirmed, I look forward to working with the Congress on these
issues.
Question 15. An estimated $1 billion of illegally caught seafood is
imported into the U.S. annually, which undercuts law-abiding U.S.
fishermen who are fishing fairly. Illegal seafood imports also
undermine the sustainability of the world's fisheries by flooding the
market with fish that have not had to meet the same protective
environmental standards as U.S.-caught fish. In 2014, the U.S. convened
a cross-government effort on Combating Illegal, Unreported and
Unregulated (IUU) Fishing and Seafood Fraud to address the economic and
environmental problems associated with IUU fishing. Since then the Task
Force has been working across agencies to address IUU fishing through
international and domestic actions, including implementation of the
recently adopted Traceability rule. What will you do to address the
international IUU fishing crisis, protect the health of global
fisheries, and protect the interests of the U.S. fishing industry?
Answer. I strongly oppose illegal importation of anything. Ensuring
that seafood brought to the U.S. market is legally caught and
sustainable is very important. I understand that NOAA is working on
several initiatives on this front. I look forward to working with you
and the Committee to address these important issues.
Question 16. Ocean noise pollution from seismic oil and gas
blasting is recognized as a major threat to whales and other marine
life. Last year, in a statement to President Obama, a group of leading
marine experts expressed concern that the introduction of seismic
airgun blasting off the U.S. east coast would jeopardize the survival
of the endangered North Atlantic right whale; the year before, marine
scientists warned that airgun blasting off the east coast would have
long-lasting, widespread impacts on the region's marine mammal and fish
populations. Nearly 100 counties and towns and more than 30,000
businesses across the region have expressed strong opposition to
seismic exploration off their shores. Do you support or do you oppose
seismic exploration for oil and gas off the U.S. east coast?
Answer. I would have to rely on scientific advice and appreciate
that these are complex issues that require careful consideration. As a
resident of Southern Florida, I also understand how important coastal
communities are to our economy. I understand that this is an important
issue to you, and if confirmed, I look forward to working with the
Congress on these issues.
Question 17. What will you do to protect the marine environment
from seismic exploration in other regions?
Answer. If confirmed, I look forward to being briefed by NOAA on
seismic impacts on marine mammals and the marine environment. As you
know, NOAA and the Department are required to comment on impacts to
marine mammals and other marine species as part of the National
Environmental Policy Act review process, and this important work will
continue to be a priority.
Question 18. Last year NOAA adopted an Ocean Noise Strategy to
manage the chronic, cumulative impacts of ocean noise, which the
scientific community recognizes a major environmental threat to
everything from great whales to small invertebrates. Will you make the
Ocean Noise Strategy a funding priority for your Department?
Answer. I have not yet been briefed on this strategy. I know that
the scientific work that NOAA does is important in a wide range of
areas. If confirmed I look forward to working with Congress on this
issue.
Question 19. For more than 40 years, the Marine Mammal Protection
Act has been a global model for the conservation of whales, dolphins,
seals, and other iconic species--species that are critical to ocean
health and are passionately supported by the American public. Under the
MMPA, marine mammal species in U.S. waters have fared significantly
better than those in most other regions, with many populations
rebounding and all benefiting from mitigation and other conservation
measures required by the Act. But the continued health of our marine
mammal populations depends on the integrity of this legislation. What
will you do to defend and promote the MMPA's precautionary standards?
Answer. I understand that United States law has set many important
standards for the protection of the marine environment. If confirmed, I
look forward to exercising judiciously the Department's
responsibilities under the MMPA and other laws enacted by Congress for
the protection of marine species and the marine environment.
Question 20. A number of iconic, endangered marine mammal
populations off our shores, including North Atlantic right whales off
the east coast, southern resident killer whales off the Pacific
Northwest, and beluga whales in Cook Inlet, Alaska, are failing to
recover from near-extinction and may indeed be in active decline. What
concrete actions will you take to ensure the recovery of these
critically endangered populations?
Answer. The health of our marine mammal populations is very
important. If confirmed, I look forward to engaging with NOAA experts
to learn more about these issues and what may be the best strategies
for the health of these populations going forward.
Question 21. NOAA recently issued regulations requiring that
foreign fisheries imports meet the same protective standards for marine
mammal bycatch that U.S. fisheries do. This measure, which is legally
required under the Marine Mammal Protection Act, has the potential to
spare tens of thousands of marine mammals around the world from
entanglement and death, and has the benefit of putting U.S. fishers on
a more level playing field with their foreign competitors. What will
you do to prioritize enforcement of our marine mammal bycatch standards
on foreign fisheries imports?
Answer. I believe in making sure that U.S. businesses have a fair
playing field, and that certainly includes our fishing industries. If
confirmed, I look forward to engaging with NOAA on its activities in
this area as well as our enforcement strategies and priorities for
protecting U.S. fishing interests.
Question 22. And what actions will you take to ensure that our
domestic bycatch standards remain robust?
Answer. I know this is an important issue to you. If confirmed, I
look forward to being briefed on this issue and working with the
Congress to maintain our global leadership on bycatch issues.
Question 23. Unfortunately, there are an increasing number of
marine species on the threatened or endangered species list. Do you
support protecting these threatened and endangered marine species and
their critical habitats?
Answer. The health of our marine species populations is very
important. If confirmed, I look forward to engaging with NOAA experts
to learn more about these issues and what options may be the best
strategies for the health of these populations going forward.
Question 24. I want to turn to an area of involvement where the
Department of Commerce under President Obama has made enormous strides:
advanced manufacturing. In 2014, President Obama signed a law that
would create different manufacturing innovation institutes that would
work to bring together industry, academia, and government actors to
foster innovation in manufacturing. The program is called Manufacturing
USA.
To date, there have been nine manufacturing innovation institutes
established or announced with more that may come in the coming year.
Will you commit to keeping this Obama program, which passed
Congress with bipartisan support?
Answer. Advanced manufacturing is critically important to United
States competitiveness. Everything I have learned thus far about
Manufacturing USA suggests that it has produced good results. If
confirmed, I am committed to ensuring that the Department continues to
strengthen U.S. advanced manufacturing capabilities in the most
effective manner possible.
Question 25. Do you have any specific initiatives that will spur
advanced manufacturing in the United States?
Answer. Increased private sector awareness of the opportunities for
advanced manufacturing and means of achieving them should be a
priority.
Question 26. In this role, you will be charged with overseeing the
National Telecommunications Information Administration, NTIA, which
manages Federal spectrum holdings. What are your views on Federal
spectrum?
Answer. I favor the maximum private use of spectrum that is
consistent with the diverse long term needs of the United States for
use of this valuable public resource.
Question 27. The nation is undergoing a process recommended by the
9/11 Commission to outfit the country with a nationwide public safety
telecommunications network known as FirstNet. This will improve the
safety of our citizens and provide first responders with the support
they need to effectively save lives and respond to emergencies. How do
you plan to ensure total transparency and careful oversight of this
roll out?
Answer. The concept of FirstNet seems sound. If confirmed I will
work to address the problems that have arisen in the early stages of
the rollout and will exercise careful oversight of the process. It will
be important to keep open communication with the States and Congress as
FirstNet builds out, in order to ensure maximum participation and
minimize the cost for using the network.
Question 28. In addition to my role on the Commerce Committee, I am
member of the Senate Committee on Small Business and Entrepreneurship.
One of my key priorities has been to increase the number of
minority and women-owned small businesses. As the Secretary of
Commerce, you will have oversight and assist in the management of
Commerce's Minority Business Development Agency (MBDA).
Can you speak to your view of the Department's role in increasing
the number of minority- and women-owned businesses? How will you build
upon the current administration's efforts?
Answer. I strongly support the objectives of the MBDA and will try
to increase public awareness of the assistance MBDA can provide.
Question 29. As you know, in today's economy broadband is no longer
a luxury, but a necessity for people to participate in our job markets,
access goods and services, and fulfill their educations.
Thus, I have long supported the goal of connecting all Americans to
high-speed, high capacity Internet access. The Secretary of Commerce
plays an important role in achieving this end. If confirmed, you will
have oversight of the National Telecommunications and Information
Administration, which manages spectrum--a necessity for wireless and
mobile broadband--for the Federal Government.
How will you encourage agencies to use spectrum more efficiently,
thereby making more spectrum available for the private sector to ensure
continued economic growth and opportunities?
Answer. I favor analyzing what the government's long-term needs are
for spectrum and devising some means of incentivizing current spectrum
users to divest spectrum that they do not need. This incentive plan may
well be contingent on Congressional action.
Question 30. If confirmed to lead the Department of Commerce, will
you commit that NTIA will continue its work to explore opportunities
for spectrum sharing between Federal and non-Federal users?
Answer. Yes.
Question 31. Unlicensed spectrum is, and will continue to be
critical for U.S. economic growth. According to some forecasts, by
2020, the Internet of Things could connect 50 billion devices, with an
estimated economic impact of $19 trillion.
Given that the vast majority of IoT traffic travels over unlicensed
spectrum, what actions will you direct NTIA to take to ensure American
consumers and businesses have access to sufficient unlicensed spectrum
to promote growth in the IoT economy?
Answer. Unlicensed use of spectrum has been an engine of innovation
and economic activity. This will continue as devices and applications
for the Internet of Things proliferate. If confirmed, I will ensure
NTIA continues to make spectrum available in a manner that advances
innovation and economic prosperity as well as meeting the long term
needs of the United States.
Question 32. In our 21st Century economy, broadband access and
adoption are core issues of economic opportunity and competitiveness.
Entrepreneurs can't connect to the global economy without access to
broadband, and communities without high speed connectivity aren't
realistic locations for companies to invest in. What steps will you
take to promote broadband deployment, and the availability of
affordable and competitive broadband, to unserved and underserved
places in rural, tribal, and low-income parts of America?
Answer. The logical way to foster broadband deployment and increase
broadband availability in currently unserved and underserved areas
would be to include broadband in whatever infrastructure package
Congress ultimately adopts. I will also review the programs within the
Department to determine which programs have been most successful in
enhancing broadband deployment and availability.
Question 33. Among your many responsibilities is one mandated by
the U.S. Constitution, overseeing the successful organization and
management of the 2020 Decennial Census. As you know, the Census helps
to insure fair and equal representation and provides critical
population data that informs our policy decisions. What assurances can
you give us today that you will work diligently to ensure 2020 is the
best census in our history?
Answer. As a former enumerator employed by the Census I am aware of
the magnitude and complexity of the task as well as its importance to
the allocation of Congressional seats and funding. I will work hard to
ensure a full, fair and accurate Census and to meet the challenges of
the changed technological approach to the process.
Question 34. America's patent system has been the model for the
world in creating strong patents that lead to technological innovation
and spur job growth. But in recent years, countries in Western Europe
and Asia have challenged our global position on patents by creating
strong patent protections that rival ours, which has led to missed
economic opportunities and the loss of American jobs to countries
overseas. Do you agree that America should regain its preeminent
standing as the global gold standard on patent protection to ensure
that we protect our role as the leader in the free world on spurring
innovation and job growth? If so, how do we accomplish that goal?
Answer. Yes. If confirmed, I will seek to develop a detailed plan
to ensure America's patent system is the global gold standard.
Question 35. When we met in my office, you offered your thoughts on
re-negotiating NAFTA as a way of supporting manufacturers in the United
States. You pointed out that Mexico's minimum wage has fairly low in
the decades since the agreement with signed, contributing to a loss of
jobs. How do we ensure a renegotiated trade agreement will help
American manufacturers? How can we do that while supporting wages in
Mexico also rise?
Answer. The two objectives are complementary, not contradictory. In
my view, achieving the first will result in the second.
Question 36. In renegotiating NAFTA and other trade agreements,
will you maintain or strengthen support for Buy America policies?
Answer. Buy America will be a major topic in any renegotiation of
NAFTA or the negotiation of new bilateral agreements with our trading
partners.
Question 37. In renegotiating NAFTA, will you support ending the
controversial investor-state dispute settlement provisions that can
actually have the effect of rolling back consumer protections or food
labeling laws?
Answer. I do not support the current investor-state dispute
settlement provisions. I believe the long-term objective should be to
bring other countries up toward our labor, environmental and health
standards.
Question 38. How would renegotiating NAFTA help startups and tech
entrepreneurs?
Answer. The present NAFTA does nothing special to help American
entrepreneurs and largely ignores technology. These are two of the
imperfections that can be addressed in any negotiation of new
agreements with our trading partners.
Question 39. American businesses of all sizes are world leaders in
the new data-driven economy, driving the fields of cloud computing,
data analytics, the Internet of Things, and electronic payment systems
among others. They depend on the ability to transfer information across
borders to and from the United States. However, many foreign
governments are restricting the free flow of data. We are increasingly
seeing policies that try to force U.S. businesses to shed jobs in the
U.S. and localize them into foreign markets.
Congress has called for action against digital trade impediments.
The President has extensive trade enforcement authorities.
As Secretary, what actions will you pursue to obtain a level
playing field for America's digital trade champions?
Answer. It is critical for the U.S. economy and the American worker
that U.S. technology firms are able to compete on a level playing field
overseas. If confirmed, I will use all the tools available to the
Department of Commerce to secure fair and nondiscriminatory digital
trade practices and push back on protectionist regulations targeting
American firms.
Question 40. In a report on China's compliance with WTO obligations
issued last year, the office of U.S. Trade Representative stated
``China has not yet taken needed steps to authorize access by foreign
suppliers . . . [to the electronic payment market'' despite its trade
obligations.
As Secretary, how do you plan to ensure that China lives up to its
WTO commitments in this area, and others?
Answer. The basic premise behind the U.S. Government's support of
China's accession to the WTO was that China would play by the rules.
That premise was incorrect. Stronger enforcement is the key to
obtaining compliance.
Question 41. Thousands of U.S. businesses, large and small, have
customers overseas. With the explosion of cloud computing, nearly all
of them depend on their ability to transfer information rapidly and
efficiently to and from facilities and customers outside the United
States. Digitally-enabled trade has played a role in the creation of
millions of American jobs. But digital trade is vulnerable to
restrictions imposed by foreign governments restricting the free flow
of data and requiring that it be stored within foreign countries. These
forced localization restrictions are increasing across the globe.
The Commerce Department has been a leader in U.S. efforts to combat
such restrictions. As Secretary, what efforts will you undertake with
foreign governments to enable digital trade to thrive and grow?
Answer. I am strongly pro-cloud computing. If confirmed, I will
work to leverage all of the collective expertise of the Commerce
Department's many agencies and bureaus to both advocate for open
digital trade and to push back on restrictive digital policies
overseas, such as restrictions on the free flow of data and forced data
localization requirements.
Question 42. I think we agree there is a geographic disparity in
the economy. Cities like Newark, NJ and perhaps rural regions like the
Chairman's see challenges in attracting capital and investment, while
regions like Silicon Valley or New York have proven more resilient and
dynamic.
The Department of Commerce can play an important role when it comes
to issues concerning the innovation and digital economy. America has
some great successes to share when it comes to the growth of startups
and new tech industries that have changed commerce in this country.
How do you plan to support and bolster entrepreneurs, particularly
those in emerging technologies and startups, ensure they can compete on
an even playing field with businesses in other countries?
Answer. I understand that Commerce is engaging on this issue on
several fronts. For example, the Commerce Department's International
Trade Administration's mission is to create prosperity by strengthening
the international competitiveness of U.S. industry, promoting trade and
investment, and ensuring fair trade and compliance with trade laws and
agreements. I understand that the Economic Development Administration
(EDA) also plays a role in helping move communities up the economic
ladder to produce incrementally more valuable goods and services. It is
also my understanding that EDA prioritizes support for entrepreneurs
and starts-up, helping them to accelerate the growth of their ideas
into the marketplace and compete globally. I look forward to working
with the Congress and the U.S. business community to help promote
innovation and entrepreneurship.
Question 43. I want to hear about your vision--and the Trump
Administration's--for jobs in the U.S. economy. There is, beyond the
role of national defense, no more important responsibility than for
members of this Federal Government to work to create an economy where
every American has the chance to succeed.
While the economy has dramatically improved during the Obama era
going from the brink of a depression and an unemployment rate of 10
percent to 4.7 percent in the recent jobs report. Over 14.8 million
jobs have been created during the economic recovery under President
Obama. This number includes the over 800,000 jobs in manufacturing
created since the end of the recession. Do you agree that President-
elect Trump will take office with a stronger economy than President
Obama did?
Answer. The economy remains unable to meet the needs of the
American worker.
Question 44. I want to follow up on a transaction that the
President-Elect influenced in late 2016 involving the Indiana company,
Carrier. I was grateful for the 700 individuals who were able to keep
their jobs as a result of the deal. However, I was troubled to see many
American workers lose their jobs, some of the remaining jobs get sent
overseas to Mexico, while Carrier received $7 million in tax breaks.
Was the recent ``Carrier Deal'' a one-time action by the President-
Elect or the blue print of a policy of the Trump Administration? Does
the Trump Administration believe that government should actively
intervene in the marketplace to stem job losses?
Answer. The tax breaks granted Carrier by the state of Indiana are
consistent with Indiana's economic development policy.
Question 45. You have stated a desire to integrate new technologies
into the Department of Commerce and to utilize technology to better
implement the 2020 Census count. Can you elaborate on your plans to
achieve these goals?
Answer. It is my understanding that the 2020 Census is undergoing a
complete redesign with an effort to embrace technology to modernize and
automate its operations without sacrificing data quality. As a one-time
Census enumerator, if confirmed, I look forward to working with the
Census team on this critically important job.
______
Response to Written Questions Submitted by Hon. Tom Udall to
Wilbur L. Ross, Jr.
Question 1. Are you the beneficiary or trustee of any discretionary
trust that has not been fully disclosed to the Committee or the Office
of Government Ethics? If so, please provide detailed information about
the trust(s).
Answer. No.
Question 2. During a campaign speech in Ashburn, Virginia last
August, President-elect Trump reportedly said that he would ``at least
double'' Hillary Clinton's proposed $275 billion infrastructure plan.
Yet he did not provide many details where the money to do this will
come from. A campaign website describes ``leverag[ing] new revenues and
work with financing authorities, public private partnerships, and other
prudent funding opportunities.'' Can you shed more light on what the
Trump infrastructure plan really is and how it will be funded?
Answer. The President's infrastructure proposal is under
development. At this time I have no more detail to provide.
Question 3. Some of my Congressional colleagues have reportedly
expressed concerns about how to pay for a Trump infrastructure plan.
There are news reports that estimate that a tax reform package could
lead companies to repatriate up to $200 billion of overseas cash
holdings. Such tax measures could be part of a broader agreement to
help fund infrastructure upgrades with Federal investments. What level
of direct Federal investment will be necessary to support a Trump
infrastructure plan?
Answer. As previously described, the President's infrastructure
proposal is under development and it would be premature to comment on
any particular aspect of it at this time.
Question 4. During the hearing you mentioned that infrastructure
spending can have an economic stimulus effect. Would direct Federal
investment to upgrade our Nation's infrastructure create jobs and
promote economic growth?
Answer. Yes. In general a significant portion of infrastructure
spending is paid out in labor costs, which results in an immediate
economic stimulus effect.
Question 5. Mr. Ross, I was pleased to learn during our meeting
that you have firsthand job experience as a Census worker. The 2020
Census will be one of your biggest challenges in your new job as
Commerce Secretary. One perennial challenge facing the Census is
getting an accurate count of Americans who are ethnic and racial
minorities. My home state of New Mexico has a large Hispanic population
and twenty-two Federally-recognized Indian tribes. The Census Bureau's
own analysis of the 2010 Census found that 1.5 percent of the Hispanic
population was undercounted. And almost 5 percent of American Indians
and Alaska Natives living on reservations were undercounted. Will you
commit to making improvements in the 2020 Census to ensure a more
accurate count of ethnic and racial minorities?
Answer. If confirmed, I will do my best to assure a full, fair and
accurate Census that includes hard-to-count populations.
Question 6. Tribes have expressed for years their interest in being
able to better access programs at the Commerce Department. I believe
better communication with tribes and having Commerce Department
personnel focused on working with our tribal governments are key steps
to making improvements. If confirmed, will you uphold our Federal
Government's treaty and trust responsibilities to Indian tribes?
Answer. If confirmed, I look forward to being involved in
government to government consultations with Federally-recognized Tribes
and working with Congress and Native Americans to improve understanding
of and access to the Department's programs.
Question 7. Mr. Ross, during our private meeting, we spoke at
length about the economic challenges facing many Native American
communities where the unemployment rate can be as high as 40 percent. I
believe that the Department of Commerce needs to do a better job of
harnessing its various tools to support economic development. One
proposal we discussed is creating an Office of Native Affairs within
the Commerce Secretary's office. This could encourage a more
coordinated and comprehensive approach to encourage job growth in
Indian country. Will you consider this idea and reply in writing
whether you will stand up such an office?
Answer. If confirmed I will formulate a policy as soon as
practical.
Question 8. Will you share in writing within 90 days how the
Commerce Department under your leadership will support economic growth
and job creation on tribal lands?
Answer. If confirmed, I will review the Department's current
programs and policies in this regard and will work with the Department
and Congress to advance policies that promote economic growth and job
creation throughout the country, including tribal areas and rural
communities.
Question 9. According to Federal Communications Commission data, 80
percent of those living on tribal lands in my home state do not have
access to fixed broadband. When FCC Chairman Tom Wheeler visited Acoma
Pueblo with me, we stopped by the tribe's community library. It has
free Wi-Fi that the librarian keeps on 24/7. That way those without
Internet at home can come to the parking lot after hours and still get
online from outside the building. These unserved areas are precisely
where broadband technology can help the most. By overcoming physical
distances and geographic isolation, broadband can help improve economic
development, education, and access to health care. What steps will the
Commerce Department take under your leadership to close the digital
divide facing Indian country?
Answer. Any infrastructure bill might be the logical place for
this.
Question 10. The appalling statistics for the digital divide on
tribal lands do not convey the real hardships and lost opportunities
that are a consequence of a lack of investment in telecommunications
infrastructure. Following the abduction and tragic death last year of
11-year-old Ashlynne Mike near Shiprock, New Mexico, the Navajo Nation
is working to put an amber alert system in place. But this will not
work in areas without wireless service. That is just one example that
highlights how the digital divide impacts those living on tribal lands.
So I strongly supported the inclusion of broadband infrastructure in
President Obama's stimulus package. NTIA's Broadband Technologies
Opportunities Program (BTOP), for example, supported important fiber
and wireless investments on the Navajo Nation. Will you support the
inclusion of direct Federal investments in broadband as part of a Trump
Administration infrastructure plan?
Answer. All unserved and underserved areas should be considered for
broadband deployment in any infrastructure bill. I support broadband
deployment as an important asset needed to promote jobs and facilitate
advanced manufacturing and technology innovation. I look forward to
being briefed on the Department's broadband efforts to date and working
to maximize the effectiveness of the Department's programs in this
regard.
Question 11. What are your own personal views on climate change and
the scientific evidence that demonstrates humans are impacting the
climate?
Answer. I know climate and weather information are important. If
confirmed, I will make sure the Department provides the accurate and
reliable data on these matters to the general public.
Question 12. How will your understanding of climate change inform
your leadership of the Department of Commerce?
Answer. If confirmed, I look forward to being fully briefed by the
Department's scientists on weather and climate issues. These briefings
will inform my leadership of the Department and the advice I provide if
confirmed as Secretary of Commerce.
Question 13. I was alarmed by news reports that the Trump
transition team sought a list of all Department of Energy employees or
contractors who attended climate change-related meetings. This sparked
fears of a potential purge of scientists based on their research. Will
you give your assurance that scientists and staff who work on climate
issues in the Department of Commerce will not face intimidation or any
negative attention based on their scientific research? Please answer
yes or no.
Answer. If confirmed, I will manage the Department without bias.
Scientific factual data should be the sole province of scientists.
Question 14. NOAA leads the interagency National Integrated Drought
Information System (NIDIS), which is charged with providing drought
early warnings to the United States. Farmers, particularly those in
drought-prone regions like much of New Mexico, rely on these
predictions for crop and water management. Will you continue this
important effort as Secretary of Commerce?
Answer. If confirmed, I look forward to being fully briefed on the
National Integrated Drought Information System. I recognize the
importance to farmers of timely and accurate information related to
drought conditions.
Question 15. As a member of the National Interagency Fire Center,
NOAA and the National Weather Service provide weather data that is
crucial for predicting fire conditions before fires begin, and for
monitoring fire-fighting conditions so that our first responders are
able to act in a safe and efficient way. This program is increasingly
important in states like New Mexico, where drought conditions make much
of our 16.7 million acres of forested land vulnerable to fires. Will
you continue this vital program within NOAA and the National Weather
Service?
Answer. I agree that the National Weather Service serves an
essential function. Timely and accurate weather information is crucial
to protect both lives and property, and especially so in areas prone to
wildfires. Weather information is also essential to the smooth
functioning of numerous areas of commerce, including aviation,
shipping, fishing and farming, to name just a few. Proper staffing of
the NWS is therefore important and, if confirmed, I intend to review
the current efforts and see how they can be improved, including with
respect to maintaining the National Weather Service's role in the
Interagency Fire Center.
Question 16. Mr. Ross, thank you for your interest in encouraging
efficient use of Federal spectrum, taking advantage of the potential
resources of the Spectrum Relocation Fund, and finding opportunities to
make more spectrum available for commercial use. However, this
generally refers to commercializing spectrum for licensed use (e.g.,
mobile phone networks). Could you state for the record whether you
agree with me that unlicensed spectrum (such as that currently used for
Wi-Fi enabled devices) also has a critical role in promoting innovation
and economic growth?
Answer. If confirmed, I will work with NTIA to promote the
availability of both licensed and unlicensed spectrum for broadband
applications and new innovation, including the Internet of Things,
while ensuring that the long-term needs of the United States continue
to be met.
Question 17. If confirmed, will you support ongoing NTIA efforts to
explore spectrum sharing opportunities between Federal and non-federal
users?
Answer. If confirmed, I look forward to being briefed on NTIA's
current efforts with respect to spectrum sharing, and in general will
favor policies that maximize efficient use of spectrum.
Question 18. During the hearing, you noted that Federal entities
should continue to have access to the spectrum they need. This is
particularly important since many Federal agencies rely on wireless
spectrum to meet their missions, including critical law enforcement and
national security functions. I would like to make sure you are also
aware that NTIA manages spectrum used by National Science Foundation-
supported research activities such as radio astronomy. Astronomers from
around the world use the Very Large Array (VLA) radio telescope located
outside Socorro, NM to make observations of stars, quasars, pulsars,
and galaxies that would not be possible with optical telescopes.
Current law allocates certain radio frequencies for such scientific use
and protects against harmful interference. If confirmed, will you
ensure that NTIA will continue to ensure that radio astronomers have
access to the spectrum their work depends on?
Answer. If confirmed, I look forward to being briefed by NTIA on
the many different government uses of the radio spectrum. Radio
astronomy seems like an appropriate use of spectrum to advance the
Nation's scientific knowledge.
Question 19. Trump campaign national policy director Stephen Miller
issued a statement (available at https://www.donaldjtrump.com/press-
releases/donald-j.-trump-opposes-president-obama-plan-to-surrender-
american-internet, accessed Jan. 18, 2017) in response to NTIA's long-
planned effort to privatize the administration of the Internet's domain
name system (DNS). The largely technical function of DNS can be
compared to maintaining a phone directory to help computers connect
across the Internet, for activities such as web browsing or cloud
computing services. Mr Miller stated that: ``The U.S. should not turn
control of the Internet over to the United Nations and the
international community. President Obama intends to do so on his own
authority--just 10 days from now, on October 1, unless Congress acts
quickly to stop him . . . . . Internet freedom is now at risk with the
President's intent to cede control to international interests,
including countries like China and Russia, which have a long track
record of trying to impose online censorship. Congress needs to act, or
Internet freedom will be lost for good, since there will be no way to
make it great again once it is lost.'' The October 1, 2016 expiration
of NTIA's Internet Assigned Numbers Authority (IANA) functions contract
that Mr. Miller's statement warned about has already occurred. Do you
believe the Internet today is now ``lost'' to international interests
including China and Russia?
Answer. I am not aware of any feasible alternative to the current
situation. Should a feasible alternative be presented it would
certainly merit serious consideration.
Question 20. Did the October 1, 2016 expiration of NTIA's Internet
Assigned Numbers Authority (IANA) functions contract result in a loss
of Internet freedom?
Answer. I have not seen a thorough analysis of this question.
Question 21. NTIA describes itself as ``the Executive Branch expert
on issues relating to the DNS and supports a multi-stakeholder approach
to the coordination of the DNS to ensure the long-term viability of the
Internet as a force for innovation and economic growth'' (available at
https://www.ntia.doc.gov/category/domain-name-system, accessed Jan. 18,
2017). Will NTIA under your leadership continue to support a multi-
stakeholder approach to Internet governance?
Answer. I have no reason to change this policy.
Question 22. The Middle Class Tax Relief and Job Creation Act of
2012 created the First Responder Network Authority (FirstNet) as an
independent authority within NTIA. Will you support efforts to ensure
that rural areas, and not just urban centers, benefit from this
initiative to create a public safety broadband network?
Answer. If confirmed, I look forward to being briefed on FirstNet's
plans for deploying in rural areas. I support broadband deployment as
an important asset needed to promote jobs and facilitate advanced
manufacturing and technology innovation.
Question 23. Mr. Ross, we heard a lot about the border during the
presidential campaign, such as plans to build a border wall and raise
tariffs on products from Mexico. This has caused concerns in
borderlands areas of my home state about how these policies could hurt
jobs and business opportunities. So I would like to invite you to visit
New Mexico and to meet some of my constituents who live and work near
the border. If confirmed, will you commit to visiting New Mexico to see
firsthand some of the economic challenges and opportunities in the Land
of Enchantment?
Answer. I look forward to future visits to New Mexico to learn
firsthand of the challenges and opportunities your communities face.
Question 24. According to reports, your transition team prepared a
memo outlining plans to begin reform of the North American Free Trade
Agreement (NAFTA) on ``day one''. Should you be confirmed, what role
will the Department of Commerce have in accomplishing this?
Answer. The Department of Commerce, USTR, the newly created
National Trade Council, and the President's new special advisor for
international negotiations will work collaboratively to maximize the
intellectual and analytical resources brought to bear on trade
negotiations. Congress has provided Commerce and USTR complementary
statutory roles, and these roles will be executed in a coordinated
manner with the support of the NTC and the special advisor.
Question 25. Do you plan to order the Department in partnership
with International Trade Commission to begin a study on the
ramifications of withdrawing from NAFTA?
Answer. The International Trade Commission will continue to perform
its statutory functions.
Question 26. Will you recommend notifying Mexico and Canada that
the United States intends to propose amendments NAFTA?
Answer. The President made clear during his campaign that the
United States intends to re-visit NAFTA and negotiate necessary changes
to ensure fair and balanced trade with both Mexico and Canada. I
support the President's view on this matter.
Question 27. If so, what amendment(s) will you as head of the
Department of Commerce propose under such NAFTA negotiations?
Answer. It is obviously premature to discuss the details of what
might be negotiated, but during the campaign concerns with compliance
and with trade agreement details were frequently raised. NAFTA issues
of concern include rules for country of origin, dispute resolution
mechanisms, and simultaneity of concessions. Addressing these concerns
will be part of any future negotiations.
Question 28. How will you utilize your role as Secretary of
Commerce to force China to adhere to its commitments made during the
2013 U.S.-China Strategic and Economic Dialogue to adopt a market-
determined exchange rate? China has yet to deliver on this commitment.
Will you recommend that the President take further action to stand up
for American workers and address China's currency manipulation?
Answer. I agree that currency manipulation is inappropriate and
should be addressed. However, it is the Department of the Treasury that
is responsible for designation of currency manipulation offenders, so I
must defer to Treasury's judgement with respect to whether or not any
particular country is engaged in the practice.
Question 29. New Mexico is a majority minority state. Nearly half--
48 percent--of New Mexicans are Hispanic and over 10 percent are Native
American. This diversity is one our state's greatest strengths. But it
also means that a larger proportion of business owners in New Mexico
face challenges obtaining contracts and financial awards when competing
globally. Around the country, MBDA does a great job working with
entrepreneurs including in Santa Fe. I was disappointed, however, that
MBDA decided to cease operations in Albuquerque. At this critical time
for New Mexico's economic security, I believe any decrease in MBDA's
services needs to be quickly corrected. What is your plan to provide
access to MBDA services in areas that do not currently have an MBDA
office?
Answer. If confirmed, I look forward to being briefed on MBDA
programs and understanding the funding and staffing challenges that
MBDA faces. I plan to review all aspects of the Department to find
efficiencies and cost savings in order to maximize the Department's
ability continue programs that promote jobs, innovation and exports.
Question 30. If confirmed, will you support NIST's ongoing efforts,
such as Head Health Challenges, to support the discovery, design and
deployment of advanced materials that can improve the protection of
athletes, members of the military and others from brain injuries?
Answer. If confirmed, I look forward to learning more about what
NIST is doing in this area. In general, I support the concept of
advanced material research.
______
Response to Written Questions Submitted by Hon. Gary Peters to
Wilbur L. Ross, Jr.
Question 1. Unfortunately today many are worried that data produced
by scientists during the Trump Administration will be edited, twisted,
or even completely hidden from the public by political appointees,
especially if that data is related to climate change. The Department of
Commerce, along with most other Federal agencies, has a policy on
scientific integrity to ensure that science is conducted and
communicated to the public without political interference. If
confirmed, will you commit to ensuring that scientists and technical
experts can edit scientific and technical content and communicate their
findings directly to the public?
Answer. If confirmed I will not interfere with the release of
factual scientific data.
Question 2. From weather satellites to advanced manufacturing
techniques, the Department of Commerce invests in a range of basic and
applied research that is critical to our Nation's safety and
prosperity. Given existing budgetary constraints, what research areas
will you prioritize at the Department?
Answer. Both objectives are important, and I will work with
policymakers on behalf of appropriate resources that our government
decides should be allocated for research.
Question 3. How will you balance short-term versus long-term
funding?
Answer. If confirmed I will weigh carefully the competing demands
for funding, and assess inputs to determine the appropriate balance
between the two, including information and advocacy from members of
Congress and the public.
Question 4. Manufacturing is a critical industry to the state of
Michigan and to our national economy. If we want to grow our auto and
defense sectors, we have to do more to support the small manufacturers
supply chain that serves as their bedrock. NIST's Manufacturing
Extension Partnership is the one Federal program that provides
technical assistance to the Nation's small manufacturing community,
including many defense, auto, transportation and electronics suppliers.
Can you commit to growing the Manufacturing Extension Partnership over
your tenure to improve the competitiveness of these small manufacturing
companies?
Answer. I have heard only good things about the NIST Manufacturing
Extension Partnership. If confirmed, I look forward to being fully
briefed on the program and will carefully consider it when allocating
resources within the Department. As you know, a key constraint on any
extension of the program is the amount of available funding that is
provided by Congress.
Question 5. Detroit, Michigan is home to the Lightweight
Innovations for Tomorrow (LIFT), which is one of the original
institutes of NIST's National Network for Manufacturing Institutes
(NNMI) under the Manufacturing USA Program. This public-private
partnership, founded by the University of Michigan, is focused on the
applied development for lightweight metal alloy production and
manufacturing technologies for defense and commercial transportation
applications. Michigan State University is also a key partner in the
Institute for Advanced Composites Manufacturing Innovation (IACMI),
another outpost of Manufacturing USA, which is focused on accelerating
development of manufacturing technologies for low-cost energy-efficient
manufacturing of composites for vehicles, wind turbines, and compressed
gas storage. This work is critical to our manufacturing sector and to
our international competitiveness. What do you see as the future of
Manufacturing USA? How can Congress and the Administration work
together to reach the goal of 45 institutes?
Answer. I have heard only good reports about the Manufacturing USA
program, and look forward, if confirmed, to a thorough briefing on it.
As you are aware, President Trump intends to make increased
manufacturing in the United States a priority, and programs like
Manufacturing USA would appear to be in line with that goal. The key
constraint on reaching the 45-institute objective is funding, which is
provided by Congress. If confirmed, I will carefully analyze the pace
at which we could afford to expand the program given current budgets
and competing priorities.
Question 6. One of the greatest threats facing our Nation today is
cybersecurity of our critical infrastructure systems and networks. What
is your view on the importance of cybersecurity? Are you committed to
the actionable recommendations from Commission on Enhancing National
Cybersecurity on securing and growing the digital economy? The report
recommends that we close workforce gaps through capacity building and
innovation investment--such as automation and artificial intelligence--
that will shape the future workforce. What role will NIST play in these
efforts? How will NIST and your Department of Commerce work to improve
the cybersecurity of the Internet of Things through private-public
collaboration?
Answer. Cybersecurity is a huge and immediate problem.
Strengthening our cybersecurity is critical to U.S. trade and national
security. If confirmed, I will work proactively through NIST and with
our interagency and industry partners to address the cybersecurity and
privacy challenges that our Nation currently faces and will regularly
review the Department's efforts to ensure that markets remain open to
U.S. innovators.
Question 7. The value of U.S. intellectual property is estimated at
over $5 trillion, and 60 percent of U.S. exports come from IP-intensive
industries. Patent protection helps innovators recoup the cost of R&D,
capitalize on their inventions, create jobs, and expand the economy. In
2012, the Elijah J. McCoy Midwest Regional U.S. Patent and Trademark
Office located in Detroit, Michigan was the first patent office to open
outside the Washington, D.C. area. This office serves Illinois,
Indiana, Iowa, Kentucky, Michigan, Minnesota, Missouri, Ohio and
Wisconsin. The USPTO has since opened locations in Texas, Colorado and
California and entered a partnership with Cornell University. In
addition to their administrative functions, these regional offices
provide valuable resources to local communities including workshops,
trainings, conferences and roundtables. Will you commit to maintaining,
supporting the Federal workforce at USPTO satellite offices in Detroit
and other innovation hubs like Silicon Valley and Austin?
Answer. I have heard only good reports about USPTO satellite
offices, and if confirmed look forward to working with Congress on this
issue.
Question 8. Last Congress, I introduced the bipartisan Small
Business Innovation Protection Act of 2016 which would require the SBA
and USPTO to enter partnerships to leverage existing outreach programs
in order to educate more small businesses on domestic and international
patents. Specifically, the bill will require the SBA and USPTO to
develop partnership agreements in order to develop high quality
training relating to domestic and international patent protection and
would require the SBA and USPTO to enter partnerships in order to
increase the effectiveness of SBDCs. Will you commit to working across
agencies to ensure the USPTO leverages resources in support of
America's small businesses?
Answer. If confirmed, I favor more patent oriented outreach to
small businesses and I will review your legislation for ideas on how to
improve USPTO's support for small businesses.
Question 9. The criminal justice system relies heavily on forensic
science to identify and prosecute criminals, yet many forensic tests
lack scientific validation. For several years, Department of Justice,
in partnership with NIST, has brought together scientists, law
enforcement, and representatives from the judicial community to enhance
the practice and improve the reliability of forensic science. However,
in a report last year, the President's Council of Advisors on Science
and Technology noted that forensic science methods and tests are still
not evaluated for foundational validity. The report recommended that
NIST perform such evaluations. What role do you think the Department of
Commerce can play in improving criminal justice in this country?
Answer. If confirmed, I look forward to being briefed on what NIST
has done to date to improve forensic science and will carefully
evaluate the report you cited. I agree that accurate and reliable
forensics are an important tool in our criminal justice system, and
look forward to working with you on this important issue.
Question 10. Will you prioritize investments to improve forensic
science methods at NIST?
Answer. NIST is responsible for carrying out many important
programs, including this one. If confirmed, I will carefully evaluate
NIST's priorities and will do my best to ensure that the available
funding is used to maximum effect.
Question 11. Under the terms of joining the World Trade
Organization, China agreed to be designated as a ``non-market economy''
for 15 years. This designation reflects the reality that China's state-
owned enterprises still have control over vast sectors of the Chinese
economy. The automatic designation expired last month, and now the
Chinese government believes it deserves to be recognized as a market
economy.
The Obama Administration has said that the United States would not
be changing China's status as a non-market economy, under the current
interpretation of the Commerce Department's statutory guidelines. Do
you see any reason why this outlook would change under your leadership,
if confirmed? Do you believe that China acts in today's interconnected
world as a true market economy?
Answer. I do not believe China is a market economy. As long as the
Chinese have massive overcapacity they will continue to dump. State-
owned enterprises are not required to make a profit because state owned
banks continue to prop them up. This sort of behavior is part of the
proof that China is not a market economy.
Question 12. One of my foremost concerns with the proposed Trans-
Pacific Partnership agreement was the lack of strong currency
manipulations provisions embedded in the final agreement. Will the
Trump Administration commit to the inclusion of strong, enforceable
currency provisions in any future bilateral or multilateral trade
agreements it may pursue?
Answer. It is obviously premature to discuss the details of what
might be negotiated, but during the campaign concerns with currency
manipulation were frequently raised. Addressing these concerns will be
part of any future negotiations.
______
Response to Written Questions Submitted by Hon. Tammy Baldwin to
Wilbur L. Ross, Jr.
Question 1. Mr. Ross, your Department of Commerce ethics agreement
states that you will receive a bonus payment and accelerated vesting of
stock from Invesco Ltd. should you be confirmed by the Senate. If you
were to leave Invesco for a competitor (as opposed to taking a position
in the Federal Government) would you receive the same bonus and
accelerated vesting treatment?
Answer. Invesco followed its usual procedure for employees who
depart on good terms.
Question 2. China claims that its protocol of accession to the WTO
requires all countries to treat it as a market economy in antidumping
investigations. The U.S. Government has concluded that the United
States is under no such obligation. Under the criteria applied by the
Commerce Department, China is clearly not a market economy. Treating
China as a market economy would essentially exempt it from the
antidumping laws, as Chinese companies would always be able to
manipulate prices to avoid dumping. As technical as it sounds, this is
actually one of the most important issues facing American
manufacturing, as well as the manufacturing sectors of the EU, Canada,
and Mexico, among others. Will you oppose any grant of market economy
status to China? With China now challenging the U.S. position on this
issue at the WTO, what will you do to defend our Nation's right to
treat China as a non-market economy? What can the Department do to
persuade our major trading partners, including the EU and Canada, to
also oppose the grant of market economy status to China?
Answer. I do not believe China is a market economy. As long as the
Chinese have massive overcapacity they will continue to dump. State-
owned enterprises are not required to make a profit because state owned
banks continue to prop them up. This sort of behavior is part of the
proof that China is not a market economy.
Question 3. Export sales account for one day out of every week's
worth of American milk production, making them particularly important
to Wisconsin. Although our exports to many markets have been growing,
Canada has recently implemented several policies to restrict American
access to the Canadian dairy market. Wisconsin ultrafiltered milk
exports have already dropped as a result of the Ontario Class 6 program
instituted last fall. Next month, a National Ingredients Strategy
policy in Canada will further displace U.S. dairy exports and damage
global milk powder markets. How will you tackle this immediate threat
to U.S. dairy exports and U.S. jobs with one of our top trading
partners along our northern border? Beyond trade with Canada, will you
prioritize securing and expanding export markets for U.S. dairy
products?
Answer. Milk would be a logical part of any negotiation of a new
trade agreement with Canada.
Question 4. For the past several years, the European Union has been
working to misuse geographical indications in order to erect roadblocks
to products from Wisconsin's highly competitive and high-quality cheese
makers in many foreign markets. How do you envision working with USTR,
USDA and USPTO to combat these European efforts to harm our ability to
tap into global markets and erect non-tariff trade barriers to hurt our
food exports?
Answer. I oppose all such non-tariff trade barriers.
Question 5. NOAA research and data gathering activities provide
critical information, ranging from short to long-term forecasting, data
on Great Lakes ice cover, and data that strengthen our understanding of
climate patterns. This information is important to Great Lakes coastal
communities, farmers, and the Great Lakes shipping industries, as it
informs planning and how communities and industries position themselves
over time. Under your leadership, would NOAA continue to prioritize
research on long-term climate patterns and work to prioritize
advancements in timely and accurate weather forecasting? Will you
commit that scientists in climate related fields would be unfettered by
political influence to conduct their research?
Answer. Scientific factual data should be the sole province of
scientists.
Question 6. Coastal communities and regions face unique challenges
in revitalizing and improving their resiliency. Would you prioritize
resources for coastal communities and efforts to improve resilience
against larger and more powerful weather events?
Answer. If confirmed, I look forward to being fully briefed on
NOAA's efforts with respect to improving resilience in coastal
communities. As a resident of a coastal community, I certainly
appreciate the impact that weather events can have and in general
support cost effective efforts to minimize those impacts.
Question 7. As the leader of NOAA, you would oversee a substantial
research endeavor, which provides basic and applied research to inform
nearly every aspect of our economy. What are your views on the Federal
role in investing in basic and applied climate, weather, and coastal
research?
Answer. There clearly is a role for Federal funding, especially of
basic research.
Question 8. America's infrastructure is crumbling, threatening to
leave U.S. companies and workers behind many of our competitors. The
President-Elect has talked about a big program, which is critical to
economic growth and restoring U.S. competitiveness. However, most
infrastructure experts believe that tax credits are not the answer.
After all, these are public projects--and, while there may be revenue
associated with some projects, like toll roads--many projects have
lengthy useful lives making it unrealistic to charge users the fees
needed to pay private investors back in a timely way. As an example of
how this could go awry, we shouldn't be replacing a water system in
Flint through a tax credit mechanism, knowing that homeowners will
inevitably have to shoulder the costs. So, how big a program is the
President thinking about? How much will he ask Congress to allocate in
direct spending? Will he ensure that every project is covered by strong
domestic procurement requirements?
Answer. I believe we should harness every conceivable source of
infrastructure funding including those projects for which sound public
policy supports Federal funding. Until we know more about which
projects are to be involved, it is impossible to allocate amounts. The
President has expressed support for Buy America programs.
Question 9. You have advocated for self-initiating trade cases
which, for my constituents, would make a huge difference. This is
especially true for small-and mid-sized companies that do not have the
resources to navigate the complex and lengthy process of obtaining
relieve from unfair trade. Wisconsin companies have had to suffer
enormous injury and, often, significant monetary costs simply to bring
cases. How do you intend to move forward? What are your priorities?
Answer. We need to pick a couple of different early cases of the
scale needed to send a real message.
Question 10. The rules of origin for autos are a critical part of
our trade agreements. TPP was a failure in allowing the vast majority
of a product to consist of Chinese components but be eligible for a
``Made In America'' sticker for the purposes of the preferences in the
TPP. What percentage of a product should be made in North America--or,
more importantly, the U.S.--as you look to renegotiate NAFTA?
Answer. I share the President's objective of ensuring our trade
agreements result in more manufacturing and jobs here in the United
States. Achieving that objective will be an important goal in any new
trade agreement. It would be premature to commit to a specific
percentage, though certainly the existing NAFTA threshold represents
the high end of any percentage that might be agreed to in future
discussions with Mexico or Canada.
______
Response to Written Questions Submitted by Hon. Tammy Duckworth to
Wilbur L. Ross, Jr.
Question 1. The Bureau of Industry & Security has been the leading
agency developing export regulations on business with Cuba. Significant
progress has been made with U.S. businesses having more opportunities
exporting to Cuba. For example, over the past 15 years nearly $5
billion worth of U.S. agricultural products were exported to Cuba and
the U.S. held the largest market share of Cuba's agricultural imports
for nine of the last 11 years. Illinois accounts for 20 percent of
American corn and soybean exports and trade with Cuba could potentially
benefit Illinois farmers to the tune of $120 million per year. How will
you work to ensure that trade with Cuba continues to grow and open
opportunities for U.S. Businesses, including farmers in Illinois, to
tap into that market?
Answer. The basic decisions on Cuba will be made by the White House
and the State Department. Within those constraints I favor anything
that stimulates ease.
Question 2. How will you work to ensure that the 2020 U.S. Census
reaches all the diverse populations and what is your commitment to this
important 2020 U.S. Census?
Answer. I am keenly aware of the complexity of the process
especially with the introduction of hand-held devices and will
carefully monitor the training and roll out.
Question 3. With a greater need to encourage more businesses into
advanced manufacturing, how will you continue to support the advanced
manufacturing initiatives through the Economic Development Agency
(EDA), while also considering how to develop a robust supply chain
infrastructure that provides opportunity for entry to minority
entrepreneurs?
Answer. Both are important objectives, and I do not believe they
are mutually inconsistent.
Question 4. Across the nation, Free Trade Zones (FTZs) are engaged
in building our economy and promoting American manufacturing and
employment. In Illinois, seven active FTZs employed approximately
21,000 workers. In 2015, Illinois ranked ninth among all states in
merchandise received; and fourteenth in exports from FTZs.
How would the Trump Administration take advantage of the unique
potential of U.S. Foreign-Trade Zones to promote U.S. operations, jobs,
and exports, and grow the U.S. economy?
Will the Administration be willing to consider ways to make the
U.S. Foreign-Trade Zone Program even more effective in further
eliminating trade disparities with foreign countries?
Answer. My steel company used the Foreign Trade Zone Program
effectively. If confirmed I look forward to working with the Department
and Congress to maximize its effectiveness. We need better
communication of its usefulness throughout the business community.
Question 5. I appreciated your commitment during the hearing that
if confirmed, you will demonstrate leadership in prioritizing effective
enforcement of trade laws that is proactive, timely and robust. Such an
initiative is incredibly important to Illinois workers and employees
throughout the country. Will you commit to consulting with my office on
this effort and to providing me with periodic updates on the status of
your progress defending American industry against violations of trade
agreements?
Answer. Yes.
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