HJ0037enr 100TH GENERAL ASSEMBLY

HJ0037 Enrolled LRB100 11667 MST 22553 r

HOUSE JOINT RESOLUTION 37

WHEREAS, According to the United States Census Bureau, Illinois is currently the fifth most populous state in the country, with approximately 12,800,000 residents; and

WHEREAS, Illinois is the largest exporting state in the Midwest, and the fifth largest exporting state in the United States; and

WHEREAS, Since 2009, Illinois exports have increased by $26.6 billion, or 64%, outperforming the national average of 53.5%; and

WHEREAS, Direct Illinois exports accounted for nearly 10% of the Gross State Product (GSP); and

WHEREAS, The role of Illinois in the global marketplace is currently in flux as a new United States Trade Representative takes office and the new presidential administration has created a White House National Trade Council; and

WHEREAS, In recent years, the Illinois General Assembly has taken action on issues involving international trade which, if enacted, would almost certainly trigger claims by the World Trade Organization (WTO) against the United States, and possibly the imposition of countervailing duties or retaliatory tariffs by U.S. global trading partners; and

WHEREAS, The United States Census Bureau generates international trade statistics relative to the importation and exportation of products and goods in and to all 50 states and some territories; and

WHEREAS, Comparative advantage is a concept in international trade law and economics which provides that countries should be encouraged to produce what they are best at producing and export such products and goods, and import those products and goods from a trading partner who is the best at producing that particular product or good; and

WHEREAS, The most recent trade statistics show that the trade preferences provided to some non-market economies affects the theory of comparative advantage and possibly weakens the role that Illinois plays in the global marketplace; and

WHEREAS, According to the United Nations, the World Bank, and the International Monetary Fund, the United States is the world's largest economy and China is the second largest economy in the world based upon their respective GDPs; and

WHEREAS, China's accession to the WTO was complete as of December 11, 2001; and

WHEREAS, China's accession to the WTO was unique in that China was one of the 23 original contracting parties to the General Agreement on Tariffs and Trade (GATT) in 1948, but withdrew after the Chinese Revolution in 1949, which pitted the ideologies of Mao Zedong and Chiang Kai- Shek; and

WHEREAS, Under WTO agreements, there are two types of non-discrimination of interest: the Most Favored Nation (MFN) principle, and the National Treatment (NT) principle; under the MFN principle, a WTO member may not discriminate between its trading partners - goods and services and service providers are to be accorded MFN, i.e. equal treatment; at the same time, a WTO member must provide NT - it may not discriminate on its internal market between its own and foreign products, services, and nationals; and

WHEREAS, China, like all other WTO members, has agreed to abide by all of the WTO agreements, including those provisions requiring application of MFN and National Treatment; and

WHEREAS, In its Protocol of Accession, China agreed to undertake additional actions in order to ensure the smooth phasing in of these non-discrimination principles; and

WHEREAS, The WTO system also promotes undistorted trade through the establishment of disciplines on subsidies and dumping, allowing WTO members to respond to unfair trade through the imposition of countervailing or anti-dumping duties; in addition, WTO members are empowered to impose temporary safeguard measures, under strict rules, when faced with a sudden surge in imports causing serious injury to a domestic industry; and

WHEREAS, In other areas, China has committed to abide by all WTO disciplines relating to subsidies and countervailing measures, anti-dumping, and safeguards; and

WHEREAS, By joining the WTO, China has committed itself to abide by international treaty rules and the rule of law in the conduct of trade; and

WHEREAS, Illinois has eight foreign trades zones where foreign and domestic merchandise is considered international trade and not subject to United States customs duties: Chicago, Rockford, Quad Cities, Peoria, Decatur, Granite City, Lawrenceville, and Savanna; and

WHEREAS, Illinois maintains 10 foreign trade offices: Mexico City, Mexico; Toronto, Canada; Brussels, Belgium; Pretoria, South Africa; Jerusalem, Israel; Sao Paulo, Brazil; Tokyo, Japan; New Delhi, India; and Hong Kong and Shanghai, China; and

WHEREAS, In 1974, Illinois became the first state to open a trade office in China when it opened an office in Hong Kong; Illinois added an office in Shanghai in 2000; both trade offices are dedicated to promoting Illinois-China business relations; and

WHEREAS, Illinois ranks fifth among the 50 states for exports to China; Illinois exports to China totaled over $4.71 billion in 2014, a 90.8% increase since 2009; Illinois ranks third among the 50 states in imports from China, totaling $29.5 billion in 2014; and

WHEREAS, Mexico is a WTO member subject to MFN and NT principles; Illinois exports to Mexico totaled over $7.9 billion in 2014, a 123.0% increase since 2009; Illinois imports from Mexico totaled $13.3 billion in 2014, a 116.8% increase since 2009; Illinois ranks fourth among the 50 states in imports from Mexico and is Mexico's second largest export partner; and

WHEREAS, Russia is a WTO member subject to MFN and NT principles; Illinois ranks seventh among the 50 states for exports to Russia; Illinois exports to Russia totaled over $448.1 million in 2014, a 79.5% increase since 2009; Illinois ranks seventh among the 50 states in imports from Russia, totaling $790.2 million in 2014; therefore, be it

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE ONE HUNDREDTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, THE SENATE CONCURRING HEREIN, that the Trade Policy Task Force is created within the Illinois Department of Commerce and Economic Opportunity - Office of Trade and Investment; and be it further

RESOLVED, That the Trade Policy Task Force is charged with the following duties: (1) analyze important issues relative to the growth of international trade from and to Illinois; (2) make recommendations to Congress, the United States Trade Representative, and the White House National Trade Council regarding trade policies that best serve Illinois; and (3) promote the exportation of goods and services from Illinois and the importation of goods and services into Illinois; and be it further

RESOLVED, That the Trade Policy Task Force shall consist of the following members:

(1) two appointed by the Speaker of the Illinois House of Representatives - one of which is to be the Chair of the International Trade and Commerce Committee;

(2) two appointed by the President of the Illinois Senate;

(3) two appointed by the Minority Leader of the Illinois Senate;

(4) two appointed by the Minority Leader of the Illinois House of Representatives - one of which is to be the Minority Spokesman of the International Trade and Commerce Committee;

(5) a representative of a statewide association representing community businesses, appointed by the Minority Leader of the Illinois House of Representatives;

(6) a representative of a statewide association representing manufacturers, appointed by the Minority Leader of the Illinois Senate;

(7) four representatives of a statewide association representing unions, two appointed by the Speaker of the Illinois House of Representatives and two appointed by the President of the Illinois Senate;

(8) a representative of a statewide association representing agriculture, appointed by the Speaker of the Illinois House of Representatives;

(9) a representative of a statewide association representing the chemical industry, appointed by the Minority Leader of the Illinois Senate;

(10) a representative of a statewide association representing the coal industry, appointed by the Minority Leader of the Illinois House of Representatives;

(11) a representative of a statewide association representing international trade, appointed by the President of the Illinois Senate;

(12) three appointed by the Governor of Illinois;

(13) one appointed by the Mayor of Chicago;

(14) one appointed by the Mayor of Rockford;

(15) one appointed by the Mayor of Peoria;

(16) one appointed by the Mayor of Granite City;

(17) one appointed by the Mayor of Lawrenceville; and

(18) one appointed by the Mayor of Savanna; and be it further

RESOLVED, That the Illinois Department of Commerce and Economic Opportunity - Office of Trade and Investment shall provide administrative support for the Trade Policy Task Force and shall reimburse for their reasonable and prudent expenses; and be it further

RESOLVED, That the Trade Policy Task Force shall provide a final report by December 31, 2018.