President's Nominee to be the Ambassador of the United States of America to Argentina

Mr. Chairman, Senator Biden, and Members of the Committee:

I am deeply honored to be here today, as the President's nominee to be the Ambassador of the United States of America to Argentina. It was my privilege to appear before this Committee six years ago as the then Assistant Secretary- designate for Economic and Business Affairs. In my capacity as Assistant Secretary for Economic and Business Affairs, I have very much enjoyed consulting and working with the Senate on a wide range of issues, including in nine appearances before several different committees.

I would like to express my gratitude to the Committee and to the Senate for their confirmation of my nomination as Assistant Secretary. I have been privileged to work on issues important to the United States in every part of the globe. It has been an honor for me to play a key role in the U.S. response to the challenges of rebuilding countries afflicted by natural disaster and by conflict, and in helping to rally the international donor response to those in need. I am very grateful for the opportunity to have had a leadership role in our efforts to staunch the financing of terrorism after 9/11. I am very thankful to have contributed to our efforts to open markets, promote trade and investment, advocate for U.S. business, help overcome financial crises, encourage economic reform, support effective development, reduce poverty, and much more. I very much appreciate that my confirmation by the Senate made it possible for me to serve my country in these areas.

I also want to thank the President and Secretary Rice for the confidence and trust they have shown in me during my tenure as Assistant Secretary for Economic and Business Affairs and for their continued support, as demonstrated by this present nomination.

My wife Pamela is with me here today. She has been my closest partner for almost thirty years. I am grateful that several close friends are here today to view this example of our constitutional process.

Over the course of my 31 years in the Foreign Service, I have worked to advance a broad range of U.S. interests worldwide. I have had the great privilege of working for ten Secretaries of State and closely with six of them. During my years as Assistant Secretary, I have had the privilege of helping resolve macroeconomic crises in the Southern Cone region, promote economic reform, governance and development in Latin America, address bilateral trade and investment disputes as well as trade and investment liberalization agreements in the region, and encourage energy security in our hemisphere. If confirmed, I will put all of my experience, intellect and energy into advancing our country's interests in Argentina, in the broader region and in the global arena. I know I would have the great benefit of working with outstanding Civil and Foreign Service professionals, as well as excellent Foreign Service Nationals, at our mission in Argentina to achieve the United States’ objectives.

Argentina and the United States share a belief in democratic values and an aspiration for regional stability, hemispheric prosperity, and global security.

Tragically, both the United States in 2001 and Argentina in 1992 and 1994 have been victims of international terrorism. These cowardly acts strengthened U.S. and Argentine resolve to work cooperatively to fight international terrorism. For example, our two countries enjoy excellent counterterrorism cooperation through information sharing on the Tri-Border Area and through the Organization of American States' counterterrorism committee, which Argentina has done much to invigorate. If confirmed as Ambassador, I will draw on my experience in the fight against terrorism and work closely with the Government of Argentina to strengthen our existing cooperation.

Argentina is the only "major non-NATO ally" in South America. It is a regional leader in international peacekeeping, with 575 troops and police on the ground to support Haiti's democratic transition, and another 294 peacekeepers in Cyprus. In the aftermath of Hurricane Katrina, Argentina dispatched an elite White Helmets team of bilingual mental health professionals to provide counseling to the large Hispanic community in New Orleans, for which we are grateful.

In the area of nuclear nonproliferation, Argentina has played an active role in many nonproliferation regimes, including the Nuclear Suppliers' Group and most recently, as Chair of the Missile Technology Control Regime (MTCR). It has voted with the United States at the IAEA to find Iran in noncompliance with IAEA safeguards, and voted again to report that noncompliance to the UNSC.

With over 500 U.S. companies investing in Argentina, the United States is one of its top three investors. As you know, at the start of this century Argentina and its people suffered a terrible economic crisis. During that period, I was on the phone almost daily with our embassy in Buenos Aires as the United States government worked to forge a supportive international response and to help U.S. firms caught in the crisis. Happily, since 2002, Argentina's economy has grown 9% per year, and its economy has exceeded pre-crisis levels. Argentina's robust economic recovery is the result of sound fiscal management, market reforms in the 1990s, and a favorable external environment characterized by high commodity prices and low interest rates. In order to consolidate the benefits of economic growth and deal with the very real issue of poverty, it is important for Argentina to continue to create a more welcoming climate for investment, whether it be domestic or international. If confirmed, I will do all I can to help create an environment in which U.S. investment is welcomed and secure, and in which Argentina can reap greater benefits from international investment to sustain growth, create jobs and reduce poverty. I pledge to make support for commerce with Argentina a top priority, and I will vigorously advocate to ensure a level playing field for them. I will also stress the importance of Argentina respecting its obligations to honor any arbitral awards made under the U.S.-Argentina Bilateral Investment Treaty. I will work closely with my colleagues at the State and Commerce Departments as well as with my many contacts in the business community to pursue these objectives.

The United States and Argentina have a dynamic trade relationship, with two-way annual trade exceeding $8.3 billion in 2005. However, that total represents less than 1% of U.S. two-way trade with the hemisphere. Clearly, there is room for expansion. The U.S. and Argentina have a strong common interest in a successful conclusion of the Doha Round, and as part of the Cairns Group and the G-20, Argentina works closely with us to support real global trade liberalization. The United States remains committed to pursuing hemispheric economic integration through a Free Trade Agreement of the Americas. At the November 2005 Summit of the Americas, Argentina, along with its three Mercosur partners, reaffirmed its commitment to hemispheric integration but emphasized their belief that FTAA negotiations should resume only after there has been progress in the Doha round. Despite our differences in timing, I will, if confirmed, work diligently to strengthen our bilateral economic relationship and enhance our cooperation in regional and world economic fora so that we can one day make hemispheric economic integration a reality and enjoy the fruits of a newly deepened global trade regime.
My experience working on trade issues with Europe, as well as supporting USTR in our WTO, FTA and bilateral trade negotiations elsewhere, will help in this effort.

As with any economic partner with which we have such an extensive and diversified economic relationship, problems occur and frictions exist. Argentina has recovered from its 2001-02 economic collapse; however, nearly one in three Argentines still lives in poverty. There is a widespread perception among the Argentine public that the IMF and the United States are to blame for their country's woes. This is a great misperception. Vigorous public diplomacy is needed to combat such misperceptions, and good cooperation between our two countries can help build the basis for further growth and poverty reduction.

We have worked and will continue to work with our neighbors to ensure that democracy and market-oriented economic policies deliver benefits to all. We realize that poverty extracts an intolerable human toll and threatens stability and democratic institutions. It undermines our efforts to fight corruption, crime, terrorism and drugs. We understand that poverty reduction and sustained economic growth are not just domestic priorities but also shared foreign policy priorities. We also realize that there is no single recipe for success. The best performers have all pursued policies that open markets, create competition, reduce barriers to creating a business, invest in health and education, link the poor to markets through infrastructure, strengthen land and property rights, spread access to capital and promote good governance. I believe we can work with the government of Argentina to promote the kind of economic prosperity that will help Argentina, the broader region, and the United States. I look forward, with your support, to drawing on my relations with the Treasury Department as well as the World Bank, the Interamerican Development Bank and the International Monetary Fund to this end.

Secretary Rice outlined our approach last week, when talking more broadly about U.S. cooperation with countries in this hemisphere. She said: "We charge no ideological price for our partnership. We will work with all governments from the left, from the right, as long as they are committed in principle and practice to the core conditions of democracy, to govern justly, to advance economic freedom and to invest in their people. This is not a matter of big government or small government. It is a matter of good government. The goal of our policy is inclusion; the inclusion of every citizen of the Americas, not just elites, in the opportunities and the benefits of democracy." If confirmed as Ambassador, I will ensure that all parts of the U.S. Embassy give high priority to building and deepening this kind of partnership.

We will also work vigorously to counter critical views of the United States in Argentina. Mission programs in Argentina have given priority to the Secretary's call for transformational diplomacy, including efforts to establish a Virtual Presence Post in Patagonia. We will make sure that the Virtual Presence Post and other public diplomacy efforts make a concerted effort to highlight the U.S. conviction in the fundamental dignity and rights of the individual in a democratic, market-based society.

If confirmed as Ambassador, I pledge to give the highest priority to ensuring the safety and security of the 171 official Americans, their families, the 34,000 non-official U.S. residents in Argentina, and the 251,000 tourists who visit Argentina annually.

The opportunities to build on an already excellent relationship with our Argentine friends are great. I look forward to a productive dialogue with President Kirchner, Foreign Minister Taiana, and other Argentine government officials as we seek to advance bilateral relations. Similarly, I eagerly anticipate opportunities to work with the private sector, civil society, religious leaders, and others who will help identify additional areas of cooperation to further strengthen the ties between our two countries.

Mr. Chairman, if confirmed, I look forward to working with you, your distinguished colleagues, and your staffs to advance our agenda with Argentina.