President’s Nomine Earl Anthony Wayne to be Ambassador to Argentina

ASSISTANT SECRETARY WAYNE: Thank you very much, Mr. Chairman. I’d like to introduce my wife, Pamela for – who’ve – we’ve been closest partners for nearly 30 years now.

SENATOR NORM COLEMAN: Thrilled to have you with us today.

ASSISTANT SECRETARY WAYNE: And I’m happy to have several other close friends here including a member of my Sunday school classes here to observe how our constitutional process works.

SEN. COLEMAN: Very good. And I’m happy to have you, Mr. Wayne.

ASSISTANT SECRETARY WAYNE: Thank you.

SEN. COLEMAN: Why don’t we begin with the testimony and just kind of proceed again. Mr. Wayne?

ASSISTANT SECRETARY WAYNE: Mr. Chairman, it’s a great and deep honor to be here as the president’s nominee to be ambassador of the United States for America to Argentina. I’d first like to express my gratitude to the committee and the senate for the confirmation that I received in the year 2000 to be assistant secretary for economic and business affairs because that has allowed me to work in support of the United States interest on issues on every part of the globe. I want to thank the president and Secretary Rice for the confidence they’ve shown in me as assistant secretary and their support is demonstrated by this nomination.

Over my 31 years in the Foreign Service, I’ve worked to advance a board range of U.S. interest worldwide and I’ve had the great privilege of working for 10 secretaries of state and closely with six of them. If confirmed, I will put all of my experience, intellect and energy into advancing our country’s interest in Argentina in the broader region and in the global arena. Argentina and the United States share a belief in democratic values. They share an inspiration for regional stability, for hemispheric prosperity and global security. Tragically, both the United States and Argentina have been the victims of international terrorism, but those cowardly acts strengthened U.S. and Argentine resolve to work cooperatively to fight international terrorism.

Argentina is the only major, non-NATO ally in South America. It’s also a regional leader in international peacekeeping. Argentina has 575 troops and police on the ground to support Haiti’s democratic transition. In the aftermath of Hurricane Katrina, Argentina also dispatched an elite team of bilingual mental health professionals to provide counseling to the Hispanic communities in New Orleans for which we’re very grateful. In the area of nuclear non-proliferation, Argentina’s played an active role including in the nuclear suppliers group and recently as chair of the missile technology control regime. It has voted with the United States at the international atomic energy agency to find Iran in non-compliance with IAEA safeguards and voted again to report that non-compliance to the UN’s Security Council.

With over 500 U.S. companies invested in Argentina, the United States is one of Argentina’s top three investors. As you know, at the start of this century Argentina and its people suffered a terrible economic crisis. Since 2002, Argentina’s economy has grown 9 percent per year and its economy has exceeded pre-crisis levels. In order to consolidate and continue the benefits of economic growth and deal with the very real issue of poverty, it’s 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 with which it can sustain growth, create jobs and further reduce poverty. I pledge to make support for U.S. commerce with Argentina top priority. United States and Argentina have a dynamic trade relationship with two-way annual trade exceeding $8.3 billion last year. However, there’s room for expansion, and if confirmed I’ll work diligently to strengthen our bilateral economic relationship and enhance our cooperation in regional and world economic fora.

As with any economic partner with which we have such an extensive and diversified economic relationship, problems occur and friction exist. Argentina has recovered from its 2001/2002 economic collapse. However, nearly one in three Argentines still lives in poverty. There’s a widespread perception among the Argentine, the IMF and the United States are to blame for their country’s woes. This is a 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.

The United States has worked and will continue to work with our neighbors to ensure that democracy and market-oriented policies deliver benefits to all. We realize that poverty extracts an intolerable human toll and threatens stability in democratic institutions. 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’d like to share a quote from Secretary Rice in a speech that she gave last week talking about the broader Latin America region. 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’re 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’s a matter of good government. The goal of our policy is inclusion; the inclusion of every citizen of the Americas, not just the elites, in the opportunities and the benefits of democracy."

If confirmed as ambassador, I will ensure that U.S. embassy gives highest priority to building and deepening this kind of partnership. Mr. Chairman, if confirmed, I look forward to working with you, with your distinguished colleagues, and your staffs to advance our agenda with Argentina.

Thank you.

SEN. COLEMAN: Thank you very much, Mr. Wayne.

Mr. Wayne, let me turn to Argentina for a second. Now, in your opening statement you talked about the importance of doing those things that create an environment for investment that is secure for U.S. investors – human investment. Some challenges in Argentina, IPR – I believe my conversations with Monsanto, for instance, they’ve stopped doing business because they don’t feel that they can protect their – protection for genetically modified soy beans. There are also copyright, piracy, software, et cetera, et cetera. Can you talk a little bit about the – and let me back it up – because you’re – and I was struck by your comment – the recognition that a third – one-third of Argentineans still live in poverty and that there’s a perception that it’s the United States and the IMF has somehow, you know, the – to blame for some of the poor economic conditions.

On the other hand, you – it’s hard to get investment if you don’t have IPR. It’s hard to get investment if you can’t do free trade agreements and then kind of generate more investment and more trade. So I’d like to explore those issues a little bit. Can you talk a little bit first in the narrow sense just about IPR and some of your reflections on that and what can be done to improve that – the climate on that issue?

ASSISTANT SECRETARY WAYNE: Senator, you’re exactly right that we have been in dialogue with the government of Argentina for several years working on various aspects of their intellectual property rights regime and trying to encourage improvements to meet WTO standards. We – my colleagues at USTR worked very closely with their colleagues in Argentina several years ago and came into an agreement on improving part of that intellectual property right regime, which they have put in place, but they are still working very hard and I would work very hard in support of them to increase those protections because as you say innovation is the key to continued economic growth and it’s in the mutual interest of the United States and Argentina that innovation be protected.

And so there are still some differences of opinion that we have over the data protection under IPR. In the case of Monsanto, I have worked with Monsanto over several years and my colleague now – my colleagues now serving in Buenos Aires have worked with them and with the government of Argentina to try to encourage a solution to their problems there and I will continue doing that. As a major agricultural exporting country, I think it is very much in the interest of Argentina to be on the cutting edge of innovation in agriculture and protecting those innovations. So we will work to find a meeting of the minds. I’m very hopeful that we can make progress.

On the broader issue, there is – it’s clear that we have public diplomacy work to do in Argentina. Consistent polls in Argentina have showed a very low favorable rating of the Unites States around 30 percent, but in a welcome sense about 50 percent of the people polled say, "Yes. We think it’s in Argentina’s interest to have a good relationship with the United States." So I think part of the challenge for all of us who represent the U.S. government and part of my challenge will be to chip away at that negative image. To have everybody in the embassy out interacting with the Argentine public and not just elites, but out in with youth, out in the provinces, not just in BA to explain what America is about. What our – what is behind our policies? To explain what we are doing to help alleviate poverty and encourage development in the hemisphere.

As you know, Mr. Senator we’ve almost doubled our development assistance to Latin America over the past five years and that doesn’t include the Millennium Challenge Corporation monies that’s going ahead and that doesn’t include the debt relief that we’ve worked hard to provide both in the G8 process through the HIPC program before that and now the work we’re doing in the Inter-American Development Bank. We’ve very much committed to the development, to the continued prosperity of Latin America, the creation of jobs. We know the suffering that comes about when you’re living in poverty. And so I’m hoping that, as I said in my statement, I’m going to work very hard that we can build a very good partnership with the government of Argentina, with other organizations in Argentina to promote that kind of sustainable growth.

SEN. COLEMAN: I wish you great success in that. I really think that we’re uniquely poised right now. We have Ambassador Danilovich, who’s head of Millennium Challenge Corporation. He knows the region. He’s been there. He’s been in Costa Rica. He’s been in Brazil. Now, we have Ambassador Moreno – any idea if he knows – deep understanding about what some of the challenges. I think Tom Shannon – (unintelligible). I think we have an incredible team that’s in place to do this so I wish you great success.

FTAA – can you give me your sense on the majority of folks in the region, I think, support it, but obviously not everybody and as a result I might be interested in your, you know, sense of – are there prospects for an FTAA down the road?

ASSISTANT SECRETARY WAYNE: At the summit – last summit of the Americas meeting in Argentina, all the countries but one supported the FTAA in principle. The Mercosur countries said, "We think it would be better to pursue this after we’ve seen where we get in the WTO negotiations." But everybody except Venezuela supported the project in and of itself. I think coming out of that, it was agreed that we would look – there will be quiet sound-ins about the prospects of where we go next and when we go next, but we remain committed to the idea of this project and to pursuing it as the situation allows. Right now, of course, we’re working quite hard to see if we can get the WTO process going forward and as you know, Senator, we’ve been working hard on free trade agreements in other parts of the hemisphere.

SEN. COLEMAN: Let me raise one issue for all of you. You mentioned Venezuela. I just kind of want to throw it out there. Obviously, there is a concern with the Chavez influence in Bolivia, in Nicaragua, in Peru right now and I’m just – I think any of the territorial disputes at times with Venezuela that folks will be dealing with. As I’d be interested in – if you – your reflections on this Chavez influence whether you’ve – I want to ask whether you see it problematic, but just can you give an assessment to the level of influence in each of these countries and some of the challenges that that presents. I want to start with you, Mr. Wayne and then we’ll go across.

ASSISTANT SECRETARY WAYNE: Well, there has been an uptick in economic relations between Venezuela and Argentina. Venezuela bought about $2.8 billion worth of Argentinean debt. Trade between the two countries has increased over the past year. There is a process underway where Argentina – I mean, where Venezuela has asked to enter Mercosur. That is in process, however, it is not yet completed. At the same time as we’ve noted, Argentina and many of its neighbors remain firmly committed to the principles of democracy and democratic governance and have continued to speak out in support of democratic processes all across the hemisphere and that is the basis – a very strong basis, I think, for working together on elements of regional stability, on elements of promoting development and growth as we go forward.

SEN. COLEMAN: Let me raise one final issue – a very personal concern to me and I think you can be helpful to U.S. interest in this regard and that’s the United Nations. The – my – I also chair the Permanent Subcommittee. We did a very extensive investigation of oil-for-food. Chairman Volcker did an investigation and my hope of that coming out without getting into the oil-for-food investigation that result of seeing the level of corruption and mismanagement would result in a strong impetus to reform. And I think reform is under way. The secretary general himself had offered some reforms. I thought were at least the first step to the restructuring of the Human Rights Council that was going to take place – did take place. A number of concerns was raised by the Human Rights Council, I think just – I think Cuba is already at least in the first round of voting is not going to serve on the Human Rights Council, which I think is absurd.

But, you know, stepping back to just the broader issue of reform, the Fifth Committee just recently rejected the secretary general’s own modest proposals. The G77 led the way against that, which is a huge step back and I think will have some impact in this Congress. Now, all of the countries in question here voted with the G77 against reform and it’s my sense that sometimes things happen in Washington that folks in the capital of these countries are not perhaps fully aware of the measure of concern that – the consequences of those kinds of actions. So I will say it in the form of a question, but really what I’m asking is that to be aware of that because we want it. We have a $3.4 billion stake in the United Nations, not just 22 percent of operating budgets but 6 percent of peacekeeping and a range of other things. And I can tell you my colleagues are really – they are kind of coming to a point where they want to see some change and if not, I think there will be consequences.

So my – here’s my question is what steps could you take, if confirmed, to promote cooperation between the countries you each will be working in the U.S. to achieve meaningful reform? I think there’s a role back in the capitals in BA, in Georgetown, and other places to say, "Hey, this is an issue." And I – you know, perhaps we need that kind of conversation – just interested in the reflections on that. I’ll start with you, Mr. Wayne and then we’ll work through the panel and that’ll be my last question.

ASSISTANT SECRETARY WAYNE: Senator, you’re exactly on the right on the mark. It’s a very, very important process that has begun and needs to be carried forward. In a sense with Argentina, we’ve been fortunate they’ve been on the Security Council and so we’ve been working closely with them. In fact, on key votes we’ve been voting together about 80 percent of the time. They are also – well, one of the strongest supporters of reforming the Human Rights Council and of the reform that took place. And so I think they’re very open to continuing reform of the UN system and certainly I will work very closely with them, with the foreign minister, with others in the foreign ministry and others who are interested in the government to continue this process.

SEN. COLEMAN: That would be very helpful. Thank you.

I appreciate the commitment – your – all your commitments expressed here today. As indicated in my opening statement, the president does an outstanding job nominating extraordinary qualified individuals to serve in the post which you’ve been recommended. I’m of course supporting these nominations. I’m not sure if any of my colleagues would have questions. I’ll keep the record open till the close of business on Friday, and with that this hearing is adjourned.