U.S. lawmakers are gearing up for ashowdown between protectionists and free traders as a major
trade bill winds its way through committees to a vote by the
full House of Representatives in late April.
    In a move to toughen U.S. enforcement of trade laws, a key
House subcommittee last week approved a toned down version of
legislation to require President Reagan to retaliate against
foreign countries that follow unfair trade practices.
    This bill will be the cornerstone of congressional efforts
to restore competitiveness of American industries and turn
around last year's record 169 billion dlrs trade deficit.
    Several lawmakers have argued the new trade bill made too
many concessions to Reagan and said they intend to back
amendments to "get tough" with countries that violate trade
agreements or keep out U.S. products.
     On the other hand, congressmen known for their allegiance
to free trade, said the bill ties Reagan's hands too much in
trade disputes and they will seek to restore his negotiating
powers.
    Republican Bill Frenzel of Michigan said the subcommittee's
bill was not one "that a free trader like me could endorse in
all respects," but he emphasized there was a consensus among
trade lawmakers to work toward a bill Reagan and Republicans
would ultimately endorse.
    Frenzel said the goal of trade legislation was, "to make our
trade policy stronger without violating our international trade
agreements. You'll find a lot of people who think we have not
done the former enough. You'll find poeple who think we haven't
avoided violating agreements."
    In a key concession made at the urging of the powerful
chairman of the House Ways and Means Committee, the trade
subcommittee backed off a requirement that would have forced
Reagan to automatically impose quotas or tariffs on imports
from countries that engage in unfair trade practices.
    It also agreed he may waive any retaliation if it would
hurt the U.S. economy.
    Ways and Means chairman Dan Rostenkowski, an Illinois
Democrat, insisted the more moderate approach was necessary if
the House wanted to pass a bill Reagan would sign into law.
    Reagan last year had blocked Senate consideration of a
tough House trade bill he branded as protectionist and this
year only reluctantly agreed to support a trade bill when he
saw Democratic leaders were determined to pass a bill.
    As an indication of his success, White House spokesman
Marlin Fitzwater told reporters Friday the administration still
did not like some provisions. But he added, "Generally we feel
very good about the bipartisan consideration of the trade
legislation. I think we are progressing very well."
    The first battle will take place next week when the full
House Ways and Means Committee considers an amendment by Rep.
Richard Gephardt, a Missouri Democrat, to force countries such
as Japan, South Korea and Taiwan to cut their trade surpluses
with the United States.
    The subcommittee limited the Gephardt plan to provide only
that the existence of a large trade surplus with the United
States will trigger an investigation of unfair trade practices,
but would not automatically set off retaliation.
    Rep. Phil Crane, an Illinois Republican and staunch free
trader, said he will try to further weaken the Gephardt plan.
    Organized labor has pressed lawmakers for more relief from
imports where jobs have been lost to foreign competition.
AFL-CIO president Lane Kirkland this year angered the
administration in a statement that any trade bill Reagan would
sign would not be worth passage in Congress.
    But Rostenkowski set the tone of the trade debate in a
statement, "I'm not trying to write legislation to please Lane
Kirkland. I'm trying to write legislation that will be signed
by the president."
    In writing the bill, the subcommittee rejected calls for
trade relief for specific industries such as textiles.
    Rep. Ed Jenkins, a Democrat from Georgia, agreed to hold
off his fight. He intends to push separately a bill to protect
the domestic textile and shoe industry, an aide said. Reagan
vetoed a similar measure last year.
    House Speaker Jim Wright, a Texas Democrat, is one of the
most influential proponents of aid for specific industries
beset by low priced foreign competition.
    Wright Thursday renewed his call for import relief for the
domestic oil industry and announced his support for a Senate
plan to trigger a temporary oil import tariff when imports
reach half of domestic consumption.
    For the most part, the trade bill's provisions toughen U.S.
enforcement of trade laws. The bill forces the administration
to act rapidly on complaints of unfair trade practices such as
dumping products in the United States at prices below the cost
of production.
    It also forces the administration to act rapidly when an
industry complains that a surge in imports threatens its
existence. Congressmen said the change would have required the
U.S. International Trade Commission to impose limits on car
imports in 1981.
 Reuter
