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.
    The 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.
    Generally, the bill's provisions toughen U.S. enforcement
of trade laws.
    The trade bill forces the administration to act rapidly on
complaints of unfair trade practices, such as dumping products
in the United States at prices below cost of production. It
also forces the administration to act rapidly when an industry
complains that a surge in imports threatens its existence.
    In writing the bill, the subcommittee rejected calls for
trade relief for specific industries such as textiles.
    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.
    But 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.
    Bill Frenzel, R-MI., 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 lawmakers to work
toward a bill Reagan and Republicans would ultimately endorse.
    The goal of trade legislation was "to make our trade policy
stronger without violating our international trade agreements,"
he said.
    In a key concession made at the urging of Ways and Means
Committee chairman Dan Rostenkowski, D-IL., the trade
subcommittee backed off a requirement that would have forced
Reagan to impose automatically quotas or tariffs on imports
from countries that engage in unfair trade practices.
    It also agreed the president may waive any retaliation if
it would hurt the U.S. economy.
    Rostenkowski insisted the more moderate approach was
necessary if the House wanted to pass a bill Reagan would sign
into law.
    Reagan last year blocked Senate consideration of a tough
House trade bill he branded as protectionist and this year he
only reluctantly agreed to support a trade bill when he saw
Democratic leaders were determined to pass such legislation.
    White House spokesman Marlin Fitzwater told reporters late
last week that the administration still did not like some of
the bill's 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, D-MO., to force countries like Japan, South
Korea and Taiwan to cut their trade surpluses with the U.S.
    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.
    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 when he said any trade bill Reagan would sign
would not be worth passage in Congress.
    But Rostenkowski set the tone of the trade debate by
saying, "I'm not trying to write legislation to please Lane
Kirkland. I'm trying to write legislation that will be signed
by the president."
    Rep. Ed Jenkins (D-GA.) 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 of Texas, one of the most
influential proponents of aid for specific industries beset by
low-priced foreign competition, last week 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.
 Reuter
