The United States has appealed forstronger powers for the General Agreement on Tariffs and Trade
(GATT) to enforce world trade rules.
    The call by U.S. Deputy Trade Representative Michael Smith
at a special committee meeting into the future of GATT follows
a series of bilateral trade rows which have clouded efforts by
the 93-nation body to promote fair trade.
    Today's meeting was part of the Uruguay trade round
launched by ministers last September. The round, which covers
13 areas of trade in agriculture, manufactured goods and
services will take four years to negotiate.
    Smith called for boosting GATT's links with financial
institutions such as the International Monetary Fund and World
Bank. He also urged greater involvement of trade ministers to
ensure the success of the Uruguay Round.
    "The GATT as an institution needs to be strengthened to
assure that the GATT plays its proper role in management of the
world trading system and the global economy," Smith said.
    "Rules can and will be ignored if the institution is weak,
or perceived as unable to adapt to the changing world economy."
    He also also urged that member states be accountable to
each other for their trade policies.
    Smith, who flies to Brussels today for talks with European
Community (EC) officials, told Reuters the committee wanted to
stress GATT's importance and did not discuss specifics.
    "We are interested in more periodic ministerial
involvement...Whether in formal or informal meetings," he said.
    GATT's ruling council is due to hear a complaint from the
12-nation EC on April 15 about the U.S.-Japanese accord on
semiconductors. The EC charges the accord breached GATT trade
rules by allowing Tokyo to set minimum prices for Japanese
chips sold in third countries and is requesting a GATT dispute
panel be set up to review the agreement.
    President Reagan, who strongly supported the Uruguay trade
round to promote freer trade, has said Washington will impose
tariffs against Japanese electronic goods.
    He said Tokyo had not shown willingness to open its markets
to U.S. Exports.
 REUTER
