May 2, 1988 EXTENSIONS of REMARKS 9675 EXTENSION of REMARKS OMNIBUS TRADE BILL Minor Salves and Stimuli to the U.S

May 2, 1988 EXTENSIONS OF REMARKS 9675 EXTENSION OF REMARKS OMNIBUS TRADE BILL minor salves and stimuli to the U.S. econo also enormously popular on Capitol Hill. If my, they would stiffen U.S. trade posture a the trade bill is vetoed, President Reagan little-which is why Japan, the Europeans can expect to find another version of the HON. DOUG BEREUTER and such other major trading partners as Toshiba provision on his desk soon. OF NEBRASKA Korea continue officially to object. But the The plant-closings provision requires com IN THE HOUSE OF REPRESENTATIVES stiffening would not be excessive. Though panies to give their workers 60 days' notice Monday, May 2, 1988 the burden on him would be greater, a presi of major layoffs or closings, except under dent would still have the right at almost certain circumstances. The exceptions, how Mr. BEREUTER. Mr. Speaker, I want to every major juncture not to retaliate ever, are so wide that laywers will have no draw the attention of my colleagues to two against an aggressive trading partner if he difficulty helping their clients navigate recent editorials which discuss the trade bill. chose. through them. In any case, the penalties for That's half the story. The other half is violation-back pay for the workers in This first editorial entitled "The Senate that there continues to be a wondrous mis Trade Vote" appeared in today's Washington volved, plus a maximum fine of $500 a day match between this bill and the problem it are trivial. Although it does indeed move Post. While the editorial supports passage of purports to solve-a mismatch also between the government into a new area of labor re the trade bill, it states that "* * * the trade the bill and the inflated rhetoric surround lations, the amendment will make little dif deficit cannot be legislated away." This is a ing it. The trade deficit cannot be legislated ference in the way businesses do business. correct, but rather obvious statement. Unfortu away. The direction of trade is not a matter The special-interest provisions that many nately, some inside and especially outside of conspiracy, but of the relative strengths members of Congress repeatedly attempted Congress have used this strawman argument of the U.S. and foreign economies. At one to engraft upon the trade bill have all but point in its history, this bill could have done disappeared. When The New York Times or to oppose the trade bill. The flaw with the a lot of damage. Now the conflicting claims Post editorial is that it assumes that most dered up a front-page story revealing the as to both the good and the damage it might bill's favors for particular companies or in Members of Congress believe the trade deficit do are vastly overblown. The country could dustries, it could find only one, extending a will disappear with the passage of the trade live very comfortably both with and without patent owned by Warner-Lambert Co. All bill. it. the other "favors" The Times identified in On the contrary, most Members knowledge Nowhere is that truer than with regard to volved tariff reductions-the kind of special able on trade matters know that the trade def the plant-closing provision around which interest provision that helps increase, the debate now revolves. Most companies of icit is not going to disappear overnight. Most rather than diminish, the flow of interna the size that would be affected already give tional trade. There really isn't much to of the conferees involved with the trade bill the notice the bill requires. The require were well aware the trade bill alone was not point a finger at. ment that they all do so is as modest as it In return for accepting two sections it dis going to immediately solve all of our trade would be benign. Both business and labor likes, the administration would gain some problems directly, or eliminate the reasons for lobbyists have pumped it up into something provisions it dearly desires. One extends more than one-quarter of the current trade it is not. The political calendar has helped until 1993 the president's authority to nego deficit. Nevertheless, the trade bill does move them, but this provision neither threatens tiate new multilateral agreements to reduce our country in the right direction on trade, and nor will save American civilization as we trade barriers, subject only to an up-or know it. it deserves to become law. down vote in Congress. Another re-estab The best thing about finally passing this lishes the president's right to agree to tariff The second editorial entitled "Sign the bill is that then the movie will be over. Trade Bill" appeared in yesterday's Journal of reductions. A third puts the United States on the harmonized system of tariff classifi Commerce. While I disagree with part of its [From the Journal of Commerce, May 1, cations, an internationally agreed-upon assessment of the Toshiba provision of the 1988] system of tariff categories that our major trade bill, the editorial correctly states the rea SIGN THE TRADE BILL trading partners already have adopted. A sons for passing the bill, and it describes After three years of wheeling and dealing, fourth makes it easier for U.S. companies to some of the consequences if the trade bill is Congress has sent a trade bill to President go after imported goods that infringe upon not enacted. Reagan's desk. Mr. Reagan's disparaging their patents. The editorials follows: comments and veto threats notwithstand Some administration officials suggest that ing, it is a bill he should sign. if Congress would simply reconsider the bill [From the Washington Post, Apr. 29, 1988] The omnibus bill is not a perfect piece of and remove the few sections to which the THE SENATE TRADE VOTE legislation. But, given its checkered history, administration objects, a new bill could re The trade vote in the Senate-more than it offers a surprisingly sound and non-pro ceive the president's signature within a enough to pass the enormous bill on which tectionist approach to trade. matter of weeks. such effort has been spent, not quite Administration officials themselves appar That is unlikely: Congress remains rightly enough to override the promised veto ently agree. Their opposition stems not upset at the way the administration has means that negotiations between the presi from the trade provisions but from two sec handled trade matters and is not prepared dent and Congress will go on. The provision tions of marginal importance. One punishes to pass a bill incorporating only those provi requiring advance notice of plant closings, two foreign companies, Japan's Toshiba sions the president desires. In any case, Mr. though peripheral to the bill, is said to be Corp. and Norway's Kongsberg Vappenfa Reagan is in a poor position to strike a bar central to the president's objections. Maybe brikk, for their role in selling restricted mill gain, since he has never been willing to so, though major bills are rarely brought ing machine technology to the Soviet specify exactly which changes would lead down for such minor reasons, and the presi Union. The other is the much-ballyhooed him to sign the bill. The plant-closings pro dent is said as well to object to other fea plant-closings provision. Both of these ob vision itself was retained only after adminis tures that would restrict his and successors' jections concern matters whose importance tration officials specifically refused to freedom of action in this difficult field. The is far more symbolic than real. pledge Mr. Reagan's approval if it were bill's proponents may also stray beyond The "Toshiba provision" bars affliates of dropped. plant closings as they try to find a combina Toshiba and of Kongsberg from doing most A veto now has the potential to shatter tion to pick up the votes they need. It isn't non-defense business with the U.S. govern the world's trading system. The current clear what will emerge. ment for three years, and would bar all im round of the General Agreement on Tariffs This is curious legislation. The early, ob ports from a single Toshiba affiliate, Toshi and Trade, in which the United States has jectionable protectionist features in both ba Machine Co., for the same period. Japa been pushing for freer trade in agricultural the House and Senate bills were swiftly nese rightly object to one of their firms products and services, stronger protection of scrapped in conference. The remaining pro being singled out, among all violators of patents and copyrights and fewer restraints visions mostly range from harmless to export control regulations, for special treat on foreign investment, might well collapse if useful. In addition to applying various ments. The provision is undesirable, but it is the U.S. president remains without author- e This "bullet" symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor. 9676 EXTENSIONS OF REMARKS May 2, 1988 ity to strike a deal. The prospects for ratifi all-important. This want for truth is the of treatment for a variety of medical diseases cation of the U.S.-Canada free trade agree basis for our free press. The news media can and disorders. ment will be much diminished if Congress print freely that which the American public takes weeks to consider a veto override.

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