This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu T R A D E • The Insider's Insider

Forget Buchanan. obert E. Lighthizer can see heli- Mr. Inside adviser to Dole. He knows how copters landing at the White Washington works very, very well." Forget Perot. When it House from his 1lth Floor office Yerxa, now a partner in the Brussels on the corner of New York office of the Dallas-based law firm of comes to the future of AvenueR and 15th Street. With his spectac- Akin, Gump, Strauss, Hauer & Feld, U.S. trade ular views of the Treasury Department, likened Lighthizer's skills to those of policy, the Lafayette Park and the closed-off stretch James A Baker III, the former Cabinet economic nationalist of Pennsylvania Avenue in front of the member and White House chief of staff in executive mansion, it would be hard for the Reagan and Bush Administrations, who makes things the 48-year-old lawyer-lobbyist to get and Leon E. Panetta, President Clinton's much closer to the Oval Office short of chief of staff. "He knows the intersection happen is Robert E. going to work there. between business and government and Lighthizer, a lawyer- Many say that is exactly what Lighthizer law and politics, and that's a very difficult would like to be doing come January intersection for a lot of people to under- lobbyist who's close to 1997. A trade and tax expert who has stand. Someone like Lighthizer is a natu- been close to Senate Majority Leader ral at that," Yerxa said. Senate Maiority Leader Robert Dole, R-Kan., for 17 years, first as To Lighthizer's critics in the trade (and presidential a top aide, then as confidant and informal world, however, the prospect of his already adviser, Lighthizer has used his brains, considerable influence growing still further contender) Robert connections and take-no-prisoners style to sets off alarm bells. They wonder whether climb his way to the top of a very tall heap he can set aside the interests of his domes- Dole, R-Kan. of ambitious, aggressive Washington tic manufacturing clients, including protec- lawyers. Too seasoned a player to admit tion-seeking U.S. steel producers, in favor to any designs on power, he nonetheless of a broader view of American economic BY BEN WILDAVSKY refers to the area outside his office win- welfare that pays heed to the needs of dows with a military metaphor: "Fort importers and consumers as well as manu- Clinton." And as Dole's campaign trea- facturers. Already, many see Lighthizer's surer for the 1996 presidential race, he is hand in Dole's increasingly skeptical doing his utmost to help his mentor scale stance on -as evidenced most the walls and storm the citadel. recently by his Nov. 3 Senate speech Should Dole make it inside, the odds opposing any new trade deals until the are good that Lighthizer would join him, returns are in on the North American Free probably as chief of staff or U.S. Trade Trade Agreement (NAFTA) and the Representative (USTR). For Lighthizer, a Uruguay Round of the General Agree- doctor's son from Ashtabula, Ohio, a ment on Tariffs and Trade (GATT). plum assignment in a Dole White House That positioning could play well with would be the crowning touch to a resume voters: An early November poll by Lans- already filled with buzzwords that tele- ing (Mich.)-based EPIC-MRNMitchell graph Washington insiderdom: George- found many Americans worried about town University, Covington & Burling, trade and sympathetic to protectionist tar- Senate Finance, deputy USTR and, for iffs. the past decade, partner in the Washing- Indeed, while much of the ink that has ton office of the blue-chip New York City been spilled so far on the role of trade in law firm of Skadden, Arps, Slate, the 1996 election has focused on the Meagher & Hom. America First oratory of Republican pres- "If Bob Dole is a Washington insider, idential candidate Patrick J. Buchanan I'd describe Lighthizer as the insider's and his populist bedfellow Ross Perot. insider," said Rufus H. Yerxa, a trade Lighthizer is arguably a far more impor- lawyer who was staff director of the tant player in practical terms. Despite the House Ways and Means Trade Subcom- rhetorical importance of the Buchanan- mittee from 1985-89 and who was USTR Perot axis in defining one boundary of the Mickey Kantor's chief deputy until early national debate on trade, the reality on this year. "He is very effective as a kind of the ground in Washington is that Light- • 2852 NATIONALJOURNAL 11 /18/95 Page 1 of 4 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu

hizer and player-coaches like him have enormous influence on which laws are passed and which deals are made. Even if Dole doesn't make it past the GOP pri- maries, Lighthizer's skills, access and clients virtually ensure that he will contin- • ue to enjoy A-list clout and, for better or worse, do all he can to move U.S. trade policy further in the direction of economic nationalism.

A REVOLVING DOOR OVERLOOKED Many critics in recent years have de- nounced the revolving door that leads large numbers of former U.S. trade nego- tiators into lucrative posts as lawyers and lobbyists for foreign businesses and gov- ernments. Perot adviser Pat Choate devoted his 1990 book, Agents of Influence, to the topic, for example. And in July, the Senate voted, 98-0, for a lob- bying reform bill that included a Dole- sponsored amendment that would bar any former USTR or deputy USTR from lob- e bying for foreign interests. The bill, which ~ is expected to reach the House floor by : mid-November, would also prevent any- ] one who has worked for foreign entities -5 on trade disputes with the ii: from being appointed to senior U.S. trade During Lighthizer's 10-year watch at tive, high-class protectionist. Open com- negotiating posts. Skadden, Arps, where he now heads the petition with similar market systems is But Lighthizer is a prime example of a 18-member international trade group, the fine, he said, but realpolitik requires a less-remarked-upon phenomenon: the firm has undergone an unusual shift from tougher approach to mercantilist econo- domestic revolving door. After negotiat- representing mostly foreign clients that mies such as China's and Japan's. "I clear- ing steel import quotas with seven foreign are responding to unfair-trade complaints ly view myself as a nationalist," he said, countries during his stint as deputy USTR to working predominantly for domestic asserting that the "theology of free trade" from 1983-85, he was quickly hired by firms that are petitioning for import relief. often doesn't square with reality. "I think U.S. steel companies when he left govern- Lighthizer, who sits on the advisory board we have to have a 'What is good for the ment for private practice. And both his of the protection-inclined Economic United States?' point of view on all of trade work and the highly successful tax Strategy Institute (and whose nonsteel these things. I am not one who says, 'Our practice that dominated his first couple of clients include insurance companies and objectives should be what's good for the years at Skadden, Arps had him lobbying high-technology firms), says his prefer- world community.' Now, what I want may the Finance Committee, where he had ence for domestic clients stems from his be good for the world community, but been staff director and chief counsel just a growing I concern about the direction of think the starting point ought to be what's few years earlier. the U.S. economy. "The need in this good for the U.S." At one time, according Some trade specialists say that it's iron- country is to preserve our manufacturing to a Lighthizer critic, the running joke at ic that public criticism has focused on for- base," he said, "and you're not going to Skadden, Arps was that "he even hates mer U.S. officials who work for foreign get that by representing foreign clients." clients Canadians." rather than on Lighthizer and his America's shrinking manufacturing sec- breed. In Washington's trade battles, they tor is "a fundamental problem for soci- argue, American consumers may be bet- ety," Lighthizer said in an interview. PULLING DOLE'S mlNGS? ter served by those who are condemned "These are the jobs that are the backbone In trade circles, Lighthizer is often for "changing sides" and working for for- of the middle class . . . and to the extent mentioned in the same breath as Demo- eigners than by flag-waving lawyers for you get rid of those jobs, you're getting cratic trade lawyer Alan Wm. Wolff, domestic producers. "An American who's more of a stratified kind of society. managing partner of the Washington representing a foreign client is probably You're getting the rich and lower middle office of New York-based Dewey Ballan- going to represent liberalization, which class and nobody in the middle." Part of tine. (For a profile of Wolff, see NJ, from a purely economic standpoint would 8/5195, the problem is unfair trading practices by p. 1994.) The two form a sort of biparti- be welfare-enhancing for the entire econ- foreign countries, he contended. And part san tag team as co-counsel to the domes- omy," said Howard F. Rosen, a trade of his solution is to keep antidumping and tic steel industry. But despite some economist who is executive director of the over- other unfair-trade laws strong. "We have lap, their strengths and styles federal Competitiveness Policy Council. differ. a real obligation to keep people from los- Wolff has a lower-key personality "A person working for domestic industry that ing their jobs in an unfair way," he contin- seems to match his scholarly, detail-ori- is likely to be seeking protection, which ued. ented policy approach. Although has costs to the U.S. economy. Therefore, Light- Lighthizer. who supported both hizer can dot i's and cross t's when he in my mind, it's not clear that one is has nec- NAFTA and GATT, bristles at his detrac- to, he is more charismatic, a gregarious essarily better than the other." tors • ' contention th;it he is simply an effec- pitchman who jokes and exaggerates for Page 2 of 4 NATIONAL JOURNAL 11 / 18/95 2853 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu

rhetorical effect before settling down to mittee was held just two days after Presi- basically because I'm close to Sen. Dole," the serious business of deal making. - dent Reagan formally nominated him for he said. "The vast, vast majority of what I "Bob would not particularly regard the job in April 1983. The hearing lasted do professionally has nothing to do with calling himself a trade theoretician as an all of 20 minutes. The full Senate con- Sen.Dole." honor," said Leonard E. Santos, a partner .. · firmed him a day later. Others back Lighthizer's contention in the Washington office of Perkins Coie, At USTR, Lighthizer was responsible that Dole isn't inclined to let Lighthizer or a Seattle-based law firm. Santos, who was for a variety of industrial, agricultural and anyone else pull his strings. "I've always investment issues, but steel felt that the view that everything Dole was the highest-visibility does comes from Llghthizer is completely portion of his portfolio, overrated," said Brad G. Figel, a fomier "He proved to be an Finance Committee chief trade counsel extraordinarily tenacious who leans more toward free trade than and effective negotiator," Lighthizer does. "I think Dole calls his said Laird D. Patterson, own shots," said Figel, who left Capitol the Washington-based Hill earlier this year to become director of counsel for Bethlehem government relations and international Steel Corp. A veteran ob- trade counsel in the Washington office of server of the Washington Beaverton (Ore.)-based Nike Inc. trade scene said that Still, Lighthizer's influence on Dole's Lighthizer stood out for a general trade stance seems unmistakable. . different reason. "He According to a source familiar with the struck me as almost the negotiations, Lighthizer masterminded first USTR person who the deal struck between the Senator and had almost no ideological the White House last year to create a predispositions," the trade panel of U.S. judges to review the deci- specialist said. "The stan- sions of the new World Trade Organiza- dard was to be ideological- tion (WTO). .g ly disposed to free trade Some analysts viewed the "three- «: but very pragmatic."·1,..ight- strikes-and-you're-out" concept simply as Robert L Lighthizer negotiated steel import quotas. hizer, by contrast, "seemed a clever way to buy political cover at home Soon thereafter, he was hired by ••• U.S. steel companies. to be ideologically indif- from those worried about threats to U.S. ferent between restricting sovereignty. But others complain that the chief trade counsel to the Senate Finance trade and promoting trade." so-called Dole Commission was designed Committee in the mid-1980s and whose When Lighthizer left the government to help Llghthizer's steel clients. They say clients since then have included some for- for Skadden, Arps, "we signed him on it would implicitly threaten WTO panels eign steel companies, termed Lighthizer a early," Patterson said, "because there's a judging steel cases by holding out the "pragmatist" rather than a free-trader or rich tradition in this town of USTR nego- prospect of U.S. withdrawal from the or- a protectionist. "He sees himself as a per- tiators' promptly going to work for foreign ganization if panelists rule against Ameri- son who understands the politics of trade interests, and we were very anxious that can industry. Despite several attempts by and how to position his principles to he not do so." Dole, the Senate hasn't yet passed legisla- respond to the political forces generated Lighthizer remained close to Dole, tion creating the oversight body. through trade policy." seiving as campaign vice chairman for his Lighthizer is "obviously somebody who Another key difference between Light- 1988 presidential bid. And even as Light- is influential in helping the leader to look hizer and Wolff is that the Republican hizer's power grew, some believed he was at the issues and form his opinions," half of the duo hitched his star to a now- setting his sights still higher. As the 1988 Sheila P. Burke, Dole's chief of staff, said prominent politician early on. A product Omnibus Trade and Competitiveness Act in an interview. "I don't think it's undue of Catholic schools in Ohio, Lighthizer was making its way through Congress, he influence. It's the influence you'd expect graduated from in lobbied for a proposal to boost the status from somebody who's a trusted aide and 1969 (where he knew Clinton slightly of the USTR by renaming the nation's who's worked with him for a long time. through his roommate). chief trade negotiator "Secretary of Inter- They agree sometimes, and they disagree He spent nearly a year on active duty in national Trade" so he or she would be sometimes. Bob is always scrupulously Fort Gordon, Ga., as a military police called "Secretary" rather than simply honest when he deals with us if he has a sergeant in a District of Columbia Nation- "ambassador." Some Capitol Hill client interest .... He's one of the most al Guard unit, then graduated from observers noticed that after Dole dropped straightforward people I know." Georgetown Law Center in 1973. After out of the GOP primaries, Lighthizer A senior House Democratic aide, who five years honing his litigator's skills as an seemed to lose interest in the provision. like many in his party praises Lighthizer's associate specializing in antitrust cases at Lighthizer said that he pushed for the work on trade issues, said that getting to the Washington firm of Covington & title change as "a good-government thing the bottom of how much he influences Burling, he was hired by Dole in 1978 as to do," but that it's "totally untrue" his Dole is "sort of like the Wizard of Oz. I've chief Republican counsel to the Finance interest faded along with Dole's presiden- never got into the palace to find out Committee. tial hopes. In any case, he said, "there's no what's happening behind the curtain, but After the GOP took control of the Sen- way I would have gone into government in Bob usually says we should look at X, and ate in 1980, Lighthizer became the com- '88-1 just got out in '85." X generally happens." mittee's staff director and chief counsel at Lighthizer is sensitive to the perception Indeed, whether by coincidence or not, age 33. Three years later, he moved to a that clients seek him out because of a week after Lighthizer remarked in an new deputy USTR slot that insiders say whom he knows rather than what he interview that he believed a "cooling-off was created at Dole's behest. His confir- knows. "I don't view myself, and I don't period" was necessary following the pas- mation hearing before the Finance Com- think it's fair to view me, as being hired sage of NAFTA and the creation of the • Page 3 of 4 2854 NATIONALJOURNAL 11/18/95 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu

WTO, Dole was on the Senate floor _say- . rigorous exercise routine before driving seems uncharacteristically short of words. ing the same thing. "I do not believe his Chrysler Concorde to downtown He first responds to the question with a Congress should extend new fast-track Washington from his home in Potomac, wisecrack. "I guess because I speak when (trade-negotiating] authority until we have Md. (He once drove a Porsche 911 Targa I'm spoken to." When pressed, he adds, had an adequate cooling-off period.. fol- and for a period owned a Ferrari 308, but "I don't iaJow, we just, I just, you know, lowing the two recent major trade agree- his family now drives American cars.) I'm comfortable around him and I think • ments," Dole said. Many of his evenings are spent on cam- he's comfortable around me. There are A Republican trade lawyer who often paign events. people-it's hard to articulate-that you represents foreign clients lamented Llght- DeArment said Llghthizer applies the find you get along with." hizer's influence on the Senator. "I do intensity of his work life to his off-tluty Then, warming up as he lands on safer, worry about Dole's judgment in relying on hours as well. "I've gone on vacation with more familiar ground, he elaborates on the a guy like this, who's a perfectly decent him a number of times," he said. "He's a deference and sixth sense required of a guy but extremely ambitious and not terri- ball of fire. He never seems to be at rest. close political aide. "My objective every bly knowledgeable," he said. Lighthizer He doesn't want to sit on the beach. He'll time I worked for Sen. Dole-and still is "is in beyond his depth," the lawyer main- say, 'Let's run, let's go play golf, let's go today-was to do what I thought he want- tained. "It's the old story. He hasn't got fishing.' It's kind of the George Bush style." ed to do. In other words, I did not have my his driver's license, but he 's behind the Lighthizer is a devoted Georgetown own agenda. I didn't try to tell him how to wheel of a Mack truck." basketball fan who once hired star player vote or how to act. I tried to figure out Patrick Ewing as an intern at the Finance what he wanted, sometimes without asking Committee. IN YOUR FACE Married and the father of him. And I had a sense, I felt that I was on two teenagers, he has become active in the same wavelength as he was, and had a Like Dole, Lighthizer has a personal the Knights of Malta and other Catholic sense that I could analyze what he wanted style that inspires both fierce loyalty and, groups in recent years. In fact, he per- done and I did it. That's what staff people from some, fierce condemnation. suaded Burke-who said that Llghthizer do. I never viewed myself as the principal, "He's a person who doesn't play games is "far more conservative than I am"-to which I think is a fatal mistake." with other people," said Roderick A. DeArment, a partner at Covington & Burling who worked at the Finance Com- mittee with Lighthizer, a longtime friend. "He's very direct and straightforward, and no one has to guess what his position is. He has an in-your-face style that I've always enjoyed-but not everyone does." Among those who don't are those who have been on the receiving end of his cut- ting put-downs. He has a reputation for riding roughshod over subordinates. Some say he doesn't suffer fools gladly-and that he has a very broad definition of what constitutes a fool. But in a perverse confir- mation of his effectiveness, even a former colleague who speaks bitterly of Light- hizer's "abusive" and "belittling" behavior says he would send clients to him because of his ability to deliver. (Lighthizer said that it's "totally untrue" that he's hard to work for. He acknowledges being a demanding boss, but points out-<:0rrect- ~ as ly-that he has maintained a loyal network < of former employees and colleagues.) ~ Even some of those who differ with -5 ~ Lighthizer ideologically commend his incisiveness and political instincts. join a lay Catholic organization called the However Llghthizer may view himself, "You can be in a whole room of lively, John Carroll Society. While Lighthizer he is well aware of how others view him. intelligent people and it's often Light- has impeccable partisan GOP credentials, And the perception of having power, hizer's comment that you remember," he says he rarely disagrees on issues with after all, is often hard to distinguish from said trade lawyer Judith H. Bello, a for- his older brother James, a conservative the real thing. Lighthizer has both, and mer USTR general counsel who is now a Democrat who for many years was a he's counting his blessings. partner at Sidley & Austin. "He captures county and state official in Maryland. A few months ago, Lighthizer said, he the essence of an issue. He's a master of and a fellow lobbyist were playing golf cutting to the chase and doesn't feel that and chatting about an acquaintance it's necessary WINNING THE LOnERY to speak in a carefully who'd won a sizable lottery jackpot. nuanced, lawyerly way, hedging all of his Although he willingly sits for a two- "Jeez, I don't know what I'd do if I won bets. He says , ' Yeah, yeah, yeah-this is hour interview, when questions about his the lottery," his friend said. "You know what's going to happen.' " working styl1: and his relationship with something?" Lighthizer replied. "In the Famously hardworking , Lighthizer says Dole come up, Lighthizer protests that he opinion of most people in the world, you he rarely sleeps more than five hours a isn •t much given to introspection. Asked have. You've won the damn lottery! So • night. He's up by 5 AM. to complete a why he a nd Dole get along so well, he have I! " • Page 4 of 4 NATIONALJOUR NA L 11 /18/95 2855