Reagan Decides Not to Propose New International Trade Dept.

President Reagan has decided against asking Congress to abolish the Commerce Department and to replace it with a department of international trade and industry that would consolidate the government’s various trade agencies, a spokesman said today.

“The President just felt at this time we weren’t ready to make such a proposal,” said White House spokesman Marlin Fitzwater.

Opponents have argued that such a department might foster protectionist action that could trigger trade wars with other countries.

The plan, which has been considered periodically during the Reagan Administration, had been pushed by Commerce Secretary Malcolm Baldrige.

Fitzwater said that it did not appear the plan would fare well in Congress now. “Secondly, we have several other legislative priorities now before the Congress,” Fitzwater said. “And, thirdly, there is still quite a bit of discussion about whether or not it is the right way to go.”