Bonn Has the Clout--but Will It Use It? : Trade talks: Kohl’s knockout punch might even unnerve foot-dragging France

Helmut Kohl, the chancellor of Germany, has a chance to make history again--but only if he moves with the same stunning decisiveness as he did in unifying his country. For if other members of the European Community were to work harder to salvage the sputtering world trade talks known as GATT, Kohl could be the player in bringing about a new order in world trade.

Germany has immense clout within the EC, something President Bush ought to encourage the chancellor to wield when they meet at Camp David next month. But the domestic pressures on Kohl to do otherwise are great. The costly reunification of the two Germanys is taking a big toll on the economy: A third straight quarterly drop in gross national product, rising inflation, high interest rates and unemployment. Germany’s current account balance--merchandise and services, trade, tourism and financial transfers--fell into the red for the first time since 1981. But the world’s second-largest trader enjoyed an overall trade surplus in 1991, despite a deficit with the United States.

Keeping up exports would help the flagging German economy. A pickup in the U.S. economy would help those exports. So Kohl should get aggressive in pushing for a successful conclusion of the Uruguay Round of GATT, which stands for General Agreement on Tariffs and Trade. After nearly six years of negotiations, the EC is still dragging its feet on agreeing to a formula to phase out farm supports and subsidies.

France has been a particular culprit in standing fast to protect its politically powerful farmers. Until recently, Germany stood beside its neighbor, but last fall they began to part company. Along with other EC trade members, Bonn said it believed some trade-offs on agriculture were necessary to secure substantial benefits for industry and services.

Still, it was all talk, no action. Kohl must turn up the pressure on France. As the 1992 chairman of the Group of Seven, Kohl also can push for members, particularly France and Japan, to wrap up the trade talks expeditiously, by April. That would help the economies of Germany, the United States and other nations as well.