Don’t Waffle Now on GATT

The United States played a crucial leadership role in bringing about the successful conclusion of the Uruguay Round of world talks to liberalize trade. Now comes ratification. Many of our trading partners are waiting anxiously to see whether Congress, which has displayed unusual nonpartisanship when it comes to trade, will approve the necessary legislation in its current session to implement the new accord by year’s end.

This is no time for waffling in Washington. If the United States delays in approving the new GATT agreement, other nations might postpone their own votes. That would undercut confidence in free trade just as the economies of Europe and Japan are beginning to show signs of recovery.

To expedite a congressional vote, U.S. Trade Representative Mickey Kantor said the Administration would drop the fast-track authorization it had tacked on to the GATT implementing legislation. President Clinton was seeking fast-track capability for future trade agreements. The authority, which last was extended to the Uruguay Round, allows a President to negotiate trade accords that are subject to a simple yes-or-no vote by Congress, with no amendments.

The Administration now is offering to take up its fast-track request separately, after the GATT legislation is approved. The risk, of course, is that it may not be easy to resurrect fast track in a new Congress after the November election. But if fast track remains in the GATT bill, it poses an easy out for those in Congress who are reluctant, for other reasons, to support GATT.

If Congress does not approve the GATT accord, U.S. exports, including those from California, might decline because of continuing tariff and non-tariff barriers. A Bank of America report forecast an immediate loss of 173,000 jobs in California, growing to a loss of 252,000 jobs by the year 2000. The outlook would be far rosier with a new GATT agreement in place. California and the nation both would benefit.