Breeze of Bipartisanism : Dole agrees to help Administration pass vitally needed world trade accord

Now that Senate Republican Leader Bob Dole has committed to helping to pass the free trade pact “in any way I can,” bipartisan support to liberalize trade ought to grow and result in Senate approval of a new world trade agreement next week. The House appears to have the necessary votes. The 103rd Congress may be a lame duck but it can still make history by implementing the General Agreement on Tariffs & Trade.

Dole’s cooperation is a watershed of sorts in marshaling bipartisan support. The Kansas Republican had been threatening to not support GATT unless President Clinton separately agreed to cut the capital gains tax. The political blackmail was shameful; Clinton wisely did not buckle under and make any promises on capital gains.

However, in exchange for Dole’s support the Administration did agree to the senator’s request for a mechanism to make it easier for the United States to withdraw from the World Trade Organization, which would be set up to police the GATT accord. Dole had been concerned about the lack of safeguards to protect U.S. sovereignty in trade disputes under the WTO.

At Dole’s request, the Administration backed the creation of a U.S. judicial panel to review disputed WTO rulings. If the panel finds three unjustified rulings against the United States within a five-year period, it could trigger a congressional vote to pull out of the organization.

The complex, highly technical GATT accord is far from perfect. There are also other concerns about the WTO, which must be followed closely before and after Congress approves the agreement. The dispute settlement process, as proposed, is closed to the press and public. It should be opened up.

The accord also leaves much to be desired when it comes to protecting children from being exploited as workers in foreign manufacturing plants. Some U.S. firms insist that overseas contractors hire workers over age 14. American companies and consumers must guard against doing business with those who use child labor. Yet despite these concerns and others, the international community would be far better off with a world trade agreement. For the United States, increased trade in the long run will mean jobs, jobs, jobs.

The countdown to the first big test of bipartisan cooperation since the elections now begins. Failure to ratify the accord would cost the United States dearly.