European Stars and Stripes (Newspaper) - December 03, 1994, Darmstadt, Hesse Saturday december 3, 1994 Trade Accord theism ars and stripes Page 5 Senate hands Clinton key Victory Washington a in a dramatic culmination of the 103rd Congress the Senate delivered president Clinton a political Triumph on a historic world Trade agreement with a spirit of bipartisanship that both democrats and republicans hoped would carry Over into next year. Let s make the Gatt vote the first vote of a new Era of cooperation a beaming Clinton said surrounded by leaders of both parties on the Whitehouse South Lawn. The 76-24 vote thursday night came during the first lame Duck session of Congress in 12 years and was too late to give democrats a pre election boost in popularity of the kind Clinton enjoyed a year earlier after the approval of the North american free Trade agreement with Canada and Mexico. \ but senators said the vote on the Gen eral agreement on tariffs and Trad could serve As a Model of inter party collaboration next year when republicans take control of both Chambers of con Gress for the first time in 40 years and Square off against the democratic White this is bipartisanship. This was about jobs and opportunities for Ameri cans said incoming Senate majority Leader Bob Dole a Kan. Clinton badly in need of a Cong res Sidnal Victory to lift his battered fortunes following the november elections had worked for Days to persuade wavering lawmakers to support the Deal. Minutes before the final vote the sen ate voted 68-32 to waive its budget rules. It was a crucial procedural hurdle be cause the legislation provided Only part of the revenues needed to offset . Tariffs expected to be lost Over the next dec Ade because of the Trade agreement. The Senate vote followed by two Days the House s 288-146 approval and sent sen. Bob Dole Leftr-Kan., meets with Treasury Secretary Lloyd Bentsyn on thurs Day before the Senate s approval of the general agreement on tariffs and Trade. The ratification legislation to Clinton Fortis certain signature. It gave the presi Dent a much needed boost to his prestige going into the upcoming Summit of the americas conference on Trade in latin America. /-.v. \ the 124-hation pact takes effect Jan. 1.administration officials now will focus on persuading the More than 80 countries who have yet to ratify it to join in by then. A key parliamentary committee in Japan endorsed the Accord thursday. Opponents in the United state charged that the global Trade agreement will be a serious setback to american workers and could cause Middle class voters to turn against both parties. The agreement cuts tariffs by an aver age of 38 percent worldwide. For the firs time it extends Gatt rules to new areas reducing Trade distorting agricultural subsidies lowering Trade barriers in service industries arid clamping Down on copyright piracy. It also creates a More powerful world Trade organization to referee Trade Dis Putes and eliminates the one country veto that a losing nation could use to Block an Adverse ruling. Senators supporting Gatt predicted the bipartisanship would continue next year but1 Only on a limited number of is sues which already have support in Bot parties such As a constitutional Amend ment to balance the budget. It does t mean this is going to be a dominant kind of thing but i do believe. It would be smart politics for Bot parties said sen. Paul Simon d-i11. I never believed we would fight with one another just for the pleasure of doing it said sen. John Mccain a Ariz. However a leading critic of Gatt consumer advocate Ralph Nader Dis missed the collaboration Asi a Victory for global corporations who had sent a Small army of lobbyists to the Capitol. He said it would simply cause voters to Spur both parties. V today s vote will Mark turning Point in the breakup of the two party system by new political forces soon to be unleashed Nader said of the Senate s vote. Texas billionaire populist Ross Perot who was an Independent candidate for president in 1992, campaigned vigorously against Gatt As he had against Naftal. -"/., a v. Perot and other opponents charged that the world Trade organization rep resented a dangerous encroachment on . Sovereignty and that the accor would Send american manufacturing jobs to Low wage countries overseas. Supporters said the agreement by Cut Ting the Border taxes americans have Topay while at the same time lowering barriers . Businesses and Farmers face overseas would provide a tremendous boost to the . Economy.,. The Clinton administration estimate that the pact would create a half million new jobs and mean an annual increase of $150 billion in . Economic growth a decade from now when the Deal is full implemented. _ _ what it s about by economics writer global Trade fights can quickly become confusing morass of unfamiliar terms and strange acronyms such As Gatt Here Are the Aji Swers to some Basic questions. _ q what is Gatt " a gait stands for the Genera agreement on tariffs and Trade. It is the name of both a Trade agreement and the organization set up in 1947 to oversee the agreement s implementation. Countries that agree to Honor its commitments to lower their Trade barriers become what Al Elc Nown As contract Trig parties to the Gatt. There Are currently 124 member countries including the United states q what is the Uruguay round i a it is the eighth and by far the most ambitious round of Trade negotiations aimed at lowering tariffs even More an extending the Gatt rules to several new areas. The talks began Iri Punta Del Este Uruguay in 1986 and were supposed to end in december 1990. However the were not Complete until december 1993 i Genevar a what was accomplished a quite a bit. The Gatt Congress took up this week cuts tariffs on average by 38 percent worldwide. It extends the Gatt rules to new area such As agriculture services and the Protection of copyrights and patents. It also creates a new world Trade organization with More Power to mediate Trade Dis Putes Between nations. Q in t the Trade organization one of the principal targets of Gatt opponents a " 1."- a yes. Critics from consumer advocate Ralph Nader to Texas businessman Ross Perot Are warning that the Trade organization represents a dangerous encroachment on . Sovereignty. Q if the United states has belonged tothe Gatt since 1947, Why Are opponents worried about the Trade organization a Gatt was basically a toothless Tiger when it came to enforcing Trade rules. It could appoint hearing panels to Rule on disputes Between nations. But if a country lost a decision the loser could simply ignore the ruling by exercising its veto Power. The world Trade Organiza Tion will eliminate this one country veto Power. A losing country will have to either eliminate its unfair Trade Barrier or pay compensation to the country bringing the complaint. 1 q what s wrong with that a nothing say the administration an supporters of free Trade. But opponents fear that foreign countries will launch wholesale assault on american Laws protecting Consumers workers and the environment As unfair barriers to Trade. Mex Ico in 1991 win a Gatt Case against a-. Law that bans imports of tuna caught in nets that also harm dolphins. Nothing came of the ruling because of the one country veto. Q what happens if a lot of . Laws Are challenged As unfair Trade barriers a the administration claims this won t happen but As a fail Safe mechanism it agreed to a request last week by sen. Bob Dole r-Kan., to establish pan Els of Federal judges to review Gatt Rul if a pattern of unfair rulings i found then the United states could pull out of Gatt q Gatt does t sound As though twill have much Benefit for the average America in a supporters disagree. They claim that the removal of barriers will greatly expand . Exports ing arid in services and this will Lead to creation of hundreds of thousands of new . Jobs and boost economic growth by perhaps $150 billion annually at the end of. 10 years when the new agreement i fully phased in. Trie administration also has labelled the reduction of tariffs which Are Border taxes imposed to put foreign goods at a competitive disadvantage As the biggest tax Cut in history -wortru$744 billion globally. Q what do opponents say a they cont end that the administration s Benefit claims Are grossly inflated. They say american workers especially i such highly protected industries As Tex tiles and apparel manufacturing will los thousands of jobs to Low wage Competition from abroad. Q will there be any More Trade agreements. A yes. The Clinton administration Al ready is preparing to launch talks with Chile As the first step in expanding the North american free Trade agreement beyond Mexico and Canada. President Linton will attend the upcoming Summit of the americas meeting in Miami where he and 33 other leaders for this Hemi sphere will discuss ways to lower Trade barriers further. Gatt winners Here s a consumer s guide to How duty rates would be affected under the world Trade agreement. Product . Duties rates old new refrigerators 2.9% 0% dishwashers / 3.6% 2.4% cassette tape recorders 3,9% 0% 8.6% 0% 500-700 cd motorcycles 3.7% 0% silk pantyhose 18.3% -2.7% sparkling wine 30.9$ 19.8$ whole Frozen Chicken 22 a i garlic 1.7$ 0.43$ japanese duties beef 50% 38.5% whiskey 24.5% 0% in season oranges 40% 32% european duties Beer potato chips in season apples 24% 0% 22% 14.1% 14% 9% per liter per kilogram 2.2 pounds a
