Statement About Trade Reform Legislation Pending Before the Congress

OVER the past several months, the House Ways and Means Committee has held exhaustive hearings and made a number of changes in the trade reform act which I proposed last April. Its work was completed yesterday, and the trade bill will soon be considered by the House of Representatives.

Many of the committee's changes were made over the strong objections of the Administration. Many others were accepted as significant improvements. In assessing the impact of the committee's changes, I have tried to determine how they would affect the purposes for which this legislation was originally designed.

In most respects, the bill submitted to the House by the Ways and Means Committee is a highly responsible piece of legislation.

--It would permit the United States to enter major trade negotiations with the authorities needed to achieve broad gains in trade liberalization with a strong and proper emphasis both on equity and reciprocity.

--It would significantly ease access to escape clause relief and adjustment assistance for American workers and firms suffering injury or threat of injury from ,growing import competition.

--It would broaden the range of actions the United States can take in responding to unfair international trade practices.

--It would introduce several new authorities which can be used to manage domestic and international economic policies more effectively.

--It would allow the United States to fulfill its international pledge to establish a plan of generalized tariff preferences for the less developed countries of the world.

In short, the trade reform act as reported to the House holds out the promise of more and better jobs for American workers, of more products at lower prices for the American consumer, of expanding exports for the United States and other nations, and most importantly, of reduced international tensions and a strengthened structure of peace.

In one important area, however, the committee bill is clearly inadequate. I am deeply concerned about the bill's failure to provide the tools we need to expand healthy commercial relationships with the Soviet Union and other Communist countries. This Administration is committed to seeking most-favored-nation treatment for the Soviet Union. Indeed, the United States has made a formal commitment to the Soviet Union' to seek the necessary legislative approval for such treatment in the firm belief that this is in the best interests of both our countries. Therefore, once again, I strongly urge the Congress to restore the authority to grant nondiscriminatory tariff treatment to all countries.