Statement of Administration Policy: S. 1420 - Omnibus Trade and Competitiveness Act of 1987

(Senate)
(Senator Byrd (D) West Virginia)

If S. 1420 is presented to the President in its current form, the President's senior advisers will recommend veto.

The administration objects to the bill because it would create: (1) sweeping procedural changes that would repress trade and investment; (2) violations of our international obligations that would trigger a downward spiral of retaliation; (3) constraints on the discretion of this and future Presidents to formulate international economic policy and conduct negotiations; (4)  potential disruptions to financial and labor markets; (5)  special benefits to powerful industries; and (6) significant additions to the budget deficit. The net effect of this bill would be to move U.S. trade law in a more protectionist direction.

Although some improvements have been made during floor consideration, many of our fundamental objections to s. 1420 have not been cured.

The President is prepared to work with Congress to develop responsible trade legislation; however, extensive changes would be required to transform this unacceptable bill into an acceptable conference product.