Statement of Administration Policy: S. 680 - Textile and Apparel Trade Enforcement Act of 1985

(Senate)
(Sen. Thurmond (R) South Carolina and 29 others)

The Administration strongly opposes S. 680 which would significantly roll back imports of textile and apparel from products 12 selected major suppliers, regardless of whether such imports cause damage to U.S. producers or are unfairly traded. Specifically, S. 680 is objectionable because it would:

— cost U.S. consumers 28 billion dollars annually, with the severest impact falling on low income families because, just as Japanese automobile producers chose to increase shipments of luxury and "loaded" cars in order to maintain profit levels despite lower volume during the period of the Voluntary Restraint Agreement, so too can textile exporters be expected to shift more of their shipments into higher profit, more costly merchandise;

— violate U.S. commitments under the General Agreement on Tariffs and Trade (GATT), under the Multi-Fiber Arrangement, and under the 32 bilateral agreements negotiated with textile exporting countries;

— result in retaliation against U.S. exports with agricultural products and aircraft being particularly vulnerable, with a cost to the U.S. in decreased exports far in excess of the lower import level; and

— seriously undermine the ability of the U.S. to effectively negotiate with trading partners in the future because it violates current agreements.

The President's senior advisors will recommend disapproval of this legislation if it is passed.