Statement of Administration Policy: H.R. 1562 - Textile and Apparel Trade Enforcement Act of 1985 (as Amended by the Senate)

(Revision)
(House Rules)
(Rep. Jenkins (D) Georgia and 291 others)

The Administration strongly opposes H.R. 1562 which would significantly roll back imports of textile and apparel from several major suppliers, regardless of whether such imports cause damage to U.S. producers or are unfairly traded. Specifically, H.R. 1562 is objectionable because it would:

— Cost U.S. consumers billions of dollars annually, with the severest impact falling on low income families.

— cause exporters to shift to higher profit, more costly merchandise, thereby negating the intended effect on the trade balance, as in the case of Japanese auto exports during the Voluntary Restraint Agreement;

— violate U.S. commitments under the General Agreement on Tariffs and Trade (GATT), under the Multi-Fiber Arrangement, and under numerous 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 levels and;

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

H.R. 1562 would also impose a quota on footwear imports and require the President to negotiate "voluntary restraint agreements" to limit foreign production of copper to levels of prior years. These provisions are also objectionable because the President has recently determined that restraints on trade and production of footwear and copper are not in the national economic interest. At the President's direction, the Secretary of Labor is targeting training and reloaction assistance to workers in these industries.

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