TRADE INTERESTS READY FOR BATTLE IN U.S. HOUSE

  U.S. lawmakers are gearing up for a
  showdown between protectionists and free traders as a major
  trade bill winds its way through committees to a vote by the
  full House of Representatives in late April.
      In a move to toughen U.S. enforcement of trade laws, a key
  House subcommittee last week approved a toned-down version of
  legislation to require President Reagan to retaliate against
  foreign countries that follow unfair trade practices.
      The bill will be the cornerstone of congressional efforts
  to restore competitiveness of American industries and turn
  around last year's record 169 billion dlrs trade deficit.
      Generally, the bill's provisions toughen U.S. enforcement
  of trade laws.
      The trade bill forces the administration to act rapidly on
  complaints of unfair trade practices, such as dumping products
  in the United States at prices below cost of production. It
  also forces the administration to act rapidly when an industry
  complains that a surge in imports threatens its existence.
      In writing the bill, the subcommittee rejected calls for
  trade relief for specific industries such as textiles.
      Several lawmakers have argued the new trade bill made too
  many concessions to Reagan and said they intend to back
  amendments to "get tough" with countries that violate trade
  agreements or keep out U.S. products.
      But congressmen known for their allegiance to free trade
  said the bill ties Reagan's hands too much in trade disputes
  and they will seek to restore his negotiating powers.
      Bill Frenzel, R-MI., said the subcommittee's bill was not
  one "that a free trader like me could endorse in all respects,"
  but he emphasized there was a consensus among lawmakers to work
  toward a bill Reagan and Republicans would ultimately endorse.
      The goal of trade legislation was "to make our trade policy
  stronger without violating our international trade agreements,"
  he said.
      In a key concession made at the urging of Ways and Means
  Committee chairman Dan Rostenkowski, D-IL., the trade
  subcommittee backed off a requirement that would have forced
  Reagan to impose automatically quotas or tariffs on imports
  from countries that engage in unfair trade practices.
      It also agreed the president may waive any retaliation if
  it would hurt the U.S. economy.
      Rostenkowski insisted the more moderate approach was
  necessary if the House wanted to pass a bill Reagan would sign
  into law.
      Reagan last year blocked Senate consideration of a tough
  House trade bill he branded as protectionist and this year he
  only reluctantly agreed to support a trade bill when he saw
  Democratic leaders were determined to pass such legislation.
      White House spokesman Marlin Fitzwater told reporters late
  last week that the administration still did not like some of
  the bill's provisions, but he added, "Generally we feel very
  good about the bipartisan consideration of the trade
  legislation. I think we are progressing very well."
      The first battle will take place next week when the full
  House Ways and Means Committee considers an amendment by Rep.
  Richard Gephardt, D-MO., to force countries like Japan, South
  Korea and Taiwan to cut their trade surpluses with the U.S.
      The subcommittee limited the Gephardt plan to provide only
  that the existence of a large trade surplus with the United
  States will trigger an investigation of unfair trade practices,
  but would not automatically set off retaliation.
      Organized labor has pressed lawmakers for more relief from
  imports where jobs have been lost to foreign competition.
      AFL-CIO president Lane Kirkland this year angered the
  administration when he said any trade bill Reagan would sign
  would not be worth passage in Congress.
      But Rostenkowski set the tone of the trade debate by
  saying, "I'm not trying to write legislation to please Lane
  Kirkland. I'm trying to write legislation that will be signed
  by the president."
      Rep. Ed Jenkins (D-GA.) intends to push separately a bill
  to protect the domestic textile and shoe industry, an aide
  said. Reagan vetoed a similar measure last year.
      House Speaker Jim Wright of Texas, one of the most
  influential proponents of aid for specific industries beset by
  low-priced foreign competition, last week renewed his call for
  import relief for the domestic oil industry and announced his
  support for a Senate plan to trigger a temporary oil import
  tariff when imports reach half of domestic consumption.
  

