TRADE INTERESTS READY FOR FIGHT IN U.S. CONGRESS

  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.
      This 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.
      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.
       On the other hand, 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.
      Republican Bill Frenzel of Michigan 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
  trade lawmakers to work toward a bill Reagan and Republicans
  would ultimately endorse.
      Frenzel said the goal of trade legislation was, "to make our
  trade policy stronger without violating our international trade
  agreements. You'll find a lot of people who think we have not
  done the former enough. You'll find poeple who think we haven't
  avoided violating agreements."
      In a key concession made at the urging of the powerful
  chairman of the House Ways and Means Committee, the trade
  subcommittee backed off a requirement that would have forced
  Reagan to automatically impose quotas or tariffs on imports
  from countries that engage in unfair trade practices.
      It also agreed he may waive any retaliation if it would
  hurt the U.S. economy.
      Ways and Means chairman Dan Rostenkowski, an Illinois
  Democrat, insisted the more moderate approach was necessary if
  the House wanted to pass a bill Reagan would sign into law.
      Reagan last year had blocked Senate consideration of a
  tough House trade bill he branded as protectionist and this
  year only reluctantly agreed to support a trade bill when he
  saw Democratic leaders were determined to pass a bill.
      As an indication of his success, White House spokesman
  Marlin Fitzwater told reporters Friday the administration still
  did not like some 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, a Missouri Democrat, to force countries such
  as Japan, South Korea and Taiwan to cut their trade surpluses
  with the United States.
      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.
      Rep. Phil Crane, an Illinois Republican and staunch free
  trader, said he will try to further weaken the Gephardt plan.
      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 in a statement that any trade bill Reagan would
  sign would not be worth passage in Congress.
      But Rostenkowski set the tone of the trade debate in a
  statement, "I'm not trying to write legislation to please Lane
  Kirkland. I'm trying to write legislation that will be signed
  by the president."
      In writing the bill, the subcommittee rejected calls for
  trade relief for specific industries such as textiles.
      Rep. Ed Jenkins, a Democrat from Georgia, agreed to hold
  off his fight. He 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, a Texas Democrat, is one of the
  most influential proponents of aid for specific industries
  beset by low priced foreign competition.
      Wright Thursday 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.
      For the most part, the trade bill's provisions toughen U.S.
  enforcement of trade laws. The bill forces the administration
  to act rapidly on complaints of unfair trade practices such as
  dumping products in the United States at prices below the cost
  of production.
      It also forces the administration to act rapidly when an
  industry complains that a surge in imports threatens its
  existence. Congressmen said the change would have required the
  U.S. International Trade Commission to impose limits on car
  imports in 1981.
  

