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House Republicans Draft Sweeping Trade Changes

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Associated Press

House Republicans, responding to growing political pressure on trade issues, on Wednesday hammered out a sweeping plan with provisions ranging from a possible trade summit meeting to a revised system for retaliation against overseas barriers to U.S. exports.

The draft measure, to be discussed today at a meeting between House GOP leaders and U.S. Trade Representative Clayton K. Yeutter, calls for a “Reagan Round” of international tariff and trade talks as well as early action on a U.S.-Canadian free-trade zone.

Japanese Concessions

In addition, it would authorize efforts to obtain Japanese concessions in return for Alaskan oil.

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Fast-track procedures to block damaging agricultural shipments, a speed-up in the presidential decision-making timetable for retaliation against unfair practices and a two-year extension of jobless aid also would be provided, according to an 11-page document outlining the GOP plan.

Although remaining wary of protectionist measures, House Republicans have come under increased political pressure over the nation’s projected $150-billion trade deficit.

The draft legislative package would stop short of tariffs and quotas mandated under numerous bills opposed by the Reagan Administration. At the same time, it would assign an array of tariff-related matters to the U.S. trade representative.

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Rollback on Imports

The meeting today, in the office of House Minority Leader Robert H. Michel (R-Ill.), was set to coincide with action by the House Ways and Means Committee on legislation requiring a massive rollback in textile imports. That measure appears headed toward approval by the panel, followed by early floor action.

Specific provisions of the Republican plan would:

--Require the U.S. International Trade Commission to report recommendations for tariff and quota relief for domestic industries to the trade representative rather than directly to the President. Unless the President acted within 15 days, the recommendation would become effective.

--Direct the trade representative to decide within 14 days on petitions for emergency restrictions on imports of perishables. If he upheld the request, he would be required to impose tariffs or quotas with a week.

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--Require the trade representative to determine if trading partners are providing U.S. businesses with full access to their markets. If they do not, he would recommend “action against the offending nation’s two largest exports to the United States.” If the President rejected the recommendation, Congress could overturn the decision within 90 days.

Those provisions would overhaul the enforcement machinery but would not represent a major increase in powers already available to the President and Congress.

Reagan Rejects Tariffs

President Reagan has rejected several requests for tariffs and quotas to protect U.S. industries against imports. Last month, he turned down a trade commission recommendation for relief for the shoe industry.

The GOP measure calls for continued ministerial-level monetary talks and urges “that the President evaluate . . . whether a summit on international trade is appropriate.” It calls for a new round of negotiations under the General Agreement on Tariffs and Trade “as soon as possible.”

Besides urging action to establish a U.S.-Canada free-trade zone “as soon as practicable,” it would require review by the trade representative of other possible such zones. A U.S.-Israeli version took effect this year.

Reports by Envoys

Other provisions would establish a presidential study commission, require U.S. ambassadors to submit annual reports on market access, beef up the Customs Service and authorize new measures to spur research and development.

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One provision would amend the Freedom of Information Act to require notification of those who submit information to the government if another party sought to obtain it under the law. Those objecting to release of their information would have 60 days to show why the request should be denied.

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