Senate Passes Trade Bill Aimed at Reducing Deficit

The Senate, trying to toughen U.S. policy against unfair foreign trade practices against President Reagan’s wishes, overwhelmingly passed an amendment today aimed at eliminating overseas barriers to U.S. products and cutting the trade deficit.

The amendment, one of the most important in the debate on the 1,013-page trade bill, sailed through the Senate on an 87-7 bipartisan vote.

Sen. Max Baucus (D-Mont.) said the amendment “is not going to be the panacea that is suddenly going to eliminate the (U.S.) trade deficit” that last year topped $166 billion.

But Baucus predicted that if the amendment becomes law, it will probably reduce the $62 billion U.S. trade deficit with Japan by about 15% to 20%.

Liberal and conservative supporters took great pains to stress that the compromise Senate amendment was nothing like a more protectionist House-passed amendment sponsored by Rep. Richard A. Gephardt (D-Mo.), a presidential candidate.

“To those who call this the son of Gephardt, don’t do it,” said Senate Democratic leader Robert C. Byrd of West Virginia, who co-sponsored the amendment with Senate Republican leader Bob Dole of Kansas and more than a dozen others. “This is a world market opening initiative.”

“The Gephardt amendment contained in the House bill is a monstrosity,” said Dole, another presidential candidate. “What we have here is an alternative to Gephardt--not a son or a cousin or a stepchild.”

Unlike the Gephardt amendment, which requires dollar-for-dollar U.S. retaliation against trading partners that have excess and unwarranted trade surpluses built partly on unfair trade practices, the Senate amendment takes a different, less forceful approach.