Trade Bill Aiding Third-World Nations Sails Through House

WASHINGTON —  The House passed legislation Thursday easing trade barriers for impoverished nations in Africa, Central America and the Caribbean, a vote some advocates cheered as a favorable prelude to congressional action on the pending China trade bill.

The passage, by a 309 to 110 margin, culminated months of negotiations to iron out differences between competing bills passed last year by the House and the Senate. It is expected to speed through the Senate next week and be signed by President Clinton soon afterward, becoming the first notable trade measure enacted in more than five years.

Free-trade advocates said the bill’s success should help the pending measure to grant China permanent, normal trade ties, an issue the House takes up later this month.

John Czwartacki, spokesman for Senate Majority Leader Trent Lott (R-Miss.), said the action on the bill sends a “strong signal” that there are “big majorities in this Congress that are pro-trade. . . .”

On a day when trade politics dominated Capitol Hill, 10 previously undeclared House lawmakers--six Democrats and four Republicans--announced they would support the China trade bill. Two Democrats announced they would oppose it.

The outcome of the China bill remains uncertain. But the 10 endorsements were a sign of growing momentum behind the bid, backed by Clinton, to engage China through expanded trade as the world’s most populous nation prepares to join the World Trade Organization.

Even though the bill on African, Central American and Caribbean trade would have a relatively modest economic impact on the United States--and consequently has drawn far less attention than the China proposal--it means a great deal to dozens of developing countries that have been clamoring for improved access to U.S. consumers.

Under the bill, 48 nations in the three regions would enjoy greater access to U.S. markets for clothing and other products as part of an attempt to spur economic growth, free-market policies and democratic institutions in those countries.

The bill’s backers say Central American and Caribbean countries, many devastated by hurricanes in recent years, would get a trade boost similar to benefits Mexico has enjoyed under the North American Free Trade Agreement. For instance, El Salvador officials estimate the bill could help create 100,000 new apparel industry jobs over the next few years in that country and generate billions of dollars’ worth of new exports.

As with all trade pacts, the bill’s details were closely scrutinized by special interests, including organized labor and the U.S. garment and textile industries, which sought to protect U.S. jobs. Those forces, led by lawmakers from Southeastern states, were able to limit the bill’s scope.

The measure would remove duties and quotas on apparel exports from sub-Saharan Africa made of U.S. yarn and fabric. But those trade benefits would be held to certain caps when the yarn and fabric comes from elsewhere.

Provisions dealing with the Caribbean included other limitations meant to encourage clothing manufacturers in that region to use U.S. yarn and fabric.

Lawmakers who brokered the final version blocked a controversial amendment by Sen. Dianne Feinstein (D-Calif.) to promote the availability of AIDS drugs in Africa.

An unusual coalition propelled the bill, including many Democrats in the Congressional Black Caucus who are among the House’s most liberal members and free-trade Republicans who are among the most conservative. Both groups called the measure a step to help poor nations help themselves.

Rep. Ed Royce (R-Fullerton), a co-sponsor, said the bill would demonstrate “that the world’s most powerful economy has serious interests in Africa’s economic development.”

Royce and Rep. Mary Bono (R-Palm Springs) were among the Republicans who announced Thursday they would support the China trade bill.