Although AWPA's 1999 Fall Meeting had one main theme throughout the two-day meeting -
the pending 201 Trade Case on imported steel wire rod - the General Session featured top names
from diverse political and Administration arenas.
Opening the session was Ronald Lorentzen, USTR Director for WTO Industrial Issues,
who briefed the audience on what to expect from the upcoming trade ministerial conference being held in Seattle at the end of November. "The overall goals of the Clinton Administration are to issue invitations to other countries to join the World Trade Organization (WTO) and display to them a positive trade message," he informed the audience.
Mr. Lorentzen clarified that the agenda for the ministerial is not yet complete. One
conflict: whether to include anti-dumping rules as a negotiating subject. The US is not inclined to have this issue on the agenda. However, other countries, such as Colombia and Egypt, are arguing for its inclusion. Another problem is the belief among developing nations that their compliance requirements following the Uruguay Round of negotiations were extremely difficult to meet. "The US has asked them for specific problems to be addressed in Seattle, but not general ones," the speaker added.
In answer to a question about the "Buy America Act", Mr. Lorentzen concurred that
government procurement rules are quite complex, especially because they are not universal among
signatory nations. Only about 25 - 30 countries have signed the government procurement agreement
that provides non-discrimination treatment to suppliers, with some exceptions (including the
Buy America Act and small or minority-owned businesses). He agreed that this has become a
heated political issue.
Administration officials want to revise the agreement. "But only if we can get more access to international markets," he advised, "can we go back to Congress and ask them to look at the Buy America Act again." Mr. Lorentzen concluded, "We have to tread carefully on this issue and obtain enough lucrative international prospects in order to convince the Congress."
On the legislative front, the AWPA members heard from Philip Crane (R-IL), Chairman of
the House Subcommittee on Trade, who serves as one of the official advisors to US delegations
concerning international conferences, meetings and negotiation sessions relating to trade agreements. The Congressman opened with his declaration that he was not too optimistic about the outcome of the section 201 steel trade case for wire producers, considering past decisions made by this Administration.
Mr. Crane moved on to discuss his subcommittee's agenda for the next year. Topping the
priority list is China's accession to the WTO - the most urgent matter in his view. He added that the Clinton Administration had missed a golden opportunity to accomplish this in April when
presented with an acceptable offer from the Chinese government and before the Chinese embassy in
Belgrade was bombed. The Illinois Republican concluded that WTO accession requires Congress to
give China permanent Normal Trade Relations (NTR) status, which will not be accomplished before
the end of this Congressional session. However, the Chairman believes this vote could be expedited in the spring.
The WTO ministerial overall is also important to the Trade Subcommittee members, who
are planning to attend the opening event at the end of November. Their goals include: an improvement in dispute resolution; an advancement in areas guaranteeing better agreements on certain products; and, most importantly, getting all countries to recognize the need to meet international standards, especially developing nations. Mr. Crane believes that "we have a good opportunity to move our agenda forward in Seattle."
Among the other priorities is the Africa Free Trade Bill, which passed the House in a
bipartisan manner. "It is now being massaged in the Senate, where likely amendments include: the Caribbean Basin Initiative (CBI), General System of Preferences (GSP), and Trade Adjustment Assistance," he stated. However, the fear is that the Senate will also tack on protectionist language for the textile industry (see Legislative Update for more details).
Overall, international trade accounts for one-third of our economy, and continues to be
its fastest growing component. "It is essential to our national interest to continue free trade," the Chairman advised the audience. Yet Americans don't understand its importance, which is "why the steel quota bill got approved." Mr. Crane suggested that employers should better communicate the importance of free trade to their employees.
The Chairman ended with this hope: "Trade legislation historically has been bipartisan, and I hope this practice is preserved."
Rounding out the program was Jack Germond, political analyst and newspaperman. His take
on the next election: The Republicans lack a coherent message, and the Senate Majority Leader
Trent Lott (R-MS) has no feel for what is important to the public. The leader of the House - J.
Dennis Hastert (R-IL) - has not been able to lead due to the very slim majority enjoyed by his party, coupled with his weak personality. He prophesied that nothing major would get accomplished during this congress.
As for the presidential elections, in his opinion, George W. Bush and Senator John McCain
(R-AZ) are the only two viable Republican candidates. Their primary problem is Pat Buchanan
making a run as a Reform Party candidate.
On the other side of the aisle, Vice President Gore has high negative ratings and gets no
credit for what he has been able to accomplish over the last seven years. He also is falling victim to the "Clinton fatigue" among Americans. Bill Bradley, his only party competitor, comes to the race with great assets. He is self-confident and appears to the public as "outside the beltway." Democrats are finding virtues in him - partly because they simply do not want Gore.
At this early juncture, Mr. Germond did not predict how the elections would turn out. But
one thing is certain - many races will prove to go down to the wire.
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American Wire Producers Association
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Alexandria, VA 22314-1757
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