Guest Opinion
Journal of Commerce
September 19, 1997

Who needs fast track?

BY LORI WALLACH

The Clinton administration's bill to establish a new grant of
"fast track" trade authority constrains a president's ability to
address environmental and labor issues until 2004.

Given the Democratic congressional demand that the
president require environmental and labor clauses in future
trade pacts, the limitations in this proposal are a harsh slap
in the Democrats' face.

Yet the entire discussion about what is the best process for
negotiation and ratification of future trade pacts is being
lost in a battle over this series of retrograde modifications
to the old fast-track language. This narrow debate misses
the point. Fast track concerns how Congress will consider
trade agreements, not whether the administration has
authority to negotiate. The executive branch has such
authority right now under its standing constitutional
capacity. This authority has been granted in 10-year
chunks since the 1934 Tariffs Act and was most recently
extended via the 1994 General Agreement on Tariffs and
Trade's Uruguay Round, implementing legislation on into
the next century.

Indeed, as U.S. Trade Representative Charlene
Barshefsky brags so often, the Clinton administration has
completed over 200 trade agreements in recent years. Fast
track has been used only five times in its entire existence
since 1974 and this administration has used it only twice.
All the Japanese sectoral agreements and much-touted
Multilateral Information Technology and
Telecommunications Agreements have all been negotiated
and implemented without fast-track procedures. The nearly
completed, immensely complicated Multilateral Agreement
on Investment, negotiated entirely during a period with no
fast track, makes a mockery out of the claim that no
country will negotiate to obtain market access to the
world's largest consumer market unless fast track exists.

Under fast track, Congress agrees in advance to no
amendments, limited debate and a vote within 60 days of
the administration's delivery of the legislation it writes. The
closest thing to such extreme congressional constraints is
the budget process, which guarantees a closed vote at the
end, but provides Congress a role in writing the bill that will
come to the floor.

When fast track was hatched in 1973 by President Nixon,
it was to facilitate congressional consideration of Tokyo
Round changes in customs classification, a non-binding
agreement on technical barriers and anti-dumping changes.

Yet, today's international commercial pacts have expanded
into issues like food safety, the size and weights of trucks
on U.S. highways, how local tax dollars can be used and
domestic banking and development law.

The administration and the Republicans in Congress have
settled on an early 1997 proposal which further limits
fast-track coverage to labor and environmental matters that
1. are "directly related to" trade, and 2. that decrease
market opportunities for U.S. exports.

The language of the proposal is clever. It puts the words
"environment" and "labor" into a fast-track bill. However,
as the Congressional Research Service noted, it actually
limits what labor and environmental issues could be
covered in the current fast track.

Indeed, even the ineffective environmental and labor Nafta
side-agreements would not be covered under the "directly
related to" language. This in part reveals why business
interests opposed to the side pacts want the subtle
stringencies of the "directly related to" language.

The Clinton administration proposal also relegates to the
WTO any future "review of the relationship of" trade to
environment or labor. Yet last December, a WTO
ministerial declaration announced that WTO would not
deal with labor. The WTO's "environmental" working
group has accomplished nothing for the past three years.

Congress should delegate its exclusive constitutional
authority for international commerce to the executive
branch only through a trade negotiating authority that
produces good trade agreements. Otherwise, Congress
must accept political liability for bad ones.

Lori Wallach is director of Public Citizen's Global Trade Watch.


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