Changing Mood

A new mood is developing in Congress on the trade issue. There is evidence of a welcome retreat from the destructive protectionism so actively pushed just last year. There is a growing bipartisan effort to move ahead with constructive trade-promotion legislation .

The bill introduced Thursday in the Senate with the sponsorship of 54 members, both Republican and Democratic, has none of the counterproductive elements that haunted some of the extreme proposals sponsored last year by Democrats. Gone are proposals for automatic retaliation, mandatory tariffs against nations with disproportionate trade surpluses, and targeted protections and other benefits for such industries as shoes, steel and textiles.

One innovation of the Senate bill is the authority to expedite unfair-trading actions, seeking prompter relief for American companies affected by foreign subsidies and dumping--that is, selling in foreign markets below cost. Existing legislation provides adequate authority to protect Americans from these practices. The issue essentially comes down to sharp differences over how the existing authority is used, with congressional critics seeking to force harsher and faster actions on the part of the executive branch of government. The new proposal could result in unwelcome distortions, for few trade disputes are simple. But a virtue of the Senate legislation is the inclusion of a requirement that industries seeking protection from unfair practices be required to adjust their own practices to demonstrate their productivity and ability to compete.

There remains in the House of Representatives staunch support for the punitive approach to trade exhibited in bills last year. Unfortunately, that approach enjoys the support of the new Speaker, Rep. Jim Wright (D-Tex.). And there remains on Capitol Hill strong support for agricultural-export subsidies that already risk grave disruptions in world trade. But there is evidence that support for simplistic solutions is waning and that bipartisan support of a more constructive approach will prove possible even in the House .

Last year’s trade deficit of $170 billion was a record. Evidence suggests that it will decline this year. The reduced value of the dollar against the principal foreign currencies will contribute to that adjustment. So will the new spirit of competitiveness that is being exhibited by some American entrepreneurs. What will really count in the long run, however, is what emerges from the forthcoming new round of talks on the General Agreement on Tariffs and Trade. The absolute priority for Congress is to see that this country enters those negotiations armed with the ultimate weapon--an extension of fast-track negotiating authority. Under that authority, Congress has only a yes or no vote on emerging agreements, and cannot nibble them to death through item-by-item amendments.

President Reagan has played an important role in maintaining the American commitment to free trade. This is not an easy political assignment, for most of the gains are long-term, sometimes overlooked in the preoccupation with short-term problems. Further, while there is no alternative to free trade, neither is there an easy way to meet the new competition implicit in free trade. Both Congress and the President need to make those painful short-term adjustments understandable along with the long-term benefits.