The Fabric of Greed

At the top of the agenda for the U.S. Senate when it reconvenes Wednesday is the mischievous, protectionist Textile and Apparel Trade Act that was passed a year ago by the House. The sponsors hope that election fever will help them to a victory that has been denied twice before. We take comfort from the fact that President Reagan stands ready once again with his veto.

In any circumstances the measure would be unacceptable. It would roll back quotas to 1986 levels in 185 categories of textiles and apparel, and then would permit an annual increase of only 1%. It would freeze imports in 15 categories of shoes at 1986 levels. These provisions would breach carefully negotiated agreements with key trading partners, betraying the integrity of the United States.

“It would hurt U.S. consumers, provoke retaliation against U.S. exports, violate our international obligations and undermine our efforts to obtain a more open trading system for U.S. exports,” according to a letter sent Aug. 5 to the Senate from Clayton K. Yeutter, U.S. trade representative, and six members of the Cabinet, including Secretary of State George P. Shultz. We agree.

The greed of the sponsors is evident, for the measure would vastly expand already extreme protections now in place--protections that have helped the industry to increase its production and employment in each of the last three years. This makes all the more perplexing the willingness of so many members of Congress to vote for legislation that would impose a burden on consumers estimated at $25 billion in increased costs of textiles and apparel over the next five years.

Even more mischief is anticipated when the Senate takes up the bill. An amendment is to be introduced to try to attract more support by offering concessions to nations that are major buyers of American farm exports. But the proposals would erase only a portion of the punishing new quotas for those nations, leaving American farmers exposed to the increased risk of retaliation against their exports while further disrupting efforts to liberalize trade.

The textile-and-apparel legislation would deal a crippling blow to the two most important trade proposals of the decade--the new round of negotiations on the General Agreement on Tariffs and542405217U.S.-Canada free-trade agreement nearing final action in Congress.

Nevertheless, the sponsors appear to have captured at least a majority in the Senate for the passage of the legislation--apparently a careless response to a special interest that needs no rescue. The question then will be whether the victory margin can provide an override of a Reagan veto. In the House last year the margin was 263 to 156, almost 30 votes short of the two-thirds required for an override. Since then the U.S. trade balance has improved and the textile industry has continued to prosper. But that is no guarantee of reason in an election-year atmosphere that enhances the power of the special interests.