FOR IMMEDIATE RELEASE Press Release #105-187
October 1, 1997

COMMITTEE APPROVES FAST TRACK TRADING AUTHORITY
CBI Parity, ISTEA Revenue Measures Also Approved

WASHINGTON -- The Senate Finance Committee today gave bipartisan approval to legislation critical for the U.S. to negotiate trade agreements.

"Fast track trading authority is critically important to America. It is important to our economy and to American businesses because it opens up more markets for U.S. goods and services. It is also good for American consumers because by knocking down trade barriers, it keeps prices from being artificially inflated," Chairman Roth stated. "The legislation the committee approved today will give the President the authority he needs to negotiate with our trading partners, while ensuring that Congress' voice is heard."

"Fast track" trading authority is a procedure for implementing trade agreements that gives the President and U.S. trading partners the assurance that a final trade agreement requiring changes in U.S. law would not be subject to Congressional amendment, while still preserving Congress' constitutional role in the regulation of foreign commerce. Fast track procedures were first introduced in 1974, and were renewed in 1979 and 1988. Fast track authority has been used on five occasions, including in implementation of the Uruguay Round in 1994. The fast track procedures lapsed at the end of 1994, and have not been renewed since that time.

"Agreements that lower tariffs and other non-tariff trade barriers would continue to receive fast track procedure as in the past under legislation approved today by the Committee. However, the legislation makes it clear that agreements modifying U.S. labor and environmental laws would not be subject to the fast track procedure," Roth stated.

The legislation reported out of the Finance Committee today was authored by Chairman William V. Roth, Jr. All members of the Committee, Democrats and

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Republicans, as well as the Administration, were consulted in the drafting of the legislation. The Committee has held two hearings on the issue.

CBI:

The Committee also approved legislation expanding the Caribbean Basin Initiative by providing for additional tariff preferences on a number of products not previously covered by the program. Those benefits are conditioned on the eligible beneficiary countries' trade policies, their participation and cooperation in the Free Trade Agreement of the Americas initiative and other factors.

ISTEA:

The Committee approved the revenue provisions relating to the reauthorizing legislation for ISTEA, which authorizes funds for the construction of highways and mass transit. The committee extended the present highway trust fund excise taxes six years to match up with the six year authorization bill.

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A list of modifications to the discussion draft of each of the three bills is attached.