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Copyright 2000 The National Journal, Inc.  
The National Journal

MARCH 11, 2000

SECTION: ECONOMICS; Pg. 807; Vol. 32, No. 11

LENGTH: 909 words

HEADLINE: It Won't Be Pretty

BYLINE: Bruce Stokes

HIGHLIGHT:

With the push for a trade deal with China comes a rash of down-
and-dirty politicking.

BODY:


     Step right up, ladies and gentlemen. The trade bazaar is
about to open. Innocents, cover your eyes. The Clinton
Administration's decision to send legislation up to Capitol Hill
granting China permanent normal trade relations has, in a single
stroke, transformed Washington's running debate about Chinese
membership in the World Trade Organization. Say goodbye to recent
high-brow discussions about China's future in the global economy.
Get ready for down-and-dirty deal-making, as the White House
scrambles to assemble a congressional majority by its self-
imposed summer deadline.

     "Now it's all about getting them to yes," a U.S. trade
official said. The White House believes that most members of
Congress support the notion of increasing trade with China. But
the Clinton gang also realizes that many members may need a
reason-or political cover-to actually vote that way. In the weeks
ahead, the Administration must identify those hidden needs and
satisfy them: more exports from one district, for example. Or a
judgeship for someone's brother-in-law. Or campaign cash to
compensate for the loss of support from organized labor, which
opposes seating China in the WTO.

     Harbor no illusions. This will be legislative sausage-
making at its crudest. The only question is, will it work?

     Retail trade politics is hardly new. In November 1997, as
the Administration attempted to persuade Congress to pass fast-
track trade negotiating authority, Rep. David R. Obey, D-Wis.,
asked then-Appropriations Committee Chairman Bob Livingston, R-
La., during an exchange on the House floor: "Does the gentleman
know how many bridges the Administration has given away today to
pick up votes?" Livingston quipped: "This gentleman does not have
sufficient fingers to count." The moral of this little
interchange is not that congressional votes may be up for grabs
but that such efforts didn't work in this case. The White House
couldn't muster a majority, and fast-track failed.

     The Administration faces the same danger this year over
the China issue, even though Congress's vote shouldn't even be
close because the substance of the deal is so compelling. Beijing
has agreed to dramatic reductions in tariffs, to new
opportunities for American investments in China, and to new
protections against surges of exports from China.

     Based on prospective increases in Farm Belt exports to
China, the Administration is looking to the agricultural
community to deliver solid farm-state backing on the China vote.
But that support is already fraying.

     "The Chinese are in serious denial about the commitments
they have made about meat and poultry," said Nick Giordano, the
international trade counsel for the National Pork Producers
Council. "They are jeopardizing the support of the meat and
poultry industry."

     And the Administration has no latitude to sweeten the
deal. In 1993, during the Hill debate over the North American
Free Trade Agreement, the White House used congressional concerns
to extract additional concessions from Mexico. China won't play
that game. During the NAFTA skirmish, the Administration made
numerous promises to "fix" problems for wavering members of
Congress. Many on Capitol Hill remember that the White House
failed to deliver on several of those commitments.

     If you can't sway them on the substance, however, there
is always pork. Nothing catches the attention of a fence-sitting
lawmaker like the sudden interest by the Army Corps of Engineers
in a long-stalled dam or levee project.

     But this is not 1993-or even 1997. Most promises by a
lame-duck Administration are simply worthless. A President Bush
would certainly be under no obligation to honor Clinton's
pledges. Vice President Al Gore needs to remind fence-sitting
Democrats that he will be indebted to them for their votes if he
becomes President. But Gore has shown no inclination to issue
such a reminder.

     Finally, American business can promise China-backers its
support in this fall's election. But the value of such a pledge
is already in question. Moderate Democrats likely to vote for the
China legislation were shaken in early March when the U.S.
Chamber of Commerce endorsed the GOP challenger to freshman Rep.
Baron Hill, D-Ind., who supports expanded trade with China. The
decision crystallized New Democrats' worst fears-the business
community won't come to their rescue if they incur the wrath of
organized labor by voting for the China legislation.

     "We want to support those members who are with us on
trade," explained Bill Miller, the political director of the
chamber. "But if we sacrifice the business agenda for one vote,
we risk our effectiveness on a whole array of business issues."

     "That tells me that PNTR is not their No. 1 priority,"
said Rep. Robert T. Matsui, D-Calif., who favors the bill. "A
partisan House is their priority." In such an environment, the
White House won't be able to depend on traditional retail
politics to deliver a close vote. "This won't get down to one or
two votes," predicted a former U.S. trade official. Either the
momentum will be there, he implied, or the Administration will
pull the bill rather than risk failure. Let the bidding begin.

LOAD-DATE: March 13, 2000




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