The continuing importance of trade liberalization.

A major initiative of the Clinton administration is to promote free trade. Renewing the President's authority to negotiate trade agreements on a "fast track " basis is an important step to achieve this goal. This paper demonstrates why we need fast track authority today and what are the benefits

The Basic Goals of the Clinton administration's economic policies are simple and uncontroversial: to secure rising living standards now and in the future, and to ensure that the benefits of a rising standard of living are extended to all Americans. To attain these ends, the administration's economic agenda has been based on three key policy initiatives: deficit reduction, investing in people through education and training, and opening markets worldwide to U.S. goods and services.

This third initiative -- promoting free and fair trade -- is the focus of this paper. From his first days in office, President Clinton has advocated an outward-looking, "internationalist" trade policy. During the first four years of the Clinton administration, over 200 trade agreements were ratified and implemented, some relatively large in scope, such as NAFTA and the Uruguay Round of GATT. Others were relatively small, but all were vital to our nation's competitive future. President Clinton intends to extend and build upon this record during the administration's next four years.

FAST TRACK AUTHORITY

The single most important next step in the administration's effort to open markets abroad and expand trade is for Congress to renew the President's authority to negotiate trade agreements on a "fast track" basis. The President recently announced his intention to send to Congress legislation that would renew his fast-track authority. This so-called "fast-track authority" allows the President to negotiate trade agreements with other countries, and then requires Congress to take an "up or down" vote on the entire agreement. Congress cannot in effect reopen negotiations by adding or deleting individual provisions of a trade agreement by amendment during Congressional debate. Instead, Congress must vote on the agreement as a whole. Of course, the final decision as to whether the trade agreement in its entirety is approved or disapproved is still in the hands of Congress. Fast-track authority simply allows the President to seek approval or disapproval for the agreement as a whole.