    [Public Papers of the Presidents of the United States: William J. Clinton (1993, Book II)]
    [December 15, 1993]
    [Pages 2180-2182]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Letter to Congressional Leaders on the General Agreement on Tariffs and
    Trade
    December 15, 1993

    Dear Mr. Speaker:  (Dear Mr. President:)
        I believe that we have created a unique opportunity to build an
    international trading system that will ensure the orderly and equitable
    expansion of world trade and contribute to the prosperity of the United
    States in coming generations. After seven long years the conclusion of
    the Uruguay Round of multilateral trade negotiations is at hand. The
    Round will result in the largest, most comprehensive set of trade
    agreements in history. With the conclusion of the Round, we will have
    successfully achieved the objectives that Congress set for the United
    States in the negotiations.
        In accordance with section 1103(a)(1) of the Omnibus Trade and
    Competitiveness Act of 1988, as amended (``Act''), I am pleased to
    notify the House of Representatives and the Senate of my intent to enter
    into the trade agreements resulting from the Uruguay Round of
    multilateral trade negotiations under the auspices of the General
    Agreement on Tariffs and Trade. These agreements are listed and
    identified below and are more fully described in an attachment to this
    letter.
        The United States can and must compete in the global economy. In
    many areas of economic activity we are already world leaders and we are
    taking measures at home to strengthen further our ability to compete. In
    section 1101 of the Act the Congress set as the first overall U.S.
    negotiating objectives for the Uruguay Round more open, equitable and
    reciprocal market access. I am particularly pleased to advise you that
    the Uruguay Round results will provide an unprecedented level of new
    market access opportunities for U.S. goods and services exports. In the
    attachment to this letter is a summary description of the agreements on
    market access for goods and services that we have achieved in the Round.
    Of special note are the number of areas where we and our major trading
    partners have each agreed to reduce tariffs on goods to zero. The
    schedules of commitments reflecting market access in services cover a
    wide range of service sectors that are of great interest to our
    exporting community.
        The Agreement on Agriculture will achieve, as Congress directed,
    more open and fair conditions of trade in agricultural commodities by
    establishing specific commitments to reduce foreign export subsidies,
    tariffs and non-tariff barriers and internal supports.
        The Agreement on Textiles and Clothing provides for trade in
    textiles and apparel to be fully integrated into the GATT for the first
    time. As a result, trade in textiles will be subject to the same
    disciplines as other sectors. This transition will take place gradually
    over an extended period. At the same time, the agreement provides an
    improved safeguards mechanism. It also requires apparel exporting
    countries to lower specific tariff and non-tariff barriers, providing
    new market opportunities for U.S. exporters of textile and apparel
    goods. The agreement contributes to the achievement of the U.S.
    negotiating objectives of expanding the coverage of the GATT while
    getting developing countries to provide reciprocal benefits.
        In fulfillment of the second overall U.S. negotiating objective, the
    reduction or elimination of barriers and other trade-distorting policies

    [[Page 2181]]

    and practices, the Uruguay Round package includes a number of agreements
    to reduce or eliminate non-tariff barriers to trade. These agreements,
    which are described in the attachment, address Safeguards, Antidumping,
    Subsidies and Countervailing Measures, Trade-Related Investment
    Measures, Import Licensing Procedures, Customs Valuation, Preshipment
    Inspection, Rules of Origin, Technical Barriers to Trade, and Sanitary
    and Phytosanitary Measures. The agreements strengthen existing GATT
    rules and, for the first time in the GATT, discipline non-tariff
    barriers in the areas of investment, rules of origin and preshipment
    inspection. The agreements preserve the ability of the United States to
    impose measures necessary to protect the health and safety of our
    citizens and our environment and to enforce vigorously our laws on
    unfair trade practices.
        The Agreement on Government Procurement will provide new
    opportunities for U.S. exporters as a result of the decision to expand
    the coverage of the agreement to government procurement of services and
    construction; we will, however, only extend the full benefits of the
    agreement to those countries that provide satisfactory coverage of their
    own procurement. Negotiations on improvements in the Agreement on Trade
    in Civil Aircraft and on a Multilateral Steel Agreement are continuing.
    These agreements should provide for more effective disciplines and
    reduce or eliminate trade-distorting policies and practices in two
    industries of importance to our economy. I will fully consult with the
    Congress throughout these negotiations, and plan to enter into these
    agreements if the negotiations produce results that are acceptable to
    the United States.
        As a result of the Agreement on Trade-Related Intellectual Property
    Rights (TRIPS) and the General Agreement on Trade in Services (GATS), we
    will now have for the first time internationally agreed rules covering
    areas of trade of enormous importance to the United States. These
    agreements represent a major step forward in establishing a more
    effective system of international trading disciplines and procedures.
    GATS contains legally enforceable provisions dealing with both cross-
    border trade and investment in services and sectoral annexes on
    financial services, labor movement, telecommunications and aviation
    services. More than 50 countries have submitted schedules of commitments
    on market access for services. The TRIPS agreement provides for the
    establishment of standards for the protection of a full range of
    intellectual property rights and for the enforcement of those standards
    both internationally and at the border.
        The Uruguay Round has produced a number of other agreements that
    will create a more effective system of international trading disciplines
    and procedures.
        The Understanding on Rules and Procedures Governing the Settlement
    of Disputes will provide for a more effective and expeditious dispute
    resolution mechanism and procedures which will enable better enforcement
    of United States rights. Congress identified the establishment of such a
    system as the first principal U.S. trade negotiating objective for the
    Round. The procedures complement U.S. laws for dealing with foreign
    unfair trade practices such as section 301 of the Trade Act of 1974.
        The Agreement Establishing the World Trade Organization will
    facilitate the implementation of the trade agreements reached in the
    Uruguay Round by bringing them under one institutional umbrella,
    requiring full participation of all countries in the new trading system
    and providing a permanent forum to address new issues facing the
    international trading system. The WTO text recognizes the importance of
    protecting the environment while expanding world trade; negotiators have
    also agreed to develop a work program on trade and the environment and
    will recommend an appropriate institutional structure to carry out this
    work program. Creation of the WTO will contribute to the achievement of
    the second principal U.S. negotiating objective of improving the
    operation of the GATT and multilateral trade agreements.
        The U.S. objective of improving the operation of the GATT is also
    furthered by a number of understandings, decisions and declarations
    regarding the GATT and its operations. The Trade Policy Review Mechanism
    will enhance surveillance of members' trade policies. The Understandings
    Concerning Interpretation of Specific Articles of the General Agreement
    on Tariffs and Trade 1994 (GATT 1994) concern the Interpretation of
    Articles II:1(b), XVII, XXIV, XXVIII and XXXV, and Balance-of-Payments
    Provisions. There is also an Understanding in Respect of Waivers of
    Obligations Under the General Agreement on Tariffs and Trade 1994.
        The Ministerial Decisions and Declarations state the views and
    objectives of Uruguay Round

    [[Page 2182]]

    participants on a number of issues relating to the operation of the
    global trading system, provide for the continuation of the improvements
    to the dispute settlement system that became effective in 1989 and deal
    with other matters concerning the dispute settlement system. The
    Ministerial Decisions and Declarations that are now proposed for
    adoption are described in the attachment. At this time, implementing
    legislation does not appear to be necessary for these instruments.
        I will continue to consult closely with the Congress as we conclude
    the Round. There are a few areas of significance that we were unable to
    resolve at this time. In order to ensure more open, equitable and
    reciprocal market access, in certain agreements we have made U.S.
    obligations contingent on receiving satisfactory commitments from other
    countries, and we will continue to work to ensure that the best possible
    agreement for the United States is achieved. I will not enter into any
    agreement unless I am satisfied that U.S. interest are protected. With
    regard to entertainment issues, we were unable to overcome our
    differences with our major trading partners, and we agreed to disagree.
    We will continue to negotiate, however, and until we reach a
    satisfactory agreement, we think we can best advance the interests of
    our entertainment industry by reserving all our legal rights to respond
    to policies that discriminate in these areas.
        In accordance with the procedures in the Act, the United States will
    not enter into the agreements outlined above until April 15, 1994. After
    the agreements have been signed, they will be submitted for
    Congressional approval, together with whatever legislation and
    administrative actions may be necessary or appropriate to implement the
    agreements in the United States. The agreements will not take effect
    with respect to the United States, and will have no domestic legal
    force, until the Congress has approved them and enacted any appropriate
    implementing legislation.
        Sincerely,

                                                          William J. Clinton

    Note: Identical letters were sent to Thomas S. Foley, Speaker of the
    House of Representatives, and Albert Gore, Jr., President of the Senate.
    This letter was released by the Office of the Press Secretary on
    December 16.