[Weekly Compilation of Presidential Documents Volume 29, Number 50 (Monday, December 20, 1993)]
[Pages 2600-2603]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
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

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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 
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

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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 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,

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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.