    [Weekly Compilation of Presidential Documents Volume 30, Number 19 (Monday, May 16, 1994)]
    [Pages 1050-1051]
    [Online from the Government Publishing Office, www.gpo.gov]

    <R04>
    Remarks to the Advisory Committee on Trade Policy and Negotiations

    May 10, 1994

        Thank you for being here and thank you for that warm welcome. As all
    of you know, this is the first meeting of our Advisory Committee on
    Trade Policy and Negotiations and the Intergovernmental and Policy
    Advisory Committee.
        There are a lot of people in this room with whom I have worked for
    many years on a wide variety of issues, especially on the economy. I am
    pleased with where we are going. You may know the blue chip forecast
    came out today, saying that there is no sign of inflation in the economy
    this year and next year and predicting a growth rate in the range of 3.5
    percent this year, which means a continued effort to create jobs and
    move our economy forward. In the last 15 months or so, our economy has
    produced about 3 million jobs, most of them in the private sector, which
    is a real departure in terms of the percentage of new jobs in the
    private sector from the last few years, a million jobs in the first 4
    months of this year, over a quarter of a million in April alone.
        So, I'm encouraged about the direction in which we are going. The
    Congress is moving rapidly to adopt the budget that I sent up which, if
    adopted as it is, will eliminate 100 programs, cut 200 more, still save
    some new money for education and training, for Head Start, for new
    technologies, for medical research, but represent the first overall
    reduction in domestic discretionary spending since 1969. And it will
    produce the first 3 years of declining deficits since Harry Truman was
    President if this budget passes.
        So I think we are moving in the right direction. But we all know we
    have to do more to try to spark global economic growth and to spark
    growth in our country from global economic affairs. Last year we had
    NAFTA, we had APEC meeting, we had an export policy which involved
    removing any number of items from export controls which had previously
    been placed on them during the cold war. And we've continued that work
    in this year.
        But the most important thing we can do this year, plainly, if we
    want to create hundreds of thousands of high-paying jobs in America, is
    for Congress to ratify the GATT agreement. The Uruguay round cuts
    tariffs by over a third on manufactured products. Three-quarters of the
    world's trade growth over the next decade will come from the developing
    world, and GATT is expanded to cover things that it formerly has not
    covered, including intellectual property and services. We have got to
    adopt the GATT in the Congress this year.
        This is about exports and jobs. It's also about our leadership in
    the world. We broke 7 years of global gridlock last year to get this

    [[Page 1051]]

    GATT agreement, and we've proved that we can do things finally around
    here that haven't been done in the past. It took 7 years to pass the
    Brady bill, but we did it after 7 years; 7 years for the family and
    medical leave bill. This crime bill has been hanging around here for 5
    years; it's going to be better and stronger than any crime bill we've
    ever passed, thanks in no small measure to the courage of the House last
    week in adopting the assault weapons ban. The GATT was around for 7
    years. So we're trying, this administration is, to earn a reputation for
    breaking gridlock at home and around the world. We cannot be the only
    nation not to ratify the GATT this year.
        Now, the problem is our trading partners are just now beginning to
    understand it's harder for us to do than it is for other countries
    because we operate under budget rules which require us to replace all
    the tariffs that we lower and give us no credit for the increased
    economic activity that will plainly flow and which will generate more
    tax revenues. The only thing that we can count is the reduced direct
    spending and agricultural subsidies that will come if we ratify the
    GATT.
        So our economic team, Dr. Tyson and Mr. Rubin and Mickey Kantor and
    the Treasury Department, and Mr. OMB--they've all been sort of splitting
    their heads trying to figure out how to get this done this year, because
    we estimate that over a 5-year period tariffs will be reduced by in the
    range of $14 billion. And we have to figure out how to replace that. We
    are working very hard to do it.
        But GATT will only pass if there is an American effort to pass it
    that is bipartisan, that is reasonable, that is credible, and that is
    consistent. And so I wanted to come here today to say to you, we need
    your help. We need all of your help. We're moving to restore a measure
    of global growth. We are beginning to get good predictions out of
    Europe, a lot of people thinking that Europe is beginning to turn
    around. I am very hopeful--I had a nice conversation with the new
    Japanese Prime Minister yesterday--I am very hopeful that through our
    efforts, and we have a good relationship, we will be able to resume our
    trade talks and continue to make progress there, and they'll be able to
    get some growth back into their economy.
        But we have to continue to set the standard. People know that our
    economy is functioning at a higher level than many of our trading
    partners. They expect us to take the lead. And even though this is
    harder for us than it is for our partners, we've got to try to find a
    way to do it. I am convinced we can do it, just like we did with NAFTA,
    if, but only if, there is a bipartisan effort and if there is a
    business-government-labor effort and if there is a State, local, and
    national effort. If it is broadbased, if it is deep, and if it is real,
    and if it is constant, we can do this.
        But I really need your help if we're going to do it. And I hope you
    will resolve to make sure that we do achieve this so that we can go on
    to other areas. But it's a good agreement. It's good for America. And it
    will be a real shame if we walk away from it. Besides that, we need to
    keep our record of breaking gridlock going. I'm depending on you to
    help.
        Thank you very much.

    Note: The President spoke at 2:20 p.m. in the Indian Treaty Room of the
    Old Executive Office Building. A tape was not available for verification
    of the content of these remarks.