U.S.-Israel FTA Accord Seems to Be Headed Toward Congressional Approval

The recently concluded U.S.Israel Free Trade Area (FTA) agreement appeared today to be headed toward its expected swift congressional approval, as the Senate Finance Committee rejected proposed amendments to the pact.

Having turned down three minor technical modifications, the Committee voted to begin consultations with the House and Administration on preparing legislation in support of the pact initialled by Israel and the U.S. earlier this month.

The FTA provides for the gradual elimination by both the U.S. and Israel of tariffs on goods traded between them. According to the pact, duties on items regarded as sensitive to import competition will be phased out more slowly than others, with all tariffs and other trade barriers to be eliminated within 10 years.

Although Congress has already given its approval to conclude the agreement in principle, through its passage of the Tariff and Trade Act of 1984, the pact itself must be approved by both Houses of Congress once final legislation is formerly introduced by the President.

The 1984 legislation also stipulates that the agreement would be considered for approval by Congress on a expedited basis. It was this pledge to "fast track" the President’s bill through Congress that provided the justification for the Committee’s refusal to introduce amendments suggested today, including one by Committee chairman Robert Packwood (R. Ore.)

Packwood’s amendment would have authorized the President to phase out tariffs on all goods within 10 years in accordance with the agreement. The President’s version excludes certain import sensitive items leaving them to subsequent approval by Congress. The House Ways and Means Committee has already adopted a similar amendment to the one proposed by Packwood.

The clear indication given by the majority of Committee members, that they would reject any change that might delay the final drafting and approval of the bill, caused some resentment on the part of those seeking more extensive debate of the agreement that might address concern about the American textile and footwear industries in particular, and the timing for Israel’s phasing out subsidies on export goods.

If the understanding is that no amendment can be made, George Mitchell (D. Me.) who introduced one of the amendments told the Committee, "then the consultation process of this committee is annulled, it’s a charade, it’s a farce." But Packwood also defended the swift consideration of the pact, saying it was keeping with the Congressional premise to fast-track the bill.

Although some compromise is expected on the exact wording of the bill to be formally introduced by the President, a staff member of the Senate Finance Committee said the agreement was virtually guaranteed swift Congressional approval.