WATCHING GOVERNMENT NAFTA ISSUE HEATS UP

With Patrick Crow from Washington, D.C. Nafta fever is sweeping Washington. The House of Representatives will vote this week on the North American Free Trade Agreement, and it appears the vote will be close. Across Washington last week, a half dozen or more press conferences were called daily regarding Nafta. In the hallways of the House office buildings, people could be seen everywhere wearing pro or anti-Nafta buttons. As Rep. Gerry Studds (D-Mass.) noted, "The debate has been heated, the

Nov. 15, 1993

3 min read

Nafta fever is sweeping Washington.

The House of Representatives will vote this week on the North American Free Trade Agreement, and it appears the vote will be close.

Across Washington last week, a half dozen or more press conferences were called daily regarding Nafta.

In the hallways of the House office buildings, people could be seen everywhere wearing pro or anti-Nafta buttons.

As Rep. Gerry Studds (D-Mass.) noted, "The debate has been heated, the lobbying frenetic, the rhetoric-on occasion-bordering on the vituperative."

PRESIDENTIAL PUSH

All that really counts is whether the administration can muster the votes of 218 congressmen, the minimum needed to pass the three way pact among the U.S., Canada, and Mexico.

President Clinton launched a lobbying blitz to secure that number, and at last count was at least a couple dozen short.

The all-out struggle was reminiscent of Clinton's fight to pass the budget deficit reduction bill earlier this year. The president narrowly won that battle after making a number of promises to individual congressmen. Because he has the means to secure Nafta votes in a similar manner, and labor unions and environmental groups who oppose Nafta do not, it would seem Clinton can win.

An indication of how desperate the struggle is in the House is the fact that when the merchant marine committee called a hearing on Nafta last week-at least a dozen congressmen on the panel were undecided on the agreement-no less than three cabinet level officials showed up to testify.

Environmental Protection Agency Administrator Carol Browner and Interior Sec. Bruce Babbitt noted Nafta is an important precedent in efforts to reconcile the relationship between trade and environment and would do much to remove pollution along the U.S.-Mexican border.

U.S. Trade Rep. Mickey Kantor said, "Nafta levels a playing field that is now tilted against us. Over time it will eliminate tariffs and trade barriers between the U.S., Mexico, and Canada. Mexico and Canada will give our products preferential treatment compared to our competitors."

INDUSTRY BACKING

The oil industry remains solidly behind Nafta, with service and supply firms being the most enthusiastic.

Last week the Domestic Petroleum Council (DPC), consisting of 22 large independent oil and gas producers, weighed in.

DPC said Nafta would open doors for U.S. gas exports to Mexico and allow energy and service companies to negotiate performance based contracts with Mexico.

"From an energy perspective, DPC believes Nafta to be an important step toward a truly open energy market in the Americas," the council said. "While unique political, legal, and cultural factors may have led to a less than ideal energy section (in the pact), we are optimistic that Nafta will open doors for improved opportunities for participation by U.S. energy firms with their Mexican counterparts."