WASHINGTON — In a last-ditch effort to keep a change in the rule of origin for apparel out of the Congressional recommendation for the GATT Uruguay Round implementing bill, a group of top retailers on Tuesday again wrote to members of the House and Senate, warning the proposal would disrupt trade and increase consumer prices.
The amendment, sponsored by Rep. Ben Cardin (D., Md.), would make the place where apparel is assembled the country of origin for quota purposes, shifting this determination from where the fabric is cut.
Similar letters were sent to Congressional leaders in July shortly after the proposal first emerged in the House version of the GATT bill. Another letter attacking the proposal was sent to White House chief of staff Leon Panetta in August.
The 20 executives signing the latest correspondence included National Retail Federation president Bernard F. Brennan, who also is chairman of Montgomery Ward; Donald G. Fisher, chairman, The Gap.; Arthur C. Martinez, chairman, Sears Merchandise Group; William R. Howell, chairman, J.C. Penney Co.; Allen Questrom, chairman, Federated Department Stores; Bob Ulrich, chairman, Dayton Hudson Corp.; Thomas Hays, deputy chairman, The May Department Stores Co.; Myron E. Ullman 3rd, chairman, R.H. Macy; Leslie Wexner, chairman, The Limited, and Harvey Falk, vice chairman and president, Liz Claiborne Inc.
Also on Tuesday, retailers rejected a compromise offer by Senate Republicans to delay implementation of the change for three years, a retail source said. As it stands now, the proposal would go into effect on Jan. 1, 1996. The textile community, which has pushed strenuously for the change, wants the change to be effective as soon as possible.
The rule change appears destined to remain in the Congressional recommendation, however. “Retailers will have an uphill battle on this one,” Rep. Bob Matsui (D., Calif.), acting chairman of the House Trade Subcommittee, told reporters. “It seems a wide body of the membership favors it.”
Meanwhile, the Senate sent to the House Tuesday a counteroffer on the GATT implementing bill that does not compromise on any major outstanding issues. These include the rule of apparel origin change and a broadening of trade benefits to Caribbean Basin Initiative countries, proposals that are included only in the House version of the GATT bill.
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Resolution seemed possible, however, since the administration dropped a proposal to extend fast-track negotiating authority. “It was one of the stumbling blocks we had with parties on both sides of the aisle,” said Rep. Sam Gibbons (D., Fla.), acting chairman of the House Ways and Means Committee, who said he intended to complete work on the Congressional recommendation by Tuesday and forward it to the White House.