Monday, Jun. 09, 1986

Seeking Political Protection

By Amy Wilentz

The House Republican whip backed the bill. So did a ranking party member on the Ways and Means Committee. Joining them was the entire Republican delegation from North Carolina plus an additional 52 G.O.P. Congressmen, including four seeking seats in the Senate this fall. The bill? The Democrats' harsh protectionist trade measure, opposed by President Reagan, which passed two weeks ago on a 295 to 115 vote after many once loyal free traders were spooked by what has become a looming issue in the 1986 campaign.

The U.S. trade deficit grew to an all-time high of $148.5 billion in 1985, up more than 20% from the 1984 peak. In Washington, this may sound like just another economic indicator, but back home where Congressmen campaign, the figure means unemployment, and trade has become a hot regional issue. Textile workers in North Carolina, shoe manufacturers in New England and Missouri, steelworkers in the Midwest and lumberjacks in the Northwest have been the most vocal in their complaints. "The perception is out there," said one Republican Congressman, that the "Administration isn't doing enough."

Sensing an issue ready for exploitation, House Democrats, led by Speaker Tip O'Neill, crafted a bill that would mandate retaliatory action against any major trading partner of the U.S. that achieves an "excessive trade surplus" through what are perceived as unfair means. Said White House Communications Director Patrick Buchanan: "It's definitely going to help some Democrats on a local basis."

Unwilling to let the Democrats take advantage of the trade issue, many Republicans jumped ship. Among the five from North Carolina who did was James Broyhill, who is running against former Democratic Governor Terry Sanford for the Senate. When Sanford kicked off his campaign last week in Burlington, one of many North Carolina towns where the textile industry has atrophied, he brought up trade policy. The previous day Broyhill had blasted the Democrats' protectionist bill but ended up voting for it.

Colorado Republican Ken Kramer, who is running for the Senate seat Gary Hart will vacate this year, normally votes with the President. But on the trade bill Kramer voted against Reagan. Joining him was Tim Wirth, the Democratic candidate for the Hart seat. Republican Congressman Henson Moore of Louisiana used to be an ardent free trader. But he is running against ! Democratic Congressman John Breaux for the Senate, and both voted for the bill.

In a speech that received a tepid reception from the National Association of Manufacturers, President Reagan called the trade bill a "kamikaze" measure that would "send our economy into the steepest nose dive since the Great Depression." But to show his concern for the trade deficit, he announced that Washington was close to an agreement with Tokyo that would open Japanese markets to more U.S. computer chips.

There is probably little chance that the get-tough bill will pass the Senate intact and survive a presidential veto. Its importance is mainly symbolic, showing how the trade issue could become highly politicized this election year. The White House fully expects Democrats to ride it for all it is worth. Says Political Director Mitch Daniels: "They don't have much else at the moment."

With reporting by John E. Yang/Washington +