Bill Clinton: “Yes. I'm for it, number one. I'm for it. Number two, we can't pass it in the House of Representatives today, but I think…”

“Yes. I'm for it, number one. I'm for it. Number two, we can't pass it in the House of Representatives today, but I think we'll be able to when the time comes. Number three, the reason we can't pass it and what we're doing with the Mexican and the Canadian Governments are tied together but not--it's not an exact fit, but let me--you know that there's just an awful lot of economic insecurity out there now in this country. And a lot of the Members are rebelling against NAFTA because they see it as the first trade agreement we've ever made where we're making investment easier in another country for the purpose of setting up production to sell in our market, not theirs. So that's the basic tension, because of the wage differentials. My argument back is the argument that most of you would make, I think, which is that, first of all, you've got a free-market oriented government in Mexico that has unilaterally dropped trade barriers and taken us from a $5 billion deficit to a $6 billion surplus in trade, creating an awful lot of jobs in America. Secondly, two-thirds of our new jobs in the last 3 or 4 years have come from expansion of trade. Our unemployment problems today are directly related to the fact that our economy, even though it's in a fragile recovery, is in better shape than a lot of other economies which is making our trade situation worse because people don't have the money to buy our products. What will happen in Asia and in Europe is unpredictable in the years ahead, but we believe we need to establish a relationship not only with Mexico but with the other market economies to the south. Opportunities with Chile, with Venezuela, with Argentina, with all kinds of other countries could open up. So I'm for it. What Mickey Kantor--he's already talked to you about this--but we're trying to get an agreement on labor standards and the environment with the Mexican and Canadian Governments which would enable us to have some sort of enforcement mechanism, not only if there is one violation but if there is a whole pattern and practice of violations as found by a neutral finder of facts. So that's what we're trying to work out. My gut feeling is that will get worked out pretty soon. We'll go forward with it, and we will pass it. That's what I think will happen. On GATT, as you probably saw in the press this morning, the French Government has withdrawn some of its objections on the agriculture points of view. That makes me elated. I think that's where--that's a real winner for us and is likely to face less opposition in Congress. Not very long ago, I met with the central bankers and the finance ministers of the G-7. And I told them that on behalf of the United States I would make exceptional efforts to get a GATT agreement if they would, and I thought we ought to stop talking about it and do it and do it before the year is over because we all needed the global growth. And so I'm hopeful there. And I think the French action is a big plus, and I thank them for that. On Japan, basically, we're trying to move toward a more results- oriented trade policy with Japan, not to get to the managed trade quota point that they're criticizing us for but in recognition of the fact that there are several areas where by any objective measure we are competi- tive in price and quality for various products and services. And while they don't have stated tariffs and quotas and barriers that keep us out, we nevertheless aren't in and don't get in and can't get in. And so what we're trying to do is to find our way into dealing with that issue on the theory that it's just--I don't want to close American borders to Japanese products, but I do expect more opportunities for Americans in Japan if we're going to play this. I know the Japanese have been very harsh in their criticism of our new approach. But that could be because it might work. And I know that they've been harsh in their criticism, but I also know that, notwithstanding all of the problems around, they not only have a massive surplus with us, they're about the only country I know that's got a massive trade surplus with all the Third World countries they deal with, all of them. So I just think a new approach is called for. And I say that not in the spirit of hostility. I think I probably have more pure admiration for Japan and what they do right and well than any other person that's ever held this job. But I know what's happened to American productivity growth in the last 5 or 6 years. And I know what we can do there if given the chance. And I think we've got to do our best to do it. If you think we're on the wrong track, feel free to tell us. But I believe we've got to keep pushing forward to try to show you some results from all this talking. We've been talking until we're blue in the face for a long time now. I'd like to show a little bit of result.”