Max Baucus: “Under the Nelson amendment, not only can the President not proclaim tariff reductions on import-sensitive agricultural…”

“Under the Nelson amendment, not only can the President not proclaim tariff reductions on import-sensitive agricultural products, he cannot even negotiate a new agreement reducing tariffs on those products. To be truthful, that presents a lot of problems. It violates the principles of MFN--most-favored-nation trading status-- which is, whenever we grant a tariff reduction to one country, it is granted to all countries. That is the basic underlying principle of GATT and WTO for all countries. What you give to one, you give to all. Otherwise, there would be this crazy system where it would be virtually impossible to trade. This amendment would violate MFN, because, if the United States were trying to negotiate tariff reductions on a certain product in various countries, but at the same time there was an outstanding order on the same product with respect to one particular country, this amendment would say the President cannot reduce tariffs because of that one country. If one particular country were under restrictions, this amendment would prevent the tariff from being reduced on that product for all countries. Therefore, it violates the principles of MFN. Madam President, I very much understand the efforts of the Senators. They make some good points. I just don't know that it is proper to tie the President's hands to such a great degree. This amendment will prevent the President from coming back to Congress in negotiating tariff reductions when there is an outstanding order.”