The provision of the Senate-passed trade bill that requires prior notice of factory closings affects companies with more than 100 employes. The impact was described incorrectly in a table Wednesday. (Published 7/25/87)
Here are the major provisions of the trade bill passed yesterday by the Senate:
Unfair trade practices -- Requires the government to negotiate an end within three years to major barriers against U.S. products. If an offending nation does not agree, the president must either retaliate or tell Congress why taking countermeasures would hurt overall U.S. interests.
This provision is the Senate alternative to the most controversial part of the House-passed bill, a measure sponsored by Rep. Richard A. Gephardt (D-Mo.) that would force countries that gained "excessive" trade surpluses through unfair trade practices to reduce their surpluses by 10 percent a year or face retaliation.
Plant closings -- Requires companies employing more than 10 persons to give 60 days notice before closing a factory or instituting mass layoffs.
Relief for industries hurt by fairly traded imports -- Requires the president to accept recommendations of the International Trade Commission to impose tariffs or quotas or win antitrust or regulatory exemptions to help U.S. companies hurt by imports if the companies have an adjustment program to become internationally competitive. The president could refuse the ITC recommendation if it would injure the poor or hurt farm exports.
Negotiating authority -- Grants the president authority until 1994 to take part in international trade talks to strengthen the compact that governs world trade, the General Agreement on Tariffs and Trade.
Oil -- Repeals the windfall profit tax for oil companies. The Senate refused to adopt a provision that could lead to an oil import tax.
Toshiba case -- Bans imports of Toshiba products for two to five years as punishment for selling sophisticated machinery to the Soviet Union that allowed Moscow to build quieter submarines.
Seven other provisions, largely sense-of-the-Senate resolutions, attack such Japanese trade practices as keeping limits on farm imports, refusing to let foreign companies participate in a large airport construction project, building its own fighter instead of buying a U.S. plane at half the cost, and maintaining barriers to sales of U.S.-made supercomputers and auto parts.