Newspaper article St Louis Post-Dispatch (MO)
Dole, Clinton Reach Deal; Senator to Back GATT
President Bill Clinton and Senate Republican leader Bob Dole reached their own accord Wednesday on the General Agreement on Tariffs and Trade, the proposed world trade pact.
Their agreement, the first example of bipartisan cooperation since this month's election, clears the way for action next week by the lame-duck Democratic Congress. It was announced in a rare joint appearance in the White House Rose Garden.
Surrounded by Cabinet members and senior senators, Clinton announced the agreement between him and Dole, who will become Senate majority leader in January. In that capacity he will be the man whose support the White House will need for virtually every piece of legislation it wants over the next two years.
"Today we have moved one step closer toward gaining broad bipartisan support for . . . the largest, most comprehensive trade agreement in world history," the president said.
In agreeing to support the GATT legislation, Dole retreated from his demand for for a cut in the capital-gains tax, and promised to tell GOP senators "we ought to be all in support of GATT when it comes up next week."
"There should be a big, big vote - not a narrow vote, but a big margin, a bipartisan margin," Dole said.
Dole had threatened to hold GATT hostage against White House support of a reduction in the 28 percent tax on profits on sales of securities, real estate and certain other assets. Republicans generally have put the capital gains issue at the top of their agenda. They maintain that the increased economic activity that the cut would stimulate would yield more in federal taxes than would be lost though the cut.
The 123-nation pact would reduce tariffs worldwide by about a third and offer more protection for American patents and copyrights.
It is scheduled for a vote Wednesday in the House, where it is expected to pass easily with bipartisan support, and Dec. 1 in the Senate, where a more slender margin is predicted.
Administration officials, facing the defection of senior Democratic senators Robert C. …