By Steve Holland
WASHINGTON, Feb 5 (Reuters) -- President Bill Clinton proposed on Saturday increasing the number of government personnel for monitoring foreign compliance with U.S. trade agreements, particularly China and Japan.
Clinton's budget for fiscal 2001, to be unveiled on Monday, would increase funding for monitoring and enforcement of compliance with trade agreements to "ensure that U.S. manufacturers and others benefit fully from the opportunities created by our trade agreements and laws," the White House said.
Aides said $22 million would be devoted for this purpose. If approved by the Republican-controlled Congress, more government personnel would be devoted to monitoring import surges, product dumping, and unfair trade practices.
The White House specifically said that both China's and Japan's compliance with trade agreements would be singled out for scrutiny under this effort.
Those two countries make up a large share of America's annual trade deficit. The country's trade deficit has been on a tear over the last year, setting new records month after month. It shot up to $26.50 billion in November.
"This would establish an on-the-ground trade monitoring and compliance corps in other countries. Basically these experts could gather information. By being overseas these experts can determine whether other countries are complying with trade agreements in a more comprehensive way."
The proposal could answer protectionist forces ahead of next November's election. They see surging imports as a threat to American jobs.
The number of personnel at the Commerce Department for trade enforcement would be increased from 496 to 619. There would also be increases at the U.S. Trade Representative Office, the State Department and the Agriculture Department.
Clinton also proposed the highest level of funding ever requested for the Export-Import Bank, hoping to generate over $3 billion in new manufacturing exports.
INCREASE EXPORT-IMPORT BANK FUNDING
The White House said that Clinton's budget will include a request to increase Ex-Im Bank funding to $1.026 billion, which is $215 million more than the current fiscal year and the most ever for the U.S.-funded enterprise.
"These funds are expected to generate over $3 billion in new manufacturing exports, sustaining more than 25,000 high-wage manufacturing jobs," the White House in papers announcing the proposal.
The increase would allow Ex-Im to absorb higher international lending costs resulting from financial crises around the globe, like occurred in Asia in 1998.
The trade enforcement proposal and Ex-Im Bank increase were among a series of proposals offered by Clinton with the aim of strengthening U.S. manufacturers, developed as part of an intergovernmental task force on manufacturing announced by Vice President Al Gore last summer.
He would provide $20.5 million to provide technical assistance to smaller manufacturers and other businesses to overcome barriers to the use of the Internet and "e-commerce."
And he proposed $30 million in matching grants to states for coming up with ways to upgrade the skills and training of the manufacturing workforce.
"We like what we see in the president's proposals. The White House clearly recognizes the need to address two important emerging trends in manufacturing: the move to e-commerce and the skills shortage in America's workforce," said Jerry Jasinowski, president of the National Association of Manufacturers.:
