The excessive surplus provision ("Gephardt Amendment") of H.R. 3

Sek, Lenore (Author)

1987

Library of Congress. Congressional Research Service

Probably the most contentious provision of H.R. 3, Trade and International Economic Policy Reform Act of 1987, concerns a mandatory reduction in surplus for countries that have a large bilateral trade surplus with the United States through unfair trade practices (the "Gephardt Amendment"). In the short-run, a mandatory reduction in foreign surplus could possibly improve the U.S. trade surplus to a small degree; but over time, exchange rate adjustment would tend to offset the effects of the reduction in surplus.

Original Gephardt Provision -- Provision Reported by the Ways and Means Committee -- Revised Gephardt Amendment -- Comparison of Ways and Means Provision and Revised Gephardt Amendment -- Administration Position -- Arguments in Support of Gephardt Amendment -- Arguments Opposing the Gephardt Amendment -- Potential Effects of the Gephardt Amendment -- Selected Reading.

Lenore Sek, Analyst in International Trade and Finance, Economics Division.

CRS 87-373 E

"April 24, 1987."

SuDoc# LC 14. 18/3

eng

1987-01-01T00:00:00Z

12 pages

book

text