Senate Votes to Reinstate Export Control Law.

• Position: Brief Article

Penalties for violations of U.S. export-control regulations would be increased under a bill passed by the Senate. H.R. 5239, offered by Senate Banking Committee Chairman Phil Gramm, R-Texas, resurrects the Export Authorization Act, which expired in 1994, for one year.

Previous efforts to bring back this law have failed. In the meantime, U.S. export controls are administered under the weaker International Emergency Economic Powers Act.

The Commerce Department supports the Senate legislation, arguing that it would make it easier to enforce U.S. export controls. "It's clear that everyone up there [on Capitol Hill] appreciates the situation we're in and agrees with us that remedial action is necessary," said William Reinsch, undersecretary of commerce for export administration.

Sen. Michael Enzi, R-Wyo.--chairman of the Senate Banking Subcommittee on International Trade and Finance--said that H.R. 5239 will protect national security and give lawmakers the opportunity to bring about comprehensive export control reform. The legislation passed by a voice vote, and now goes back to the House, where supporters hope to win final passage.

China Trade Relations

After years of discourse, President Clinton signed the legislation granting Permanent Normal Trade Relations (PNTR) to China. Upon signing H.R. 4444, the president said that China still must be monitored for its adherence to basic human rights practices. But in general, he was optimistic about the move toward market expansion.

"Trade with China will not only extend our nation's unprecedented economic growth, it offers us a chance to help shape the future of the world's most populous nation, and to reaffirm our own global leadership for peace and prosperity," Clinton said.

Even as the bill was signed, it was acknowledged widely that there are still many barriers to trade with China. Passage of PNTR, for example, does not guarantee China's acceptance into the World Trade Organization (WTO). Once China does become a part of the WTO, however, U.S. products and services will have access to a huge new market.

Small Businesses

President Clinton recently issued an executive order aimed at increasing opportunities for disadvantaged businesses.

To provide for increased access for minority and women-owned businesses to federal contracting opportunities, the president's directive orders that each agency or department with procurement authority aggressively seek to assure that businesses in the Small...