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

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.,CRS 87-373 E,"April 24, 1987.",SuDoc# LC 14. 18/3