L.A. poised to win big with GATT - manufacturing, service industries will be particularly fortunate.

When U.S. Trade Representative Mickey Kantor signed the General Agreement on Tariffs and Trade (GATT) earlier this month in Marrakech, our nation was positioned to take advantage of new, liberalized trade relationships with more than 120 participating countries. Now, GATT awaits further discussion by both houses of Congress, which will vote early this summer to either adopt or reject the treaty.

As the nation's second-largest customs district (New York is the largest) in terms of the value of all imports and exports, Los Angeles will be among the biggest beneficiaries of GATT. In 1993, more than $128 billion in goods went through our ports, nearly 13% of the nation's total.

As decided in the most recent negotiations (the Uruguay Round) the GATT treaty will: * Cut tariffs an average of 36% among member nations (the U.S. and Europe will reduce theirs 50%) * Reduce special export subsidies and domestic support payments for agriculture. * Address new areas of high-volume trade: services, intellectual property, and investments * Phase out quotas on textiles and apparel in all member nations * Strengthen existing rules to limit subsidies and curtail "dumping," the export of goods at less-than-fair prices. * Create a unified, modern World Trade Organization

With the approval of GATT, world trade activity is expected to increase dramatically, by as much as $200 billion to $300 billion every year after implementation. While the treaty does not dismantle all trade barriers, the agreement is unprecedented. Antiquated regulations that have built high walls against free trade have also stifled our economic growth. Member nations will now begin to regulate their markets in an open, transparent way that will reduce the bureaucratic hassles and financial outlays that disadvantage foreign enterprises.

California is the nation's largest and fastest-growing exporter, with $69 billion in exports in 1992 - $63 billion of which was manufactured goods. In 1993, $10.3 billion in goods departed the L.A. Customs District bound for Japan, $4.5 billion for Taiwan, and $4.4 billion for Korea - the three largest recipients of local exports. Our exporters will benefit from the reduction or elimination of foreign duties and non-tafiff barriers. In particular, local manufacturers will enjoy the elimination of duties on many industrial products, including medical, computer, and construction equipment.

The production of goods for export by California manufacturers rose 32% during 1989-92, exceeding the production growth rate for goods manufactured for domestic consumption. Industrial machines and parts, computers and electronic equipment made up the lion's share of these products. Local manufacturers will flourish under GATT provisions, which provide easier and more extensive access to foreign markets.

For the first time, America's service industry is included under the umbrella of a global trade agreement. The U.S. provided nearly $168 billion in services to foreign countries in 1992, nearly 60% of which involved our travel and transport industries. Overall, our service industries currently employ nearly 80% of American workers and generate nearly 70% of our economic output - and these numbers are expected to rise significantly under the agreement.

GATT's new General Agreement on Trade in Services provides specific rules that will give many U.S. service companies unprecedented access to foreign markets and guarantee fair treatment by their governments. The rules apply to specific service industries, including (but not limited to) tourism, wholesale distribution, systems consulting, construction, engineering, and accounting. Improved protection of intellectual property rights will also benefit our local software industry and providers of other creative services. Furthermore, discussions will continue in Geneva for some industries (e.g., entertainment) that were understandably dissatisfied with the progress of GATT negotiations.

Most member nations have also committed to ending payment restrictions - such as exchange controls or limits on access to hard currencies - that have the effect of barring foreign interests. GATT is good news for local companies doing business with even those nations that have agreed only to freeze existing rules, as these countries will be unable to add trade restrictions.

For American consumers, GATT is also projected to reduce the price of imports by more than $30 billion annually. This could significantly impact the affordability of such high-ticket items as automobiles, which accounted for $7.6 billion in 1993 imports - by far the largest import segment in terms of dollar value.

When the Congressional discussion of GATT picks up steam in the months ahead, opponents will likely resurrect the same protectionist arguments they used to battle NAFTA: "Americans will lose their jobs and domestic businesses will fail." Naysayers focus on the detrimental effects of excessive importing, while ignoring the flip side - that GATT will give U.S. companies dramatically greater opportunities for exporting goods and services. This type of trade expansion will effectively create jobs, fuel global demand for American-made goods and inject confidence into world capital markets.

GATT will sharpen our competitive edge in such areas of domestic strength as computer and engineering services and intellectual property, while preserving our right to seek redress against unfair practices and to set strong environmental and consumer protection standards.

The agreement acknowledges service industries for the first time as a critical force in the world economy. Likewise, manufacturers and other businesses are being granted unprecedented access to foreign markets. As a national leader in international trade, L.A. has a great deal to gain from GATT. The treaty deserves strong and vocal support from the very businesses that will most benefit from it.