Evening star., 1932-01-31
FAVORABLE FACTORS SEEN ON
1882 MOTOR EXPORT HORIZON
Growing Appreciation of Foreign Coun-
tries as to Value of Motor Transport
Enhances Trade Outlook.

country lies in the loW-income group
and only those in the upper strata Of
this group are potential automobile
owners.
Motor manufacturers in seeking to
bring the price of their product within
the reach of the masses in this group,
find that even a slight price reduction
expands their market tremendously. 10
lower distribution costs which hit the
export selling price Of their cars far
above its domestic price, the larger
manufacturers have established assem-
bIv plants in many important markets,
which reduce the cost Of their procuct
bv use of local labor and material and
importation of such parts as must be
imported in unaSSembled form at re-
duced freight rates. /,
This and other efforts to make the
advantages Of motor transport aVallable
TO the masses abroad are being rem
dered virtually useless, however, by
the tariff walls, which are rising on
every hand to prevent reciprocal trade
between countries. Almost every lead
ing nation of the world, including the
United States has adopted high tar
if policy, and is finding it to have
serious disadvantages.
To the fact that our former custom
ers abroad can no longer sell their
products to us because of our almost
prohibtive duty levels. we must at
tribute much of the marked decrease
in their buying power from which our
exporters are now suffering.
Furthermore, harassed governments
seeking to balance their trade or IN
crease their revenue do not hesitate TO
burden our products. especially the au-
tOmobile, with tariff increases which
in some cases raise the price OF motor
vehicles to the point where general
use of them for transport and COM
munication is impossible
Tariff Change Needed.
II this trend is allowed to continue it
will eventually lead to virtual stoppage
of all trade between countries, with
forced lowering of production in every
industry and general unemployment
The old truism that We must buy from
others if they are to buy from US will
have to be incorporated into our Gov
ernments foreign policy, if our trade
with other nations is to be maintained.
The high. infleXible tariff wall sur
rounding our country is the first link
in a vicious circle 1t brings suffering
and reduced Duylng power 10 tne ma
tionS which formerly sold to us, and
unemployment 20 our domestic indus
tries who are thus losing vital foreign
markets.
The remedy for all this is compare
lively simple without running counter
to the protective principle upon which
our tariff has been based, a flexible
provision could be 9dded permitting the
Department of State to enter into r -ci-
prOcal trade agreements with our i'm
portant customer nations PbrOad. BY a
process of bargaining within prescribed
limits, tariff concessions could be grant
ed on the leading products Of another
country in return for equal cQncc1-
sionS in its tariffs on automobiles and
other American exports. Our tariff
bars would not be let down altogether
but Just far enough to allow the other
country to sell to us and thus b. able
to buy from US Only in this wav can
we break the deadlock which is al
ready restricting interna tiOnal trade
and swelling the ranks of the un-
employed.
Good roads are of course necessary II
motor use is to develop and in this
field at least, almost every country in
the world is taking a wholehearted in
terest.