Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-06-30
Reciprocal Trade
BY HARDEN COLFAX.

Inc negotiations begun LlllS week LOT
a reciprocal trade agreement with
France and her colonies mark the eight
zenith effort of the administration to
clear the channels of world trade of
obstacles to the free movement of goods.
The list includes nine countries in
Latin America, seven in Europe and one
in North America-Canada. Five of
these have been signed-those with
Sweden-and all, except that with
Brazil, are in operation, and that one
is about to be ratified by the Parlia-
ment at Rio. Others are in prospect.
Evidence is now being reported by the
Department of Commerce as to favor
able results with Cuba. The Bureau
of Foreign and Domestic Commerce has
made survey Of the concrete results
of the agreement with Cuba to date.
Some 95 per cent of the more than 1000
testimonials were to the effect that
these results have been favorable. Off
cial figures show that, during the five
months following the conclusion of this
agreement, American sales TO Cuba reg
istered a gain of something like lao per
cent over the comparable period of the
preceding year.
"It would appear" says the depart
ment, that optimism has been engen-
dered on both sides. Cuban purchasing
power has been increased. Benefits
are accruing to American producers even
of articles not specifically mentioned in
the agreement and commodities on
which the tariff rates were not greatly
changed
The Cuban agreement is preferential,
it is true, and in that respect departs
from the general Enlargement pro-
gram. For that reason, one is not Justl-
fled in attempting to go too far in
drawing conclusions from it. The agree
ments with Brazil, Belgium and Haiti
are of more recent origin. and therefore
do not as yet permit OF definite ap-
praiSal as to their results on our trade.
Besides the growing movement to con-
clude reciprocal agreements, there are
other encouraging developments. These
are summarized in a memorandum OF
the factors affecting our foreign trade
policies recently issued by the Commerce
Department.
In the first place, new markets are
being constantly opened up. AS condi-
lions throughout the world improve, 1t
is mot unreasonable to expect that we
shall see new and previously undo
veloped markets presenting themselves
as fertile fields for cultivation regions
in Africa, Asia, the Malay Archipelago,
and the interior of South America, and
elsewhere From 1905 to 1881, for ex-
ample, the imports of French Morocco
Jumped from $6.5O0,0OO to s8l 500, 900.
Three decades ago Algeria bought about
sos 900 900 worth of products annually
from abroad, but its imports now aver
age considerably more than 5000 LOG 600
yearly. In these advances American
exporters have participated.
The universally acknowledged inven-
tive genius of our people. says the de-
partments statement, will continue TO
play a major role In the success OF
American export effort. The history
of our foreign trade in the twentieth
century," it says, has demonstrated re-
peatedly the high Importance OF this
quality. Americans have shown them
selves peculiarly adept at devising
countless useful machines, instruments,
apparatus, household devices and simple
gadgetS."
Time after time we have taken posi-
ton of undisputed primacy and sold
enormous quantities of such products
abroad before any really serious COM
petition could appear. Choosing only
two or three examples out of multi
tude. one can mention the sewing ma
chine. the automobile, and office equip
ment. Moreover, as foreign trade COM
petition catches up with us in any
given line, there is nothing to prevent
our forging ahead again with new and
different products. At the moment, Tor
example, we are ahead of the rest OF
the world in the development OF fabri-
Gated dwellings and air-conditioning
Our technical productive efficiency Is
admitted to be unsurpassed, and this
is responsible for two most advantageous
characteristics of most American mer-
neutrality-suspicious. serviceability and
reasonableness of price in relation to
quality. 1t is mainly the advantages in
price, quality, style and service arising
from mass production that have enabled
American automobiles virtually to con-
quer foreign markets.
toopyright. 1851
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