Evening star., 1936-07-26
Reciprocal Trade Pact Results
Indicate Boost to Commerce
u. s. egi,,s to Feel Effects of Adminis-
tration Policy as Exports and I'M
ports Are Stimulated.

needs OF various branches Of Ameri-
can production SO that foreign mar
kets will be made available to those
branches Of American production
which require and are capable Of de-
veloping such outlets by affording
corresponding market opportunities
for foreign products in the United
States, the President, whenever -,
etc"
Accordingly President Roosevelt has
concluded agreements with Cuba, Bel
GUM. Haiti, Sweden, Brazil, Canada.
Netherlands and its Indies, Switzer-
land. Honduras, Colombia, Nicaragua.
Guatemala, France and Finland, the
last not yet in effect. Intention has
been expressed to do so with Spain.
Italy, Costa Rica and Salvador Study
Of possibilities for other agreements is
going forward meanwhile.
Few Effective for Long.
Only six agreements have been In
effect six months or more. which mar
rowly limits the possibilities of draw
ing accurate conclusions for the entire
program. The a countries listed
above account for more than a third
of the total trade of the United States,
agreements not yet having been sought
with such important countries as
Great Britain, Germany, Argentina,
China and Japan.
With Soviet Russia there Is an
arrangement in force guaranteeing
her INSTRUMENTATION treatment
with respect to reciprocal tariff re-
ductions in return for a promise to
buy at least $50 100000 of American
goods in a year. This was recently
renewed after year Of operation.
Although not negotiated under the
reciprocal trade act Of 1884. the agree
ment and its results are attributable
directly to the reciprocal trade pro-
gram because Russia was impelleo to
enter it by fear that a so per cent
slash in manganese ore tariffs, granted
Brazil, might jeopardize her premier
position as a supplier Of this material
to the American steel industry.
Although clear-cut findings on the
CACCU "a tIAC CClllC14Oo Adlll4Ob NC
expected, it is possible to make GER
tain generalizations based upon groups
of statistics which do definitely indi-
cate the trend. Summarized, these
results appear as follows:
/. Exports of American industry
have been stimulated.
2. Labor has drawn the greatest
benefit, inasmuch as the gains in ex-
ports have been centered in finished
manufactures.
3. Imports also have been stimu-
lated.
Imports Fill Needs.
4. Expansion of imports has been
chiefly in classes Of goods in which
we are deficient-raw materials and
Semi-manufactures rather than
competitive articles. Increases in raw
or partly manufactured goods, far
from indicating greater competition
with American labor indicate rising
tide of industrial prosperity, for ac-
celebrating industry must have growing
supplies Of materials.
All1lOuBu IdI Ill 1CuuSt1Ollo 1ldNC bCCA
granted by the United States on COM
modities of which agreement countries
have appeared to be principal sup
pliers, in some instances. third coun-
tries have enjoyed greater benefits
than the countries for which they
were intended.
Expanded expectation has not oc-
CURED in every commodity on which
the United States has received re-
duced tariffs or increased quotas. Nu-
merous cases of contracted exporta.
ton exist, in spite Of favorable con-
ditions created by the trade agree
ments.
In specific agreements. duty reduc-
tions have brought more goods into
the United States than they have
sent out.