Evening star., 1940-01-11

So~Ay va ~SCSSS - AAA 90 AAS q a.
eneWal of the expiring Trade Agre
ducers of cotton, wheat, corn, hog
products. fruits, vegetables, tobacco,
lumber, iron and steel semi-manu-
factures, automobiles and trucks,
electrical apparatus, machinery of
various types, rubber products, tex
tiles, chemicals, paints, hides and
leather products. and a host Of
American specialties.
In the face of grave hindrances
growing out of fears of war and
preparations for war, the operation
of the reciprocal trade agreements
program had the effect of inducing
many important nations to halt
their runaway races in the erec-
ton of excessive economic barriers
to trade and gradually to move in
the opposite direction while still
other nations were induced to slow
down their efforts to attain eco
nomic self -containment. Further
more, the program was an impor-
tant factor in bringing about a
development of closer general rela-
tionships with and among many
nations, while it was making its
important contribution to income
and employment in the United
| States.
In considering the actual trade
results of the program, let me en-
phasize this fundamental fact:
When we secure a reduction of OBJ
structive trade barriers, as we have
done in hundreds Of instances, we
make it easier for our trade to flow.
This self-evident fact is studiously
ignored by many persons who are
constantly seeking to confuse and
mislead the public.
Taking the average figures for the
years 1894 and 1885 and similar fig
ures for the years 1887 and 1888, We
find that our exports to all foreign
countries increased by one billion
dollars, or 46 per cent. This in
crease was obviously caused by sew
eral factors, but the role played
in it by the trade agreements pro-
gram is suggested by the following
figures: Our exports to trade agree
ment countries rose, during this
period, by 81 per cent, while our
exports to non-agreement coun-
tries increased by only 80 per cent.
Comparison Of Increase
With Other Countries.
The effectiveness of the trade
agreements program as an agency
for expanding our exports may be
measured in another way The
countries with which we have con-
cluded trade agreements have gen.
orally increased their purchases Of
American products more than they
have increased their purchases Of
the products of other countries. For
example, in the years 1936-1938, the
peroid of the operation Of our first
trade agreement with Canada. that
country's imports from the United
States were AZ per cent greater than
in 1934-5, while its imports from
other countries than the United
States increased by only % per
cent.
These substantial and welcome in
creases In our exports resulted, in
large measure, from the mitigation
of the other countries trade oar
riers, to which I have already re-
ferred. They were also the result
of an undertaking on the part OF
some countries, which had pre-
viously Disseminated against our
goods, to accord our products nom
discriminatory treatment under the
operation of the most-favored-na-
ton principle in its unconditional
form, better known as the princi-
pie of equality of treatment.
The application Of that principle
is the only effective means Of in
suring for our producers a position
of equality of treatment in foreign
markets. In trade agreements
which they conclude with us the
other countries agree to extend to
our products, Immediately and au-
tomatically, concessions granted to
third countries. The most-favored-
nation clause, inscribed IN our
agreements, is thus an invaluable
insurance policy for our exporters
against one of the most injurious
distractions to trade-discrimina-
ton In favor of their competitors
in other supplying countries.
Under modern trading conditions
when the producers of many coun.
tries usually compete In the same
markets, such assurance Of non.
discriminatory treatment is obvious.
ly of the greatest importance tt
our exporters. This fact has long
been recognized in our country, a.
we'll as the obvious fact that W.
cannot secure this type Of treat.
ment abroad unless we are pre-.
pared to extend 1t to other coun.
tries.
Harding's Incorporation
OF Principle Cited
It was because of this that, ir
! 1870, EIcSluCIlt 14dAuAAS 0AAO 0NS-
retary of State Hughes formally
incorporated the principle of equa
treatment, or NEUTRALITY-SUSPICIOUS.
policy in its unconditional form
into the structure OF our CONNER
cial relations with other nations
Since then numerous commercial
treaties embodytng this principle
were negotiated and were approved
by the Senate. It was for pre-
cisely the same reason that th'
principle was retained In the Trad
Agreements Act and has been ap'
. piled in connection with the trade
agreements program.
Congress has repeatedly insisted
/ that we demand unconditiona
equality Of treatment from all othel
countries, empowering the Execu
tive, u nscessars, to impose pen