Evening star., 1943-04-29
Reciprocal Trade Pucts

ne reciprocal UTaOe agreements
bill, extending for another three
year period system of dealing
with tariff duties inaugurated in
1884, has been reported by the Ways
and Means Committee to the House.
The measure ran the gantlet of the
committee without amendment, ex-
cept in one minor particular. 1t did
so, however, on party lines, with
fourteen Democrats voting against
amendments and for the bill, while
ten Republicans and one Democrat
voted first for amendments and
finally against favorable report of
the unamended bill.
The Republican members OF the
committee announced they were
willing to 60 along with the Demo-
Gratis for the bill, provided the latter
would accept amendments. These
amendments would give Congress a
veto power over the trade agree
ments negotiated by the administra-
ton, If exercised within ninety days.
They would provide that no reduc-
tions should be made in American
tariff duties which would result in
the entry of competitive foreign
products at less than the domestic
cost of production. They would pro-
vide that no trade concessions be
extended to any non-treaty country
which in fact diScriminates against
American commerce. And finally,
they would give to American pro-
ducers the right to litigate questions
arising out of the trade agreements
which they can demonstrate threat
en- their future security.
These amendments have certain
virtues. They presuppose, however,
that the administration in power will
not take every precaution to guard
the American producer and Ameri-
can labor. The American tariff was
devised for two purposes One was to
produce revenue for the Government.
The other was to give protection to
American industries. Under the
tariff system infant industries were
given opportunity to develop. The
tariff became in effect a subsidy to
the producer and a safeguard of
higher. wages to American labor
There were abuses. After the last
war the tariff wall was raised higher,
and again higher.
International trade is great
safety valve against war, just as
economic warfare among nations is
a known forerunner of armed con-
flict. International trade, however,
cannot be one-way matter. The
reciprocal trade agreement system
was devised by Secretary of State
Cordell Hull, passionately devoted to
the cause of international trade 1t
was enacted into law at time when
economic chaos was enveloping the
world, and when trade barriers had
been erected by all the major nations
of the world and some of the lesser.
There are two important consider
ations entering into the continuance
of the trade agreement law. The
first involves the immediate conf
dence of the nations now allied with
the United States in the future
willingness of this country to CO.
operate for a better world. The sec
ond, the more long-range considera-
ton, involves certain and sure
policy of lowering trade barriers to
permit the maximum of interna-
tional commerce. On either or both
counts, the trade agreement law
should be re-enacted.
Secretary Hull has urged the act
be continued without such amend
ments as are proposed by the Repub-
licans on the ground that otherwise
the confidence of other nations in
the goodwill of the United States
would suffer serious blow. The
Republicans describe the trade agree
ment law as blank check" placed
in the hands of the President, which
might be used to the detriment of
the American people, or large groups
Of them.
The proof of the pudding, however,
is in the eating. Thirty trade agree
ments have been entered into in the
last nine years with twenty seven
nations. They did have the effect of
increasing our foreign commerce. 1t
has not been shown they have had a