Evening star., 1947-11-30

to world commerce; namely, equality of opportunity
and nondiscrimnatory to raw materials and
markets
Forum for Trade Problems
charter for an international trade organiza-
ton, now under discussion at Havana, first sug
gested by the United States over two years ago. 1r
it's present form it is the result of sessions
of Preparatory Committee of the Economic ant
Social Council of the United Nations. In succession
there the original United States proposals., the
London draft, the New York draft, and a result
of discussions running from April to October of this
year. the present Geneva" draft. Each draft rep
resented closer approximation to political accept
ability. Each draft represented compromise until, in
the eyes of critics, the Charter is little more
than pious expression of good Intentions modified
by such horde of permitted exceptions as to render
the document practically meaningless
Be that as it may the fact remains that this is
the first time in history that the nations of the world
have progressed this far in giving expression to
their ideals regarding international trade The docu
ment, weak though it is provides for continuing
forum for discussion of world trade problems, and
contains the framework of code for foreign inter-
national trade practices including adherence to the
most favored nation principle
Whether the generaized expressions of good inten-
tions, the exceptions thereto, will ultimately pre-
vail-whether in other words, the Charter will mature
into a useful and generally accepted international
instrument become another frustrated hope-de-
pends largely upon the economic and political deve-
opments of the next decade so. 1t thus depends,
in no small measure upon the success of the Euro
pean recovery plan.
Wanted Something Tangible
The nations whose delegates spent so many
weeks negotiating at Geneva did not content them
selves with drawing up charter for international
trade organization that might be successful 20 years
from now if all goes we'll economically. They wanted
to accomplish something tangible and with little
delay possible. They wanted to show the world
that they could act we'll talk. so they undertook
the difficult ask of negotiating with each other for
the lowering of trade barriers and the narrowing of
preferential discrimination in international trade.
Thus while one group was drawing up the ITO
charter for final submission to the World Trade
Conference at Havana other groups were engaged
in actually negotiating with each other for the re-
ciprocal reduction of tariffs and other trade barriers
With 100 sets of complicated bilateral neeotia
tions under way simultaneously, the delegates regard
less of the outcome could at least have the satisfaction
Of knowing that they were taking part in the most
comprehensive trade conference in world history.
The result Of this phase of the work signed at
Geneva on October 80 and made public on No
vember 1S in the form of General Agreement on
Tariffs and Trade" All of the biateral negotiating
resulted in general multlatera agreement in which
each of the countries participating agrees to lower its
custom tariffs other barriers specifically
goods set forth in specified schedules. Thus, in
exchange for concessions from many countries on
such important exports cereal products fruit dairy
products tobacco, automobiles, industrial machinery
and rergerators the United States agrees to lower
its tariffs such typical imports wool, woolens,
nonferrous metals, sugar whisky and leather.
Understanding the Scope
The scope of the Geneva trade negotiations be
grasped when it Is realized that the tariff concessions
granted by all the participating countries account for
approximately twords of the import trade of those
countries and for almost one-haf OF total world
imports. Concessions include the elimination of cer-
tain duties Except In the of the United States
where duty reductions limited by law to so per
cent of existing rates. reductions of duty the binding
of certain duties at existing levels and the guarantee
of the continuation of dutyfree treatment of certain
imports British Empire countries agree to reduce their
preferential treatment substantial list Of products
and in some cases the preferentias eliminated
entirely. Under the terms of the agreement no new
preferences may be created and existing preference
may be increased
At this point, certain critics might well query
whether. with the world as It now Is, many Of these