Evening star., 1949-05-29

ing contest in the Senate over the
Itinued. The average rate for the
Idutiable list in 1916 was 25.5 per
cent; in 1s47, 1874 per cent; in
194S, 1877 per cent. and an esti-
mate for 1949, made by experts. is
that 1t will be under 10 per cent.
A number of important steps in
the development of the trade
agreements system are under way.
GATT-the General Agreement
on Tariff Trade. to give 1t its full
name-went into effect last year.
President Truman having pro-
claimed 1t December 16. 1947, and
results are now beginning to show
up. GAIT Is a general agreement
involving % nations, among them
Chile, Cuba, Brazil. Celon. India,
Pakistan, Lebanon, Syria, South
Africa, Rhodesia. Canada. the
United Kingdom, Australia. France,
the Netherlands and Norway. In
cluded are many nations already
having trade agreements with the
United States-and the terms OF
those agreements are merely sus-
pended while GAIT Is in opera
ton. Under GAIT the United
States offers the same tariff con-
cessions to all. II the United
States should desire to modify
these concessions in any respect. 1t
must get the consent Of all the
rest of the nations. It could. II
satisfactory arrangement was not
reached, withdraw from GAIT.
At Annecy. France, the United
States Is now negotiating another
agreement with IL more countries
(there were 13. but Peru and Sal
vador have withdrawn, none of
which belong to GAIT. II these
agreements are finally made GAIT
will include SO nations.
GAIT is in operation. but ITO.
an overall international trade Or
ganization which is now projected,
and in negotiation of which So
nations sat in," is not and will
not be unless and until Congress
gives its approval. In ITO each
nation participating will have rep
resentatives, and its charter spe-
cifles the part each shall play.
Under ITO, If one nation says it
desires TO negotiate with the
United States for a reduction of
tariff duties, we negotiate. If we
do not wish to, we have the privi-
lege Of withdrawing from the or
ganization, a not too happy So
luton. ~
Industries Howl
The administrations question
to American industries which may
look with misgiving upon this
whole system of trade agreements
is-"Have you been hurt?" Some
OF the Enthusiastically few up
to date-have begun to answer
yes" and to protest loudly.
Among them are the fur and
matchmaking industries, some of
the textile producers, particularly
woollen. the fish industry and
some of the independent oil COM
panies.
The watchmakers are yelling
their heads of, because the Swiss
makes have taken over all but
IL per cent of the American
market-whereas before the war
the American producers had up
wards of SO per cent of that mar
ket. During the war, the Ameri-
can producers gave up watch
making and made precision in
struments for war purposes. The
Swiss moved in and took over
the market, and in 1948 we i'm
ported over 100000 watches. Tie
United States has . reciprocal
trade agreement with Switzer-
land-with no escape clause, and
the Swiss are not in GAIT.
The fur people are in . jam,
they say. Most undressed furs
are on the free list, and under
agreements we'd freeze furs on
the free list, with an advantage
to foreign countries. In 1947
Russia sent $165 .000, 900 worth of
furs into the country and. with
the imports from Canada, Nor
way. etc.. broke the back Of the
domestic fur industry. Over 100
American mink farms have gone
out of business this year. Russia
is not in GAIT, but under the
NEUTRALITY-SUSPICIOUS. clause Of
the tariff laws, she gets the same
treatment as other countries. The
fisheries are demanding help. say
ing they cannot compete with
Canadian. where the government
gives all kinds of aid. Textiles
are hit in spots. for example. the
producers of high-grade woollens
IN this country are having q hard
time meeting British competition.
and some of the cotton textile
producers. too. are complaining.
The independent oil producers
are unhappy over q 760. .000- barrel
a-day cutback, forced by official
action. Five Of the big Ameri-
can oil-producing companies have
foreign plants. and there is no
cutback on imports. With large
quantities of oil above ground and
in storage, mild winter in many
parts of the country. the price
Of gasoline still is high,
The Republicans In Congress.
under the lead Of Senator Millikin
of Colorado, ranking minority
member Of the Finance Committee
which handles all tariff legiSla-
ton, will fight for q retention In
the reciprocal trade agreements
law Of the peril point" clause.
This clause provides that the
United States Tariff Commission
shall investigate and report to
the President the point ut which
tariff rate reduction would I'M
peril an American industry. run
1t out OF business because Of
foreign competition. The Presi-