Evening star. [volume] (Washington, D.C.) 1854-1972, 1953-02-28
The Question of Tariffs

One of the important and significant de-
cisionS to be made by the new Congress is that
pertaining to the Reciprocal Trade Agreements
Act, due to expire next June unless affirmative
legislative action is taken.
In his state the Union message, Presi-
dent Eisenhower pledged that the foreign policy
of his administration will recognize the impor-
lance of profitable and equitable world trade.
To implement this pledge he proposed that our
customs regulations be simplifed and that Con-
gress study and extend "by appropriate legisla-
ton" the trade agreements act. His initial leg
islative program, discussed with congressional
leaders on the following Monday, included both
Of these actions among it's II recommendations.
The reciprocal trade agreements program
has been an integral part of American foreign
economic policy for nearly 20 years. It has been
a controversial concept from the beginning and
periodic renewal of the statute has been &C
companied usually by wide split in congress
sional opinion. Principal opposition has come
from the Republican Side additionally con-
sidered high-tarif party, but there has been
reSiStance-or at least a demand for special
protection business agricultural and
labor elements The President took cognizance
of these In qualifying his recommendation by
saying that whatever action is taken must not
ignore legitimate safeguards of domestic indus
tries, agriculture and labor standards"
American policy in the sphere of world
trade is tied closely today to the whole problem
of strengthening both the economic and defen-
sive capacities of the free nations Our allies in
Western Europe, in particular, have become in
creasingly insstent that trade, not aid" should
be the keystone of our continuing economic
relationship and the lowering of our tariff bar
riers has been one of their targets.
strong voice in support of this philosophy
Gaar hnaN roiC h1yu nd r..
ing in Chicago, the automobile executive pro-
posed a four-point program by which the
United States might lead the free world to
freer trade" First of his points was the writing
of a new law-he called the reciprocal trade act
outmoded and well-riddled with holes-to en-
courage the possible elimination of all tariffs"
In defending his bold approach, Mr.. Ford
emphasized the tremendous power and produc-
tivity of our own industrial system and the alb
sorptive capacity of the American market. He
described senseleSS the practice of substituting
ineficiency through tariff protection, although
granting that gradual reductions" of tariffs
might be desirable in hardship cases.
It Is not difficult to share within reason
Mr.. Ford's pride and confidence in American
economic strength, but it is equally easy to rec
ognize his formula as politically unrealistic and
impractical. The maintenance of tariffs is not
by any means exclusively an American habit,
nor is it necessarily device for protecting
weak and useless industries. While the Ameri-
can automotive industry is undoubtedly strong
enough to hold its own with that of the rest of
the world in free competition, there are other
strategically important or otherwise desirable
American industries and labor standards that
would be seriously endangered by the dumping
Of low-cost foreign goods in our markets Nor
Is there any assurance that an indiscriminate
removal Of our own tariffs, despite the example
set, would be matched by similar action In
countries abroad.
Mr.. Ford may have set up q global ideal