Evening star., 1962-09-25

q turning point. 1t has made
the decision to take a giant
step toward a commercial
financial partnership with a
united European Community
and has rejected a giant step !
backward toward economic iso-
lationism and the status of a
second-rate economic power.
This is the significance Of
the Trade Expansion Act of
1862 which is through Congress
in virtually the form 1t was
submitted by the White House
in January. /
Under this bill. President /
Kennedy will have sweeping |
powers to reduce the tariff |
walls which protect United d
States industries from foreign |
competition in return for SINH
lar concessions by foreigners
to us. As an illustration. he'll
be able during a five-year peri
cd to negotiate the elimina-
ton of tariffs on all categor-
les of goods in which the
United States and the European
Common Market control 80 per
cent or more Of the free worlds
trade. This includes products
ranging from aircraft and autos
to cosmetics and glassware.
He'll be able to cut tariffs by |
SO per cent on other broad
categories of goods to the low
est levels in modern times.
Bargaining Possible
While he'll also be able to
raise tariffs by as much as
700 per cent and impose i'm
port quotas II there is over
whelming evidence Of great in
Jury to American industries.
the whole emphasis of the bill
is away from the traditional
protectionism. Congress has
accepted the revolutionary con-
cept Of helping Americas hurt
by a rising tide Of imports to
adjust" to the competition.
Instead Of being protected by
tariffs and import quotas, bus
inessmen will get tax relief,
loans, assistance in reorganiz-
ing their plants to produce
competitive goods. Workers who
lose their jobs because Of i'm
ports viii get retraining for
other jobs and cash payments
of up to $61 a week for as long
as7S weeks.
There is no question that this
is an historic piece of legisla-
ton. setting the United States
and Europe on paths we've
never Travelled together before.
Here are just four Of the i'm
plications:
pD By this bill, Congress has
said to industry. labor, agri-
culture, Go ahead, compete in
the booming world markets as
you've never competed before.
We've given the President the
power to help you compete by
letting him bargain down our
tariff walls If the booming
Common Market nations bar
gain down theirs against us.
We're not afraid of Unite d
States industry's a ability to
compete with lower-wage ma
tions, nor do we shrink from
involving ourselves in o trade
partnership with the worlds
toughest competitors and most
iI1dustrialized nations"
This is equivalent to rous-
ing vote of confidence in
United States industry's cour-
age. skills and aggressiveness.
d2) Congress has told pro-
tectionist forces that their day
is, over. Until the end last
week, protectioniSts were fight
ing to emasculate the bill in
the Senate. but on amendment
after amendment they were de-
feated. What Congress agreed
on was that the national in
terest overrideS local interests
and that the way to offset
damage to local interests by
imports is through the ad-
justment process. Unless Unit
edAStates industry is so badly
trpnnced by competition that
we dare not let down our bar
riers, the era of trade walls
between us and Europe is dead.
Blow to Russia
90 Congress has accepted
the notion, whether or not it
says so out loud, that 1t is
right for the United States and
a United Europe to move into
a single low and free trade
area and from there into an
era of unprecedented unity as
well as competitiveness. Almost
anyone can foresee how mu-
tual bargaining, concessions
and agreements in the eco
nomic-financial-trade spheres
will lead into mutual bargain
ing, concessions and agreements
in the political social diplo-
matte spheres.
"a Finally, Congress well