Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-08-07
STOCKS
BY DARDEN CHANTBLTSS
Associated Press Runinnaa Rrifar

100000
Associated Press Business Writer
NEW YORK. - The lowly
chicken is forcing an inter-
national fight.
The United States, after
weeks of wrangling with the
European Common Market, has
announced it will retaliate
against tariff increases on
American poultry.
The Government, II q settle
ment is not reached, will raise
duties against European prod
ucts to equal the loss Of SAC
million a year in American
poultry exports.
The United States move would
affect the prices Americans pay
for imports, but the dollar
amount isn't nearly as impor-
tant as what the action means.
(The lost poultry sales are only
a small fraction of the $5.6
billion worth of United States
goods exported to the Common
Market each year,
Get@TOugh Policy
The move reflects a new
American attitude and tactic
a get tough policy. It also re-
fleets these newly complicated
circumstances in world trade:
The Common Market has as
serted itself as a strong willed
equal in trade dealings with
the United States.
Europe's farm blocs have
made it clear they are keeping
a sharp eye out for their own
interests, and these often clash
with Americas.
Europe, having trouble work.
ing out its own agricultural
policy, has resisted Unite d
States efforts to link agricul-
tural and industrial products
In trade talks.
Protectionist sentiment in
the United States-in the shoe
and textile industries especially
shows signs of rallying.
Retaliation Questioned
Some trade observers ques-
ton the wisdom of retaliation.
They say the situation is far
too complicated to be solved
merely by acting tough.
Others agree with Senator
Carlson, Republican Of Kansas,
that the United States might be
"out-traded and sold down the
river unless we adopt a hard
line"
In any case, there is a clear
precedent for the &C m m o n
Market action and the Ameri-
can reply. When the United
States raised tariffs on carpet
and glass last year, the Com
mon Market promptly boosted
its tariffs against American
chemicals.
Unless an exemption is taken.
this kind of tariff raising re-
verberates around the non-
Communist world because of
international trade rules that
say all cuts and boosts must
be applied to everyone.
Effects Assessed
One economist specializing
in Common Market affairs
says this could poison the
atmosphere for negotiations for
a long time to come"
Most observers doubt there
will be more than a round or
two of tariff retaliations. Still.
they say, negotiations can be
expected to move pretty slowly.
Negotiators on both sides will
be defensive, cautious and SEN
sitive to public opinion.
In America, this public opin-
ion has been shaken. In the
early postwar years, Americans
had grown progressively warm
toward liberalizing world
trade. The iGea Of trade, not
aid" to get ravaged nations
going again was appealing.
Then. when low-priced imports
began Frightening American
shop counters, buyers were
pleased anew.
They liked, too, the way
American producers cut costs
to meet foreign competition
(many economists say this was
the main reason why postwar
initiation tapered off.
Members Of Market
Finally, in the late 1950s.
a