Trade Act of 1974

“ A protective tariff is, of course, a plain case of preferential class legislation, and so was the original Inter-state Commerce Act. They were designed to substitute artificial preferences for those effected by unregulated individual action, on the ground that the proposed modification of the natural course of trade would contribute to the general economic prosperity. ”

“ This is done by laying a tariff upon imports. But the American shipping is now and always has been protected that far—absolutely protected, in fact, by prohibition. The importation of ships has been forbidden, and the use of foreign ships in the "home market" has been reserved to home-built ships for nearly 100 years. If "protection" could enable any industry to expand from the "home market" to the foreign, then the coasting trade industry should have expanded long since over all the world. ”

“ Every administration’s trade strategy depends on a productive partnership with Congress. After a gap of 8 years, the Administration reestablished majority support in the Congress for trade liberalization by passing Trade Promotion Authority and the other market opening measures for developing countries in the Trade Act of 2002. This Administration will work with Congress to enact new bilateral, regional, and global trade agreements that will be concluded under the recently passed Trade Promotion Authority. Promote the connection between trade and development. ”

“ Less than two years hence, the tariff levies on our exports to the United States will be in operation. By that time we shall be manufacturing articles and goods needing export markets and facing stiff competition there. We must therefore, attend to the problem of foreign trade promotion. We must locate markets for our products. This means that our home production should be placed on a competitive basis abroad not only in price but in quality. But more than anything else, our home market should be developed in order to promote our foreign trade. ”

“ Investors, demanding interest payments from foreign debtors, will no longer be able to maintain the attitude that imports menace the prosperity of the country and should be cut down by the restrictions of the tariff. Exporters will find that the current is set against them, and that they can broaden their market only as they stimulate still greater growth in the import trade. ”

“ It is by no means desirable, however, that the policy under consideration should be applied to these countries alone. The healthful enlargement of our trade with Europe, Asia, and Africa should be sought by reducing tariff burdens on such of their wares as neither we nor the other American States are fitted to produce, and thus enabling ourselves to obtain in return a better market for our supplies of food, of raw materials, and of the manufactures in which we excel. ”

“ While the tariff of the last session of Congress was a subject of legislative deliberation it was foretold by some of its opposers that one of its necessary consequences would be to impair the revenue. It is yet too soon to pronounce with confidence that this prediction was erroneous. The obstruction of one avenue of trade not unfrequently opens an issue to another. The consequence of the tariff will be to increase the exportation and to diminish the importation of some specific articles ”

“ Imports can also benefit the United States by increasing consumer choice while lowering prices for millions of working families. In addition, imports can support employment for retailers, distributors, the transportation sector, and domestic manufacturers which rely on global supply chains to make products for both the U.S. and international markets. We must ensure that the benefits of trade are spread more widely. This can be achieved by training and supporting Americans and ensuring that trade agreements provide the economic opportunities that Americans deserve. ”

“ As I have indicated, it is increasingly clear that to obtain and maintain that equity and substantial equality of treatment essential to the flourishing foreign trade, which becomes year by year more important to the industrial and commercial welfare of the United States, we should have a flexibility of tariff sufficient for the give and take of negotiation by the Department of State on behalf of our commerce and industry. ”

“ To restore world trade we have recently taken the lead in bringing about the greatest reduction of world tariffs that the world has ever seen. The extension of the provisions of the Reciprocal Trade Agreements Act, which made this achievement possible, is of extreme importance. We must also go on to support the International Trade Organization, through which we hope to obtain worldwide agreement on a code of fair conduct in international trade. ”

“ The effect of a tax on imports is likened to that of a tax on exports. But in respect to effects on price levels a tax on imports and a tax on exports are diametrically opposed. If we place our tax on exports, we first interfere with exports. The imports are not checked until money has flowed out and has reduced the general price level enough to destroy the "unfavorable" balance of trade first created. We conclude that the general purchasing power of money is reduced by a tariff and that it would be increased by a tax on exports. ”

“ The United States has from the beginning of its government declared that one object of duties on imports is the encouragement of manufactures in the United States, and, whatever may be the dogma inserted in a political party platform, tariff legislation will continue to have a double object, revenue and protection. ”

“ In this increasingly interdependent world, American business must focus more of its efforts on exporting our goods and services. A promising new tool is now available to increase export participation: the Export Trading Company Act of 1982. This law will help American businesses, particularly small and medium-sized companies, to organize themselves for stronger export efforts with considerably less hindrance by government regulation. ”

“ After 1967, however, the inability to generate enough exports salable in Western markets to balance imports forced the country to turn increasingly to the Soviet Union and other Eastern European countries for its import needs.
Foreign trade is a state monopoly. Trade policy is established by the PCR and the government, and its implementation is the responsibility of the Ministry of Foreign Trade. ”

“ Ranging from technological innovation incentives and government procurement, through subsidies on specific sectors and companies, to tariff protection and trade agreements, these industrial policies have played a vital role in enhancing the competitive strength of US industries.
To strengthen its global leadership in manufacturing, the US has in recent years formulated a large number of industrial policies. ”

“ The principal factor in the disproportion between the production and consumption of certain articles is the customs tariff. It acts in two ways: by depriving the export trade of the markets to which it has been accustomed, and by stimulating new manufactures which are destined in their turn to find no market. ”

“ The majority asserts that Congress thought it could increase American exports by ending competition for foreign shipments among American firms without impairing domestic competition. That is correct. Congress recognized that trade in foreign nations is not ringed about with the antitrust restrictions which keep domestic industry competitive. Congress found foreign trusts to have substantial advantages over their American competitors. They can offer to extend credit and fill large orders which no single American firm could fill ”

“ A protectionist trade bill is a serious threat to our export boom. It's a serious threat to the millions of American jobs that depend upon international trade. It is filled with scores of provisions that are protectionist and defeatist. My veto pen is ready if the final bill remains antitrade, anticonsumer, antijobs, and antigrowth. However, the administration is willing to work diligently with Congress to produce a bill that would increase our international competitiveness and complement our efforts to promote trade, exports, jobs, and productivity, not stymie them. ”

“ In the matter of trade, we are anxious to find out how well disposed the United States is in giving our products equitable treatment, and how willing it is to remove tariff and non-tariff barriers to trade. ”

“ Those who have advocated a protective tariff can well afford to have their disastrous forecasts of a change of policy disappointed. If a system of customs duties can be framed that will set the idle wheels and looms of Europe in motion and crowd our warehouses with foreign-made goods and at the same time keep our own mills busy; that will give us an increased participation in the "markets of the world" of greater value than the home market we surrender ”

“ I therefore strongly recommend a modification of the present tariff, which has prostrated some of our most important and necessary manufactures, and that specific duties be imposed sufficient to raise the requisite revenue, making such discriminations in favor of the industrial pursuits of our own country as to encourage home production without excluding foreign competition. It is also important that an unfortunate provision in the present tariff, which imposes a much higher duty upon the raw material that enters into our manufactures than upon the manufactured article, should be remedied. ”