United States Trade Representative

“ The Office of the United States Trade Representative (USTR) is responsible for the preparation of this report. Acting U.S. Trade Representative Demetrios Marantis gratefully acknowledges in particular the contributions of Deputy U.S. Trade Representatives Michael Punke and Miriam Sapiro ”

“ In the consultations with a foreign country that the Trade Representative is required to request under section 303 (a) of the Act (19 U.S.C. 2413 (a) ) with respect to an investigation initiated by reason of section 2 of this order, the Trade Representative shall seek to negotiate an agreement that provides for the elimination of the practices that are the subject of the investigation as quickly as possible or, if that is not feasible, provides for compensatory trade benefits. ”

“ For example, it is a great advantage to them that their mutual commerce should be free, without the impediment of frontier duties and custom-houses. But this internal freedom can not exist if each state has the power of fixing the duties on interchange of commodities between itself and foreign countries, since every foreign product let in by one state would be let into all the rest; and hence all custom duties and trade regulations in the United States are made or repealed by the federal government exclusively. ”

“ The policy of the Democratic party—the revision of our tariff laws as indicated by the Democratic party, a revenue-only tariff, or progressive free trade—means a vast and sudden increase of importations. Is there a man here so dull as not to know that this means diminished work in our American shops? [Cheers and cries of "No, no!"] If some one says that labor is not fully employed now, do you hope it will be more fully employed when you have transferred one-third of the work done in our shops to foreign workshops? ”

“ In carrying out his responsibilities under this paragraph, the Trade Representative is authorized to delegate, to appropriate officials or agencies of the United States, authority to perform any functions necessary for the administration and implementation of the agreements or actions. The Trade Representative is authorized to make any changes in the TSUS which may be necessary to carry out the agreements or actions. ”

“ We want to work with Congress on a competitiveness package that will complement these efforts. For Congress to place severe restrictions on international trade with tariffs and barriers and to limit my ability to utilize our trade laws when necessary, would damage our own prosperity and that of virtually the entire world. I urge Congress to bear this in mind. As major trade legislation comes to the floor, the United States is already becoming more competitive. Now, it's up to Congress to show that it understands economic reality. ”

“ The United States urges its trading partners to reject such policies. Further, the United States urges that, in adopting innovation and other policies, trading partners take account of the increasingly cross-border nature of commercial research and development, and of the importance of voluntary and mutually agreed-upon commercial partnerships. ”

“ To seize that initiative, I shall shortly send to the Congress a new five-year Trade Expansion Action, far-reaching in scope but designed with great care to make certain that its benefits to our people far outweigh any risks. The bill will permit the gradual elimination of tariffs here in the United States and in the Common Market on those items in which we together supply 80 percent of the world's trade--mostly items in which our own ability to compete is demonstrated by the fact that we sell abroad, in these items, substantially more than we import. ”

“ United States membership in the Organization will evidence our continuing desire to cooperate in promoting an expanded trade among the free nations. Thus the Organization, as proposed, is admirably suited to our own interests and to those of like-minded nations in working for steady expansion of trade and closer economic cooperation. Being strictly an administrative entity, the Organization for Trade Cooperation cannot, of course, alter the control by Congress of the tariff, import, and customs policies of the United States. ”

“ With the advent of a new tariff policy not only calculated to relieve the consumers of our land in the cost of their daily life, but to invite a better development of American thrift and create for us closer and more profitable commercial relations with the rest of the world, it follows as a logical and imperative necessity that we should at once remove the chief if not the only obstacle which has so long prevented our participation in the foreign carrying trade of the sea. ”

“ It I is an effort frankly directed to the increase of American trade upon the axiomatic principle that the Government of the United States shall extend all proper support to every legitimate and beneficial American enterprise abroad. How great have been the results of this diplomacy, coupled with the maximum and minimum provision of the tariff law, will be seen by some consideration of the wonderful increase in the export trade of the United States. Because modern diplomacy is commercial, there has been a disposition in some quarters to attribute to it none but materialistic aims. ”

“ They should not be left to the vicissitudes of the sharp competition for materials and for industrial facilities which is now to set in. I hope, therefore, that the Congress will not be unwilling, if it should become necessary, to grant to some such agency as the War Trade Board the right to establish priorities of export and supply for the benefit of these people whom we have been so happy to assist in saving from the German terror and whom we must not now thoughtlessly leave to shift for themselves in a pitiless competitive market. ”

“ Trade promotion authority is a very important development so that the President can enter into trade agreements throughout the world. It's important for the Senate not to retreat within the United States borders. It's important for the Senate not to send signals that the United States is isolationist and, therefore, it's important that they give him trade promotion authority. Trade promotion authority is good for the economy. Workers involved in America's export industry tend to make more money than workers involved in domestic products. Today there are 130 free trade agreements in the world ”

“ 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. ”

“ We cannot doubt, without impugning their integrity, that if free to act upon their convictions they would so revise our laws as to lay the burden of the customs revenue upon articles that are not produced in this country, and to place upon the free list all competing foreign products. I do not stop to refute this theory as to the effect of our tariff duties. Those who advance it are students of maxims and not of the markets. They may be safely allowed to call their project "Tariff Reform," if the people understand that in the end the argument compels free trade in all competing products. ”

“ Now, on Friday, Republicans and Democrats in the House of Representatives voted to help the United States negotiate new trade deals that are both free and fair – deals that expand opportunity for our workers and our businesses alike. ”

“ That is purely revenue tariff, and is practically free trade.
Against this the Republican party proposes that our tariff duty shall be of an intelligent purpose, be levied chiefly upon competing articles. [Cheers.] That our American workmen shall have the benefit of discriminating duties upon the products of their labor. [Cheers.] The Democratic policy increases importation, and, by so much, diminishes the work to be done in America. It transfers work from the shops of South Chicago to Birmingham. ”

“ I can not too strongly urge in early completion of this necessary legislation It is needed to stabilize our industry at home; it is essential to make more definite our trade relations abroad. More, it is vital to the preservation of many of our own industries which contribute so notably to the very lifeblood of our Nation.
There is now, and there always will be, a storm of conflicting opinion about any tariff revision. We can not go far wrong when we base our tariffs on the policy of preserving the productive activities which enhance employment and add to our national prosperity. ”

“ Congress has taken a great step towards the scientific disentanglement of the tariff subject, and towards the consequent enlargement of our foreign trade, and it only remains for the people of the United States to give their cordial support to the board in every reasonable endeavor it makes to obtain the facts which are at the basis of the solution of this intricate and vexing question. ”

“ 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. ”

“ And neither we nor the members of the European Common Market are so affluent that we can long afford to shelter high cost farms or factories from the winds of foreign competition, or to restrict the channels of trade with other nations of the free world. If the Common Market should move toward protectionism and restrictionism, it would undermine its own basic principles. This Government means to use the authority conferred on it last year by the Congress to encourage trade expansion on both sides of the Atlantic and around the world. ”

“ If our tariffs are to be made equitable, and not necessarily burden our imports and hinder our trade abroad, frequent adjustment will be necessary for years to come. Knowing the impossibility of modification by act of Congress for any one or a score of lines without involving a long array of schedules, I think we shall go a long ways toward stabilization, if there is recognition of the Tariff Commission's fitness to recommend urgent changes by proclamation. ”

“ In 1846, under President Polk, the liberal Democratic tariff of Secretary Walker was framed, under which our exports increased from $99,299,766 in 1845, to $196,689,718 in 1851, and our net imports from $101,907,734 to $194,526,639. In 1856, under Democratic rule, our net imports were $298,261,364, in specie value, and our exports $310,586,330. In that year the Democratic Convention declared “the time has come for the people of the United States to declare themselves in favor of progressive free trade throughout the world.” ”

“ Commencement of Negotiations.—In order to contribute to the continued economic expansion of the United States, the President shall commence negotiations covering tariff and nontariff barriers affecting any industry, product, or service sector, and expand existing sectoral agreements to countries that are not parties to those agreements, in cases where the President determines that such negotiations are feasible and timely and would benefit the United States. ”

“ Section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483) , authorizes the President to embody in the Harmonized Tariff Schedule of the United States the substance of statutes affecting import treatment, and actions thereunder, including the removal, modification, continuance, or imposition of any rate of duty or other import restriction. ”

“ The President believes that Congress should take up trade promotion authority and pass it this fall. The President thinks failure to pass trade promotion authority this fall would be a retreat from the United States' role in the world. That would hurt the economy and it would be an unwise delay that could hinder their chances of getting trade promotion authority passed. ”

“ The earth is thirsting for the cup of good will, understanding is its fountain source. I would like to acclaim an era of good feeling amid dependable prosperity and all the blessings which attend.
It has been proved again and again that we cannot, while throwing our markets open to the world, maintain American standards of living and opportunity, and hold our industrial eminence in such unequal competition. There is a luring fallacy in the theory of banished barriers of trade, but preserved American standards require our higher production costs to be reflected in our tariffs on imports. ”

“ 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. ”

“ Despite the efforts repeated in every political campaign to stigmatise the Democratic party as a free-trade party, there has never been a tariff act passed since the government came into existence in which the duties were not levied with a view to giving the American producer an advantage over his foreign competitor. ”