Trade protectionism

“ For its part, the United States must work to regain and sustain our competitiveness in world markets; continue with its efforts to expand and improve the ground rules of world trade provided by the General Agreement on Tariffs and Trade; and resist pressures toward protectionism. The futile prescription of protectionism would only fuel inflation; lower economic growth ”

“ 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. ”

“ Duties should be so high that our manufacturers can fairly compete with the foreign product, but not so high as to enable them to drive out the foreign article, enjoy a monopoly of the trade, and regulate the price as they please. To this extent I am a protectionist. If our government pursues this line of policy steadily, we shall, year by year, approach more nearly to the basis of free trade, because we shall be more nearly able to compete with other nations on equal terms. I am for a protection which leads to ultimate free trade. ”

“ Emphasis is laid instead on the fact that in the last analysis the trade is of goods for goods, not of money for goods, and that a tariff on imports reduces, not only imports, but exports also,—that it merely interrupts temporarily the virtual barter between nations. ”

“ It is in America's economic and national security interests to promote commerce by strengthening our relationships with our trading partners, vigorously enforcing our Nation's trade laws, improving the overall conditions for competition and trade, and ensuring the strength of our manufacturing and defense industrial bases. For many years, the United States has not obtained the full scope of benefits anticipated under a number of international trade agreements or from participating in the World Trade Organization. ”

“ One of the chief complaints against the protective system is its alleged hindrance to foreign trade and a foreign market for our own products. It is argued that if we could import raw material from other countries free, and manufacture such raw material into products for use, we could export them at great profit, and thus secure a standing in the markets of the world. ”

“ But in regard to those duties on foreign commodities which do not operate as protection, but are maintained solely for revenue, and which do not touch either the necessaries of life or the materials and instruments of production, it is his opinion that any relaxation of such duties, beyond what may be required by the interest of the revenue itself, should in general be made contingent upon the adoption of some corresponding degree of freedom of trade with this country, by the nation from which the commodities are imported. ”

“ 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. ”

“ On the other hand, there are imports so entirely of foreign origin, and so free from considerations of competition with domestic industry, that a large revenue may be raised upon them in the custom-house, without disturbing the freedom or equity of international trade. ”

“ We will encourage enterprises to make good use of preferential tariff treatment, cumulation of origin, and other rules under the RCEP framework to expand cooperation on trade and investment. We will work to negotiate and conclude high-standard free trade agreements with more countries and regions. ”

“ While it has a less palpable influence in the generality of cases, the protectionist policy is not less unfavorable to industry as a whole. If the market for most of our export products is restricted, one of the causes for it is to be found in the fact that between 1878 and 1880 France converted most of the nations to protectionism; we set them the example and they followed it. We repel foreign wheat, cattle, and cotton-thread, and they repel our articles de Paris, silks, furniture, and wines. ”

“ It is the policy of this Administration to ensure the right of all American industries to compete fairly in world markets by vigorously enforcing our trading rights worldwide. I am convinced that in an environment of free and fair trade, our manufacturing industries can meet any foreign competitors in price, quality, and reliability. ”

“ When Congress passed the 1930 Tariff Act there were roughly 700 categories of imports. Since that time—with the adoption of the Reciprocal Trade Agreement Act—the number of categories has been increased by the thousands. Most of the increases were in categories created to help foreign countries expand their trade in the United States. The duty on a comparatively few imports has been revised upward as a measure of protecting some of the American industries from lower-cost foreign competition. ”

“ Is not the balance of trade, according to the protection theory, to that amount in our favor? Then let the protectionist turn pirate and scuttle and sink all the vessels laden with our exports, and soon the balance of trade in our favor will be large enough to satisfy even most advocates of the American protective system. The true theory is that in commerce the overplus of the importation above the exportation represents the profit accruing to the country. This overplus, deducting the expenses, is real wealth added to the land. ”

“ Subject to this proviso of the proper protection necessary to our industrial well-being at home, the principle of reciprocity must command our hearty support. The phenomenal growth of our export trade emphasizes the urgency of the need for wider markets and for a liberal policy in dealing with foreign nations. Whatever is merely petty and vexatious in the way of trade restrictions should be avoided. The customers to whom we dispose of our surplus products in the long run, directly or indirectly, purchase those surplus products by giving us something in return. ”

“ All legitimate public and private trade shall be protected. Control shall be exercised over foreign trade and the policy of protecting trade shall be adopted. Freedom of domestic trade shall be established under a unified economic state plan, but commercial speculation disturbing the market shall be strictly prohibited. State-owned trading organizations shall assume the responsibility of adjusting supply and demand, stabilizing commodity prices and assisting the people's co-operatives. ”

“ 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. ”

“ If developing countries are to reconcile a need for rapid export growth with a need to conserve the resource base, it is imperative that they enjoy access to industrial country markets for non traditional exports while they enjoy a comparative advantage. In many cases, the problems of protectionism relate to manufactures ”

“ 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. ”

“ 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 true, that we cannot remain in the relation of seller, only to foreign powers, for any length of time; but if, as I have no doubt, our agriculture will continue to supply, as far as it can profitably, to the extent of the limits of foreign demand, we shall receive not only in return many of the articles on which the tariff operates, for our own consumption, but they may also form the objects of trade with South America and other powers, and our comforts may be multiplied by the importation of other articles. ”

“ I believe that, if only we could shake off the fetters of a narrow and pedantic theory, and freely reshape our own system of import duties on principles of obvious common sense, we should be able at one and the same time to promote trade within the Empire, to strengthen our hands in commercial negotiations with foreign countries, and to render tardy justice to our home industries.
The Free Trader goes on the principle of placing duties on a very few articles only, articles, generally, of universal consumption, and of making those duties very high ones. ”

“ The protective system has thus not only the effect of bringing consumers to take their places by the side of the producer, facilitating the consumption on the land of the products of the land, and facilitating also the exportation of the surplus to foreign markets by diminishing outward freights, but the further one of producing among our neighbours a strong desire for the establishment of the same perfect freedom of trade that now exists among the several states, by becoming themselves a part of the Union. ”

“ Although then the rise in the price of most of our own commodities, would for a time check exportation generally, and might permanently prevent the exportation of a few commodities, it could not materially interfere with foreign trade, and would not place us under any comparative disadvantage as far as regarded competition in foreign markets. ”

“ The import of manufactured articles became more and more essential, and alike for the importing country and for the exporting countries trade was more lucrative in a large area with a centralised and unified administration, freed from tariff hindrances imposed by petty states. ”

“ One of the greatest of our economic restrictions is our present tariff law, which raised rates of duties on imports to higher points than ever before, with the avowed purpose of restricting foreign competition. In other words we have set up a great barrier against foreign trade. We say specifically that we do not want to let our people buy freely the products of Europe’s work. Yet work is the chief thing that. impoverished Europe has to sell. ”

“ Pursuant to section 203 (a) (1) (A) of the Trade Act (19 U.S.C. 2253 (a) (1) (A) ) , I further determined that these actions would facilitate efforts by the domestic industry to make a positive adjustment to import competition and provide greater economic and social benefits than costs. ”

“ A system which provides a mutual exchange of commodities is manifestly essential to the continued and healthful growth of our export trade. We must not repose in fancied security that we can forever sell everything and buy little or nothing. If such a thing were possible it would not be best for us or those with whom we deal. We should take from our customers such of their products as we can use without harm to our industries and labor. ”

“ The common commercial policy shall be based on uniform principles, particularly with regard to changes in tariff rates, the conclusion of tariff and trade agreements relating to trade in goods and services, and the commercial aspects of intellectual property, foreign direct investment, the achievement of uniformity in measures of liberalisation, export policy and measures to protect trade such as those to be taken in the event of dumping or subsidies. ”

“ It was shown, however, in our analysis of the effects of international trade, as it had been often shown by former writers, that the importation of foreign commodities, in the common course of traffic, never takes place, except when it is, economically speaking, a national good, by causing the same amount of commodities to be obtained at a smaller cost of labour and capital to the country. To prohibit, therefore, this importation, or impose duties which prevent it, is to render the labour and capital of the country less efficient in production than they would otherwise be ”

“ But if free raw material be necessary to secure an export trade and the foreign markets, then I answer that our manufacturers to-day have substantial free trade in foreign raw materials which they make into the finished product in the United States, provided they export it. ”

“ It consists in such a revision of the tariff as will deliver our manufacturing industries of those artificial burdens which increase the cost of the things they have to use in production, thus permitting them to obtain those things as cheaply and advantageously as their foreign competitors obtain them, and in that way giving them a fair chance for the export trade. ”