"The results to date of existing trade agreements have been encouraging. The value of American trade with the countries with which reciprocal agreements have been concluded has shown a greater rate of growth than that with the nonagreement countries. We look forward with confidence to the maintenance of the trade agreement principles during the present conflict in Europe and after its conclusion." The attitude of the National Foreign Trade Council on the question of renewing the Reciprocal Trade Agreements Act in its present form has been summarized by our Chairman, Mr. James A. Farrell, in the following words: "The great problem before the United States is the character of international trade after this war. Our foreign trade policy has been devised with the object of counteracting the totalitarian trend toward bilateralization of trade. It seems to me most unwise at this stage to weaken American efforts in this direction by a reversal of our tariff-making policy, when it is so necessary to avoid unnecessary changes which would add to the difficulties created by the war. It should be our aim to consolidate our position in world trade and to postpone to the close of the war review of our trade agreement policy in the light of conditions then prevailing." Respectfully submitted for consideration by your Committee, I am, E. P. THOMAS, President. NATIONAL FOREIGN TRADE CONVENTION DECLARATIONS ON RECIPROCAL TRADE AGREEMENTS POLICY 1934-NEW YORK The Reciprocal Trade Agreements Act not only provides opportunities to reauce or remove trade obstructions but also to provide in advance for the adjustment of such currency depreciation, exchange manipulation, or other elements, which later might tend to make the provisions agreed upon less effective or inoperative. Encouragement should be given to exports which will create the largest amount of employment, and to the importation of suitable commodites for the purpose of creating foreign markets for our goods. Such commodities should be of a type to benefit American consumers, without danger of destructive competition to any producer activities conducted on an economically sound basis. In negotiating reciprocal trade agreements with foreign countries, the aim should also be to secure equal treatment for American products abroad. Section 338 of the Tariff Act contains provisions against discrimination by foreign countries. Our Government should endeavor to insure the equal treatment of American export trade by the removal of discriminations by foreign countries. In the negotiation of any reciprocal trade agreement, adequate provision should be made to guarantee the supply of dollar exchange, at official rates, promptly on the maturity of the American drafts in the respective foreign countries. Like provision should be made for the return of the interest or other proceeds from American investments. Provision also should be made for prompt and satisfactory agreements, with the aid of the Departments of State and Commerce and the Export-Import Banks, if necessary, for the prompt refunding, at rates of exchange comparable to those prevailing when the goods were sold, of blocked balances immobilized in foreign countries up to the date of the new reciprocal trade agreement. 1935-HOUSTON The Reciprocal Trade Agreements program has the support of this ConventionIt provides the only constructive alternative to extreme economic nationalism which has already proved so damaging in its limitations on freedom of world commerce. The reciprocal trade agreements made by the State Department during the last year have been beneficial to our export and import trade, and are thereby contributing to domestic recovery and demonstrating that prudent negotiations do improve international trade relations without impairing the general domestic welfare. We deem such agreements a sound method of trade encouragement. The alternative-State monopolies, discriminative quotas, controls of exchange, forced balancing of exports against imports, etc. are unsuited to traditional American policy. Evidence is accumulating that they are resulting in detriment to the countries practicing them and to their customers. We commend the Secretary of State for making the policy of reciprocal trade agreements effective. The Convention regards with satisfaction the conclusion of a reciprocal trade agreement between the United States and Canada, as evidence of the desire of both countries to free their commercial relations from a complexity of restraints damaging to both countries. We urge that the Government give attention to further trade agreements with the countries of Latin America, to the end that a larger commerce may be developed with our natural markets throughout the Western Hemisphere. Resumption of the multilateral system of exchange to avert permanent dicriminative trade controls, clearing agreements, currency depreciation, exchange manipulation, quotas and other unsettling devices, involves adherence to the unconditional most-favored-nation policy. This convention urges that the Reciprocal Trade Agreements policy be made permanent. It is recommended that the Government continue its efforts to secure the equal treatment of American exports through the removal by foreign countries of discriminations against the products of the United States, and that when all negotiations fail the President shall apply the additional duties in section 338 of the Tariff Act. The convention reiterates its declaration of 1934, that any foreign country accepting a reciprocal trade agreement should guarantee the supply of dollar exchange, at official rates, promptly on the maturity of the American drafts. Suitable provision should also be made for the return of the interest or other proceeds from American investments. The Export-Import Bank, when necessary and desirable, should facilitate at a reasonable rate of discount and under appropriate conditions, the liquidation of dollar obligations issued by a debtor foreign country or national bank for refunding at rates of exchange comparable to those prevailing when the goods were sold, and of blocked balances immobilized at the date of new reciprocal trade agreements. 1936-CHICAGO This convention continues to support the reciprocal trade agreements program and the unconditional most-favored-nation principle in which it is based It has proven to be the most effective means available for breaking down trade barriers which restrict world exchange of the products both of agriculture and industry. We recommend the renewal of the Reciprocal Trade Agreements Act. We urge that the procedure under which trade agreements are negotiated be reexamined and simplified, where possible. It would make for greater efficiency, for instance, if briefs and appearances at public hearings were specifically invited from only those industries or commodity groups on whose products the granting of concessions is under consideration by our Government. Under present procedure all whose trade might be affected, even remotely, must file briefs or enter appearance. The present practice of allowing all parties to make presentation on any item, however, should be continued. We call attention to the fact that the reciprocal principle is vitiated when a country having a trade agreement with the United States permits uncontrolled entry from a third country of goods which have been subsidized in any form to a degree prejudicial to our ability to compete. We believe suitable steps should be taken to remedy this situation. 1937-CLEVELAND This convention strongly supports the reciprocal trade agreements program based on the unconditional most-favored-nation principle. Our foreign trade has grown from $4,330,000,000 in 1935 to $4,872,000,000 in 1936, in which increase this program has played an important part, with benefit to American agriculture, American industry, and American labor. Our exports to trade-agreement countries during 1936 gained 14 percent over 1935, while the increase to non-agreement countries was 4 percent. Imports from trade-agreement countries during 1936 gained 22 percent, over the preceding year, while imports from other countries were greater by 16 percent. The more rapid increase of our exports to trade-agreement countries continued this year. During the first 9 months of 1937 our exports to agreement countries show a 44.5-percent gain over 1936, while the increase to others was 33 percent. In terms of the actual values, the increase in exports to the agreement countries has exceeded the amount of increase in imports from these countries. Thus, the increase in our exports to the agreement countries during the first 9 months of 1937 over 1936 amounted to $277,000,000, while the value of the increased imports from these countries was $203,000,000. This trade-agreement policy has won international recognition as an effective instrument for bringing about more rapid recovery and has been endorsed by the International Chamber of Commerce as a most practical means for improving the internal and external economy of all nations. We condemn the use in this and foreign countries of excise and turn-over taxes imposed solely on imported commodities, which tend to destroy the effectiveness of concessions granted in reciprocal trade agreements. 1938-NEW YORK This Convention continues its support of the reciprocal trade agreements program as a most effective instrument for the expansion of world trade. The Convention commends the objectives of agreements designed to enlarge and stabilize foreign markets for American products of agriculture and industry. The results to date have been encouraging. It is significant that the value of American exports to the countries with which reciprocal agreements have been concluded have shown a greater rate of growth than to the nonagreement countries. The Convention looks forward to the early conclusion of agreements with Great Britain and the British Crown Colonies and with Canada for the benefits they will bring in themselves and for the impetus they will give to the expansion of world trade on a nondiscriminatory basis. 1939-NEW YORK This Convention continues it support of the reciprocal trade agreements program as the most logical and effective method of permanently strengthening America's trade relations. The Convention urges the negotiation of further agreements, especially with Latin American countries, as a practical contribution to intercontinental economic solidarity. It is axiomatic that we can increase exports to Latin America only if we buy more of its products. We believe this can be accomplished without injury to our domestic production. The results to date of existing trade agreements have been encouraging. The value of American trade with the countries with which reciprocal agreements have been concluded has shown a greater rate of growth than that with the nonagreement countries. We look forward with confidence to the maintenance of the trade-agreement principles during the present conflict in Europe and after its conclusion. THE UNITED STATES POTTERS ASSOCIATION, New York, N. Y., March 4, 19340. BRIEF OF THE UNITED STATES POTTERS ASSOCIATION MEMORANDUM OF THE UNITED STATES POTTERS ASSOCIATION IN OPPOSITION TO EXTENDING THE AUTHORITY GIVEN TO THE PRESIDENT UNDER THE TARIFF ACT OF 1930 AS AMENDED AS PROVIDED FOR IN THE DOUGHTON BILL, HOUSE JOINT RESOLUTION 407. (By John E. Dowsing, tariff counsel) We oppose the extension of this bill for several reasons. The bill as originally passed has been declared by eminent lawyers in and out of Congress as definitely unconstitutional. We believe that Congress on the whole realizes the mistake that was made in divesting itself of its constitutional authority to enter into treaties with foreign countries and giving that authority to the Secretary of State. While the bill ostensibly empowers the President to enter into these treaties it is, of course, known and understood that the Secretary of State is the man who really enters into the treaties. These treaties are prepared and arranged without proper regard for the American industries and rarely, if ever have American industries been accorded the proper opportunity to be heard on matters affecting their very existence. The conduct of these treaty hearings and arrangements are, as no doubt your committee is thoroughly aware of, very one sided. The representatives of the country negotiating such treaties are fully informed of the status of the American industry that is to be affected by lowering of the tariff on the competitive merchandise when imported into this country, but the American industry is not afforded the same opportunity to know the reasons that are advanced by the negotiating country why they should be given preference on some rate of duty on some commodity. Further, we do not believe that when our domestic industries do appear before the committee that full weight is given to the testimony presented at that time by said American industry. In other words, that before the public hearing of the industry to be affected is permitted to come forward and present its case the concession to be given is practically concluded and arranged for and for that reason no great attention is paid to what American industries submit. We feel that this manner of writing a new tariff seriously infringes the prerogative of Congress and that is what these treaties amount to, the writing of a new tariff. The rates of duty are not only lowered but a new language is introduced changing completely the tariff set-up. This is too serious a matter to longer permit Government employees thoroughly unqualified by any business experience to pass on the needs of American industry and its millions of workmen in not only slashing the tariff to the contracting country but also broadcasting this beneficial concession to all other countries of the world regardless of whether such countries concede anything whatever for this benefit of sending their goods into this market at a greatly re duced rate of duty. Why this act was ever called in the first place a reciprocity act is not clear to anyone as it is not reciprocal in any sense nor intended to be. When through mutual concessions we agree to reduce tariff rates on a particular import from a given nation, we automatically extend the same concession to all nations under the favored-nation principle irrespective of whether they give us reciprocal concession. We do not believe that a legitimate reason can be presented by the Department of State for the continuance of this Reciprocity Act, particularly in view of the fact that it has definitely failed to accomplish that of greatly increasing the exports of our goods. At the time House Joint Resolution 96 was passed the State Department urged its passage on the grounds that it would increase our export business. The statistics show that the increase in exports has not been with the countries with whom these treaties were entered into. On the contrary, the increased exportations have been either with countries that we do not have treaties with or with those countries such as Japan, Germany, Italy, Great Britain, etc., to whom great quantities of materials necessary to carry on the war with which said countries are now engaged and would have been done regardless of any treaty. No treaty had anything to do with the terrific amount of exports of scrap iron, steel, automobiles, parts of automobiles, airplanes, etc., to Japan for the past 4 or 5 years. The same applies to the sale of war materials to Germany, Italy, Great Britain as well as France. Hence, it is apparent that the very purpове urged by Secretary Hull for the passing of the reciprocity bill in the first place is without merit and certainly should not be considered as a reason for extending the unconstitutional measure. It has been claimed that these reciprocal treaties were necessary to adjust the difficulties of agriculture. Under these treaties millions of dollars worth of agricultural products have been imported into this country at greatly reduced rates of duty. The American farmer has thus been deprived of the sale of millions of dollars worth of his products. In no instance have these so-called reciprocity trade treaties been advantageous to American industry and agriculture but the contrary is the case. We trust that the committee in its wisdom will not recommend a continuance of this Reciprocity Act and thereby fasten this very unjust legislation around the necks of American industry and American labor. It is respectfully submitted that your committee should be primarily interested in bringing about prosperity here in this country and giving employment to our millions of unemployed workmen. Jobs and jobs alone are the only thing that will bring back prosperity and jobs cannot be given unless our factories are permitted to work at full speed. We can, however, of course, through short-sighted policy continue to take care of the unemployed of Europe and let our millions walk the streets while various forms of taxes must be inaugurated to take care of these unemployed. On the one hand we will be declaring for America first in preference to the pauper countries of Europe, while on the other hand we will be declaring for free trade and the deliberate handing of our markets over to the foreigners. Surely there can be no question as to which the Senate Finance Committee should choose. If Congress honestly feels that the present tariff act should be modified, then a bill to that effect should be presented and hearings held before subcommittees o that American industries may have the opportunity of presenting their side of the case and have the facts and testimony adduced carefully considered and weighed and not permit a committee from some other branch of the Government to write an existing law off of our statute books. Supplementing this memorandum we wish to respectfully refer to our testimony given before the Ways and Means Committee March 8, 1934, appearing on page 227 of the published records and also on page 362 of the published records of the hearings before the Committee on Finance, United States Senate, February 10 through 15, 1937. Our objections set forth at that time are just as pertinent today. AMERICAN WATCH ASSEMBLERS' ASSOCIATION, INC., Committee on Finance, United States Senate, New York City, March 4, 1940. Washington, D. C. GENTLEMEN: The American Watch Assemblers' Association, an organization national in scope and representing more than 80 percent of importers of watches and watch parts wishes to go on record as unreservedly favoring the continuance and extention of the Trade Agreements Act. The vital task now confronting our domestic economy and the prosperity of the American people consists of arresting those forces of intense nationalism, such as high tariff walls, which are destroying foreign trade and thereby laying the foundations for world wars into which our own country must inevitably be drawn. Our industry employs American labor running into the thousands in the assembling of watches imported from various European countries, especially from Switzerland. The reciprocal trade agreements program has generally resulted in increasing imports and exports for the benefit of American industry as well as for the benefit of international goodwill. Valuable concessions have been obtained from Swiss manufacturers that have benefitted our industry as a result of these agreements. Smuggling, which was one of the most vexing problems confronting American watch manufacturers and dealers, has been almost entirely wiped out by virtue of the cooperation given by Swiss manufacturers under existing reciprocal trade practices. In contrast to the chaotic, prohibitive tariff rates in existence under previous tariff acts, the Trade Agreements Act of 1934 has placed the establishment of rates in the hands of experts qualified by training in the fields of commerce, agriculture, labor and industry in the scientific adjustment of tariffs to conform with shifting international circumstances and to correspond with the ever changing needs of the American people. The beneficial results following the enactment of this legislation make it imperative that it be continued. The American Watch Assemblers' Association speaks not only for its own members but for the thousands of small retail dealers who are dependent upon us for their continued existence in business. We urge the Committee on Finance to recommend without qualification the continuation of the existing trade agreements act in the interest of our industry in particular and in the further interest of general world peace promoted by such legislation. Enclosed you will a list of members of the American Watch Assemblers Association. Very respectfully yours, I. ROBBINS KORNBLIET, Executive Secretary. AMERICAN WATCH ASSEMBLERS' ASSOCIATION, INC., MEMBERSHIP LIST Ace Watch Co., 80 Nassau Street, New York City. Cardinal Watch & Diamond Co., 720 Olive Street, St. Louis, Mo. Tor, City. |