5.5 Agriculture depends on exports PERCENT OF U.S. PRODUCTION EXPORTED 1948 4.5 Canned Fruits 3.0 50 FULL EMPLOYMENT Our goal of full employment depends, in part, on a healthy export In addition to these material benefits that we derive from foreign REDUCING BARRIERS TO INTERNATIONAL TRADE The world needs a high level of international trade. private barriers, however, tend to keep trade at a low level. Public and in one country may produce a large volume of goods which they want. to sell in other countries and which the people of other countries would like to buy, but their business may be stifled by barriers to international trade. TARIFFS AND QUOTAS High tariffs and rigid quotas raise the cost of those goods and therefore limit the volume of trade. Some tariffs are originally erected to protect infant industries, but unfortunately they are often maintained long after the maturity of the infant. The result is a restriction of fair competitive trade, in which the consumer is the ultimate loser. INTERNAL REGULATIONS Internal regulations and taxes applied to imports cause uncertainty and raise costs. One such international barrier to trade is the statutory provision which prevents a governmental agency from buying foreign materials or commodities manufactured from foreign materials unless the prices of corresponding domestic items are "unreasonable." CUSTOMS BARRIERS Arbitrary and confusing customs red tape causes delays, raises costs, and makes markets uncertain, thereby decreasing the flow of trade. For instance, an importer cannot be sure whether a tire is going to be classified as a tire or as an article produced in part of carbon, or whether a miniature piano will be considered a musical instrument or a piece of furniture. |