The Tariff Fight

The tempo of the debate on foreign trade was stepped up sharply last week. With the time drawing closer for the Randall Commission to submit its trade-policy recommendations, two trade organizations turned in fat reports. And the Committee for a National Trade Policy, headed by Detroit Industrialist John S. Coleman, submitted nine proposals for breaking down tariff barriers.

Cause for Complaint? Though it took no position on foreign-trade policy, the National Electrical Manufacturers Association, in a 240-page report, told of stiffening competition from abroad: imports of electrical machinery and equipment increased elevenfold between 1939 and 1952, while exports only quintupled. In the first six months of this year imports increased by 50%, v. an export gain of only 9%. But the dollar figures showed that the industry has small cause for complaint: U.S. exports in 1952 totaled $616 million, v. imports of $27 million. And imports are still only a tiny fraction of domestic output (about 1/3of 1%).

The Synthetic Organic Chemical Manufacturers Association flatly opposed tariff reductions. It argued in its 200-page report that "tariff cuts would be a cruel deception to the American people because they wouldn't begin to accomplish their proclaimed objective of 'trade, not aid.' " A lower protective tariff, said the association, which includes Du Pont, Dow Chemical Co. and General Aniline & Film Corp., would cut back production of essential chemicals, halt expansion plans and force the industry to curtail its $204 million-a-year research program. The industry is itself the product of protective tariffs, said the report; it got its start when chemical imports from Germany were cut off in World War I, and was built up by a postwar tariff policy.

Special Assistance. On the other side, Free-Trader Coleman, who had already appeared personally before the commission (TIME, Nov. 9), offered his committee's detailed report, urging that "total national interest" rather than special private interests be used to decide trade policies. Among its proposals: give the President the power to negotiate reciprocal trade agreements to run for at least five years, eliminate the "Buy American" Act, simplify customs procedures, gradually reduce tariffs and quotas. Elimination of all tariffs, the committe said (though not advocating it), would affect fewer than 1% (215,000 to 465,000) of all U.S. workers.

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