Should the U.S.A. Continue Reciprocal Trade Agreements O The debate-of-the-month Photo: Wilson Pain YES! - They Work for World Prosperity five countries, and America's for- eign trade had risen by more than one-third, to $4,330,000,000. By the Says Arvid L. Frank end of 1939, trade agreements had Executive Director, United States Associates, been concluded with 23 countries International Chamber of Commerce and foreign trade had climbed to Bachrach $5,495,000,000. During the war T HE United joined the breadlines. American years agreements were negotiated States should crop surpluses stayed at home and with six more countries. continue the broke down the home markets. The influence of trade agree- reciprocal trade In order to restore to American ments as a factor in this mounting program as a mov- products the lost foreign market trade may be seen in a comparison ing force in a -and everything it meant to of the annual averages of the dynamic and ex- American businessmen, workers, years 1934-35 with the years 1938- panding world and farmers-the Congress in 39. By the latter period U. S. Once chairman of economy dedicat- 1934 passed the Trade Agree- exports to trade-agreement coun- the trade-agree- ments committee of ed to raising the ments Act, which since has been tries had increased 63 percent, as the Automobile standards of liv- Manufacturers' As- renewed four times. This Act, against an increase of only 32 sociation, Mr. ing in the United now extended to June 12, 1948, percent in exports to nonagree- Frank is, as well, a former president of States and the authorizes the President to con- ment countries. Imports from the Studebaker Ex- port Corporation. world as a whole, clude trade agreements with for- trade-agreement countries had in- providing the eco- eign countries, and, in return creased 27 percent, as against an nomic foundation for peace. for reductions of their barriers increase of only 12 1/2 percent from Back in the depression days be- against American goods, to reduce nonagreement countries. This was tween the two World Wars, most United States import restrictions reflected in increased well-being Governments applied rigid con- -including tariffs-on goods from of employers, workers, and farm- trols on foreign trade. Born of abroad. ers in the United States. desperation, they usually were de- The Act requires that the Presi- As the number of trade agree- signed to restrict imports and to dent, in formulating the agree- ments increased and as the vol- force domestic products into for- ments, obtain advice and assist- ume of U. S. exports and imports eign markets regardless of supply- ance from specified Government increased, American industries and-demand situations or the agencies, such as the Departments and farmers produced more and effects on industries and jobs in of State, Agriculture, and Com- sold more, the number of jobs other countries. merce and the Tariff Commission. increased, and the average pay As a result of these controls, The Act also provides that ordi- of wage earners grew correspond- together with the depression, the nary citizens shall have a full op- ingly. That, in turn, vastly ex- annual value of U.S foreign trade portunity to present information panded the domestic market for fell from $9,640,000,000 in 1929 to and views on any trade agreement American goods. American pro- $2,934,000,000 in 1932. Many before it is concluded. ducers discovered that, even American export industries shut By the end of 1935, trade agree- though foreign businessmen were down. Many American workers ments had been concluded with able to sell to the American mar- 11 AUGUST, 1947