U.S. TARIFF ON WOOL

Press, Volume XC, Issue 27274, 15 February 1954, Page 9

U.S. TARIFF ON WOOL

Need To Increase Production Seen (N.Z. Press Association—Copyright) (Rec. 9 p.m.) WASHINGTON. Feb. 12. The United States Department of Agriculture said in a special report to President Eisenhower today that increased tariffs on wotil imports would weaken the ability of domestic wool to meet growing competition from synthetic fibres. It also said that a significant increase in tariffs would retard foreign trade and might lead to retaliation by wool exporting countries. ' , The report was submitted to the President in compliance with his request last July after petitions had been received from wool producers and other interests for increased tariffs. The department said there was a need for a greater effort to increase wool production in the United States. America now was importing about five times as much apparel wool as she did before World War 11. as the result of a sharp decline in domestic production. The department listed three tvpes of action which it said were required to lead to increased production. (1) Increased efficiency in processing and distribution. (2) Increased efficiency in production and marketing. (3) A continuation of some kind of government price or income assistance to erowers The National Wool Growers’ Association todav announced its support of the Eisenhower Administration’s proposal to p?v wool producers direct subsidies rather than to support the market with Government loans The association said its endorsement was not eas’ly arrived at because it 'elt that the answer to the wonl producers’ nroblems required higher ter’ffs. Mr Eisenhower opposes a tariff increase under present wor d conditions. The •-'resident of the association. M»Pav Willoughby, said woohrowe’.”' would back th- direct payment* p’a’i because it would, first, provide an incentive to revers? the downward trend in American wool production and. second, it would base thn f incentive navment upon wool tariff receipts rather than funds taken from the American taxpayers.