America’s firm trade stand

Press, Volume CXIII, Issue 38183, 24 March 1973, Page 15

America’s firm trade stand

1X Z P A.-Rcuter —Copyright) WASHINGTON. March 23. The White House has criticised the trade and tariff policies of the European Common Market and Japan, in particular. and has given a warning that the United States intends to take a tough bargaining stand in efforts to redress the balance. President Nixon's Council on International Economic Policy has accused the E.E.C. and Japan of having “a surplus syndrome which leads to unfair trade competition, •nd harms the interests of the United States.”

Sending the annual report ■ of the council to Congress, Mr Nixon restated his intention to seek legislation, i which would permit him to raise tariffs to meet what he ; considers unfair competition ! from America’s trading part- ■ ners. ' At the same time, Mr Nixon rejected calls by protectionist groups for import restrictions not keyed to the need for expanding international ] trade on a fair basis. While ! insisting on safeguards for i United States trade, he said I that the arbitrary imposition I of such barriers would harm the American economy, even though they might achieve ! short-term gains, and benefit ; certain groups. The council gave Congress a preview of the new trade legislation to be submitted

by the President later in the year. The main points are:

Unlimited authority for five years to eliminate, reduce, increase, or impose duties, depending on the policies pursued by America’s trading partners. This would be in contrast to previous authority to change U.S. tariffs by specified amounts.

An international agreement, permitting trading countries to adopt temporary measures to safeguard industries hurt by imports.

Support for the concept of preferences for the products of developing countries, such as those negotiated by the European Common Market

and countries in Africa and elsewhere. But the council said that the United States could not extend preferences to developing countries which discriminated against American exports in favour of those of other developed countries. ■Authority to extend most-! i favoured-nation tariff treatment to Communist j countries with which the! United States negotiated' satisfactory trade agreements. President Nixon wants Congress to approve most-favoured-nation treatment for the Soviet Union as part of the huge trade package he; discussed during the Moscow! summit last May. A majority; in Congress is opposed be-] cause of the stiff education! tax which the Soviet Union! Government has been impos-l ing on emigrants to other! i countries, mainly Israel. 1 ' In a statement transmit-; ! ting the council's report toj I Congress, Mr Nixon said hej was confident that all coun-! tries would recognise their; own vital interests in lower-; ing economic barriers, and of; applying fairer, and more; effective, trading rules. The report applauded the; recent revaluation of the; principal world currencies after the 10 per cent devaluation of the United States dollar, but said that currency adjustments would mean little unless foreign tariff restrictions and other barriers against American goods were lowered.

Especially critical of the European Common Market and Japan, the report maintained that the United States stood to be hurt by the proliferation of preferential trade agreements negotiated by the Common Market and countries, and dependent; territories, in Europe, Africa,: the Mediterranean, and the Caribbean.

It also complained about; the Community’s agricultural! policies, which, it said, were; jeopardising the sale of! American farm commodities! to Europe. 1