UNITED STATES TARIFF.

Manawatu Standard, Volume LVI, Issue 43, 20 January 1936, Page 6

UNITED STATES TARIFF.

The last tariff of the United States, which is known as the Hawley-Smoot Tariff, became operative in 1931, notwithstanding the numerous protests of other countries. It was a prohibitive tariff, but President Hoover declared that it. was necessary for the protection of the industries of the country. It has not saved that country from the full blast of the economic blizzard; if anything, America has been more severely hit than almost any other country. Now the United States is negotiating reciprocal tariff agreements, and has already arranged such an agreement with Ganada. It is

now negotiating with Britain. Tin’s programme of trade agreements is being carried out under the authority of the Act of Congress approved on June 12, 1934, which is an amendment of the Hawley-Smoot Tariff Act of 1930. It constitutes a grant of power to the President to revise the existing - American tariff under certain prescribed conditions, and to establish the basic lines of commercial policy to be pursued by the United States Government. The President is empowered to enter into trade agreements, and, in the language of the Act, he may exercise the powers granted him “whenever he finds as a fact that any existing duties or other import restrictions of the United States, or any foreign country are unduly burdening - or restricting the foreign trade of the United States.” There are two limitations placed by the Act upon the President’s authority. The first is that no rate of duty may be changed by more than 50 per cent., and the second, that no article may_ be transferred between the dutiable and the free lists. However, he may reduce any existing duty rate or bind it against increase. He may change the form of any existing duty or effect a reclassification of the articles covered by any tariff designation. An agreement negotiated under the Act does not require Congressional ratification. The President is authorised to put into full and binding effect by proclamation all changes in the American tariff embodied in the agreements. Any modification made as a result of a trade agreement with any particular country shall apply to all other countries. It is also provided that every trade agreement “shall bo subject to termination upon due notice to the foreign Government concerned, at the end of not more than three years from the date on which the agreement comes into force.” The President’s authority under the Act expires in 1937; after that, all tariff-making powers will revert to Congress. The process of tariff revision by Executive authority represents a new departure for American administrative practice. Hence it has required the creation of special machinery, designed not only for the purpose of preparing and carrying out the negotiation of individual agreements, but also with a view to working out the broad outlines and the detailed application of basic policies. The new commercial policy of the United States rests upon a broad interpretation of the unconditional most-fav-oured-nation principle. In view of the uncertain monetary and business conditions prevailing at the present time, the agreements which are being - ' concluded contain a number of safeguards against future contingencies. The denunciation of the agreement on short notice is also provided for in case one of the signatories imposes a quantitative restriction on trade in any commodity included in the schedule of concessions.