Statement Urging Extension of Authority to Negotiate Reciprocal Trade Agreements.

By the Act of June 12, 1934 (Public No. 316, 73d Congress), the Congress authorized the Executive to enter into foreign trade agreements for the purpose of promoting the foreign commerce of the United States. This authority was conferred for a period of three years. I am very happy to learn that you have introduced in the House of Representatives a resolution (H. J. Res. 96), providing for an extension of this authority for a further period of three years. Such an extension is highly desirable in the interest of our Nation.

At the time of the original enactment, the world was moving in the direction of a progressive destruction of international commerce. Trade barriers had risen to unprecedented heights, and exclusive preferential arrangements were supplanting the rule of equal treatment in commercial relations. As a result of enhanced obstructions to trade and of increasing adverse discrimination on the part of other Nations, our foreign trade had suffered an even more drastic decline than the catastrophic fall in world trade as a whole.

ACCRUED BENEFITS CITED

If our agricultural and industrial interests, which had been severely injured by the contraction of their foreign markets, were to regain their deserved place in the international trade of the world and to expand foreign outlets for their products, it was necessary for our Government in a time of such emergency to be in a position to bargain with other governments by means of energetic and decisive negotiations. The executive branches of virtually all other important trading countries already possessed power to act promptly. By the Act of June 12, 1934, the Congress placed a similar authority in my hands.

Through the exercise of that authority, foreign trade agreements have been concluded with fifteen nations. Improved opportunities for our trade have been secured in such important markets as those of Canada, Cuba, Brazil, France, Belgium, The Netherlands, Switzerland and Sweden. Through our policy of demanding and granting equality of treatment we have obtained removal of discriminations where they existed in the trade agreement countries and guarantees of equal treatment in the future. At the same time our policy has served to reduce discriminatory practice in many other countries.

RESISTANCE TO ISOLATION

In the process of obtaining improvement in our export positions, the interests of our producers in the domestic market have been scrupulously safeguarded. This was made possible by painstaking effort on the part of the government agencies concerned with the negotiation of trade agreements and by the helpful cooperation of the business community and the general public in making known to the Government their views and desires in the matter and in supplying valuable pertinent information.

Our vigorous initiative in the field of liberalization of commercial policies has been an important factor in arresting the world trend to national economic isolation, which seemed almost irresistible three years ago. Striking evidence of this is furnished by the actions of the industrial countries and by the discussions and recommendations of such international gatherings as the recent Buenos Aires conference.

But while accomplishment has been substantial and gratifying, the task is by no means completed. In international trade relations emergency conditions still exist. Barriers operating against our trade are still excessive. The reduction continues to be an essential requirement of a full and balanced economic recovery for our country. In the period which lies immediately ahead, our ability to act swiftly and effectively in the field of commercial policy will be indispensable, if the present favorable and promising trend toward a normalization and expansion of international trade, upon a friendly and constructive basis of fair dealing and equal treatment, is to go forward.

ECONOMIC STRIFE INVOLVED

The development of liberalized trade practices has another effect, which transcends in importance even the material benefits conferred by trade improvement. Economic strife, resulting from inordinate or discriminatory trade barriers, is one of the most fruitful sources of political animosity and military conflict. A policy designed to reduce the excessive trade barriers and to establish equality of trade rights is a powerful instrument of economic appeasement and stability.

In the present unfortunate state of world affairs, we dare not, in justice to ourselves, relax our effort to abate the vigor of our leadership, in a world-wide movement for durable peace through economic prosperity.