THE TRADE REFORM ACT OF 1973 HEARINGS BEFORE THE COMMITTEE ON FINANCE NINETY-THIRD CONGRESS SECOND SESSION ON H.R. 10710 AN ACT TO PROMOTE THE DEVELOPMENT OF AN OPEN, UNITED STATES, AND FOR OTHER PURPOSES MARCH 4, 5, 6, 7, 21, 22, 25, 26, 27, 28, 29, APRIL 1, 2, 3, 4, 5, 8, 9, AND 10, 1974 PART 1 Administration Witnesses-Department of the Treasury and (March 4 and 5, 1974) Printed for the use of the Committee on Finance U.S. GOVERNMENT PRINTING OFFICE WASHINGTON : 1974 30-229 O For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C. 20402 - Price $2.80 COMMITTEE ON FINANCE RUSSELL B. LONG, Louisiana, Chairman HERMAN E. TALMADGE, Georgia WALLACE F. BENNETT, Utah VANCE HARTKE, Indiana CARL T. CURTIS, Nebraska J. W. FULBRIGHT, Arkansas PAUL J. FANNIN, Arizona ABRAHAM RIBICOFF, Connecticut CLIFFORD P. HANSEN, Wyoming HARRY F. BYRD, JR., Virginia ROBERT DOLE, Kansas GAYLORD NELSON, Wisconsin BOB PACKWOOD, Oregon WALTER F. MONDALE, Minnesota WILLIAM V. ROTH, JR., Delaware MIKE GRAVEL, Alaska LLOYD BENTSEN, Texas MICHAEL STERN, Staff Director (II) CONTENTS Hon. George F. Shultz, Secretary of the Treasury, accompanied by: Hon. William D. Eberle, special representative for Trade Negotiations. Hon. Peter M. Flanigan, Executive Director, Council on International Hon. William D. Eberle, special representative for Trade Negotiations, Executive Office of the President, accompanied by : Hon. Harald Malmgren, deputy special representative; and John H. Jackson, General Counsel and acting deputy special representative-- Committee on Finance press releases announcing hearings on the Trade Questions submitted by Senator Hansen to Hon. William D. Eberle--- U.S. imports of major commodities (1973) from: U.S. imports of refrigeration and automotive equipment from selected countries, valued under $1,000,000 each in 1973_- Average post-Kennedy round MFN tariff levels on industrial products. Percentage distribution of total MFN industrial imports by ranges of Hon. Russell B. Long (chairman of the full committee) Cooperation in the international monetary field. Need for international trade reform.-- Need for reforming international economic system Multinational trade negotiations. Five basic purposes of trade reform act.. Export restrictions on vital raw materials.- Inconsistent trade policies--- Possible gains for the United States.. Possibility of beneficiaries of freer trade supporting adjustment assist- 4 163 163 165 165 166 167 167 168 169 170 170 171 176 176 ance Protection needed against future embargoes-- U.S. embargo powers-- Flexible exchange rates.- Problems in the shoe industry- Repayment of Russian debt contingent on MFN status. Oil prices and availability--- Trade deficits and rising imported oil prices.- Use of administration's retaliatory authority--- Refusal of countries to abide by trade agreements. Comparative advantage-- Fair trade----- Generalized preferences.- List of imports from less developed countries. Japan and GATT.. Countervailing duty law--- Lack of judicial review for negative determinations of anti-dumping- Progress in the area of monetary reform-- Alleged food crisis.- Definition of raw material.. Need for trade legislation now. Nontariff barriers-- Conditional most-favored-nation treatment needed - Canadian automobile agreement. Foreign oil and the energy crisis. Need for reshaping world economy- Elimination of restrictions on United States.- Employment of EEC.. Bill provides more negotiating authority- New techniques of negotiating seen needed.-- Close cooperation with Congress during negotiations seen necessary- Advise of industrial agricultural, labor, and public interests needed.-- Momentum developed for trade talks_ Energy crisis and trade negotiations-------- (V) 177 179 182 182 183 186 189 190 191 191 192 192 193 193 196 197 198 199 200 203 203 205 206 206 207 211 212 213 214 215 216 216 216 217 |