Trade Expansion Act of 1962

Winton, David J., chairman, the Winton Co., Minneapolis, Minn...
Zagri, Sidney, legislative counsel, International Brotherhood of Teamsters
Chauffeurs, Warehousemen, and Helpers...

396

362

ADDITIONAL INFORMATION

EEC grain: Support prices, 1959–60.-.

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TRADE EXPANSION ACT OF 1962

MONDAY, JULY 23, 1962

U.S. SENATE, COMMITTEE ON FINANCE, Washington, D.C.

The committee met, pursuant to notice, at 10:15 a.m., in room 2221, New Senate Office Building, Senator Harry F. Byrd (chairman) presiding.

Present: Senators Byrd (chairman), Kerr, Anderson, Douglas, Talmadge, Williams, Carlson, Butler, and Curtis.

Also present: Elizabeth Springer, chief clerk and Serge N. Benson, professional staff member.

The CHAIRMAN. The hearing today is on the Trade Expansion Act of 1962, H.R. 11970. I place in the record a brief analysis of the bill, as well as a copy of the pending bill.

(The analysis and bill follow :)

BRIEF ANALYSIS OF H.R. 11970 TRADE EXPANSION ACT OF 1962

AUTHORITY

Extends for 5 years (through June 30, 1967) the authority of the President to enter into trade agreements. Although President is to continue to consult Tariff Commission prior to negotiations, he no longer will be subject to the perilpoint provisions of present law.

President is required to endeavor to

(1) eliminate unjustifiable import restrictions which impair value of tariff commitments made to United States, oppress commerce in United States, or prevent expansion of trade;

(2) prevent application of trade agreements benefits to

(a) products of Communist countries, and

(b) products of countries which maintain unwarranted nontariff restrictions or engage in discriminatory acts which unjustly restrict U.S. commodities.

Authorize President to

IMPORT DUTIES

(1) reduce import duties by 50 percent of the July 1, 1962, duty level and increase duties by 50 percent of the July 1, 1934, duty level, as well as impose import restrictions (quotas, etc.);

(2) reduce import duties by more than 50 percent or eliminate the import duties on

(a) articles within categories which United States and Common Market together account for 80 percent of free world market,

(b) certain agricultural articles in agreement with Common Market, (c) tropical agricultural or forestry commodities when like commodities are not produced in significant quantities in the United States, and

(d) when rate was 5 percent ad valorem or less on July 1, 1962.

ESCAPE CLAUSE ACTION

Requires President to reserve articles from negotiation for 4 years when Tariff Commission finds through escape clause procedures that such imports are seriously injuring or threatening serious injury to domestic industry. Any increased restriction under escape clause provisions would terminate in 4 years unless President determines that extension of restriction is in national interest. (Period of extension may be no more than 4 years.)

NEW ADMINISTRATIVE ADVISERS

President is authorized to appoint:

(1) Special Representative for Trade Negotiations,

(2) Interagency Trade Organization (Cabinet level), and

(3) two Members of House of Representatives and two Members of the U.S. Senate to be accredited to U.S. trade agreement delegations to observe U.S. trade agreement negotiations.

ADJUSTMENT ASSISTANCE

Provides adjustment assistance to workers and industries adversely affected by U.S. trade policy, in form of unemployment compensation, retraining and in some instances relocation allowances for workers, and in the form of technical assistance, loans, or 5-year carryback of net operating loss for businesses. Unemployment compensation would be at rate of 65 percent of worker's weekly wage, subject to limitation of 65 percent of national average manufacturing wage, for duration of no more than 52 weeks, with two exceptions: (1) period of retraining and (2) workers over 60 years of age.

[H.R. 11970, 87th Cong., 2d sess.]

AN ACT To promote the general welfare, foreign policy, and security of the United States through international trade agreements and through adjustment assistance to domestic industry, agriculture, and labor, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

TITLE I-SHORT TITLE AND PURPOSES

SEC. 101. SHORT TITLE.

This Act may be cited as the "Trade Expansion Act of 1962”.

SEC. 102. STATEMENT OF PURPOSES.

The purposes of this Act are, through trade agreements affording mutual benefits

(1) to stimulate the economic growth of the United States and maintain and enlarge foreign markets for the products of United States agriculture, industry, mining, and commerce;

(2) to strength economic relations with foreign countries through the development of open and nondiscriminatory trading in the free world; (3) to assist in the progress of countries in the earlier stages of economic development; and

(4) to prevent Communist economic penetration.

TITLE II-TRADE AGREEMENTS

CHAPTER 1-GENERAL AUTHORITY

SEC. 201. BASIC AUTHORITY FOR TRADE AGREEMENTS.

(a) Whenever the President determines that any existing duties or other import restrictions of any foreign country or the United States are unduly burdening and restricting the foreign trade of the United States and that any of the purposes stated in section 102 will be promoted thereby, the President may

(1) after June 30, 1962, and before July 1, 1967, enter into trade agreements with foreign countries or instrumentalities thereof; and

(2) proclaim such modification or continuance of any existing duty or other import restriction, such continuance of existing duty-free or excise treatment, or such additional import restrictions, as he determines to be required or appropriate to carry out any such trade agreement.

(b) Except as otherwise provided in this title, no proclamation pursuant to subsection (a) shall be made

(1) decreasing any rate of duty to a rate below 50 percent of the rate existing on July 1, 1962; or

(2) increasing any rate of duty to (or imposing) a rate more than 50 percent above the rate existing on July 1, 1934.

SEC. 202. LOW-RATE ARTICLES.

Section 201 (b) (1) shall not apply in the case of any article for which the rate of duty existing on July 1, 1962, is not more than 5 percent ad valorem (or ad valorem equivalent). In the case of an article subject to more than one rate of duty, the preceding sentence shall be applied by taking into account the aggregate of such rates.

CHAPTER 2-SPECIAL PROVISIONS CONCERNING

EUROPEAN ECONOMIC COMMUNITY

SEC. 211. IN GENERAL.

(a) In the case of any trade agreement with the European Economic Community, section 201(b) (1) shall not apply to articles in any category if, before entering into such trade agreement, the President determines with respect to such category that the United States and all countries of the European Economic Community together accounted for 80 percent or more of the aggregated world export value of all the articles in such category. (b) For purposes of subsection (a)–

(1) As soon as practicable after the date of the enactment of this Act, the President shall

(A) after taking into account the availability of trade statistics, select a system of comprehensive classification of articles by category, and

(B) make public his selection of such system.

(2) As soon as practicable after the President has selected a system pursuant to paragraph (1), the Tariff Commission shall

(A) determine the articles falling within each category of such system, and

(B) make public its determinations.

The determination of the Tariff Commission as to the articles included in any category may be modified only by the Tariff Commission. Such modification by the Tariff Commission may be made only for the purpose of correction, and may be made only before the date on which the first list of articles specifying this section is furnished by the President to the Tariff Commission pursuant to section 221.

(1) The determination of the countries of the European Economic Community shall be made as of the date of the request under subsection (d). (2) The President shall determine "aggregated world export value" with respect to any category of articles

(A) on the basis of a period which he determines to be representative for such category, which period shall be included in the most recent 5year period before the date of the request under subsection (d) for which statistics are available and shall contain at least 2 one-year periods, (B) on the basis of the dollar value of exports as shown by trade statistics in use by the Department of Commerce, and

(i) from any country of the European Economic Community to another such country, and

(ii) to or from any country or area which, at any time during the representative period, was denied trade agreement benefits under section 231 or under section 5 of the Trade Agreements Extension Act of 1951.

(d) Before the President makes a determination under subsection (a) with respect to any category, the Tariff Commission shall (upon request of the President) make findings as to

(1) the representative period for such category,

(2) the aggregated world export value of the articles falling within such category, and

(3) the percentage of the aggregated world export value of such articles accounted for by the United States and the countries of the European Eco nomic Community,

and shall advise the President of such findings.

(e) The exception to section 201(b) (1) provided by subsection (a) shall not apply to any article referred to in Agricultural Handbook No. 143, United States Department of Agriculture, as issued in September 1959.

SEC. 212. AGRICULTURAL COMMODITIES.

In the case of any trade agreement with the European Economic Community, section 201 (b) (1) shall not apply to any article referred to in Agricultural Handbook No. 143, United States Department of Agriculture, as issued in September 1959, if before entering into such agreement the President determines that such agreement will tend to assure the maintenance or expansion of United States exports of the like article.

SEC. 213. TROPICAL AGRICULTURAL AND FORESTRY COMMODITIES. (a) Section 201(b)(1) shall not apply to any article, if before entering into the trade agreement covering such article, the President determines that

(1) such article is a tropical agricultural or forestry commodity;

(2) the like article is not produced in significant quantities in the United States; and

(3) the European Economic Community has made a commitment with respect to duties or other import restrictions which is likely to assure access for such article to the markets of the European Economic Community which

(A) is comparable to the access which such article will have to the markets of the United States, and

(B) will be afforded substantially without differential treatment as among free world countries of origin.

(b) For purposes of subsection (a), a "tropical agricultural or forestry commodity" is an agricultural or forestry commodity with respect to which the President determines that more than one-half of the world production is in the area of the world between 20 degrees north latitude and 20 degrees south latitude. (c) Before the President makes a determination under subsection (a) with respect to any article, the Tariff Commission shall (upon request of the President) make findings as to

(1) whether or not such article is an agricultural or forestry commodity more than one-half of the world production of which is in the area of the world between 20 degrees north latitude and 20 degrees south latitude, and (2) whether or not the like article is produced in significant quantities in the United States,

and shall advise the President of such findings.

CHAPTER 3-REQUIREMENTS CONCERNING

NEGOTIATIONS

SEC. 221. TARIFF COMMISSION ADVICE.

(a) In connection with any proposed trade agreement under this title, the President shall from time to time publish and furnish the Tariff Commission with lists of articles which may be considered for modification or continuance of United States duties or other import restrictions, or continuance of United States duty-free or excise treatment. In the case of any article with respect to which consideration may be given to reducing the rate of duty below the 50 percent limitation contained in section 201(b) (1), the list shall specify the sec. tion or sections of this title pursuant to which such consideration may be given. (b) Within 6 months after receipt of such a list, the Tariff Commission shall advise the President with respect to each article of its judgment as to the probable economic effect of modifications of duties or other import restrictions on

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