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431 Animal and vegetable oils and fats, processed, and waxes of animal or

vegetable origin.
512 Organic chemicals.
513 Inorganic chemicals: Elements, oxides and halogen salts.
514 Other inorganic chemicals.
515 Radioactive and associated materials.
521 Mineral tar and crude chemicals from coal, petroleum and natural gas.
531 Synthetic organic dyestuffs, natural indigo and color lakes.
532 Dyeing and tanning extracts, and synthetic tanning materials.
533 Pigments, paints, varnishes, and related materials.
541 Medicinal and pharmaceutical products.
551 Essential oils, perfume, and flavor materials.
553 Perfumery and cosmetics, dentifrices, and other toilet preparations (except

soaps).
554 Soaps, cleansing and polishing preparations.
561 Fertilizers, manufactured.
571 Explosives and pyrotechnic products.
581 Plastic materials, regenerated cellulose and artificial resins,
599 Chemical materials and products, not elsewhere specified.
611 Leather.
612 Manufactures of leather or of artificial or reconstituted leather, not else-

where specified.
613 Fur skins, tanned or dressed (including dyes).
621 Materials of rubber.
629 Articles of rubber, not elsewhere specified.
631 Veneers, plywood boards, "improved" or reconstituted wood and other

wood, worked, not elsewhere specified.
632 Miscellaneous wood manufactures.
633 Cork manufactures.
641 Paper and paperboard.
642 Articles made of paper pulp, of paper, or of paperboard.
651 Textile yarn and thread.
652 Cotton fabrics, woven (not including narrow or special fabrics).
653 Textile fabrics, woven (not including narrow or special fabrics), other than

cotton fabrics.
654 Tulle, lace, embroidery, ribbons, trimmings, and other small wares.
655 Special textile fabrics, and related products.
656 Made-up articles, wholly or chiefly of textile materials, not elsewhere

specified.
657 Floor coverings, tapestries, etc.
661 Lime, cement, and fabricated building materials, except glass and clay

materals.
662 Clay construction materials and refractory construction materials.
663 Mineral manufactures, not elsewhere specified.
664 Glass.
665 Glassware.
666 Pottery.
667 Pearls and precious and semiprecious stones, unworked or worked.
671 Pig iron, spiegeleisen, sponge iron, iron and steel powders and shot and

ferro-alloys.
672 Ingots and other primary forms (including blanks for tubes and pipes) of

iron or steel.
673 Iron and steel bars, rods, angles, shapes and sections (including sheet

piling).
674 Universals, plates, and sheets of iron or steel.
675 Hoop and strip of iron or steel.
676 Rails and railway truck construction material of iron or steel.
677 Iron and steel wire (excluding wire rod).
678 Tubes, pipes, and fittings of iron or steel.
679 Iron and steel castings and forgings, unworked, not elsewhere specified.
681 Silver, platinum, and other metals of the platnium group.
682 Copper,
683 Nickel.
684 Aluminum.
685 Lead.
686 Zinc.
687 Tin.

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688 Uranium and thorium and their alloys.
689 Miscellaneous nonferrous base metals employed in metallurgy.
691 Finished structural parts and structures, not elsewhere specified.
692 Metal containers for storage and transport.
693 Wire products (excluding electric) and fencing grills.
694 Nails, screws, nuts, bolts, rivets, and similar articles, of iron, steel or of

copper.
695 Tools for use in the hand or in machines.
696 Cutlery.
697 Household equipment of base metals.
698 Manufactures of metal, not elsewhere specified.
711 Power-generating machinery, other than electric.
712 Agricultural machinery and implements.
714 Office machines.

Metalworking machinery.

Textile and leather machinery.
718 Machines for special industries.
719 Machinery and appliances (other than electrical) and machine parts,

not elsewhere specified.
722 Electric power machinery and switchgear.

Equipment for distributing electricity.
724 Telecommunications apparatus.
720 Domestic electrical equipment.
726 Electric apparatus for medical purposes and radiological apparatus.
729 Other electrical machinery and apparatus.
731 Railway vehicles.
732 Road motor vehicles.

Road vehicles other than motor vehicles.
734 Aircraft.

Ships and boats.
812 Sanitary, plumbing, heating and lighting fixtures and fittings.
821 Furniture.
831 Travel goods, handbags, and similar articles.
841 Clothi,

Clothing (except fur clothing).
812 Fur clothing (not including headgear) and other articles made of fur skins;

artificial fur and articles thereof.

Footwear.
861 Scientific, medical, optical, measuring, and controlling instruments and

apparatus.
862 Photographic and cinematographic supplies.
863 Developed cinematographic film.
864 Watches and clocks.
891 Musical instruments, sound recorders, and reproducers and parts and

accessories therefor.
892 Printed matter.
893 Articles of artificial plastic materials, not elsewhere specified.
894 Perambulators, toys, games, and sporting goods.
895 Office and stationery supplies, not elsewhere specified.
896 Works of art, collectors' pieces, and antiques.
897 Jewelry and goldsmiths' and silversmiths' wares.
899 Manufactured articles, not elsewhere specified.

Secretary HODGES. The 80-percent formula list will be calculated
just prior to the time negotiations with the EEC are undertaken, and
it will be based on the Common Market's membership at that time.

When the United Kingdom joins the EEC, as is confidently ex-
pected, 20 or more categories will probably qualify under the special
authority.

Attached as annex C for illustrative purposes only, is a tabulation
of the categories in which the United States, the EEC and five pro-
spective members, including the United Kingdom, supplied 80 percent
or more of "aggregated world export value” in 1960.

Mr. Chairman, I would submit that for the record.
The CHAIRMAN. Without objection.

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(Annex C referred to follows:)

ANNEX C
TRADE EXPANSION ACT OF 1962

CATEGORIES IN WHICH THE UNITED STATES AND THE EUROPEAN ECONOMIC COM

MUNITY PLUS FIVE POSSIBLE ADDITIONAL MEMBERS SUPPLIED 80 PERCENT OR MORE OF FREE-WORLD EXPORTS IN 1960

The attached is a tabulation of those commodities groups based on the Standard International Trade Classification, Revised (SITC), of which the value of exports from the United States and six present and five other possible members of the European Economic Community together accounted for 80 percent or more of free-world exports in 1960.

Such a commodity list can only be illustrative at the present time of the kinds of commodity groups which may be included in a finally selected list under the "80 percent dominant supplier formula” in the special European Common Market authority in the Trade Expansion Act of 1962. Under the provisions of the new trade legislation a definitive list of the commodity groups which would be included under the special EEC authority can only be compiled (1) at a future date which approaches the commencement of negotiations, and (2) after data have been assembled for world trade in a representative period, selected from the 5 years previous to the time the list is drawn up, as determined by the President. Such period may include future years for which trade statistics are not yet available. In accordance with the bill's requirements, some commodity groups included in the attached illustrative list for 1960 may not be included in the final list and others may be added, depending upon what the trade figures show for the actual representative period selected.

The list of commodities to be actually offered in negotiation under the special EEC authority, as distinguished from the maximum list of commodities which could be included as described in the preceding paragraphs, would only be put together after public hearings have been held by the President and by the Tarifi Commission, and the Tariff Commission has reported to the President its views concerning the impact on American employment, productive facilities, and profits from anticipated reductions in duties on such commodities. Under the proposed law, items on which escape clause or national security action is in effect must be withheld from negotiation, as must certain other items previously covered by escape clause investigations, as described in the bill. In addition, the President may withhold such other items, where he deems such action to be in the best interests of the Nation and the economy.

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List of SITC, Revised, commodity groups of which exports from the United States and the European Economic Community and 5 other possible

EEC member European countries combined, total 80 percent or more of free-world exports in 19601 (Values of U.S. trade with the free world, values of exports to the free world from the EEC and 5 other possible EEC member European countries, and values of their imports from

each other)
[Money amounts in millions of dollars]

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1 The free-world export value used in these calculations includes total exports of all
countries of the free world with the exception of: (1) exports from the present European
Economic Community member countries (Belgium, France, Federal Republic of Ger-
many, Italy, Luxembourg, and Netherlands) and five other possible member countries
(Denmark, Greece, Ireland, Norway, and United Kingdom) to each other; and (2) ex-
ports from the free-world countries to countries dominated or controlled by international
communism (Albania, Bulgaria, Czechoslovakia, Hungary, Poland, Rumania, U.S.S.R.,
China (mainland Communist), North Korea, North Vietnam, Outer Mongolia, and Cuba).

Commodity groups are taken from the Standard International Trade Classification,
Revised, of the United Nations except as noted below.

Secretary HODGES. I wish to emphasize that the list of commodities to be actually offered in negotiation under this special authority may be shorter than the full list of commodities technically eligible for such treatment. The actual negotiating list would be decided upon only after public hearings have been held by an interagency committee and by the Tariff Commission as required by the bill.

Furthermore, the Tariff Commission and the relevant executive branch departments will have reported to the President their views concerning the probable impact on American employment, productive facilities, and profits that might result from the anticipated tariff reductions on such commodities.

Under the act, the President on the basis of such advice may reserve any item from negotiations and in addition is required to reserve certain others.

I will discuss this reserve list in more detail later when I deal with all the safeguards contained in the bill.

This bill follows the practice of past trade legislation in not stipulating the detailed method of negotiation to be followed, since our negotiating team should have the flexibility to choose whatever method is most appropriate at the time negotiations take place.

Thus, for example, the several tariff reducing authorities could be used, as appropriate, to negotiate tariff concessions on a product-byproduct basis, as has been customary in many tariff negotiations up to now.

Useful as this technique has been in the past, however, a broader basis for the negotiation of tariff reductions under these authorities must also be used if substantial further progress is to be made in the lowering of tariff barriers.

In negotiations of any magnitude, item-by-item treatment tends to create long delays and unnecessary complexity. The last round of negotiating under the 1958 extension of the reciprocal trade program was finally completed just this year.

Moreover, the EEC has itself found it necessary to use a broader basis for negotiation in the reduction of its own tariffs, and wherever appropriate under the special and general authorities, we must be ready to work in the same way in order to have the flexibility and bargaining power to achieve our objectives of bringing down free world tariff barriers.

Further, the technique of broadly based negotiations has the advantage of carrying with it a built-in response to changing trade conditions. A striking feature of our modern world is the rapidity of technological developments, which is constantly creating new products, and, from them new trading interests and opportunities.

Our own producers are probably the world's leading innovators. Therefore, it is strongly in our own interest to negotiate on broader groupings of items which would result in tariffs being lowered not only on products in which we now have a strong export interest, but also on products in which we may well develop such an interest in the future through technological innovation.

In recognition of the importance of the EEC area as a market for the exports of American farmers, there is a separate section 212 in the bill dealing with this subject.

Under this section, Mr. Chairman, the President is authorized to exceed the 50-percent limitation on an agricultural commodity, if he

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