January 1973 Home   Newsletters

February 1973

March 1973

State Leaguers Tell About What They're Doing at the Capitol
February Calendar
Letter to the Editor (Evelyn Oishi)
Vote Scope
Foreign Trade Background
Announcements
Finance (Edna Shoup)
Membership Memo (Susie Orient)
Call to all Husbands
National LWV - Report from the Hill
People's Conference on Housing Was a Success! (Vangie Lambert)

Foreign Trade Background

Since our last trade study in 1960 the trade picture has changed drastically. Technological, social and economic change has been faster than international institutions - GATT (see Dec. Aloha Voter) has been eroded and in fact special and preferential tradeagreements have mushroomed. EEC (see Jan. Aloha Voter) has extended trade preferences to Near East, Africa; U.S; has concluded agreements with Europe and Japan to establish import quotas on steel and textiles. In 1971 we imported over $2 billion more goods and services than we exported and the nation's trade balance (see Dec. Aloha Voter) was in deficit for the first time in the 20th century. New economic Policy 1971 (the temporary surcharge on imports and non-convertibility of the dollar), failure to renew Trade Extension Act (see Dec. Aloha Voter), the failure of an effective adjustment assistance make up the case for trade in the U.S. now.

 

FOREIGN TRADE LIKELY TO BE CONTROVERSIAL ISSUE IN 93RD CONGRESS:

A major trade bill is overdue; the tariff cutting authority granted the President by the 1962 Trade Expansion Act has long since expired, and the provisions in that act for aiding individuals and firms injured by imports are generally considered inadequate (adjustment assistance). Moreover, the current unfavorable U.S. trade balance and the high rate of domestic unemployment make new trade legislation imperative.

Labor's response in the. 92nd Congress was the protectionist Burke-Hartke Bill which proposed to protect jobs by restricting imports and curbing U.S. investments abroad. This Foreign Trade and Investment Act of 1972 has restrictions on multinational corporations by taxing foreign income earned, taxing overseas income when earned and other provisions (see Dec. Jan. Aloha Voter on _.N.C.)

The administration is preparing a comprehensive trade bill and it might include:

a provision granting the President tariff reduction authority.

a broad adjustment assistance program for injured industries

a provision for imposing 'temporary import quotas

amendments to the antidumping and countervailing duty statutes

most-favored-nation status for the Soviet Union and perhaps for other countries with non-market economies (i.e. Socialist countries)

trade preferences for underdeveloped countries

 

CONSENSUS QUESTIONS

  1. Should the U.S. develop new policies and practices to assist workers, firms, communities, industries injured by foreign competition? If so, what type of policies should be developed and how should they be implemented? If not, why?

  2. Should the U.S. develop new policies to regulate the activities of the multinational corporations? If so, please identify these policies and explain why. If not, why?

  3. Should the U.S. develop new policies to make U.S. products more competitive in world markets? If so, please identify the types of policies and your reasons. If not, why?

  4. Should the U.S. develop new policies which would limit imports for purposes of environmental or consumer protection? If so, please specify and indicate how such policies can be implemented, if not, why?

 

Foreign Trade Shopping Basket

Over 50% of responding members used ooffee, tea and bananas, mandarin oranges, cheeses, mushrooms, hamburger and foreign meat, long rice, shoyu and purchased toys, jewelry, shoes, fabrics, watches, clocks, small appliances, T.V.'s. By this private survey our membership is dependent on some foreign goods which may or may not be competing with locally or U.S. produced goods.

"League recognizes that imports create problems for domestic industry and workers can and do lose jobs because of foreign competitors. But it is true though often more forgotten - that there are even more jobs involved in our export trade. We must not retaliate and set off a Trade War as resulted from Smoot-Hawley Act (see "Politics of Trade pg. 12). One method of ensuring constructive relief is "Adjustment Assistance" (see Dec. Aloha Voter)"

Lucy Wilson Benson
President LWVUS

 

Announcements

The Foreign Policy Ass'n "Great Decisions 1973" will be held at AAUW residence, Tues. a.m., 9:3Q-11:30, February 13, 20, 27, March 6, 13, 20, 27, April 3. Texts are $2.40. Tentative topics are Sine-Soviet Triangle, Mass Media and Foreign Policy, Japan-Ally or Rival, White Rule in Black Africa, Common Market Expands, Man on Earth, Canada-Latin America-U.S., Viet Nam.

 

A busy Leaguer around town is International Relations Committee member, Frances Owre, covering ASUH Seminar, "Politics, and Media", "View of China" and "Foreign Policy in the Pacific" by Chamber of Commerce, "Need for a Land Use Policy", AIA sponsored, and Dr. Wernar Levi on "Multinational Corp." at AAUW and that's a lot of ground covered

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