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NE/B-13
February 13, 1969
US Trade Policy
Summary
International cooperation in dismantling trade
barriers since World War II has produced impressive
results and made a major contribution to the high eco-
nomic growth rates of the last decade. The momentum
has slowed, however, and protectionist forces pose a
serious challenge to liberal trade policy in both the
U.S. and Western Europe.
The Kennedy Round yielded notable progress in
reducing tariffs, particularly on industrial products,
but agreements of similar scope could not be reached
on other important matters, notably non-tariff barriers
and agricultural trade. Although countries will want
a breathing spell while their economies "digest" the
Kennedy Round achievements, it is desirable that. the
forward momentum be renewed as soon as practicable.
There are a number of major problems requiring
attention:
Tariff preferences for developing countries -
Developing countries attach major importance to obtaining
from the industrialized countries more favorable tariff
treatment than is given to competing imports from developed
countries. The United States is participating in a
United Nations project designed to set up a system of
generalized preferences for developing countries.
Agricultural Trade - Agriculture presents a most
serious problem of trade policy. Because of political
pressures in the farm sector, governments set up support
programs which stimulate uneconomic production, high
import protection and artificial export pricing prac-
tices. International markets are disrupted. While this
problem is widespread, the most serious problem is with
the European Economic Community. In adopting high
support prices under the Common Agricultural policy,
it has stimulated surpluses in many areas -- dairy,
wheat, sugar, poultry -- all of which are being disposed
of on international markets under heavy subsidy. It
has increasingly raised protection on many of our important
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"ocrText": "LIMITED OFFICIAL USE\nNE/B-13\nFebruary 13, 1969\nUS Trade Policy\nSummary\nInternational cooperation in dismantling trade\nbarriers since World War II has produced impressive\nresults and made a major contribution to the high eco-\nnomic growth rates of the last decade. The momentum\nhas slowed, however, and protectionist forces pose a\nserious challenge to liberal trade policy in both the\nU.S. and Western Europe.\nThe Kennedy Round yielded notable progress in\nreducing tariffs, particularly on industrial products,\nbut agreements of similar scope could not be reached\non other important matters, notably non-tariff barriers\nand agricultural trade. Although countries will want\na breathing spell while their economies \"digest\" the\nKennedy Round achievements, it is desirable that. the\nforward momentum be renewed as soon as practicable.\nThere are a number of major problems requiring\nattention:\nTariff preferences for developing countries -\nDeveloping countries attach major importance to obtaining\nfrom the industrialized countries more favorable tariff\ntreatment than is given to competing imports from developed\ncountries. The United States is participating in a\nUnited Nations project designed to set up a system of\ngeneralized preferences for developing countries.\nAgricultural Trade - Agriculture presents a most\nserious problem of trade policy. Because of political\npressures in the farm sector, governments set up support\nprograms which stimulate uneconomic production, high\nimport protection and artificial export pricing prac-\ntices. International markets are disrupted. While this\nproblem is widespread, the most serious problem is with\nthe European Economic Community. In adopting high\nsupport prices under the Common Agricultural policy,\nit has stimulated surpluses in many areas -- dairy,\nwheat, sugar, poultry -- all of which are being disposed\nof on international markets under heavy subsidy. It\nhas increasingly raised protection on many of our important\nLIMITED OFFICIAL USE"
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