Individual v. the U. S. Interest

The historic aim of U.S. tariff policy has been to protect individual industries and groups (e.g., dairy farmers and perfume makers as well as the auto industry). But what is really needed, said the report of a 13-man governmental commission last week, is a dramatic change basing tariff policy on "national interest." This, said the report, requires a drastic cut in tariffs and other trade barriers, no matter how much it may hit protected industries.

The bipartisan commission, headed by Washington Banker Daniel W. Bell and representing industry, labor and agriculture, was appointed last summer by President Truman. Some of its recommendations :

P:Modification of the "Buy American" Act, plus a complete overhaul and simplification of tariff schedules, with an average rate cut of about 33%. Some 8,000 present tariff rates should be boiled down into a few clearly defined categories; tariffs and import taxes on such items as petroleum products, metals, wool and many manufactured goods, including machinery, autos and appliances, should be lowered or eliminated.

P:A far-reaching streamlining of customs procedures to speed the flow of imports. Said the report: "Many goods take longer to pass through customs than it took Columbus to discover America."

In its report, the Bell commission anticipated the criticism that it was neglecting the interests of the U.S. in favor of foreigners. But it agreed that if all its recommendations were accepted, annual imports would rise a mere $1 billion in the next five years, still leaving U.S. exports $2.8 billion more than imports.

Furthermore, such a level of imports might displace only 60,000 U.S. workers --or one in every 1,000--from their jobs. To take care of them, the Bell commission recommended Government aid in the form of extended unemployment insurance benefits and assistance in retraining workers for other jobs. The Government, said the report, could also help any hard-hit company to diversify its production and switch to other products. Concluded the report: "If this country does not soon take measures to facilitate an increase in imports, U.S. exports will decline and American industry and agriculture will be seriously affected."

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