It would be possible, of course, for the United States to
carry out either a protectionist or a modified free-trade policy
on a unilateral basis. In order to achieve the objectives, Con-
gress would merely have to authorize increases or decreases in
tariffs or modify other import regulations. If the objective is
to reduce trade barriers, however, bilateral or multilateral
agreements offer obvious advantages. Under a reciprocal trade
agreement program, tariff concessions on products we export
can be obtained in return for reductions in tariffs or the
elimination of quantitative restrictions on products we import.
CONCLUSION
Recent attempts to raise tariffs on such items as Swiss
watches and the so-called “buy American” amendment to the
latest extension of the Defense Production Act have brought to
the attention of the American people the need to examine
once more our international trade policy. The United States
government has created confusion both at home and abroad
by trying to follow policies which are not consistent. It is
time we made a clear-cut decision on this issue. The real
choice, as indicated, is not between the extremes of complete
free trade or complete self-sufficiency, but rather between what
I have called a protectionist policy and a modified free-trade
policy. If the United States were to adopt the former policy,
certain industries would receive protection but at the expense
of consumers and other industries which now export products
to other countries. Furthermore, under such a policy, it un-
doubtedly would be necessary to continue appropriating large
sums of money for direct foreign economic aid. If, on the other
hand, we were to adopt a modified free-trade policy, the total
volume of imports and exports would increase. This would
mean a strengthening of the economic position of our allies and
more goods for all to share. Temporarily, at least, some domestic
industries would be placed at a disadvantage, but they would
have opportunities to shift the use of their facilities to the
production of goods for which export demands would increase.
In trade policies, as in other affairs of state, it is impossible
to please everyone. Some individuals will gain under a pro-
tectionist policy while others will gain under a modified free-
trade policy. The difficulty lies in the choice. Either we lose
friends abroad and gain friends among a few industries at home
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