Activities under the escape clause in trade agreements—Continued Periodic reports and review investigations on escape-clause actions... Quantitative restrictions on imports into the United States.. Restrictions under section 22 of the Agricultural Adjustment Act.. Chapter 6. Changes in Tariffs, Exchange Controls, and Quantitative Trade Restrictions by Countries With Which the United States Has Trade Agreements Dominican Republic, El Salvador, Guatemala, Haiti, and Honduras. Developments in the use of currency-retention quotas and similar practices. Miscellaneous matters regarding trade-agreement obligations.. Chapter 1 Introduction and Summary INTRODUCTION This, the sixth report of the Tariff Commission on the operation of the trade agreements program, covers the period from July 1, 1952, through June 30, 1953. During this period the United States concluded only one trade agreement-the supplementary bilateral agreement with Venezuela. The report discusses the concessions that the United States granted and obtained in the Venezuelan agreement. The report also covers other important developments respecting the trade agreements program during 1952-53. These include the passage of the Trade Agreements Extension Act of 1953; certain developments respecting the General Agreement on Tariffs and Trade; actions of the United States relating to its trade agreements program; and changes in tariffs, exchange controls, and quantitative import restrictions by countries with which the United States has trade agreements. UNITED STATES TRADE AGREEMENTS LEGISLATION During the period covered by this report, the United States conducted its trade agreements program under the Trade Agreements Act of 1934, as amended, and the Trade Agreements Extension Act of 1951. Under the extension act of 1951, the President's authority to enter into trade agreements with foreign countries was extended for a period of 2 years. from June 12, 1951. This authority was further extended for a period of 1 year from June 12, 1953, by the Trade Agreements Extension Act of 1953, which was approved August 7, 1953. Trade Agreements Extension Act of 1951 The Trade Agreements Extension Act of 1951 (secs. 3 and 4) incorporates the "peril point" provision substantially in the form in which it 1 The first report was U. S. Tariff Commission, Operation of the Trade Agreements Program, June 1934 to April 1948, Rept. No. 160, 2d ser., 1949. It consisted of five volumes, as follows: Part I, Summary; Part II, History of the Trade Agreements Program; Part III, TradeAgreement Concessions Granted by the United States; Part IV, Trade-Agreement Concessions Obtained by the United States; Part V, Effects of the Trade Agreements Program on United States Trade. Hereafter this report will be cited as Operation of the Trade Agreements Program (first report). The second, third, and succeeding reports of the Tariff Commission on the operation of the trade agreements program will hereafter be cited in a similar short form. 1 appeared in the extension act of 1948. Under the provision in the extension act of 1951 the President is required to submit to the Tariff Commission a list of products that may be considered for possible concessions in trade-agreement negotiations. For each of these products the Tariff Commission is required to determine the maximum decrease, if any, that can be made in the duty without causing or threatening serious injury to the domestic industry producing like or directly competitive products, or the minimum increase in the duty or additional import restrictions that may be necessary to prevent such injury. The escape-clause provision of the act of 1951 (sec. 6) provides that no future trade-agreement concession shall be permitted to continue in effect if the product on which the concession has been granted is, as a result, in whole or in part, of the customs treatment reflecting the concession, being imported in such increased quantities as to cause or threaten serious injury to the domestic industry producing like or directly competitive products. Section 6 of the act also requires the President to bring existing trade agreements into conformity with this policy as soon as practicable. Section 7 of the extension act of 1951 sets forth the procedures for administering the escape clause. Under this provision, the Tariff Commission, upon the direction of the President or the Congress, upon application by any interested party, or upon its own motion, is required to make an escape-clause investigation. If the Commission finds that serious injury or threat thereof exists, it is required to recommend to the President that the concession be modified or withdrawn, that it be suspended in whole or in part, or that import quotas be established, for the time necessary to prevent or remedy such injury. Section 8 of the extension act of 1951 establishes procedures to accelerate investigations and action under the escape-clause provision of that act or under section 22 of the Agricultural Adjustment Act, as amended. The Agricultural Adjustment Act provides authority for tariff adjustment whenever agricultural products are being imported, or are practically certain to be imported, in such quantities as to materially interfere with or tend to render ineffective domestic programs of the United States Department of Agriculture. Under section 8 of the act of 1951, the President is authorized to take immediate action in cases in which, because of the perishability of the agricultural commodity concerned, a condition exists requiring emergency treatment; in any event, the Commission must complete its investigation and report to the President (under the escape clause or sec. 22) and the President must make his decision not more than 25 calendar days after the submission of the case to the Commission. Other sections of the extension act of 1951 direct the President to suspend the application of trade-agreement concessions to imports from the Soviet Union or Communist-dominated or Communist-controlled areas; direct the President to prohibit imports of certain furs and skins. from the Soviet Union or Communist China; and restore the right of producers, under the Tariff Act of 1930, to appeal to the United States Customs Court if they believe that they are being injured by the incorrect classification of any imported article. Under the Trade Agreements Act of 1934, this right had been eliminated with respect to trade-agreement items. Trade Agreements Extension Act of 1953 Shortly after the convening of the 1st session of the 83d Congress, the President requested that the existing trade agreements legislation be extended for a period of 1 year as an interim measure to allow for the "temporary continuation of our present trade program" pending a thorough reexamination of the economic foreign policy of the United States. Pursuant to this request several bills relating to the trade agreements program were introduced in the Congress. Some of these bills contained provisions that differed substantially from the existing legislation. Others provided for the extension of the President's authority to negotiate trade agreements, without significant changes in other provisions of the previous trade agreements legislation. The bill finally approved by the Congress was House bill 5495. A conference report on this bill, embodying the major changes that had been recommended by the Senate, was adopted by the House of Representatives on August 1, 1953, and by the Senate on August 3, 1953. The President signed the bill on August 7, 1953. The Trade Agreements Extension Act of 1953 extends, for a period of 1 year from June 12, 1953, the authority of the President to negotiate trade agreements with foreign countries. The statutory provisions of the 1951 act, as amended by the act of 1953, remain in effect. The new act makes no change in the "peril point" procedures that were established by the extension act of 1951. With respect to trade-agreement escape-clause procedures, the act of 1953 reduces from 1 year to 9 months the period within which the Tariff Commission must make its investigation and report on escape-clause applications. The extension act of 1953 also amends section 22 of the Agricultural Adjustment Act to permit the President to take immediate action, without waiting for a report from the Tariff Commission, whenever the Secretary of Agriculture determines that a condition requiring emergency action exists with respect to any agricultural product. Under the extension act of 1951, the President's authority to take such emergency action was limited to perishable agricultural products. As a result of amendment of section 330 of the Tariff Act of 1930, the extension act of 1953 changes the effect of certain less-than-majority decisions of the Tariff Commission. The new law authorizes the President, in exercising the authority conferred upon him to make changes in import restrictions, to regard the unanimous findings and recommendations of one-half of the number of Commissioners voting as the findings and recommendations of the Commission. If the Commissioners voting are divided into two equal groups, each of which is unanimous in its findings and recommendations, the findings and recommendations of either group may be regarded by the President as the findings and recommendations of the Commission. The act further specifies that if, in any case in which the Tariff Commission is authorized to make an investigation or hold hearings, one-half of the number of Commissioners voting agree that the investigation or hearing should be undertaken, such investigation or hearing shall be carried out in accordance with the statutory authority covering the matter in question. The extension act of 1953 also provides for the appointment of a special bipartisan Commission on Foreign Economic Policy for the purpose of conducting a broad study "on the subjects of international trade and its enlargement consistent with a sound domestic economy, our foreign economic policy, and the trade aspects of our national security and total foreign policy." The Commission on Foreign Economic Policy is specifically directed to recommend appropriate policies, measures, and practices relating to the subject matter of its study. It is directed to report its findings to the President and to the Congress within 60 days after the 2d regular session of the 83d Congress is convened. The Commission on Foreign Economic Policy, which shall be dissolved 90 days after its report is submitted, is to consist of 17 members, appointed as follows: 7, by the President; 5 from the United States Senate, by the Vice President; and 5 from the House of Representatives, by the Speaker of the House. The law provides that no more than 4 of the 7 members appointed by the President and no more than 3 members of each of the groups of 5 members appointed from the Senate and the House of Representatives shall be of the same political party. The act authorizes the President to designate the chairman and vice chairman of the Commission. DEVELOPMENTS RESPECTING THE GENERAL On June 30, 1953, 33 countries were contracting parties to the multilateral agreement known as the General Agreement on Tariffs and Trade (GATT). The General Agreement now embraces the original agreement concluded by 23 countries at Geneva in 1947; the Annecy Protocol of 1949, under which 9 additional countries acceded to the agreement; and the Torquay Protocol of 1951, under which 4 other countries have ac |